R-50-030
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A RESOLUTION AUTHORIZING THE ISSUANCE
OF $335,000 REFUNDING BONDS OF THE CI'I'Y
OF CLERMONT, FLORIDA) FOR THE PURPOSE OF
HEFlmDING A LIKE AMOUNT OF VALID OUT-
STANDING BONDS OF SAID CITY AND PROVIDING
FOR THE }~NER OF ISSUANCE AND PAYMENT
THEREOF.
BE I'l' RESOLVED BY THE CITY COUNCIL OF THE CITY OF CLERMONT,
FLOHIDA:
1. That the City Council has ascertained and determined:
A. That there have heretofore been duly issued bonds of
said City in the amount of $436,750, dated July 1, 1939 and known
as "City of Clermont, Florida, Refunding Bonds", being part of an au-
thorized issue of $442,150, which bonds were validated by a decree of
the Circuit Court of Lake County, rendered April 18, 1940, which decree
was affirmed by the Supreme Court of Florida, and that $342,500 of
said bonds are now outstanding, consisting of 50 bonds, numbered 855
to 860 and 864 to 907 being in the denomination of $250, and 660 bonds
bearing the following numbers in the denomination of $500 each,(num-
bers :inclusive): 1 to 5; 9; 19 and 20; 27 to 44; 46 to 51; 53 to 56;
63 to 88; 91 to 121; 131 to 134; 143 to 145; 156 to 189; 204 to 207;
212 to 276; 278 to 305; 308 to 329; 342 to 359; 362 to 399; 401 to 426;
429 to 432; 434 to 443; 449 to 451; 454; 473 to 478; 483 to 501; 511 to
513; 515 to 531; 534 to 537; 548; 550 and 551; 553 to 591; 596 to 650;
652 to 685; 695 to 698; 702 to 769; 777 to 785; 791 to 797; 799; 801
and 802; 804 to 812; 814 to 819; 824; 826; 835 to 852; 854.
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B. That all of said outstanding bonds mature on July 1,
1969, but are redeemable at the City's option on any interest payment
date prior to maturity at par plus accrued interest, and that the rate
of interest, payable semi-annually, on said bonds is now three per
cent (3%) per annum, and will increase to three and one-half per cent
(3~-%) on July 1, 1951, to four per cent (4~~) on July 1, 1955, to four
and one-half per cent (4i%) on July 1, 1959 and to five per cent (5%)
on July 1, 1964.
C. That all of the outstanding bonds above described
constitute valid subsisting obligations of the City of Clermont and
represent an extension and renewal of bonded indebtedness incurred
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prior to November 6, 1934, for the payment of which the faith and
credit of the City and an ad valorem tax without limitation of rate
or amou..'1 t are pledged.
D. That the City will be able to retire $7,500 of said
bonds ·wi th available funds and that it will be to the advantage of the
City and its taxpayers to refund the remainder thereof, amourit to
$335,000, by the issuance of refunding bonds bearing a lower rate of
interest than the outstanding bonds.
2. That for the purpose of refunding as of July 1, 1950,
the bonded indebtedness described in Paragraph 1 hereof, there be is-
sued pursuant to the General Refunding Act of 1931, being Chapter 132,
Florida Statutes, 1941, bonds of the City of Clermont in the amount of
$335,000, to be designated ¡t'City of Clermont, Florida, Refunding Bonds,
Issue of 1950.1f
Said refunding bonds shall be dated July 1, 1950, numbered
1 to 335, inclusive, shall be in the denomination of $1,000 each, shall
bear interest at three per cent (3%) per annum, payable January 1 and
July 1, and, subject to the right of prior redemption with respect to
the bonds numbered 266 to 335, inc1l1si ve, maturing on and after July
1, 1967, as hereinafter provided, shall mature in numerical order on
July 1 in the years and amounts as follows: $15,000 in 1952 to 1954,
inclusive; $16,000 in 1955 and 1956; $17,000 in 1957 and 1958; $18,000
in 19~~ and 1960; $19,000 in 1961'and 1962; $20,000 in 1963 to 1968,
inclusive; and $30,000 in 1969.
