Resolution 923
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RESOLUTION NO. 923
A RESOLUTION PROVIDING FOR THE ISSUANCE OF BONDS
AND DIRECTING LEVY OF AD VALOREM ASSESSMENTS TO
PAY THE PRINCIPAL AND INTEREST THEREOF
PARKING DISTRICT NO. 1
$110,000 - FIRST DIVISION
RESOLVED, by the City Council of the City of Gilroy, Santa
Clara County, California, that
WHEREAS, the City of Gilroy, in the County of Santa Clara,
State of California, herein called "City," is a charter city, duly
organized and existing under and pursuant to the provisions of the
Constitution of the State of California;
WHEREAS, by the terms of said Charter, the City is empower-
ed to make and enforce all laws and regulations in respect to munici-
pal affairs, subject only to such restrictions and limitations as
may be provided in said Charter and said Constitution, and to exercise
any and all rights, powers and privileges heretofore or hereafter
established, granted and prescribed by any law of the State, said
Charter, or by any other lawful authority, of which a municipal corpo-
ration might or could exercise under said Constitution, including all
powers not in conflict with the provisions of said Charter now or
hereafter granted to General Law Cities and wherein it is provided
that the enumeration in said Charter of any particular power shall
not be held -to be exclusive of or any limitation upon said general
grant of powers;
WHEREAS, the acquisition, construction, ownership, manage-
ment, maintenance, operation, repair, addition, extension and improve-
ment of offstreet parking facilities for public and private purposes
is a municipal affair;
WHEREAS, Ordinance No. 645 entitled "Gilroy Improvement
Procedure Code," adopted by this Council on March 6, 1961, as amended,
was adopted pursuant to the power and authority vested in said Council
by and under the terms and provisions of said Charter, and there are
no limitations in regard thereto expressly or otherwise provided in
said Charter or in the Constitution of the State of California, other
than Section 17 of Article XIII as to which full compliance has been
had by the City Council in the proceedings leading up to the adoption
of this Resolution; and
WHEREAS, all acts, conditions and things required by the
Constitution and laws of the State of California and the Charter of
said City and of said Gilroy Improvement Procedure Code to be done,
to happen and to be performed precedent to and in the issuance of said
bonds, have been done, have happened and have been performed in regu-
lar and due form, time and manner as required by law, and the City
Council is now authorized to issue and sell said bonds and to levy
special ad valorem assessments upon the land within the -
district determined to be the district benefited thereby, all as more
particularly finally provided in Resolution No. 856, A Resolution
Determining Convenience and Necessity, Ordering Acquisitions and
Improvements and Declaring Formation of Parking District No.1, adopt-
ed by this Council on August 31, 1964;
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NOW, THEREFORE, IT IS HEREBY DETERMINED and ORDERED, as
follows:
1. Bond Law. Except as herein otherwise provided, the
bonds herein provided to be issued shall be issued pursuant to the
provisions of Ordinance No. 645 entitled "Gilroy Improvement Proce-
dure Code," adopted March 6, 1961, by this Council and particularly
Articles 1 and 5 of Chapter 6 thereof, as amended.
2. Definitions. As used herein the following terms have
the following meaning:
(a) Annual means the fiscal year of the City,
which is from July 1 to June 30, both inclusive;
(b) Assessment District or District, means the
district benefited by the Project, comprising the terri-
tory in the City of Gilroy described in the proceedings;
(c) Bonds mean the bonds herein authorized to be
issued;
(d) Bondholder means the holder of a bearer bond,
or the registered owner of a registered bond;
(e) Clerk or City Clerk means the person elect-
ed or appointed as the City Clerk;
(f) Council means the legislative body of the
City so created and designated in its Charter;
(g)
(h)
performs
City means the City of Gilroy;
Director of Finance means the person who
the duties of Treasurer of the City;
(i) Engineer means the City Engineer;
(j) Mayor means the Mayor of the City;
(k) Project means the acquisition, construc-
tion and financing of the offstreet motor vehicle
parking places described in the proceedings had pur-
suant to Resolution No. 837, A Resolution of Preli-
minary Determination and of Intention to Acquire
and Improve Offstreet Parking Places and to Form
Parking District No.1, adopted by the Council on
June 15, 1964, as modified.
