HomeMy WebLinkAbout08-13-1946 Regular Meeting (2)In
-EXCERPTS FROi- I.IrITUTES OF
RE, I,IEETING OF UiL TO;'ENT
COUNCIL OF T iu TO 1-N OF FAIR -
HOPE, ALAB4:11, I-ELD ON THE
13TH DAY OF AU UST, 1946
The Town Council of the Town of Fairhope, Alabama,
met in regular session at the town hall in said town on Tuesday,
August 13, 1946, at 7:30 o'clock, P.M. The meeting was called
to order by the mayor, who presided, and upon roll call the
following were found to be present : I::ayor Howard Ruge, and
the following members of the town council: Messrs. C. :.1. Gaston,
J, H. Bennett, H. P. Kamper, J. 0. Stimpson and 'J. 0. heeble;
and the following members of the town council were foundCto be
absent: R--6�
R. C. Yohn, the Tow^rn Clerk, was also present at the meeting
and acted as clerk thereof. The mayor announced that a quorum
was Dresent and that the meeting was open for the transaction
of business. The minutes of the last meeting were read and
approved.
Councilman �iw introduced the following
resolution which was read to the meeting:
0
s0 �
r
- 4 "
A R 7��OLUTION UTHORIZLu G THE
_I_SElUA.NC E OF G1_w1 aY``T =,=1 R 7V NUE,
,'d,TTICTPkTION .BGNDS OF TH 7 TO':'N
OF FAIlu�O:-1 ]j TO B � D 4.T ED
1, 1946) FOR Tii� 1) URpOS� OF DE-
'R.LYING THE COST OF T I]i CON;-�TRUC-
LION O-Y A Gr'_` iIti =r �?�UTICN !SYS-
n - TOG n r� - r
_�i�iI _-'�_H�rt ,:Irr_.lz .�i� _,;SC_'v :J�:1iff
'+ R 1 NS_?:- SSIOld +.: 1AND OTHJR =LP-
UR.� Jl�=''NG J:i
'vVlTti, 2u�D TO _._._ '� -A'.O ISIGNS FOR
R
THJ L l�Yi!iANT 01' OF
AND INT'.�F�ST ON SUC-IL DOT'' D S
B-:�' IT RL]SOLVED b-T th To,.n Council of th-c Tom
of Fo..irhop� as follows:
Section 1. Definitions. The following :',cords End
1.)hrases shall have the follo,Ang rp.aanings horein:
1',Toy:ni1 means the m-wnicip:.1 corporation of Fairhope
in the r.-
S`tU.t of _r"�12.a�..., as �r�ssntly 4nc'.zorac.ztr con-
stituted, top,- or ;pith any cor-�Por,:.tion roNult-
ing from any lner er or cozisolir'.E.tion --_..ith another
rjunicipal corporc.tion.
tl('ouncllil mazns ty-; gov.,,ai.-ag boC.y of th-D to-..n as
.Lpo:a tilne to tir_ae ConstitUu-'e6.
"Bondii �'.nC' rbonC.sll .ir-)�.n tho -<:-:DOnC.s .:.t c'ny time
issuscanc outst:.n�sing pursuant to thi .,rovisions o{• this
resolution.
p'Coupon" c.nC. ''coLl"'ionsM ?raon thos? cou,')ons issued
in -i)U.rsuc�nc�' 1� r'ao s' cwYl': vi''v_^Vi;1�; 'i._'1� ^nli-£'nnu1_.1 ln-_:�tall-
wents ofinte �r 'St on thc.t�1` fond or bonds.
►'P?5i staree' bo Jvl -,n--. "i gJ st:'.r-C, bonc'.st' :?- c:n
thOa bona,. --ur want hereto.
I'Calic.bl: loonesil P ='.ns t10S o:_ t'1 bonds number-
ed ed _;Porn 19 to 355, inclusive.
IiInitiLl bo_Z a'-1 those o.1 the Done! s number-
ei from I to 345, iLlclusive.
11.Z_.dcitional bonds'? la,<.:..ns rhos: o�' the bones
nbersc!. fro;'u 346 to 355, _r10lusive.
I'Thj system,c th.-- fi-stribution systems
presently bn-inZ co-Ist"ruct', by th) to,,.-n in'thm- to',,n anf
.L je S
in the towns or communit. ...no-vin L1.1s Silv-ir,11-ill., B�.ttll�S,
C=3awoPoint _. -1ldunty in
Alabe-ma., together lAth 11 try nsraission t^&.ins ,.--.n' ap-purte-
nc-nces in connect -ion therov..ith., :.(!:_ :,.11 a7Irtension:-,, and ad.-
C-itions her o•OLJLter mad-, to
"Ttee" ns The -rc!-mnts nl B,.nk of
m._t
Y'lo-bile a nationc.1 b�mk having itsprinci-peil of bus—
iness Jn the City of IaolDile J_a th-., St-,.t:,� of
'and
�.ny banlrasultii1g, f rc,rany or consoli,,�.,-,ticn ther3:.'_,
L. -' -
o-!� another ste ' t'.s or n�-,tjOnLl bfanit, -n,,- C'.ny successor
trustee to it L!p-iDointeC. In `C.Iie -manzie-1- heroin provided.
!'Gross rev-:.nua -.ccountll mec.ns the Gas Sy�,tuem
Gross =,�venu-_. e.ccotmt cra�-ttacL in !'_,:-)ction 10 hereof,
"Bond nnk". interest-uadll means t'LGas System
C� emInterest Rc.-dm-ption F"und created in Section 10
(1) hereof.
110-,,),arEttion anc. :_iaintenance Lund'' means thGas
uYste,m Op3ri.tion ani _ 1,71e.intenanco Fimd crDa,ted in Section
10 (2) hereof.
W, --or:-,,ciation -Fun,,`;i' _,-Pe�,,ns th.7_� Gas Syst m . pr D -, - e
ciation. Fund created in Section, .10 (3) h-,reo-
"Contingent 17,undli means C-,,:,.s Syst,:,I Conting-3nt
Fund created in Section 10 (4) hre'of..
INSui--plus _funCL7z the Gas Syst-.1m Surplus and
crqc-,ted in Section 10 (5) 11-�r-D-of.
Sri, 771
inancial journal" 1- jou.-nLl c.-wotec-f -pri-
marily to of a -.-inanc-,ie.1 lllattAr 2,nC. IM--vinn', genarc 1
circulation -La the locL-..1i,L`-,y Specified.
VNews-,)aPerH .,riezns a ne,-.p,,rj ,-is2er. -,-ubli,,�Dhe(� not less
' X
often than six nays Curing eLcli cL�lend:-r Em(I liaz!ving
ener..l circul,�tion J_-_, the locality s-,,c�cified.
%D
Section 2. Fj-nc,-_'Lngs of f L,.ct. The council has
L
asc,)rto.ined ' founC la--I�r,:by C'eclF.i�,z th,-,,t 'Clie fol-
lo,-.-ving stLIC:-m,,�.�nt-', true:
'n
-4-
(a) The tovm is en&abed in the construction
of the systemm, vdaich will connect at or near Roberts-
dale, Alabama, ,ith the main trans;.,ission line being
constructed by the Toy.:n of Foley. The council has
caused to be mane an estimate of the cost of the ma-
terials; labor and other exr enses necessary in the
construction and ecuip".!ent of the system together
with the interest Nhich trill accrue on the bonds
during the construction of the syste;:-il. According to
said estimate the total thereof v.,ill be 055,000.
In order to raise the funds to ,ay therefor it will
be necessary that the . toy n sell and issue the bonds
in aritici-:"ation of the revenues that ,rvill be derived
from the o_7)era.tion of the s.;stem-
(b) The reri.od of usefulness of the system
has been estimated and is hereby ascertained
to ,be not less than forty (40) years frog the
completion thereof. It is further hereby estimated
that it will require a'),proximately tv.,elve months to
co__Mlete the construction and ecui Dent of the sys-
tem.
Section 3. Authorization of bonds. Pursuant to
the nrovi sions of Sections 308 to 3460, inclusive, of Title
37 of the Code of Alabama of 194,0, as amended, there are
hereby authorized to be issued y,;355,000 _principal amount
of Gas System ReTrenue Anticipation Bonds of the tottin for
the curoose of oroviding_ funds .for the construction and
ecuipment of the system and the :payment of the interest
y,rhich v111 accrue on the: bonds Burin,: such construction
anC during so much of six Months thereafter as may be
necessary to ;gay the interest accruing during said period.
Section A.. Description
of
bonds. The bonds
shall
consist of three hundred
fifty-five 355) couy on bonds
numbered
from 1 to
355, inclusive,
in
the denomination of
`.11,000
each,
shall
be plated Auk°ust
1,
19,46, and shall mature
as follows.
Aggrecate
Bond.
I,iumbers
Principal Amount
(both. inclusive)
;e:aturity
Date
Maturing
1
to
5
August 1;
1949
5.000
6
to
11
t+
1'950
6, 000
12
to
18
r�
1951
7,000
19
to
26
'
1952
8,000
27
to
35
"
1953'
9,000
36
to
45
'+
1954.
10,000
46
to
55
''
1955
10,000
56
to
65
1956
10,000
66
to
75
"
1957
10,000
76
to
85
►
1958
10,000
86
to
97
'+
1959
121000
98
to
109
+'
1960
12,000
110
to
121
'+
1961
12,000
122
to
135
++
1962
14.,000
rL
-5-
A.ggre0ate
Bond Numnbers Princi,-Jal :amount
(both inclusive) Maturity Date Maturing
136
to
150
August
1,
1963
15,000
151
to
165
August
1,
1964
15,000
166
to
180
August
1,
1965
15,000
181
to
195
August
1,
1.966
15, 000
196
to
210
August
1,
1967
15, 000
211
to
225
August
1,
1.965
15,000
226
to
240
1.ugust
1,
1969
15,000
241
to
255
August
1,
1170
15,000
256
to
270
August
1,
1971
15,000
271
to
285
'ugust
11
1972
15,000
286
to
300
August
1,
1973
15,000
301
to
315
_`_ugust
1,
1974
15,000
316
to
330
Lugust
1,
1975
15,000
331
to
345
August
1,
1976
15,000
346
to
355
.ugust
1,
1.977
10,000
The bones shall b3r:r interest from th )ir d::.te until their
respectivS maturities at such rats or rates as may hereL:f-
t er be .fixed by resolution of the tovm adopted by t1is coun-
cil at the time or ti.j;._3s of the sale of the bonC.s.
