HomeMy WebLinkAboutCHAPTER #96All 0RDiNAiqCE AT2Tili0RIZING Ti]t~ ISSUANCE OF
$214,V27o35 REFUIfDING BOI~H)$ OF THE CITY OF
SEBASTIAN, FLORIDA, FOR THE PURPOSE OF
REFUNDING A LIKE AMOUNT OF VALID OUTSTAND-
ING BONDED INDEBTEDNESS OF SAID CITY AND
PROVIDING FOR THE MANNER OF ISSUANCE AND
PAlq~E NT THEREOF.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
SEBASTIAN, F~0RIDA:
Section 1. That the City Council has ascertained
and determined:
A. That there is outstanding valid bonded in-
debtedness of the City of Sebastian, amounting ~n the.ag-
gregate to $214, 727. 35, consisting of the bonds described
below and unpaid interest accrued thereon to July 1~1939~
and unpaid judg~uents against the City on some of said bonds
and interest, all of said bonds being in the denomination of
$1,000 and bearing interest at 8% per annum, payable semi-
annually:
$34~000 Light and Ice Plant Bonds, part of an authoriz-
ed issue of $80,000~ dated September l~ 19~,
the outstanding bonds of said issue being num-
bered, and maturing on September I of each
year, as follows: No. 5 in 1930; Nos~ ll to
40, inclusive, two bonds in each of the years
1~$8 to 1950~ inclusive; No~ 48 in 1~54; Nos~
49 and 50 in 1955.
$81,000 Street Improvement Bonds, Series 9298 A, part
of an authorized issue of $1~0,000, dated Octo-
ber l, 1926~ the outstanding bonds of said
sue being numbered, and maturing on October 1
of each year, as follows: Nos. 3Z to 46 in
1930; Nos. 47 to 52 inclusive and 58 to 60, in-
clusive, in 19~1; Nos. 61 to 74, inclusive, in
1932; Nos. 75 to 88, inclusive, in 1933; Nos.
89 to 91, inclusive, and 97 to 102, inclusive,
~n lg34; Nos. 103 to 113, inclusive, in
Nose 120, 121, and 123 to 130, inclusive, in
1936e
$12,000 Sidewalk Bonds, Series 92~8 B, part of an au-
2horlzed issue of $29,800, dated October 1,1~26,
the outstand~n~ bonds of said issue beln~ n~-
bered 13 to 24, inclusive, and maturing In
e~ical order, t~ee bonds on October 1 of each
of the years 1931 to 1934, ~ncluslve,
$30,000 ~treet Imp~ovemen2 Bonds, Ser~es 9298 C, part of
am authorlzed ~ssue of $56~000~ dated November
15, 1927~ the outstanding bonds of said issue
being n~bered~ and maturing on November 15 of
each year, as follows~ Nos. 15 to 20, inclu-
sive, in 1931; Nos. 21 and ~A to ~6, Inclustve~
~n 1932~ Nos. 27 to 82, ~nclusive, ~n 1933~
Nos. ~3 to 38, ~nclusive, ~n 1984~ Nos.
44, lnclusive~ ~n 1935; NOse 45 and 46 ~n 19~6.
B. T~t the amount of interest accrued to July
193~ on the Electric Ligh2 and Ice Plant Bonds above des-
cribed ls 2he sum of $7,471.1~, making the total outstanding
indeb~edness on said bonds as of ~uly 1, 19~, the s~ of
$41,471.13, of which a~unt the sum of $8,261.13 ts now In-
cluded in a Judgmen~ against the City on some of said
debtedness.
C. T~t the aggregate ~ount of ~nterest acc~ed
~o July 1, 1939, on ~he Street Improvement Bonds, dated Oc-
tober 1, 19~6, the Sidewalk Bonds, dated October 1, 1926, and
the ~treet Improvement Bonds, dated November 15, 19~, above
described, is the $~ of $50,256.22~ making ~he total out-
standing indebtedness on said bonds as of July 1, 1939, the
sum of $173,286.22, of which amount the sum of $166,~5~.~2 is
now included in a judgment against the City on some of aa. id
indebtedness.
