03-21-1940 Regular Meeting
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MINUTES OF Iv:EETING OF CITY
COUNCIL, HELD ON MARCH 21, 1940
The City Council of the City of Clermont met
at the City Hall at 4 p.m. on Thursday, March 21, 1940.
Upon roll call, the following members were found to be
present: O. H. Keene>> F. B. Roe, Roy L. Lassiter,
Albert Mo Johnson and R. M. Stackhouse. City Clerk,
R. F. House and City Attorney Geo. F. Westbrook were
also present.
President Keene announced that the purpose of
the meeting was to consider matters with reference to
the refunding of the bonds of the City and that the
meeting had been called at the request of the City
Attorney. He requested Mr. Westbrook to explain the
nature of the business that was to be acted upon. City
Attorney Westbrook explained that he was ready to pro-
ceed with the validation of the refunding bonds and that
it was necessary for the Council at this time to act
upon a resolution authorizing the issuance.
CounCilman Roe introduced the following resolu-
tion and moved its adoption. The motion ~as seconded by
Councilman Lassiter. The resolution was read as follows:
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RESOLUTION OF THE CITY OF CLERMONT, IN
LAKE COUNTY, FLORIDA, AUTHORIZING THE REFUNDING
OF THE CITY'S OUTSTANDING BONDED INDEBTEDNESS
BY THE ISSUANCE OF $442,150.00 REFUNDING BONDS,
AND tw+o,1l7.00 DELINQUEN~ TAX NOTES. .____
WHEREAS, the City of Clermont, Florida, has outstanding
valid funded indebtedness hereinafter more particularly described,
and a considerable part of such indebtedness and interest thereon
has matured and the balance thereof, and additional accruals of
interest thereon, will mature in such amounts and at such times
as to impose upon the City too great a burden for it to meet, and
it is in the interest of the City and its creditors that such
indebtedness be readjusted and refunded; and
WHEREAS, suoh indebtedneu was incurred prior to
January 1, 1930, and the holders thereof, by virtue of the la~
in existence at the time of the incurring or assumption of such
indebtedness, have the legal right to require that taxes for the
payment thereof be levied on all olasses of property in said City
subject to taxation at the time suoh indebtedneu was incurred,
including homesteads exempted from taxation by the amendment
ratified November 6, 1934, adding Section 7 to Article X of the
Constitution of Florida, and to require the collection of such taxes
in oash at the same time and in the same manner as other taxes levied
by the City, and otherwise to enforce their claims and the seourity
therefor independently of any restriotions or limitations upon the
enforcement thereof enacted by the State Legislature or imposed upon
said City in any manner since January 1, 1930, and, while a considerable
number of such oreditors are willing to extend the maturity of their
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claims and agree to a reductioh in principal thereof and interest thereon,
nevertheless, they are not willing to so adjust and refund their olaims
unless the refunding obligations issued in exchange therefor have the
same security and are entitled to the same remedies and rights of
enforoement as existed prior to January 1, 1930, and now appertain to
such outstanding olaims; and
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WHEREAS, in order to permit of a readjustment and refunding
that will be acce~table to its oreditors, the City deems it advisable
and neoessaryto authorize the issuance of refunding obligations under
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suoh terms and conditions as will reserve to the holders thereof the
rights, securities and remedies now available to them as holders of
the City's present outstanding indebtedness,
NOW, THEREFORE. BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF CLERMONT, LAKE COUNTY. FLORIDA.
SECTION 1.
It is hereby found and determined that the
following desoribed indebtedness constitutes valid outstanding funded
indebtedness of the City of Clermont. take~County. Florida, incurred
prior to January 1. 1930:
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Date of Interest Balance due
Is sue Purpose &: Title Rate Ju.ly 1. 1939
9/1/1920 Water Bonds 6% $ 30.000
7/1/1922 General Bonds 6% 65,000
7/1/1924 General Bonds 6% 47.300.
