518 TOWN OF TAGS
ORDINANCES
YEAR: L93Y -
NUMBER:
J I p
V-1 M. t.
e",
ORDINANCE NO. 510
AN ORDINANCE FRCTVIDING FOR THE EXTENSION) q
ENLARGEMENT AND BETTERMENT OF THE JOINT WATER
AND SEWER SYSTEM OF THE TOWN OF TAOS, AT A TOTAL
COST OF NOT EXCEEDING $155,000.00 (EXCLUDING ANY
SUCH COST DEFR/tYED BY SOURCES OTHER THAN REVENUE
BOND PROCEEDS) ; DECLARING THE NECESSITY FOR MAKING
AND ISSUING SECOND LIEN JOINT WATER AND SEWER
REVENUE BONDS PAYABLE SOLELY OUT OF THE NET INCOME
TO BE DERIVED FROM THE OPERATE, "; OF SUCH MUNICIPAL
ITTILITY ; AUTHORIZING THE ISSUAN(I'E AND SALE OF SUCH
REVENUE BONDS IN THE AGGREGATE PRINCIPAL AMOUNT OF
$155 ,000,.00 -, PROVIDING THE FORM, TERMS AND CONDI-
TIONS OF SUCH BONDS , THE MANNER OF EXECUTION THERE-
OF , THE METHOD OF PAYING SUCH AND THE SECURITY
THEREFOR; PROVIDING FOR THE DISPOSITION OF THE IN-
COME DERIVED FROM THE OPERATION OF SAID JOINT
SYSTEM; RATIFYING ACTION PREVIOUSLY TAKEN CONCERN-
ING SAID JOINT SYSTEM AND SAID BONDS; REPEALING
ALL ORDINANCES IN CONFLICT HEREWITH; AND DECLARING
AN EMERGENCY,
WHEREAS, the Town of Taos (herein sometimes merely
designated as the "Twm ") , in the County of Taos and State
of New Mexico, is a legally and regularly created, organized
and existing municipal corporation under the laws of the
State of New Mexico, its full corporate name being "Town of
Taos , " and has existed as such since the 7th day of
1934; and
WHEREAS , the Town does now own and operate a joint
water and sewer system, being a single operation (and herein-
after referred to as the "Joint system" or "system") ; and
WHEREAS , the interest of the Town and of the
inhabitants thereof , and the public interest and necessity,
demand the extension , enlargement and betterment of the
joint water and sewer system, such undertaking being herein
sometimes inerely designated as the "Project "; and
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WHEREAS, the Town (then operating as a 4illage) ,
pursuant to Ordinance No. 201, adopted and approved on the ,
2nd day of December, 1949, as amended by Ordinance No. 317 , E
passed, adopted, signed and approved on the 5th day of
w July 1961, has issued its Village of Taos, New Mexico,
Water and Sewer Revenue Bonds, Series November 1, 19497
sometimes herein referred to as the 1949 Bonds, in the
aggregate principal of $ 3:30 ,000.00 , maturing serially
in regular numerical oiuer on the first day of November in
each of the years 1952 to 1979, both inclusive, bonds
maturing in the years 1952 through 1957 bearing interest
at the rate of four and one-fourth per centum (4-1/4%) per
annum, and bonds maturing in ti-e years 1958 through 1979 ,
bearing interest at, the rate of four per centum (4%) per
annum, payabLe May 1 , 1950 , and semiannually thereafter on
the first days of November and May in each year, of which
issue there are outstanding and unpaid bonds numbered 62
to .11E, both inclusive, in the aggregate principal amount ;
;s
of $ 269,000.00 ; and
WHEREAS, Section 10 of said Ordinance No. 201 ,
as amended by said Ordinance No . ,�1� provides as follows
"Sot:* ion :0 • Thatnothing in this ordinance
on to ined shall. be construed in such a manner as
to prevent. t'r,.e issuance by the Toun of additional
bonds cY other obligations payable from the income
derived from t`r)e operation of the said water and
sewer systF,�, and constituting a lien upon said
re,:Fnues juntzr to, but not prior or superior to
or on a parity with , the lien of the bonds hereir.
authorized r,or to prevent the issuance of bonds or
other obligations refunding all or a part of the
bonds hFrF•. i1) a•at horized: provided, however, that
the Town is tiuL in default as to payments required
c: be made i Sec%ian 7 of this ordinance . "
and
WHEREAS, the Town is not in detailc as to the pay -
ments required to be made in Section 7 J said Ordinance No,
201 ; and
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WHEREAS, the revenues of the joint system for the
year preceding the issuance of the bonds authorized by this
ordinance have been adequate to pay the requisite amounts
specified in said Section 7 of said Ordinance No. 201 and
the principal and interest requirements of the bonds
authorized by this ordinance ; and
WHEREAS , the bonds herein authorized in the amount
of $155,000 .00 shall be junior to said bonds dated November 1 ,
1949 ; and
WHEREAS , the Town of Taos has never pledged or
in any way hypothecated the revenues derived from the
operation of the joint system to the payment of any bonds
or for any purpose, other than those indicated in said Ordi-
nances Nos . 201 and 517 , with the result that the amount
derived from the operation of said joint system may now be
pledged lawfully and irrevocably for the redemption of the
bonds herein authorized, subject only to those pledges
designated in said ,)rdinan,Zes Nos . 201 and 517 ; and
WHEREAS, in order to provide funds with which to
defray the cost of acquiring the Project, the Town proposes
to issue the revenue bonds of the Town , payable as to
principal and interest solely out of the net income to be
derived from the operation of such joint system; and
WHEREAS, in order to authorize the making and
issuance of its joint water and sewer revenue bonds , and in
order to pledge the net income to be derived from the
operation of said joint system to the payment of said bonds ,
and in order to comply with Sections 14-39-8 to 14-.39.• 13 ,
both inclusive , New Mexico Statutes Annotated, 1953 , and
all laws amendatory thereof and supplemental thereto, it is
necessary that an ordinance be adopted by the affirmative
vote of three-fourths of all the members of the entire Board
of Trustees of said Town declaring the necessity thereof ,
NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF
TRUSTEES OF THE TOWN OF TAOS, NEW MEXICO,
Section 1 , Ratification . That all action (not
inconsistent with the provisions of this ordinance) hereto-
fore taken by the Board of Trustees of said Town of Taos ,
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and the officers thereof, directed toward the extension,
enlargement and betterment of the joint water and sewer
system, and toward the issuance of the Town' s joint water
and sewer revenue bonds, be, and the same hereby is ,
ratified, approved and confirmed, including, without limit-
ing the generality of the foregoing, the sale of said bonds
in the aggreg to principal amount of $1.55,000.00 to Quinn &
Co, , Albuquer ue, New Mexico, and associates , for the pr.ir -
cipal amount thereof and accrued interest thereon to the date of
delivery, said bonds bearing interest as hereinafter provided.
Section 20 Authorization of Betterments. . That
the Town' s joint water and sewer system shall be, and the
same is hereby ordered to be extended, enlarged and bettered
at a total cost of not exceeding $155,000. 00, excluding any
such cost defrayed or to be defrayed with moneys derived
from any source other than revenue bond proceeds ; the same
is hereby authorized; and the necessity thereof is hereby
so declared,
y Section 3 . Authorization of Bonds. That for the
purpose of protecting the public health, conserving the
property and advancing the ge.Lieral welfare of the citizens
of the Town, and for the purpose of defraying the cost of
such Project, it is hereby declared necessary that the Town
make and issue, pursuant to the provisions of Chapter l& ,
Article. 39 , New Mexic c Statutes Annotated , 1953, and all
other acts amendatory thereof or supplemental thereto, its
bonds designated "Town of Taos, New Mexico , Joint Water and
Sewer Revenue Bonds, Series July 15, 1961 . " payable both as
to principal and interest solely out of the net income
derived from the operation of the joint system, such "nt- t
income" herein defined as being the gross income aftrr
deduction only for the necessary and reasonable expense-, of
operating and maintaining such joint system, and the Town
pledges irrevocably , but not necessarily exclusively, such
net income to the cayment of such bonds and th;- interest
the. enn (subject to the payments requirp.d by the. afore-aid
Ordinance No, 201 , as amended by the aforesaid Ordinance No.
the proceeds th-: ►c: - r to be used solely for the uur -
Section 4. Bond Details. That said bonds shall
be issued in the aggregate principal amount of $155,000.00,
shall be dated as of the fifteenth day of July, 1961, shall
consist of 155 bonds, in the denomination of $1,000.00 each,
numbered conaecutively from 1 to 155, inclusive, shall bear
interest from date to maturity at the rate of five per
centum per annum (5%) , ' as evidenced by coupons designated
":e, " attached to said bonds and shall bear additional
interest at the rate of one per centum (1%) per &ovum from
date to the first day of May, 1971, as evidenced by a second
set of coupons designated "B" and attached to said bonds,
all interest being payable May 1, 1962, and semiannually
thereafter on the first days of November and May in each
year, as evidenced by interest coupons attached to said
bonds, and mature serially on the first day of November in
each year, the bond numbers , amounts maturing and years of
maturity all being as follows:
Bond Numbers Amounts Years
(All Inclusive) Maturing, Maturing
1 - 20 $209000.00 1980
21 - 40 200000.00 1981
41 - 60 20,000.00 1982
61 - 80 20,000.00 1983
81 - 100 209000.00 1984
101 - 120 200000.00 1985
121 - 140 20,000.00 1986
141 - 155 159000.00 1987
In the event any of said bonds shall not be paid at maturity
upon presentation, it shall thereafter continue to draw
interest at the same rate specified therefor hereinabove .
Both principal and interest shall be payable in lawful
money of the United States of America, without deduction
for exchange or collection charges, at The First National
Dank of. Denver, Denver, Colorado.
Section 5. Prior Redemption . All bonds (i.e. ,
1 through 155) are subject to prior redemption in inverse
numerical order at the option of the Town of Taos, on the
first day of May, 1971, or on any interest payment date
thereafter, at a price equal to the principal amount thereof
With accrued interest to the redemption date and a premium
of four and one-half per. centum (4-1C2%) of the principal
amount thereof. Notice of redemption shall be given by the
Treasurer of the Town of Taos, in the name of the Tocm , by
publication of such notice at least once, not more than
sixty nor less than thirty days prior to the redemption
date, in a newspaper of general circulation in the Town of
Taos, and a copy of such notice shall be sent by registered
tail at least thirty days prior to the redemption date to
. the original purchasers of the bonds, the said Quinn & Co. ,
Albuquerque, New Mexico, and the aforenamed paying, agent, The
First National Bank of Denver, Denver, Colorado. Such notice.
shall specify the number or numbers of the bonds to be so
redeemed (if less than all are to be redeemed) and the date
fixed for redemption, and shall further state that on such
redemption date there will become and be due and payable
upon each bond so to be redeemed at The First National Bank
of Denver, Denver, Colorado, the principal amount thereof
with accrued interest to the redemption date , together with
the stipulated premium, and that from and after such date
. interest will cease to accrue. Notice having been given
in the manner hereinbefore provided, the bond or bonds so
called for redemption shall become due and payable on the
redemption date so designated, and upon presentation tte_eof
suusequent to the redemption data, the Town or Taos will so
pay the bond or bonds so called for redemption.
Section 6. Negotiability. That, subject to the
payment provisions specifically made, or necessarily implied
herein, the revenue bonds hereby authorized, shall be payable
to bearer, fully negotiable , and shall have all the qualities
of negotiable coupon paper, and the holder or holders there-
of shall poaaoss all rights enjoyed by the holders of
nagotiebla instruments under the provisions of the Negotiable
In a trumcn to Law.
Section 7 . Execution. Said bonds shall be signed
by the Mayor in the name of the Town of Taos and attested
by the Town Clerk, with the seal of the Town affixed thereto,
and the interest coupons thereto attached shall be also
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payable to bearer and shall be authenticated by the facsimile
signatures of the officers as they appear on said bonds,
which officers by the execution of said bonds shall adopt as
and for their signatures the facsimiles thereof appearing on
said coupons - Said bonds and coupons bearing the signature's
of the officers in office at the timA, of the signing there-
of shall be the valid and binding obligations of the Town
of Taos , notwithstanding, that before the delivery thereof
and payment therefor, any and all of the. persons whose
signatures appear therecr. shall ha---re ceased to fill their
respective offices .
Sect.i r, A Source of Fav:ievt-_ All of said bonds.,
together with rr,P int,-:rest accruing tFereor, , shall be pay-
able and collectible solely oat of the n�-'-t income to be
derived from the operation+, of the joint water and sewer
system, the income of which is so pledged , tre bolder or
holders thereof may not look. to any general cr other fund
EoT: the payment: rtf principal and interest on such obliga-
tions , except the designated special funds pledged therefor
;xc7d such bonds shall not constitute an irdebt.e'dne,ss nor a
(4 bt wi. thl-v tbgt-� ne ining of any c.onst.itotional or statutcry
c,r limitation , nor shall they be. ccnsidered or
Ft lu tr, bt; ge e-ral obligations of the T��wn
;;ec:.:L.31) a Bond and Coupon r orm Uat said bands
and the cciar,crs theretc attached shall be- in substantially
t-be following f;'rm
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,F't�{.r,ri iyrt
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(Form of Bond)
UNITED STATES OF AMERICA
STATE OF NEW MEXICO COUNTY OF TAOS
TOWN OF TAOS
JOINT WATER AND SEWER REVENUE BOND
SERIES JULY 152 1961
NO. $12000.00
The Town of Taos, in the County of Tsos and State
of New Mexico, for value received, hereby promisee to pay,
upon presentation and surrender of this bond, to the bearer
hereof, solely from the special funds provided therefor, as
hereinafter set forth, on the first day of November, lg_,
the principal sum of
ONE THOUSAND DOLLARS
and to pay solely from said special funds interest thereon
at the rate of five per centum (5%) per annum, evidenced from
date to maturity by one set of coupons designated "A" (plus
additional interest at the rate of one per centum (1%) per
annum from date to the first day of May, 1971, evidenced
by a second set of coupons designated "B, " which are pre-
sentable for payment separately and apart from other coupons) ,
all interest being payable on the first day of May, 1962 ,
and semiannually thereafter on the first days of November
and May in each year, upon presentation and surrender of the
annexed coupons as they severally become due . If upon
presentation at maturity, payment of this bond is not made
cs herein provided, interest shall continue at the same
rate until the principal hereof is paid in full . Both
principal and interest are payable in lawful money of the
United States of America , without deduction for exchange or
collection charges at The First National Bank of Denver,
Denver, Colorado.
This bond does not constitute an indebtedness of
the Town of Taos within the meaning of any constitutional
or statutory provision or limitation, shall not be con-
sidered or held to be a general obligation of the Town,
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and is payable and collectible solely from the net revenues
(i.e . , gross revenues less reasonable operation and main-
tenance expenses) derived from the operations of the muni-
cipal joint water and sewer system, the income of which is
so pledged ; and the holder hereof may not look to any general
or other fund for the payment of the principal of and in-
r-rest on this obligation except the special funds pledged
til-.erefor. Payment of the bonds of the series of which this
is one and the interest thereon shall be made solely from,
and as security for such payment there are pledged, pursuant
to Ordinance No. 518 , adopted and approved the 5th day
of J61Y —) 1961 , two special funds identified as the
"Town of Taos Joint Water and Sewer Revenue Bonds, Series
July 15 , 1961 , Interest and Bond Retirement Fund, " and as
the "Town of Taos Joint Water and Sewer Revenue Bonds,
Series July 15 , 1961 , Reserve Fund, " into which the Town
covenants to pay respectively, from the net revenues derived
from the operation of its joint water and sewer system (after
provision only for payment into the "Taos Water and Sewer
Revenue Bond Fund, " and the 'Reserve Fund,, " both pledged to
the payment of the Town 's Water and Sewer Revenue Bonds ,
doted November I , 1949 , authorized by Ordinance No. V", 204
adopted and approved on the 2nd day of December, 1949, as
amended and supplemented by Ordinance No. 517 passed,
adopted signed and approved on the 5th day of July
1961) , sums sufficient to pay when due the principal of and
the interest on the bonds of the series of which this is
one , and to create and maintain a reasonable and specified
reserve for such purpose . For a description of said funds and
the nature and extent of the security aforded thereby for the
payment of the principal of and interest on said bonds .,
reference is made to said ordinance. The bonds of the series
of which this is one are equitably and ratably secured by
a lien oyi the designated net revenues ; said bonds, subject to
WW
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the prior lien of the Town 's aforesaid Water and Sewer
Revenue Bonds , dated November 1 , 1949 , constitute an ir-
revocable first lien (but not necessarily an exclusively
first lien) upon said net revenues derived from the operation
of said joint system. Bonds in addition to the series of
which this is ore on a parity therewith or subordinate
hereto , may be issued and made payable from the net
revenues and income of the joint system in the manner and
upon the conditions provided in the ordinance authorizing
the i ssuar,ce of this bond.
