t_1i=;1J[:In 1~IiJ c'abr4%
i=i4"-'GFO W'i t_ ClF~ CCi N'T ljf~YC:"flli=t L. OL+L.IC3F~i-F~i:ON FOk (-'LIhiCM4-iSE: OF~
j='EF::301~j6ai._ ;='i1CJ1='icNl'`;' Ihd TFiE: RNIiUhl7 L.11= %4'559 @4~k'~„ ihiZi
lJn th:i.s the :i;~~'th day o~F C)ctober' 1`a `339 ~.tpon motion made by
i~ammisslcrner- Fiolek,_tsrp, seconded by [;ommis=.ioner i_.ehman, the
C:o~.irt unaniwously approved by a vote of 5-0-0, to apF;,^c:a'.~e the
cnnstracti_~al ot,l.igation for p~arc_i~~ase of per'aonal. pr'oF~erty in
the amo~_int of ~k`_~;,4~~ili.~~ as SLI~Rlltted to tt-,e Go~.irt.
CERTIFICATE FOR ORDER
STATE OF TEXAS
COUNTY OF KERR
I, the undersigned County Clerk of Kerr County, Texas (the "County"), hereby certify as follows:
1. The Commissioners Court of the County convened in REGULAR MEETING ON THE 12TH
DAY OF OCTOBER, 1993, at the County Courthouse, and the roll was called of the duly constituted officers
and members of the County, to wiC.
W.G. "Sill" Stacy, County Judge
Ray Lehman, Precinct 1
T.H. "Butch" Lackey, Precinct 2
Glenn K. Holekamp, Precinct 3
Bruce Oehler, Precinct 4
and all of said persons were present, except the following absentees: ~ thus
constituting a quorum. Whereupon, among other business, the following was transacted at said Meeting: a
written
ORDER AUTHORIZING THE ISSUANCE OF KERR COUNTY, TEXAS PUBLIC PROPERTY
FINANCECONTRACTUAL OBLIGATIONS,SERIES 1993,AUTHORIZINGTHEEXECUTION
OF A PAYING AGENT/REGISTRAR AGREEMENT AND OTHER RELATED DOCUMENTS
was duly introduced for the consideration of said Commissioners Court and read in full. It was then duly
moved and sewnded that said Order be adopted; and, after due discussion, said motion carrying with it [he
adoption of said Order prevailed and carried by the following vote:
AYES: ~, ABSTENTIONS: Q NOES: Q
2. That a true, full and correct copy of the aforesaid Order adopted at the Meeting described in the
above and foregoing paragraph is attached to and follows this Certificate; that said Order has been duly
recorded in said Commissioners Court's minutes of said Meeting; that the above and foregoing paragraph is
a true, full and correct excerpt from said Commissioners Court's minutes of said Meeting pertaining to the
passage o[ said Order; that the persons named in the above and foregoing paragraph are the duly chosen,
qualified and acting officers and members of said Commissioners Court as indicated therein; that each of the
officers and members of said Commissioners Court was duly and sufficiently notified officially and personally,
in advance, of [he time, place and purpose of [he aforesaid Meeting, and that said Order would be introduced
and considered for passage at said Meeting, and each of said officers and members consented, in advance, to
the holding of said Meeting for such purpose, and that said Meeting was open to the public and public notice
of the time, place and purpose of said meeting was given, all as required by Chapter 551, Texas Government
Code.
SIGNED AND SEALED [he 12th day of October, 1993.
Patricia Dye, County Clerk
Kerr County, Texas
(SEAL)
ORDER AUTHORIZING THE ISSUANCE OF KERR COUNTY, TEXAS PUBLIC
PROPERTY FINANCE CONTRACTUAL OBLIGATIONS, SERIES 1993,
AUTHORIZING THE EXECUTION OF A PAYING AGENT(REGISTRAR
AGREEMENT AND OTHER RELATED DOCUMENTS
THE STATE OF TEXAS §
COUNTY OF KERR §
WHEREAS, the Public Property Finance Act, Sections 271.001 - 271.009, Texas Local
Government Code (the "Act") authorizes Kerr County, Texas (the "Issuer") to execute, perform, and
make payments under contracts with any person for the use, acquisition or purchase of personal
property as described in the Act; and
WHEREAS, the Act permits the governing body of the Issuer to execute contracts in any form
deemed appropriate by said governing body in connection with the use, acquisition or purchase of
personal property or the financing thereof; and
WHEREAS, the governing body of the Issuer desires to acquire or purchase personal property
as described in Exhibit A attached hereto, or such other personal property, appliances, equipment,
facilities, furnishings or interests therein, whether movable or fixed, deemed by the governing body
of the Issuer to be necessary, useful and/or appropriate for the purposes of the Issuer (the
"Property"); and
WHEREAS, the governing body of the Issuer deems it appropriate to adopt this Order and
issue the "Contractual Obligations' herein authorized as permitted by the Act.
THEREFORE, BE IT ORDERED BY THE COMMISSIONERS COURT OF KERR COUNTY,
TEXAS:
SECTION 1. RECITALS, AMOUNT AND PURPOSE OF CONTRACTUAL OBLIGATIONS.
The recitals set forth in the preamble hereof are incorporated herein and shall have the same force
and effect as if set forth in this Section. The Issuer's Public Property Finance Contractual
Obligations (hereinafter sometimes called "Contractual Obligations") are hereby authorized to be
issued in the aggregate principal amount of $455,000, FOR THE PURPOSE OF PAYING ALL OR
A PORTION OF THE ISSUER'S CONTRACTUAL OBLIGATIONS TO BE INCURRED IN
CONNECTION WITH THE ACQUISITION OR PURCHASE OF PERSONAL PROPERTY, IN
ACCORDANCE WITH THE PROVISIONS OF THE PUBLIC PROPERTY FINANCE ACT,
SECTIONS 271.001 - 271.009, TEXAS LOCAL GOVERNMENT CODE.
SECTION 2. DESIGNATION. The Contractual Obligations authorized to be issued by this
Order shall be designated as the KERR COUNTY, TEXAS PUBLIC PROPERTY FINANCE
CONTRACTUAL OBLIGATIONS, SERIES 1993.
