HomeMy WebLinkAbout12-11-1939 Regular MeetingSTATE OF ALAHAl+IA
COUNTY OF HAI,DWIN
The Town Council of the Town of Fairhope me.t in regular
session. at. the Town Hall, Monday,. December 11,, 1939 at
7:30 P.M. with the following members present: Councilman
H.P. Kamper presiding, Councilmen: J.O. Sti7npson, Sam Dyson,
IT.0.. Berglin and C.A. Gaston.
The minutes of the previous regular meeting were approved
a.s read.
The following bill.s.were allowed:
Bidgood Stationery Co, Gentl
$ 30-52
Bidgood Stat. Co, W & S
1.80
Gaston Motor Co, W' & S
.80
Gaston'llotor Co, Elea.
2.22
GastonsMotor Co, Gentl.
7.25
Burford-Toothacker'Trac. Co, Gen.
.21
McKean- Hardware Cog Gentl
4.15
Fairhope Courier, Gentl
17.14
Klumpp „lotor Co,. Police, Gen'l
34:88
Nat. Cyl, Gas Co, Elec.
1.24
Fthope Coal & Supply, Gen.
21..44
Fthope Coal & Sup. Elea.
22.34
Fairhope Post Office, Elec.
50:00
Fthope Post. Office, W & S
50.00
Fthope Post Office, Gentl
20.12
Victory Elea. Co,. Elea.
8.50
J.1. Pitman & Co, Elea.
.48
A. Youngquist, Gentl
6.15
Rockwellts Store, Gen..
8.00
Union Express Co, Elea.
3.94
W.S. barley-,, Gentl
16.90
Hammondts St6re, Gentl
5.00
Turner Supply Co. Elec.
12.00
Forster & Sons, Elec.
491.98
Forster & Sons, Gen'1
97.80
Sangamo Elec. Co.
26.65
Nottlemannts Cafe
2.75
Payroll for month of November 1939
Howard Ruge, Mayor
$130.00
Geo. Morgan, Clerk
50.00
Evalyn Berglin, Acting Clerk 60.00
J.H. Titus, Marshal
90.00
Geo. C. Dyson, W & S
95.00-
E .D . Swift, Gen.
55.00
Kenneth Cain, Elea.,
65.00
J..P Ba-iley, Elec.
105.00
Ray. Stapiketint' Elec.
105.00
Frank McKenzie,, Elec.
85.00
RTarvin Nichols, Elec.
80.00
Beebe, Hall & Beebe, Gen.
30.00
COUNCILMEN:
H.P. Kamper,Gen. 4.00
11.0. Berglin, Gen. 4:00
Sam Dyson, Gen. 4.00
J.O. Stimpson , Gen. 4.00
C.A. Gaston, Gen. 4.00
Town:
Fire Hydrant Rental 63.00
Miscl. 8.50
Sewer 2.75
Wharf Lights.
18.7.9
Country Club, Elec.
1.16
Payroll:
Roads
486.00.
Water & Sewer
11.05
Elec.
144.95
Donations:
Organic School W & S 9.30
Elec. 54.99
Public School ITl & S 9.90
Elec. 13.42,
Fairhope Library W & S 2.00
Elec. 11..24
Misc1., Water 3.00
•
follows:
Councilman C. A. Gaston offered Ordinance No. 149 as
ORDINANCE NO. 149
AN ORDINANCE TO AUTHORIZE THE ISSUANCE AND SALE
OF V4ENTY-TWO THOUSAND DOLLARS (t22,000.00) OF
NOTES OF THE T9WX OF FAIRHOPE FOR THE PURPOSE OF
PAYING THE COST OF PURCHASE AND INSTALLATION OF
ONE 6 CYLINDER 450 HP FAIRBANKS-T4ORSE 32E-14
DIESEL ENGINE NO. 814895 AND EQUIPMENT FOR GENER-
ATING CTRICITY, ALTERNATOR NO. 361258 TYPE
TGZO, GRATOR NO. X61111 TYPE DG, AND TO AUTH-
ORIZE THE EXECUTION AND DELI7MRY OF it MORTGAGE
ON THE SAID EQUIPi:MTT ALTD BUILDINGS HOUSING THE
SAT-, TO THE BANK OF FAIRH OPE , FA IRHOTE , ALABAMA ,
AS TRUSTRE, TO SECURE PAYM NT OF THE SAID NOTES
:Z?D TO PLEDGE THE NET EARNINGS OF THE bAID EQUIP-
IIT_NT FOR THE PAYMENT OF THE SAID NOTES, PRINCIPAL
AND INTEREST, Tla= AND aS THE SAT.S SHALL BECOME
DUE, AND IF SUCH NET REVM�TTTE SHALL NOT BE SUFFI-
CIENT TO PAY THE SA"1E1 THEN TO PLEDGE A SUFFICIENT
AMOUNT OF THE MEET EARNINGS OF THE FAIRHOPE ELECTRIC
LIGHT & POWER SYSTEM PREVIOUSLY 0VTNED TO THE PAYI'.1ENT
OF THE SAID NOTES, PRINCIPAL, AND INTEREST, VYH N' AND
AS THE SATE SIT -ALL BEC OIJE DUE.