3. Project Cost. The total estimated cost of the project,
including engineering and other fees, acquisition of property, lands
and easements, construction of improvements, and all other expenses
incidental thereto, is the sum of $150,000.
4. Public Interest. The public interest, convenience and
necessity require and the public economy and general welfare will be
served by the acquisition and construction of the Project, all as
more particularly described in Resolution No. 837 of Intention, which
acquisitions and improvements were ordered by this Council by Resolu-
tion No. 856 referred to above.
5. Bond Issue. The total amount of the bonds of this
Division shall be One Hundred Ten Thousand Dollars ($110,000.00),
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the principal and interest of which are to be serviced by special
annual ad valorem special assessment levies on the lands within the
area described in said Resolution No. 837 of Intention, as modified,
excepting therefrom all publicly owned property, which levies are
hereby determined and declared to be unlimited either as to rate or
amount. Said bonds shall be designated "Parking Bonds of 1965, First
Division," and shall be of the denomination of One Thousand Dollars
($1,000) each. They shall be dated July 2, 1965; shall be 110 in
number, and numbered 1 to 110, inclusive; and shall mature serially,
in the amounts, in the order of serial number, on the 2nd day of July
in each of the years, as follows:
$1,000 in each of the years 1966 through 1975;
2,000 in each of the years 1976 through 1985;
3,000 in each of the years 1986 through 1992;
4,000 in each of the years 1993 through 2000;
5,000 in each of the years 2001 through 2003; and
6,000 in each of the years 2004 and 2005.
6. Callable. Bonds numbered 1 through 10, inclusive, being
all of the bonds maturing on or before July 2, 1975, are not redeem-
able prior to their fixed maturity dates.
Bonds numbered 11 through 110, inclusive, being all of the
bonds maturing after July 2, 1975, are subject to call and redemption
at the option of the City, as a whole or in part, in inverse numeri-
cal order, on July 2, 1975 (but not prior thereto) or on any interest
date prior to their maturity date or dates at the principal amount and
accrued interest thereof to the date of redemption, plus a redemption
premium equal to one-quarter of one per cent (1/4 of 1%) of such
principal amount for each whole twelve (12) months and for any remain-
ing fraction of a twelve (12) months' period from the date fixed for
redemption to the maturity date or such bonds but not exceeding the
interest rate stated in each bond called.
7. Notice of Redemption. The Director of Finance shall
cause a notice of redemption to be published once at least thirty (30)
days prior to the date of call in a financial paper published in New
York or Chicago, or in lieu thereof, may mail such notice by register-
ed mail thirty (30) days prior thereto to the last known holder or
holders of any bearer bond so called, as shown by the records in his
office. Notice of redemption of any registered bond shall be given
to the registered owner by registered mail at least thirty (30) days
prior to the date of call.
8. Purchase of Bonds. The City may, from time to time
purchase any or all of said outstanding bonds at prices offered. All
bonds purchased shall be cancelled and shall not again be reissued.
9. Interest Coupons. The bonds shall bear interest at the
rate of not to exceed six per cent (6%) per annum from their date
until paid. Said interest shall be payable semiannually on January 2
and July 2 in each year. Attached to each bond shall be interest
coupons payable at the time the respective payments thereon become
due and for the amount thereof, as determined from the accepted bid
for the purchase of the bonds.
The original purchaser may request a split interest rate
represented by two coupons in any year for any bond, in which event
he shall specify the period and the interest rates therefor.
10. Interest After Maturity. If, upon presentation at
maturity, payment of said bonds or of any interest coupons thereon
is not made, said bonds or coupons, or both, shall continue to bear
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interest at the same rate until they are respectively paid in
fu 11.
11. ~fuere Bonds Payable. Principal and interest are payable
at the office of the Director of Finance of said City, City Hall,
Gilroy, California, in lawful money of the United States of America.
12. Negotiable Instruments. The bonds of this issue are
negotiable instruments and title thereto, unless registered, shall
pass by physical delivery thereof. The holders of unregistered bonds
shall have all of the rights possessed by holders of negotiable instru-
ments payable to bearer.