The bonds maturing in the years 1967 and 1968, being bonds
numbered 266 to 305, incl~sive, shall be redeemable prior to their
stated dates of maturity, at the option of the City, as a whole or in
part but in inverse numberical order if less than all, on July 1, 1960
or on any interest payment date thereafter at par, plus accrued in-
terest to the date of redemption, plus a premium of 2% of the par
value thereof if redeemed in any of the years 1960 to 1965, inclusive,
or a premium of 1% if redeemed in any of the years 1966 to 1968 prior
to maturity. The bonds maturing in the year 1969, being bonds numbered
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306 to 335, inclusive, shall be redeemable pior to their stated date
of maturity, at the option of the City, as a whole or in part but
in inverse numerical order if less than all, on July 1, 1955 or on
any interest payment date thereafter at pal', plus accrued interest
to the date of redemption, plus a premium of 2% of the par value
thereof if redeemed in any of the years 1955 to 1965, inclusive, or 1%
if redeemed in any of the years 1966 to 1969, inclusive, prior to
ma turi ty.
3. Said refunding bonds shall be signed by the Mayor and
attested by the City Clerk, and shall have the seal of the City
affixE~d thereto. All interest coupons attached to said bonds shall
bear the fac simile signatures of said officers.
4. Said refunding bonds shall be in substantially the
following form:
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li'NITED STATES OF AMERICA
STATE OF FLORIDA
COUN TY OF LAKE
CITY OF CLERMON T
REFUNDING BOND, ISSUE OF 1950
10.
$1,000
The City of Clermont, Lake Cou~ty, Florida, is justly
indebted and for value received, hereby promises to pay to bearer,
on the first day of July, 19
, the principal sum of One Thousand
Dollars ($1,000), together with interest thereon from the date here-
of until this bond is paid at the rate of three per cent (3%) per
annum, said interest being payable semi-arillually on January 1 and
July 1 in each year. Both principal hereof and interest hereon are
payable in lawful money of the United States of America at Irving
Trust Company, New York City, New York, or at Citizens Bank of
Clermont, Clermont, Florida, at the option of the holder, upon pre-
sentation and surrender of this bond and the interest coupons hereto
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annexed as they severally mature.
This Bond is issued under the authority of and in full com-
pliance with the constitution and statutes of the State of Florida,
including the General Refunding Act of 1931, being Chapter 15,772,
General Laws of Florida of 1931, (Chapter 132, Florida Statutes,
c
1941) and the Charter of the City of Clermont, Florida, and pur-
suant to a resolution passed by the City Council of said City for
the purpose of refunding valid sUbsisting bonded indebtedness of
said Gi ty incurred prior to November 6, 1934.
(The following paragraph is to be inserted in
the bonds maturing in the years 1967 and 1968,
numbered 266 to 305, inclusive.)
The City of Clermont reserves the right to redeem this bond
on July 1, 1960, or on any interest payment date thereafter, prior to
maturity at par, plus accrued interest to the date of redemption,
plus a premium of 2% of the par value thereof if redeemed in any of
the years 1960 to 1965, inclusive, or a premium of 1% if redeemed in
any of the years 1966 to 1968, inclusive, prior to maturity. In the
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event that this bond is called for redemption, notice thereof shall
be published at least once not less than thirty days before the date
fixed for redemption in a newspaper pUblished in Lake County', Florida,
and in a financial newspaper published in the City of New York. If
this bond shall not be presented for payment on the date so fixed for
redemption it shall cease to bear interest from and after said date.
(The foregoing paragraph is to be inserted also in
the bonds maturing in 1969, numbered 306 to 335, in-
clusive, except that in the two places where the year
1960 is mentioned the year 1955 shall be stated.)