D. That all of the bonded indebtedness above des-
cribed in the aggregate amount of $214,797,$5 constitutes
Valid and binding obligations of the City of Sebastia~ incu~-
Pad prior to November 6, 1554, for the pa~ent of which the
faith and credit of said City are pledged~ and all property
tn said Ctty~ except such property as would be exempt from
taxation under the provisions of the Constitution and stat-
utes of Florida which were In force at the time of the c~ea-
tlon of said indebtedness, Is subject to the ~ of ad va-
lorem taxes, without limit of rate or ~ount, for the pa~ent
of the interest on and principal of said bonds.
E. T~t all of said outstanding indebtedness la
past dua~ and the City ts without funds with which to pay t~
$~e amd will be unable in its present financial condition t9
~ke provision for such pa~ent~ and that therefore tt ls
necessary mhd fo~ the best interests of the City and its tax-
payers to provide for the refunding of said bonded indebted-
ness by the tssu~ce of refunding bonds extending the time of
pa~ent of, and bearing a lower rate of interest t~n~ the
outstanding bonded indebtedness.
Section 2, That for the purpose of refunding aa
of July 1, 19~9, the bonded indebtedness described in Section
1 hereof, there be issued pursuant to the provisions of Chap-
ter 1B?~2, General Laws of Florida, Acts of 19~1, bonds of
said City in the principal amount of $~-14,727.~8, to be des-
ignated "Refunding Bonds Issue of 1959". $209,000 of said
refunding bonds for the purpose of refunding the entire prin-
cipal amount of said outstanding bonded indebtedness aggrega-
ting $187,000, and $82,000 of interest accrued on said in-
debtedness to July i, 19~9, shall be issued in Coupon form~
in the denomination of $1,000 each, and Shall be numbered
1 to ~.09, inclusive. The bonds to be issued under the auth-
ority of this resolution for the purpose of refunding the
malnder of interest accrued on the bonded indebtedness des-
cribed in Section 1 hereof to July 1, 19~9, ~ount~ng to
~8,~BV.~8, $~ll be issued ~n such denom~natlona aa ~y be
necessary and convenient to permit the exc~n~e thereof fo~
like amount of the coupons or other evidence of such unpaid
interest. ~ald $~,727.3~ of bonds may be issued either in
coupon form or registered fo~ as the C~ty Council ~y
te~lne. Any of such bonds which shall be issued In coupon
fo~ ~11 be n~bered consecutively beginn~ng w~th ~10, and
any of such bonds which may be issued In registered fo~
$~ll be n~bered consecutively' from R 1 upwardae
Section ~. All refunding bonds authorized by this
and become due July 1, 1969,
~rdi~a~oe ~hall be da~e~ ~uly 1, 19~/and shall heap
eat payable semi-annually on January 1 and July 1 of each
year at one per cent~ per ann~ from the date of the bonds
to July 1, 1941; thereafter at the ~ate of one and one-half
per cent~ per annum to July 1, 1942; thereafter at the ~ate
of two per centum per ann~ to July 1, 1944; thereafter at
the ~te of two and one-half per cent~ per annum to July 1,
1949; thereafter at the rate of t~ee per cent~ per ann~
to July 1, 1~54; thereafter at the rate of fou~ per cent~
per annum to July 1, 195~, and thereafter at the rate of five
per cent~ per ann~ until pa~d. ~atd bonds shall be ~e-
deemable at the option of the City on any interest pa~ent
date prior to maturity at par plus accrued interest at the
rate prevailing at the time of redemption. I~ the event
that the City determines to exercise the r~ght to redeem
said bonds such right shall be exerclse~ In the following
manner: The bonds s~ll be drawn by lot by the governing
4
authority of the City from all of the bonds then outstanding.
Notice of redemption specifying the bonds to be redeemed
shall be filed at the place where the principal and interest
of the refunding bonds are payable at least thirty days prior
to the date fixed for redemption, and shall be published once
not less than thirty days prior to said date in a ~ewspaper
having general circulation in Indian River County, ~lorida,
and in a financial journal published in the City of New Yorke
Said refunding bonds shall be signed by the Mayov, counter-
signed by the President of the City Council, and attested by
the City Clerk, and shall have the seal of the City affixed
thereto. The interest coupons to be attached to all coupon
bonds of said issue shall bear the fac simile signature of
said officers.