13. Execution of Bonds. When the bonds of this issue have
been prepared in accordance with this Resolution, they shall be
executed on behalf of the City by the signature of the Mayor and by
the Director of Finance, by their printed, engraved or lithographed
signatures, and countersigned by the City Clerk, who shall thereto
affix the corporate seal of the City, and the interest coupons shall
be executed and authenticated by the printed, engraved or lithographed
facsimile signature of the Director of Finance, who by such signatures
shall ratify the execution of the same.
14. Purchasers Record. The Director of Finance shall keep
a record of the names of the purchasers of the bonds and of all succes-
sive holders of bearer bonds issued hereunder so far as such informa-
tion is furnished to him for the purpose of giving notice of any call
for redemption of said bonds.
15. Registration. Any bond is subject to registration
either as to principal and interest or as to principal only upon
written request of the bondholder and presentation of the bonds to
the Director of Finance for registration.
(a) Principal and Interest. Upon presentation and
request for registration as to principal and interest, the Director
of Finance shall cut off the coupons and destroy them. He shall
maintain a book in which he shall enter the numbers of all registered
bonds and the names and addresses of the owners of registered bonds.
Until such registration is cancelled as herein provided, the interest
and principal thereof shall be payable only to the registered owner.
There shall be provided on the back of each bond a suitable blank
showing the name and address of the registered owner, the date of
registration or transfer, the type of registration and the signature
of the Director of Finance.
(b) Principal Only. Upon such presentation and re-
quest for registration as to principal only, a notation shall be made
to that effect in the registration book and on the bond. The coupons
shall not be detached and the interest on such bonds shall be paid
upon presentation of such coupons in the same manner as unregistered
bonds. Principal, however, shall be paid only to the registered
owner upon presentation of such bond.
(c) De-registration. The registration of any unmatured
bond may be cancelled upon written request of the registered owner.
Upon receipt of such request, the Director of Finance shall cancel the
registration in the bond register and on the back of the bond, print
and attach all unmatured coupons to the bond, and deliver the bond
and attached new coupons to the owner. The cost of reprinting the
coupons shall be paid by the person requesting the de-registration.
Until such bond is re-registered, the principal thereof shall be
payable to bearer and the interest shall again by paid upon surrender
of proper coupons.
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(d) Re-registration. De-registered bonds are subject
to re-registration in the same manner as previously unregistered
bonds.
16. Bonds Not a Debt. The bonds and interest thereon shall
not be a debt of said City~ nor a charge~ lien or encumbrance~ legal
or equitable~ upon any property of the City or upon any income or
receipts or revenues of the City other than the levies for the pay-
ment thereof as in this resolution provided.
17. City Credit Not Encumbered. No recourse shall be had
for the payment of the bonds~ or interest thereon~ or any part
thereof~ against the General Fund of the City~ nor shall the credit
or taxing power of the City be deemed to be pledged thereto, and
the holders of the bonds~ or the coupons thereto appertaining~ shall
never have the right to compel the exercise of the taxing power of
the City or the forfeiture of any property of the City for the pay-
ment of the bonds or the interest thereon, other than as herein
provided.
18. Bonds a Special Obligation. The bonds hereby authoriz-
ed to be issued and all additional bonds which may be issued in
accordance with the terms and conditions hereof shall be special
obligations of the City and shall be payable from and secured by ad
valorem assessments as herein provided.
19. Parking District. Said contemplated improvements~ in
the opinion of the City Council of said City~ are of more than local
or ordinary public benefit, and said Council does hereby make the
costs and expenses thereof chargeable upon an assessment district~
which district said Council declares to be the district benefited
by said improvements and to be assessed to pay the costs and expenses
thereof, the exterior boundaries of which are described as follows:
Commencing at the point of intersection of the south
line of Lewis Street with the west line of the alley
along the S. P. Railway right-of-way, thence south along
the west line of said alley to its intersection with the
north line of Sixth Street; thence westerly along the
north line of Sixth Street to the rear lot line of the
lots abutting on the west side of Eigleberry Street;
thence north along the rear line of said lots on the
west line of Eigleberry Street to the south line of
Fourth Street; thence north along the south side of
Fourth Street to the west side of Monterey Street; thence
south along the west line of Monterey Street to the
westerly projection of the south line of Lewis Street;
thence north along said line of Lewis Street and its said
projection to the point of commencement.
The properties so benefited and the boundaries thereof are
more particularly shown on the map of said assessment district on
file in the office of the City Clerk of said City to which reference
is hereby made for a more detailed description thereof.
