HomeMy WebLinkAbout1178w'J
CITY OF KENT, WASHINGTON
ORDINANCE NJ. 1178
AN JRDINANCE providing for the issuance
of $327,000.00 par value of "Water Revenue
Bonds, 1963, Issuc No. 1," for the purpose
of refunding the outstanding "Water Revenue
Bonds, 1959, " of the City; fixing the form,
date, maturities, interest rates, covenants
and terms, of the bonds; and providing for
the exchange thereof for the outstanding
"Water Revenue Bonds, 1959."
WHEREAS, the City owns and operates its water supply
and distribution system; and
WHEREAS, the City has heretofore issued, under date
of November 1, 1948, its "Water Revenue Bonds, 1948," of which
issue there are now outstanding bonds in the total principal
sum of $78,000.00, which bonds are a first and prior charge
and lien upon the gross revenues of the water supply and dis-
tribution system of the City; and
WHEREAS, pursuant to Ordinance Nos. 949-A and 956,
the City has heretofore issued, under date of July 1, 1957, its
"Water Revenue Bonds, 1957," of which issue there are now out-
standing bonds in the total principal sum of $725,000.00, which
bonds are a second charge and lien upon the gross revenues of
the water supply and distribution system of the City, subject
only to the prior charge and lien thereon for the 1948 blinds;
and
WHEREAS, pursuant to Ordinance No. 982, the City has
heretofore issued, under date of June 1, 1958, its "Water Revenue
Bonds, 1958," of which issue there are now outstanding bonds in
the total principal sum of $139,000-00, which bonds area third
charge and lien upon the gross revenues of the water supply and
distribution system of the City, subject only to the prior
charge and lien thereon for the 1948 bonds and the 1957 bonds;
and
WHEREAS, pursuant to Ordinance No. 1032, the City has
heretofore issued, under date of June 1,1959',, its "Water
Revenue Bonds, 1959," of which issue there are now outstanding
bonds (numbered 24 to 350, inclusive) in the total principal
sum of $327,000.00, which bonds are on a parity of lien with
the 1958 bonds; and
WHEREAS, the City Council intends to pass on this
lst day of April, 1963, the date this Ordinance is passed, an
ordinance authorizing the issuance of $1,000,000.00 par value
"Water Revenue Bonds, 1963, Issue No. 2," on a parity of lien
with the bonds to be authorized by this Ordinance,. and the
proceeds of those bonds of Issue No. 2 shall be used to refund
all outstanding 1948 bonds, 1957 bonds, and 1958 bonds as well
as paying the costs of construction of certain additions and
betterments to the existing water supply and distribution system
of the City; and
WHEREAS, the City has obtained agreements from the
holders of all of the 1959 bonds that the bonds authorized by
this Ordinance may be exchanged and substituted for the 1959
bonds; and ~
WHEREAS, the City Council believes that it is neces-
sary and in the best interests of the City to refund the 1959
bonds by the bonds authorizod to be issued pursuant to this
Ordinance and that the rates of interest on the bonds authorized
to be issued pursuant to this Ordinance shall be the same as
those presently established on the bonds being refunded;,NOW,
THEREFORE,
THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON,
DO ORDAIN, as follows:
-2-
Section 1. As used in this Ordinance the following
words shall have the following meanings:
(a) "Bonds" shall mean the "Water Revenue Bonds,
1963, issue No. l," authorized to be issued by this Ordinance.
(b) "Bond Fund" shall mean the "Water Revenue
Bonds Redemption Fund, 1963,"created by this Ordinance.
(c) "1959 Bonds" shall mean the "Water Revenue
Bonds, 1959," of the City to be refunded pursuant to,this
Ordinance.
(d) "1958 Bond Fund" shall mean the "Kent 1958
Water Revenue Bond Redemption Fund."