SECTION 3. DATE, DENOMINATIONS, NUMBERS, AND MATURITIES OF
CONTRACTUAL OBLIGATIONS. Initially there shall be issued, sold, and delivered hereunder fully
registered contractual obligations dated October 15, 1993, in the respective denominations and
principal amounts hereinafter stated, numbered consecutively from R-1 upward, payable to the
respective initial registered owners thereof (as designated in Section 14 hereof), or to the registered
assignee or assignees of said contractual obligations or any portion or portions thereof (in each case,
the "registered owner"), and said contractual obligations shall mature and be payable on February 15
in the years and in the aggregate principal amounts as set forth in the following schedule:
YEAR OF	PRINCIPAL
MATURITY	AMOUNT
1994	$70,000
1995	70,000
1996	75,000
1997	75,000
1998	80,000 ~ )
1999	85,000 /
The term "Contractual Obligations' as used in this Order shall mean and include collectively the
contractual obligations initially issued and delivered pursuant to this Order and all substitute
contractual obligations exchanged therefor, as well as all other substitute contractual obligations and
replacement contractual obligations issued pursuant hereto, and the term "Contractual Obligation"
shall mean any of the Contractual Obligations.
SECrtoN 4. INTEREST. The Contractual Obligations shall bear interest from the dates
specified in the FORM OF CONTRACTUAL OBLIGATION set forth in this Order to their
respective dates of maturity at the rates as set forth in the following schedule:
YEAR OF	
MATURITY	RATE
1994	2.700%
1995	3.300
1996	3.500
1997	3.750
1998	4.000
1999	4.125 ~~
Interest shall be payable in the manner provided and on the dates stated in the FORM OF
CONTRACTUAL OBLIGATION set forth in this Order.
SECTION 5. CHARACTERISTICS OFTHE CONTRACTUAL OBLIGATIONS. (a) Re isp tra_
lion, Transfer, Conversion and Exchange; Authentication. The Issuer shall keep or cause to be kept
at the principal corporate trust office of Victoria Bank & Trust Co., Victoria, Texas (the "Paying
Agent/Registrar'") books or records for the registration of the transfer and exchange of the
Contractual Obligations (the "Registration Books"), and the Issuer hereby appoints the Paying
Agent/Registrar as its registrar and transfer agent to keep such books or records and make such
registrations of transfers and exchanges under such reasonable regulations as the Issuer and the
Paying Agent/Registrarrnay prescribe; and the Paying Agent(Registrar shall make such registrations,
transfers and exchanges as herein provided within three days of presentation in due and proper form.
Attached hereto as Exhibit B is a copy of the Paying Agent/Registrar Agreement between the Issuer
and the Paying Agent/Registrar which is hereby approved in substantially 6na1 form, and the County
2
Judge and County Clerk of the Issuer are hereby authorized to execute the Paying Agent(Registrar
Agreement and approve any changes in the Gnal form thereof.
The Paying Agent/Registrar shall obtain and record in the Registration Books the address of
the registered owner of each Contractual Obligation to which payments with respect to the
Contractual Obligations shall be mailed, as herein provided; but it shall be the duty of each registered
owner to notify the Paying Agent/Registrar in writing of the address to which payments shall be
mailed, and such interest payments shall not be mailed unless such notice has been given. The Issuer
shall have the right to inspect the Registration Books during regular business hours of the Paying
Agent(Registrar, but otherwise the Paying Agent/Registrar shall keep the Registration Books
confidential and, unless otherwise required by law, shall not permit their inspection by any other
entity. The Issuer shall pay the Paying Agent/Registrar's standard or customary fees and charges for
making such registration, transfer, exchange and delivery of a substitute Contractual Obligation or
Contractual Obligations. Registration of assignments, transfers and exchanges of Contractual
Obligations shall be made in the manner provided and with the effect stated in the FORM OF
CONTRACTUAL OBLIGATION set forth in this Order. Each substitute Contractual Obligation
shall bear a letter and/or number to distinguish it from each other Contractual Obligation.
Except as provided in Section 5(c) of this Order, an authorized representative of the Paying
Agent/Registrarsholl, before the delivery of any such Contractual Obligation, date and manually sign
said Contractual Obligation, and no such Contractual Obligation shall be deemed to be issued or
outstanding unless such Contractual Obligation is so executed. The Paying Agent/Registrarpromprly
shall cancel all paid Contractual Obligations or Contractual Obligations surrendered for transfer and
exchange. No additional ordinances, orders, or resolutions need be passed or adopted by the Issuer
or any other body or person so as to accomplish the foregoing transfer and exchange of any
Contractual Obligation or portion thereof, and the Paying AgentJRegistrar shalt provide for the
printing, execution, and delivery of the substitute Contractual Obligations in the manner prescribed
herein, and said Contractual Obligations shall be of type composition printed on paper with
lithographed or steel engraved borders of customary weight and strength. Pursuant to Artic]e 717k-6,
Vernon's Annotated Texas Civil Statutes, and particularly Section 6 thereof, the duty of transfer and
exchange of Contractual Obligations as aforesaid is hereby imposed upon the Paying Agent/Registrar,
and, upon the execution of said Contractual Obligations, the transferred and exchanged Contractual
Obligations shall be valid, incontestable, and enforceable in the same manner and with the same
effect as the Contractual Obligations which initially were issued and de]ivered pursuant to this Order,
approved by the Attorney General, and registered by the Comptroller of Public Accounts.
(b) Payment of Contractual Obligations and Interest. The Issuer hereby further appoints the
Paying Agent/Registrar to act as the paying agent for paying the payment of the principal of and
interest on the Contractual Obligations, all as provided in this Order. The Paying Agent/Registrar
shall keep proper records of all payments made by the Issuer and the Paying Agent/Registrar with
respect to the Contractual Obligations, and of all transfers and exchanges of Contractual Obligations,
and all replacements of Contractual Obligations, as provided in this Order. However, in the event
of a nonpayment of interest on a scheduled payment date, and for thirty (30) days thereafter, a new
record date Łor such interest payment (a "Special Record Date') will be established by the Paying
Agent/Registrar, if and when funds for the payment of such interest have been received from the
Issuer. Notice of the Special Record Date and of the scheduled payment date of the past due
interest (which shall be 15 days after the Special Record Date) shall be sent at least five (5) business
days prior to the Special Record Date by United States mail, first-class postage prepaid, to the
address of each registered owner appearing on the Registration Books at the close of business on the
last business day next preceding the date of mailing of such notice.