20. Public Property. Said City Council further declares
that all public streets, highways and other public property within
said assessment district, in use in the performance of a public
function as such, shall be omitted from the assessment hereafter to
be made to cover the costs and expenses of said improvements.
21. Maintenance District. By said last named resolution a
parking improvement and maintenance district was formed for the pur-
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pose of paying the costs and expenses of acqulrlng~ constructing,
reconstructing, installing, extending, enlarging~ repairing, improv-
ing, maintaining, and operating public automobile parking places
therein by the City, the exterior boundaries of which shall be
coterminous with the exterior boundaries of the assessment district
above described, to be known as Parking District No. l~ pursuant to
Article 5~ Chapter 5~ of the Gilroy Improvement Procedure Code.
22. Rules and Rates. The Council shall operate, manage
and control the parking places and make and enforce all necessary
rules for their use.
23. Contributions. The City Council may make annual or
other periodic contributions~ payments or transfers of funds to the
Bond Fund of this issue, from the general fund or any other funds
available therefor, or from the proceeds of any general obligation
bonds~ special assessments and assessment bonds or other legal
charges imposed~ levied or issued therefor.
24. Budgets. Annually, at the time of preparing the City
budget, the Director of Finance shall certify to the City Council the
total amount required to pay the principal of and interest on said
bonds before the proceeds of a tax other than the one for the forth-
coming year shall be available therefor, and the amount necessary
to be raised by assessment for said forthcoming year after having
credited any moneys that shall remain in said Bond Fund and be
available therefor, and after having made adequate allowance for
estimated delinquencies.
25. Ad Valorem Tax. The City Council of said City
shall annually, until all of the bonds and interest thereon have been
paid~ levy an ad valorem assessment upon all lands within said dis-
trict, except publicly owned property, which levy shall be in an
amount clearly sufficient, together with any moneys which are or may be
in the bond fund and after making adequate allowance for estimated
delinquencies~ to pay all of the principal of and interest on said
bonds which shall become payable before the proceeds of another such
levy shall be available therefor.
26. Method of Collection. Said special assessment levy
shall be levied and collected upon the last equalized secured and
utility tax rolls upon which general City taxes are collected. It
shall be in addition to all other taxes levied for general City pur-
poses~ and shall be levied, computed~ entered~ collected and enforced
in the same manner and by the same persons and at the same time, and
with the same penalties and interest, as are other taxes for City pur-
poses~ and all laws applicable to the levy, collection and enforcement
of taxes for City purposes are hereby made applicable to said special
assessment levy, and be subject to redemption within one year from the
date of sale in the same manner as such real property is redeemed from
the sale for general City taxes, and if not redeemed shall in like
manner pass to the purchaser.
27. Supplemental Bond Remedy. In the event of a delinquency
in the payment of any installment of the assessment levied upon any
benefited properties for the payment of the principal and interest of
said bonds, there is a mandatory duty on the part of the City to
transfer an amount equal to the amount of such delinquency, with
penalties and costs, from available funds of the City, to the Bond
Fund of said bonds, and in the event such funds are not available,
to levy annually a special tax therefor up to Ten Cents (10~) on the
One Hundred Dollars ($100) of all taxable property in the City, which
duty is a continuing mandatory duty on the part of the City Council
during the entire life of the bond issue~ if assessments against the
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benefited real properties in the assessment district continue to be
in default, and cumulative up to said Ten Cents (10~).
28. Equal Parity. All of the bonds of this issue hereby
authorized to be issued shall be equally and ratably secured without
preference or priority by reason of number, date of bonds, divisions,
date of sale, or of execution or delivery, other than as herein pro-
vided for default, by such lien upon the revenues herein pledged and
on the proceeds of said special assessment levies, in accordance with
the provisions of this resolution.
29. Bond Fund. During the period that any of the bonds
of this issue, or any interest accrued or to accrue thereon, are out-
standing and unpaid, there shall be created and maintained in the
books of account of the City a fund to be known as Parking District
No. 1 Bond Fund, into which shall be deposited any accrued interest
received upon the sale and delivery of any of the bonds of this issue
and assessment levy proceeds as herein provided. All sums required
for the maturity of principal of or installment of interest on the
bonds shall be transferred and deposited in the Bond Fund at least
thirty (30) days prior to the date thereof. All moneys in this fund
shall be used and withdrawn solely for the purpose of the payment of
the principal of and interest on the bonds of this issue as the same
shall become due and payable. After the full payment thereof, any
balance in the fund shall be used for maintenance of the Project.