(e) "Parity Revenue Bonds" shall mean any reve-
nue bonds of the City, other than the Bonds, where the City has
pledged to pay the principal of and interest on such bonds out
of the gross revenue of the Water System on a parity with the
payments required by'this Ordinance to be made out of that
gross revenue for the Bonds.
(f) "Term Bond Year" shall mean any calendar
year or years in which the Bonds or any Parity Revenue Bonds
of any one issue or series mature (regardless of reservation
of prior redemption rights) in an amount which is more than
1.25 times the average annual maturities of the outstanding
bonds of that issue or series for three calendar years immedi-
ately preceding such calendar year or years.
(g) "Water System" shall mean the existing water
supply and distribution system of the City as the same may be
added to, improved and extended at any time for as long as any
of the Bonds and any Parity Revenue Bonds are outstanding, and
which additions, improvements and extensions shall include the
sanitary sewerage system of the City should that ever be com-
bined with the water supply and distribution system in the
Manner authorized by law.
-3-
Section 2. It is found and declared that it is
necessary and in the best interests of the City to refund the
1959 bonds, and that the rates of interest on the Bonds author-
ized by this Ordinance shall be the same as the rates of interest
on the 1959 bonds.
Section 3. For the purpose of refunding the "Water
Revenue Bonds, 1959," of the City, there shall be issued
$327,000.00 par value of the Bonds. The Bonds shall be in
denominations of $1,000.00 each; shall be numbered from 24
to 350, inclusive, corresponding to the same numbers of the
outstanding 1959 bonds to be refunded; shall be dated May 1,
1963; shall bear interest payable semiannually on June 1 and
December 1 of each year, interest to maturity to be evidenced
by coupons to be attached to the Bonds, with full obligation
on the part of the City to pay interest at the same rate or
rates from and after the Bond maturity dates until the Bonds
with interest are paid in full. Interest payable on June 1,
1963, shall be the equivalent of a full six -months' interest
on the Bonds. Both principal of and interest on the Bonds
shall be payable in lawful money of the United States of America
at the office of the City Treasurer of Kent, Washington, solely
out of the Bond Fund.
The Bonds shall mature and bear interest in accordance
with the following schedule, to -wit:
Bond Numbers
Interest
(Inclusive)
Amounts
Rates
Maturities
24
to
34
11,000
4.20
June
1,
1963
35
to
45
11,000
4.20
June
1,
1964
46
to
56
11,000
4.20
June
1,
1965
----
----
--
June
1,
1966
57
to
6o
4,000
4.40
June
1,
1967
61
to
64
4, oo0
4.40
June
1,
1968
65
to
74
10,000
4.40
June
1,
1969
75
to
81
7,000
4.40
June
1,
1970
82
to
88
7,000
4.60
June
1,
1971
89
to
95
7,000
4.6o
June
1,
1972
96
to
103
8,000
4.60
June
1,
1973
1.04
to
110
7,000
4.60
June
1,
1974
-4-
Bond Numbers
Inclusive)
Amounts
Interest
Rates
Maturities
111
to
118
126
8,000
8,000
4.60
4.6o
June
June
1,
10
1975
1976
119
127
to
to
134
8,000
4.60
June
11
1977
135
144
to
to
143
153
9,000
10,000
4.60
4.6o
June
June
1,
1,
1978
1979
154
164
to
to
163
172
10,000
%000
110.'000
4.60
4.60
June
June
1,
1,
1980
1981
173
to
182
10,000
4.60
4.6o
June
June
11
1,
1982
1983
183
194
to
to
193
203
11,000
4.6o
June
11
1984
--_
--
June
1,
1985
June
11
1986
June
1,
1987
204
276
to
to
275
350
72,000
175.,000
4 5/8
4 5/8
June
.Tune
1,
1,
1988
1989
Section 4. The City of Kent reserves the right to
redeem the Bonds solely for refunding purposes, as a whole or
in part, in inverse numerical order on June 1, 1969, or on any
subsequent interest payment date, at the following redemption
prices if redeemed in the following dates, plus accrued interest
to date of redemption in each case:
June 1 or December 1, 1969, at $102.50 per each
$100 par value thereof;
June 1 or December 11 1970, at $102.00 per each
$100 par value thereof;
June 1 or December 1, 1971, at $101.50 per each
$100 par value thereof;
June 1 or December 11 1972, at $101.00 per each
$100 par value thereof;
June 1 or.December 1, 1973, at $100.50 per each
$100 par value thereof;
June 1, 1974, and thereafter, at par.