7/1/1924- Improvement Bonds 6% 15,000
10/1/1924- Improvement Bonds 6% 19,000
1/1/1925 Improvement Bonds 6% 26.000
1/1/1925 Improvement Bonds 6% 11,000
4(1/1925 Improvement Bonds 6% 124-.000
7/1/1925 General Bonds 6% 38,000'
1/1/1926 Improvement Bonds 6% 122,000
1/1/1926 Improvement Bonds 6% 86,000
6/1/1926 Improvement Bonds 6% 56,000
7/1/1927 Capital Funding Bonds 6%
Series 1 120.000
4/1/1928 Capi tal Fund Bonds 6%
Series 2 59.000
7/1/192$ Refunding Bonds, Series A 6% 66,000
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All of the ,above desoribed bonds, aggregating Eight Hundred
Eighty-four Thousand Three Hundred ($884,300.00) Dollars, having been
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duly issued for various municipal purposes, now constitute valid
outstanding indebtedness of the City of Clermont for the payment of whioh
all property within the territorial limits of the City of Clermont,
excepting only such property as was exempted from municipal taxation
by the Constitution of Florida as it existed immediately prior to
November 6, 1934. is subjeot to taxation without limitation of rate or
8JIlount.
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SECTION 2.
Refunding bonds in the principal amount of
Four Hundred Forty-two Thou~and One HUndred Fifty ($442,130.00)
Dollars are hereby authorized to be issued pursuant to Chapter 15,772,
Laws of Florida of 1931, for the purpose of refunding the principal of
all bonds described in Section 1 hereof, and any judgments heretofore
or hereafter reoovered thereon.
Taxes sufficient to produce the sums
requi~ed for the payment of the principal of and interest on said
Refunding Bonds shall be levied upon all property within the territorial
limits of the City of Clermont, excepting only such property as was
exempted from municipal taxation by the Constitution of Florida, as it
existed immediately prior to November 6, 1934, and all such property
shall be subject to the specific tax levies hereinafter directed to be
made for the payment of the principal of and interest on any of the
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obligations issued hereunder.
Notwithstanding the greater liability
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imposed upon the City by the statutes relating to the payment of judgments,
judgments shall be refunded in the same manner and upon the same basis
upon which the bonds and interest included therein would be refunded if
not reduced to judgment, and for this purpose ,interest on the principal
amount of bonds reduced to judgment shall be computed at the rate
presoribed in such bonds and interest upon interest shall be excluded.
Said Refunding Bonds shall be dated July 1, 1939, and shall mature
July 1, 1969, 8ubject to redemption on any interest payment date prior
to maturity upon payment of the par value thereof and accrued interest
to the date fixed for redemption.
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The prinoipal and interest of said bonds shall be payable
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in lawful money of the United States of Amerioa, in the City of New
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York, State of New York.
Said Refunding Bonds shall bear interest
at the following rates, to-wit:
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2% for 4 years beginning July l~ 1939~
~ fo~ the next succeeding 4 years,
3% for the next succeeding 4 years~
~ for the next succeeding 4 years,
4% for the next succeeding 4 years~
~ for the next succeeding 5 years,
5% for the next succeeding 5 years,
or to July I ~ 1943
or to July l~ 1947
or to July 1~ 1951
or to July l~ 1955
or to July l~ 1959
or to July l~ 1964
or to July I, 1969, maturity.
SECTION 3.
Subject to the requirement that the proceeds
received from the collection of special assessments and delinquent taxes
for 1930 and prior years shall be used for the payment of the Delinquent
Tax Notes hereinafter provided for, the Citymay apply any moneys in
the sinking fund hereinafter provided for said Refunding Bonds to'the
purchase of such Refunding Bonds at the lowest prices submitted, in
the manner herein sat forth, provided that suoh prices shall be less
than the par value and accrued interest on the Refunding Bonds to be
so purohased.
The City oovenants that in the event there is in the
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sinking fund hereinafter provided for the Refunding Bonds the sum of
Five Thousand ($5~000.00) Dollars, or more~ over and above the amount
necessary to pay the next succeeding interest coupon, it will apply
the moneys in such sinking fund to the purchase of Refunding Bonds at
the prices and subject to the conditions aforesaid.