All such interest shall be payable semi-annually on xebruary
1 �,.nC. ugust 1 and shall be svic_enceu b:7 sepE.rats int,�.rest
coupons attL.ched to the bones. moth the bonds end_ the cou-
pons shall 'Dear interest afft�.,r their rosp:�ctiv'3 riiaturities
at th:, r; to of 6 % -.) er annum an('. shall bL) T)ay�:.bl:� in lawful
money of the United ``tc: t �S of i_. i1 . icc, a i• ti1e iJrinCiy)�?1 0l l ice
of the trustwe.
Section'5. 'execution or bonds. Th bonds shall
be signeC': in bohalf o.' t<i a to?"1n by th- mayor of the tO do
and tae tre :..surer of the tor.i, �.nc. --he corporate seal of
the town shall be affixed to each thereof. The coupons
shall bear the facsimile sig'nCltur e s of the said , yor
the said treasurer, -.,.hick :c :�csimile signe-tures shall be
valid in zll respects Cs if the said. o 'icers had r ignec.
the coupons in person. Said of.: is ers �,.r D i-vreby c irected
so to execute the bonc'.s -.n('. co �.f'the s l:.1 of th-. to=..n
thereto.
Soction 6. Trustee's cartificL.t-�. A duly exe-
cutec certificat by th? trustee, in th. form .ier?inafter
recited, shall be anC_Or S? _ on Sc'.ch bon ' an.(". shall ':J3 essen-
tial to its v..lic'ity. Sucii ti=ica: sh .11 conclusive
Of' the due issue of such bona her. euilc er .
Section 7. R gistrc_tion provisions. All or any
pwrt of the bonds may be registered as to principal only
at the election of the holder, ther-poi, but if' not so reg-
istered t aaJ shell be tr• nsf erable bj� c eliver.y. The trus-
tee shall be the r=:gistrC..r nc' tx.:.nsf er agent :;:°or the bonus.
It shell keep at its of'=ice jropor r�Dgi try gook:: �n :-hich
it sl2=w11 r? ;ist 3r, «s to principal only, f uch o?: tL1e bonC's
as shall be present =c. for th :.t _.)ur;?os e, noti i ; tit re'g stry
r
-6-
on the bonds. Such rsgistratior. shall ecnclusim�y designate
the registered holder as the sole person_ to whom or on whose
order pcymont of the principal cf than bond so registered uay
be mado, but shall nct affect the nf: goti.ability of the- cou-
pons which shall at all tim s pLss by deliv ary. All bonds
shall pass by delivery unless so 're is-!varad. After regis-
tration of a bond no transfar thr�reof shall be valid unless
it is presented to the trustee with written po:,�er to trans-
fer the sa.ua, prep rly stamped if' re:juir-ad by law., in form
and: i,rit'n guaranty of signature, s atis.fc story t > L he trustee,
and with such znaw registr don n ,tied thereon by the trustae.
Any of the bonds se, register; �)d may be discharged fron regis-
tration by tie-Lng in like mannar trt:risfarrecl to bearer and
such transfer noted thereon and on the re ;istry books by the
trustee, whereupon transferability by delivery shall be re-
stored. rnr ;)f the bonds may from tii:,-.'. to time be register-
ed or discharged from registration in the sc.me manger. The
t m4im and the trustee may da<e n and treat the holder of the
coupons as the absolute .—i--miar thereof for al.1 purposes;
they may deem and treat the holdar of :any of the bonds not
so registered as the absolut a thereof for all pur-
pose: other than to receivo pay.a nt of cutstandin; coupons;
they may deem and treat the person in whos: name a regis-
tered bond is regist=gyred as the absolute citnzr thereof for
all purposes other than to raceive payment of outstanding
coupons applictable thereto; they shall. not be, affected by
notice to t1.e ccastrary; and all payments by e.i.thvr c f th ,m
tc the holders cf such coupons alid b.nds me_!; sc+ agisterad,
end to file person in whose name a registered b_-.nd is re is -
and shall to the extant thereof fully d schea ge and sat-
isfy all liability fc.r the,. s Ire.
Section 8. pr,)visi,_-ns. Th-o c Llle-ble
bonds may be called for radam ;L n pri(;r to Maturity, «s a
Whole or in part, at the option of tha to-cr;, on 'Zny inter-
est paymant date! on or after j:ugust .:1, 1.951; provided, that
if less than all the callable bonds ..t the tine outstanding
are called for redemption then the same shall be callaci in
the inverse order of tha numbers of those then outstanding.
Any such r den ption shall be <<t the par value of the, call-
able bonds so called for redemption, plus accrued interest
thereon to the raderaption date and ^ inremium equal to
twelve (12) months' interest thereon computed c.t t rate
which th callable bonds so called would bear on th : ra-
derption date if such option of rod-mption tivere not axe_cised
by the town. kny such redemption r*ade prior to August 1,
1956, may be effectad solely with moneys at the tim.-: in thc�
surplus fund and any of the callabl bonds so called for
redemption prior to August 1, 1956, shall not be rsfunded.
Any such rademptvion made can or after August 1, 1956, shall
not be so linLited. ply such call for redemption shall be
f.acted in t.�a A.
folloY�ing:anrar:
(1) TM to u by rasolution of the council
shall call for redemption on a stat d dc:.te _
able bonds bearing stated numbers.
-7-
(2) The tov7n shell cause to ba published
one time in either a newspaper or financial
j our -a l published in the City of Bi ,-rainglra m,
Alc:bama, r� notice stating the nuirbars of the
callabla bonds so called for redemption, stat-
ing that the bonds bearing such numbers will
bacom�� due and payable on the dates specified,
and that all interest thereon grill cac.se :after
such data. 'n the event thara is _ao newspaper
or .financial. journal published in said City of
Birmingham on the date on which such notice is
directed by the council to be riven, then such
notice shall be so Dubli.shed in either a news-
papar cr financial journal published in the
City of New York, New York. Any such notice
shall be oublish,ad Inot less than thirty clays
prior to the redemption date.
(3) In the want uliy of tha callable bonds
so cal_13d fcr rademptio:n shall be nalso a rsgis-
tsrad bond, tha tc -ai shall forwc-re, by United
States re gistared L2ail to the registered owner
thar—::ef, at the address of such registered owner
as such address -ppoa.rs on th;ti reei.stry bc•oks of
the trustee p{:rtai.aing to the registrE.tion of
the bonds, a notice stating tht nurabars of'. the
callable bonds which h,--.ve beon so celled for re-
denption and stating that the c,:'llable bonds
, b �:ri_ng such numbers will matt}me due at the re-
demption price on tha date sp<.cified. Such no-
tice shall be so __Dais ad not lass then thirty
(3U) -.ays Prior to the redara;ctioi. c�< i;a.
(4) Net latar t _.11 the rad:amption data, the
town shall notify the trLi.ste of th�� tc ilzil s com-
pliance with the ragi.airemants of subsections W ,
(2) a11d (3) of tail section and shall further de-
posit with the trust, � -: hL, total redemption price
of tha cc:llublc hol ds so called.
All? th;: callc.bla bonds so celled for redemption shell become
due andpa.yzble at the principal office of tlic trustee it the
rademti�tion price �_nd oil the retie►i;pt,ion date sp-ocif� act in such
notice, anything herein or in the bonds to the cc:ntrary not-
withstanding. The trustee shall not be required to pay any
couPori "�,aturing on tha radarantic,n date i°rhich is ap-plicable to
azy call0bla bond so called for r dLmpticn unless the call-
able bond to which such coupon: is applicable i s also presen-
ted for payment; pr.ovidDd, that in the eveni the trustee
should pay any such coupon without p yment of the applicable
callable; bond it shell nut be liable to th3- holder of such
ai plicablc band or to Che tomki or to any one whomsoever; and
provides: furt'r_ar, that the truster: shall pay sued coupon if
the holder thereof shall present evidence satisfactory to
the trustaa that such holder is the ovrner of the coupon so
f3
0
0
aai •
0
.3
4-')�
a)M
��
.rA M
0P, 10
a +�
(0 43
a'
U U
U
0
a) U
Cll Q, •
c to
ai r-4
F, x
'CdM?,
w r
CH
0 ,o
cn m zs
m�
m a) .H
(1) + �
0 a)
a� a ai
E4 •rJ
10
0
43
m
U
0.i
+e
10
presented ane, is �Zot the otivrn?r of 1-.ha ce.-Ilable bona to which
such coupon is applicable. Only th callable bond, shall
be subject to the redemption -.provisions o this section.