The City of Kent reserves the right to redeem the Bonds
solely from surplus earnings of the Water System, in inverse
numerical order, on June 1, 1969, or on any subsequent interest
payment date, at par,. plus accrued interest to date of redemption.
Notice of any call for redemption of any of the Bonds
prior to their stated maturity dates shall be published at least
once in the official newspaper of the City not less than thirty
nor more than forty-five days prior to the call date. Notice
of the intended redemption shall also be mailed to.,McLean &
Company, Inc., 772 Commerce Street, Tacoma 2, Washington, or
-5-
its,successor, not less than thirty nor more than forty-five
days prior to the call date. Interest on any Bonds so called
for redemption shall cease on the date fixed for such redemp-
tion upon payment of the redemption price into the Bond Fund.
Section 5. There is created a Bond Fund in the office
of the City Treasurer., There is created within the Bond Fund
a "Principal and Interest Account." So long as any of the
Bonds are outstanding against the Bond Fund, the City Treasurer
of the City of Kent shall set aside and pay into the Principal
and Interest Account of the Bond Fund out of the gross revenues
of the Water Sypp b n, a fixed amount without regard to any fixed
proportion, on or before the twentieth day of each month, as
follows:
(a) An amount equal to at least one-sixth of
the interest to become due and payable on the next interest
payment date on all of the Bonds outstanding, and
(b) An amount equal to at least one -twelfth
of the principal of the Bonds to become due and payable on
the next principal payment date.
Immediately upon the delivery of the Bonds, there
shall be transferred from the 1958 Bond Fund into the Principal
and Interest Account of the Bond Fund an amount equal to five -
sixths of the interest to become due and payable on the Bonds
in June 1, 1963, and eleven -twelfths of the principal to become
due and payable on the Bonds on June 1, 1963.
Section 6. There is created in the Bond Fund a
"Reserve Account." The City shall pay into that "Reserve
Account" immediately upon the exchange of the Bonds for the
outstanding 1959 bonds, by way of transfer from the 1958 Bond
Fund, an amount which will be at least equal to the next year's
debt service on all outstanding Bonds, and will maintain that
Reserve Account so that there will be on deposit within that
account at all times; except fur withdrawals therefrom as
authorized herein, an amount at least equal to the next suc-
ceeding year's debt service on the Bonds.
The City further agrees that when the required amounts
have been paid into the Reserve Account, it will at all times,
except for withdrawals therefrom as authorized herein, maintain
those amounts therein until there is a sufficient amount in
the Principal and Interest Account and Reserve Account to pay
the principal of, premium, if any, and interest on all Bunds
payable out of the Bond Fund outstanding, at which time the
money in the Reserve Account may be used to pay such principal,
premium, if any, and interest.
In the event that there shall be a deficiency in the
Principal and Interest Account to meet maturing installments
of either principal or interest, as the case may be, on Bonds
payable out of the Bond Fund, such deficiency shall be made up
from the Reserve Account by the withdrawal of cash.therefrom
for that purpose. Any deficiency created in the Reserve
Account by reason of any such withdrawal shall then be made
up from the monies from the revenues of the Water System first
available after making necessary provisions for the required
payments into the Principal and Interest Account.
All money in the Reserve Account may be kept on
deposit in the official bank depository of the City of Kent,
or may be invested in direct obligations of the United States
Government having a guaranteed redemption price prior to
maturity or maturing not later than twelve years from day of
purchase and, in no event, maturing later than the last
maturity of the Bonds outstanding at the time of such purchase.