~ectlon A. Said refunding bonds shall be in sub-
stantially the following form:
Bond
UNITED STATES OF ANERICA
STATE OF FLORIDA
COUNTY 0F INDIAN RIVER
$1,000
CITY OF SEBASTIAN
REFUNDING BOND
ISSUE OF 1939
The City of Sebastian, !~ the County of Indian Riv-
er, State of Florida, hereby acknowledges itself to be indebt-
ed, and, for value received, hereby proi~'~ilses to pay to the
bearer the principal sum of
ONE Tt~0'USA~D DOLLARS
on the first d.a~j' of July, 1~6~, with the option of prior re-
demotion as hereinafter provided, and to pay interest o~ said
sum, as hereinafter specified, from the date hereof until
paid or until called for redemption, payabie semi-annually on
the first day of January and the first day of July of each
year, such !nter~st to the maturity' date of this bond to be
paid upon presentation and surrender of the attached coupons
as they severally become due. Both pr!~?cZpal and interest
of this bond are payable in lawfu]. ~uoney of tke United States
of America at the 'Guaranty Trust Company', in the City and
State of New York; and for the prompt payment of this bond~
aud fmterest thereon, as the same become due, the full faith~
credit and tsxlng power of said City' of Sebastian, Florida~
s~.e hereby ir~evocably pledged to the same extent and with
like force and effect as the same wor. e pledged for pay~nent of
the iudebtedness refunded hereby.
Interest is payable on this bond Ir~ accordance with
the interest couoons hereto attached at the rate of one per
cent. (l~) per annum from date hereof to July' l, 19~1; at the
rate of one and one-half per cent. (1-1/~) per ann~ from
and including July l, 19~l to July l, 19~S; at the rate of
~nc..~d-r:,g July 1~ 194:2
two per cent~ (2~) per annum from and" ~" ~
'to Ju!¥ l, 1.944; aD the rate of two and one-half per cent.
(2-1/2~) per annum from and i~c]_udi~:g July l, 1944 to July l~
1949; at the rate of t~.ee per ce~t. (5~) per annum fro~:and
fncl~:ding July l, !949 to July' l, 1954; at the rate of four
per cent. (4%) ~er annur~ frcm and fnc!l.'Id!~''~' ~]"~
_~ ...... o 1~ 1954 to
~u1~' Z; 1959; and at tho rate'~of five '.er cent. (5%) there-
after un,il 'b~'zis oond is paid.
In the eve. nt of a default in thc payment of inter-
est on the bo~ds of the issue of which th!s bond is
the !~over~ing authority of the City shall be accorded a per~.
iod of six (6) m~nths after its happenlng in which to cor-
rect the said default, and upon failure, inability or re-
fusal of said governlag authority to do so within that per-
lcd, and upon the declaration in writing filed with said
City t~rough its City Clerk bN the holders of at least forty
per cent. (40~)in principal amount of the Refunding Bonds of
the issue of which th~s bond Rs one outstandir~g upo~ the hap-
pentng of such default said Refunding Bonds shall, at the op-
tiou~ of the respective holder~, revert to and thereafter bear
the original six per cent. (O~) per a~':um interest rate borne
by the outstanding bond in exchange for which said Refu~-~di~g
Bond was issued, and in the case of Refunding Bonds issued to
refund interest accrued on outstanding bonds, each such Re-
fu,~diug Bond shall reve~.t to and thereafter bear the original
six per cent. (6y~) per annura interost rate borne by the bonds,
accrued irterest or~ wh. ich was refunded by the issuance of said
Refunding Bond, but such reversion shall be effective only
from the date to which interest had been ~::ald on said Refund-
ing Eo'nds prior to the date of the fillng of the declaration
of intention to exercise such option, and said City agrees
that if the right to such higher interest rate accrues~ as
herein prov~ded~ at the option of the hol~ers of said bonds
the hkgher rate of ~nterest w~ll be ~v~denced e~ther by a
substitution of new bonds and coupons bearing such h~gher
interest, or by a substltution, in place of the existing
coupons, of new coupons bear~.n~ such higher rate~ such new
coupons to be attached to the then exlst~ng bonds; provided
that as to any of said i~efuDdlng Bonds the holders of which
did not file declarations as a part of the initial and requir-
ed percentage, such reversion shall, only be effective as of
the last semi-annual interest payment, da~e prior to the ftl-
ing of soch declaratzon~.