Any and all
purchases of Refunding Bonds will be made by oalling for and accepting
tenders.
The City shall designate a date, which shall be not less
than thirty (30) nor more than forty-five (45) days from the time said
date is designated, at which time it will receive" sealed tenders of
bonds of the refunding issue, and act upon such tenders in open
session.
Upon determining said date~ the City shall notify the
Fiscal Agent and any bondholders so requesting no:tioe of the time and
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place of reoeiving suoh tenders.
Notioe shall also be published once
at least thirty (30) days before said time, in at least two (2)
newspapers having general ciroulation in the locality wherein they
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are published, one of which newspapers shall be printed in Lake
County, Florida, and the other in the City of New York, New York.
The entire fund for the retirement of the bonds shall be used to
purchase bonds offered at ,the lowest prices:
provided, however,
that if said offers are not satisfactory to the City, the City shall
have the right to reject said offers and thereafter, within ninety
(90) days, readvertise for offers as hereinabove set forth.
If no
satisfactory offers at less than par are received as a result of the
second advertising, the City shall then rejeot all offers and prooeed
to call bonds as herein below set out.
SECTION 4.
In the event moneys in the sinking fund shall
accumulate to the amount of Five Thousand ($5,000.00), or more, over
and above the amount necessary to pay the next sucoeeding interest
coupon, and remain on hand for more than six months, notwithstanding
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the faot that the City has made all oalls for tenders of Refunding
Bonds, as required herein, the City covenants th~t such mmneys will be
applied to the redemption of Refunding Bonds to be seleoted by lot in
an amount sufficient to exhaust such moneys upon the first interest
payment date thereafter occurring.
Notice of intention to eall shall
be filed at the plaoe of payment of principal and interest at least
sixty (60) days prior to call date.
Notioe shall also be published
in at least two newspapers of general circulation in the locality
wherein they are published, one of which newspapers shall be published
in Lake County, Florida, and the other shall be a financial newspaper
published in the City of New York, New York, said notice appearing once
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a week for four conseoutive weeks, the date of the first publication to
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be at least sixty (60) days prior to the date fixed for oall.
S~TION 5.
All Refunding Bonds purohased or redeemed by the City,
together with all unpaid interest coupons, will be canceled immediately
upon their surrender to the City.
The City will not purohase any Refunding
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Bonds if and while it may be in default in the payment of interest
on any Refunding Bonds unless tenders therefor shall have been
aooepted prior to such default, and then it may purchase only the
bonds covered by such tenders.
SEX;TION 6.
The Refunding Bonds herein authorized to be
issued shall be signed by the Mayor and attested by the City Clerk
and the oorporate seal of the City of Clermont, Florida, shall be
affixed thereto.
The interest ooupons thereto attached shall be
exeouted with the fac simile signatures of said Mayor and City Clerk.
The text of said bonds shall be in substantially the following form:
UNITED STATES OF AMERICA
STATE OF FLORIDA
COUNTY OF LAKE
CITY OF CLERMONT
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REFUNDING BOND
NO.
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The City of Clermont, Lake County, Florida, is justly indebted
and for value received, hereb~ promises to pay to bearer, on the first
day of July, 1969, the prinoipal surn of
Dollars
($
), together with interest thereon from the date hereof at
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the rate of two per cent (~~) for the first four years, or to July 1, 1943;
two and one-half per oent (~) for the next; succeeding four years,
or to July I, 1941; three per cent (3%) for the next succeeding four years,
or to July I, 1951; three and one-half per cent (3~) for the next
succeeding four years, or to July I, 1955; tour per cent (4%) for
the next suoceeding tour years, or to July I, 1959;i'~ and one-halt
per cent (~) for the next succeeding five years, or to July 1, 1964;
five per cent (5%) tor the next succeeding five years, or to July I, 1969,
the maturity date of said bonds, said interest being payable semiannually
6.