BE IT ORDAINED BY THE TgUN COUNCIL OF THE TO711i OF FAIR -
HOPE AS F OLIA v'IS :
Section 1. That the generating equipment of the munici-
pal light and power system of the Town of Fairhope being inadequate
for the demands thereon, said Town of Fairhope, acting through and
by. its duly constituted officers, did heretofore purchase equipment
for the same from the Fairbanks-IUlorse Company, and did enter into a
contract with them to pay therefor the sum. of 24,850.00, and did
also incur expenses in the installation and housing of the said
equipment in the sum of �1784.50, the said additional equipment
consisting of the following described mchinery:
One 6 Cylinder 450 HP Fairbanks-Tlorse Model 32E-14
Diesel Engine No. 814895 and Equipment for Generat-
ing Electricity, Alternator No. 361258 Type TGZO,
Generator No. X61111 Type DG.
The said equipment having been installed and housed in such manner
as to constitute a complete separate unit from the other generating
equipment previously owned by the said Town of Fairhope, so that the
same can and will be operated as a separate unit in the production of
electric energy and so that the earnings from the said unit can and
will be kept separate from the earnings from the equipment previously
owned by the Town of Fairhope, the Town of Fairhope is authorized and
empowered to borrow money for the purpose of paying for the said
equipment and the said installation and housing and to secure the
same by a mortgage on the said property and to pledge the net re-
ceipts from the operation of the said property and to pledge separ-
ately the net receipts from the operation of that part of the said
system previously owned by said town. The town, after the issuance
of the notes hereinafter authorized, being well within its consti-
tutional debt limit.
Section 2. That for the purpose of defraying the cost of
the purchase, installation anu housing of the aforesaid generating
equipment purchased from Fairbanks -Morse Company as aforesaid, there
be and is hereby authorized to be issued and sold forty (40) notes
of the Town of Fairhope, each in the sum of $550.00, payable to
bearer, and to bear interest at the rate of 5 o per annum, payable
on the lst day of July, 1940, and semi-annually thereafter on the
lst day of January and July of each year, and to be numbered and
Maturing in amounts as follows:
Dotes 1,2,3,4,
each
in
the
sum
of
6550.00,
due
on
January
1,1941;
It
5,6,7,81
it
It
it
"
If
40?550.00,
"
It
"
1,1942;
It
9,10,11,121
"
it
"
'r
IT
11550.00)
"
"
"
101943;
et
13,14,15,16,
"
TM
"
IS
"
11550.00)
"
1,1944;
"
17,18,19,20,
"
"
'r
It
It
69,50.00,
"
"
"
1,1945;
rr
21, 22, 23, 24,
n
tt
:r
tt
tt
c'050. 00,
it
s?
it
1,1946 ;
tt
25,26,27,28,
`•
n
n
"
"
550.00,
"
t'
It
1,1947;
tr
29, 30, 31,32,
tt
It
tt
:.
rt
.Y550.00,
n
tr
1, 1948;
it
33, 34,35)36)
it
If
It
n
"
$550.001
n
tr
it
1,1949;
n
37 , 38, 39, 40,
tt
It
It
r*
$550.00)
rt
rt
it
1,1950.
That such notes shall be executed by the ;;ayor in the name of the
Town of Fairhope and shall be attested by the Clerk of the Town of
Fairhope and shall bear the seal of the Town of Fairhope. There
shall be attached to each note, coupons bearing the fac simile sig-
nature of the ;;ayor for the interest on the said notes. The said
note and the coupon attached thereto shall be substantially in
words and figures as follows:
$550.00 Fairhope, Ala., January 1, 1940.
On or before lst day of January, 19 , after date, with-
out grace, the Town of Fairhope promises to pay to the order of bear-
er the sum of Five Hundred Fifty Dollars (550.00) for value receiv-
ed, in any coin or currency zwhich on the date of payment hereof is
legal tender for the payment of public and private debts, with in-
terest from date at the rate of 5% per annum, interest payable on
the lst day of July, 1940, and semi-annually thereafter on the lst
day of January and July of each year thereafter, interest evidenced
by coupon hereto attached, payable at the Bank of Fairhope, Fairhope,
Alabama.