Suction 9. Source of payment. The principal of
._.nd. inter :st o_i the bonds Enc' 1611,: cou;Dons shall be ,sayable
solely fror; the revenues c crived from the o_oerLAio:_ of Gene
sy-stem. The ener.�.l faith sane'. cr =.' it o_r the to• ,n ore not
pledged to the payment of the, bones z�.ncl the cou7.ons Land_ the
-bonds end th? cou?�ons shE.11 not be ^ner&.l obli.g.,-.tions of
the to-vm. Neither this rosolution nor <.ny of th bonds or
the cou;.)ons shall b :� deoTiie J to i-mpus- e u )on the to`:-_-1. any ob—
lig,.tion to -.Dey th:;-y•rincipe.l of or inter:.'zt on the bonC,s
and the coupons e,1c :�-pt 7.:. ith the moneys d eriveC from the op-
eration of the systeri as file s<'.rie may at any time b con-
structed., c.nd shall not constitutD an indebtedness of the
tov,=n iwithin. the t leaning of ;-.ny stc.to constitutional or stat-
utory limitLtion. None of the agreem—:,nts, representations
or warranties m ;de or implied in this resolution, or in the
issuance of the bones and the coupons, shall ever irreose any
IDersonal, pecuniary or general J.i .'Jility or charge upon the
to-mn, ,,Aaeth-er before or after any breach by the to-wn of any
such agreement, representation or %-iarr�.nty, except -i:'7ith the
moneys herein provided, nor shall the trustee or tii hold-
er or holders of any of th-- bonc_t_ ever hc.ve the, ribht to
compel any exercise of the taxing pose-er of th toy:.n. to -3ay
either the bonds or the coupons. nothing; contain-d. in his
section, hoviev=r, shall relieve .1 to-.:n or its officers
from the gar orrn .nee of th�� sou<e: 1 '.gre.�ments' ::.nJ' re; r-n3en-
tations on the le. rt of Ghee toz a�. co-lt :.inred. in th .s resolution
so long as such 'i?rformr_-,nce CLoe ; 1ot�rti�C�nc.l, 0�—
cuni�:.ry or liability oT i) ,on the to-:,n.
o Section 10. S �ecic:l k unc s. '�'hers� is hereby
� cr— tee? sp�ci-:.1 ccount � esi„n�..tec' the 9TGE,s Systam Gross
lLevenue ccountfi h tor.n sh•.11 oiJosit 'th:ere.i:z, diaily as
received by it, -,.11 revenues derived from the opz ration of th-:
system. On or prior to the lc,.st dc.y of each successive month
beginning ";ith the month in ti hich the first moneys sh(.11 be (�e-
positvd in•the gross revenue account,, the depository therefor
shall transfer therefrom the entire honeys then on deposit
therein into the speci�_l funds and for the 1}urpos :.s -.nd in
the order specified in the following subsections numbered
from (1) to (5), inclusive., &.11 at the times and to the res-
pective extents therein -provided_ �,1.nd to the extent the
moneys on deposit in the gross revenue account sii'.11 'ee
available therefor. kll liability of the depository for the
gross revenue account s'zall c��L.se a.s and to the extent to
t:hich the moneys on deposit therein sn.'-.11 be so transf.3i-ped
and paid out by it into the said s;eeciLl funds. Acceptance
as a depository for the gross revenue account by a_ny b nk at
any time designated there�:or shall be signi.fiec by such deposi-
tory indicating its acceptance on a copy othis resolution.
IZ
(1) (a) There is hereby created a special
fund to be known as the IlGas System Bond and In-
terest Redemption Fund" for the purpose of pro-
viding for payment of the 1)rincipal of and interest
on the bonds. The bond anc' interest fund shall
be maintained until both the principal of and
interest on the bonCts shall h,_.v., been paid in
full. Out of the gross revenues derived from the
operation of the system th^re shall be paid into
the bond anc_ Lat:)rast fund. the follo ing: on, or
prior to the last day of a,:-.ch calendar raonth be-
ginning with the month during, -,rhich operation of
the system will be begun by the tol,,m and contin-
uing thereafter until � nc- i acluc ing the month of
July, 1948 an amount ec1 ual to the total of one -
sixth (1/6� of the interest ,,-;hick will be payable
on the bons thin outstanding on the next interest
payment date; z7.nd bogin:.hi-_hg. -::ith the month of
August, 1948, and continuing each month thereafter
until the princip.,l of L,.nd interest on the bonds
shall have been paid in fall, an amount equal to
the total of one -sixth (1/6) of the interest i:,hich
:brill be payable on the, bon( S then outstanding on
the next interest ,-)ayment date plus one-ty,relfth
(1/12) of the princi.L)al of the bonds then outstand-
ing z°hich i-rill m,.ture on the next --principal pay-
ment date. Simultaneously ;^:-ith the issuance of
any of the additional bones th3re shall further
be p,- id into th , bona :;.nC. int e-r ,,st fund. out of
the proceeds derived. from the sale of the addi-
tional bonds, such sum as, .^Then added
to the subsecuent .,_,ayments -. hich are rec uired here-
in to be .wade therein, i;rill .cake available therein
on the 'nc:-It interest payment date the interest
Next maz.turing on such additional bonds. Any such
monthly p�:ymont may be anticipa.teJ by the tovm.
(b) In addition to the ,,pa-yzients rec!uired in
subsection (1) (a) above to be ;}aid into the bond
and. interest fun,, there shall further be paid
therein, out of t?he gross revenues derives. frog.. the
operation of the syst ri, for the purpose of pro-
viding a cushion to meet -.ny c!.eficioncies which
may occur in th bond anc interest fund, the sum of
072.50 during each ca.lenc.ar iiionth beginning with
the month of T' ,Dbruary, 1948, and continuing until
the amount o" such cushion sra.11 equal or e:.ceed
the sera of $22,350. The moneys forming a part of
such cushion shall constitute a. pp.rt of the bond
anc, intei cst fund but shy:, e ;," e� to
11 b pt in �. s l,�.ra
account therein and may be used only in such fiscal
years -_s the gross revenues c!.erive(! from the opera-
tion of t.ho system _,va.ilable th-�ref'or shall not be
sufficient to?:iy thy: -principal of and int='r,�st on
th3 bonds maturing curing such fiscc.1 year. '.:hen
any of the r,icneys f or ri -_g a p�i.rt of such cushion ,:re
so used the sLza shall -)o restored by ;.)ayments into
the bona_ anc. int�rest n, , f'or the 1-Mr-pose of re-
storing said cushion, o' the surd of $372.50 each
month thereafter until sziu cushion shall consist
of th : sum of $22, 350. ',lien L'.11 the bonds shall
-1G-
have been issued or cancelled and the rni�neys in
said cushicni equal ur a.-cecd the . ggregete prin-
cipal of and interest on the bends then remaining
unpaid, said moneys may be used for p�::yment cf the
principal of and intersst on the bc,nds as and whey
such principal and interest 311all become dus .
(c) InL the &vent the gress revenues derived
frc r the operati.:n of the system during any fiscal
yZ�ar and a.vuilabla for such purpose shall not bs
suffici :nt ttl pay the principal of and. interest con
t:,ic b;;nds raUturing Lai such fi;scal year, aril there
shall ii,':t b: tl eln, i:i said cu.shicia sufficient
fcr such purp,--,se, then an - diticvial ')unt Suffi-
cient to pay t1la yrincipal and interest sc in de-
fault shall be set _side out of the gross r venues
c;f the syster: during the next succeedinu fiscal
year u-iCI paid into th e bond and interest fund and
ap ;,lied to the paymea;t of such principal and in-
tor,,st so iri d0fault.
(.'.) Th:�re _.s hereby created a spacial fund
to be krr.ovria as the „&�. s Systar�i Oper.-.tien and
P,� i:nttn�:_ric Funds, for th purpose c,f providing
fvr the payment of all expenses of administration
and operatic_1 of tins systam and such sxp nses for
rrl'.inten�.nce theraof as iury be nec:assary tc: Urc-
s lrve the syste ; in -ooc. r0p4.ir and in geed vvork-
ine; or. L:r. Olut of the gross rrvanues derived fr;m
the cf) ration of tha syste:r. r-_--n- :ining tiach north
after -aayna_,nts h..vs beer:: ruade into: the bond and
Laterest fund in accordanc.-n with the provisi.c,ns of
this s::cticr:, thera, shall b:, l)!_Ad into the �para-
tion ant' mair_tena—ice fvr_c'. _ ach ,'aonth .uri.ng which
moneys ars c.-Naila.bla fc:r• such j irp -:se such amount
Or cmour:ts as the council by rescl.utic.z May�fl=ore
ti.me tc time find shall b D n :�cessv.ry to pay the
rLas n .bl e. p;anses incurr�.d during the than
currant month for Bach ad.,Ali strE.ti::n,
and r:::zintenc.-cs ,f tn-. syst :Yr. she follctJring
iterl.s shall b,a included in the axp-nses of op:;ra,-
;ir.�no charges and expenses c-f th,,, trustee and of
any p� yinL ge -t for tho b,-n,ds and any depository
for any special fund herein cr=gated; the pra-
rsiums on all insurance policies and fidelity bonds
cirri ad pursuant tc` the provisic)r s of this re-solu-
tior,.
(3) T'h-ere is heraby cract,:d a special fiLnd
to be a.s "Gas Syst=am Depr;�ciation Fund" for
the purpose of building up a reserve :for daprecia-
tic. of the system. Out of the gross revsnues dc-
rived froth th- op.:r tio.i of the systar r-,lainin
each -.c nth I,ft-.:r payments have beLn mv.d , i t the
bend and int r,�st fund nnd the c;paraticai and main-
tenance fund in accordance with th 3 provisions of
-11-
this section, there shall be paid into the de-
preciation fund the sum of �01.00 each month dur-
ing which moneys are available for such purpose.
The town has found and does hereby determine
that in view of the serial maturities of the bonds
and the moneys herein provided to be set aside
for their payment, the said payments into the de-
preciation fund will be sufficient to build up a
reserve for the depreciation of the system.