Interest earned on any such investment or on such bank deposit
shall be deposited and become a part of the Reserve Account
until the total required reserve amount shall have been
-7-
.
accumulated therein, after which such interest shall be deposited
in the Principal and Interest Account.
Section 7. The gross revenues from the Water System
are pledged to such payments as are required by this Ordinance
and, after the refunding, payment and retirement of the out-
standing 1948, 1957, and 1958 bonds, the Bonds shall constitute
a charge or lien upon such revenues pri8r and superior to any
other charge whatsoever, excluding charges for maintenance and
operation, except that the charge or lien upon such gross
revenues for the Bonds shall be on a parity with the charge or
lien upon such gross revenues for any Parity Revenue Bonds.
Section 8. The City of Kent covenants and agrees
with the owner and holder of each Bond at any time outstanding
as follows:
(a) It will establish, maintain and collect such
rates and charges for water service (and for sanitary sewage
disposal service should the sanitary sewage system of the City
ever be combined with the Water System) so long as any of the
Bonds and any Parity Revenue Bonds are outstanding, as will
make available for the payment of the principal of and interest
on all of such bonds as the same shall become due, an amount
equal to at least 1.35 times the average annual amount required
for the payment of all principal of and interest on such bonds,
exclusive of the principal requirement in any Term Bond Year,
after necessary costs of maintenance and operation of the Water
System shall have been paid, but before depreciation.
(b) It will at all times maintain and keep the
Water System and all additions thereto and betterments and
replacements and extensions thereof in good repair, working
order and condition and also will at all times operate the Water
System and the business in connection therewith in an efficient
manner and at a reasonable cost.
In
(c) It will not sell, lease, mortgage, or in
any manner encumber or dispose of all of the property of the
Water System unless provision is made for payment into the Bond
Fund of a sum sufficient to pay the principal of and interest
on all Bonds and Parity Revenue Bonds at that time outstanding,
and it will not sell, lease, mortgage, or in any manner encumber
or dispose of any part of the property of the Water System that
is used, useful and material to the operation of the Water
System unless provision is made for replacement thereof or for
payment into the Bond Fund of the total amount of revenue
received, which shall not be less than an amount which shall
V
bear the same ratio to the amount of outstanding .bonds as
the revenue available for debt service for those outstanding
bonds for the twelve months preceding such sale, lease, mortgage,
encumbrance, or disposal from the portion of the Water System
sold, leased, mortgaged, encumbered, or disposed of bears to
the revenue available for debt service for such bonds from
the entire Water System for the same period. Any money so
paid into the Bond Fund shall be used to retire such outstand-
ing bonds at the earliest possible date.
(d) It will while any of the Bonds remain out-
standing keep proper and separate accounts and records in which
complete and separate entries shall be made of all transactions
relating to its Water System. It will furnish the original
purchaser or purchasers of the Bonds or any subsequent holder
or holders thereof at the written request of such holder or
holders, complete operating and income statements of the Water
System in reasonable detail covering any calendar year. It
will grant any holder or holders of at least twenty-five per-
cent of the outstanding Bonds, the right at all reasonable
times to inspect the entire Water System and all records,
accounts and data of the City relating thereto. Upon the
M
request of any holder of any of the Bonds, it will furnish
such holder a copy of the most recently completed audit of the
City accounts by the State Auditor of Washington.
(e) It will not furnish any water (or any
sanitary sewage disposal service should the sanitary sewerage
system of the City ever be combined with the Water System) to
any customer whatsoever free of charge, and it will promptly
take legal action to enforce collection of all delinquent
accounts.
(f) It will carry the types of insurance on
its Water System properties in the amounts normally carried
by private water companies engaged in the operation of water
systems,and the cost of such insurance shall be considered
a part of operating and maintainin the Water System. If,
as, and when, the United States of America or some agency
thereof shall provide for war risk insurance, the City further
agrees to take out and maintain such insurance on all or such
portions of the Water System on which such war risk insurance
may be written in an amount or amounts to cover adequately
the value thereof.