The Town of Taos covenants and agrees with the
holder of *-his bond and with each and every person who may
become t_. ... -older hereof tl,at it will keep and perform all
the cc,,enants of this ordinance , including, without limiting
the generality of the foregoing , its covenant against the
sale or mortgage of said joint system or any part thereof
unless provision shall be made for the payment of the prin-
cipal of and interest on the bonds of the series of which
thl s i,- one , and including its covenant chat it will fix,
:;,air,cain and collect rates for services rendered by said
ir system s.:fficient to produce revenues cr earnings to
the cpe rating and maintenance charges and one hundred
fifty pF: centum ',. 150%) of both the principal of and in-
tc- r_sr. cn the bonds and any other obligations payable an-
-��� : iv from the revenues of said joint system, including
chi.: re se rvc therefor,
This bond is one of a series of ::ne hundred and
i rty • fivv bonds cf like tenor, amount and date , except as
c.(_. ,.rid maturity, authorized for the purp;:•se of pay-
in,; tf:e costs of extending, enlarging and bettering, the
water and sF?wer system of the Town of Taos , in an
amo,inr not exceeding $ 155 , 000 . 00 (excluding any cost de-
f raved by sources c�tf.er than revenue bond proceeds) ,
."1:is bond is one of a series subject to prior
redemption in inverse numerical order at the option c)f the
Town .p the first day of May, .971 , or on any interest: pay-
ment date thereafter , at a price equal to the principal
a(TioUllt hereof, accrued interest hereon tc: the redemption
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date, and a premium of four and one-half per centLun (4-1/2%)
of the principal amount hereof. Redemption shall be made
upon not less than thirty days ' prior notice by publication
and by mailing in the manner and upon the conditions pro-
vided in the ordinance authorizing the Issuance of this
bond.
This bond is subject to the conditions, and every
holder hereof by accepting the same agrees with 'hligor
and every subsequent holder hereof , that (a) the ivery
of this bond to any transferee shall vest title in this
bond and in the interest coupons attached hereto in such
transferee tc tee same extent for all prirposes as would the
delivery under like circumstance s of any negotiable instrument
payable to bearer , (b) the obligor and any agent of the
obligor may treat the bearer of this bond as the absolute
owner hereof for all purposes, and shall not be affected by
any notice to the contrary; (c) the principal of and the
interest on this bond shall be paid, and this bond and each
of the coupons appertaining thereto are transferable, free
from and without regard to any equities between the obligor
and the origi.nal or any intermediate holder hereof, or any
or cross-clai-ins , and fd) the surrender to the
obligor or any agent of the obligcr of this bond and each
of the coupons shall be a good discharge to the obligor for
the same
It is fur&er certified, recited and warranted
that. all the requirements of law have been fully complied
with by the proper officers of said Town in the issuance
of this bond -. anL1 this bond is issued purs .,ant to and in
strict cocformity With the Constitution and laws of the
:state of New Mexico, and particularly under the terms and
provisions -if Article *39 , Chapter 14 , New Mexico Statutes
Anr.ctated, 1.953 , akid all laws amendatory thereof and sup-
pie-mental thereto
1N WITNESS WHEREOF the Town of Taos has caused
this bond to be signed by its . yor, sealed with its
corporate seal , attested by its Town Clerle.; and the coupons
hereto annexed to be authenticated with the facsimile
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signatures of said Mayor and Clerk, all as of the fifteenth
day of July, 1961 .
fDo Not Sign)
Mayor
(SEAL,)
Attest,
_ (Do Not SS' n)
Town UZZ-
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r Fnd of Fore: of Bond)
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(Form of Coupon)
$25.00
$39 .65
Coupon No. * S 5.00
$ 7 .93
On the first day of November, 19_, **(unless the
bond to which this coupon is attached has been called for
prior redemption) , the Town of Taos, in the County of Taos
and State of New Mexico, will pay to bearer in lawful money
of the United States of America , without deduction for
exchange or collection charges, at the office of the Town
Treasurer in Taos , New Mexico,Yhe Fist Nat vnal Sauk of Denver, DenvK, Co6rade
TWENTY-FIVE AND N0/100 DOLLARS
THIRTY-NINE AND 65/100 DOLLARS
FIVE AND NO/100 DOLLARS
SEVEN AND 9 3/100 DOLLARS
solely from and secured by a pledge of two special funds
created from the net revenues derived from the operation
of the joint water and sewer system of said Town, such
amount being **,ninemmont s ' and sixteen days '*** interest
on its Joint Water and Sewer Revenue Bonds, Series July 15,
1961 , and bearing
Bond No.
_ (Facsimile Signature)
Mayor
(Facsim to ;signature)
Town Clerk
* ( Insert "A " or "B" as well as the number of the coupon . )
**(Insert in all coupons maturing on and after November 1 ,
L97L . )
***( Insert "nine months ' and sixteen days '" in all coupons
numbered A-1 and B- 1 only. )
(End of Form of. Coupon)
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Section 10 . Period of Usefulness . That it is
hereby determined and recited that the period of usefulness
of the facilities to be acquired with the proceeds of the
bonds herein authorized is not less than twenty-six years,
three months and sixteen days from the date of said bonds,
i . e , from the fifteenth day of Ju 1y, 1961 .
Section 11 . Bond Execution and Delivery. That
the Mayor and the Town Clerk are hereby authorized and
direc .ed to prepare and execute said bonds as herein pro-
vided and the Town Treasurer to deliver them to the lawful
purchaser thereof on receipt of the agreed purchase price .
Section 12 , Disposition of Bond Proceeds ,
n , Accrued Interest and premium. That all moneys
received as accrued interest at the time of delivery of the
bonds herein authorized from the sale thereof and any premium
therefor shall be deposited into the 1961 Bond Find (further
described in Section 15 of this ordinance) , to apply on the
payment of interest next due on the bonds payable therefrom
B. Acquisition Account , That except as herein
nrherwise provided, the proceeds derived from the sale of
t `7c_ s�iL(l 1961 bonds shall be deposited promptly upon the
recei.at thereof in the First State Bank of Taos , Taos , New
Mex : cr. , which nzcount. shall be known as the "Taos, New
Mc�xicc . ,Joint Water. and Sewer Revenue Bcmds , Series July 15 .,
Isiriun Account , " herein sometimes designated as
tl,LC- Akaj,,i :>i_tion Account , The moneys in the Acquisition
" . count . except as herein otherwise specifically provided,
i 1 be tised solely for the purpose of acquiring, extensi � {
t.11111argemonts and betterments to the system, except that ai , ,
system .is completed as herein provided, all money, if an,
remaii)ing in the Acquisition Account shall be deposited into
0-0' 1901 RL'SOrve Fund ( further described in Section 15 of Chas
or t:ar ::E Money,, shall. be withdrawn from said Acquisi ..
i 1•n Ccouc)r nn I •Y :upon warrants or checks drawn by the Ma I
JIlk! (; 1ei-k of the Town . No such warrant for any sum for con -
"ruction work shall be issued untLi the Board of Trustees
has received a certificate from the Consuiting Engineer
certifying that such a sum is doe and owing for the work of
15-
o ,i,f.r;, .a ..- . ., i w '. .-�� .v 1. } ':•Yt r ��' f,ly a„�ti.�Y.`� y,S i�'},+
such construction , nor until the Board of Trustees has
adopted a resolution accepting such certificate and direct-
ing the drawing of such warrant or check.
C . Purchasers Not Responsible for Misuse of
Proceeds . That the purchaser of the bonds herein authorized,
however, shall in no manner be responsible for the applica-
tion or disposal of the Town or by its officers of the
funds derived from the sale thereof or of any other funds
herein designated .
Section 13. Fiscal Year. That for the purpose
()'I- this ordinance the municipal joint water and sewer
sy:. -em shall be operated upon a fiscal year basis commencing
the first day of July and ending on the 30th day of June .
Section 14 . Income Fund.. That so long as any
of the bonds hereby authorized shall be outstanding, either
as to principal or interest , all income and revenues
derived from the operation of the joint system shall be
Oe})o�ittrti into a special fund designated "Taos , New Mexico,
.Toilet Water and Sewer System picome Fund, " (previously
rEfE r.re_:' to in Lhe saiO Ordinance No 201 as the "Taos
W ftt. r. and Sewer Revc!nue Fund ") , and hereinafter sometimes
ac t-,iggOted as "Income Fund , "
Section 15 ^dmi:,istration of Income Fund , That
! ong as and, of the bonds hereby authorized shall be out -
�, t citht r as to principal or interest , the. following
;1<1 ;;.rlit5 sh-111 be Aare from the Income Fund:
Or3cratton_ and Maintenance Fund. First� y, there
sh.i l : ,,: r;er aside t. 3ch month as an operation and maintenance
SUCK rc-dsonah '..e' percentage of the Income Fur.cl as the
c,i '[ Lust ee s shall. determine to be reasonable and
r the prupi. r operation and maintenance of said
:,%,sL :>ln ; '10(l said moneys shall be used Solely therefor
ir... 1 •:;iin�. , '; . r. not limited to the cost of all salaries ,
iabot• , mace- i"Its , adequate- ins:.1:•ance , ant'.
;an:i proper charges .-or,cerni.ng the
; l)d rcivell!_e i�:.f pis herein designattd and i-ereafter
�luti�cri ecl in cr.�n��c .:Lic With O e '1oi.1)r sVstetr. any si,rplus
Alt Lhe End] of ttte vear au,d '1Clt. needed for
- 16-
6 !,MP
operation and maintenance purposes , shall be transferred
to the Income Fund and be used for the purposes thereof,
as herein provided.
B. Principal and Interest Requirements for 1949
Bonds . Secondly, there shall be deposited each month in a trust
account with the Mercantile National Bank, Dallas Texas, to
be designated, "Taos Water and Sewer Revenue Bond Fund, "
one-sixth ( 1/6) of the next maturing installment of interest
on all of said bonds outs t nding, and not later than
October 1 , 1951 , and each month thereafter one-twelfth
( L/ 12) of the next maturing installment of principal of said
bonds outstanding..
C . 1949 Reserve Fund.. Thirdly, in addition to such
deposits of interest and principal., in each of the years
L950 and L951 there shall, be deposited in said Bond Fund
in substantially equal monthly installments , not less than
a total Of $5 )000 ., 00 , to be held as a Reserve Fund, and
commencing on January 1 , 1952 , and each month thereafter,
there shall bo deposited in said Reserve Fund 20% of the
mo-i t h I y deposits of interest and principal , until the
Re-i e rve Fund shall contain a sufficient amount to pay in
-id-,-a i,c o cwo years ' requirements of interest and principal
on !�.iid bonds . in addition to the requirements for the
t year , Such Reserve Fund shall be maintained at
socr. amount )ntil it shall be sufficient to pay the interest
oil alld principal of all of said bonds outstanding . The
WOO( 1"'; in said Reserve Fund may be invested in direct obli -
gat- loiis of t1k-.e Unirced States of America and any income
hi, . f r 11 be placed to the credit of said Bond Fund
D. PrinciRf�l and Interest Requirements for 1961.
0 i'-OL11thly, and subject to the aforesaid provisic,iis .
t -torn any nioneys remaining in the Income Fund, i . e . , from
clfic- vot. income and revenues , there shall be deposited and
a bank account to be known as the '"Town of Taos
water and Sewer Revenue Bonds , Series July 1- 5 , 1961
and Bond Retirement Fund , " herein sometimes
referred to as th(� 1961 Bond Fund , the following
i Monthly, commencing on the Hirst day of
a .
L.ht mont:h immediately succeeding the delivery _i any of the
. 17 -
FILMED DOCUMENTS
ARE THE BEST AVAILABLE COPIES.
t. :f �4 i ;vl 4:} df( '13 j'�,cr p`S 2 rSr t`�s,+l `"r f
• ��NN 5 iG^
{ A",
Sir a, CB.
,
bonds , an amount in equal monthly installments necessary,
together with any moneys therein and available therefor, to
pay the next maturing installment of interest on t9e bonds
then outstanding, and monthly thereafter commencing on the
first day of May, 1962 , one-sixth of the amount necessary
to pay the next maturing installment of interest on the
outstanding bonds authorized hereby,
2 ., Monthly, commencing on the first day of
November, 1979 , one.-twelfth of the amount necessary to pay
the next maturing installment of principal on the bondE
authorized hereby.
E. 1961 Reserve Fund. Fifthly, and concurrently
with the payments required by the next preceding Paragraph
P, except as provided in Paragraphs F and G of this Sec-
tion 15 of this ordinance, and in addition to the moneys
required to be deposited in the 1961 Reserve Fund by Section
12 of this ordinance .., monthly commencing on the first day
of the first month following the delivery of any portion of
the Town 's July 15 , 1961 , bonds, the sum of $200.00 per month
sr,a L L be deposited monthly ($2 ,400 ..00 annually) into a bank
ncr_uunt tc be known as the "Town of Taos Joint Water and
.cwc r- Revenue Bonds , Series July 15 , 1961 , Reserve Fund, "
herein somer.i.mes referred to as the 1961 Reserve Fund,
un- i 1 there has been ac,�- muIated $ 30,000 .00 therein and
rf e reaf ter such amount or amounts , it any , shall. be deposited
wt;nt-hty from any moneys remaining in the Income Fund into
-,ie Joint Reserve Fund necessary to maintain said $30 ,000 ,00 .
The monk,.'•, in the Reserve Fund shall be accumulated and
wAl !)tuit-ed as a continuing reserve to be used, except as
re 1 ,1af ter provided in Paragraphs F and G of this section ,
(.)I-, 'ty to pre,!ent deficiencies in the payment of the principal
an i interest on the bands hereby authorized resulting
Grin-r the fai f uze to deposit: into the 1961 Bond Fund suf-
� ' . � t:rjt. finds t,) pay said principal and interest as the
arf:e accrue .
P . TermLnation of Payments in 1961 Funds . No
payment deed be made into the 1961 Bond Fund, tt,e 1961
Reserve Fund , or bcth , it the amount in the. 1961 Bond Fund
• 18-
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40 1 1 r .1
U P"�
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and the amount in the 1961 Reserve Fund are at least equal
to the entire amount of -:he outstanding bonds herein au-
thorized, both as to principal and interest to their
respective maturities , and both accried and not accrued,
in which case moneys in said two funds in an amount at
least equal to such prirc.,.paj and interest r,.quirements
shall be used solely to pay s-ich as the same accrue, and
any moneys in excess there-of in said two funds and any other
moneys derived from the operation of the joint system may
be used in any lawful manner determined by the Board of
Trustees of said Tow—, ,
G Defravirz-Delinjuencies for 1961 Bond and
1961 Reserve Furd.-, if , in ary momith , the Town shall , for
any reason , fail to pay into the 1961 Bone, Fund the full
amount abo%ie stipolatrd from the net jr. -OMr a.,nd revenues
, _
of the joint system, ti,en an amount. sha', 1 be paid into the
1.961 Bond Fund in q ,::h month from the 1961 R( serve Fund
eyaal t ., the diffF.rcn:t• b,-.tween that paid from said net
income aad revenues and the Full amount sc; s? ipulaLed , 11,E
:rvinc , so LjsPJ sf,hl' : br- replaced in the 1961 Resr-rue Fund
from ri-a fi !: .i;t tc -(-ojFs thereafter rpcc .Lued from the
Ot �ra. jjirt sys! pm not reyojiLred to be oth.er-41se
f1pp! Led If 1 n any month, O.e Tcun shall , fcr any reason ,
L dj ) t C-, pi y I rj t C, 1 *t,e 1961 Resrrve 1 --ird he f v. i amo-Int ab,j ;t.
stij, , 3uzd frcri rlk- incomi and re rF a its of tLe 1961
cy�: reiri , ut.e difterence bet�een the amoort L,3-. (j and the
,vt?k),.jnt so Ship-dated 31,311. in a like rr.an-,er 'b(- Paid thele 'l-,
rc. fAisr rr-.ven,.,e-s thereafter receiuc.d frorrn tlre
"P. ratir-1 of the kint system not require- d rc be ath,Pr:-ise
P, �11.( 1*1C:1':e - I ' 9bl
.)I i.C-_0, 1 Ys in the 1961 Bo-d Fund a-d -, � t !
iZt_ -;e rv-e Funo hall by _iscd solely and only i -,r rlv pi_-rpost
.-A pjyj -g Ir.c- l)ri-nc,. pdJ of and the :Lnterc-sL on Lhe bonds
issued .
ued f.rcivided, hovever , that ar-�Y rrorvF-ys -Whii. t
may be. at any rime in r-Ac_ess $30 ,000 00 .!-1 the 19611
Re -_,f2rve Fucl may bc- -.,:4Lchdrawn therefro,a :rtd 'ised as herein
Provided '13-Y ni- t and r,ivenue.s (.IerL .lPd t1011; 0:( � CjiilL
C'Y S Vein .
4 f, E; t ;if' Moneys ""4, 1.4 E'i I S 1'1 d L T'j_-
. 19
l cram
1,{t
other provision of this section, any moneys in any fund
designated in this section not needed to defray operation
and maintenance expenses for the joint system for the current
fiscal year nor to defray principal avid interest require-
ments for bonds payable from the joint system 's revenues for
the current and next succeeding fiscal year may be invested
or reinvested by the Town Treasurer in direct obligations
of, or obligations the principal and interest of which are
unconditionally guaranteed by, the United States of America ,
which shall be subject to redemption at face value by the
holder thereof at the option of such holder, or which shall
mature not later than eighteen months from the date of such
investment. The obligations so purchased as an investment
of moneys in said fund shall be deemed at all times to be a
part of said fund, and the interest accruing thereon and
any profit realized therefrom shall be credited to she
fund , and any loss resulting from such investment shall be
charged to the fund. The Town Treasurer shall present for
redemption or sales on the prevailing market any obliga-
tions so purchased as an investment of moneys in the fend
whenever it shall be necessary to do so in order to provide
moneys to meet any payment or transfer from such fund,.