Tb...e right f's. hereby reserved to call and redeem
all or any i?art of the issue of bonds of.whlch this bond is
one on any interest payment date prior to maturity at par
pi. us accrued interest at the rate then prevailing. In the
event of the exercise of such right to call, not less than
thirty days notlce of such redemption will be given by filing
and pub.]..~'.c~ticn as previewed by the ordinance of the City
Council authorizing the issuance of the issue of bonds of
which this bo~-~d is one~ and said bond~, when so called~ shall
cease to bear interest on s~ch rederaption date~ provided that
adequate, funds for their redemption shall have been provided
and set aside by said City for such p-orpose.
Thls bond is one of an issue of Refunding Bonds of
like date and ma'turlty, limited in aggregate amount to
IT IS }~EREBY CERTIFIED AND RECITED that this bond
· is issued under the authority of and, in full compliance with
the General Refunding Act of 1951, being Chapter 15772~ Gen-
eral Laws of Florida, ~9~1, and pursuant to an ordinance duly
adopted by the City Council of the City of Sebastian~ Florida~
and is issued in exchange for and as a continuatlon~ exten-
sion, m~rger and renewal of a llke a~uount of valid subsisting
bonded ind~:~btedness of said City incurred prior to November
~, 1954~ and outstanding at the date of the passage of said
ordlnance, and for the p~r5ose.~ .~ of r~fundzng said indebted-
ness; and that all acts, conditions and things required to
happen, exist and be performed, precedent to and in the
suance of this bond~ have happened~ exist and have 'been per-
formed in due t!~e, form and manner as required by law~ and
that neither the ~ndebtedness which ls refunded~ nor tho Is-
sue of bonds of whlch th~s bond is one, together with all
other indebtednesa of the said .City, exceeds any limitation
prescribed by the Constitution or statutes of the State of
Florida, and that, before the issuance of the issue of bonds
of who. cb. thls bond is one, provision has been made for the
levy and collection of a direct annual tax upon all property
in the City of ~ebastian, e~.ceot or~ly such property as would
be cy~empt from taxatlou under the ]?rovls].ons of the C'onstitu-
tfon and laws of ?_orida wkich were ~u force and effect at
the time of the creation of the ~nd~btedness refunded ~'~ereby~
which tax shall be in ~ounts sufficient to pay the interest
upon the issue of i~efunding Bo~d.s of which this bond is one
as the same shall become due and to create a sinking fund for
payment of the principal thereof at maturlt~. The right
r~servcd to levy such. taxes as ~a7 lawfully be im?osed for
tLe pa~me~t of thls bond u]2on all property witLin the bound-
aries of the City as they. existed at the tt~e of the issuance
of the bonds hereby refundsd, which is not now within the
isting territorial limits of thc City. All rights and
remedies which were a~ai!ab]_e for t['~e su~:~:,ort' and enforcement
of the bonded indebt~dness refunded by tb~s bond shall be
available for the sup[i_:o~t and enforcement of th~_s bond.
IN WITN[~[,:SS 'f,-B~i'IiEOF the City of Sebastian, in the
County of Indian F.~ver, Florlda~ has caused th~s bond to be
signed by ~ts Mayor~ countersigned by the President o~ the
Cit'y Council and attested b~' the C~ty Clerk~ and has caused
the cor~orate seal of sa~d C~ty to be 'affixed hereto~ and the
interest coupons berets attached to be execrated with the fao
simile signatures of the said offfce~s~ a],l as of the first
day of July,
Co~ntersagmed:
Nayor
Attest:
Preside-nt of the City Council
City Clerk
Seal
(FORI~5 OF C 0bPON FOR SEI~I-ANNOAL iYTEREST
On the first day of , 19 ~ the City of
Sebastian, in the County' of Indian River, State of Florida,
will pay to tbe bearer at the 0varanty Trust Company in the
City of ]li-ew York~ the sum of
dollars being the: tnterestlthen due on its Refunding Bond,
Issue of 1939, dated july l, 1939~ No. ~ unless said
boud shall have been theretofore called for z'edemotion.
NIay0¥
Countersigned:
Attest:
Presiden~ of City Cou~c~l.
(FOR~I FOR VAIIDATION CE~RTIFICATE)
Validated. and confirmed by decree of the Circuit
Court of the Nt~h~ .... Judicial Circl~t of Florida, in and
for Indian River County, rendered on the day of
19 ·
Clerk of the Circuit Court of
Indian River County, Florida.