The parties to this instrument, whether maker, endorser,
surety or guarantor, each for himself, hereby severally waive as to
this debt, or any renewal thereof, all right to exemption under the
Constitution and haws of Alabama, as to personal property, and they
each severally agree to pay all costs of collecting, or securing, or
attempting to collect or secure this note, including a reasonable
attorney's fee, whether the same be collected or secured by suit or
otherwise. And the maker, endorser, surety or guarantor, of this
note, severally waives demand, presentment, protest, notice of pro-
test, suit and all other requirements necessary to hold them, and
they agree that time of payment may be extended without notice to
them of such extension. The bank at which this note is payable is
hereby authorized to apply on or after maturity, to the payment of
this debt any funds in said bank belonging to the maker, surety,
endorser, guarantor, or any one of them, deposited therein for the
purpose of paying this note.
This note is one of a series of forty (40) notes, each in
the sum of Five Hundred Fifty Dollars (�550.00), this day issued by
the Town of Fairhope under Ordinance No. 149 adopted on the llth
day of December, 1939, for the purpose of defraying the cost of pur-
chasing, inst&llation and housing electric light and power generat-
ing equipment and is secured equally without preference one over
the other by a first mortgage on the said property executed and de-
livered by the Town of Fairhope to the Bank of Fairhope, Fairhope,
Alabama, as Trustee, for the benefit of the holders of the said
notes, and is payable only, but equally without preference one over
the other, out of the net earnings from the said generating equip-
ment, and also only, but equally without preference one over the
other, out of the net earnings from the entire Fairhope electric
light and power system owned prior to the date of this instrument;
2
but subject to and without impairment of the rights of the holders
of those certain. notes issued under Ordinance No. 144 passed by the
Town Council of the Town of Fairhope on the 24th day of Tvlay, 1937,
secured by mortgage of the Town of Fairhope to the First National
Bank of Mobile, as Trustee, dated June lst, 1937, recorded in the
office of the Judge of Probate of Baldwin County, Alabama, in T.:ort-
gage Book 72, at pages 368-72.
In Witness Vnereof, , the Town of Fairhope has caused these
presents to be executed in its name by the T':ayor of the Town of Fair -
hope, and the same to be attested by the Clerk of the said Town, and
the corporate seal of the Town of Fairhope to be hereto affixed, oA
this the lst day of January, 1940.
Attest:
is Clerk .
No.
TOJ'TN OF FAIRHOPE , ALA
By
Its Mayor.
On the lst day of , 19 , the Town of
Fairhope will pay to bearer the sum of Thirteen and 75/100 Dollars
(�, 13.75) in any coin or currency which is then legal tender for the
payment of public and private debts, at the Bank of Fairhope, Fair -
hope, Alabama, out of the special fund set up under Ordinance No.
149 adopted by the Town of Fairhope on the llth day of December,
1939, being interest then due on note r:o. issued under author-
ity of the said ordinance and secured by a first mortgage to the Bank
of Fairhope, Fairhope, Alabama; as Trustee, under the aforesaid or-
dinance.
Mayor.
Section 3. That to secure the aforesaid notes there is
hereby authorized to be executed and delivered to the Bank of Fair -
hope, Fairhope, Alabama, as Trustee, a first mortgage on the prop-
erty hereinafter described, which said mortgage shall be dated the
lst day of January, 1940, and executed by the Mayor in the name of
the Tovm of Fairhope, attested by the Clerk of the Town of Fairhope,
and shall be substantially in words and figures as follows:
nO:'r ALL TAT BY TEMSE PRESENTS, that the Toirn of Fairhope
has, under authority of an Ordinance duly adopted by the Town Coun-
cil of the Town of Fairhope on the llth day of December, 1939, and
numbered 149, issued forty (40) notes, each in the sum of Five Hund-
red Fifty Dollars (6550.00), numbered 1_ to 40, both inclusive, dated
the lst day of January, 1940, payable to bearer at the Bank of Fair -
hope, Fairhope, Alabama, with interest at 5% per annum, interest pay-
able on the lst day of July, 1940, and ; emi-annually thereafter on
the lst day of January and July of each year, with coupons attached
thereto, evidencing the interest on the said notes, which said notes
are in the following form:
P550.00 Fairhope, Ala. , January 1, 1940.