(c) In General. The Contractual Obligations (i) shall be issued in fully registered form,
without interest coupons, with the principal of and interest on such Contractual Obligations to be
payable only to the registered owners thereof, (ii) may be transferred and assigned, (iii) may be
converted and exchanged for other Contractual Obligations, (iv) shall have the characteristics, (v)
shall be signed, sealed, executed and authenticated, (vi) the principal of and interest on the
Contractual Obligations shall be payable, and (vii) shall be administered and the Paying Agent/Regis-
trar and the Issuer shall have certain duties and responsibilities with respect to the Contractual
Obligations, all as provided, and in the manner and to the effect as required or indicated, in the
FORM OF CONTRACTUAL OBLIGATION set forth in this Order. The Contractual Obligations
initially issued and delivered pursuant to this Order (to which Contractual Obligations is attached the
Registration Certificate of the Comptroller of Public Accounts) are not required to be, and shall not
be, authenticated by the Paying Agent/Registrar,but oneach substitute Contractual Obligation issued
in conversion of and exchange for any Contractual Obligation or Contractual Obligations issued under
this Order the Paying Agent/Registrar shall execute the PAYING AGENT/REGISTRAR'S
AUTHENTICATION CERTIFICATE, in the form set forth in the FORM OF CONTRACTUAL
OBLIGATION.
(d) Substitute Pa in Agent(Registrar. The Issuer covenants with the registered owners of
the Contractual Obligations that at all times while the Contractual Obligations are outstanding the
Issuer will provide a competent and legally qualified bank, trust company, financial institution, or
other agency to act as and perform the services of Paying Agent/Registrar for the Contractual
Obligations under this Order, and that the Paying Agent/Registrar will be one entity. The Issuer
reserves the right to, and may, at its option, change the Paying Agent/Registrar upon not less than
120 days written notice to the Paying Agent/Registrar, to be effective not later than 60 days prior to
the next principal or interest payment date after such notice. In the event that the entity at any time
acting as Paying Agent/Registrar (or its successor by merger, acquisition, or other method} should
resign or otherwise cease to act as such, the Issuer covenants that promptly it will appoint a
competent and legally qualified bank, trust company, financial institution, or other agency to act as
Paying Agent/Registrar under this Order. Upon any change in the Paying Agent/Registrar, the
previous Paying Agent/Registrarpmmptly shall transfer and deliver the Registration Books (or a copy
thereof), along with all other pertinent books and records relating to the Contractual Obligations, to
the new Paying Agent/Registrar designated and appointed by the Issuer. Upon any change in the
Paying Agent/Registrar, the Issuer promptly will cause a written notice thereof to be sent by the new
Paying Agent/Registrar to each registered owner of the Contractual Obligations, by United States
mail, first-class postage prepaid, which notice also shall give the address of the new Paying
Agent/Registrar. By accepting the position and performing as such, each Paying Agent(Registrarshah
be deemed to have agreed to the provisions of this Order, and a certified copy of this Order shall be
delivered to each Paying Agent/Registrar.
SECTION 6. FORM OF CONTRACTUAL OBLIGATIONS. The form of the Contractual
Obligations, including the form of Paying Agent(Registrar's Authentication Certificate, the form of
Assignment and the form of Registration Certificate of the Comptroller of Public Accounts of the
State of Texas to be attached to the Contractual Obligations initially issued and delivered pursuant
to this Order, shall be, respectively, substantially as follows, with such appropriate variations,
omissions, or insertions as are permitted or required by this Order.
4
FORM OF CONTRACTUAL OBLIGATION
NO. R-
INTEREST
RATE
REGISTERED OWNER:
PRINCIPAL AMOUNT:
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF KERR
KERR COUNTY, TEXAS
PUBLIC PROPERTY FINANCE
CONTRACTUAL OBLIGATION
SERIES 1993
DATE OF SERIES
October 15, 1993
DOLLARS
CLJSIP NQ
ON THE MATURITY DATE specified above, Kerr County, Texas (the "Issuer"), being a
political subdivision of the State of Texas, hereby promises to pay to the Registered Owner set forth
above, or registered assigns (hereinafter called the "registered owner") the principal amount set forth
above and to pay interest thereon from the date of initial delivery (as shown on the records of the
"Paying Agent/Registrar", hereinafter defined), on February 15, 1994 and semiannually on each
August 15 and February 15 thereafter to the maturity date specified above, at the interest rate per
annum specified above; except that if this Contractual Obligation is required to be authenticated and
the date of its authentication is later than the first Record Date (hereinafter defined), such principal
amount shall bear interest from the interest payment date next preceding the date of authentication,
unless such date of authentication is after any Record Date but on or before the next following
interest payment date, in which case such principal amount shall bear interest from such next follow-
inginterest payment date; provided, however, that if on the date of authentication hereof the interest
on the Contractual Obligation or Contractual Obligations, if any, for which this Contractual
Obligation is being exchanged of converted from is due but has not been paid, then this Contractual
Obligation shall bear interest from the date to which such interest has been paid in full.
IN CONSIDERATION of the registered owner's acceptance hereof, which acceptance shall
constitute the registered owner's assent hereto and to the terms and conditions of the order
authorizing the issuance of the Contractual Obligations (the "Order"), the Issuer hereby unilaterally
contracts with such registered owner that it will utilize the net available proceeds of the Contractual
Obligations, after payment of the costs of issuance related thereto, to acquire or purchase the
"Property" in accordance with the terms and provisions of the Order.