(4) There is hereby established a special
fund to be known as the "Gas System Contingent
Fund" for the purpose of building up a reserve
for improvements, betterments and extensions to
the system other than those necessary to main-
tain the same in good repair and in good working
order as hereinabove provided. Out of the gross
revenues derived from the operation of the system
remaining each month after payments have been made
into the bond and interest fund, the operation and
maintenance fund and the depreciation fund in
accordance with the provisions of this section,
there shall be paid into the contingent fund the
sum of333.34 each such month during which moneys
are available for such purpose, beginning with the
month of February, 1948, and continuing thereafter
until the moneys on deposit in the contingent fund
shall equal or exceed the sum of j20,000. The
moneys paid into the contingent fund shall be used
by the town solely for the purpose of making im-
provements, betterments and extensions to the system
of such nature as are properly chargeable under
good accounting practice to a fixed capital account,
as distinguished from expenditures for repairs and
maintenance normally necessary to maintain the
system in good repair and working order; provided,
that if at any time the moneys on deposit in the
bond and interest fund, includingr the cushion
therein, shall not be sufficient to lay any matur-
ing installment on the bonds or coupons as the
same shall respectively mature, then the moneys on
deposit in the contingent fund may be used for
payment of the bonds and coupons so maturing but
only to such extent as may be necessary to prevent
default thereon. As and when any moneys in the
contingent fund shall be so used for any such pur-
pose, such moneys shall thereafter be replaced by
continuing payments into the contingent fund in -the
amount and manner herein provided each month there-
after until such time as the moneys in the contin-
gent fund shall reach the sum of Q20,000.
(5) There is hereby established a special
fund to be known as the "Gas System Surplus FundP°
for the purpose of building up a surplus to be used
solely for calling the callable bonds for redemp-
tion prior to their maturities. The entire surplus
of the gross revenues derived from the operation
of the system remaining each month after payments
-12-
have bsan Made into the bond and intr rest fund,
the operation anc. mai.r_tananr,(s, fund, the deprecia-
tie_-n fund ,,nd the contingent fund L'i acc;;rdance
with the r apectiva provisions of this saction
shall first be used for tha purposa - c,f ?u_r.king
good any deficiencies 4,rhic'ii rali ;lit at th,: tiP.le
exist in the bond and interest fund, the operation
end maintenance f'u°.,d, the depreciation fund c.nd
the ec:ntingant fund in the .::rder in' which s, id
fizids are herein created; thereafter, s,:: lcng as
no such daficie .cies sb.-11 exist, such surplus
shall be pai"' int::) the surplus furi' . The town
may t any time n~+ frail t-L-.e tc ti�:ia, as the
council r_.&y dear such, action c? tvisable, use any
or all of the moneys in the surplus fund f; r the
r-n emptio i of the callable bcn(s in tha manner
provided in Section S her --of. V4hei er and as
often as ther:: shall be on -deposit is, the surplus
fun, an amount -,ufficiant to redeem c,a much as
"5,000 principal an- unt of the callable bc;nrys then
the rr;,nays so on rep�)sit in the surplus funO shall
Cher upon be used by the t,i n fcr the purpose of
radeemint; the callable bonds to the extent to which
such r:ioneys uU eff ,ct such redemption on the next
inter-�st paymant do.te on ,Which ary of the call-ble
bonds may be rec?eeried. No rioneys sha.11 be paid into
the surplus fun:*L excapt surplus ri,, neys derived fren
the cparation cf the systoi:, ram€:fining after the
currant monthly pay_aants her, -An requireO, to be made
into the other special fuids herein c-ree.ted shall
have been pai: therain.
(b) The trustee: shc:1.1 at 411 tires ba and remain
the depository fur the bend and interest fund n-nd .the
contingent fund. The council rtay at any tiiiiZ and from
time to time designate any institut-ion or
iastituti,:.ns as depository or depcsitor:ias, on such
terns as ray be rutunlly acceptable t^ the toyrn a.nc
such d2nosit�rlas, f. Dr tha gross r,:venue acc_,unt, the
,operation and maintenance fund, the depreciation fund
and the ,surplus fund. Any such depository so designa-
ted may wt any tiiie b=� remov::d as such by the council
,.nd a nes,, dap.:.-sitory d asf r natedt by tlaa council in
lieu there;,f. Any d.ep::)sitory ct any time so designated
shall. at a.11 times while actin, as such depository
be c.nd remain a ra3mber of the Federal D :posit Ln-
sura.nce CorP'�ratI%rn, or of any ige:Inncy .%,hich may suc-
ceed to it if thsre are any such, and. shell be and
remain duly qualified and doing; business in the State
of Al..bama. Any no -rays at any tir__e forming a. r_zrt of
the cper�7.tion c_au na.in-tenc.nce fund, the contint;ant
fund an: the surplus fun.(� may e, �,irithdrv-,,zri therefrom
by- the -tc.;,in fr.am time to tima, a.s in tha pound dis-
cretien of the council such actic-n raay be necessary
for the: purposes for which said f nc' s are herein
respectively cr -ated, and any depository therefor
shall not be liable for the fijisa..pplicw tic�ri by the
torn, of -any moneys at any tiric formirij c: p,:lrt thereof
if such moneys shall be disbursed by such deposi-
tory pursuant to the ti°mitten c: rder of a duly
authorized officer of the tewn and without kn,,w-
ledga or reason on the part of such depcsit:ry
to believs that such disbursements cczastitute a
misap-pl icati^n of funds. The mc'nleys at the time
forming a part of the bone'_ and ix.!t=er :st fund shall
be applied direct by the truste<: for p�yrment of
th ; principal of and interest on the bends .as s -.id
;principal and interest shall .r. esp,ectiv ely mature.
(7) The town may from ti-,:ie 't , ti.rie whenever
in the sound discretion of th=a council such actiDn
may be deemed advisable, cause any or all of the
moneys in the bond :.nd interest fund, the deprecia-
tion A.,nd, the contin,,ent fund and the surplus fund
which sh:.11 nc:t be needed during the then ensuing
twi.ly. calendar t.irnths for the respectiva purposes
for which said funds `:ra rc'Sp,3ctiv�;ly Cr���i:C'ci, t0
be invested in b jn'ds cr other securities ,jvhic11 are
direct general obligations of the United States of
Arreri ca. In the event of any such investment such
socuriti•-,�s together with all. inc:erne derived there-
from shall b:,ccr.le a pert of th^.t fund vrhr•s , racn�,,ys
were us3d .for such investiaont and shall ba held by
the depositcry fcr such fund tie the same extent as
if they ,;sere moneys on deposit therein. The town
may lik-owis e f rum t i ua to tirrio cz,.uso any such se-
curities tc) be sold, wh:;reupen the nat pr oceads
derived- from ar_y such sal, shell becc:u,e a dart of
the fund to ti:-hich such securiti. s w,:%r._� apphcabla.
Tha apyjlica rile depository ::hall be fully prr tected
in mn ,.Tung any sv.ch investment :;r s41-. up�,n direction
giv,:n -in a rosolu t i.cn of the council.. In the event
wry of such rronays she ' 1 b� so invested it shall net
be nocessary for the depository therefor to secure
any such investment (in any case where s-�,curity for
such mi:,neys ruight be c:,thery isa required) so long as
seed moneys shall rem^in so investod.
(8) The inctme frcm and the rovenu�s of the
system are hereby separated from the physical prcper-
tias ermpris:i.ng the syst:,,m to such extant as ma,y be
necessary to moko the payments herein rDquired to be made
into s^.id special funds created in this Section 10, and
sc,id inc: LYi.: and revenues are hereby irrev;;ca.bl-,T pledged
for the ban:) -fit :,f the holders (-,:f the beads for the -)ur-
poses for which said special .funds are herein crested.
Seeticn 11. C_oristruction of the S.yste!ri. The town
will proceed fcrthiztith and will go forward continuously end
t+vith reasonable dispatch ti;rith tale construction ano' equipment
of thy: system substantially in accordance .•, ith the plans end
specifications ther:;for .which have boon acceptedby the town
and on file in the office; of tha tovrn , clerk. The town Yi.1
complete the coristructic.n and egaipriant thereof as soon as
may be practicable, d-alays incident to strikes, riots, act --
of God and the public ensmy and siiril,-,.r acts beyond the
reasonable control cf the tctrirn .;aly ; xceptac . The tcv,n
will pr :,,raptly pay as and when dupe �.11 expanses incurred in
and about the construction and equipment of the system and it
will not suffer ;;r permit any machanicst or matarialmen's
liens ahich i-Aght be filed :�r otherwise claimed or establis'a-
ed upon or against the system or any .,:part thereof to remain
unsLtt:is.fiad and undischarged for a period oxceading thirty
days after the filing or establishment thereof. To that end,
th , town !vgrees that it will use so .much c)f the proceeds as
-14-
may be necessary for such purpose which will accrue to the town
from the sale of the bonds, after payment of all obligations
curr d b the toti i connectio %ii h he uthori ati n an
Re sage th reof an of ter paymen, in o the bond anc� in?eres
fund of,anamount suffiGient,to tea the interest which trill
accrue during such ccnstruct�.on Inc during so much of six
months thereafter as may be necess:..ry to majta good any deficit
in the payments required to be made therein curing said ,period.
The town will forthwith cause an appropriate surety bond made
by a surety company Qualified to do business in the State of
Alabama to be deposit-ed with the trustee guaranteeing the com-
pletion of the system in accordance s.,ith the said plans and
specifications and free of mechanics' any. materialmen's liens
growing out of the construction cnd equipment of the system,
but nothing.conta.ineu in this section shall impose upon the
trustee any duty or liability %- ith respect to the appropriate-
ness or sufficiency of` such surety bond ox ,,ith respect to the
completion of the system as herein or therein brovided.
Section 12. AgreD-Iaents res2ecting the system. To
the extent aormitted or provided by lz.w, the tov-m does hereby
agree r,ith all future holders of the bonds and the coupons as
follows:
(1) Except as provided in _�_ra.gr&ph (2) of
this section, the town will continuously operate
the system as a municipLl gas c'istribution system
so long as any of the bonds or the coupons rsmain
unpaid, and the toim will keep -the same in good
repair anc: oper�_.ting condition, making from time
to time all needful repairs a:.n:.'�. replacements there-
of and extensions and r�itions thereto.