On or before lst day of January, 19 , after date, •:iithout
grace, the Town of Fairhope promises to pay to the order of bearer
3
r�
the sum of Five Hundred Fifty Dollars (?550.00) for value received,
in any coin or currency which on the date of payment hereof is le-
�al tender for the payment of public and private debts, with inter-
est from date at the rate of 5 o per annum, interest payable on the
1st day of July, 1940, and semi-annually thereafter on the lst day
of January and July of each year thereafter, interest evidenced by
coupon hereto attached, payable at the Bank of Fairhope, Fairhope,
Alabama.
The parties to this instrument, whether maker, endorser,
surety or guarantor, each for himself, hereby severally waive as to
this debt, or any renewal thereof, all right to exemption under the
Constitution and Laws of Alabama, as to personal property, and they
each severally agree to pay all costs of collecting, or securing, or
attempting to collect or secure this note, including a reasonable
attorney's fee, whether the same be collected or secured by suit or
otherwise. And the maker, endorser, surety or guarantor, of this
note, severally waives demand, presentment, protest, notice of pro-
test, suit and all other requirements necessary to hold them, and
they agree that time of payment may be extended without notice to
them of such extension. The bank at which this note is payable is
hereby authorized to apply on or after maturity, to the payment of
this debt any funds in said bank belonging to the maker, surety,
endorser, guarantor, or any one of them, deposited therein for the
purpose of paying this note.
This note is one of a series of forty (40) notes, each in
the sum of Five Hundred Fifty Dollars (V550.00), this day issued by
the Town of Fairhope under Ordinance No. 149 adopted on the llth
day of December, 1939, for the purpose of defraying the cost of pur-
chasing, installation and housing electric light and power generat-
ing equipment and is secured equally without preference one over the
other by a first mortgage on the said property, executed and deliver-
ed by the Town of Fairhope to the Bank of Fairhope, Fairhope, Ala-
bama, as Trustee, for the benefit of the holders of the said notes,
and is payable only, but equally without preference one over the
other, out of the net earnings from the said generating equipment,
and also only, but equally without preference one over the other,
out of the net earnings from the entire Fairhope electric light
and power system owned prior to the date of this instru"rent; but
subject to and without impairment of the rights of the holders of
those certain notes issued under Ordinance No. 144 passed by the
Town Council of the Town of Fairhope on the 24th day of May, 1937,
secured by mortgage of the Town of Fairhope to the First National
Bank of mobile, as Trustee, dated June lst, 1937, recorded in the
office of the Judge of Probate of Baldwin County, Alabama, in Mort-
oage Book 72, at pages 368-72.
In ?"litness Whereof, the Town of Fairhope has caused these
presents to be executed in its name by the 1.1ayor of the Town of Fair -
hope, and the same to be attested by the Clerk of the said Town, and
the corporate seal of the Town of Fairhope to be hereto affixed, on
this the lst day of January, 1940.
TO1WN OF FAIRHOTE, ALABLITV1,
Attest: By
Its rayor.
Its Cler .
No.
On the lst day of
, 19 , the Town of
4
Fairhope will pay to bearer the sum of Thirteen and 75/100 Dollars
(,13.75) in any coin or currency which is then legal tender for the
payment of public and private debts, at the Bank of Fairhope, Fair -
hope, Alabama, out of the special fund set up under Ordinance No.
149 adopted by the Town of Fairhope on the llth day of December,
1939, being interest then due on note No. issued under author-
ity of the said ordinance and secured by r first mortgage to the
Bank of Fairhope, Fairhope, Alabama, as Trustee, under the afore-
said ordinance.
Mayor.
And which said notes are numbered and mature in amounts as follows;
Totes 1,2,3,4, each in the sum of -"�550.00, due on January 1, 1941;
it
5,6,7,8,
"
It
It
» It
5;550.00,
IT
rr
rr
1,
1942;
it
9,10,11,12,
n
"
It
" "
''550.00,
"
"
't
1,
1943;
It
13,14,15316,
"
°'
"
" "
$550.00)
"
"
"
1,
1944;
"
17,18,19,20,
"
"
"
" "
�')550.00,
"
"
"
1,
1945;
"
"
21,22923)241
rr
n
rr
rr
n rr
6550.00,
X550.00,
r►
r►
rr
1,
1946;
25,26,27,28,
r►
:r
rr n
rr
rr
rr
1,
1947;
"
29,30,31,32,
"
"
"
" "
i�550.00,
"
"
1,
1948;
:r
33,34035,36,
"
"
"
" "
�550.00,
"
"
"
1,
1949;
"
37,38139,40,
tt
n
rr
rr rr
5 5 0 . 0 0 ,
rr
rr
rr
1,
1950;
and that the Town of Fairhope desires to secure the same;
N9.7 THERREFORE, in consideration of the premises and of
the sure of Five Dollars (5.00) to it in hand paid by the Bank of
Fairhope, Fairhope, Alabama, es Trustee, the Town of Fairhope does
hereby GR!J,T, BARGAIN, SELL and CONVEY unto the BANK OF FAIRHOFE,
Fairhope, Alabama, as Trustee, the following, described property, to -
wit;
One 6 Cylinder 450 HP Fairbanks-I:'orse rlodel 32E-14
Diesel Engine No. 814895 and Equipment for Generat-
ing Electricity, Alternator No. 361258 Type TGZO,
Generator No. X61111 Type DG.