PRINCIPAL
AMOUNT
MATURITY
DATE
THE PRINCIPAL OF AND INTEREST ON this Contractual Obligation are payable in
lawful money of the United States of America, without exchange or collection charges. The principal
of this Contractual Obligation shall be paid to the registered owner hereof upon presentation and
surrender of this Contractual Obligation at maturity at the principal corporate trust office of the
Victoria Bank & Trust Co, Victoria, Texas, which is the "Paying Agent/Registrar" for this Contractual
Obligation. The payment of interest on this Contractual Obligation shall be made by the Paying
Agent/Registrar to the registered owner hereof on each interest payment date by check or draft,
dated as of such interest payment date, drawn by the Paying Agent/Registrar on, and payable solely
from, funds of the Issuer required by the Order to be on deposit with the Paying Agent(Registrar for
such purpose as hereinafter provided; and such check or draft shall be sent by the Paying
Agent/Registrar by United States mail, first-class postage prepaid, on each such interest payment date,
to the registered owner hereof, at its address as it appeared on the last business day of the month
next preceding each such date (the "Record Date") on the Registration Books kept by the Paying
Agent/Registrar, as hereinafter described. In addition, interest may be paid by such other method,
acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the registered
owner. In the event of anon-payment of interest on a scheduled payment date, and for 30 days
thereafter, a new record date for such interest payment (a "Special Record Date") will be established
by the Paying AgentlRegistrar, if and when funds for the payment of such interest have been received
from the Issuer. Notice of the Special Record Date and of the scheduled payment date of the past
due interest (which shall be 15 days after the Special Record Date) shall be sent at least five business
days prior to the Special Record Date by United States mail, first-class postage prepaid, to the
address of each owner of a Contractual Obligation appearing on the Registration Books at the close
of business on the last business day next preceding the date of mailing of such notice.
THE ISSUER covenants with the registered owner of this Contractual Obligation that on or
before each principal payment date, and interest payment date for this Contractual Obligation it will
make available to the Paying Agent/Registrar, from the "Interest and Sinking Fund" created by the
Order, the amounts required to provide for the payment, in immediately available funds, of all princi-
pal of and interest on the Contractual Obligations, when due.
IF THE DATE Cor the payment of this Contractual Obligation shall be a Saturday, Sunday,
a legal holiday, or a day on which banking institutions in the city where the principal corporate trust
office of the Paying Agent/Registrar is located are authorized by law or executive order to close, then
the date for such payment shall be the next succeeding day which is not such a Saturday, Sunday,
legal holiday, or day on which banking institutions are authorized to close; and payment on such date
shall have the same force and effect as if made on the original date payment was due.
THIS CONTRACTUAL OBLIGATION is one of a Series of CONTRACTUAL
OBLIGATIONS, dated October 15, 1993, authorized in accordance with the Constitution and laws
of the State of Texas in the principal amount of $455,000, FOR THE PURPOSE OF PAYING ALL
OR A PORTION OF THE ISSUER'S CONTRACTUAL OBLIGATIONS TO BE INCURRED
IN CONNECTION WITH THE ACQUISITION OR PURCHASE OF PERSONAL PROPERTY,
IN ACCORDANCE WITH THE PROVISIONS OF THE PUBLIC PROPERTY FINANCE ACT,
SECTIONS 271.001 - 271.009, TEXAS LOCAL GOVERNMENT CODE.
ALL CONTRACTUAL OBLIGATIONS OF THIS SERIES are issuable solely as fully
registered Contractual Obligations, without interest coupons, in the denomination of any integral
multiple of $5,000. As provided in the Order, this Contractual Obligation may, at the request of the
registered owner or the assignee or assignees hereof, be assigned, transferred, converted into and
exchanged for a like aggregate principal amount of fully registered Contractual Obligations, without
interest coupons, payable to the appropriate registered owner, assignee or assignees, as the case may
6
be, having the same denomination or denominations in any integral multiple of $5,000 as requested
in writing by the appropriate registered owner, assignee or assignees, as the case may be, upon
surrender of this Contractual Obligation to the Paying Agent/Registrar for cancellation, all in
accordance with the form and procedures set forth in the Order. Among other requirements for such
assignment and transfer, this Contractual Obligation must be presented and surrendered to the Paying
Agent/Registrar, together with the proper instruments of assignment, in form and with guarantee of
signatures satisfactory to the Paying Agent/Registrar, evidencing assignment of this Contractual
Obligation or any portion or portions hereof in any integral multiple of $5,006 to the assignee or
assignees in whose name or names this Contractual Obligation or any such portion or portiots hereof
is or are to be registered. The form of Assignment printed or endorsed on this Contractual
Obligation may be executed by the registered owner to evidence the assignment hereof, but such
method is not exclusive, and other instruments of assignment satisfactory to the Paying AgentJRegis-
trarmay be used to evidence the assignment of this Contractual Obligation or any portion or portions
hereof from time to time by the registered owner. In the case of the assignment, transfer, conversion
or exchange of a Contractual Obligation or Contractual Obligations or any portion or portions
thereof, the reasonable standard or customary fees and charges of the Paying AgentlRegistrar will
be paid by the Tssuer. In any circumstance, any taxes or governmental charges required to be paid
with respect thereto shall be paid by the one requesting such assignment, transfer, conversion or ex-
change, as a condition precedent to the exercise of such privilege. The Paying Agent/Registrar shall
not be required to make any such transfer, conversion or exchange during the period commencing
with the close of business on any Record Date and ending with the opening of business on the next
following principal or interest payment date.
IN THE EVENT any Paying Agent/Registrar for the Contractual Obligations is changed by
the Issuer, resigns, or otherwise ceases to act as such, the Issuer has covenanted in the Order that
it promptly will appoint a competent and -egally qualified substitute therefor, and cause written notice
thereof to be mailed to the registered owners of the Contractual Obligations.
IT IS HEREBY certified, recited and covenanted that this Contractual Obligation has been
duly and validly authorized, issued and delivered; that all acts, conditions and things required or
proper to be performed, exist and be done precedent to or in the authorization, issuance and delivery
of this Contractual Obligation have been performed, existed and been done in accordance with law;
that this Contractual Obligation is an obligation of said Issuer, issued on the full faith and credit
thereof; and that annual ad valorem taxes sufficient to provide for the payment of the interest on and
principal of this Contractual Obligation, as such interest comes due and such principal matures, have
been levied and ordered to be levied against all taxable property in said Issuer, and have been
pledged for such payment, within the limit prescribed by law.
BY ACCEPTANCE of this Contractual Obligation, the registered owner assents to the terms
and provisions of the Order, a copy of which is on file in the official records of the Issuer, and the
Contractual Obligation, agrees to be bound by such terms and provisions, and agrees that the terms
and provisions of this Contractual Obligation and the Order constitute a contract between each
registered owner hereof and the Issuer.