(g) It will pay all costs of maintenance and
operation of the Water System and the debt service requirements
for the outstanding Bonds and Parity Revenue Bonds, and other-
wise meet the obligations of the City, as herein set forth.
Section 9. The City of Kent covenants and agrees
with the holder and owner of each Bond at that time outstand-
ing that it will not issue any Parity Revenue Bonds unless
it shall first satisfy the following conditions:
(a) At the time of the issuance of such Parity
Revenue Bonds there shall be no deficiency in either the
Principal and Interest Account or Reserve Account of the Bond
Fund.
-10
(b) The City shall have covenanted in each
ordinance authorizing the issuance of Parity Revenue Bonds
that it will establish, maintain and collect rates and charges
for water (and for sanitary sewage disposal service in the
event that the sanitary sewerage system of the City ever be-
comes a part of the Water System) for as long as any of the
Bonds and any Parity Revenue Bonds are outstanding am" will
make available for payment of the principal of and interest
on all of such bonds, as the same shall become due, an amount
equal to at least 1.35 ties the average annual amount required
for the payment of all such principal and interest, exclusive of the
principal requirements in any Term Bond Year, after necessary costs
of maintenance and operation of the Water System shall have been
paid, but before depreciation.
(c) The City shall have covenanted in each
ordinance authorizing the issuance of Parity Revenue Bonds
that it will pay into the Reserve Account of the Bond Fund
within five years of the date of issuance of such Parity
Revenue Bonds an amount which, with the money in the Reserve
Account, will be at least equal to the next year's debt service
on all outstanding bonds, the principal of and interest on
which are payable out of the Bond Fund, and will further
provide in each such ordinance for additional payments to
be made into the Reserve Account if necessary so that there shall
be on deposit therein at all times after each of those five-
year periods an amount at least equal to the next succeeding
year's debt service on all bonds payable out of the Bond Fund.
To satisfy the Reserve Account requirement, the whole or any
part of the money in any other reserve fund or account of the
City created to secure the payment of the principal of or
interest on any revenue bonds or revenue coupon warrants being'
refunded by such Parity Revenue Bonds may be transferred to
-11-
the Reserve Account at the time such outstanding bonds or
warrants are redeemed.
(d) At the time of the issuance of such Parity
Revenue Bonds, except the "Water Revenue Bonds, 1963, Issue No. 2,"
the City shall have on file a certificate from an independent
licensed professional engineer showing that in his pro-
fessional opinion the net revenue of the Water System
which will be available in each succeeding year for the payment
of the principal of and interest on the Bonds, any Parity
Revenue Bonds then outstanding, and the Parity Revenue Bonds
to be issued as all of the same shall become due (except for
those Bonds or any then outstanding Parity Revenue Bonds that
are to be refunded by the Parity Revenue Bonds to be issued)
will equal at least 1.35 times the average annual amount re-
quired for the payment of the principal of and interest on all
such bonds, exclusive of the principal requirement in any Term
Bond year.
For the purpose of the engineer's certificate, the
words "net revenue of the Water System which will be avilable
. . . for the payment of the principal of and interest on all
of such bonds" shall mean the gross operating revenues and
receipts of the Water System after deducting thereform all
necessary expenses of maintenance and operation thereof, but
before depreciation and annual debt service on any outstanding
revenue bonds or revenue coupon warrants that may have a lien
on the gross revenue of the Water System junior and inferior
to the lien thereon for the payment of the principal of and
interest on the Bonds. The net revenue may be based on any
increase in revenues to be derived by an increase in water
rates and charges (and any charges for sanitary sewage dis-
posal service should the sanitary sewerage system of the City
ever be combined with the Water System) authorized by the City
Council to be effective by the time delivery of such Parity
Revenue Bonds is made.