From an Iron Stake which is ter. feet East of the North-
west corner of 'Lot five, Division four, according to
the Map of the Fairhope Single Tax Corporation Lands,
recorded in P:iscellaneous Book 1, pages 320-321, in
Baldwin County Records, dated august 4, 1911, surveyed
by Prescott A. Parker, Surveyor, said lot being located
in Section 37, Barron De Ferriet Grant;
From said Iron_ Stake run East twenty nine and seven -
tenths feet and Yorth twenty-three and five -tenths feet
for a point of beginning, thence run North twenty-seven
and five -tenths feet; thence East eleven feet; thence
,South twenty-seven end five -tenths feet; thence West
eleven feet to point of beginning, all in Baldwin
County, Alabama.
TO HIVE AI'D TO HOLD unto the said OF FAIRNOPE, Fair -
hope, Alabama, as Trustee, its successors and assigns. And the
sail Toum of Fairhope does for itself, its successors and assigns,
covenant with the said Bank of Fairhope, Fairhope, Alabama, as Trus-
tee, its successors and assigns, that it is lawfully seized in fee
that they are free from all er_cu.ibrances
simple of said premises;
and that it has a good right to sell and convey the same as afore-
said; th�_'t it is in the quiet and peaceable possession of the same;
that it will and its successors end assigns, sh,.11 arrant and de-
5
fend the same to the said Bark of Fairhope, Fairhope, Alabama, as
'Trustee, its successors and assigns, forever, against the lawful
claims of all persons.
The intent and purpose of this instrument is to secure
the payment of the notes above described equally without preference
one over the other when and as the same shall become due, principal
and interest, and the said Town of Fairhope does hereby covenant and
agree with the said Bank of Fairhope, Fairhope, Alabama, Trustee, and
with the holders of the aforesaid rotes, that it will keep the afore-
said property insured against loss or damage by fire for the full in-
surable value thereof, with loss, if any, pa.vabl_e to the said Bank
of Fairhope, Fairhope, Alabama, as Trustee, for the benefit of the
holders of the aforesaid notes, and that it will also keep the said
property insured against storm in a sum not less than fifty per cent.
(500) of the value thereof, with loss, if -ny, payable to the said
Bank of Fairhope, Fairhope, Alabama, as Trustee, for the benefit
of the holders of the said notes.
The Town of Fairhope does further contract and agree with
the said Bank of Fairhope, Fairhope, Alabama, as Trustee, and with
the holders of the said notes, that it will keep the earnings from
the property herein described and conveyed separate from the earn-
ings of the electric light and power system owned prior to the ac-
c,uisition of the aforesaid property, and after deducting; the cost of
operating, maintaining and repairing the same, will apply such net
earnings to the payment of the aforesaid notes, principal and inter-
est, equally without preference one over the other, and for this pur-
pose will deposit the same in the Bank of Fairhope, Fairhope, Alabama,
as Trustee, for the purpose of paying the said notes, principal and
interest, as aforesaid, when and as the same shall become due, and
this instrument does hereby authorize the said Bank of Fairhope,
Fairhope, Alabama, to pay the said notes, principal and interest,
when and as the same shall become due out of and only out of any
funds deposited with it for the purpose of paying the aforesaid
notes, principal and interest. The town will file with the Trus-
tee each month a copy of its detailed monthly statement of plant
operating data.
In the event the net earnings from the aforesaid property
shall be insufficient to pay the said notes, principal and interest,
when and as the same shall become due, then the said Toyan. of Fair -
hope does further contract and agree that it will apply so much of
the net earrings from the light and power system owned previous to
the purchase of the aforesaid property as shall be necessary to make
up any such deficit from the net earnings of the property hereinabove
described; but subject to and without impairment of the rights of the
holders of those certain notes issued under Ordinance No. 144 passed
by the Town Council of the Town of--Fairhope on the 24th day of T„ay,
1937, secured by mortgage of the Town of Fairhope to the First Nat-
ional Bank of Mobile, as Trustee, dated June 1st, 1937, recorded in
the office of the Judge of Probate of Baldwin 'County, Alabama, in
Mortgage Book 72, at pages 368-72.