IN WITNESS WHEREOF, the Issuer, in accordance with the provisions of Article 717j-1,
Vernon's Texas Civil Statutes, has caused this Contractual Obligation to be signed with the manual
or facsimile signature of the County Judge of the Issuer, countersigned with the manual or facsimile
signature of the County Clerk of the Issuer, and has caused the official seal of the Issuer to be duly
impressed, or placed in facsimile, on this Contractual Obligation.
(signature)
County Clerk
(s~nature~
County Judge
FORM OF PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE
PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE (To be
executed if this Contractual Obligation is not accompanied by an executed
Registration Certificate of the Comptroller of Public Accounts of the State of Texas)
It is hereby certified that this Contractual Obligation has been issued under the provisions of
the Order described in the text of this Contractual Obligation; and that this Contractual Obligation
has been issued in conversion or replacement of, or in exchange for, a contractual obligation,
contractual obligations, or a portion of a contractual obligation or contractual obligations of a Series
which originally was approved by the Attorney General of the State of Texas and registered by the
Comptroller of Public Accounts of the State of Texas.
Dated:
Victoria Bank & Trust Co.
Paying Agent/Registrar
By
Authorized Representative
8
FORM OF ASSIGNMENT
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned Registered Owner of this Contractual
Obligation, or duly authorized representative or attorney thereof, hereby assigns this Contractual
Obligation to
/ /
(Assignee's Social Security or (Print or typewrite Assignee's name and address, including zip code)
Taxpayer Identification)
and hereby irrevocably constitutes and appoints
attorney to register the transfer of the within Contractual Obligation on the books kept for
registration thereof, with full power of substitution in the premises.
Dated:
Signature Guaranteed:
NOTICE: Signature(s) must be guaranteed by
a member firm of the New York Stock
Exchange or a commercial bank or trust
company.
NOTICE: The signature above must
correspond with the name of the Registered
Owner as it appears upon the front of this
Contractual Obligation in every particular,
without alteration or enlargement or any
change whatsoever.
FORM OF REGISTRATION CERTIFICATE OF TIIE COMPTROLLER OF PURI.IC ACCOUNTS
COMPTROLLER'S REGISTRATION CERTIFICATE: REGISTER NO.
I hereby certify that this Contractual Obligation has been examined, certified as to validity, and
approved by the Attorney General of the State of Texas, and that this Contractual Obligation has been
registered by the Comptroller of Public Accounts of the State of Texas.
Witness my signature and seal this
Comptroller of Public Accounts
of the State of Texas
(COMPTROLLER'S SEAL)
SECTION 7. INTEREST AND SINKING FUNI)/TAX LEVY. A special Kerr County, Texas
Public Property Finance Contractual Obligations, Series 1993 Interest and Sinking Fund (the "Interest
and Sinking Fund") is hereby created solely for the benefit of the Contractual Obligations, and the
Interest and Sinking Fund shall be established and maintained by the Issuer at an official depository
bank of the Issuer for so long as the Contractual Obligations or interest thereon are outstanding and
unpaid. The Interest and Sinking Fund shall be kept separate and apart from all other funds and
accounts of the Issuer, and shall be used only for paying the interest on and principal of the
Contractual Obligations. Until expended for the purposes set forth in Section 1 hereof, the proceeds
derived from the sale of the Contractual Obligations shall be held as further security for the timely
payment of the principal and interest on the Contractual Obligations. All ad valorem taxes levied
and collected for and on account of such Contractual Obligations shall be deposited, as collected, to
the credit of the Interest and Sinking Fund. During each year while any of the Contractual
Obligations are ouzstanding and unpaid, the governing body of the Issuer shall compute and ascertain
a rate and amount of ad valorem tax which will be sufficient to raise and produce the money required
to pay the interest on said Contractual Obligations as such interest comes due, and to provide and
maintain a sinking fund adequate to pay the principal of such Contractual Obligations as such
principal matures; and said tax shall be based on the latest approved tax rolls of the Issuer, with full
allowance being made for tax delinquencies and the cost of tax collection. Said rate and amount of
ad valorem tax is hereby levied, and is hereby ordered to be levied, against all taxable property in the
Issuer for each year while any of said Contractual Obligations are outstanding and unpaid; and said
tax shall be assessed and collected each such year and deposited to the credit of the aforesaid Interest
and Sinking Fund. Said ad valorem taxes sufficient to provide for the payment of the interest on and
principal of the Contractual Obligations as such interest comes due and such principal matures, are
hereby pledged for such payment, within the limit prescribed by law.
SECTION S. DEFEASANCE OF CONTRACTUAL OBLIGATIONS. (a) Any Contractual
Obligation and the interest thereon shall be deemed to be paid, retired, and no longer outstanding
(a "Defeased Contractual Obligation") within the meaning of this Order, except to the extent
provided in subsection (d) of this Section 8, when payment of the principal of such Contractual
Obligation, plus interest thereon to the due date (whether such due date be by reason of maturity
or otherwise) either (i) shall have been made or caused to be made in accordance with the terms
thereof, or (ii) shall have been provided for on or before such due date by irrevocably depositing with
or making available to the Paying Agent/Registrar for such payment (1) lawful money of the United
States of America sufficient to make such payment or {2} Government Obligations which mature as
to principal and interest in such amounts and at such times as will insure the availability, without
reinvestment, of sufficient money to provide for such payment, and when proper arrangements have
been made by the Issuer with the Paying Agent/Registrar for the payment of its services until all
Defeased Contractual Obligations shall have become due and payable. At such time as a Contractual
Obligation shall be deemed to be a Defeased Contractual Obligation hereunder, as aforesaid, such
Contractual Obligation and the interest thereon shall no longer be secured by, payable from, or
entitled to the benefits of, the ad valorem taxes herein levied and pledged as provided in this Order,
and such principal and interest shall be payable solely from such money or Government Obligations.
(b) Any moneys so deposited with the Paying AgentJRegistrar may at the written direction
of the Issuer also be invested in Government Obligations, maturing in the amounts and times as
hereinbefore set forth, and all income from such Government Obligations received by the Paying
Agent/Registrar which is not required for the payment of the Contractual Obligations and interest
10
thereon, with respect to which such money has been so deposited, shall be turned over to the Issuer,
or deposited as directed in writing by the Issuer.
