§ 23-127. Series 1979 bonds.

(a)

Date, amount, denomination and maturity. The series 1979 bonds shall be in the aggregate principal amount of $1,050,000.00, shall be designated "Sewerage System Revenue Bonds, Series 1979," shall be 210 in number and numbered 1 through 210 in the denomination of $5,000.00 each, and shall mature in order of serial numbers on December 1 in the following years and amounts, and series 1979 bonds maturing in such years shall bear interest from date of issue until paid or duly called for redemption, at the rates set forth in the following table opposite such years and amounts:

Year	Amount	Rate (percent)
1980	$20,000.00	9
1981	20,000.00	9
1982	20,000.00	9
1983	20,000.00	9
1984	25,000.00	9
1985	25,000.00	9
1986	30,000.00	9
1987	30,000.00	8.75
1988	30,000.00	8.25
1989	35,000.00	8.25
1990	40,000.00	8.25
1991	40,000.00	7.50
1992	45,000.00	7.50
1993	45,000.00	7.50
1994	50,000.00	7.50
1995	55,000.00	7.75
1996	60,000.00	7.75
1997	65,000.00	7.75
1998	65,000.00	7.75
1999	75,000.00	7.75
2000	80,000.00	7.75
2001	85,000.00	7.75
2002	90,000.00	7.75

 

(b)

Interest. The series 1979 bonds shall bear interest payable on each June 1 and December 1, commencing June 1, 1980.

(c)

Redemption. The series 1979 bonds maturing in the years 1980 through 1989 shall be payable at their respective stated maturity dates without option of prior payment, but series 1979 bonds having stated maturity dates in the years 1990 through 2002 shall each be subject to redemption and prepayment at the option of the city on December 1, 1989, and any interest payment date thereafter, in inverse order of serial numbers, at their principal amount and accrued interest plus the premiums, expressed as percentages of principal amount, set forth in the following table for the designated redemption dates:

Redemption Date	Premium
December 1, 1989 and June 1, 1990	2%
December 1, 1990 and June 1, 1991	1½%
December 1, 1991 and June 1, 1992	1%
December 1, 1992 and June 1, 1993	½%
December 1, 1993 and thereafter	Without premium

 

Not less than 30 days before the date specified for redemption of any series 1979 bond, notice of the call thereof shall be mailed by the city clerk/treasurer, by registered mail, to the holder, if known, and to the bank at which principal and interest are then payable, and shall also be published in one issue of the official newspaper of the city and in one issue of a financial newspaper published in the city of New York, New York. The city clerk/treasurer is directed to maintain a record of the names and addresses of the holders of prepayable series 1979 bonds so far as such information is made available to him, for the purpose of mailing such notices.

(d)

Payment. The principal of and interest on the series 1979 bonds shall be payable in any coin or currency of the United States of America which on the respective dates of payment is legal tender for public and private debts. The principal of and interest on the series 1979 bonds shall be payable at the main office of the First National Bank, in Missoula, Montana, or any successor paying agent designated in accordance with law. The city shall pay the reasonable charges and expenses of the paying agent.

(e)

Form. The series 1979 bonds and the interest coupons appurtenant thereto shall be in substantially the following form:

UNITED STATES OF AMERICA
STATE OF MONTANA
COUNTY OF CUSTER

CITY OF MILES CITY

SEWERAGE SYSTEM REVENUE BOND,
SERIES 1979

No.       $5,000

KNOW ALL MEN BY THESE PRESENTS that the city of Miles City (the City), a duly organized municipal corporation of Custer County, Montana, for value received promises to pay to bearer, solely from the Revenue Bond Account of its Sewerage System Fund, upon presentation and surrender hereof, the principal sum of Five Thousand Dollars ($5,000) on the first day of December, 19___, or, if this Bond is prepayable as stated below, on a date prior thereto on which it shall have been duly called for redemption, and to pay interest on said principal sum from said account from the date hereof until the principal sum is paid or, if this Bond is prepayable, until it has been duly called for redemption, at the rate of _____ percent (_____%) per annum. Interest is payable semiannually on June 1 and December 1 in each year commencing June 1, 1980, interest to maturity being represented by and payable in accordance with and upon presentation and surrender of the interest coupons appurtenant hereto. Both principal and interest are payable at the main office of the ___________, in ___________, in any coin or currency of the United States of America which on the respective dates of payment is legal tender for public and private debts.

This Bond is one of an issue in the principal amount of $1,050,000 (the Series 1979 Bonds), all of like date and tenor except as to serial number, maturity date, interest rate and redemption privilege, issued for the purpose of financing improvements to the municipal sewerage system of the city (the System), pursuant to and in full conformity with the Constitution and laws of the State of Montana and the ordinances of said city thereunto enabling, including Montana Code Annotated, Title 7, Chapter 7, Part 44, and Ordinance No. _____ of the city, duly enacted on ___________, 1979 (the Authorizing Ordinance).

The Series 1979 Bonds maturing in the years 1980 through 1989 are payable on their respective stated maturity dates without option of prior payment but those maturing in the years 1990 through 2002 are each subject to redemption and prepayment at the option of the city and in inverse order of serial numbers, on December 1, 1989, and any interest payment date thereafter, their principal amount and accrued interest plus the premiums, expressed as percentages of principal amount, set forth in the following table for the designated redemption dates:

Redemption Date	Premium
December 1, 1989 and June 1, 1990	2%
December 1, 1990 and June 1, 1991	1½%
December 1, 1991 and June 1, 1992	1%
December 1, 1992 and June 1, 1993	½%
December 1, 1993 and thereafter	Without Premium

 

Not less than thirty (30) days in advance of the date fixed for prepayment and redemption of any Series 1979 Bond, the city will mail notice of the call thereof to the holder, if known, and to the bank at which principal and interest are then payable, and will cause such notice to be published in the official newspaper of the city and in a financial newspaper published in the city of New York, New York. Holders of prepayable Series 1979 Bonds may register their names and addresses and the serial number of their bonds with the City Clerk/Treasurer for the purpose of receiving such mailed notice.