It is expressly understood and agreed, however, that no
part of the general fund of the Town of Fairhope, or of any special
fund raised by taxes or otherwise for specific purposes, shall ever
be chargeable with the payment of the notes above described, or with
any expenses or disbursements incurred or made by said Trustee, or
any holder or holders of any of said notes, pursuant or incident to
any of the provisions hereof, it being the intent and purpose, agree-
ment and understanding between the Town of Fairhope, the Bank of Fair -
hope, Fairhope, Alabama, as Trustee, and the holders of the said notes
that the same shall be paid only out of the net earnings from the prop-
0
erty hereinabove described if the net earnings shall be sufficient
to pay the same, and if the net earnings shall not be sufficient to
pay the same, then any deficit shall be paid only out of the net
earnings of the light and power system owned by the Town of Fairhope
prior to the acquisition of the aforesaid property; but subject to
and without impairment of the rights of the holders of those certain
notes issued under Ordinance N?o. 144 passed by the Town Council of
the Town of Fairhope on the 24th day of May, 1937, secured by mort-
gage of the Town of Fairhope to the First rational Bank of Mobile,
as Trustee, dated June 1st, 1937, recorded in the office of the Judge
of Probate of Baldwin County, Alabama, in Tortgage Book 72, at pages
368-72.
The Town of Fairhope does further contract and agree with
the Trustee and with the holders of the notes issued hereunder, (a)
that it will deposit with the Trustee on or before the lst day of
each calendar month one -twelfth of the principal of said notes fall-
ing due within twelve (12) months, plus accrued interest to the said
date of each deposit, and (b) in addition thereto for the first
twelve (12y calendar months after the date of this instrument, will
deposit on the lst day of each calendar month the sum of One Hundred
Dollars in addition to the said sum above provided to be deposited,
and that after twelve (12) months from date of this instrument it will
maintain at all times on deposit in said Bank Twelve Hundred Dollars
in addition to the deposits re iuired by item (a) , and that in the
event it shall fail to make the said deposit required in items (a)
and (b), then the Trustee, at its option, may declare the indebted-
ness owing hereunder due and payable and foreclose this instrument
in the manner provided herein, and in addition thereto may apply
any part of the said minimum deposit required to be made within
twelve (12) months to the cost of foreclosure and to the principal
and interest on said notes, or to the cost of performing any duty
or enforcing any right imposed or granted hereunder.
For the further protection of the holders of the notes
issued hereunder, the Town of Fairhope further contracts and agrees
`•rith the Trustee and with the holders of the notes issued hereunder,
that it gill deposit with the Trustee under that certain mortgage
executed by the Town of Fairhope to the First National Bank of Mobile,
as Trustee, dated June lst, 1937, recorded in the office of the Judge
of Probate of Baldwin County, Alabama, in T..'ortgage Book 72, at pages
368-372, on the lst day of each calendar month one -twelfth of the
principal falling due within tcielve (12) months, together with all
accrued interest to the date of such deposit, and that in the event
it shall fail to make such deposit, then the Trustee under this in-
strument may declare the indebtedness owing hereunder due and payable
and foreclose the same in the manner provided in this mortgage or by
appropriate action in court.
?,ROT,FIDED A1:vVAYS, and these presents are upon the express
condition that if the said Town of Fairhope shall well and truly pay
the aforesaid notes, principal and interest, when and as the same
shall become due, then these presents shall cease, determine and be
null cnd void, otherwise to remain in full force and effect.
But in the event the said To�;n of Fairhope shall be and be-
come in default in the payment of the said notes, or any ore of them,
principal or.interest, as the same shall become or be declared due
hereunder, and remain in default for the period of ninety (90) days,
then the oV,anPr or holder of the said notes so in default may Pt his
option, by written request addressed to the Bank of. Fairhope, Fair -
hope, Alabama, as Trustee, and to the Town of Fairhope, require the
Bank of Fairhope, Fairhope, Alabama, es Trustee, to sell (or the
Trustee on its own motion may sell) the rronerty heroi.r_above describ-
ed at public outcry, for cash, to the highest bidder, during the le-
7
gal hours of sale, in front of the court house door of Baldwin Coun-
ty, Alabama, after giving notice of the time, place and terms of
sale, by publication, once a week for eight (8) consecutive weeks in
any newspaper published in Baldwin County, Alabama, and the proceeds
to apply, first, to the costs of sale, including a reasonable attor-
ney's fee, then to the notes hereby secured equally and pro -ratably
without preference one over the other, whether the same be due or
not, and any balance to pay over to the Town of Fairhope. Bank of
Fairhope, Fairhope, Alabama, as Trustee, its agent or attorney, is
authorized to conduct any sale held hereunder and to make conveyance
to the purchaser in the name of the Town of Fairhope, as its attorney
in fact, and any and all things lawfully done in the premises the
Tom of Fairhope hereby ratifies and confirms. The said Bank of
Fairhope, Fairhope, Alabama, individually or as Trustee, or all or
any one or more of the holders of the said notes may bid and pur-
chase at any sale held hereunder as though a stranger to this instru-
ment. It shall not be necessary to have the aforesaid property at
the place of sale.