(c) The term "Government Obligations" as used in this Section 8, shall mean direct
obligations of the United States of America, including obligations the principal of and interest on
which are unconditionally guaranteed Gy the United States of America, which may be United States
Treasury obligations such as its State and Local Government Series, which may be in book-entry
form.
(d) Until all Defeased Contractual Obligations shall have become due and payable, the
Paying Agent/Registrar shall perform the services of Paying Agent(Registrar for such Defeased
Contractual Obligations the same as if they had not been defeased, and the Issuer shall make proper
arrangements to provide and pay for such services as required by this Order.
SECTION 9. DAMAGED, MUTILATED, LOST, STOLEN, OR DESTROYED
CONTRACTUAL OBLIGATIONS. (a) Replacement Contractual Obli atg ions. In the event any
outstanding Contractual Obligation is damaged, mutilated, lost, stolen, or destroyed, the Paying
Agent/Registrar shall cause to be printed, executed, and delivered, a new contractual obligation of
the same principal amount, maturity, and interest rate, as the damaged, mutilated, lost, stolen, or
destroyed Contractual Obligation, in replacement for such Contractual Obligation in the manner
hereinafter provided.
(b) Application for Replacement Contractual Obli atq ions. Application for replacement of
damaged, mutilated, lost, stolen, or destroyed Contractual Obligations shall be made by the registered
owner thereof to the Paying Agent/Registrar. In every case of loss, theft, or destruction of a
Contractual Obligation, the registered owner applying for a replacement contractual obligation shall
furnish to the Issuer and to the Paying Agent/Registrarsueh security or indemnity as maybe required
by them to save each of them harmless from any loss or damage with respect thereto. Also, in every
case of loss, theft, or destruction of a Contractual Obligation, the registered owner shall furnish to
the Issuer and to the Paying Agent/Registrar evidence to their satisfaction of the loss, theft, or
destruction of such Contractual Obligation, as the case may be. In every case of damage or
mutilation of a Contractual Obligation, the registered owner shall surrender to the Paying
Agent/Registrar for cancellation the Contractual Obligation so damaged or mutilated.
(c) No Default Occurred. Notwithstanding the foregoing provisions of this Section 9, in the
event any such Contractual Obligation shall have matured, and no default has occurred which is then
continuing in the payment of the principal of or interest on such Contractual Obligation, the Issuer
may authorize the payment of the same (without surrender thereof except in the case of a damaged
or mutilated Contractual Obligation) instead of issuing a replacement contractual obligation, provided
security or indemnity is furnished as above provided in this Section 9.
(d) Charge for Issuing Re~acement Contractual Obligations. Prior to the issuance of any
replacement contractual obligation, the Paying Agent/Registrar shall charge the registered owner of
such Contractual Obligation with all ]egal, printing, and other expenses in connection therewith.
Every replacement contractual obligation issued pursuant to the provisions of this Section 9 by virtue
of the fact that any Contractual Obligation is lost, stolen, or destroyed shall constitute a contractual
obligation of the Issuer whether or not- the lost, stolen, or destroyed Contractual Obligation shall be
found at any time, or be enforceable by anyone, and shall be entitled to al] the benefits of this Order
11
equally and proportionately with any and all other Contractual Obligations duly issued under this
Order.
(e) Authority for Issuing_Replacement Contractual Obligations. In accordance with Section 6
of Article 717k-ti, Vernon's Annotated Texas Civil Statutes, this Section 9 of this Order shall con-
stitute authority for the issuance of any such replacement contractual obligation without necessity of
further action by the Issuer or any other body or person, and the duty of the replacement of such
Contractual Obligations is hereby authorized and imposed upon the Paying Agent/Registrar, and the
Paying Agent/Registrarshah authenticate and deliver such replacement contractual obligations in the
form and manner and with the effect, as provided in Section 5(a) of this Order for Contractual
Obligations issued in conversion and exchange of other Contractual Obligations.
SECTION 10. CUSTODY, APPROVAL, AND REGISTRATION OF CONTRACTUAL
OBLIGATIONS; BOND COUNSEL'S OPINION; CUSIP NUMBERS AND CONTINGENT
INSURANCE PROVISION, IF OBTAINED. The County Judge of the Issuer is hereby authorized
to have control of the Contractual Obligations initially issued and delivered hereunder and all
necessary records and proceedings pertaining to the Contractual Obligations pending their delivery
and their investigation, examination, and approval by the Attorney General of the State of Texas, and
their registration by the Comptroller of Public Accounts of the State of Texas. Upon registration of
the Contractual Obligations said Comptroller of Public Accounts (or a deputy designated in writing
to act for said Comptroller) shall manually sign the Comptroller's Registration Certificate attached
to such Contractual Obligations, and the seal of said Comptroller shall be impressed, or placed in
facsimile, on such Certificate. The approving legal opinion of the Issuer's Bond Counsel (and an
appropriate certificate of the County Clerk relating to such opinion) and the assigned CUSIP
numbers may, at the option of the Issuer, be printed on the Contractual Obligations issued and
delivered under this Order, but neither shall have any legal effect, and shall be soVely for the
convenience and information of the registered owners of the Contractual Obligations. In addition,
if bond insurance is obtained, the Contractual Obligations may bear an appropriate legend as
provided by the insurer.