It is hereby certified and recited that all acts, con-
ditions and things required to happen, exist and be performed
precedent to and in the issuance of this bond, have happened, exist
and have been performed in due time, form and manner, as required
by the Constitution and Laws of the State of Florida and the Charter
of the City of Clermont, Florida; that the total indebtedness of
said City, including this bond and the issue of which it forms a
part, does not exceed and that the total indebtedness of said City
at the creation of the indebtedness hereby refunded, including said
indebtedness, did not then exceed any Constitutional or statutory
limitation thereon, and for the prompt and full payment of this
bond and the interest thereon, the full faith and credit of said
City are hereby pledged.
The City of Clermont, Florida, covenants with the holder
of ~lis bond that for the payment of the principal and interest
hereof it will levy taxes in an amount sufficient to provide there-
for upon all property within the territorial limits of said City,
excepting that property which was exempt from municipal taxation
by the Constitution of Florida as it was in force and effect
immediately prior to November 6, 1934. The City further covenants
that all taxes levied for the payment of the :principal and interest
on this bond, including taxes upon homesteads, will be collected in
cash at the same time and in the same manner as ore ra ting and gov-
ermental ad valorem taxes levied by said City, and the rights and
remedies for the enforcement of the indebtedness hereby refunded
shall appertain to this bond and the taxes securing the same
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independently of any restrictions or limitations thereon enacted
by the Legislature of the State of Florida.
IN WITNESS WHEREOF, said City of Clermont, Lake County,
Florida, has caused this bond to be signed by its Mayor and at-
tested by its City Clerk, under its corporate seal, and the inter-
est coupons hereto attached to be executed with the facsimile
signatures of said Mayor and City Clerk, all as of the 1st day of
.
July, 1950.
Mayor
ATTEST:
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Ci ty Clerk
(VALIDATION CERTIFICATE)
Validated and confirmed by decree of the Circuit Court
of the Fifth Judicial Circuit of the State of Florida, in and
for ~ake county, rendered
, 19.5Q.
Clerk of said Circuit Court.
(FORM OF COUPON)
No.
On the first day of _
, 19_, the City of Clermont,
Florida, will pay to the bearer the sum of $15.00, lawful money
of the United States of America, at Irving Trust Company, New York
City, New York, or at Citizens Bank of Clermont, Clermont, Florida,
at.bearer's option, being six months' interest then due on its Re-
funding Bond Issue of 1950, dated July 1, 1950, No.
.
Mayor
~ ~ß.A/
Ci ty Clerk
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5. That for the payment of the principal of and interest
on all of the refunding bonds "Thich may be issued pursuant to this
resolution the faith, credit and taxing power of the City of Clermont,
Florida, are hereby irrevocably pledged to the same extent and with
like force and effect as the same were pledged for the payment of
the indebtedness refunded by said bonds, and the City Council of
said City, hereby covenants and agrees with the holders of said re-
funding bonds that the City will make prompt payment of the same when
due.
6. That for the purpose of adequately providing for the
payment of the interest on and principal of the refunding bonds here-
in authorized to be issued, the City agrees that there shall be levied
annually a tax sufficient to pay the interest on said bonds as it falls
due semi-annually and the principal thereof at maturity, which tax
shall not be less than $25,000 annually so long as any of said refunding
bonds are outstanding, or until sufficient funds have been provided and
set aside for the payment of the principal and interest thereof. The
City further agrees with the holders of the refunding bonds issued
under the authority of this resolution that it will levy taxes at
such times and at such rates as to assure the collection of the amount
necessary to produce the funds herein provided for the payment of the
principal of and interest on said bonds, and that the determination
of such amount shall be based upon the experience of co]ectibility
of ad valorem taxes for the three preceding years.