January 1st and July 1st in each year. Both principal hereof
and interest hereon are payabl'e in lawful money of the United
States of America at Irving Trust Com}:fl.ny, New York, Hew York,
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or Citizens Bank of Cl€rmont, Clermont, Florida, upon presenta-
tion and surrender of this bond and t:J.e interest coupons hereto
annexed as theJ severally mature.
This Bond is issued under the authority of and in ~~ll com-
pliance with the Constitution and Statutes of the State of Florida,
includinr the General Refunding Act of 1931, beinr C~apter 15,772,
General Laws of Florida of 1931, and including the Charter of the
City of Clermont, ?lorida, and pursuant to a resolution passed by
the City Council of said City of Clermont, Florida, and pursuant
to an election held in said City on the 21st day of June, 1938,
for the purpose of ref~~ding valid subsisting funded indebtedness
of s aid City heretofore incurred, prior to November 6, 1934.
l'he City of Clermont, Florida, hereby reserves the right to
redeem this bond on any interest payment date upon payment of par
Hnd accrued interest and agrees that it will apply the sinking
'. f",md created by the resolution authorizing the issuanCe of this
bond to the redemption of the bonds of this issue at par and
accrued interest by lot, whenever such sinking fund amounts to
~5,OOO.OO, or more, over and above the amount necessary to pay
the next succeedin~ interest coupon, and 1s not used for the
purchase of bonds of this issue at less than par and accrueu
interest and not reserved to acquire such bonds under a then
published notice. In the event this bond is called for redemp-
tion, notice thereof shall be published in at least two news-
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pap€rs of reneral circulation in the locality wherein they are
published, one of which shall be a newspaper published in Lake
County, Florida, and the other a financial newspaper published
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in tI-le City of New York, once a week for four cons'ecuti ve calen-
dar ~eeks, the date of the first publication to be at least sixty
(cO) Gays prior to the date fixed for redemption. If this bond
shall not be presented for payment on the date so fixed for redemp-
tion, it shall cease to besr ~nterest from and after said date. The
sinkine fund provided for said bonds may als 0 be used in the pur-
chase thereof in accordence with the provisions of the resolution
authorizing their issuance.
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It is hereby certified and recited that all acts, conditions
and things required to happen, exist and be performed precedent to
and in the issuance of this bond, have happened, exist and have been
per.formed 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 no'!; 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 oredit of said City are hereby pledged.
The City of Clermont, Florida, oovenants with the holder o.f
this bond that for the payment of the principal and ,interest hereof
it will levy taxes in an amount suf.fioient to provide there.for upon
all property within the territorial limits o.f said City, excepting that
prop~rty which was exempt .from municipal taxation by the Constitution
o.f Florida as it was in foroe and e.ffect immediately prior to
November 6, 1934.
The City further covenants that all taxes levied
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for the payment o.f the principal and interest on this bond, including
taxes upon homesteads, will be collected in oash at the same time and
in the same manner as operating and governmental ad valorem taxes levied
by said City, and the rights and remedies .for the enf'orcement of the
indebtedness hereby refunded shall appertain to this bond and the taxes
securing the same independently o.f any restrictions or limitations thereon
enacted by the Legislature of the State o.f Florida.
IN WITNESS 'WHEREOF, said City o.f Clermont, Lake County, Florida,
has oaused this bond to be signed by its Mayor and attested by its City
Clerk, under its oorporate seal, and the interest coupons hereto attaohed
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to be exeoutedwi th the faosimile signatures of said Mayor and
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Ci ty Clerk, ali as of t,he 1st day of July, 1939.
ATTEST:
Mayor
City Clerk
(VALIDATION CERTIFICATE)
Validated and oonfirmed by deoree of the Cirouit Court of
the Fifth Judioial Circuit of the State of Florida, in and for Lake
County, rendered
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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 $
, lawful
money of the United States of Amerioa, at
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New York, New York, being six months' interest then due on its
Refunding Bond dated July 1, 1939, No.