I Exrension_ and_Betterment Fund. After making
the payments hereto above provided in Paragraphs A through
H of Section 15 of this ordinance , any remaining revenues
derived from the operation of the system (but not more than
107C :.:I the gross income from said system) may be paid into
a "Laos Water and Sewer System Extension and Betterment
Furd " for the p-irpose of extending, improving or repairing
said system , provided th<:t the principal , interest anci
reserve requirements of any additional bonds issued pur-SUant
to Seccion 11 of this ordinance , shall have priority over
said Extension and Betrermt.-nt Fund as to any current revenues
remaining after the payments necessitated by Paragraphs
through H of said Scar. ti_rn 15 .
,' , Bank / ccounts for 1961 Bonds The a fore.sd i cl
1961 Bond Fund and 1961 Reserve Fund shall he maintained and
kept separate from all other funds and accc ;nts in The First
-20-
National Flank of Denver, Denver, Colorado, or its successor,
and the aforesaid Taos Water and Sewer System Extension and
Betterment fund in any bank or banks , each of which is a
member of the Federal Deposit Insurance Corporation. Each
monthly payment- shall be glade into the proper fund and
account on tb.e first day of each month ,, except that when the
first day of any month shall be a Sunday or a legal holiday,
than such payment shall. be made on the next preceding
secular clay .
K . Surpl .is Revenues of the System , After making
t•rc l,ayments hereinaboae provided in Paragraphs A to J , both
1r,(-_l ,,-iv< of Se.- Tien 15 of this ordinance , any remaining
+ '�- , ;� 1 ► ' .� '.a:rF i ti-d may be applied to any other law-
fl:l cl..,� B;,ar.d of Tr•.;stees may direct .
1 t•.ri.aL, ty of t i en Treat the bonds
t;: ....r (I 3 t;_-i-Q i o , :, t.o :he payment of all necessary
r� .,:,t :;:�h :.C- PYr:f:; s,= ::i: ;he operacz:,n and maintenance of
<- nci ,ubi�:.t to paynte its rF ;uired by the
n.-, ic,:S Nk)s �01 and % ! to be made into the
1-1.6 j --Yjc-r tSord i'und" and a "Reser,J,:
tC• Cr.? ray:7.1F11C of the. Town_s. Water ant:
dS, UatF.ta iJo:,embcr J , 1949 , constitute an
: l vst- 'b 'L not. ?eccssari2 j7 all exclusively first-)
derived from r*rc- oreratior• of said
� ci SYSCI, M.
ecra r 17 , Additional Bonds .
A . Pa_,. t Y Lien Bonds . That nothing in this ordi-
iiincia cooL.,i4,ned shall. be co.-istrued in such a manner as to
prevent the by the Town of additional bonds or
other ob!igat f:,rt; sayable from the income derived from the
..peraLi„n of the : :Dint system and constituting a lien upon
said : ovpnues ,.n a rarity with, but not prior or superior
L'e lien .,f trc bonds herein authorized , nor cc prevent
the issuance r f bends or other obligations re:+Dnding all or
• i
part of the bonus t,crein authorized ; provided, however,
that ti.e Tcw, is not_ in defziult as to any payments required
to be Iaade ir. Paragraphs A to r or Section 15 of this ordi•-
nance ; and provided farther, that before any stich additional
A
• 21 _
_,. ,• E. ,fY.'strxat ti;•i'y';ti y, ^_,• `i',iG•.�..,� Y 71 y Ft.'�,�`.. : ki 't ^^i)?-;'1r.sd4
let y
t, # d 41
aj
+ i
parity bonds or other parity obligations are authorized or
actually issued, other than refunding bonds or other refund-
ing obligations , the earnings derived from the operation of
said joint system for each of the two fiscal years immediately
preceding the date of the issuance of such additional parity
obligations shall have been sufficient to pay the costs of
operation and maintenance for each such, fiscal year, and,
in addition , sufficient to pay an amount representing one
hundred forty per centum ( 140%) of the maximum principal and
interest requirements for a single ensuing fiscal year on
the outstanding revenue bonds and other obligations of the
Town payable from the revenues of the ,joint system and the
;.,,;,bonds or other obligations proposed to by issued.
B- Certification of_Earni^gs A written certifi-
cati.an by an independent Certified Fsblic Accountant that
said earnings , when adiristed as hereinafter provided, are
sufficient to fray said amcunt.s , shall be conclusively pre-
sumed t-c be accurate in determining the right of the Town to
authorize issx.iF , sell and deliver said additional bonds or
,.bci.gatio �s on a parity with the bonds herein authorized..
4 Consideration of j.ncrease in Costs , In deter-
i..:.iriK w er.her or not additional parity bonds or cther
parity obii.gation may be issued as aforesaid, consideration
k:l.al _ bt- gL -aer to a^f probdb: c increasc-• .;bat nct. reduct <<:n)
� n !,jErx3t. l ::x:7 = "r.j !T•dl.' tr1`dn:E' e .<penSes rr:at• will resv: r_ from
ti t. c-xpt-nd. t,irf ui 11-he funds proposed r.o b�- derived from
t.1e issI-lance. °-►d sale of the said boa ds or ether obligations .
G ^icr L.zen Bonds Nothing t- erein contained
st,,, 11 be constroed so as to prevent the Town tram iss►ri»g
1 ,, 6s or obi i.gaticns payable from the :-ex:enues of the
s-, ; ':em and 1 avin)? a lien thereon subordi»ate , i -fcricr and
tc tl^ e . t.Hn of the bonds authorizea t 'l, btu Lsstied by
tt-. i s oscii.y)ance
E L-F-r, or_Lien Bonds Not Permissible Notlr; ng
hr :��ic• c�n�a� nc-d shad l be con strlred sa as E:o �' E nTit. Li-,e
Tcwn to issue b%nds E.- other obligar. i_.,,. .; } ay.,b: F• from tre
revenues of the systctr, and having a li«n thereon l;ric.r and
sriperior to the bonds heroin a ithorized tc. bt- iss _ec!
F . Additional Bonds to Have Same Principal and
Interest Payment Dates . Any additional. parity or subordinate
bonds or cther parity or subordinate obligations issued in
. compliance with the terms hereof shall bear interest payable
semiann,jally on the first days of May and November in each
year , except that the first coupon appertaining to any bond
or other obligation may represent interest accruing for any
period not in excess of one year ; and such obligations shall
mature: on the first day of November in the years designated
by the Board during the term of' said bonds or other obliga.-
tions
Sect•ioo IE . Ref•.inding' Bonds , That the provisions
of Section 1: hereof arc- subject to thr- exception that if at
any time after the bonds or crhF. obligations herein or
hereafter authorized, or any part thereof , shall have been
iss-.:ed , th.e Board stall find it desirable to refund said
be%,)tI.s or Tither obligations, said bonds or other obligations ,
or nny Fart thereof , may be reiQnded (but only with the
ccnsont of the 'nc;ider or holders thereof , unless the bonds
;r or-her obligations have mat•.ired, or are then callable for
redemption . a-id nave been properly called) , without
rho- priority of ,re lien for the payn. pnt of the
�dA :,� ohligJLI ns 0- t:rF revers -s of tl:c• system, except
A of Section 1 *7 hereof , provided,
F-ooit :c- r. rt ,ac bends cr other obligations r e : ien of which
�r. cr rye system is prior and superior to the
le trciof_-- cf tr.e bonds herein authorized , including
Ci-.& 1 yL.y b; ds . may be refunded as in this iz:ction provided
.o,, c.i, issuaoct: ri- bonds or other obligations the lie: of
on said is cn a parity with the; lien therecu
c .e ponds herein ao�h,orized . The refunding bonds or
so issued shall enjoy ccr,;rlete L- JUal i ty
�+ lien tHiLK the ,...,rtion of said bonds or otter cbiigations
which is nor rpi-; ~ded, if any there be :, and tKe holder or
of . the r,� Lb--nding bonds or otbc-r -)bligations shall he
to all cf the. rights and rrivilcrges enioyed by
rho nol-der or holders ,i the bonds or orl-.hr obligations
: ' l 3
VA
TI
I iV
r !;' t z { is * t v refunded thereby. The refunding bonds or other obligations
shall be issued, subject to the provisions of Paragraph F of
Section 17 hereof, with such details as the Board may by
ordinance provide ; provided, however, that if only a part of
the outstanding bonds or other obligations is refunded, and
if such bonds or other obligations are refunded in such
manner that the interest rate thereof is increased or if
any refunding obligation matures at an earlier date than
the maturity date of the corresponding obligation refunded
thereby, then such obligations may not be refunded without
the consent of the holder or holders of the unrefunded
portion of said obligations ; and that the refunding bonds
or other obligations shall either be sold for cash at not
less than the par value and accrued interest, and the pro-
ceeds thereof shall be used to pay the obligations refunded,
or if so permitted by law and then only with the consent
of the holder or holders of the obligations refunded, the
refunding obligations shall be delivered dollar for dollar
in exchange for the bonds or other obligations refunded.
Section 19 .. Equality of Bonds . That the bonds
authorized to be issued hereunder and from time to time
shall not be entitled to any priority one over
L,�-.o other in the application of the revenues of the system,
reg,ard) ess of the time or times of their issuance , it being
the intention of the Board that there shall be no priority
amnn�,, the bonds regardless of the fact that they may be
-Issued and delivered at different times .
Section 20 . Compulsory Sewer Connections . That
the Boark-I4
has determined, and does hereby determine , that
IL is ` or the best interest of the Town and the inhabitants
the re,Df for bealth anti sanitary purposes that inhabited
property be connected to the sewer facilities of the joint
syst:t_:,,m- nod the Board hereby orders that the owners of
inh;�bitcd property within the Town , any boundary of such
propt- r-ty being within two hundred feet of a sewer service
Iii-e- , shall. connect such property to the line without
expense to the ne Town within sixty days from the date of
pubiicaLion of this ordinance or if such a line is not then
-.24-
N
i�J
-.g
available within sixty days from the date such a line is
extended to within two hundred feet of a boundary line of
the tract or parcel of land. The Town shall enforce and
compel such connection in the case of a failure so to con-
nect within the time herein prescribed by suit, action, or
special proceedings in equity or at law; and the Town may
prescribe rules and regulations to govern, regulate and
enforce such connections, including but not limited to
fixing penalties for the failure so to connect, and to
entering into agreements with the State of New Mexico, or
any public corporation or political subdivision thereof, or
any agency or instrumentality there.*.-of, e.g. , the County of
Taos or its health department, if any, necessary or desirable
to effect the provisions hereof.
Section 21 . Protective Covenants . That the Town
hereby covenants and agrees with each and every holder of
her
eby
bonds issued hereunder:
A . Use of Bond Proceeds. That the Town, with the
proceeds
roceeds derived from the sale of the bonds herein authorized ,
wilt
ilt proceed without delay to extend, enlarge and better the
system, as hereinabove provided .
B. Payment of Bonds Herein Authorized. That the
Town will promptly pay the principal of and the interest on
every bond issued hereunder and secured hereby at the place ,
on the dates and in the manner specified herein and in
said bonds and in the coupons thereto appertaining according
to the true intent and meaning hereof . Such principal and
interest are payable solely from the net income to be
derived from the operation of and the resultant rates and
cb,jrges fc,r the use of , and the products and service rendered
by, the system, and nothing in the bonds or coupons or in
this ordinance shall be construed as obligating the Town to
L'(7,iceir. any of said bonds , principal or interest , from anti
the Folder or holders thereof may not look to, any general
or other fund except the income which is so pledged under
the provisions of this ordinance .
C . Use Charges ., That while the bonds authorized
herein or any of them remain outstanding and unpaid, the
-25-
V, �Yl U
j r:Tw e 54
rates for all services rendered by the system to the Town
and to its inhabitants and to all consumers within or,,fith-
out the boundaries of said Town shall be reasonable and just,
taking into account and consideration the cost and value of
the system and the proper and necessary allowances for the
depreciation thereof and the amounts necessary for the re-
tirement of all bonds and other securities or obligations
payable from the revenues of the system, the accruing in-
terest thereon , and reserves therefor; and there shall be
charged against all purchasers of service, including said
Town , such rates and amounts as shall be adequate to meet the
requirements of those and the preceding sections hereof, and
which shall be sufficient to produce revenues or earnings
annually to pay the annual operation and maintenance ex-
penses , and both the principal of and interest on bonds and
any other obligations payable annually from the revenues
thereof , including the reserves therefor, all of which
revenues , including those received from the Town , shall be
subject to distribution to the payment of the cost of
operating and maintaining the system and the payment of
principal of and interest on all obligations payable from
the revenues of the system, including reasonable reserves
therefor , Insofar as practicable , all. users of water shall
Lie metered. Before water or sewer services are made
,available to any new customer, an adequate deposit (to be
determined by the Board of Trustees) shall be made. No
free service , facilities nor commodities shall. be furnished
by said system to anyone, including but not limited to the
Town , r-hat should the Town elect to use for municipal pur-
poses water supplied by, electrical energy furnished through ,
or the sewer facilities of , said system, or any combination
Lhereof , or in any other manner use the system, or any part
thereof, any use of the system by or of the services rendered
Hereby ru the Town , or any department , board or agency
thereof , will be paid for from the Town 's general fund or
other available revenues at the reasonable value of the use
so made , or -service , facility or commodity so rendered -, that
all the income so Iderived from the Town shall be deemed to
-26-
'
.< .W'�TJ'-r�;4,` +4• 9t ft tkW3''; ` ftL, jai .'S.T (Ft n yt" ? r� ';? :<. �t'''�-'tva,�'"" ' r.^.•..+r p� y ,, t •1
'
:!,';' i + j'`''kr 't',� :1'i i..'krt 3� "-F' i t,r.`t S,iGw. t,:.` �y. :+ ex'. z.µ,{ t ', � ' ry ti,t:.�v'C ;a "5y t r '• >.
be income derived from the operation of the system, to be
used and accounted for in the same manner as any other
income derived from the operation of the system. The
charges so required to be made by the Town shall include a
reasonable payment for fire hydrant service, which charge
shall be not less than $8 .•00 per hydrant per month ($96 .00
per hydrant per year) ,, payable in equal monthly installments
and beginning June 1 , 1961 . Said rental shall include all
water needed by the Town for fire Protection , and water and
sewer service needed by all Town offices , the street depart-
ment , fire department , public parks and the To7alien
ed
swimming pool . The Town is granted by statute upon
Each lot or parcel of land In the Tow* for the charges
imposed hereunder for water and services supplied by the
system to the owner thereof , rind the Town e:Kpressly covenants
and agrees that it will cause each such lien to be perfected
in accordance witit the provisions of Section 14-39-3 to
Section 14-.39-•6 , New Mexico Statutes Annotated, 1953
Covpi l a t ion , as from time to time amended, and the. Town
7c,,enant-.s and agrees than it will take all steps necessary
to on f c rce s%i!h. l :en as to each piece of prcperty the owner
which shall ':)r: delinquent for more than six months in the
;';�ti►nc,T c of charges imposed he reunder-
!;. i "_y_ of gt.ara�ts . That the Town will forth -
vi r.h arJ iri any event prior to the delivery of any of the
bonds ite re i r. '�tl:;�rized , fix , establish. and levy the
ra ;:L s an-1 ch,jrges: wh' ch are required by Faragraph C of
n 11 of t.l:is ordinance , if such action be necessary
11'.t."t+l0:* Ntw reduz.tion in any initial or (; v fisting rate
fc,r tl:e s', .tem may be made unless,
';'he Town has fully coml: li-ed with the pro
►.' I,(. O.t l) of this ordinance for -it least ripe
f . sea i ~r. ,uaiately preceding such rnd'artio+l of c }:r
i +t ] L1 :7 � : c;Ll: �i:::t'ti71e
Tne audit required by the : r.tiopenden t
% ;:tta-fir. by F,iras;raplh 1� of this Secti..'n i �f this nrdi
101 the full f : s i year imrnedi at.c i y 1•reti.eding such
lt.'ULtC�. lvCi diSCL0:ir17 [Gait t11t3 ESt.lmc)ted, !-, '( .: 5 r('s'.Ilting
t .
FILMED DOCUMENTS
ARE THE BEST AVAILABLE COPIES.
; �,�C.:t,t f '.,rt..V, r ..r
H day µ 4 �::"'tr'ay.. ^'j_ i", ac t�.. a •a s w;.�x..
..q�.�'� R : '�t'2 ,�?f;tf'�'��j"*''•��?°,y?•'kL �
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` t. ;'r " Y 'Fit_ y 9.X'j,F .r'i- t e .1 v� x" 2 ff
..... r;,�x R���.� :�!• �M
7
from the proposed rate schedule, after its proposed reduc-
tion , will be sufficient to pay an amount at least equal to
the annual cost for said period of operation and maintenance,
and , in addition , one hundred fifty per centum (150%) of
both the principal of and the interest on bonds and any
other obligations paya"Ae annually from the revenues of
the system, including reasonable reserves for all such
bonds .
E.. Efficient Operation , That the Town will
operate said system so long as any of the bonds herein
n,ithorize.d are outstanding, to maintain said system in
efficient operating condition and to make such improvements,
c:xt:ensions , enlargements . repairs and betterments thereto
as may be necessary or advisable to ins',,re its economical
and efficient operation at all times .