SECTION 11. COVENANTS REGARDING TAX EXEMPTION OF INTEREST ON THE
CONTRACTUAL OBLIGATIONS. The Issuer covenants to take any action necessary to assure, or
refrain From any action which would adversely affect, the treatment of the Contractual Obligations
as obligations described in section 103 of the Code, the interest on which is not includab]e in the
"gross income" of the holder for purposes of federal income taxation. In furtherance thereof, the
Issuer covenants as fo]lows:
(a) to take any action to assure that no more than 10 percent of the proceeds of the
Contractual Obligations or the projects financed therewith (less amounts deposited to a
reserve fund, if any) are used for any "private business use," as defined in section 141(b)(6)
of the Code or, if more than 10 percent of the proceeds or the projects financed therewith
are so used, such amounts, whether or not received by the Issuer, with respect to such private
business use, do not, under the terms of this Order or any underlying arrangement, directly
or indirectly, secure or provide for the payment of more than 10 percent of the debt service
on the Contractual Obligations, in contravention of section 141(b)(2) of the Code;
(b) to take any action to assure that in the event that the "private business use"
described in subsection (a) hereof exceeds 5 percent of the proceeds of the Contractual
12
Obligations or the projects financed therewith (less amounts deposited into a reserve fund,
if any) then the amount in excess of 5 percent is used fora "private business use" which is
"related" and not "disproportionate," within the meaning of section 141(6)(3) of the Code, to
the governmental use;
(c) to take any action to assure that no amount which is greater than the lesser of
$5,000,000, or 5 percent of the proceeds of the Contractual Obligations (less amounts
deposited into a reserve fund, if any) is directly or indirectly used to finance loans to persons,
other than state or local governmental units, in contravention of section 141(c) of the Code;
(d) to refrain from taking any action which would otherwise result in the Contractual
Obligations being treated as "private activity bonds" within the meaning of section 141(6) of
the Code;
(e) to refrain from taking any action that would result in the Contractual Obligations
being "federally guaranteed" within the meaning of section 149(6) of the Code;
(f) to refrain from using any portion of the proceeds of the Contractual Obligations,
directly or indirectly, to acquire or to replace funds which were used, directly or indirectly,
to acquire investment property (as defined in section 148(6)(2) of the Code) which produces
a materially higher yield over the term of the Contractual Obligations, other than investment
property acquired with --
(1) proceeds of the Contractual Obligations invested for a reasonable
temporary period of 3 years or less or, in the case of a refunding bond, for a period
of 30 days or less until such proceeds are needed for the purpose for which the bonds
are issued,
(2) amounts invested in a bona fide debt service fund, within the meaning of
section 1.148-1(b) of the Treasury Regulations, and
(3) amounts deposited in any reasonably required reserve or replacement
fund to the extent such amounts do not exceed 10 percent of the proceeds of the
Contractual Obligations;
(g) to otherwise restrict the use of the proceeds of the Contractual Obligations or
amounts treated as proceeds of the Contractual Obligations, as may be necessary, so that the
Contractual Obligations do not otherwise contravene the requirements of section 148 of the
Code (relating to arbitrage) and, to the extent applicable, section 149(d) of the Code (relating
to advance tefundings);
(h) to pay to the United States of America at least once during each five-year period
(beginning on the date of delivery of the Contractual Obligations) an amount that is at least
equal to 90 percent of the "Excess Earnings," within the meaning of section 148(f) of the
Code and to pay to the United States of America, not later than 60 days after the Contractual
Obligations have been paid in full, 100 percent of the amount then required to be paid as a
result of Excess Earnings under section 148(f) of the Code; and
13
(i) to maintain such records as will enable the Issuer to fulfill its responsibilities under
this section and section 148 of the Code and to retain such records for at least six years
following the final payment of principal and interest on the Contractual Obligations.
In order to facilitate compliance with the above covenants (h) and (i), a "Rebate Fund" is
hereby established by the Issuer for the sole benefit of the United States of America, and such fund
shall not be subject to the claim of any other person, including without limitation the registered
owners of Contractual Obligations. The Rebate Fund is established for the additional purpose of
compliance with section 148 of the Code.
It is the understanding of the Issuer that the covenants contained herein are intended to
assure compliance with the Code and any regulations or rulings promulgated by the U.S. Department
of the Treasury pursuant thereto. In the event that regulations or rulings are hereafter promulgated
which modify or expand provisions of the Code, as applicable to the Contractual Obligations, the
Issuer will not be required to comply with any covenant contained herein to the extent that such
failure to comply, in the opinion of nationally recognized bond counsel, will not adversely affect the
exemption from federal income taxation of interest on the Contractual Obligations under section 103
of the Code. In the event that regulations or rulings are hereafter promulgated which impose
additional requirements which are applicable to the Contractual Obligations, the Issuer agrees to
comply with the additional requirements to the extent necessary, in the opinion of nationally
recognized bond counsel, to preserve the exemption from federal income taxation of interest on the
Contractual Obligations under section 103 of the Code. In furtherance of such intention, the Issuer
hereby authorizes and directs the Superintendent to execute any documents, certificates or reports
required by the Code and to make such elections, on behalf of the Issuer, which may be permitted
by the Code as are consistent with the purpose for the issuance of the Contractual Obligations.
SecT[oN 12. CONTRACTUAL UNDERTAKING WITH REGISTERED OWNER. The Issuer
hereby, and by the acceptance of each of the Contractual Obligations, contractually obligates and
commits itself to utilize the net proceeds available from the issuance and delivery of the Contractual
Obligations, after payment of costs of issuance related thereto, for the acquisition or purchase of the
property in accordance with terms and provisions of this Order.
SECTION 13. REMEDIES IN EVENT OF DEFAULT. In addition to all of the rights and
remedies provided by the laws of the State of Texas, the Issuer covenants and agrees that in the
event of default in payment of principal or interest on any of the Contractual Obligations when due,
or, in the event it fails to make the payments required to be made into the Interest and Sinking Fund
or defaults in the observance or performance of any other of the contracts, covenants, conditions or
obligations set forth in this Order or in the Contractual Obligations, the following remedies shall be
available:
(a) the registered owners shall be entitled to a writ of mandamus issued by a court of
competent jurisdiction compelling and requiring the Issuer and the officials thereof
to observe and perform the contracts, covenants, obligations or conditions prescribed
in this Order; and
(b) any delay or omission to exercise any right or power accruing upon any default shall
not impair any such right or power nor be construed to be a waiver of any such
14
default or acquiescence therein, and every such right and power may be exercised
from time to time and as often as may be deemed expedient.
SECTION 14. SALE OF CONTRACTUAL OBLIGATIONS. The Contractual Obligations are
hereby initially sold and shall be delivered to First National Bank, Kerrville, Texas, for cash for the
par value. It is hereby officially found, determined and declared that the terms of this sale are the
most advantageous reasonably obtainable. The Bonds shall initially be registered in the name of First
National Bank, Kerrville, Texas.