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Mayor
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Ci ty Clerk
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SECTION 7.
To insure the prompt and full payment of the
interest on the Refunding Bonds, and to create a sinking fund for the
payment of the principal thereof at maturity, there shall be levied
an ad valorem tax in the year 1939-1940, and each of the succeeding
five (5) fiscal years, sufficient to aggregate annually not less than
the amounts shown in the following schedule:
Fiscal Years
1939-1940
1940-1941
1941-1942
1942-1943-
1943-1944
1944-1945
.Amo unt of Levy
$ 12,000
14,000
14,000
14,000
20,000
20,000
SECTION 8.
For the fiscal year 1945-1946 and succeeding
fiscal years in which any of the Refunding Bonds remain outstanding,
the City shall levy an annual tax specifically allocated to the
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interest and sinking fund for said Refunding Bonds, in an 'amount
sufficient to pay promptly the interest thereon as the same matures;
and in addition thereto, an amount for the sinking fund sufficient to
produoe a minimum of two per cent (2%) of the total amount of the then
outstanding Refunding Bonds.
In determining the rate of taxation
necessary for said purpose, the average percentage of collectibility
of taxes during the three years immediately proceding shall be deemed
to be the peroentage of collectibility od taxes for the fiscal year
then being levied for.
All tax levi es made for the payment of the
principal and interest of the Refunding Bonds shall constitute special
levies for said purpose and shall be collected in oash at the same
time and in the same manner as other taxes whioh may be levied by the
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City, and the proceeds of said taxes levied for interest and sinking
fund shall be used for no other purpose.
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SECTION 9.
In addition to the moneys hereinbefore
required to be paid into the sinking fund for the payment of the
principal of Refunding Bonds, there shall also be paid into such
sinking fund on the ]ast day of each fiscal year, all moneys in said
bond interest fund in excess of the interest requirements of the
Refunding Bonds for such fiscal year and the next succeeding semi~~ual
interest instalment.
Such moneys will be used solely for the retirement
of Refunding Bonds by purchas" call or payment, in the same manner as
other moneys in suoh sinking fund are required to be applied.
SECTION 10.
interest
All unpaid/accrued to July 1, 1939,
on the outstanding bonds to be refunded hereunder, whether or not
represented by interest ooupons, shall be refunded by the issuanoe
of delinquent tax notes in an amount equal to the amount of interest
refunded thereby.
For the payment of such delinquent tax notes
taxes at the time s and at the rate hereinafter prescribed will be
levied on all property within the present territorial limits of the
City which was not exempt from municipal taxation by the Constitution
of Florida as it existed prior to November 6, 1934.
Said delinquent
tax notes shall be in negotiable for.m. shall be dated July 1, 1939.
shall bear no interest and have no definite maturity date, shall be
redeemable in whole or in part at any time by the City, through its
fiscal agent, at ten per cent (10%) of the face value thereof, and
may be purchased and resold by the City to taxpayers for use as herein-
after pravi ded.
For the payment of said notes there is hereby pledged
all unpaid taxes for the year 1930 and prior years, subjeot to prior liens
and contract obligations, together with a special tax to be levied for
the years 1931 to 1938, both inclusive.
The said levy for said period
shall aggregate twelve (12) mills, and shall be levied at the rate of
four (4) mills per year for each of the years 1939. 1940 and 1941.
There is likewise pledged to the payment of said notes, subject to
prior liens and contract obligations, all unpaid special assessment
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liens now outstanding.
The City covenants that the proceeds of
said delinquent taxes~ unpaid special assessments~ and special tax
levied will be paid into a special fund and applied solely to the
redemption of such notes.
When the proceeds of said taxes and liens
have accumulated in said fund to the amount of One Hundred Dollars
($lOO.OO)~ or moro~ the City will immediately disburse such funds pro
rata to the owners of delinquent tax notes~ through its fiscal agent.
as herein provided.