-12-
Nothing contained in this section 9 shall prevent the
City from issuing revenue bonds or warrants, the payment of the
principal of and interest on which is a charge upon the gross
revenue of the Water System junior and inferior to the payments
required to be made out of that gross revenue into the Bond Fund.
Section 10. The Bonds shall be in substantially the
following form:
No.
UNITED STATES OF AMERICA
STATE OF WASHINGTON
CITY OF KENT
WATER REVENUE BOND, 1963
ISSUE NO. 1
(4.20) (4.40) (4.60) (4 5/8)%
KNOW ALL MEN BY THESE PRESENTS: That
the City of Kent, a municipal corporation
of the State of Washington, for value re-
ceived promises to pay to bearer on the
1ST DAY OF JUNE, 19—j,
ONE THOUSAND DOLLARS
together with interest thereon at the rate
of four and (twenty hundreths) (forty
hundreths)(sixty hundreths) (five -eights)
percent per annum, payable semiannually on
the first days of June and December of
each year upon the presentation and sur-
render of the attached interest coupons
as they severally mature up to the bond
maturity date and with full obligation on
the part of the City to pay interest at
the same rate from and after the bond
maturity date until this bond with inter-
est is paid in full. Both principal and
interest are payable in lawful money of
the United States of America at the office
of the City Treasurer of Kent, Washington,
solely out of the special fund of the City
known as the "Water Revenue Bond Redemp-
tion Fund, 1963," created by Ordinance
No. 1178 of the City, and hereinafter
called—t-he "Bond Fund."
This bond is one of a total issue of
$327,000.00 par value of bonds, numbered
-13-
from 24 to 350, inclusive, all of like date,
tenor and effect, except as to maturities
and -interest rates, all payable from the
Bond Fund and all issued by the City of
Kent under and pursuant to the laws of the
State of Washington and Ordinance No. 1178
of the City for the purpose of refunding
an equal amount of outstanding "Water Re-
venue Bonds, 1959, of the City. Reference
is made to that ordinance as more fully
describing the covenants with and rights of holders
of the bonds of this issue.
The City of Kent reserves the right
to redeem the bonds of this issue solely
for refunding purposes, as a whole or in
part, in inverse numerical order, on June
1, 1969, or on any subsequent interest
payment date, at the following redemption
prices if redeemed on the following dates,
plus accrued interest to date of redemption
in each case, to -wit:
June 1 or December 1, 1969, at $102.50 per
each $100 par value thereof;
June l or December 1, 1970, at $102.00 per
each $100 par value thereof;
June 1 or December 1, 1971, at $101.50 per
each $100 par value thereof;
June 1 or December 1, 1972, at $101.00 per
each $100 par value thereof;
June 1 or December 1, 1973, at $100.50 per
each $100 par value thereof
June 1, 1974, and thereafter, at par.
The City of Kent reserves the right to
redeem the bonds of this issue solely from
surplus earnings of the water supply and
distribution system of the City in inverse
numerical order on June 1, 1969, or on any
subsequent interest payment date, at par,
plus accrued interest to date of redemption.
Notice of any call for redemption of
any of the bonds of this issue prior to
their stated maturity date shall be published
at least once in the official newspaper of
the City not less than thirty nor more than
forty-five days prior to the call date.
Notice of such intended redemption shall
also be mailed to McLean & Company, Inc.,
772 Commerce Street, Tacoma 21 Washington,
or its successors, not less than thirty nor
more than forty-five days prior to the call
date. Interest on any bonds so called for
redemption shall cease on the date fixed
for such redemption upon payment of the re-
demption price into the Bond Fund.
The bonds of this issue constitute a
charge or lien upon the gross revenues from
the water supply and distribution system of
the City prior and superior to any other
-14-
charges whatsoever, excluding charges for
maintenance and operation of the system,
except that the charge or lien upon such
gross revenues for the bonds of this issue
shall be on a parity with the charge or lien
upon such gross revenues for any additional
and/or refunding revenue bonds hereafter
issued on a parity of lien with the bonds
in accordance with the provisions of section
g of Ordinance No. 1178.