(2) N- then the ^ystem nor any Dart thereof
shalj be sold or leased+. e;;cept under the follo%-ving
conc.itions:
(a) The system may be sole or leased as a
whole or substantially as a ,-,hole only if the
proceeds rer.lized from such sale or lease shall
be sufficient (.,,Jith any other �:va.ilable funds) :
(i) to redeem on the first data thereafter on
7!hich they may be redeemed under the provisions
hereof those of the ca.11abl bonds maturing on
l-ugust 1, 1957, a.n(I thereafter. .,hich may at the
time b: outstanding; and (ii) to pay in full, at
the -),.r value thareof ;>>lus accrued interest thereon
to their res );;diva maturity 6-LAC �:;, all of the
other bonds at the tin e outt�.nciing which are not
so subject to r.�deription.
(b) she toy: n shall hive the right to sell
or lease any of the :properti�,., co,.prisin- the
syst �m .,hich may b 3 four, by th n: council to be
worn out or obsol-.te or no longer necessary or
useful in the operation of the system. The pro-
ceeds received from the sale or lease of any such
property shall be used solely Lor the ,-)urchase of
other or wdditiona.l property o:i at least equal
utility to rei?laca the property oo sole. or leased.
(3) The torn ::ill not mort,wgs the system
or any S)z�.rt thereof unless such mortgage shall
recognize the ,)riority of the pledge of revenues
herein contained for th•3 benefit of the bones.
The town will not incur any other obligations or
issue any bonds or other evidences of indebtedness
payable from the revenues of the system unless the
proceedings under which the same shall be so issued
shall provide that they shall be subordinate in
lien to the lien of the bonds issued hereunder.
Nothing herein contained shall be construed to
prevent the town from hereafter purchasing additional
property to become a part of the system on condition
or lease sale contract or vendor's lien or purchase
money mortgage; provided, hovrever, that the pro-
visions contained in this sentence shall not be
applicable to property purchased under the provisions
of subsection (2) (b) of this section to replace worn
out, obsolete, unnecessary or unsuitable property
forming a part of the system, which substituted
property shall be acquired and shall become a part
of the system free of all liens and encumbrances.
(4) The town will maintain such rates and
charges for the gas and services furnished by and
from the system and make collections from the users
thereof as shall produce amounts sufficient at all
times to provide for the payment of the principal of
and interest on the bonds as and when such princi-
pal and interest shall become due and payable, and
to maintain the bond and interest fund, the operation
and maintenance fund, the depreciation fund and the
contingent fund to the respective extents herein
provided. The town will make from time to time such
increases and other changes in such rates and charges
as may be necessary to produce said amounts. Until
such time as the amount on deposit in the cushion
constituting a part of the bond and interest fund
shall equal or exceed $22,350, and the amount on
deposit in the contingent fund shall ecival or ex-
ceed 420,000, the town will not reduce or make any
changes in the charges for such jas and services
below the rates and charges provided for in the
schedule of rates and charges for the system ini-
tially adopted by the town. The town will at all
times classify the customers of the system into not
more than three classifications designated residential,
commercial and industrial.
(5) The town agrees that it will not furnish
or permit to be furnished by or from the system any
free gas or free service whatsoever to any county
or incorporated municipality (indluaing the town)
or to any agency, instrumentality, person, firm or
corporation whatsoever, and that all gas and services
furnished from the system shall be charged for at
the rates at the time established therefor.
-16-
(6) So long as any of the bonds cnd coupons
rei lain unpaid the tc;wn will not [ rt:.nt tc any per-
son, firia, association or ccrporati.on the right,
privilege or franchise of using the streets, -ve-
nues, allays ^.nd other public nays in the town for
t ie punj oa : of operating; a gas distribution system
in the t'.-Am in co.:.p.;tition ,:ith the syst-:gin.
(7) The system shr_11. be operated on P. fis-
cal year basis .from October 1 of each ye^r to
September 30 of -the following year. The town
will cause proper books and O ccounts Cdapted to
the systen, to be kept and will. cause such books
and accounts to be auditee annually by a recog
nized independent firm of certified public ac-
countcmts, which shall sho`h: in reasonable detail
the income, expenses en-" earn)ir_gs applicable to
the system _'u:ring each such period and the asaets
and licbilities (applicable to the system st the
end of e.f.ch such period. The town sill cause
such nudi_t to be made within thirty (30) days
following the close of er.ch such fiscal year, ar_d
within ten (10) ;rays_ after raceii1t thereof it will
file a copy thereof with the trustee. The trustee
and the holdex or holders of any of the bonC.s
shall at all reasonable times have the right to
inspect the system c.nc the records, accounts -.&
data of the town relating thereto.
(8) The to-,rn ,,Till keep zall builclings and
other structures at any ' ime constituting a p�,.rt
of the system and all personal property located there-
in insured to the extent of tiia full insurable value
thereof against loss by fire (including explosion
and extended coverz_.ge) . The town i ill keep all pipes
c,nd mains ,.t t^.ny tirr!e constituting a part of the
syster.; insured to the extent of the full -insurs,.ble
value tlierefor c.g"-inst loss by earthquake. The town
will carry c.dcalUate public lic.bility insurance and
,Fror'..Q-rsent s co,.,pensation insurance in F-mounts com-
parable to the L_rLcunts aorr,,�_lly carried by private
coupc_nies engaged in the oper,-.tion of Sas distri-
bution syste:ms in AlabInma of co:aparable size. All
moneys receiv-.d as a result of any losses under
any such fire (including; explosion tnd extended
coverage and earthquake insurance) shall be used
solely for the purchase of other or additional
property to becone a part of the system E.nd having
at least --ou•).l utility to that with respect to
the loss of or damage to which such insurance shell
h: ve been pa i.' .
(9) The town will carry fidelity bonds cover-
ing all eraployess whose duties involve the h,,.n.dling
of raoneys derived from the operc.tion of the system,
-17-
Which bonds shall be i.1 amounts cornparc.ble to
the a�:icunts norm<<lly carried by private com-
panies engaged in the operation of comp:.r-ble
gas distribution systems in Alt,^.b� iva.
(10) The toom t--,c.rrant s its tins to all
and every p �.rt of the syst-am ,..s s ree. and clear
of every lien, encun.br,"nea, trust or c -rge;
-aid that it Sias power and. authority to sup jest
the revenues de2ivedl fr rri the on ,ra ticn 'of the
system to the liens thereen herein cret.ted, and
it h^ s do--ne so hereby.
(11.) If the ar;courit of any user of -,is
or s ervicas from the systan shall rem An tui-
paid for a par ioO. of thirty (30) clays after such
excount sh�p..11 become clue, the town will thereupon
promptly discontinue the re n ditic�n of such gas
and other �.ervices to such user, but upon sub -
sec uent paynent of such ^ccount, incluC.intg any
penalties which may be provided for in the sche-
dule of rates of the tovna, the town may therer.f-
ter furnish ga.s r nd services to such us-
er until the account therefor shall main remain
unpa.i:' f. or a per. iod of thirty (30) days after
the s: ;.le shall become clue, i h reupon �ue11 gc:s
Gnd services shall gain be c iscontinued. Accounts
for sash gas c;.nd services, shal _ becorie due and
shall be billed to the users thereof not less
often t1lan once Burin each successive calendar
rionth .
(12) In the event of default by the town
in any of -the -:rays -1erEi n^.�'t r define(l end the
oppointmant of receiver or raoce ive-rs for the
operation c f the system Burin- such default,
such receiver and receiverrs at any tune duly
appoint,�-d .for such purpose shall. have c:.1id are
hereby grcnted trio u;.i.restricted and uriliriiteO.
righ , to the use of the streets, avenues, c.l-
leys and other public ways in the totem for the
constructic,n, extension, improver.ont, operation
and .-'aizteiiance of the system thereover nd
themthrough. Upon request so to do by any
such receiver or receivers the council will a-
dopt an ,.-pproprir_te ordizlnee rcriting, to such
receiver or raceiver and their respect-lve suc-
cessors in office ? franchise recogriz.zi-lig 'nd
grantinz tha aforesaid right to tho use of the
public ways in the tctrvn for the aforesaid ,cur -
poses.
Section 13. Definition of default. Any of the
following shall constitute default hereunder by the town:
Wailu e b� the tct,m. to gad the prin-
cipal in eras du. on v.ny b;nz:. ;r coupon as
EK .3
and when the becomes due as therein I-.nci
herein Y r ovi ( ad, wh.:th,�r such shall becoi,-- e (sue
by maturity or. othertvrise.
(2) Failure by th,7, tol.lm to perform ^.ny
of the zr;reements on it, p`=>rt herein contain-
ed after fifteen (15) ulayst vrritten notice to
it of such fc.ilureix-de by the trustea or by
the Holders of 0% of tine bonds then oatstand.-
ing .
A pointment b court having urisdic-
3 ; P.� Y �� J
tic,n of a receiver fcr the system or any part
thereof, or ap;Jrovc:l by court of ccrNpat:nt jur-
isAiction of :.ny petition: seeking the r :funding
of the b;%nds under any provisions of` the b�.nk-
ruptcy ltaws of the Units(: St=:_tes.
S ctiori 14.. Re_,�ec ics on cief aitlt. U-nor. default
by the town ill any of the t� q'-ys defined in S:=cticin 13 hereof
the following remedies zha.11 be avail'.ble:
(1) The trustee may, by vzrritter. notice to
the t<-SJ°riigal of all the bonds
trier. -)utstandi ng forthwith due and payzble, and
thereu )(,n th.ey shall so be, anythiliz har ;in or
there-L-1 tc. the c .ntrary notwithstanding. If,
thereafter tna t �-or_n _.-,aloe g::�cd that de-
f.ault ._ c. every .ether default h.areunde (;xcept
the principal declared pc:yable) , with interest
c.n all. overdue installments of principl and in-
tarest, and make reimbursement of rill ex.ponses
of the trustee, then the hol:��ers Hof 4
in princip.:,_1 lv.m)unt of the b.- z:.ds outst.:nd-
ing, by written notice to the trustee, may ,aaiva
such clef'^.ult and its cl--:n�-e, uences, but nc vraiver
shall affect any subsequent default or right rel-
ative thereto.