30. Sale of Property. In the event that any parcel of
property acquired from the proceeds of these bonds, or any improve-
ments, extensions or replacements thereof or additions thereto shall
hereafter be sold and disposed of, either during or after the term
of the bonds, the proceeds of the sale shall be used for the follow-
ing purposes and in the following order of priority:
(a) For the purchase of other off-street parking
facilities for the parking district, or for
improvements, additions and extensions to the
existing facilities therein.
(b) To pay the principal of and interest on the park-
ing bonds of this issue or any additional parking
bonds of the district then outstanding.
(c) To repay to the then owners of the fee title of
the then several parcels of real property within
the parking district, in the ratio of the assessed
value of each parcel of land as to which the last
ad valorem levy was made.
Values shall be as shown on the last equalized assessment
roll, on the roll on which City taxes are then collected. Owners
shall be as shown on said roll, or as known to the officer who col-
lects taxes for the City. Lands shall be taxable lands.
31. Modifications. All of the provisions of this Indenture
shall constitute a contract between the City and the holder or holders
of the bonds hereby authorized, and from and after the sale and delivery
of any of the bonds, no amendment, alteration or modification of the
bonds or of the coupons appertaining thereto or of this Indenture
which shall impair, impede or lessen the rights of the holders of the
bonds or coupons appertaining thereto then outstanding shall be made
without the prior written consent of the holders of at least seventy-
five per cent (75%) of the aggregate principal amount of bonds then
outstanding. Any such amendment, alteration or modification which
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shall have received the written consent of the holders of said per-
centage of said outstanding bonds as provided in this Section shall
be binding on the holders of all of the bonds and coupons appertaining
thereto, either attached to or detached from said bonds.
32. Default, Order of Payment. In the event that the amount
in the bond fund shall be insufficient at any time to pay the princi-
pal of and interest on all bonds of this issue then due, said bonds
and coupons shall be so endorsed and numbered consecutively in the
order of presentation and shall thereafter be paid from available
funds in the order of said numbers, as provided by law.
In the event there shall be insufficient funds to pay the
principal of any bond then due, the City may, with the consent of the
holder thereof, refund such bond by the issuance of a new bond matur-
ing after the maturity to the last bond issued hereunder, but other-
wise on a parity as to payment of principal of and interest with the
bonds issued hereunder, and exchange such bond for such matured bond
and in such event such action shall not be deemed a default hereunder.
33. Bondholder Remedies. Subject to any contractual limita-
tions binding upon the holders of any of the bonds (including, but
not limited to, any limitations upon the exercise of any remedy to
the bondholders holding a specific proportion or percentage of such
bonds), any holder of bonds shall have the right, for the equal bene-
fit and protection of all holders of bonds of said authorized issue
similarly situated:
(a) Accounting. By action or suit in equity to require
said City and said Council to appoint as if they
were the trustees of an express trust;
(b) Injunction. By action or suit in equity to enjoin
any acts or things which may be unlawful or in viola-
tion of the rights of the bondholders; or
(c) Mandamus. By mandamus or other suit, action or pro-
ceeding at law or in equity to enforce his rights
against said City and said City Council and any of
its officers, agents or employees, and to require and
compel said City or said Councilor any such officers,
agents or employees, to perform and carry out its and
their duties and obligations under the law and its
and their covenants and agreements with bondholders
as provided in this resolution.
34. Nature of Remedies. As to remedies of the bondholders:
(a) Cumulative. No remedy conferred hereby or by the
law upon any holder of bonds is intended to be exclu-
sive of any other remedy, but each such remedy is
cumulative and in addition to every other remedy and
may be exercised without exhausting and without regard
to any other remedy conferred hereby or by the law or
by any other law.
(b) Waiver. No waiver of any default or breach of duty
or contract by any bondholder shall extend to or
shall affect any subsequent default or breach of duty
or contract or shall impair any rights or remedy
therein.