If at any time before the actual sale of the property un-
der the powers above given the Town of Fairhope shall pay the note
or notes in default, principal and interest, or shall perform the
agreement on which default has been declared, then such foreclosure
proceedings shall thereby be stayed, but a foreclosure may be had
for any subsequent default or defaults.
If the town shall not insure the property as herein pro-
vided, the said Bank of Fairhope, as Trustee, at the recuest of the
holder of any one of the said notes, shall, without notice to the
Town of Fairhope, proceed to sell the property hereinabove described
under the powers herein given, but in the event insurance shall be
taken out and policy delivered to the Bank of Fairhope, as Trustee,
before the date of sale, then the sale shall be stayed.
Except as herein expressly provided to the contrary, no
remedy or right herein conferred upon or reserved to the Trustee or
note holders is intended to be exclusive of any other right or remedy,
but each and every right or remedy shall be cumulative and shall be
in addition to every other remedy or right given hereunder and now
or hereafter existing in law or in equity. No delay or omission
to exercise any remedy or right accruing on default small impair
any such right or remedy, or shall be construed to be a waiver of
any such default or acquiescence therein, nor shall it affect any
subsequent default of the same of whatever nature, but every such
remedy or right may be exercised from time to time and as often as
deemed expedient by the holder of the notes secured hereby. In case
of any suit or proceeding in any way affecting or relating to the
property herein conveyed, wherein_ the Trustee or note holders shall
be a party or parties, reasonable costs and charges, including at-
torney's fees, in and about said suit or proceeding shall be allowed
to the Trustee and note holders and charged as cost in such proceed-
ings, and shall be a further charge and lien upon the aforesaid prop-
erty and secured hereby.
The Trustee shall be under no obligation_ to recognize any
person, firm or corporation as a holder or owner of any of the notes
secured hereby unless and until the note claimed to be owned is pro-
duced to the Trustee. Said Trustee shall not be answerable for any
default or misconduct of any agent or attorney employed by it in and
about the execution of this trust, if such agent or attorney shall
have been selected with reasonable care, or for anything whatever
in connection_ with this trust, except wilful misconduct or gross
negligence, itself or its employee or attorneys. It shall be under
no obligation to take any action toward the execution or enforcement
of any trust hereby created, which in its opinion shall be likely to
S
involve it in any expense or liability, unless one or more of the
holders of the notes hereby secured shall, as often as reouested by
the Trustee, pay said Trustee such expenses or the amount of such
liability, or furnish it satisfactory indemnity against such expense
or liability, nor to defend any suit or proceeding brought against
it by reason of its being Trustee hereunder unless indemnity satis-
factory to it is furnished by the Town of Fairhope or the holders
of the notes secured hereby.
The Trustee shall be entitled to be reimbursed for any
and all proper out?ay of every sort and nature by it incurred in
the discharge of this trust, or in defense of any suit or proceed-
ing brought against it as Trustee hereunder, and to receive a reas-
onable compensation for any duty that it may perform at any time in
the discharge of this trust, or in the defense of such proceedings,
and all such fees, compensation and disbursements, including reason-
able attorneys fees, shall constitute a first lien on the property
above described and secured hereby. In every case in which notice
or request is required by this instrument to be given, such notice
or request, if addressed to the party to whom notice is required to
be given, shall be sufficient.
The Bank of Fairhope, Fairhope, Alabama, as Trustee, will
receive such funds as the Town of Fairhope is required hereunder to
deposit with it for the payment of the aforesaid notes, principal
and interest, and will apply the same to the payment of the said
notes, principal and interest, when and as the same shall become
due, but it shall be in no manner held liable beyond the funds so
deposited with it, it being expressly understood and agreed that it
shall not be responsible for the failure on the part of the Town of
Fairhope to deposit any funds with it.
IN 7JI TIMSS TETEREOF , the
ser e+s to be exe uted by Howard
its Clerk,
to atZached, o this the 1st day
Attest:
Its Cler Y.