(2) The trustee may proceed, either at law
or in equity, by suit, ,.ctic)n, m,.,.nc?nirus or cther
proceeding, to enforce and cari�el,erf� rii� :nce of
all 4 f;reements .,f th,7: torn herein contain::d, in-
cluding the fixing t_ f rates, the ccllecticlp. and
proper segregr.tic n of 'h.? revenues the system,
V.nd tae proper application thereof, and shall be
entitl,sd to and shall have, regardless c f the suf-
ficiency of any security or the availability cf
any :,trer re iaedy, the apl,c,intment of << receiver
to administer and operZ:te the system and perforr;
the agreements ,ri the part of the toun herein con -
wined.
M'M
(3) The trustee m.sy at r..ny time file a claiM
in its -..,vm :aa=e or fc,r the b;nefit, o:C- the hole..ers
of the bonds ,.nd the coupons in any court proceed-
ing where any such cl- ira may be permitted or re-
quired, whether such proceeding be by way of r -
organization, bankruptcy, receivership or of any
other nature. The holders of the bones and of
the cautions, by .^.cceptance therec, hereby con-
stituta and appoint the trustee :.s their irrcv-
ocabla agent and att::)rney in fryct for the pur-
p:ase of filing any such claim, but such authcr-
iz'..ti(.;rl shall not include the povirDr t , agree to
c.ecej:)t any securities r,f any nature in lieu of
the bads _.not c::,upcns or to alter the terms of
the bone s and coupons.
(4) All remedies h:;.reurider are vested ex-
clusively in the t-�^uste for the equal v.nd pro
ra.ta benefit ' :.�f all the hold -ors cf the bonds
and coupons, unless the trustee refuses or neg-
lects to act within a reasonc.ble t M' c.ftor
ritten request so to do c.ddressed to the trus-
ted by the -h-ALd rs of 20% of the bands then out-
standing., accc;mpanied by ind< i-Hii.ty satisfactory
to tP.e trustee, in vihi.ch event thO holder cf
any of the b-Dnds or coupons may thereupon act
in his owLi in lieu of F� C. J_cby cr in the
name of the trustee and moy p. rfurm 4:: y or all.
of the remedies herein specified. Except as
a_b^ve provided, rz -� hold>er of c'.ny _ f the bonds or
the ccnupons shall hc.ve th.a right to enforce any
remedy hereunder, and then only fc r the ec�uc l
and pro rata beaief it f the holder; of all the
bonds and the coupons.
Section 15. Cc;ncerninp: the trustee. The trustee
is hereby dasi gnated as -trustee for the holders of the bonds
and coupons with C.11 the rights, puyiers, and it=unities here-
in specified. A.cc.�-:tance by the trustee c,f the trust hereby
created, VC on the co�.iti ns herein set out. will be conclusive-
ly presumed r.:nC evidence?. by execution of the c.uthentication
certificate endorse,? upon the bands. Such acceptance by the
trustee shall be construed t., constitute an agreenient on its
part to perform the duties herein required of it, either ex-
pressly or by reasons ble implicc.ticn, subject, howaver, to
the fallowing c-onditic-as:
(I) It slt.^ll not be :,�nswerable for any-
thing wh^tever in caxinactico `�fith t ).i.s trust,
:cept its willful misconduct Dr gr;: ss n glect.
(2) It may employ ?gents " nd attorneys in
fact and shall. not be --.nswerable, except c:s to
moneys receiv d by it or by its autliurized. a-
gents, for the default or misconduct. cf r.ny such
sel.: cted by :it with rea.son.ble care.
-20-
(3) It rzy consult counsel on any riatters
c:;nnected herewith czid shall not be answerable
for any act_on tak.an cr failuro to take any �c-
tion in good ft.ith on tha advice of counsel.
(�) It need r_ct rocognize a bondholder as
such -without the submission of }pis bands for in-
spaction a:nd the sctisf.<.ctcry � stc?blishnent :�f
his title thereto.
(5) It shall not be answerable for any ac-
tion taken in good fZitl. _n c-ny niD:;ice, request,
cr.nsent, certificate or :)ther p,,:.per or document
which it bel:i.evas to be genuine and signed or
c:_cknowlodEed by the t)roper plarty.
(6) It need not notice any default by the
town hereunder nor need it exercise: 'c?zy of its
rir;hts or Dowers in consequence the* aof unless
so requested in writing by the holders of twen-
ty per century (20%) of the then outstanding
bonL'.s; it may do so, if. it , thinks advisLabl.e, with-
out any such requ-ast; it shall jo s.., rhon so re-
quested. 511henever it has a choice --.f r`modies
or C. di.scretic,n as tO details in ti,.e exercise of
its pc, rers hereunder it Taust follow any specific
writt a c?irectiuns given by the holders of a ma-
jority of the bones ��.t th-e ti::.e )utst,^ rding,, any-
thing ;.iereiri or therein to the c�-ntr�,ry notwith-
standi:n6, unless the of such direc-
ti:-ns tiv ;uld, in the opinio. A r .f , tha trust. e, iul-
justly prejudice the nonssent in bonc'holders;
but satisfactory indemnity _`o th.� trustee by the
holders of the bonds requesting such action a-
gainst its trospcctive expenses and li.bilities
is a. cnnditi-,n precedent to its duty to take or
continua any :�u.ch action hereunder which in its
opinion %vauld s"., -i nvol vJ , it.
(7) It ra,-.y bi the holder of bonds as if
not trustee he raunr er .
(8) All Moneys received by the trustee to
be field by it hereunder shall be held as trust
funds until c?isbursed in the riannar herein pro-
vided therefor. The trustee shall not be li^-
ble to pay or allow interest thereon, and shall
not be requ.ir:d to set aside or deposit any se-
curity therefor.,
(9) The recitals of facts harwtn axid in
the bonds are statements by t1le to,' n ::nr? not
by the trustee, and the trust:::; is in nr way re-
staonsible f-;r th:a validity or security Of the
-21-
bonds, tho existence of the system, the value
thereof, the title of the town thrretc, the so-
curity efforded thereby, or the validity ..-r
priwrity of t 1a lien herein created on the re-
venues from the cperr.tion oi' the system.
Section 16. Substitution of trustae. (1) The
trustee miy resign and thereby bacoEie di scha.r; ed frcrl the
trust hereby crec..ted by notice in ,riven to the town
and published one time in r: n.:�aspc.per or finc:.ncia1 journal
published in the City of Bir ?i7� ;h:.::a, Al' :,,,r'?a, which ��ublica-
tion shall be not less thc.n thirty (30) l ys befcrc such
resign4 Lion is taw take effect, but such resign^tion shall
take effect upon the a pp,) .ntr nt of
a new trustee if --uch now trustee be appointed nd qu1,.li-
fied before the tide limited by such. ic-tica. The trustee
may be rei:iovad at any tir%re by E.n instrument in -writing. sign-
ed by the h::)lders of nit less th:.n a me jurity in. principal
amount rf the bonds then outstaldi.ng, aal*t filed lith the town
and also ,-iit-h the successor trustee.
(2) in case at any tir.?e the trustee shall r:..sigr_,
be .removed, be dissolved, or otheri,.is baco?i,,� incap^ble of
acting, ;,)r the. affw_L of the trustee shall be t-_ken over by
any gc.vernriental (.ffici,,.l .)r �. e.1cy, cr if the p.:-siti.,n of
the truste=:� shall become vacant for s..ny rat.scn, a successor
trustee n?=:y be appointed by the holders of m . jority of the
bonc_s then utsta.ndinC by c.n instrument in ;rriting signo.d by
such holders and filsd wit!,I the t,,)vT i; provided, o.nd it is
hereby a raze and decic:rted, th,.t in case at any time there
shall be a vacancy ili the : ffiC.2 of truste;: hereunder the town
t:1r_,.y appoint a trustee to fill such v c,^.ncy until La successor
shall to ;.appointed by the bondholeers ashere by authorized.
`:.ny trustee hereafter appointed. shall bo trust cc-m-p ny or
bank doi.nL business in t.ie State _)f klabahla and having the
power to accept ^.nc. administer trusts Lad having a combined
capit,.i MC, surplus aggregating not less than $1,0002000.00.
Any such successor trustee a.p_)ointed by th--- to1�m shall
immediV.taly and withc.ut further not be superseded by the
trustee thureaftor : ppointCd by the bondholders in the
manner herein py ovic?od. Noti.ca c f c:ny such appcintr.?ent c f a
successor trustae, however appointed, shall be given by
publication by the tovm cane time in arr:vJspaper or financial
journal published in the City of Birmingham, Alc.barla..
(3) Every succossorr trustae appointed heretuldar
sr !11 axecuto, a.ckn; ,.l::dge and d liv�Lr t 'ts predecessor, c � � �.r uecessc r,
and also to the torah, an instrument in writing accapting
such appei.nt ient hereunder, and theraupcn such successor
truster-, without :any further ^ct, shall become fully vested
with all the rights, ir�miunities, po;aers, trusts, duties and
obli;ati-,ns :,f its pr.adecessor; but such iaredec:;ssor shc.11,
nevertheless, on the written request I f th-�, town, deliver
to such successor trustee all fun,'s at the time held here-
under by such praaocessor trustee. Should any instrument
in writing from the town ba raquosted by any successor trustee
fof° -Mora fully and certainly vesting in such successor trustae
-22-
the rights, powers and duties hereby vested or intended to
be vested in the predecessor trustee, any such instrument in
writing shall be executed and delivered by the town.