SECTION 15. INTEREST EARNINGS ON CONTRACTUAL OBLIGATIONS. Interest
earnings derived from the investment of proceeds from the sale of the Contractual Obligations shall
be used along with other contractual obligation proceeds for the purpose for which the Contractual
Obligations are issued set forth in Section 1 hereof; provided that after completion of such purpose,
if any of such interest earnings remain on hand, such interest earnings shall be deposited in the
Interest and Sinking Fund. It is Further provided, however, that any interest earnings on contractual
obligation proceeds which are required to be rebated to the United States of America pursuant to
Section 11 hereof in order to prevent the Contractual Obligations from being arbitrage bonds shall
be so rebated and not considered as interest earnings for the purposes of this Section.
SECTION lb. FURTIIER PROCEDURES. The County Judge, County Clerk, County
Treasurer and County Auditor of the Issuer and all other officers, employees and agents of the Issuer,
and each of them, shall be and they are hereby expressly authorized, empowered and directed from
time to time and at any time to do and perform all such acts and things and to execute, acknowledge
and deliver in the name and under the corporate seal and on behalf of the Issuer the Paying
Agent/Registrar Agreement with the Paying Agent/Registrar and all other instruments, whether or
not herein mentioned, as maybe necessary or desirable in order to carry out the terms and provisions
of this Order, the Contractual Obligations, the sale of the Contractual Obligations and the Official
Statement. Incase any officer whose signature shall appear on any Contractual Obligation shall cease
to be such officer before the delivery of such Contractual Obligation, such signature shall nevertheless
be valid and sufficient for all purposes the same as if such officer had remained in office until such
delivery.
SECTION 17. DESIGNATION AS QUALIFIED TAX-EXEMPT OBLIGATIONS. The Issuer
hereby designates the Contractual Obligations as "qualified tax-exempt obligations" as defined in
section 265(6)(3) of the Code, conditioned upon the purchaser identified in Section 14 hereof
certifying that the aggregate initial offering price of the Contractual Obligations to the public
(excluding any accrued interest) is no greater than $10 million. Assuming such condition is met, in
furtherance of such designation, the Issuer represents, covenants and warrants the following: (a) that
during the calendar year in which the Contractual Obligations are issued, the Issuer (including any
subordinate entities) has not designated nor will designate bonds, which when aggregated with the
Contractual Obligations, will result in more than $10,000,000 of "qualified tax-exempt obligations"
being issued; (b) that the Issuer reasonably anticipates that the amount of tax-exempt obligations
issued, during the calendar year in which the Contractual Obligations are issued, by the Issuer (or any
subordinate entities) will not exceed $10,000,000; and, (c) that the Issuer will take such action or
refrain from such action as necessary, and as more particularly set forth in Section 11, hereof, in
order that the Contractual Obligations will not be considered "private activity bonds" within the
meaning of section 141 of the Code.
15
SecnoN 18. APPROI'RLITION OF FUNDS TO PAY INTEREST. The Commissioners
Court hereby covenants and represents that it has appropriated in the Issuer's 1993-94 fiscal year
budget, and there is available, an amount sufficient to pay the principal and interest on the
Contractual Obligations coming due on February 15, 1994 and August 15, 1994, and the
Commissioners Court hereby authorizes and directs the County Judge and County Auditor of the
Issuer to transfer on or before February 15, 1994 and August 15, 1994 available funds to the Interest
and Sinking Fund in an amount sufficient to pay the principal and interest coming due on such dates.
[The remainder of this page is intentionally left blank}
16
SECTION 22. EFFECTIVE DATE. This Order shall become effective immediately upon its
adoption.
ADOPTED BY THE COMMISSIONERS COURT OF KERR COUNTY, TEXAS AT A
REGULAR MEETING HELD ON THE 12TH DAY OF OCTOBER, 1993.
ATTEST:
APPROVED:
-S
County Clerk, Kerr Cou exas County Judge, Kerr Co nty, Texas
(SEAL)
17
EXHIBIT A
DESCRIPTION OF PROPERTY
(The acquisition date for the following items of personal property will occur during the current fiscal
year of the Issuer.)
Description Estimated Total Cost
RISC based computers and system software for
courthouse, tax office, and adult probation for
approximately 96 users.	$165,000
Steel moveable shelving -County Clerk	1'7000
Microfilm Camera -District Clerk	12,000
Microfilm Reader Printer -District Clerk	12,000
Truck -Environmental Health	10,000
Patrol Vehicles (2) -Sheriff	26,000
Communications Console -Jail	17000
Maintainer -Road & Bridge Maintenance g0~00p
Backhoe -Road & Bridge Maintenance 35,000
(2) 8 r.w. Trucks - Road & Bridge 70,000
Maintenance
TOTAL $qqq 000
EXHIBIT B
THE PAYING AGENT/R.EGISTRAR AGREEMENT IS OMITTED AT THIS POINT AS IT APPEARS
IN EXECUTED FORM ELSEWHERE IN THIS TRANSCRIPT OF PROCEEDINGS.
COMMISSIONERS' COURT AGENDA. REQUEST
_*P F SE FURNISH	ONE OR	IGINAL	AND F	IVE COPIE	S OF	THIS REQUEST AND
DOCUM	ENTS T	O BE RE	VIEWE	D BY THE	COUR	T
MADE BY: Auditor
OFFICE:
MEETING DATE: October 12, 1993
71ME PREFERRED:
SUBJECT: (PLEASE BE SPEC1FiC) consider and approve contractual
Obligation for the purchase of Personal Property in the amounty of $444,000.
EXECUTIVE SESSION REQUESTED: YES ^_ NO
PLEASE STATE REASON FOR EXECUTIVE SESSION
ESTIMATED LENGTH OF PRESENTATION:
PERSONNEL MATTER - NAME OF EMP(_OYEE:
NAME OF PERSON ADDRESSING THE COURT:
THIS REQUEST RECEIVED 8Y:
THIS REQUEST RECEIVED ON : ~
All Agenda Requests wlil be screened by the County Judge's Office to determine
adequate Information has been prepared for the Court's formal consideration and actin
at time of Court meetings. Your cooperation wlil be appreciated and contribute towarc
your request being addressed at the earilest opportunity. See Agenda Reque;
Guidelines.
ORDER N0. 21670
APPROVAL OF CONTRACTUAL
OBLIGATI FOR PURCHASE OF
PERSONAL PROPERTY IN 'PHE AMOUNT
OF $455,000.00
October 12, 1993
Vol T, Page 212