Bond NO. R-
UNITED STATES OF AMERICA
STATE OF FLORIDA
COUNTY OF LNDIAN RIVER
CITY OF SEBASTIAN
REFUNDLNG BOND
ISSUE OF 1939
The City of Sebastian, in the County of Indian
River, State of Florida, hereby acknowledges itself to be
indebted, and, for value received, hereby promises to pay
to the registered owner hereof the principal sum of
on the first day of July, 1969, with the option of prior re-
demption as hereinafter provided, and to pay interest on
said sum, as hereinafter specified, from the date hereof
until paid or until called for redemption, payable semi-
annually on the first day of January and the first day of
July of each year, Both principal and interest of this
bond are payable in lawful money of the United States of
America at the Guaranty Trust Company, in the City and
State of. New York; and for the prompt payment of this bond,
and interest thereon, as the same become due, the full faith,
credit and taxing power of said City of Sebastian, Florida,
are hereby irrevocably pledged to the same extent and with
like force 'and effect as the same were pledged for payment
of the indebtedness refunded hereby.
Interest is paya01e on this bond at the rate of
one per cent. (1%) per annum from date hereof to July~ l~,
1941; at the rate of one and one-half per cent. (1-172%)
per annum from and including July l, 1941 to July l, 1942;
at the rate of two per cent. (2%) per annu~ from and includ-
ing July l, 1942 to July l, 1944; at the rate of two and
one-half per cent. (2~172%) per annum from and including
Jul~y l, 19~4 to July l, 1949; at the rate of three per cent.
(3%) per annum from and including July l, 1949 to July l,
1984; at the rate of four per cent. (4%) per annum from and
including July l, 1954 to July l, 1989; and at the rate of
five per cent. (8%) per annum thereafter until this bond
i s paid.
In the event of a default in the payment of inter-
est on the bonds of the issue of which this bond is one,
the governing aUthority of the City shall be accorded a
period of six (6) months after its happening in which to cor-
rect the said default, and upon failure, inability or re-
fusal of said governing authority to do so within that period,
~nd upon the declaration in writing filed with said City
through its City Clerk by the holders of at least forty per
cent. (40%) in principal amount of the ~efundlng Bonds of
the issue of which this bond is one outstanding upon the hap-
pening of such default said Refunding Bonds shall, at the op-
tion of the respective holders~, revert to and thereafter bear
the original six per cent. (6%) per annum interest rate
borne by the outstanding bond in exchange for which said Re-
funding Bond was issued, and in the case of Refunding Bonds
issued to refund interest accrued cn outstanding bonds, each
such Refunding Bond shall revert to and thereafter bear the
original six per cent..(6%) per annum interest rate b~rne by
the bonds, accrued interest on which was refunded by the
issuance of said Refunding Bond, but such reversion shall
........... II ....... - .............. t_-
Section ~, That for the payment of ~he principal
and interest of all of the refunding bonds which may be is-
sued pursuant to this ordinance, the falth,~edit and taxing
power of the City of sebastian, Florida, are hereby irrevo-
cably pledged to the same extent and with like force and ef-
fect as the same were pledged for the payment of the indebt-
edness refunded by said bonds, and the City Council of said
City hereby covenants and agrees with the holders of said
funding bonds that the City Will make prompt payment of the
same when due.
Section 6. That for the purpose of adequately
providing for the payment of the interest on the refunding
bonds herein authorized to be issued and for the creation of
a sinking fund for the ~etirement of said refunding bonds~
the City of Sebastian hereby agrees with the holders of said
refunding bonds t~t for its fiscal year 193~ and fo~ each
and eve~ subsequent fiscal year until all principal an~ in-
terest of the ~funding bonds ~ve been paid or retlred~t will
le~ ad valorem taxes designed to be sufficient to raise a
a~ at least equal to the interest due and to become due in
such fiscal year on the assumption t~t fifty per cent~ of
the amount of taxes levied will be collected in such fiscal
year. if at the time for ~king the tax le~ for any fis-
cal year the collections for the preceding year under the
le~ made for such preceding year (not including any eSti-
mate of future collections) shall be less than the amount of
interest accruing during such preceding year, the le~ then
to be made shall be at Such ~ate as ~11 be designed to
yield twice the amoun~ of interest accruing d~lng the fiscal
year for which It la ~de in the event the percentage thereof
collected shall not exceed the percentage actually collected
for such preceding fiscal year. That is to say, the tax
levy for each 'year ~. for the pu~ose of providing for
the payment of the principal and interest of said bonds
shall be at such rate upon the assessed valuation of taxable
property in said City as shall p~e~ce not less than twice
the amount of interest accruing during such year; and if for
any year the actual collection was not equal to the amount of
interest so accruing,the rate of levy for the next year shall
be in the ratio that twice the total interest bears to the
amount of taxes actually collected for t'he preceding yea~.