F. Records . That so long as any of the bonds
rtmain outstanding proper books of record and account will
he kept by the rows separate and apart from all other
records and acco!ints , sl-t:wing complete and correct; entries
of all transac7ions :-elating to the system,. Such books
si :i t l i.ni• 1 -jde .' b•.t not nFt7Pssarily be limited to) monthly
1 . The n .;i-,;b :r of Customers by classes .
t ;'he re,-,en•ses received from charges by
including but not necessarily Limited
L,j ?,siti.•:: . t : c;n by rater facilities and sewer facilities _
A detailed statement of the expenses of
to Inspect . That any holder of any of
t h• ,.,ncis ,-ny �i;,l.y a ith.oriaed agent or agents of slic•h
► i- ;-haI It ha tht r ;g•r,t at all reasonable times to
A ! se:_ords , a_,..c jnts and data reLating thereto and
f l e, t st er•, er _l all properties comprising said
ti t tam
E; d t That the Town further agrees Lhat it
wi l i , :�� tc,i;� sixty dais following the close of eact-, fiscal
veiil' • cause all audi r of soch.. books and accounts to be made
by an inclependent Certified Public Acco,_ir)tant , or an agent
2b -
of the State Auditor of the State of New Mexico showing the
receipts and disbursements for the account of the system,
and that such audit will be available for inspection by any
holder of any of the bonds. Each such audit, in addition
to whatever matters may be thought proper by the accountant
to be included therein , shal.l. include the following:
1 .• n statement in detail of the income and
expenditures of the system for such fiscal year, and in
detail of the `otal water consumption , including but not
necessarily limited to domestic consumption , water used for
fires and flushing mains , and water consumed or lost and
unaccounted for, 'and total sewerage treatment by classes of
customers .
2 A balance sheet as of the end of such
fiscal year, including all funds created by the various
ordinances and other proceedings authorizing the issuance
of outstanding bonds and other obligations payable from
the revenues of the system .
3. The accountant 's comment regarding the
111aT:;ier in which the Town has carried out the requirements
1�f tnis ordinance , and any other ordinance and other pro-
c••. edings aut} crizing the issuance of outstanding bonds or
:.:'er' c�hlil;�ttions payable from the revenues of the system,
ono Oio accountant 's recommendation for any charge or im-
,�_��vr>n:rnL it L1:6 ,operation of the system,
4 . A list of the insurance policies in force
, Lhc• 01)d rt 't.11e fiscal year, setting out as to each
pc, ( icy Lh • air:ouilc of the policy, the risks covered, the
n : n;c of Llze insurer and the expiration date of the pol i r:;
5 A recapitulation of each fund or account,
a <1 nV tale var'Lous ordinances and other proceedings
iss..iance of outstanding bonds and other
payable from the revenues of the system , into
tWIci arl put moneys derived from the opera ion of the
or deri o d from the sale of the securities , Such
anaiy6is to show tht;, balance in such fund at the beginning
oi' Lhe riscal vear, Li•,e deposits and withdrawals during
said year , and the ba i ance - at-. the end of said year.
- 2y.
i
6 . The number of metered water connections,' -
(unmetered water connections , fire hydrant connections,
tered sewer connections , and unmetered sewer connections
�. at the beginning and at the end of the fiscal year.
7 � The number of customers per class of
customers and revenues per class of customers , including
but not necessarily limited to classification by water
facilities and sewer facilities .
A similar audit and report shall be prepared by Town
employees immediately after the expiration of each six
months of each fiscal year. All expenses incurred in the
making of the audits and reports required by this section
shall be regarded and paid as a maintenance and o.,peration
expense . The Town agrees to furnish forthwith a copy of
each of such audits and reports to the holder of any of
the bonds at his request, and without request to Quinn &
Co . , Albuquerque, New Mexico, i .e. , the purchaser of the
bonds from the Town , and to The lirst National Bank of
Denver , Denver , Colorado, i .e . , the above-named paying agent
bank, or to any successor paying agent bank, after each
:;uch audit and report has been prepared, and that any such
�)(-tcarr shall leave the right to discuss with the accountant
T person making the audit and report the contents thereof
il."d to ask for ssch additional information as he may
;p,o�onabl.y require . The Town shall publish a sommary of
such annual .audit at least once in a newspaper within
Three months from the end of the fiscal year .
Billing Procedure . That all bills for water ,
or facilities , sewer service or facilities ,
i :r a:;v COMbinilrion thereof. , furnished or served by or
c,uV,h � ip system shall be rendered to customers on a
1:t2"GlarlV established day of each and every month either
mcnthly in advance or in the month next succeeding Lhe month
j� .M,,h ich the service was rendered and shall be due within
tWV11t1,1 day_, from t:he date renderedy and in the event said
bi 1l .,, r,re not paid within twenty days after the date when
reti6ered, wat.er and water service shall he discontinued,
and the rates and charges clue shall be collected in a lawful
- 30-
M�. � t f�.. ry' .r� � �! �} ..F F y� ,,F�}{ �y,.�e'A•St`F'•'�= i FY.f'�. �
''H a.�.L �' .� .� ..:� � � t +' ..'tJ,`i� ,-';'.4.. {'S '�� �"' °K i.t .c 't'•3k
1; "x
�".�;}'r.=r 'fai �' yi .F .i'Z�t'L.S ��.��l l:..t� 4 .iy f. �f.<J� '��•-�: 4 �' `.{ v`1 �t 1� 1L t„ } �<r � Ny j..`x. r Y
ems, [�' •� 4� �x � �.};��p �,, ' � �•�?•
cif .t-lr?'`� at. •l�e;,�d; .F�t' ,, .1 �, sir •��`� �,F., ir,. "�r �r;�#rFti�^'�.��`.;;,ej, b 1� a" 'L�g7'T},=,^,��=a�y'?:eS",++`�`�a,y"'��i�. '' {t''�f��„ .l i;,,; .
= t y'''t .J' �C E .t i '•,�S t `k - -•� fli.l� r� � '4 �.r t �4. { y t'�}} }�
`t;•`Y�L
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G'Y t
t. Y
manner. Water charges and sewer charges may be billed jointly
with each other or separately; and each such joint bill shall �;
show separately water and sewer charges . If said monthly
total bill is not paid by the designated settlement date,
the water service to the customer will be discontinued.
Said service will not be started until said total bill and
a service charge of $5 .00 (for the reconnection) have been
paid in full ,
J. Use of 1961 Bond and Reserve Funds. That the
1961 Bond Fund and the 1961 Reserve Fund, shall be used
solely and only, and said funds are hereby pledged, for the
purpose of paying the interest on and the principal of the
bonds herein authorized, except for those moneys in the
1961 Bond Fund and in the 1961 Reserve Fund as are in excess
of the interest on and principal of said bonds , both accrued
and not accrued, to their respective maturities .
K. Charges and Liens Upon System, That from the
revenues of the system the Town will pay all taxes and
assessments or other mrnicipal or governmental charges , if
any , lawfully levied, assessed upon or in respect to said
system , or any part thereof , when the same shall become due ,
:ind it will duly observe and comply with all valid require-
ments of any municipal or governmental authority relative
rc; any part of said system;, and the Town will not create
fr-r r.c. be created any lien or charge upon. said system
,3r the rejen�,c- s therefrom except as permitted by this
ol*dinance , or it wi l 1 make adequate provision to satisfy
and disc harF;E within sixty days after the same shall accrue ,
11 i.iwl ul c i.iir s and demands for labor, materials , supplies
c.'r n0lor obj ..-cts , which_ if unpaid, might by law becomt a
ipon said' system or upon the revenues therefrom; pr.o-
v� i - .dr•, , '. r,at nothing herein shall require the Town
l + �� or caiise be discharged, or make provision. for
`,,jcY! t a-� nssv.ssmont . lion or charge before the t_imE when
payriert: ther,3uf sfka t l be due or so long as the val ldi ty
thereof sl al ' bF- cc,utEsted in good Eaith by appropriate
Leg,] i procc_'edi Iles •
• 31
;.ram :� t3 r
.Y, y1' s ..e S .fYtt,a dif 7. r �`�f44.'�.`#.�d'�i t:i t' fr+C+o gP °+ e t
b t p.fvi1+ F W Ny iW a >r
h •.{. o-i;R�+ . J "Ts .�,�. .3 ti5:1C:; r 3. Ir:}' KS..'; • '.'' ;'rx:•j, y.
,fi w 31 1 t •tr. 'Rr `. r r: :. - _x.,•s p? L s'� )♦t .s. 1 '`"�
,; 7jt. ,1C ! ,,y 4. ra�'r itx}. ttr`N•.
Y r r J.. .r' '?k,{,xa $;i 1 �ps.a; t.� A:f j r,,,,,{{ �,,�tn jja. tyi.kF A13,. ��PP
t r ri t .Y 7 3 •lc. .i& "2'A..`d:. R J; WaS' f kt` t .Y•xr'i': :tk".,6.1
st'��.�d3 n
Op
L. Insurance . That the Town in its operation of
the system will carry fire and extended coverage insurance,
workmen 's compensation insurance and public liability in-
surance and other types of insurance in such amounts and to
such extent as is normally carried by private corporations
operating public utilities of the same type . The cost of
such insurance shall be considered one of the operating
costs of the system. In the event of property loss or
damage , insurance proceeds shall be used first for the
purpose of restoring or replacing the property lost or
damaged, any remainder shall be treated as net income , and
shall be subject to distribution in the manner provided
hereinabove in Section 15 hereof, for net income and revenues
derived from the operation of the system..
M. Competing System. That as long as any of the
bonds hereby authorized are outstanding, the Town shall not
grant any franchise or license to a competing system, nor
shall it permit during said period (except as it may legally
be required to do so) any person , association , firm or
corporation to sell water, water service or facilities , or
Ft-•wer service or facilities , to any consumer, public or
private , within the Town .
N . Alienating System.. That the Town will not
sell , lease , mortgage , pledge , or otherwise encumber, or in
any :Wanner dispose of, or otherwise alienate, the system, or
any part thereof, including any and all extensions and
add-I t i.ons that may be made thereto, until all the bonds
_ rein authorized to be issued shall have been paid in full ,
both principal and interest , or unless provision has been
matte 'k herefer , except that the Town may sell any portion of
paid property which shall have been replaced by other prop-
erty of at least equal value , or which shall cease to be
necessary for the efficient operation of the system, but in
no manner nor to such extent as might prejudice the security
for the payment of the bonds herein authorized, provided,
however, that in the event of any sale as aforesaid, the pro-
ceeds of such sale shall be distributed as net income of the
system in accordance with the provisions of Section 15 hereof .
-32-
1P
0. Extending Interest Payments . That in order to
prevent any accumulation of coupons or claims for interest
after maturity the Town will not directly or indirectly,
extend or assent to the extension of the time for the payment
of any coupon or claim for interest on any of the: bonds
issued hereunder and it. will not directly or indirectly be
a party to or approve any arrangement for any such extension
or for the purpose of keeping alive any of said coupons ; and
in case the time for payment of any such coupons shall be
extended , such coupon or installment or installments of
incerest after s,;ch extension or arrangement shall not be
r:ntitled in case of default hereunder to the benefit or
security of this ordinance except subject to the prior
payment in f.:: 1 of the principal of all bonds issued here-
und,?r and then ot:t standing, and of matured interest on such
oonc?s the payment cf which has not been extended.
• P . Surety Bonds , That each municipal official
Or other person having c!istody of any funds derived from
cep ura tik.-n of O.e s;stem, or responsible for their handling,
he bonded in an amount at least equal to the total _
in t:-s custody at any one time , which bond shall be
••c:i ; a ont-d Laj.og the proper application of said funds . The
;:c d shall be considered -e of the
j•, � , t.i are 1-11C systr.m . `
Mana emery t . That- tree. Town shall
.t- r: t-n,ed end qu a l if:.ed manager Ear the join t
:,a ���. � :. 14�• �Lc:: :;h,, : 1 he under the direct control c:i.
. �:•�;� sl �:.E' a: Yec: tly to said Board of Trustees . Tt:e
:. , I •+ r:atl:,ger �;hal i be confined tc, ti:P. etficienr. ,
;"f Lhe sysLern and to t�.e admin i 5tr,
I'l1C i. . �:�:� . *Is:; The City Clor.: shall be liable o
r ,i,;?. ,t:: •, :::,n;�-rn1ng th& ; cint sys.F;.m , ,nciudind
1 rtt ; '1 . Iax, :3 Ccci:-`ds' all billings anl� cnllocLlcrs `r
r.,,ae•.•5 ., :, f,�:cc,r :: :;t ct rates for service ;cstablisheu a[,�i
_ cntrolled b}• c}.e 1i.-,ard or 'Trustees), enforcement of all
b011d COVc 13nL- s �: :d rho purchase of materials and supplies
neede.J for tr:e off : cie r,t operation of thr. system , upon
receij�;: o£ a 1.urc1-.as,:, order from the afcresai .-i Manager . In
- 33-
�r
the event of default on the part of the Town in paying
principal of or interest on said bonds promptly as each
falls due , or in the keeping of any covenants herein con-
tained , and if such default shall continue for a period of
sixty days , or if the net revenues of the system in any
fiscal year should fail to equal at least the amount of the
principal of and interest on the revenue bonds and other
obligations (including all reserves therefor specified in
the authorizing proceedings , including but not limited to
this ordinance) payable from said net revenues in that
fiscal year, the Town shall retain a firm of competent
m.3nagemen t engineers skilled in the operation of water and
sewer systems to assist the management of the system so
long as such default continues or the net revenues are
less than the amount hereinabove designated.
R. Performing Duties . That the Town will faith-
fully and punctually perform all duties with respect to the
,s
system required by the Constitution and laws of the State
of New Mexico and the ordinances and resolutions of the
T,,Wrl , including but not limited to the making and collecting
�f Y-ea sonable and sufficient rates and charges for services
rendered or furnished by the system as hcreinbefore pro-
vided , and the proper segregation of the revenues of the
< < ern anti their application to the respective funds .
b Other Liens . That other than as provided by
ordinance , there are no liens or encumbrances of any
nIture , w!•,atsuever, on or against said system or the
;�i s . ,_ri.ved or to be derived from the operation of the
T. To Y.istence . That the Town will maintain
5 corporate i �, nti Cy .and existence so .long as any of the
he•t�J� hf.rc:in a Litt' crized remain outstanding.
Ca !etion Bonds . That in order to insure
of the Project . and to protect the holder
or- ;folders of the bonds , the Town will require that the
c:cntract.cr tc whom is given any contract for cons tru•:tion
to the Project to supply a completion bond or
;pond! satisfactory to the Town , and that any sum or sums
-34 -
J.,
derived from said completion bond or bonds shall be used
within six months after such receipt for the completion of
said construction , and if not so used within such period,
shall be placed in and be subject to the provisions of the
Income Fund provided for herein .
Section 22 .. Events of Default. That each of the
following events is hereby declared an "event of default,
that is to say,:
A. Payment of the principal of any of the bonds
herein authorized to be issued shall not be made when the
same shall become due and payable, either ac maturity, or
by proceedings for prior redemption, or otherwise .
B. Payment of any installment of interest shall
not be made when the same becomes due and payable or within
thirty days thereafter .
C . The Town shall for any reason be rendered
incapable of fulfilling its obligations hereunder.
D. The Town shall make default in the due and
punctual performance of its covenants or conditions , agree-
ments and provisions contained in the bonds or in this ordi-
oance on its part: to be performed, and if such default
'ihall cortin-le for sixty days after written notice specify-
1 -Z SUCF default arc] requiring the same to be remedied
shall have been given to the Town by the holders of twenty-
ti ,�c per cent: in principal ncipal amount of the bonds then out-
s tandi ng
Section 23 . Remedies for Defaults . That urin the
h,;ppening and continuance of any of the events of default:
as Faro vitle(I to Section 22 of this ordinance. , then and in
evr.-ry case L1,e holder or holders of not less than twent%
j' i - ; finer centv--. in principal amount of the bonds then out-
-Lnciiuding but not Limited to a trustee or trustees
!'.1ijill p.rc:ceed against the Town , its governing body ,
AIIii it ;; agerts , officers and employees to protect and enforce
the rights (,.I ;illy holder of bonds or coupons under tEis
or. dinance t--y ifi,indai.-ms cr other suit , action or special pro-
cC(a(Avgs in equi. t.y or, at Idw, in any court of compet*:ent-
i -.ir.isdiction , either f�,r the appointment of a receiver or
-35-
for the specific performance of any covenant or agreement
contained herein or it an award of execution of any power
herein granted for the enforcement of any power, legal or
equitable remedy as such holder or holders may deem most
effectual to protest and enforce the rights aforesaid, or
thereby to enjoin any act or th.ir.g which may be unlawful or
in violation of any right of any bondholder, or to require
the governing body of the Town to act as if it were the
trustee of an expressed trust , or any combination of such
remedies . All such proceedings at law or in equity shall
be instituted, had and Maintained for the equal benefit of
all holders of the bonds and co.ipons then outstanding. Any
rocciver appc,in- ted in any proceedings to protect the rights
of such holders here•.tr.der , the consent to any such appoint-
being hereby expressly granted, may enter and take
possession of the system,, operate and maintain the same ,
prescribe rates , fees or, charges and collect , receive and
apply all revenues arising after the appointment of such
receiver in the same manner as the Town itself might do .