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(c) Delays. No delay or omission of any bondholder to
exercise any right or power accruing upon any default
shall impair any such right or power or shall be
construed to be a waiver of any such default or
acquiescence thereof.
(d) Enforcement. Every substantive right and every
remedy conferred upon the bondholders may be enforced
and exercised from time to time and as often as may
be deemed expedient.
35. Inspection. The original purchasers and the subsequent
holders of any of the bonds of this issue shall have at all times the
right to inspect the records, accounts and data of the City, make
copies thereof and may inspect their properties at all reasonable
times upon request, relating to said facilities.
36. Transcript. The Clerk and Director of Finance are
hereby authorized and directed to prepare and furnish to the purchas-
ers of the bonds issued hereunder certified copies of all ordinances
and resolutions of the Council relating to the Project and to the
issuance of bonds and all other proceedings and records of the City
showing the right, power and authority to issue said bonds and provide
the security therefor and such certified copies and certificates shall
be deemed representatives of the City as to all facts stated therein.
37. Sale of Bonds. Said bonds shall be sold in such manner
as the Council shall determine.
38. Delivery of Bonds. The Director of Finance shall de-
liver the bonds upon receipt of the purchase price and shall credit
the proceeds to the special fund and account for payment of the cost
of acquisition and construction of the Project, but the purchasers
shall not be required to see the proper application thereof.
39. Bond Form. Said bonds shall be substantially in the
following form:
No. $1,000
STATE OF CALIFORNIA
COUNTY OF SANTA CLARA
CITY OF GILROY
PARKING BOND OF 1965
FIRST DIVISION
UNDER AND BY VIRTUE of Bond Plan D, Article 5, Chapter 6 of
the Gilroy Improvement Procedure Code, the City of Gilroy (a municipal
corporation operating under a Freeholders' Charter and the Constitu-
tion of the State of California), for value received, will pay to
bearer, at the office of the Director of Finance, City Hall, Gilroy,
California, in lawful money of the United States, out of the fund
hereinafter designated, on the 2nd day of July, 19 , the sum of
ONE THOUSAND DOLLARS ($1,000), together with interest thereon at the
rate of per cent (~) per annum as evidenced by coupons attach-
ed hereto at the time of issuance (plus additional interest represented
by separate detachable coupons at the rate of ~ per annum from
, 19__, to and including , 19__),* for semiannual
* To be inserted when split interest rates represented by split
coupons are bid. In such event, additional coupons designated
IIA" shall be attached.
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interest payable on January 2 and July 2 of each year to the maturity
date hereof3 in lawful money of the United States. Unless this bond
is registered, such interest3 prior to maturity, shall be payable only
on presentation and surrender of the proper interest coupons hereto
attached as they respectively become due.
Bonds maturing by their terms on or before July 2, 19753
shall not be subject to call prior to their fixed maturity date.
Bonds maturing on or after July 23 19763 shall, by their terms be
subject to call and redemption" at the option of the CitY3 as a whole
or in part3 in inverse numerical order" on July 23 1975 (but not prior
thereto) or on any interest date prior to their maturity date or dates
at the principal amount thereof and accrued interest thereon to the
date of redemption3 plus a redemption premium equal to one quarter of
one per cent (1/4 of 1%) of such principal amount for each whole
twelve (12) months and for any remaining fraction of a twelve (12)
months' period from the date fixed for redemption to the maturity
date of such bond3 but not exceeding the interest rate stated in each
bond called. The City may als03 from time to time3 purchase any or
all of said outstanding bonds at prices offered. All bonds purchased
or called shall be cancelled and shall not again be reissued.
The Director of Finance shall cause a notice of redemption
to be published once at least thirty (30) days prior to the date of
call in a financial paper published in New York or Chicag03 or in
lieu thereof, may mail such notice by registered mail thirty (30)
days prior thereto to the last known holder or holders of any bearer
bonds so called, as shown by the records in his office. Notice of
redemption of any registered bond shall be given to the registered
owner by registered mail at least thirty (30) days prior to the date
of call.
If, upon presentation at maturity, payment of this bond is
not made as herein provided, interest hereon shall continue at the
same rate until the principal hereof is paid in full. The holder of
this bond has all the rights of a holder of a negotiable instrument
payable to bearer.