The City of Kent has covenanted to
establish, maintain and collect such rates
and charges for water service (and for sani-
tary sewage disposal service should the
sanitary sewerage system of the City ever
be combined with the water supply and dis-
tribution system) for so long as any bonds
of this issue and any revenue bonds which
may be hereafter issued on a parity with
the bonds of this issue are outstanding,
as will make availabe for the payment of
the principal cf and interest on such out-
standing bonds as the same shall become due,
an amount equal to at least 1.35 times the
average annual amount required (exclusive
of the principal requirement in any
"Term Bond Year" as such words are defined
in Ordinance No. 1178) for the payment of
all such principal and interest, and after
necessary costs of maintenance and operation
of such system have been paid, but before
depreciation.
The City has further covenanted and
agreed to maintain in good condition and to
operate the water distribution and supply
system and all additions thereto and better-
ments, replacements and extensions thereof
and to establish, maintain, and collect such
rates for water as will produce such gross
revenues from the water system sufficient
to permit payment into the Bond Fund of the
amounts required for payment of principal
of and interest on all bonds payable out of
the Bond Fund as the same shall become due
and the amounts.required to be paid into
the Reserve Account in the Bond Fund, and
in addition thereto to pay all costs of
maintenance and operation and the debt ser-
vice requirements of all outstanding water
revenue bonds, and otherwise to meet the
obligations of the City as herein set forth.
It is hereby certified and declared
that the bonds of this issue are issued
pursuant to and in strict compliance with
the Constitution and laws of the State of
Washington and the ordinances of the City
of Kent, and all acts, conditions and things
required to be done precedent to and in the
issuance of this bond have happened, have
-15-
been done and have been performed as required
by law.
IN WITNESS WHEREOF, the City of Kent,
Washington, has caused this bond to be signed
by its Mayor and attested by its Clerk and
its corporate seal to be hereto affixed and
the interest coupons attached to be signed
with the facsimile signatures of these offic-
ials this first day of May, 1963.
CITY OF KENT, WASHINGTON
By
MAYOR .
ATTEST:
CLERK
The interest coupons attached to the Bonds shall be
in substantially the following form:
Coupon No.
On the FIRST DAY OF (JUNE) (DECEMBER)
19 , the City of Kent, Washington, upon
presentation and surrender of this coupon,
will pay to the bearer at the office of
the City Treasurer the sum of
DOLLARS
n lawful money of the United
States of America from the special fund of
the City known as the "Water Revenue Bond
Redemption Fund, 1963," that sum being six
months' interest then due on its "Water
Revenue Bond, 1963, Issue No. 1," dated
May 1, 1963, and numbered
CITY OF KENT, WASHINGTON
By
MAYOR
ATTEST:
B'
y l
C ERK
The Bonds shall be printed on lithographed forms,
shall be signed by the Mayor and attested by the Clerk, and
-16-
shall have the seal of the City of Kent affixed thereto. The
coupons shall bear the facsimile signatures of the Mayor and
the Clerk.
Section 11. The holders of the outstanding 1959 bonds
have heretofore agreed individually to exchange their respective
bonds with all unmatured interest coupons attached thereto,
including the June 1, 1963, coupon, for a like number of the
Bonds, prior to June 1, 1963. The Bonds shall immediately upon
their execution be delivered to the holders of the'1959 bonds
in exchange for the correspondingly numbered 1959 bonds so
surrendered, which 1959 bonds and interest coupons attached thereto
shall thereupon be cancelled.
PASSED by the City Council of the City of Kent, Wash-
ington and APPROVED by its Mayor, at a regularmeeting held
on the lst day of April, 1963.
ATTEST:
ZVI
CITY C RK
APPROVED AS TO FORM:
CITY ATTORNET
-17-
MAYOR