The City covenants that it will accept such
delinquent tax notes at par value in payment of the tax liens pledged
thereto. provided that the 1939 and subsequent taxes have been
previously paid~ or are simultaneously paid.
In the event that any
of said notes shall be paid in part only. they shall be presented to
the City's fiscal agent for endorsement thereon of a stat~ent of the
portion of the face amount thereof so paid~ and the amount of cash
actually paid thereon~ and upon final payment of any of said notes
,;
they shall be surrendered to the City and canoeled by it. Said
delinquent tax notes shall be issued in such denominations as may be
equal to the amount of accru~d interest owing each creditor, or in such
denominations as may be agreed upon between the City Clerk and such
oreditor~ and the notes shall be numbered oonsecutively from one upwards.
Upon the retirement of all delinquent tax notes. or the setting apart of
sufficient funds to make such retirement, the proceeds of all taxes and
special assessments pledged to such notes will thereafter be paid into
the fund herein provided for the payment of interest on the Refunding
Bonds and applied in the same manner as other moneys in such fund are
required to be applied.
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SECTION 11.
The delinquent tax notes herein authorized to be
issued shall be signed by the Mayor and the City Clerk of the City of
Clermont, and the Corporate seal of the City of Clermont shall be
affixed thereto.
The text of said note shall be in substantially
the following form:
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UFITED STATES OF A1\~RICA
STf.TE OF l"LORIDA
CITY OF CLERM01TT
DELINQUE1TT TAX NOTE
NO.
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The City of Clermont, in Lake County, Florida, is justly
indebted, and for value received promises to pay to the bearer here-
of, the sum of ~/ , as and when funds are available for such
payment at the rate of ten per cent (lO~) of such amount, and the
bearer hereof agrees to accept such payment of ten per cent (10%)
of t~e face amount hereof as complete satisfaction and discharge of
said indebtedness. Payment hereof shall be made in lawful money of
the enited States of America, at the office of Leedy, Wheeler & Com-
pany in the City of Orlando, Florida, at one time, or from time to
time, in part, on the basis above prescribed; and if partial payment
is made he reon, this note shall be presented at the place of payment
for endorsement hereon of t~e part paid and the amount paid in dis-
charge thereof.
For the payment of tbis note and the issue of which it is a
part, there is hereby pledged all taxes levied for the year 1030 and
prior years remainine unpaid as of July 1, 1939, and all special
assessments remaininc unpaid as of said date imposed upon property
within the City, subject to prior liens and contract obligations;
and to further secure the payment hereof the City covenants that for
the years 1939, 1940 and 1941 a levy of four (4) mills per year for
each of ~aid years shall be maje upon all property within the present
territorial limits of said City excepting that property which was
exempted from municipal taxation by the Constitution of Florida as it
was in force and effect i~ediately prior to November 6, 1934. The
City further covenants that all taxes levied for the payment of this
note, including taxes upon r.omesteads, will be collected in cash at
the same time and in tbe same manner as operatine and ~overnmental ad
valorem taxes levied by said City, and the rights and remedies for the
enforeemen t
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of the indebtedness refunded hereby shall appertain to this note and
the taxes securing the same~ independently of any restrictions or
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limitations thereon enacted by the Legislature of the State of Florida
since January l~ 1930.
The City covenants that the proceeds of said delinquent taxes,
unpaid special assesronents and special tax levies will be paid into a
special fund and applied solely to the redemption of this note and the
issue of whioh it is a part, and further covenants that whenever there
shall be in such fund One Hundred Dollars ($100.00), or more, it will
immediately disburse such fund in redemption of this note and the other
notes of the issue of which it is a part, by paying to eaoh owner or
bearer thereof that portion of such fund that may be equal to the ratio
that the unpaid face amount of suoh owner's notes bears to the total
unpaid face amount of all outstanding notes entitled to payment therefrom.