Town of Fairhope has caused these
Ruge, its i..ayor, and attested by
and its cor-oorate seal to be here-
of. January, 1940.
T 01,711 OF FAIRHOFE, ALABAHA,
B C1 �
Its 1ayor.
And shall be acknowledged in the form prescribed by law.
Section 4. That the Tovm of Fairhone will and its offic-
ers and employes are hereby directed and required to keep the net
earnings from the property herein described separate from, the net
earnings of the municipal light and power system owned by the town
previous to the acquisition of the property described in this ordin-
ance, and to apply the same to the payment of the notes issuea un-
der authority of this ordinance, principal and interest, rahen and as
the same shall become due, and for this purpose shall deposit the
same f rolm time to time with the Bank of Fairhope, Fairhope, Alabama,
as Trustee.
Section 5. That in the event the net earnings from the
property described in this ordinance shal_1 be insufficient to pay
the notes issued hereunder when and as the sage shall become due,
principal and interest, then the said Town of Fairhope hereby
pledges that it will apply to the payment of said notes out of the
net earnings of the municipal light and power system owned by the
Toz_ prior to the acquisition of the property described in this or-
dinance, such sum as shall be necessary to make up any such deficit
AX
in the payment of said notes, principal and interest; but subject
to and without imrairment of the rights of the holders of those cer-
tain notes issued under Ordinance No. 144 passed by the Town Council
of the Town of Fairhope on the 24th day of Yay, 1937, secured by
mortgage of the Town of Fairhope to the First �Tational Bank of T;o-
bile, as Trustee, dated June 1st, 1937, recorded in the office of
the Jude of Probate of Baldwin County, Alabama, in T;:ortgage Book
72, at pages 368-72.
Section_ 6. The 1.4vor and the Tovn Clerk are authorized,
empowered and directed to execute the notes and mortgage securing
the same herein provided for, and to sell the aforesaid notes at
not less than par, and to apply the proceeds thereof to the payment
of the purchase price of the aforesaid property and to the cost of
installation and housing of the same, and to the cost of drafting,
printing, issuing and selling said notes, and if there shall rerx.in
any surplus over snd above the amount necessary to nay the purchase
price, installation and housing, such surplus shall be deposited in
the Bank of Fairhope, Fairhope, Alabama, as Trustee, to be used in
the payment of the said notes, principal and interest, when and as
the same shall become due.
Section 7. The Ma-yor and Torn. Clerk are hereby authorized,
directed and required on the lst day of each calendar month commenc-
ing with January lst, 1940, to make all deposits of money required to
be made under the mortgage executed and delivered under authority and
direction of this ordinance.
sSectior. 8. The sections and provisions of this ordinance
are severable, and if uny section or provision of this ordinance or
of the instruments issued hereunder shall be held invalid, it shall
not invalidate the remaining sections and provisions if sufficient
thereof shall remain to effect the purpose of this ordinance.
Section 9. The Town of Fairhope covenants and agrees
with the holders of the notes issued hereunder that it will operate
the said generating equipment described in the mortgage authorized
to be executed hereby in an efficient and economic manner, and that
it will charge such rates for the energy thereby generated that the
net earnings therefrom will be sufficient to pay the said notes when
and as they shall become due. In the event it shall not so oper-
ate the same and charge such rates, the holder of any one of s8Lid
notes in default may apply to a court of competent jurisdiction for
the appointment of a receiver, who shall take over the same and oper-
ate such generating equipment for the benefit of the holders of said
notes until such time as the same shall be paid in full. The pro-
visions of this section shall not be construed to give any such re-
ceiver possession, authority or jurisdiction over any,prope rty or
equipment not covered by said mortgage.
Section 10. This ordinance shall be known and may be
cited as "GENERATING E. UIPMENT PURC.IEMSE T:"_ORTG1;GE ORDIY,,, 'CE NO. 149,
APPROVED DECEMBER 11TH, 1939".
Approved this December .11th, 1939.
Attest: T,,;ayor.
Clerk.
M
The f oreaoing ordinance having been read at length,
Councilman C. A. Gaston moved its adoption. Councilman T�arvin
Lerglin seconded the motio Said motion having been put on roll
call Councilmen
voted for the sate; voting against trie same:
P one .
VIhereupon H. P. Xamper, presiding, declared the ordinance
duly adopted and affixed his signature thereto in approval of the
same in the presence of Council.
It was duly moved and seconded that the meeting adjourn. i'.o ti on
carried.
Attest: r..J
Acting clerk
v
Approved:
t4ayor Protem
s
11