V.%e failure of any such holder so to proceed shall not
:71?1 evc. t:lie T,,-wn or ar,y of its officers , agents or employees
a,.nv liability fcr fail:jre to perform any duty. Each
.:r privile-gE of 3nv such holder (or trustee thereof) is
to any other right or privilege ,
,! c- Fsorcisc. c : ally right or privilege by or on behalf
A. :►o� i�,; ld�:r sea :. i net be deemed a waiver of any other
tiFc .- 1 .",^ Duties ';p;;n Defaults . Thar upon the
y c',t ten e rents of default as pro:iided in
:r 22 vi .:r:l.s ordinance , r.Le Town in addition , will do
r��< r acts o-� behalf Of ar�d for the hcltiers
.� �,•. T c1s, .3:,(1 t,) rrotect and preserve the security
c :.'..e ; ..yn'.0`1r. f their bonds and cOUAGns and to
p5yIr,enc cf the principe 't of and interest on said
;it7 itl �::. ..•ilt� t .;Y oS r,KE 0riu-.e become due . All proceeds do ri ved
L".c.*P f ic,m , yo 1 olig aS any of the bonds herein atlthorized,
=,s to pri::cl.pa'_ or i:nt-rrest , arc outstanding and
shall lac. paid i-- i o t'r.e 19' 9 Bond Fi.1^d , if a-ny 1919
3 E,
i 7t Y 1 I' ..:).` 5 r+'4.'t'.1. .f.. ....V .r..C �+Y7,.y+t1';v4.?. •� x'j,.V.g
j x. t i `S 'r� y ; '5,. '+•' �t,: � ti f z Ir i �'' .Ct'� A 1 i i,i��f .�.�x:f r +.F'13 S a�J�`y fis
I..
bor,ds be outstanding, or if not, then into the 1961 Bond
Fund, or in the event of bonds hereafter issued and out-
standing during said period of time on a parity with the
bonds herein authorized, into such bond funds on an equitable
and prorated basis, and used for the purposes therein pro-
vided . In the event the Town fails or refuses to proceed
as in this section provided, the holder or holders of not
less than twenty-five per cent in principal amount of the
bonds then outstanding, after demand in writing, may pro-
ceed to protect and enforce the rights of the bondholders
as he reinabove provided.
Section 25 . Prior Charge Upon Lower Rates . That
if it should be legally determined that any legislative or
other body, commission or authority has power lawfully to
prescribe a lower schedule of rates than that contemplated
by this or other ordinances , and if such lower rate shall
be prescribed, then the payment of interest on and the
principal of said bonds , issued pursuant to the provisions
of this ordinance , shall constitute a first and prior charge
on the revenues received from said system, together with
the bonds and other obligations the lien or liens of which
is or are on a parity on such revenues with the lien there-
on of the bonds herein authorized, subject to any right of
any holder of any of the outstanding 1949 bonds , anything
i.v this ordinance- contained to the contrary notwithstanding.
Section 26 Delegated Powers . That the officers
of the Town be , and they hereby are authorized and directed
co rake ail action necessary or appropriate to effectuate
t.hu provisions of this ordinance , including, without limiting
t ho gene ra 1 i ty of the foregoing:
A . The printing of said bonds ;
B . The execution of such certificates as may be
reasonably required by the purchasers thereof relating , inter
a l i 1'i , tL, the signing of the bonds , the tenure and identity
of the mov icipal officials , delivery of the bonds and the
re.uei.pt of the bond purchase price and the absence of li.ti-
.,aLiun , pending or threatened , affecting the validity thereof.
37 -
Section 27 . Amendment of Ordinance .
A. Consent Needed. That this ordinance may be
amended or supplemented by the Board in accordance with the
laws of the. State of New Mexico, without receipt by the
Town of any additional consideration , but with the written
consent of the holders of three-fourths of the bonds authorized
by this ordinance and outstanding at the time of the adop-
tion of such amendatory or supplemental ordinance (not in-
cluding in any case any bonds which may then be held or
owned for the account of the Town, but including such
refunding bcnds as may be issued for the purpose of refund-
ing bonds TIC,V owned by the Town) ; provided, however,
tha L nr, such ordinance shall have the effect of permitting:
1 . An extension of the maturity of any bond
authorized by this ordinance ; or
2 . A reduction in the principal amount of '
rMV bond, the rare of interest thereon , or the redemption
Premium payable thereon , or
3 . Vrie creation of a lien upon or a pledge of
reve��ues ranking prior to the lien or pledge created by
,1•,is urd-inancF , or
reduction of theprincipal amount of
:,.,rds renu: rr.d for ccnsent to such amendatory or supplement.-11
The esr.ablishment of prioricies as between
:+s i:,suetl a��i✓ c-u 5;:anding under the provisions of this
or
o ' F;e modification of or :anything affecting
_f t:t l.,oiders of lass than all of the bonds
,
�,. tro_,::ent Bir,clin� on Successor Rolder' s of A,inds
1 rr,,.• hcitl,�:r> c•L a; lt:asL seventy-give r.er centum (757.) in
of,;,ount of the bonds outstanding as in
: r:c•d , at the time of the adoption of such
or the predecessors In title of such
}_ ',e c oi-isented to and appr:.ved the -,&,ption
C.f: rL•ln ::iC_,vided , no holder of any bond whott:C:r
Gr t.-OL i:uch holder shall have consented to or shah have
revoked any consent as in this section provide(l, shall have
any right or interest to object to the adoption of such
amendatory ordinance or to object to any of the terms or
provisions therein contained or to the operation thereof or
to enjoin or restrain the Town from taking any action
pursuant to the provisions thereof„
C . Consent Irrevocable for Six Months . Any
consent given by the holder of a bond pursuant to the pro-
visions of this section shall be irrevocable for a period
of six months from the date of the publication of the notice
above provided for and shall be conclusive and binding
upon all future holders of the same bond during such period.
Such consent may be revoked at any time after six months
from the date of the publication of such notice by the
holder who gave such consent or by a successor in title by
filing notice of such revocation with the Clerk, but such
revocation shall not be effective if the holders of seventy-
five- per centum ( 75%) in aggregate principal amount of the
hands outstandirg as in this section defined have , prior
!:c) the attenipted re •:ucation , consented to and approved the
amendatory ordinance referred to in such revocation ,.
1) . Proof of Consent . The fact and date of the
-Xecution of a- instrument under the pro°•risions of this
5r� l:itr; m.ay be (.,roved by the certificate of any officer in
all', oi. sdictic,..' wbc-, by the laws thereof is authorized tc.
tak.r cf deeds within such jurisdiction , ti••,; t
C►, : ;)erson .i.gn ng s-ich instrument acknowledged before him
t.hcreuf ,, or may be proved by an affidavit c;i
to such execution sworn to before such officer
F . Fro.•f of Ownership of Bonds . The amount a!=,!
c.t L-he bonds h.el.d by any person executing such
Lr.s . •.•.in;f.r: C and t-hc• date of his holding the same may be
i;y a .E ; i executed by a responsible bank or
L. :-us:. cLwpany st:c,winl; that on the date therein mentioned
ti-ac}; per. scn had -,r deposit with such bank or trust company
coil boi,ds describe :.( in such certificate
Section 28 . Ordinance IrrEIL alable That after
any of the bonds herein ait.horized are: iss•.jed, this ordinance
_
-.39-
FILMED DOCUMENTS
ARE THE BEST AVAILABLE COPIES.
shall be and remain irrepealable until the bonds and the
interest thereon shall be fully paid, cancelled, and dis-
charged, as herein provided.
Section 29 ., Severability Clause . That if any
section , paragraph, clause or provision of this ordinance
shall for any reason be held to be invalid or unenforceable ,
the invalidity or unenforceability of such section , paragraph,
clause or provision shall not affect, sny of the remaining
provisions of this ordinance .,
Section 30 Repealer Clause , That all by-laws ,
orders , resolutions and ordinances , or parts thereof, in- .
consistent herewith are hereby repealed to the extent only
of such inconsistency, This repealer shall not be construed
to revive any by-law, order, resolution or ordinance, or
part: thereof, heretofore repealed.
Section 31 , Emergency Clause. and Effective Date .
ThAL this ordinance is necessary for the preservation of
the public health , peace and safety of the inhabitants of _
the Town , and that by reason of the fact that extensions ,
enlargements and betterments to tlie: system are immediately
ronuired. dhis ordnance is hereby declared to be an
t�_a)ergency measure on the ground of urgent public need, and ,
- �•rt: fora , immediately upon its adoption by at least a
+ s 1 cix t y of a ! I cif the f-,-il ly authorized members of the
�nr ire Board and upon: its, final passage this ordinance
shaI1 hc_ rozorded in the bock of ordinances of the Town
kvr.•t- f-or that. purpose, authenticated by the signatures of
Mayor and 'town Cierk., and shall be published in the
a newspaper published and of
circulation in the Town of Taos., in accordance with
Rild sai-d ordinance shall be in full force and effect
c?ays ��fter s,-,ch, publicaLion .
PA.SSF.D ADCPTE.D. SIGNED AND APPROVED this
Of July
Mayor
at,( r
c
Town'-Clerk _
0
ORDINANCE NO. 510
AN ORDINANCE PROVIDING FOR THE EXTENSION,
ENLARGEMEVT AND BETTERMENT OF THE JOINT WATER s
AND SEWER SYSTEM OF THE TOWN OF TAOS, AT A TOTAL
COST OF NOT EXCEEDING $1559000.00 (EXCLUDING ANY
SUCH COST DEFRAYED BY SOURCES OTHER THAN REVENUE
BOND PROCEEDS) ; DECLARING THE NECESSITY FOR MAKING
AND ISSUING SECOND LIEN JOINT WATER AND SEWER �
•
REVENUE BONDS PAYABLE SOLELY OUT OF THE NET INCOME
TO BE DERIVED FROM THE OPERATION OF SUCH MUNICIPAL
UTILITY ; AUTHORIZING THE ISSUANCE AND SALE OF SUCH
REVENUE BONDS IN THE AGGREGATE PRINCIPAL AMOUNT OF
$155 ,000.00 ; PROVIDING THE FORM, TERMS AND CONDI-
TIONS OF SUCH BONDS , THE MANNER OF EXECUTION THERE-
OF , THE METHOD OF PAYING SUCH AND THE SECURITY
THEREFOR; PROVIDING FOR THE DISPOSITION OF THE IN-
COME DERIVED FROM THE OPERATION OF SAID JOINT
SYSTEM; RATIFYING ACTION PREVIOUSLY TAKEN CONCERN-
ING SAID JOINT SYSTEM AND SAID BONDS; REPEALING
ALL ORDINANCES IN CONFLICT. HEREWITH; AND DECLARING'
AN F.MU RG E;NCY .
WH ER.E4S , the Town of Taos 'herein sometimes merely '
designated as the "Town ") , in the County of Taos and State
of New Mexico, is a legally and regularly created, organized
and existing municipal corporation under the laws of the
State of New Mexico, its full corporate name being "Town of
Taos) " and has existed as such since the 7th day of
igy , 1934; and
WHEREAS, the Town does now own and operate a joint
water and sewer system, being a single operation (and herein-
after referred to as the "joint system" or "system") ; and
WHEREAS, the interest of the Town and of the
inhabitants thereof , and the public interest and necessity,
demand the extension, enlargement and betterment of the
joint water and sewer system, such undertaking being herein '
sometimes merely designated as the "Project"; and
i
-2-
WHEREAS , the Town ( then operating as a l:'illage) ,
pursuant to Ordinance No. 201, adopted and approved on the
2nd day of December, 1949 , as amended by Ordinance No. fl7
passed, adopted, signed and approved on the 5th day of
, JuIX 1961 , has issued its Village of Taos, New Mexico,
Water and Sewer Revenue Bonds .. Series November 1, 1949 ,
sometimes herein referred to as the 1949 Bonds , in the
aggregate principal amount of $3.30 ,G00.00 , maturing serially
in regular numerical order on the first day of November in
each of the years 1952 to 1979 , both inclusive; bonds
maturing in the years 1952 through 1957 bearing interest
l
at the rate of four and one-frurth per centum (4-1/4%) per
annumy and bonds maturing in the years 1958 through 1979 ,
bearing interest at, the rate of four per centum (4%) per
annum, payable May 1, 1950, and semiannually thereafter on
the first days of November and May in each year, of which
Issue there are outstanding and unpaid bonds numbered 62
co 3,V_, both inclusive , in the aggregate principal amount
i $ 269,000.00 a n d
Wr'EREAS , Section 10 of said Ordinance No. 201,
as amended by said Ordinance No , J17 provides as follc-ws
"Se,:! ;.or 10 . That noching In this ordinance
onto fined shall be construed in such a manner as
t,. prevent. me issuance by the Town of additional
bonds cY Other obligations payable f-. C;m the income
derived from the operation of the said wate..r and
sewer systFT and constituting a lien upon said
re,,enues junLzr to, but not prior or superior to
or on a parity with, the lien of the bonds herein i
aurf,orized nor to prevent the issuance of bonds or
ether obligations refunding all or a part of the
bonds rc-rcin a-athorized. provided, however, that
the Toa-., is not in default as to payments require6
s:e be mdde i 7 Section 7 of this ordinance , "
and
WHEREAS, the Town is not in deia,ilc as to the pay-
ments reauir �d tj be made in Section 7 _f said Ordinance coo•
'1U1 ; and
„
WHEREAS, the revenues of the joint system for the
year preceding the issuance of the bonds authorized by this
ordinance have been adequate to pay the requisite amounts
specified in said Section 7 of said Ordinance No. 201 and
the principal and interest requirements of the bonds
authorized by this ordinance ; and
WHEREAS , the bonds herein authorized in the amount
of $155,000.00 shall be junior.- to said bonds dated November 1 ,
1949 ; and
WHEREAS, the Town of Taos has never pledged or
in any way hypothecated the revenues derived from the
operation of the joint system to the payment of any bonds
or for any purpose , other than those indicated in said Ordi-
nances Nos. 201 and 517 , with the result that the amount
derived from the operation of said joint system may now be
pledged lawfully and irrevocably for the redemption of the
bonds herein authorized, subject only to those pledges
designated in said Ordinances Nos. 201 and _,517—r and
WHEREAS , in order to provide funds with which to
defray the cost of acquiring the Project, the Town proposes
to issue the revenue bonds of the Town, payable as to
principal and interest solely out of the net income to be
derived from the op,.!ration of such joint system; and
WHEREAS, in order to authorize the making and
i.s!�uance of its joint water and sewer revenue bonds , and in
order to pledge the net income to be derived from the
operation of said joint system to the payment of said bonds ,
and in order to comply with Sections 14-39-8 to 14-39- 13,
both inclusive , New Mexico Statutes Annotated, 1953 , and
all laws amendatory thereof and supplemental thereto, it is
necessary that an ordinance be adopted by the affirmative
vote of three-fourths of all. the members of the entire Board ;.
of Trustees of said Town declaring the necessity thereof .
NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF
TRUSTEES OF THE TOWN OF TAOS, NEW MEXICO:
Section 1 . Ratification . That all action (not
inconsistent with the provisions of this ordinance) hereto-
fore taken by the Board of Trustees of said Town of Taos,
1
and the officers thereof, directed toward the extension,
enlargement and betterment of the joint water and sewer
system, and toward the issuance of the Town' s joint water
and sewer revenue bonds, be, and the same hereby is,
ratified, approved and confirmed, including, without limit-
ing the generality of the foregoing, the sale of said bonds
in the aggregate principal amount of $155,000.00 to Quinn 6
Co. , Albuquer4ue, New Mexico, and associates , for the prin -
cipal amount thereof and accrued interest thereon to the date of
delivery, said bonds bearing interest as hereinafter provided.
Section 2. Authorization of B,Ltterments . That
the Town' s joint water and sewer system shall be, and the
same is hereby ordered to be extended, enlarged and bettered
at a total cost of not exceeding $155,000.00, excluding any
such cost defrayed or to be defrayed with moneys derived
from any source other than revenue bond proceeds ; the same
is hereby authorized ; and the necessity thereof is hereby
so declared.
y Section 3. Authorization of Bonds. That for the
purpose of protecting the public health, conserving the
property and advancing the general welfare of the citizens
of the Town, and for the purpose of defraying the cost of
such Project , it is hereby declared necessary that the Town
make and issue, pursuant to the provisions of Chapter 1/-, ,
Article 39, New Mexice Statutes Annotated, 1953, and all
other acts amendatory thereof or supplemental thereto, its
bonds designated "Town of Taos , New Mexico, Joint Water and
Sewer Revenue Bonds , Series July 15, 1961 ," payable both As
to principal and interest solely out of the aet income
derived from the operation of the joint system, such "rrt
income" herein defined as being the gross income aft.rr
deduction only for the necessary' and reasonable expanses of
operating and maintaining such joint system, and the Town
pledges irrevocably, but not necessarily exclusive:.y, such
net income to the payment of such bonds and tha, interEst
thereon (subject to the payments required by the. aforesaid
Ordinance No. 201 , as amended by the: aforesaid Ordinance No.
the proceeds th-iroof to be used solely for the v,,r-
+. )L acquiring iLE :'r 1hCL .
i
Section 4. Bond Derails . That said bonds shall
be issued in the aggregate principal amount of $155,000.00,
shall be dated as of the fifteenth day of July, 1961, shall
ccasist of 155 bonds, in the denomination of $1,000.00 each,
n u:.oered consecutively from 1 to 155, inclusive, shall bear
interest from date to maturity at the rate of five per
ccmtum per annum (5%) , *as evidenced by coupons designated
".A, " attached to said bonds and shall boar additional
interest at the rate of one per centum (1%) per ann= from
dste to the first day of May, 1971, as evidenced by a second
set of coupons designated "B" and attached to said bonds,
all interest being payable May 1, 1962, and semiannually
thereafter on the first days of November and Ilay in each
year, as evidenced by interest coupons attached to said
bonds, and mature serially on the first day of November in
each year, the bond numbers, amounts maturing and years of
maturity all being as follows:
Bond Numbers Amounts Years
(All Inclusive) t?siturinp. mat,! -ing
1 - 20 $20,000.00 1980
21 - 40 209000.00 1981
41 - 60 20,000.00 1952
61 - 80 20,000 .00 1983
81 - 100 209000.00 1984
101 - 120 20,000 .00 1985
121 - 140 20,000.00 1986
141 - 155 159000.00 1987
In the event any of said bonds shall not be paid at maturity
upon presentation, it shall thereafter continue to draw
interest at the same rate specified therefor hareinabove.