This Note will be received by the City of Clermont in payment
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of an amount of taxes levied for the year 1930 and prior years, and
special assessments heretofore imposed equal to ninety-five per cent
(95%) of the face amount of said taxes and speoial assessments, provided
that it will be acoepted in payment of suoh delinquent taxes only upon the
oondition that taxes for the year 1939 and subsequent years on the same
property are paid in oash simultaneously therewith or prior thereto~ and
provided that the remaining five per cent (5%) of said taxes and/or speoial
assessments is paid in cash at the same time.
The City may also acoept
in payment of said special assessments only, new Refunding Bonds at
twice their faoe value for ninety-five per cent (95%) of the faoe
amount of such assessments, or any of its other outstanding bonds for
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the retirement pr which said Refunding Bonds are authorized:
provided
that the remaining' fi va per cent (5%) thereof is paid in oash at the same
time.
This Note is issued for the purpose of refunding interest
upon valid outstanding bonds of the City of Clermont, for the payment
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of whioh the City was obligated to levy taxes upon all property within
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its present territorial limits which was subject to taxation under the
Constitution and Laws of Florida as they existed prior to November 6,
1934.
This Note is issued under the authority of and in full oompliance
with the Constitution and statutes of the state of Florida, including the
Charter of the City of Clermont, and pursuant to a resolution passed
by the City Commission of said City of Clermont.
It is hereby oertified and recited that all acts, oonditions
and things required to happen, exist and be performed precedent to and
in the issuance of this Note 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; that the total indebtedness of said City, including
this note, does not exceed, and that the total indebtedness of said'City
at the oreation of the indebtedness refunded hereby, including said
indebtedness, did not then exoeed, any constitutional or statutory
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limitation thereon.
IN WITNESS WHEREOF, said City of Clermont has caused this Note
to be signed by its Mayor and its City Clerk, under its corporate seal,
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as of the first day of July, ~.
Mayor
City 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
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Lake County, rendered
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Clerk of said Circuit Court.
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SECTION 12.
All tax levies required to be made hereunder
for the purchase, payment or redemption of the refunding obligations
authorized hereby shall oonstitute special levies for the particular
purposes for whioh they are imposed.
Such tax levi es. whi Ie constituting
special levies, will be collected at the same time and in the same manner
as other taxes which may be levied by the City, and upon collection will
be immediately segregated and credited to the proper funds as hereinbefore
provided.
The City covenants that it will set aside daily, out of the
proceeds of its tax collections, including moneys derived from the sale
or transfer of tax certificates and tax deeds, the proper proportionate
amount thereof applicable to the purchase. payment or redemption of the
refunding obligations.
All moneys so credited to such speoial fund
will be forthwith deposited with a city depository and held by it in
trust for the payment. redemption or purchase of the refunding obligations
in the manner prescribed by this resolution.
SECTION 13.
The City covenants that it will not accept
payment of any tax or part thereof levied against any parcel of
property for operating or governing the City unless all taxes levied
against the same parcel of property for the payment of the refunding
obligatipns authorized hereby are paid at the same time.
SECTION 14.
The City hereby oovenants that it will
actively and diligently enforce the collection of all taxes and
speoial assesaments heretofore and hereafter levied, and that it will
not accept anything but lawful money of the United States of America
in payment or satisfaction of the taxes or speoial assessments required
to be levied or pledged hereunder for the refunding obligations authorized
hereby:
provided that the payment of delinquent taxes for the year 1930
and prior years and outstanding special assessment liens shall be payable
as follows:
Five per cent (5%) in cash and ninety-five per cent (95~
in delinquent tax notes, or coupons. or evidences of unpaid interest
accruals to July 1. 1939, or the equivalent thereof in cash, if all
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subsequent taxes have been paid or are paidsimult~eouslYl and
provided further that the Refunding Bonds hereby authorized, and
coupons therefrom. shall be acceptable by the City in payment of special
assessment liens only. and not in payment of taxes, and when suoh new
bonds or ooupons are accepted in payment of assessment liens. the same
benefits shall accrue to the taxpayer as if the old bonds or ooupons
had been offered in payment of suoh assessment liens.- that is to say.
new bonds or coupons shall satisfy an amount of speoialassessment liens
equal to what would have been satisfied by the old bonds or coupons.