This bond is one of the First Division in the total amount
of One Hundred Ten Thousand Dollars ($110,000), of an issue of bonds
in the total estimated amount of One Hundred Fifty Thousand Dollars
($150,000). All of the bonds of said issue are of like tenor (except
for such variations as may be required to designate varying dates,
divisions, numbers, maturities, call provisions and interest rates"
if any). Said bonds are issued for the purpose of providing moneys
to finance the costs of acquiring" constructing, improving and extend-
ing automobile parking places and structures in or for Parking District
No.1, all as set forth and described in the resolution entitled IIA
Resolution of Preliminary Determination and of Intention to Acquire
and Improve Off-Street Parking Places and to Form Parking District
No. 1,11 adopted on June 15, 1964, and proceedings had pursuant thereto,
and in accordance with a resolution entitled IIA Resolution Determining
Convenience and Necessity, Ordering Acquisitions and Improvements and
DeclG.ring Formation of Parking District No.1," adopted on August 31,
1964, and a resolution entitled IIA Resolution Providing for the Issu-
ance of Bonds and Directing Levy of Ad Valorem Assessments to Pay the
Principal and Interest Thereof, Parking District No. 1,11 adopted on
May 17, 1965, by the Council of the City of Gilroy, California, after
due notices and public hearings having been held therein, as authoriz-
ed by the Constitution of the State of California, the Freeholders'
Charter of said CitY3 and Articles 4 and 5 of Chapter 5, and Articles
1 and 5 of Chapter 6 of the Gilroy Improvement Procedure Code, to all
of which reference is, hereby made for the obligations, duties, rights,
and privileges hereby created.
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This bond is payable exclusively out of Parking District
No. 1 Bond Fund~ as said fund appears upon the books of the Director
of Finance of said City, but, in accordance with the provisions of
said Code~ a special annual ad valorem assessment will be levied and
collected upon all the lands, excepting public property, within the
assessment district created in said proceedings therefor, in accord-
ance with the assessed valuations of said lands, in an amount clearly
sufficient to pay the principal of and interest on said bonds as the
same shall become payable, until all of said bonds and the interest
thereon are paid in full.
In the event of a delinquency in the payment of any install-
ment of the assessment levied upon any benefited properties for the
payment of the principal and interest of said bonds, there is a manda-
tory duty on the part of the City to transfer an amount equal to the
amount of such delinquency, with penalties and costs, from available
funds of the City, to the Bond Fund of said bonds~ and in the event
such funds are not available, to levy annually a special tax therefor
up to Ten Cents (10~) on the One Hundred Dollars ($100) of all taxable
property in the City, which duty is a continuing mandatory duty on the
part of the City Council during the entire life of the bond issue,
if assessments against the benefited real properties in the assessment
district continue to be in default~ and cumulative up to said Ten
Cents (10~).
Annually, at any time prior to the time the levy is made,
or at such other time as it shall determine, the City Council is
authorized to transfer to the bond fund of said bonds, from available
funds, such amount or amounts as it shall determine. Each of the
bonds of this issue is equally and ratably secured without preference
or priority by reason of number, division, date, date of sale or of
execution and delivery of the bonds, other than as provided for default
in the bond resolution.
This bond shall be subject to registration as to principal
and interest upon written request of the o\vner and presentation of
the bond to the Director of Finance for registration. Thereafter,
the principal hereof and interest hereon shall be payable only to such
registered owner. Bonds may also be registered as to principal only,
in which event the coupons shall not be removed. Registered bonds may
be de-registered and again become payable to bearer.
IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions
and things required by the Constitution and the laws of the State of
California and the Charter and ordinances of said City, to happen and
to be performed, precedent to and in the issuance of this bond~ have
been done, have happened and have been performed in regular and due
form time and manner as required by law, and this bond is made conclu-
sive evidence thereof.
IN WITNESS WHEREOF, the City Council of the City of Gilroy
has caused this bond to be signed by the Mayor and Director of Finance
of said City~ and countersigned by its City Clerk and has caused its
Clerk to affix thereto its corporate seal~ all on the 2nd day of July~
1965.