Section 17. Payment at par. The trustee, by ac-
ceptance of its duties hereunder, shall be construed to have
agreed thereby with the holders of the bonds and the coupons
that it will make all remittances of principal of and inter-
est on the bonds and the coupons, out of the funds coming
into its possession for that purpose,in bankable funds at
par and without deduction for exchange, fees or expenses.
The town agrees with the holders of the bonds and the coupons
and with the trustee that it will pay all charges for ex-
change, fees or expenses which may be made by the trustee
in the making of remittances in bankable funds of the princi-
pal of and interest on any of the bonds and the coupons at
par.
Section lg. Form of bonds. The bonds and the
coupons and the trustee's certificate shall be in substan-
tially the following forms with appropriate changes, omissions
and variations therein to conform with the rrovisions of this
resolution: y
No.
(Form of Bond)
UNITED STATES OF AlZRICA
STATE OF ALARLLIA
TOWN OF FAIRHOPE
GAS SYSTEM REVENUI, ANTICIRITION BOND
On the 1st day of August, 19 , for value received,
the Town of Fairhope, a municipal corporation in the State of
Alabama (herein referred to as f4the townf4), agrees to pay
to the bearer hereof, or if this bond be registered then to
the registered holder hereof, but solely out of the special
fund hereinafter referred to, the sum of
O N E T H O U S A N D D O L L A R S
with interest meanwhile at the rate of % per annum
payable semi-annually on February 1 and August 1 in each
year until maturity hereof upon surrender of the annexed
interest coupons as the same respectively mature. Both the
-23-
principal hereof and the interest hereon are payable in law-
ful money of the United States of America at the principal
office of The Merchants National Bank of Mobile, in the City
of Mobile in the State of Alabama.
This bond is one of a duly authorized issue limit-
ed to the aggregate principal amount of $355,000, numbered
from 1 to 355, inclusive, (herein referred to as "the bonds").
The principal of and the interest on the bonds are payable
solely out of a special fund known as the Gas System Bond
and Interest Redemption Fund of the town, consisting of
revenues derived from the operation of the gas distribution
system of the town as presently and hereafter constructed
(herein referred to as "the system") , which fund has been
created and is required to be maintained and has been pledged
solely for payment of the principal of and interest on the
bonds.
The bonds have been issued under and pursuant to
the provisions of Chapter 6 of Title 37 (including particular-
ly Sections 308 to 340, inclusive, of said title) of the Code
of Alabama of 1940, as amended, and a resolution duly adopt-
ed by the town council of the town for the purpose of raising
funds to pay the costs incurred in the construction and equip-
ment of the system, interest which will accrue on the bonds
during such construction, and expenses incurred in connection
therewith. Said resolution designates The Merchants National
Bank of Mobile (herein referred to as "the trustee") , in -the
City of Mobile in the State of Alabama, as the trustee for
the holders of the bonds and provides, inter alia: that
the trustee shall primarily have the exclusive right to en-
force the provisions of said resolution and of the bonds'un-
less it fails or refuses so to do after notice, request and
indemnity to it as provided in said resolution; and also in
the event of default by the town in the manner and for the
time therein provided the trustee may declare the principal
of this bond as immediately due and payable whereupon it shall
so be.
Those of the bonds numbered from 19 to 355, inclu-
sive, are subject to redemption at the option of the town
on any interest payment date on or after August 1, 1951, as
a whole or in part in the inverse order of their numbers, af-
ter thirty days' prior notice given in the manner and sub-
ject to the provisions respecting such redemption provided
in said resolution, at the par value thereof plus accrued
interest thereon to the redemption date and a premium equal
to twelve months' interest on those of the bonds so redeem-
ed computed at the rate they would bear on the redemption
date if they were not called for redemption. Any such re-
demption made prior to August 1, 1956, can be effected sole-
ly out of the surplus revenues derived by the town from the
operation of the system and any of the bonds so redeemed
prior to said date shall not thereafter be refunded. Any
such redemption made on or after August 1, 1956, shall not be
subject to such restriction.
-24-
The bonds do not constitute a debt of the town
within the meaning of any constitutional provisions, nor
shall the holder of any thereof ever have the right to com-
pel the exercise of the taxing power of the town to pay the
principal thereof or the interest thereon. It is hereby
expressly made a condition of this bond that the agreements
and representations herein and in said r:;solution contained
do not and shall never constitute a personal or pecuniary
liability or charge against the general credit of the town,
and in the. event of a breach of any such agreement or re-
presentation no personal or pecuniary liability or charge,
payable directly or indirectly from any other funds of the
town, shall arise as a result thereof.
The town hereby covenants that it will at all
times maintain such rates for gas and services furnished by
the system as shall be sufficient to provide for the payment
of the principal of and interest on the bonds as and when the
same become due and payable, to maintain a bond and interest
redemption fund therefor, to provide for payment of the ex-
penses of administration and operation of the system and such
expenses for maintenance thereof as may be necessary to pre-
serve the same in good working order, to build up a reserve
for depreciation of the system, and to build up a reserve for
improvements, betterments and extensions to the system other
than those necessary to maintain the same in good repair and
working order, all to the extent provided in the said reso-
lution.
It has been ascertained and found and it is hereby
certified and recited that all conditions, actions and
things required by the constitution and laws of Alabama to
exist, be performed or happen precedent to or in the issu-
ance of this bona and the creation of the indebtedness evi-
denced hereby exist, have been performed and have happened,
and that the indebtedness evidenced by this bond, together
with all other indebtedness of the tovin, voas when incurred
and now is within every debt and other limit prescribed by
the constitution and laws of Alabama.
This bond shall pass by delivery unless register-
ed as to principal in the owner's name on the books of the
trustee, such registration being noted hereon by the trus-
tee. If registered, no transfer of this bond shall be va-
lid unless it is presented at the office of the trustee
with written power to transfer, properly stamped if required,
in form and with guaranty of signature satisfactory to the
trustee, with such new registration noted hereon by the trus-
tee. If registered, this bond may be discharged from regis-
tration by being in like manner transferred to bearer. It
may again from time to time be registered or discharged from
registration in the same manner. Such registration shall not
affect the negotiability of the coupons appertaining hereto,
which shall continue to be transferred by delivery.
-25-
The principal of and interest on this bond are
i3xenipt from any and all state, county �,nd municipal and other
taxation %,The tsoaver under the 1a,rs of the State of Alabama.
Execution by the trustae of its certificate hereon
is essential to the validity hereof rdiC!. is conclusive of the
due issue hereof pursu::vnt to the l)rovisions of s_,.id resolu-
tion.
Iiv 1-VITNESS 1 HERSOF, the to1r,n has caused this bond
to be executed in its behalf b:; its mayor and its to= treas-
urer c:nd its corporate seal to be herounto iaffixad., and has
caused the annexed interest coup-ns to be executed with the
facsimile signatures of the said m,,yor and treasurer, and this
bond to be dated the lst day of August, 19,46.
Tovvm Tre_ surer Mayor
(Form of Coupon)
Coupon
No
w
On the 1st dr-v ,f , 19 , the To.�m of Fair-
hopef a municipe-1 corporation under the 1at,rs of Alebartta,
Wi 11 pay tc the bearer hereof, but solely fvut of` the GL.s
System Bond ant? Interest Redemption Fun' of the tovai, upon
surrender hereof -at the principal office of The Merchants
NationL1 Bank of Mobile, in the City of Mobile in the State
of Alab^m-.,, Dollars in la. ful money
of the United StZtes of America, being six mcnthst interest
then due on its Gla.s System Revenue Anticipation Bond dated.
August 1, 1946, -.nd numbered . This coupon has been
issu�.d under the provisions of sactirns 308 to 340,.inclusive,
of Title 37 of the Code of hlr.bama, of 1940, as rcmended, and
does rant constitute an indebtedness c.f the town v-jithin the
meaning of any constitutional provision.
ToT,ni Treasurer T41^yor
_26_
(Form of Trustee t s Certificate)
Tiflis bone: is on of the bonds which are described
in the within mentioned resolution.
TFIE MERCHANTS NATION All BANK OF MOBILE
By
Trust Ofz'icer
(Worn: of Registration)
(No waiting on this bond
except by the trust:;e)
Date of Registration Registered. Ovner Trustee
Therz) shell be inserted in the callable bonds and
there shall be inserted in the coupons due on :nd ,.fter
February 1, 1952, cpplicable to the: callable bonds, the follow-
ing additicnal inattvrs:
(L:) Foilotiviri; tt1e maturity di:ta contained in tr1e
:first line of the :first 1 arr.gr,,:ph of each of the callable
bon,-J.- 11-here shL 11 be inserted the folloiring:
'!(unless this bone'_ shall hr..ve been duly
called for prior pcyrs�nt) ii
(b) Following the maturity date of ac.ch coupon
due on and after February 1, 3.9522 applicable to the call -
all bonds there sJ:i�.11 be inserted the fo:llovving:
"(unless the bond to which this coupon
is applic4.ble shall hl, e been duly c,_,:lled
for prior r,.yinent) rr
-27-
Section 19. Contractual Drovisions. The Provi-
sions of this resolution shrill constitu�o a contract be-
tween the town 4:n�L each holder of thy; bonds :.nd the cou-
pons.
Section 20. Severability. The various provisions
of this r�:,solution are hereby dtclnred to be severable. In
the avant my rovision hsreof' sh,..11 be hold invalid by a
court of competent juris iicti oii such invalidity Shall not
affact zny othyr portion of t,is resolution.