SECTION 15.
The City hereby oovenants that notwithstanding
Section 7. of Artiole X, of the Constitution of the State of Floridag
added thereto by amendment ratified November 6. 1934. and any legislation
enaoted pursuant thereto. it will levy taxes upon all homesteads embraced
wi thin the territorial 11mi ts of the City for the payment of the refunding,
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obligations authorized hereby to the same extent as other property in
the City may be liable to taxation therefor.
SECTION 16.
Antioipated colleotions of delinquent taxes
will not be oonsidered as revenue available for the payment of principal
or interest of the Refunding Bonds in preparing the budget of the City
or in fixing the levy for any fiscal year prior to 1944-1945. and the
City is pledged to pay all moneys received by it from the collection of
delinquent taxes to the purpose for which they were levied or are pledged
hereby.
SECTION 17.
The City hereby oovenants that so long as any
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of the refunding obligations authorized hereby may be outstanding.
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it will not avail itself of the provisions of Chapter 16.965, Laws of
Florida of 1935. or any other legislation that may be hereafter enacted
by the Legislature of the State of Florida in anyway impairing or
modifying the obligation of the City on the refunding obligations
hereby authorized, or the covenants of the City herein oontained.
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SECTION 18.
The City Attorney is hereby instruoted and '
directed to institute the proper proceedings for the purpose of having
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adjudica~ed the validity of the refunding obligations authorized hereby
and the validity and effectiveness of each and every covenant and
provision oontained herein.
SECTION 19.
That all of the Refunding Bonds herein
authorized~ so long as the same shall be outstanding~ shall have
and are hereby deolared to have the same security and source of payment
as the indebtedness represented by the bonds thereby refunded~ and said
Refunding Bonds shall constitute a continuation, extension, merger and
renewal of the indebtedness thereby refunded, and onlysuoh property
in said City as was exempt from taxation under the laws in force at the
time such original indebtedness was inourred shall be exempt from
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taxation to pay the interest upon and prinoipal of said Refunding Bonds.
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SECTION 20.
If, any clause, section, paragraph or provision
of this resolution or of the refunding obligations hereby authorized
be declared unenforoeable by any Court of final jurisdiction, it shall
not affect or invalidate the remainder thereof~ and if any of the
refunding obligations hereby authorized be adjudged illegal or
unenforceable, the holders thereof shall be entitled to be subrigated
to the rights of the holders of the indebtedness hereby authorized
to be refunded thereby, and as such enforce their olaim for payment.
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After the reading of the resolution, the roll
was called and the fo 110V'1.1. ng vote was taken: Ayes:
Councilmen Keene, Roe, Lassiter, Johnson and Stakchouse
Nays: None. So the resolution was adopted and made a
part of the minutes of this meeting.
Councilman Roe moved that the Mayor and City
Clerk be authorized and directed to sign all papers
necessary in connection with the suit to be broueht
to validate the refunding bonds. The motion was se-
conded by Councilman Lassiter and upon being put to a
vote, carried unanimously.
fir. H.L.Recse, representing tho Universal Construction
Co., Birmingham, Ala. discussed the paint job just completed
on t....'G City water tank, and said that he would repaint one
leg of the tower; then he made a proposal to to guarantee
the job for a period of theee years. A copy is attached to
the original painting contract No. 1378.
~~r. Lassiter made a motion, seconden by r~r. Roe, that
the City Clerk pay th0 Universal Construction Co. ~210.00,
which is the first payment due on their contract. 1Vhen put
to a vote, tne motion carrie~.
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f"r. Roe made a motton, seconded by r1r. Tassitnr, that l,
Fr. Horabaugh bo paid $;2.00 per load for manure which was I~'
hauled and usen at the Cemetery. The motion carried. ':>
Tnere being no further business, the Council adjournel,
to meet at the call of the president.
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