Countersigned:
Mayor
Director of Finance
City Clerk
( SEA L)
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40. Interest Coupons. The interest coupons attached to each
of said bonds and evidencing the interest to accrue thereon, shall be
numbered consecutively and be substantially in the following form, to
wi t:
CITY OF GILROY, CALIFORNIA
PARKING BOND OF 1965, FIRST DIVISION
Dated: July 2, 1965
The sum shown hereon is payable to bearer (unless $
the bond is registered as to principal and interest)
in lawful money as interest at the office of the
Director of Finance, City Hall, Gilroy, California Coupon No.
(subject to any right of prior redemption reserved
in the bond herein designated).*
On
2, 19_
BOND NO.
Director of Finance
*
To be inserted in all coupons on bonds maturing on or after
July 2, 1976.
41. Registration Form. The form of the endorsement on said
bonds for registration shall be as follows:
This bond is registered in the name of the registered owner
whose name and address appear last in the space below and both the
principal of and interest on this bond are payable to such registered
owner, unless it is registered as to principal only, in which case
only the principal is so payable.
Note: There must be no writing in the space below
except by the Director of Finance.
Date of Type of Name of Address of Signature of
Registry Registration* Registered Owner Registered Owner Dir.of Finance
Principal Only
and Interest
Principal Only
and Interest
Principal Only
and Interest
* In the event registration is as to principal only, strike the words
"and interest;lI if as to principal and interest strike the word lIOnly."
42. Bonds Incontestable. After the sale and delivery of the
bonds by the City, the bonds and coupons appertaining thereto shall
be incontestable by the City.
43. Unconditional Obligation. Except only as provided
herein for alteration of the bonds or this Indenture, nothing in this
Indenture or in the bonds or in the coupons contained shall affect
or impair the obligation of the City, which is absolute and uncondi-
tional, to pay the principal of and interest on the bonds to the
respective holders of the bonds and coupons at the respective dates
of maturity, or upon prior redemption, as herein provided, and out
of the assessments herein pledged for such payment, or affect or impair
the right of action, which is also absolute and unconditional, of
such holders to institute suit to enforce such payment by virtue of
the contract embodied in the bonds and coupons.
44. Performance of Essence. The performance of the duties
prescribed in this Indenture and in the law pursuant to which it was
adopted, by the City or its proper officers, agents or employees, is
of the essence of City's contract with the bondholders.
12.
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45. Recourse to Bond Law. Each taker and subsequent holder
of the bonds and attached or detached coupons has recourse to all of
the provisions of this Indenture and of Bond Plan D in the Gilroy
Improvement Procedure Code, and is bound by their terms.
46. Indenture is Covenant. Each and all of the terms of
this Indenture shall be and constitute a covenant on the part of the
City to and with each and every bondholder from the time the bonds are
issued hereunder.
47. Period of Agreement. Whenever all of the bonds and all
interest then accrued thereon shall have been fully paid and discharg-
ed, the agreements of this Indenture contained shall cease and termi-
nate, and the City shall be under no further obligation as herein
required, or otherwise to do or perform any of the covenants, condi-
tions or agreements in this Indenture contained.
48. Construction. This Resolution shall be liberally con-
strued to the end that its purpose may be effected. No error, irregu-
larity, informality, and no neglect or omission herein or in any pro-
ceeding had pursuant hereto which does not directly affect the juris-
diction of the City Council shall void or invalidate this Resolution
or such proceeding or any part thereof, or any act or determination
made pursuant thereto.
49. Legality. If any section, subsection, sentence, clause
or phrase of this Resolution be for any reason held to be unconstitu-
tional such decision shall not affect the validity of the remaining
portions of this Resolution. The City Council hereby declares that
it would have passed this Resolution and each section, subsection,
sentence, clause or phrase thereof irrespective of the fact that any
one or more sections, subsections, sentences, clauses or phrases be
declared to be unconstitutional.
/s/ Kenneth L. Peterson
Mayor
ATTEST:
/s/ Susanne E. Payne
City Clerk
*
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13.
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I hereby certify that the foregoing resolution was duly
and regularly ad~pted and passed by the City Council of the
City of Gilroy, Californi2, at a regular meeting thereof held
on the 17th day of May, 1965J by the following vote of the
members thereof:
AYES, and in fav'Jr thereof, Council Members: Allemand,Duffin,
Goodrich,Quartiroli, and Petersen.
NOES, Council Members:
ABSENT, Council Members:
None
Eckard and Wentworth
City Clerk of the City of i ray
/
APPROVED:
~
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Mayor