Such taxes shall be levied and computed upon the extended and
fully equalized valuation of all property subject to taxation
within the City except only such property as would be exempt
from taxation for the payment of the-principal and interest
of the bonded indebtedness refunded by the bonds authorized
by this ordinance under the provisions of the Constitution
and statutes in force at the time of the incurring of said
lndebtedness~ Ail taxes levied for the purpose of paying
the principal and interest o.f the refunding bonds herein au-
thorized shall be payable only in lawful money of the United
States of America~
That any and all assessments applicable to the pay-
ment of any' of the outstandl~g bonded indebtedness hereby au-
thorized to be refunded which may be collected and become
available for the payment of refunding bonds issued in ex-
change for such outstanding bonded indebtedness or evidences
of interest accruals thereon shall be put into the interest
and 81nklng Fund account for such refunding bonds and shall
be earmarked as being applicable only to the payment of the
interest and principal of such of said refunding bonds as are
exchanged for outstanding bonds or interest accruals to July
1, 19~9, which are now secured by such special assessments in
addition to ad valorem taxese
Section 7. if at any time there shall be $5,000
or more in the refunding bond Interest and Sinking Fund ac-
count over and above the amount of the next interest require-
ment, such fund shall be used by the City to purchase refund-
ing bonds of said issue in the following manners The C~ty
shall designate a date on which it will receive sealed ten-
ders of the refunding bonds and act upon such tenders in
open session. Notice of the time and place of receiving
such tenders shall ~e published once not less than tea days
nor more than thirty days before the date designated for the
receipt of tenders in a newspaper of general circulation in
indian River County, P~lorlda, and in a financial Journal pub-
lished in the City of New York. The entire available sur-
plus for the retirement of the bonds Shall be used to pur-
chase bonds offered by such tenders at the lowest price;
provided, however, that if the City is dissatisfied with any
or all tenders thus received it shall have the option to re-
Ject any or all of same, and, within thirty-one days after
such rejection it shall readvertise for additional sealed
tenders in the same manner as heretnabove provided~ and shall
purchase the bonds offered at the lowest price upon such
advertisement, absorbing all surplus funds available ~n the
Refunding Bond Interest and Sinking Fund account, and, pro-
vided further that following each respective tender date said
City may privately purchase additional bonds with subsequent
surplus accumulations as long as private purchases may be
made upon such basis as will show an equal or higher income
yield than on such preceding tender date. In the event that
no offerings can be obtained at or below the callable price,
the City shall proceed to call bonds by lot as hereinbefore
provided.
Section 8. That all o~ the refunding bonds herein
authorized to be issued which shall at any time be outstand-
lng are hereby declared to have the same security and sources
of payment aa the indebtedness refunded thereby, and said
funding bonds shall constitute a continuation, extension,
merger and renewal of the indebtedness refunded, and only
such proper~y as was exempt from taxation under the laws in
force at the time the original indebtedness was ~ncurred
shall be exempt from taxation to pay the ~nterest upon and
principal of said refunding bondse The City reserves the
right to levy such taxes as may lawfully be imposed for the
payment of such refunding bonds upon all property within the
boundaries of the City as they existed at the time of the
issuance of the bonds refunded, which is not within the ex-
tstlng territorial limits of the Ctty~ Ail rights and rem-
edies which were available for the support and enforcemen~
of the bonded indebtedness refunded by the bonds authorized
by this ordinance shall be available for the support and en-
forcement of said refunding bondse
Section 9. That in the event of a default in the
payment of the ~nterest on the bonds authorized by this
dtnance~ the Cl~y Ooumc~l shall be allowed a period of
months after the happening of such default in whlc~ to cor-
rect the same, and upon failure, ~nab~.lity or refusal to do
so within that period and upon the declaration in writing
filed with the City through its City Clerk by the holders of
at least forty per centum in principal amount of the refund-
lng bonds outstanding upon the happening of such default,
the said refunding bonds shall at the option of the respec-
tive holders .revert to and thereafter bear the orfgln~l six
per centum per annum interest rate borne by the outstanding
bond in exchange for which said refunding bond was issued,
and in the case ef refunding bonds issued to refund interest
accrued on outstanding bonds, each such refunding bond shall
revert to and thereafter bear the original six per centum
per annum interest rate borne by the bond accrued interest
on which was refunded by the issuance of said refunding bond~
but much reversion shall be effective only from the date to
which interest had been paid on said refunding bonds prior to
the date of the filing of the declaration of intention to ex-
ercise much option, and the City hereby agrees that if the
right to much higher rate of interest accrues, as herein pro-
vided, at the option of the holders of such bonds the higher
rate of interest will be evidenced either by a substitution
of new bonds and coupons bearing such higher interest or by a
substitution in the place of the existing couPons of new cou-
pons evidencing such higher rate, such new coupons to be at-
tached to the then existing bonds; provided that as to any
and all said refunding bonds the holders of which did not
file declaratIonm as a part of the initial and required pro-
cedure such reversion shall only be effective as of the last
semi-annual interest payment date prior to the filing of such
declarations.