Both principal and interest shall be payable in lawful
money of the United States of America, without deduction
for exchange or collection charges, at The First National
Bank of Denver, Denver, Colorado.
Secfian 5. Prior Redemption. All bonds (i.e. ,
1 through 155) are subject to prior redemption in inverse
numerical order at the option of the Town of Taos, on the
first day of May, 1971, or on any interest payment date
thereafter, at a price equal to the principal amount thereof
with accrued interest to the redemption date and a premium
I
I
-6r
1
of four and one-half per cen tum (4-1/2%) of the principal
amount thereof. Notice of redemption shall be given by the
Treasurer of the Town of Taos, in the name of the Town , by
publication of such notice at least once, not mole than
sixty nor less than thirty days prior to the redemption
date, in a newspaper of general circulation in the Town of
Taos, and a copy of such notice shall be sent by registered
mail at least thirty days prior to the redemption date to
the original purchasers of the bonds, the said Quinn & Co. ,
Albuquerque, New Mexico, and the aforenamed paying agent, The
First National Bank of Denver, Denver, Colorado. Such notice
shall specify the number or numbers of the bonds to be so
redeemed (if less than all are to be redeemed) and the date
fixed for redemption, and shall further state that on such
redemption slate there will become and be due and payable
upon each bond so to be redeemed at The First National Bank
of Denver, Denver, Colorado, the principal amount thereof
with accrued interest to the redemption date, together with
the stipulated premium, and that from and after such date
interest will cease to accrue. Notice having beett given
in the manner hereinbefore provided, the bond or bonds so
called for redemption shall become due and payable on the
redemption date so designated, and upon presentation thereof
at said bank, together with all appurtenant coupons maturing
subsequent to the redemption date, the Town of Taos will so
pay the bond or bonds so called for redemption .
Section 6. Negotiability. That, subject to the
payment provisions specifically made, or necessarily implied
herein, the revenue bonds hereby authorized, shall be payable
to bearer, fully negotiable, and shall have all the qualities
of negotiable coupon paper, and the holder or holders there-
of shall possess all rights enjoyed by the holdere of
negotiable instruments under the provisions of the Negotiable
Iu s trumen t s Low.
Section 7 . Execution. Said bonds shall be signed
by the Mayor in the name of tha Town of Taos and attested
by the Town Clerk, with the seal of the Town affixed thereto,
and the interest coupons thereto attached shall be also
-7-
payable to bearer and shall be authe.•.iticated by the facsimile
signatures of the officers as they -,ppear on said bonds ,
which officers by the execution of said bonds shall. adopt as
and for their signatures the facsimiles thereof appearing on
said coupons . Said bonds and coupons bearing the signatures
of the officers in office at the time gat the signing there-
of shall be the valid and binding obligations of the Town
of Taos , notwithstanding that before the delivery thereof
and payment therefor, any and all or rh,e persons whore
signatures appear thereen shall hawe ceased to fill their
respective offices .
Sect.i3r, g Soorce of Favment: All of said bonds ..
together with rh.P. intexest accruing thereor, shall be pay-
able and col lect ib i e so1F•l y c,st of the n,7-t income to be
ierived from the operation of the join;' water and sewer
system, the income' of which is so pledged, the holder or
holders thereof ray not look to any general cr other Band
fog - the payment cf principal and interest, on such obliga-
ti :.)ns , cxcrpc the designated special funds t.:iedgFd therefor
::11d such bonds shall not constitute an irdebt.edve-ss nor
f:.t wi thLn r„t•rni.ng, of ony conscito:ional oz sratutcry
imtracicr . nor shall :'r,ey be considered o:
bc, eerie al bl igat inns of rile- Tz,u—
Sec: : 3,� Bond and Coupon i arm :r.at said bonJAs
. : lyand rh(.. c.),ipers thereto attached shall bE
t C. 1.01 lowing f [�xm
I
l
(Form of Bond)
UNITED STATES OF AMERICA
STATE OF NEW MEXICO COUNTY OF TAOS
TOWN OF TAOS
JOINT WATER AND SEWER REVENUE BOND
SERIES JULY 15, 1961
"0. $1100m0
The Town of Taos, in the County of Taos and State
of New Mexico, for value received, hereby promises to pay,
upon presentation and surrender of this bond, to the bearer
hereof, solely from the special funds provided therefor, as
hereinafter set forth, on the first day of November, 19_,
the principal sum of
ONE THOUSAND DOLLARS
and to pay solely from said special funds interest thereon
at the rate of five per centum (5%) per annum, evidenced from
a�
Y.,
date to maturity by one set of coupons designated "A" (plus
additional interest at the rate of one per centum (1%) per
annum from date to the first day of May, 1971, evidenced
by a second set of coupons designated "B, " which are pre-
for payment separately and apart from other coupons) ,
all interest being payable on the first day of May, 1962 ,
and semiannually thereafter on the first days of November
and May in each year, upon presentation and surrender of the
annexed coupons as they severally become due. If upon
presentation at maturity, payment of this bond is not made
as herein provided, interest shall continue at the same
rite until the principal hereof is paid in full. Both
principal and interest are payable in lawful money of the
United States of America, without deduction for exchange or
t
collection cherges at The First National Bank of Denver,
Denver, Colorado.
This bond does not constitute an indebtedness of
the Town of Taos within the meaning of any constitutional
or statutory provision or limitation, shall not be con-
sidered or held to be a general obligation of the Town,
_9.
and is payable and collectible solely from the net revenues
(i .e . , gross revenues less reasonable operation and main-
tenance expenses) derived from the operations of the muni-
cipal joint water and sewer system, the income of which is
so pledged; and the holder hereof may not look to any generc
or other fund for the payment of the principal of and in-
terest on this obligation except the special funds pledged
therefor. . Payment of the bonds of the series of which this
is one and the interest thereon shall be made solely from,
and as security for such payment there are pledged, pursuant
to Ordinance No. 518 , adopted and approved the 5th day
of MY , 1961 , two special funds identified as the
"Town of Taos Joint Water and Sewer Revenue Bonds , Series
July 15 , 1961 , Interest and Bond Retirement Fund, " and as
the "Town of Taos Joint Water and Sewer Revenue Bonds,
Series July 15 , 1961 , Reserve Fund, " into which the Town
covenants to pay respectively, from the net revenues derived
from the operation of its joint water and sewer system (after
provision only for payment into the "Taos Water and Sewer
Reven-ie Bond Fund, " and the "Reserve Fund, " both pledged to
the payment of the Town 's Water and Sewer Revenue Bonds ,
dated November 1 , 1949 , authorized by Ordinance No . *(tax, 204
adopted and approve.d on the 2nd day of December., 1949 , as
amended and supplemented by Ordinance No. 517 passed,
adopted signed and approved on the 5rh day of July ,
1961) , sums sufficient to pay when due the principal of and
the interest on the bonds of the series of which this is
one , and to create and maintain a reasonable and specified
reserve for such purpose . For a description of said funds and
the nature and extent of the security aforded thereby for the
Payment of the principal of and interest on said bonds,
reference is made to said ordinance . The bonds of the series
of which this is one are equitably and ratably secured by
a lien on the designated net revenues ; said bonds, subject to
r +
the prior lien of the Town 's aforesaid Water and Sewer
Revenue Bonds , dated No,,ember 1 , 1949 , constitute an ir-
revocable first lien (but not necessarily an exclusively
first lien) upon said net revenues derived from the operation
-f said joint system. Bonds in addition to the series of
which this is one on a parity therewith or subordinate
thereto , may be issued and made payable from the net
revenues and income of the joint system in the manner and
upon the conditions provided in the ordinance authorizing
the issuance of this bond.
The Town of Taos covenants and agrees with the
holder of this bond and with each and every person who may
become the holder hereof that it will keep and perform all
the covenants of this ordinance , including, without limiting
the generality of the foregoing, its covenant against the
sale or mortgage of said joint system or any part thereof
unless provision shall be made for the payment of the prin-
cipa i of and interest on the; bonds of the series of which
this is one. , and including its covenant that it will fix,
maintain and collect rates for services rendered by szli�
I . i,lt-- system sufficient to produce revenues or earnings to
,.:.;y the c'perating and maintenance charges and one hundred
fifty per centum 1, 150%) of both the principal of and in-
ter; st. can the bends and any other obligations payable an-
,�;� : iv from the rF ';enues of said joint system, including
thy- reserve therefor,
This bond is one of a series of ;;ne hundred and
fifty - fivv bonds cf like tenor, amount and date , except as
t(: v, .im.lher ind maturity, authorized for the purpk'se of pay-
i-nt; t}:(-, :osts of Extending, enlarging and bFttering the
of it (_ G',) te. r and sewer system of the Town of Tacs , in an
amwjut not exceeding $ 1.55 ,000.00 (excluding any cost de-
r ra,:,•+,i by sour_c .s ort—.er than revenue bond proceeds) ,
"Tis bond is one of a series subject to prior
redeinpti ::n in inverse numerical order Et the option of the
Town on the first day of May, : 971 , or cn any interest pay-
ment date thereafter , at a price equal to the principal
amount hereof, accrued interest hereon ru the redemption
- 11-
date, and a premium of four and one-half per centum (4-1/2%)
of the principal amount hereof . Redemption shall be made
i
upon not less than thirty days ` prior notice by publication
and by mailing in the manner and upon the conditions pro-
vided in the ordinance authorizing the issuance of this
bond.
This bond is subject: to the conditions, and every
holder hereof by accepting the same agrees with the obligor
and every subsequent holder hereof, that (a) the delivery
of this bond to any transferee shall vest title in this
• bond and in the interest coupons attached hereto in such
. transferee to the same extent for all purposes as would the
delivery under like circumstancPs of any negotiable instrument
payable to bearer; (b) the obligor and any agent of the
obligor may* treat the bearer c;f this bond as the absolute
owner hereof for all purposes , and shall not be affected by
any-:,notice to the contrary; (c) the principal of and the
interest on this bond stall be paid, and this bond and each
of the coupons appertaining thereto are transferable , free
from anu without regard to any equities between the obligor
.+nd the original o; any intermediate holder hereof, or any
st: r -nits or cross-claims , and %d) the surrender to the
(jD1igc r or any a,;enr of the obligcr of this bond and each
,i chc ons shall be a good discharge to the obligor for
the same
It is furr.Ker certified, recited and warranted
thaL all the requirements of law have been fully complied
with by the proper officers of said Town in the issuance
ci this bond -. and this bond is issued puns .ant to and in
strict cocfo:-mity with the Constitution and :Laws of the
;fate of New Mexico) and particularly under the terms and
Provisions of Article 39 , Chapter 14, New Maxico Statutes
-�nr.otated, 19153 , and all laws amendatory thereof and sup-
plemental thereto..
IN WITNESS WHEREOF the Town t-E Tao: has caused
this bond to be signed by its Mayor, sewed with its
corporate seal , attested by its Town Clerk, and the coupons
hereto annexed to be authenticated with the facsimile
- L?-
r;
signatures of said Mayor and Clerk, all as of the fifteenth
day of July, 1961 .
�Do _Not Sign)
Mayor
(SEAL.)
Attest:
_ (Do Nor�Sig.n)
Town Uer1c -
Fnd of Fors: of Bond)
i
i
• 13 •
(Form of Coupon)
$25. 00
$39 .65
Coupon No. * S 5 .00
$ 7 .93
On the first day of November, 19_, **(unless the
bond to which this coupon is attached has been called for
prior redemption) , the Town of Taos, in the County of Taos
and State of New Mexico, will pay to bearer in lawful money
of the United States of America, without deduction for
exchange or collection charges, at the office of the Town
Treasurer in Taos , New Mexico,Tho Frot'N Tonal Bask of Danver, Denver, Colovcb
TWENTY-FIVE AND NO/100 DOLLARS
THIRTY-NINE AND 65/100 DOLLARS
FIVE AND NO/100 DOLLARS
SEVEN AND 93/100 DOLLARS
solely from and secured by a pledge of two special funds
created from the net revenues derived from the operation
of the joint water and sewer system of said Town , such
amount being ***nine months ' and sixteen days '*** interest
six months
o!s its Joint Water and Sewer Revenue Bonds, Series July 15 ,
1961 , and bearing
Bond No.
(Facsimile Signature)
Mayor
(Facsimile Signature)
Town Clerk
*'(Insert "A " or "B" as well as the number of the coupon . )
**(Insert in all coupons maturing on and after November 1 ,
1971 . )
***(Insert '4iine months ' and sixteen days '" in all coupons
numbered A-1 and B- 1 only. )
(End of Form of Coupon)
- 14-
Kam'_
Section 10 . Period of Usefulness . That it is
hereby determined and recited that the period of usefulness
of the facilities to be acquired with the proceeds of the
bonds herein authorized is not less than twenty-six years ,
three months and sixteen days from the date of said bonds ,
i .e .. , from the fifteenth day of July, 1961 .
Section 11 . Bond Execution and Delivery. That
the Mayor and the Town Clerk are hereby authorized and
directed to prepare and execute said bonds as herein pro-
vided and the Town Treasurer to deliver them to the lawful
purchaser thereof on receipt of the agreed purchase price .
Section 12 . Disposition of Bond Proceeds .
A . Accrued Interest and Premium. That all moneys
received as accrued interest at the time of delivery of the
bonds herein authorized from the sale thereof and any premium
therefor shall be deposited into the 1961 Bond Fund (further
described in Section 15 of this ordinance) , to apply on the
p. yment of interest next due on the bonds payable therefrom
B. Acquisition Account, That except as herein
^rl-&rwise provided, the proceeds derived from the sale of
! `-t: s:,.d 1961 bonds shall be deposited promptly upon the
recei.;)r thereof in the First State Bank of Taos , Taos , New
Mox , cc , which account shall be known • as the "Taos , New
,point Water and Sewer Revenue Bonds , Series July 15 .•
1gr, 1 , AOqui.sition Account , " herein sometimes designated as
t!-tc A quisition Account , The moneys in the Acquisition
'..'count , except as herein otherwise specifically provided,
�h,, be used sole:y for the purpose of acquiring, extensi . �
call argem,-�nts and betterments to the system, except that ar : t
tho system is completed as herein provided, all money, if any .
remaining in the Acquisition Account- shall be deposited into
Ltlol il.ibI Reserve Fund (further described in Section 15 of this
or:� :icar;:E• ': , Moneys shall be withdrawn from said Acquisi •-
, <.•n ,ccoun only upon warrants or checks drawn by the May,. r
jn,i Clerk of the Town . No such warrant for any sum for con -
,truct•ion work shall be issued until the Board of Trustees
has received a certificate from the Consulting Engineer
certifying that such a sum is due and owing for the work of
n
15-
such construction , nor until the Board of Trustees has
adopted a resolution accepting such certificate and direct-
ing the drawing of such warrant or check.
C . Purchasers Not Responsible for Misuse of
Proceeds . That the purchaser of the bonds herein authorized,
however, shall in no manner be responsible for the applica-
tion or disposal of the Town or by its officers of the
funds derived from the sale thereof or of any other funds
herein designated .
Section 13 . Fiscal Year. That for the purpose
of this ordinance the municipal joint water and sewer
system shall be operated upon a fiscal year basis commencing
the first day of July and ending on the 30th day of June .
Section 14 , Income Fund. That so long as any
of the bonds hereby authorized shall be outstanding, either
as to principal or interest, all income and revenues
derived from the operation of the joint system shall be
L.-opr,si tuu into 'a special fund designated "Taos , New Mexico,
.1oi,-it Water and Sewer System ,I ncome Fund, " (previously
reft•r'red to in i:he saia Ordinance No. 201 as the "Taos
► � r nn,i Sew;:•r Revenue Fund ") , and hereinafter sometimes
rc� 1 y ac.signated ZIs "Income Fund. "
Section 15 ^d~i:,istrati:,n of income Fund . That '
! cing. as any of tht-. bonds hereby authorized shall be out-
as to principal or interest , the following
shall be made from the Income Fund.,
n Opvrat ,.on and Maintenance Fund . Firstly, there
yeti 1 : ;), qer as:.de rac:h month as an operation and maintenance:
:such -rt.•asonable percentage of the Income Fu..d as the
Bt: rc: of Tr-ustres shall determine to be reasonable and
tia r 1 cr . he prc;po r operation and maintenance of sa i d
%Leln ; anti ,did moneys sha11 be used solely therefor
bur— not limited to the cost of all salaries .
neccs>ary repairs , iabc.r , maceri.als , adequate insurance , arlc;
bnnik co11-ection and c;cher proper charges concerning the
accounts and revenue bonds herein designaced and hereafter
nuthorizod in ci)nnc.:t.iC,TI wi th the joint system any surplus
remaining at the end of the fiscal vear and nat needed for
lh-
operation and maintenance purposes, shall be transferred
to the Income Fund and be used for the purposes thereof,
as herein provided .
B. Principal and Interest Requirements for 1949
Bonds . Secondly, there shall be deposited each month in a trust
account with the Mercantile National Bank, Dallas Texas, to
be designated, "Taos Water and Sewer Revenue Bond Fund, "
one-sixth ( 1/6) of the next maturing installment of interest
on all of said bonds outstanding, and not later than
October 1 , 1951 , and eacKmonth thereafter one-twelfth
( 1112) of the next maturing installment of principal of said
bonds outstanding.