IT IS CERTIFIED, RECITED, COVENANTED AND AGREED that the city has fixed and established and will collect reasonable rates and charges for the services and facilities afforded by the System, in accordance with regulations of the Montana Public Service Commission, and has created a special Sewerage System Fund into which the gross revenues of the System, including all additions thereto and replacements and improvements thereof, will be paid, and a separate and special Revenue Bond Account in that fund into which will be paid each month from and as a first and prior lien on the Net Revenues (as defined in the Authorizing Ordinance) of the System then on hand, commencing July 1, 1979 an amount equal to not less than the sum of one-twelfth ( 1/12 ) of the total principal to become due during the next twelve (12) months and one-sixth ( 1/6 ) of the total interest to become due during the next six (6) months with respect to all outstanding bonds payable from that account and into which shall be paid additional Net Revenues, commencing July 1, 1980, sufficient to accumulate by June 30, 1985, and thereafter maintain a reserve equal to the maximum amount of principal and interest to fall due within any subsequent fiscal year on all such bonds; that the Revenue Bond Account will be used only to pay the principal of and interest on bonds issued pursuant to the authority herein recited, and such rates and charges will from time to time be made and kept sufficient to provide from the payment of current gross expenses of operating and maintaining the System and to produce in each fiscal year Net Revenues in excess of such current expenses, equal to one hundred and twenty-five percent (125%) of the maximum amount of principal of and interest on all outstanding bonds payable from the Revenue Bond Account in [this] and subsequent fiscal years; that additional bonds and refunding bonds may be issued and made payable from the Revenue Bond Account on a parity with the Series 1979 Bonds upon certain conditions set forth in the Authorizing Ordinance but no obligation will be otherwise incurred and made payable from the Net Revenues of the System whether or not such obligation shall also constitute a general obligation and indebtedness of the city, unless the lien thereof shall be expressly made subordinate to the lien of the Series 1979 Bonds and parity bonds on such Net Revenues; that all provisions for the security of the holder of this Bond set forth in the Authorizing Ordinance will be punctually and faithfully performed as therein stipulated; that all acts, conditions and things required by the Constitution and laws of the state of Montana and the ordinances and resolutions of the city to be done, to exist, to happen and to be performed in order to make this Bond a valid and binding special obligation of the city according to its terms have been done, do exist, have happened and have been performed as required; and that this Bond and interest hereon are payable solely from the Net Revenues of the System pledged and appropriated to the Revenue Bond Account and do not constitute a debt of the city within the meaning of any constitutional or statutory limitations or provisions and that the issuance of this Bond does not cause either the general or the special indebtedness of the city to exceed any constitutional or statutory limitation.

IN WITNESS WHEREOF the city of Miles City, Custer County, Montana, by its city council, has caused this Bond to be executed on its behalf by the facsimile signatures of the Mayor and City Treasurer and attested by the manual signature of the City Clerk, and its corporate seal to be affixed hereto, and the certificate on the reverse side hereof and the coupons appurtenant hereto to be executed by the facsimile signatures of said officers, and has caused this Bond to be dated as of December 1, 1979.

Attest:

(facsimile)
_____
City Clerk

(facsimile)
_____
Mayor

(facsimile)
_____
City Treasurer

 

(Seal)

(Form of Coupon)

No.

On the first day of June (December), 19___, unless the Bond described below is subject to and has been called for earlier redemption, the city of Miles City, Custer County, Montana, will pay to the bearer at the main office of the ___________ in ___________, ___________, from the Revenue Bond Account in its Sewerage System Fund, the amount shown hereon in lawful money of the United States of America for interest then due on its Sewerage System Revenue Bond, Series 1979, dated December 1, 1979, No. _____.

(facsimile)
_____
City Clerk

(facsimile)
_____
City Treasurer

(facsimile)
_____
Mayor

 

(Form of certificate to be printed on the reverse side of each Bond following the full copy of the legal opinion on the issue)

We certify that the above is a full, true and correct copy of the legal opinion rendered by bond counsel, on the issue of Bonds of the city of Miles City, Custer County, Montana, which includes the within Bond, dated as of the date of delivery of and payment for the Bond.

(facsimile)
_____
City Clerk

(facsimile)
_____
City Treasurer

(facsimile)
_____
Mayor

 

(f)

Preparation and delivery. The series 1979 bonds shall be prepared under the direction of the city clerk/treasurer and shall be executed on behalf of the city by the signature of the mayor and the city clerk/treasurer and countersigned by the city clerk/treasurer; provided that the signatures of two of such officers may be printed facsimiles thereof. The interest coupons appurtenant to the series 1979 bonds shall be executed and authenticated by the printed facsimile signatures of such officers, and on the reverse side of each series 1979 bond shall be printed a copy of the legal opinion to be rendered by bond counsel, authenticated by the certificate and facsimile signatures of such officers. The series 1979 bonds shall be sealed with the corporate seal of the city or a printed facsimile thereof. After registering the series 1979 bonds in the manner specified in MCA 7-7-4257, the city clerk/treasurer shall cause them to be delivered to the purchasers thereof, upon payment of the purchase price as specified in the contract of sale, and the purchasers shall not be obligated to see to the application of the purchase price.

(Code 1981, § 3.08.020)