Section 21. St.-.tutory Mortgaga L'ten. The too.n
hereby ere^tes ^ st. tutory mortg,atz lien ui,,on the system to and
in favor of the holders of the bonds without priority or pre-
farence of one over -,?mother b-., reason of Drior issua�ice or
otherwise, ,!I -Lich lien ,311a11 tLKa effect irw%.;Ndi€ tine upon (de-
livery of arty of th ; bi7n(. s; provided., however, th t. such
statutory mortgage, .lien sh..11 not be construed to give any
c.uthority to tha council for tn: s,._le of th,: systaM or nny
art thereof at a foreclosure sr:.le cnc no foreclosure proceed-
ings sl_E.11 ever be had with respect to th:; systom or any pert
thereof. The mayor of the town is hereby r.uthorized to execute
in the name and beh� l:' of the tGiAn ::nt' to file in the office of
the Judge of probr.te of Baldwin County, .41r.bliML, ,an appropriate
instrument f'o-r the -purpose of giving; notice to all ,persons of
the croation of such statutory r^ortg4, =,e lien, _".nci the tom
cl.:r. k is her.sby authorized to affix the seal of the town to such
instrument anc attest the sr.ine.
Section U. Sale of the bore:sue (a) Tile initial
bone. s sh�:.11 be f. orthivith sold in such manner and at such times
end under such conditions Ls may har :tofore hrtve been fixed or
inay hereafter b3 fixed by resolutions of the council. Follow
-
inc the sale thereof, the initial bonds sh,_11 bF axecuted and
s"aaled and thereupon deliver.. d to the trustee f,:)r certification
by it. The trustee sh<.11 then ...,xecute the trustees s certifi-
cat,a thereon rnd deliver the :iriiti__1 bonds to the purchaser
thereof s mr.y je uc:signated 'by tha mz:yor of the tovn1 against
�layn�ant therefor by suc 1 purcli�.sE:r to be evidenced by the re-
ceipt of the town treasurer.
(b) Tho additional bonds may be sold as a vihole
or in pr= rt ffrow tine tc, tiii.a in such :(inner and at such times
and under such conditions as may hereaftar b fixed by resolu-
tion of the council; provided, thz:Lt none of the initial bon,=is ?L:.y
be sold unless the council by resolution shall ascertain th_-.t
the net proceeds derived' from the sa l"s of the initial bonds
will not be sufficient to crm .late the ccnstructi ,n and equip-
ment of the system in accordance with the said pl�.ns and specs i-
cations therefor. In the event the system sh,:-11 be so comj�l=ct,eci
and equipped without the necessity of issuing all cf -the adcditim-
al bonds then those .-.f the additicnai b(;nc`s not so issued shall
be cancelled by tie tom and. shr.11 not therenftar be issued.
A.loOted and appr._)vad this day of. , 1946.
T, .y - r
Authenticated
Town Clerk
I
-28-
Councilman moved that -unanimous consent be given for immediate
consideration of and action on said resolution which motion was
seconded by Councilman - and upon the motion being
put to vote the following vote was 701,ded: dyes: Llayor Ruge
and Councilmen Gaston, Bennett ,amper, Stimpson, and Iseeble;
Nays: None. The mayor thereupon declared that the motion for
unanimous consent for immediate consideration of and action
on said resolution had been unanimously carried. Councilman
thereupon moved that the said resolution be
finally adopted, which motion was seconded by Councilman
and upon said motion being put to vote
AiL
the following vote was recorded: eyes: Mayor Ruge and
Councilmen Gaston, Bennett,Kamper, Stimpson and Feeble;
E
Nays: %Tone . The mayor thereupon announced that the motion
for adoption of said resolution had been unanimously carried,
and he thereupon signed said resolution in approval thereof.
Councilman introduced the following
resolution which was read to the meeting:
BE IT RESOTVED by the Town Council of the Town
of Fairhope, Alabama, that pursuant to the requirements
of Section 340 of Title 37 of the Code of Alabama of
1940 the town clerk of said town is hereby authorized
and directed to cause the following notice to be
published in The Fairhope Courier, a newspaper published
and 'having general circulation in said town, once a
week for two consecutive weeks:
-29-
NOTICE OF PASSAGE OF
RESOLUT'IO'N OF TOWN OF
FAIRKOPE , .Al, B_c T-a
a
resolution authorizing the issuance of
055,000 principal amount of Gas System Revenue
:A?nticipation Bonds of the Town of Fairhope, ua-
bama, under the provisions of Title 37, Chapter 6-,
Article 2, Subdivision 3 of the Code of Alabama
Of 1940, as amended, was duly passed by the Town
Council of said tovin on the 13th day of iugust,
1946) for the purpose of providing funds for the
construction and equipment of a gas distribution
system to render gas service in said town and near-
by territories and the interest which will accrue on
said bonds during such construction and so much of
six months thereafter as may be necessary. ?ny
action or proceedings covering the validity of
said resolution must be commenced within thirty days
after the publication of this notice.
R. C. Yohn
Town Clerk
Councilman moved that unanimous consent be
given for mmediate c sideration of and action on said resolution
which motion was seconded by Councilman and
upon the motion being put to vote the following vote was re-
corded: .yes: Mayor Ruge and Councilmen Gaston, Bennett,%(amper,
Stimpson, and Keeble; Nays: None. The mayor thereupon declared
that the motion for unanimous consent for immediate consideration
of and action on said resolution had been unanimously carried.
Councilman .� thereupon moved that the said reso-
lution be finally adopted, tivhich motion was seconded by Council-
man and upon said motion being put to vote
the following vote was recorded: .eyes: Mayor Ruge and
Councilmen Gaston, Bennett, tramper, Stimpson and Keeble; Nays:
None. The mayor thereupon announced that -the motion for adoption
of said resolution had een animously carried.
Councilmen troduced the following
resolution which was read to the meeting:
a
-30-
BE IT RESOLVED by the Town Council of the
Town of Fairhope, Alabama, that Bank of Fairhope
in the, Town of Fairhope is hereby appointed de-
pository of the Gas System Gross Revenue Account,
the Gas System Operation and Maintenance Fund, the
Gas System Depreciation Fund and the Gas System
Surplus Fund, all of which funds were created in
the resolution adopted by the to-v, council on this
date authorizing the issuance of Gas System Revenue
Anticipation Bonds of the Town of Fairhope to be dated
August 1, 1946.
BE IT FURTIPR RESOLVED by said town council
that any and all moneys at any time on deposit
in the said Gas System Operation and Maintenance
Fund and the said Gas System Surplus Fund may be
withdrawn at any time and from time to time, for
the purposes for which said funds were respectively
created, by checks, vouchers or drafts signed by
the town treasurer and mayor of the town; Said
bank is hereby authorized, until further notice
to it by certified copy of a resolution adopted by
the town council and delivered to it, to honor any
such checks, vouchers, or drafts when so signed,
regardless of the person or persons to whom the
same may be billed.
Councilman moved that unanimous consent be given
for immediQte consideration of and action on said resolution
which motion was seconded by Councilman and
upon the motion being put to vote the following; vote was re-
corded: Dyes: Mayor Ruge and Councilmen Gaston, Bennett,
Kamper, Stirapson, and heeble; Nays: None. The mayor thereupon
declared that the motion for unanimous consent for immediate,
consideration of and action on said resolution had been unani-
mously carried. Councilman Ap'" (thereupon moved that
the said resolution be f'nally adopted, which motion was
seconded by Councilman 4k� - and upon said
motion being put to vo the following vote was recorded: Ayes:
Mayor Ruge and Councilmen Gaston, Bennett, tramper, Stimpson and
Keeble; Nays: None. The mayor thereupon announced that the
motion for adoption of said resolution had been unanimously carried.
0.0_4"63�___ntroduced
Councilman the following
resolution which was read to the meeting:
s
-31-
BE IT RLESOLVED by the Town Council of the
Town of Fairhope, Alabama, as follows:
(1) The proceeds which will accrue to the
town from the sale of the Gas System Revenue
Anticipation Bonds of the town to be dated
August 1, 19462 shall be deposited by the town
treasurer in a special account in The Idierchants
National Bank in Mobile, .Alabama, which bank is
a member of the Federal Reserve System. Said
bank is hereby designated as depository for said
special account. Said bank shall not be required
to give any security for any deposits made in said
special account and it is hereby authorized, until
further notice to it by a certified copy of a
resolution adopted by the town council and delivered
to it, to pay out any moneys on deposit in said
special account on checks signed 'by the mayor of
the town without further inquiry on the part of
said bank and regardless of the payee of such checks.
Said bank shall be fully protected in making disburse-
ments against checks so drawn.
(2) The mayor is hereby authorized and empowered
to draw checks on said special account from time to
time in such amounts and payable to such persons, firms
or corporations as he may deem necessary to pay the
obligations incurred by the town in connection with the
authorization and sale of the said bonds, to pay into
the Gas System Bond and Interest Redemption Fund of
the town an amount sufficient to pay the interest which
will u ccrue on said bonds during the construction of
the gas distribution system of the town and during so
much of six months after completion of such construction
as may be necessary to make good any deficit in the
payments required to be made into said Gas System Bond
and Interest Redemption Fund during said period, and as
he may deem necessary to consum_:,ate the construction and
equipment of the said system in accordance with the
plans and specifications therefor.
Councilman Z4 ✓ moved that the rules be suspended
and unanimous consent be given for immediate consideration of
and action on sai resolution which motion was seconded by
Councilman -"d upon the motion being put to
vote the following vot vras recorded: Byes: ILayor Ruge and
Councilmen Gaston, Bennett, Xamper, Stimpson and Keeble;
Nays: None. The mayor thereupon declared that the motion for
unanimous consent for immediate consideration of and action
on said resolution had been unanimously carried. Councilman
Ike,.e_c�tj thereupon moved that the said resolution
fin ly adop ed, which motion was seconded by Councilman
and upon said motion being put to vote
-32-
the following vote was recorded: ;ryes: Mayor Ruge and
Councilmen Gaston, Bennett, Kamper, Stimpson and Feeble;
Kays: None. The mayor thereupon announced that the motion
for ,.do-otion of said resolution had been unanimously carried.
The meeting was on motion duly made, seconded and
carried thereupon adjourned to August 21, 1946, at 7:30 o'clock,
P.112.
or
Town Clerk