The City further agrees that it will diligently enforce
collection of all delinquent taxes and that it will not accept pay-
ment of any tax or part thereof levied against any parcel ~ property
for operating or governing the City, unless all ad valorem taxes levied
against the same parcel of property for the payment of the principal
and interest of the refunding bonds authorized hereby are paid at the
same time.
The City further agrees that in order to create and maintain
a reserve fund to insure the prompt payment of the principal and in-
terest of said refunding as they respectively become due there shall
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be levied an ad valorem tax in addition to the taxes required by this
paragraph, sufficient to produce, not later than July 1, 1952, the
sum of $10,000, which sum shall be used only for the purpose of paying
the principal of and interest on the refunding bonds herein authorized
in thE~ event of a deficienc;ý in the other revenues herein provided for
that purpose. Whenever such fund or a part thereof shall be used for
the purpose herein authorized sufficient ad valorem taxes shall be
included in the next ensuing tax levy to restore to said fund the
amount so used. Said reserve fund shall be kept as a special fund
and used solely for the purpose herein authorized; provided, however,
that the moneys in said fund may be invested in United States govern-
ment bonds.
7. That all of the refunding bonds herein authorized to be
issued which shall at any time be outstanding are hereby declared to
have the same security and source of payment as the indebtedness re-
funded thereby and said refunding bonds shall constitute a continua-
tion, extension, merger and renewal of the indebtedness refunded, and
only such property as was exempt from taxation under the laws in force
at the time the original indebtedness was incurred shall be exempt from
taxation to pay the interest upon and principal of said refunding bonds.
The City reserves the right to levy such taxes as may lawfully be im-
posed for the payment of such refunding bonds upon all property within
the boundaries of the city as they existed at the time of the incurring
of the indebtedness refunded, which is not within the existing terri-
torial limits of the City. All rights and remedies which were available
for the support and enforcement of the bonded indebtedness refunded by
the bonds authorized by this resolution shall be available for the
support and enforcement of said refunding bonds.
8. That the City Attorney be and he hereby is authorized
and directed to institute appropriate proceedings in the Circuit Court
of the Fifth Judicial Circuit of Florida, in and for Lake County, for
the validation of said refunding bonds and the Mayor is hereby author-
iz ed to verify any pleading in such proceedings.
9. That if any error has been made in the numbers or de-
nominations of the outstanding refunding bonds as set forth in Para-
graph 1. A of this resolution, such error shall be immaterial, pro-
vided the bonds refunded by the refunding bonds herein authorized
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are part of the issue of bonds described in said paragraph and the
amount of the refunding bonds issued under the authority of this
resolution does not exceed the amount of outstanding bonds received
in exchange therefor, or retired with the proceeds thereof.
10. That after said refunding bonds have been validated they
shall be executed as hereinbefore provided and shall be deposited
with tbe Irving Trust Company of New York City or such other bank
or trust company as may hereafter be designated by the City Council,
with i.nstructions to exchange them for the bonds and evidence of
interest accruals thereon described in paragraph 1 hereof and authorized
to be refunded, on the basis of par for par and to cancel all out-
s tanding bonds and coupons received in exchange for the refunding bonds
and return them to the Ci ty Clerk with a report indicating the par-
ticula.r refunding bonds delivered in exchange therefor, provided,
however, that any of said refunding bonds which are not exchanged for
outstanding bonds may be sold in the manner provided by law and the
proceeds used for the redemption and payment of said outst~ding bonds.
11. That if any clause, section or provision of this resolu-
tion or of the refunding bonds hereby authorized shall be judicially
declared to be unenforcible by any court of final jurisdiction, such
declaration shall not affect or invalidate the remainder thereof and
if any of the refunding bonds hereby authorized be adjudged illegal
or unenforcible the holders thereof shall be entitled to be subrogated
to the rights of the holders of the bonds provided by this resolution
to be refunded, and as such enforce their claims for payment.
12. This resolution shall take effect immediately upon its
adoption.
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