C . 1949 Reserve Fund ., Thirdly, in addition to such
deposits of interest. and principal; in each of the years
L950 and 1951 there shall be deposited in said Bond Fund
in substantially equal monthly installments , not less than
a total of $5 , 000 :00 , to be held as a Reserve Fund, and
co!nineiic ing on January . , 1952 , and each month thereafter,
;.hurl shall bc� deposited in said Reser-e Fund 20% of the
:no'lt1-•ly deposits of interest and principal , until the
Re ier%ie. Fund shall cons:ai.n a sufficient amount to pay in
i,!�,a;,c,� two years ' requirements of interest and principal
�:n s i1.d bonds . in addition to the requirements for the
c r;-er.t year . Such Reserve Fund shall be maintained at
socr; ai-i:ount -until it snail be sufficient to- pay the interest
on ;30d principal of all of said bonds outstanding. The
in said Reserve Fund may be investEd in direct cbli-
;r;,r of t�•e. United States cf America and any income
t,)-m sF:a1 i be placed to the credit of said Bond Fund
D. Principal and interest Requirements for 19 , L
nLis . Fourthly, and subject to the aforesaid provisicn5 .
I0 M any moneys remaining in the Income Fund, i. . e . , from
chc ilol. Income and revenues , there shall be deposited and
aai .i i-,cc, a bank account to be known as the "Town of Taos
.3oInt Water and Sewer Revenue Bonds , Series July 15 , 1961
I :�t �r� 5r and Bond Retirement Fund , " herein sometimes
referred to as the 1961 Bond Fund, the following
1. Mon th1y, commencing on the first day of
e.he cnL�nth immediate 1 y succeeding the delivery of any the
17 -
bonds , an amount in equal monthly installments necessary,
together with any moneys therein and available therefor, to
p:y the next maturing installment of interest on the bonds
then outstanding, and monthly thereafter commencing on the
first day of May, 1962 , one-sixth of the amount necessary
to pay the next maturing installment ,of interest on the
outstanding bonds authorized hereby.
2 . Monthly, commencing on the first day of
November, 1979 , one-twelfth of the amount necessary to pay
the next maturing installment of principal on the bonds
authorized hereby.
E. 1961 Reserve Fund. Fifthly, and concurrently
with the payments required by the next preceding Paragraph
D, except as provided in Paragraphs F and G of this Sec-
tion 15 of this ordinance , and in addition to the moneys
i-aquired to be deposited in the 1961 Reserve Fund by Section
12 of this ordinance , monthly commencing on the first day {
0 rho_, first month following the delivery of any portion of t
the 'fown ' s July 15, 1961 , bonds , the sum of $200.00 per month
sr,a i L be deposited monthly ($2 ,400 .00 annually) into a bank
account tc be known as the "Town of Taos Joint Water and
%cwc r Revenue Bond:, , Series July 15 , 1961 , Reserve Fund, "
,,rein somerimes referred to as the 1961 Reserve Fund,
anti 1 there has been ac%;m•jlated $ 30 ,000 .00 therein and
rtereaf ter such amuunt or amounts , if any , shall be deposited
n (.nlchly from any moneys remaining in the Income Fund into
�.� .;cint Reserve Fund necessary to maintain said $30,000 ,00 .
'Ihc nione ., in the Reserve Fund stall be accumulated and
;-,,:ji stained as a contiruing reserve t�o be used, except as
r ,_ relnaf ter provided in Paragraphs F and G of this section ,
linty to present deficiencies in the payment of the principal
an,i interest on the bonds hereby authorized resulting '
�ru�r. Lhe failure to deposit into the 1961 Bond Fund suf-
i `,--� cnr. funds to pay said principal and interest as the
accrue .
F . Termination of Payments in 1961 Funds. No
p;:vn:ent reed be made into the 1961 Bond Fund, the 1961
Rotie.vc Fund , or bct:h , if the amount in the 1561 Bond Fund
• i�'
4
and the amount in the 1961 Reserve Fund are at least equal
to the Entire amoo-t of the outstanding bonds herein au-
thorized, both as to principal and interest to their
respective maturities , and both accr -,ed and not accrued,
in which case moneys in said two funds in an amount at
least equal ro such princ.,pa: and interest requirements
shall be used solely to pay s•:cn as the same accrue , and
any moneys in excess there-of in said two fends and ainy other
moneys derived from the operation of the joint system may
be used in any lawful manner determined by the Board of
Trustees of. said Tow; .
0 . Defrayinzz Delinquencies for 1961 Bond and
1961 Re serve Funds i f , in any month., the Town shall , for
any reason , fail to Flay into the 1961 Bond Fund the full
amount above stipolated from the net: income and revenues .
of the joint system, tf,en an amount. shrai 1 be paid rite the
1961 Bond Fund in s.Jch month From the 1961 Re .serve Fund
1 t.> the difrercncE• bF t.ween t: --at Maid from said net
income and revent.Jes and t.he. LAI : amount cc, stipulated , The
:),-,nc y so used siha; : be rEplaced in the 1961 ResF•rue Fund
..rom the ii!: ,st thereafter reef..i•?ed from the
�.,. - ,Lion •-3f .n ;;,inn. system not re .;._iired to be otl;.er4.Lse
�,pi -Led , F i� any month . tr.e Tc,-,n shall ,, for any reason ,
Fai r:` ay i,,to [.,.e 196i R( s,- rve 1 '_"d * he L1!: 1 amount abovv
-3t1.l••: . 3tcF d > rcin rat [ incomi.- and Of t'r.e 1961
'; =ys.em , tte di fference between the amoun t pa. d and the
:itllv'..n[ so stipulated s1.all in a like manner be rjaid Lf.erei-
tr ,;7. , rc• ilrsr rE.,'enues thereafter receivcd lro[r: t['e
d':.tit"I Of L}..F! l::lnt :%ySten) no+- re-qui redtc bt ot:C•F'.�-ise.
d :lAl ifs the 196'_ Bo^d Fund and ;h( : 9b 1
r Und sh• t l l b�.- used solely and only f ,r tl,e Purpost
.A payi-,g ,r.e pri-%: al of and the inter�:st ors the bonds
issoed :.cry ;,r,dc r F.rovided, however , that an} r ori.;:ys Wh,i Lr.
riay be at any time in olf $30 , 000 . 00 in the 1961
Reserve Fu!ld may bF withdrawn therefrom ind used as herein
provided fo.• ,act and r,.venues derived fro;r. tl:E. ,; Oint.
ystc,n.
Moneys N,.s wirhst.andiri: ary
• 19
other provision of this section , any moneys in any fund
designated in this section not needed to defray operation
and maintenance expenses for the joint system for the current
fiscal year nor to defray principal and interest require-
ments for bonds payable from the joint system 's revenues for
the current and next succeeding fiscal year ray be invested
or reinvested by the Town Treasurer in direct obligations
of, or obligations the principal and interest of which are
unconditionally guaranteed by, the United States of America ,
which shall be subject to redemption at face value by the
holder thereof at the option of such holder, or which shall
mature not later than eighteen months from the date of such
investment . The obligations so purchased as an investment
of moneys in said fund shall be deemed at all times to be a
part of said fund, and the interest accruing thereon and
any profit realized therefrom shall be credited to the
fund , and any loss resulting from such investment shall be
charged to the fund, The Town Treasurer shall present for
redemption or sales on the prevailing market any obliga-
tions so purchased as an investment of moneys in the fend
whenever it shall be *necessary to do so in order to provide
moneys to meet any payment or transfer from such fund,
I Extension and Betterment Fund, After making
the payments hereirabove provided in Paragraphs A through
H of Section 15 of this ordinance , any remaining revenues
derived from the operation of the system (but not more than
10 _:i c e gross income from said system) may be paid into
a 11'aos Water and Sewer System Extension and Betterment
Fund " for the purpose of extending , improving or repairing
said system, provided that the principal , interest and
reserve requirements of any additional bonds issued pursuant
to Section 11 of this ordinance , shall have priority over
said Extension and &-tterment Fund as to any currant revenues
•r(:::)ai:iir,g after the pay%-,ents necessitated by Paragraphs P,
tl)rougli H of said Section 15 .
.' Bank Accounts for 1961 Bonds . The aforesaid
Lti61 Bond Fund and 1961 Reserve Fund shall be maintaiped and
kept separate from ail other funds and acco-:nts in The First
• 20-
iN
National Bank of Denver, Denver, Colorado, or its successor, "k,
and the aforesaid Taos Water and Sewer System Extension and
Betterment Fund in any bank or banks , each of which is a
member of the Federal Deposit Insurance Corporation. Each
monthly payment shall be made into the proper fund and
account on the first day of each month, except that when the
first day of any month shall be a Sunday or a legal holiday,
then !iuch payment shall be made on the next preceding
secular day ,
K . Surplus Revenues of the System . After making
the he payments hereinabove provided in Paragraphs A to J, both
incl ,isive of Se.- tien 15 of this ordinance , any remaining
in J (z * acome Ftjc,d may be applied to any other law-
.-is r Board of Trustees may direct.
10 . Priority of lien .. That the bonds
to the payment of all necessary
c.f the operation and maintenance of
n arld sub ec:t io paynienLs rejuired by the S Nos 201 and i to be made into the
.1-1d S -wer RevertlE Bond Furd " and a "Reserik�
(
tO Lt.P paynenC of the Town s Water anti
dated No ,,ember i , 1949 , constit'jte an
ibit- "b L not, r,ecessarily an exclusively first
derived from tne operation of said
-:A'C [ 1 "'t' 1"' . Additional Bonds
A . Parity Lien Bonds . That nothing in this ordi-
nancu shall be construed in such a manner as to
prevent the by the Town of additional bonds or
other obLigati..ins payable from the income derived from the
- sperauion of the ! -jint system and constituting a lien upon
said ievPnue.s cm a parity with, but not prior or superior
to, the tinn cf L - bonds herein authorized, nor to prevanL
the issuance t,f bc,-)cls or other obligations refunding all or
a part of the bonds Y-crein authorized , provided , however ,
that the Tcwx, i.s noL i-) default ns to any payments required
to be made ir. Paragraphs A to F of Section 15 of this ordi.-
nance ; and provided furLher, that before any stich additional
_21 -
•
parity bonds or other parity obligations are authorized or
actually issued, other than refunding bonds or other refund-
ing obligations , the earnings derived from the operation of
said joint system for each of the two fiscal years immediately
preceding the date of the issuance of such additional parity
obligations shall have been sufficient to pay the costs of
operation and maintenance for each such fiscal year, and,
in addition , sufficient to pay an amount representing one
hundred forty per centum (140%) of the maximum principal and
interest requirements for a single ensuing fiscal year on
the outstanding revenue bonds and other obligations of the
Town payable from the revenues of the joint system and the
-.,'bonds or other obligations proposed to be issued.
B. Certification of_Earni^gs . A written certifi-
cari on by an :ndepe.1dent Certified Public Accountant that
said earnings , when adi :isted as her,,inafter provided, are
sufficlent to pay said amounts , shall be conclusively pre-
S:JMQd Lc be accurate In determining the right of the Town to
:�uthorir.e . issue , sell and deliver said additional bonds or
:.:� .) gaCions on a -arity with, the bonds herein authorized,.
Considera ;lon or Increase in Costs . In deter-
,:.Ang w'r.er.ber or not additional parity bonds or other
1,.i.iry obligations may be Issued as aforesaid, consideratic.n
to ar..y probable increase .;bat nct reducritin)
in r.teYat.i:.:7 .,3 mat'ttc•,•ance expenses that will resuir. from
F:*x pena_, t,jr.- of the funt-is proposed to be de.rlved from
the issuance And sale of the said bonds or other obligations , �
C _ unior Lie:, Bonds , Nothing t,erein contained
sb:. '. 1 be constrt)Fd so as -o prevent the Town from issuing
b,:nds or, other obiigations payable from the revenues of the
syss -em and Vaving a lien t.hereor subordinate , inferior and
>»: r rc tt.e lien of the- bonds authorized to be lss,ied by i
1
tt-_is ordina%1ce
E S jL,_rior Lien Bonds Not Permissible idotl' ; ng
he:roir. contained shall be construed so as to rt rmit E' e
Tcwn to issue bends cr other obligetic:is }.dyable- from tte l
revEnoes of the system and having a lien th,ereor Frier and
s-iperior to the bonds l.eroin authorized to be iss :Pd
•21 -
T
F . Additional Bonds to Have Same Principal and
Interest Payment Dates . Any additional parity or subordinate
bonds or other parity or subordinate obligations issued in
compliance with the terms hereof shall bear interest payable
semiannually on the first days of May and November in each
year , except that the first coupon appertaining to any bond
or other obligation may represent interest accruing for any
period not in excess of one year ; and such obligations shall
mature on the first day of November in the years designated
by the Board during the term of said bonds or other obliga--
tions
Section lb . Refunding' Bonds , Thdt the provisions
of Section 1; hereof are subject to the exception that if at
any time after the bonds or other obligations herein or
h,�reaf t,�-r authorized, or any part thereof , shall have been
issoed , the Board shall find it desirable to refund said
bonds or ether obligations , said bonds or other obligations,
or any part thereof , may be refunded (but only with the
ccylseilt of the h-cider or holders thereof , unless the bonds
cat' other obligations have marred, or are then callable for
redemption a-id r..ave been properly called) , without
the Fri-ority of zhc-- lien for the payment of the
r� ; . ••dl -.-tig obligations o- tt (= revenx-s of 0:r• system, except
t^ 'raragrar.'K /% of Section i; 1- ereof . provided ,
rt-at bonds or other obligations the lien of which
tic• :i-`1,1F, s -i t+e system is prior and s aperior to the
cf tr.e bonds herein authorized, including
ti& 191-9 b--~•ds . may be refunded as in this section provided
b,, t ht i ssuevice of bonds or other obligations the lien of
,,)hi ,', nin sdid rel:r jc. s is on a parity with t'r;e lien thereco
t .f bonds herein aothoriz.ed . The refunding bonds or
or;•ki SO issued shall enjoy complete equality
of � ien wit.F. tY & I...,rtion of said bonds or other cbligations
which is not- ref,snded, if any there be . and the holder or
h 0 1 plc:Y•4 (-'If the re Lunding bonds or other shall be
subrogated to all of the. rights and Frivikges enjoyed by
the holder or holders „f the bends or ot-h -r obligations
73-
refunded thereby. The refunding bonds or other obligations
shall be issued, subject to the provisions of Paragraph F of
Section 17 hereof, with such details as the Board may by
ordinance provide ; provided, however, that if only a part of
the outstanding bonds or other obligations is refunded, and
if such bonds or other obligations are refunded in such
manner that the interest rate thereof is increased or if
any refunding obligation matures at an earlier date than
--he maturity date of the corresponding obligation refunded
thereby, then such obligations may not be refunded without
the consent of the holder or holders of the unrefun ded
portion of said obligations ; and that the refunding bonds
or other obligations shall either be sold for cash at not
less Char; the par value and accrued interest, and the pro-
ceeds thereof shall be used to pay the obligations refunded,
or i ' so permitted by law and then only with the consent
of she holder or holders of the obligations refunded, the
refu;1cling obligations shall be delivered dollar for dollar
in oxcharige for the bonds or other obligations refunded.
Section 19 .. Equality of Bonds. That the bonds
-horized ro be issued hereunder and from time to time
:r_::r-,anding shall not be entitled to any priority one over
other in the app1= cation of the revenues of the system,
regardless of the time or times of their issuance , it being
thf- :mention of the Board that there shall be no priority
arnon" the bonds regardless of the fact that they may be
a_ cual ly issued and delivered at different times .
Section 20 . Compulsory Sewer Connections . That
:he Board has determined, and does hereby determine , that
c s . or the best interest of the Town and the inhabitants
:.hereof fc•r health and sanitary purposes that inhabited
-
proper(-y be connected to the sewer facilities of the joint
sVst:,-Tm; and the Board hereby orders that the owners of
: ri%Zrzbited property within the Town , any boundary of such
,)rop rty 'being wich.in two hundred feet of a sewer service
i rf: , shall connect such property to the line without
eXPOILIse Lo the Town within sixty days from the date of
publication of this ordinance or if such a line is not then
f�
available within sixty days from the date such a line is
extended to within two hundred feet of a boundary line of
the tact or parcel of land. The Town shall enforce and
compel such connection in the case of a failure so to con-
nect within the time herein prescribed by suit, action, or
special proceedings in equity or at law; and the Town may
prescribe rules and regulations to govern, regulate and
enforce such connections , including but not limited to
fixing penalties for the failure so to connect, and to
entering into agreements with the State of New Mexico, or
any public corporation or political subdivision thereof, or
any agency or instrumentality thereof, e.g. , the County of
Taos or its health department, if any, necessary or desirable
Lo effect the provisions hereof.
Che
ection 21 . Protective Covenants . That the Town
nants and agrees with each and every holder of
ssued hereunder:
. Use of Bond Proceeds. That the Town, with the
rived from the sale of the bonds herein authorized ,
d without delay to extend, enlarge and better the
hereinabove provided.
B. Payment of Bonds Herein Authorized. That the
Town will promptly pay the principal of and the interest on
t�veiy bond issued hereunder and secured hereby at the place ,
on the antes and in the manner specified herein and in
-a b-ut;ds and in the coupons thereto appertaining according
to the. true intent and meaning hereof. Such principal and
in; rest are.' payable solely from the net income to be
derivc,d from the operation of and the resultant rates and
charges for r.hc- use of, and the products and service rendered
by, the system, and nothing in the bonds or coupons or in
this ordinance shall be construed as obligating the Town to
ri' acem any of said 'bonds, principal or interest, from and
.-he i- o l der or holders thereof may not look to, any general
or- other fund except the income which is so pledged under
tFse provisions of this ordinance .