Section lOc That if any error shall have been
made in the description of any of the outstanding bonded in-'
debtedness as met forth in Section 1 of this ordinance, such
error shall be deemed' to be immaterial, provided the refund-
tng bonds shall be delivered in exchange for a like amount of
bonded indebtedness of said City, and that the amount of re-
funding bonds issued under this ordinance does not exceed the
amount of outstanding bonded indebtedness surrendered in ex-
change t,herefor,
Section 11. That the City Attorney bs.~and he here-
by ia authorized, and directed to institute appropriate pro-
ceedings in the Circuit Court of the Ninth Judicial Circuit
of Florida in and for Indian River County for the validation
of maid refunding bonds, and the Mayor is hereby authorized
to verify any pleadings in such proceedings.
Section 12. That after said bonds have been valid-
ated they shall be executed as hereinbefore provided and
shall be deposited with a bank or trust company to be hereaf-
ter designated by the City Council with instructions to ex-
change them for the bonds and other evidences of the bonded
indebtedness described in Section 1 hereof, and authorized to
be refunded, on the basis of par for par and to cancel all
outstandin/~ bonds and coupons received In exchange for the
refunding bonds and return them to the City Clerk with a re-
port indicating the particular refunding bonds delivered in
exchange therefor, In the case of refunding bonds deliver-
ed for the purpose of refunding outstanding bonded indebted-
ness now represented by Judgments on such indebtedness the
refunding bonds shall be delivered in exchange for a release
or satisfaction of such judgments,
Section 1~, That if any clause, section or pro-
vision of this ordinance or of the refunding bonds hereby au-
thorlzed be declared unenforctble by any court of final Jur-
isdiction, such declartion shall not affect or invalidate the
remainder thereof, and, if any of the refunding bonds hereby
authorized be adjudged illegal or unenforclble, the holders
thereof shall be entitled to be surrogated to the rights of
the holders of the bonds or other, evidence of the bonded in-
debtedness provided by this ordinance to be refunded~ and as
such enforce their claims for payment,
Section 14, That all ordinances, resclutlons or
parts of ordinances or resolutions in conflict herewith are
hereby repealed,
~ection 15, This ordinance shall take effect im-
mediately upon its passage~
hereby certify that the foregoing Ordinance, being
Chapter No. 96, was duly passed by the City Council of the City
of Sebastian, Florida on the 27th day of May, 1940.
To the Mayor of the City of Sebastian, Florida:
Presiden~ c'i%y ~o~n~cil,
City of Sebastian, Florida.
Attest ~ ,~/.-
~t~y °Ie~r~k,-City o~ Sebas~i~,--
Florida.
I hereby certify that the foregoing Ordinance, being~
Chapter No. 98, was duly passed by the City Council of the City
of Sebastian, Florida the 27th day of Nay, 1940.
C[~y Cler~(~oIe ~-h~ Ct~y o~ ~ebastlan,
Florida.
The foregoing Ordinance, being Chapter No. 96, approved
by me this 27th day of May, 1940.
Mayor, ~i~y o~ ~*mbas~ian, Florida