C . Use Charges , That while the bonds authorized
herein or any of them remain outstanding and unpaid, the
- ?5-
a rates for all services rendered by the system to the Town
and to its inhabitants and to all consumers within or faith-
out the boundaries of said Town shall be reasonable and just,
taking into account and consideration the cost and value of
the system and the proper and necessary allowances for the
depreciation thereof and the amounts necessary for the re-
tirement of all bonds and other securities or obligations
payable from the revenues of the system, the accruing in-
terest thereon , and reserves therefor; and there shall be
charged against all re.irchasers of service, including said
Town , such rates and amounts as shall be adequate to meet the
requirements of those and the preceding sectic,- s hereof, and
which shall be sufficient to produce revenues or earnings
annually to pay the annual operation and maintenance ex-
penses , and both the principal of and interest on bonds and
any other obligations payable annually from the revenues
thereof, including the reserves therefor, all of which
revenues , including those received from the Town, shall be
subject to distribution to the payment of the cost of
operating and maintaining the system and the payment of
principal of and interest on all obligations payable from
the revenues of the system, including reasonable reserves
therefor , Insofar as practicable all users of water shall
:)e met:ered, Before water or sewer services are made
mailable to any new customer, an adequate deposit (to be
de c e rniine d by the Board of Trustees) shall be made . No
free service , facilities nor commodities shall be furnished
by Said system to anyone, including but not limited to the
Town , Ehat should the Town elect to use for municipal pur-
pr)6os water- supplied by, electrical energy furnished through,
or the sewer facilities of, said system, or any combination
tnure•jr , or in any other manner use the system, or any part
thereof, any use of the system by or of the services rendered
L"ereby :u the Town , or any department , board or agency
,hereon , will be paid for from the Town °s general fund or
other available revenues at the reasonable value of the use
so made , or service , facility or commodity so rendered; that
all the income so derived from the Town shall be deemed to
-26-
be income derived from the operation of the system, to be
used and accounted for in the same manner as any other
income derived from the operation of the system. The
charges so required to be made by the Town shall include a
reasonable payment for fire hydrant service , which charge
shall be not less than $8 ••00 per hydrant per month ($96 .00
per hydrant per year) . payable in equal monthly installments
and beginning June 1 , 1961 . Said rental shall include all
water needed by the Town for fire protection , and water and
sewer service needed by all Town offices, the street depart-
ment , fire department , public parks and the Town owned
swimming pool , The Town is granted by statute a\ lien upon
Each lot or parcel of land {r the Town for the charges
imposed hereunder for waver and services supplied by the
systrtm to the owner thereof, and the Town expressly covenants
and agrees that it will cause each such lien to be perfected
in accordance wir.it the provisions of Section 14-39-3 to
Section 14-•39-6 , New Mexico Statutes Annotated, 1953
Cor p i 1 a t ion . as from time to time amended, and the Town
and agrees than it will take all steps necessary
tr, enforce s-.i::h, lien as to each piece of prcperty the owner
whic1. sl:ail delinquent for more than six months in the
i•_t•y;ne-t of charges imposed hereunder,
i eLy_or Charges That the Town will forth -
vi th arli,l in any event prior to the delivery of any of the
bon(,s here-in a.jthorized, fix, establish, and levy the
ra "US ,Ii'ld Charges wh ch are required by Paragraph C of
11 of tLis ordinance , if such act-ion be necessary
No rt• dc: tion in any initial or e), isting rate
for Ll.e system may be made unless:
The Town has fully complied with they pro•-
cf 15 of this ordinance for at least '.he-
F . . ; : i • cal yr:�; i I.r&diate1y preceding such reduction of th0
�i t i a 1 r",t:P sc<<c:t?•Jle .
'retie audit required by the Independent
by Faragraph H of this Secrien 21 z)f Lhis ordi
;oi the full fis._al year immediately preceding sucl:
'—%26 tct_ 6V- disci.Ose5 that the estimated rc 'e : <<:s resulting
� 7 .
from the proposed race schedule , after its proposed reduc-
tion , will be sufficient to pay an amount at least equal to
the annual cost for said period of operation and maintenance ,
and, in addition , one hundred fifty per centum ( 150%) of
both the principal of and the interest on bonds and any
other obligations payable anr.•.:aily from the revenues of
the system, including reasonable reserves for all such
bonds .
E. " Efficient operation .. That the Town will
operate said system so long as any of the bonds herein
authorized are outstanding, to maintain said system in
efficient operating condition and to make such improvements,
c:xtensiorrs , enlargements , repairs and betterments thereto
as may be necessary of advisable to insure its economical
and efficient operation at all times .
F . Records . That so long as any of the bonds
;-r-:naiii outstanding . proper. books of record and account will
!le kvpt by tie rows separate and apart from all other
:'ecordb and ac- pants , shc•wing complete and correct entries
47
(.ransac�isms relating to the system, Such books
i n,' 1 ode b,:t not nE-:Pssarily be limited to) monthly
•_ .1 s s h A; -1
1 . The n :reber of customers by classes .
"he roven•.ies received from charges by
irci uding but not necessarily limited
to AbSI l lC:.si : Gn by water facilities and sewer facilities
i A detailed statement of the expenses of
to Ins pec* . That any holder of any of
,my duly aJth.orized agent or agents of st;cn
i; ---ha It h-a,c' the rigs:t at all reasonable times to
az-.:(-;jnts and data relating thereto and
ti e v,t err. cr.� all properties comprising said
ti kilts That the Town further agrees that it
Willi , 4 0r in sixty da% s following the close of each fiscal
vec;r ' Cause all audit of such books ana acco'.lnts to be made
by an, independent Certified Public Accosantant, or an agent
2b •
x r xc +e': .,• iti 1 .. i yC" ,+,(.� . r. F x,t� �tti iy
� 4 =t.ci, 2 � su0. 4.S":y�?'t yT.ff ,t;Fti irlc?,}.�i,`k'`'s.� ��t .�)�.rt .r rf:��t�4fy�-lit i� � s', 'tiPl:•,�
i
of the State Auditor of the State of New Mexico showing the
receipts and disbursements for the account of the system,
and that such audit will be available for inspection by any }
holder of any of the bonds . Each such audit, in addition
to whatever matters may be thought proper by the act'ountant
to be included therein , shall include the following:
L. A statement in detail of the income and
expenditures of the system for such fiscal year, and in
detail of the total water consumption , including but not
necessarily limited to domestic consumption, water used for
fires and flushing mains , and water consumed or lost and
unaccounted for, and total sewerage treatment by classes of
customers .
2 . A balance sheet as of the end of such
fiscal year, including all funds created by the various
ordinances and other proceedings authorizing the issuance
of outstanding bonds and other obligations p.3yable from
the revenues of the system .
3. The accountant 's comment regarding the
ajan,Der in which the Town has carried out the requirements
E r_nis ordinance , and any other ordinance and other pro-
C(-e0ings authorizing the issuance of outstanding bonds or
:t.her obligations payable from the revenues of the system ,
ino t.iiL• accountant 's rFcommendation for any charge or im-
r�: yavc�n+EnG in thr operation of the system,.
4 , A list of the insurance policies in force
at tnc- cnd Ot the fiscal year, setting out as to each
taut icy Lhe amour+t of the policy, the risks covered, the
n,,1me of t_he insurer and the expiration date of the polio
5 A recapitulation of each fund or accol.)nt
<I nv ':he various ordinances and other proceedings
r,l:t7)•i:7 tnA the issuance of outstanding honds and other
ig Lip:`ns payable from the revenues of the system , into
Lund are pat moneys derived from the operation of the
or derived from the sale of the securities , s►.tcF
ana t ysi ;; to show the balance in such fund at the beginning
of the tisc:al ve-jr, ti-e deposits and withdrawals during
said year , and the ba i anc:e at. the end of said year ,
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6 . The number of metered water connections,
unmetered water connections , fire hydrant connections,
metered sewer connections, and unmetered sewer connections
at the beginning and at the end of the fiscal year.
7 . The number of customers per class of
customers and revenues per class of customers, including
but not necessarily limited to classification by water
facilities and sewer facilities .
A similar audit and report shall be prepared by Town
employees immediately after the expiration of each six
months of each fiscal year. All expenses incurred in the
making of the audits and reports required by this section
;;hall be regarded and paid as a maintenance and operation
expense , The Town agrees to furnish forthwith a copy of
each of such audits and reports to the holder of any of
the bonds at his request, and without request to Quinn &
Co . , Albuquerque, New Mexico , i .e. , the purchaser of the
bonds from the Town , and to The First National Bank of
Deaver , Denver, Colorado, i . e .. , the above-named paying agent
bank, or to any successor paying agent bank, after each
--uch ,audit and report has been prepared, and that any such
!L$ . ,ir r st,a 1 l have the right to discuss with the accountant
person making the audit and report the contents thereof
to ask. for sach additional information as he may
c-
iiabl.y require , The Town shall publish a summary of
f� such annual audit at least once in a newspaper within
cr,re months from the end of the fiscal year .
1 . Billing Procedure . That all bills for water,
sc?•v•i.ce of facilities , sewer service or facilities ,
ar;v combination thereof. , furnished or served by or
(A.,$1.}: the system shall be rendered to customers on a
established day of each and every month either
!r(.r, Lh ! y in advance or in the month next succeeding the month
,.,;.-Lc h the service was rendered and shall be due withim
t-Wei)ty days from the date rendered ; and in the event said
1:= 1. i s, are noc paid within twenty days after the date when
ren6urud, water and water service shall be discontinued,
and the rates and charges due shall be collected in a lawful
—30-
a
manner. Water charges and sewer charges may be billed jointly
with each other or separately; and each such joint bill shall
show separately water and sewer charges . If said monthly
total bill is not paid by the designated settlement date,
Lhe water service to the customer will be discontinued.
Said service will not be started until said total bill and
a service charge of $5 .00 (tor the reconnection) have been
paid in full .
J . Use of 1961 Bond and Reserve Funds . That the
1961 Bond Fund and the 1961 Reserve Fund, shall be used
solely and only, and said funds are hereby pledged, for the
?,.:Nose of paying the interest on and the principal of the
co—G:s l.erein auchc._z:d, exce=C ",. C:.cSa r,,::ay'
196 t Bond Fund and in the 1961 Reserve Fund as are in excess
c,f the interest on and principal of said bonds, both accrued
and not accrued, to their respective maturities .
K. Charges and Liens Upon System, That from the
revenuc.-s of the system the Town will pay all taxes and
, ssessmencs cr or-Eer municipal or governmental charges , if
r,t:y , lawfully ie ied, assessed upon or in respect to said
5vsceri , or any part ti.erecf , when the some shall become due ,
.;OL12 it wI l l d.,!v .;bser -e and c•trr.ply with all valid require -
:-VOrs or .any mmiicipa ; cr governmental authority relative
L.C. any part of said system , and the Town will not create
c,r •r r<-: be created any lien or charge upon said system.
t_�.v rE -,;ena(•s therefrom except as permitted by this
.jr;'inarce , o it will make adequate provision to satisfy
,in.i disrhaz within sixty days after the same stall accrue ,
., i s 1 Ow: u i c i„l,.s and demands for labor, ma teria ls , supp l i e s
' r other o'bj-�'cts , which; if unpaid, might by law becomt a
.zpon siid system or upon the revenues cheiefrom; pro-
,�; ! r.at ncthiz,g herein shall require the Town
ar ca,}tie t be discharged, or make provision for a:, ,
F,,a It COX ":ssSS>»ent , lion or charge before the time when
pavnwr t ther,!vf shn 11 be due or so long as the validity
r;lerLii)f steal : bF• contested in good faith by appropriate
legal proceedings .
• • 3i
L. Insurance . That the Town in its operation of
the system will carry fire and extended coverage insurance,
workmen ' s cc;npensation insurance and public liability in-
surance and other types of insurance in such amounts and to
such extent as is normally carried by private corporations
operating public utilities of the same type. The cost of
such insurance shall be considered one of the operating
costs of the system. In the event of property loss or
damage, insurance proceeds shall be used first for the
purpose of restoring or replacing the property lost or
damaged, any remainder shall be treated as net income , and
shall be subject to distribution in the manner provided
hereinabove in Section 15 hereof, for net income and revenues
derived from the operation of the system.
M. Competing System, That as long as any of the
bonds hereby authorized are outstanding, the Town shall not
grant any franchise or license to a competing system, nor
shall it permit during said period (except as it may legally
be required to do so) any person, association , firm or
corporation to sell water, water service or facilities , or
Ft wt•r service or facilities , to any consumer, public or
E: ;i va to , within the Town.
N . Alienating System_ That the Town will not
sel : , lease , mortgage , pledge, or otherwise encumber, or in
:!ny manner dispose of, or otherwise alienate , the system, or
J)arc thereof, including any and all extensions and
ildd; ;. ions that may be made thereto, until all the bonds
%orc Ln authori.zed to be issued shall have been paid in full ,
.)Lh ,Jrincipal and interest , cr unless provision has been
r 'Jde ;hirefor , except that the Town may sell any portion of
said proper .y which sha11. ►zave been replaced by other prop-
erty of at least equal value , or which shall cease to be
nocessary for the efficient operation of the system, but in
no manner nor to such extent as might prejudice the security
for the payment of the bonds herein authorized, provided,
however, that in the event of any sale as aforesaid, the pro-
ceeds of such sale shall be distributed as net income of the
system in accordance with the provisions of Section 15 hereof .
-32-
0. Extending Interest Payments. That in order to
prevent any accumulation of coupons or claims for interest
after maturity the Town will not directly or indirectly,
extend or assent I:o the extension of the time for the payment
of any coupon or c.lr,im for interest on any of the bonds
issued hereunder ,and it will not directly or indirectly be
a party to o'r approve any arrangement for any such extension
or for the purpose of keeping alive any of said coupons ; and
in case the time for payment of any such coupons shall be
extended, such coupon or installment or installments of
i.ncez-est after sich extension or -o-rangement shall not be
entitled in case of default hereu,-: ',�r to the b,-• nefit or
security of this ordinance except subject to the prior
payment in tell of the principal of all bands issued here-
under and then outstanding, and of matured interest on such
ponds the payment of which has not been extended.
F . Surety Bonds .. That each municipal official
or other person having c .istody of any funds derived from
operati%-?n of Oie system, or responsible for their handling,
be bondcd in an amount, at least equal to the total
in I.,-s custody at any one time , which bond shall be
di t 10r)('d 01,09 thc-- groper application of said funds . The
r f ,j-,-I. !�cnd shall be considered ,-ne of. the
L,orcit.i v . ; st .; . :. rhr system .
s� ('o.rp. - tenl.`Management . That the Town shall
i
I-i •rI"1t-reed and qualified ma-iager for the joint
_ ; • ;i, :;�. , .l ?t..,r 4�t,r Shall he under the direct control c: L.
?:,�.: r, ti,.�)t•�a 1 :1..4'' kli rec t 1y to said Board of Trustees . flee
!.! " " I .I ''i Ild tr.aIldger shall be confined t.r, the e tficietl !. �
i , t r•i, t ;;f th,e system, and to thk• administr,u . ,)n
.: 'Ji�1f_; The City Clerk shall be liable l-or
c l. . r i :t. : c,,n. f•rning the. ; cint system , including
0 . , rccords , all billings an.; col loc Liens f
nt ,_src(-rr.-. nt c-f rates for service (cst.ablished a:,d
lk�d by th.O Li.),ird of Trustees), enforcement. of all
l-,c:nci t t-e purchase of materials and supplies
ncedell for c,:e e f 1 I c' is Dt operation of thc_ b stem , upon
rece; p:r of a l.urcl,.,st> order from the afcresaid Manager 11)
- 33-
the event of default on the part of the Town in paying
principal of or interest on said bonds promptly as each
falls due , or in the keeping of any covenants herein con-
tained, and if such default shall continue for a period of-
sixty days , or if the net revenues of the system in any
fiscal year should fail to equal at least the amount of the
principal of and interest on the revenue bonds and other
obligations (including all reserves therefor specified in
the authorizing proceedings , including but not limited to
this ordinance) payable from said net revenues in that
fiscal year, the Town shall retain a firm of competent
management engineers skilled in the operation of water and
sewer systems to assist the management of the system so
long as such default continues or the net revenues are
less than the amount hereinabove designated.
R, Performing Duties . That the Town will faith-
fully and punctually perform all duties with respect to the
system required by the Constitution and laws of the State
cif New Mexico and the ordinances and resolutions of the
T .wri , including but not limited to the making and collecting
c,f reasonable and sufficient rates and charges for services
rendered or furnished by the system as hereinbefore pro-
.:ided , and the proper segregation of the revenues of the
!., ,: gem and their application to the respective funds .
5 Other Liens . That other than as provided by
r!titi ordinance , there are no liens or encumbrances of any
nature , whatsoever, on or against said system or the
v� i�uts ;ieri.ved or to be derived from the operation of the
s a r.;•
T. Toran 's Existence . That the Town will maintain
s corporate identity and existence so long as any of the
honds herein auchcrized remain outstanding.
it Completion Bonds . That in order to insure
thc of the Project , and to protect the holder
or 'ioldcrs of the bonds , the Town will require that the
cent :act cr to whom is given any contract for construction
.,p}!t rt AiTiing to the Project to supply a completion bond or
ndi; satisfactory to the Town , and that any sum or sums
-34-
derived from said completion bond or bonds shall be used
within six months after such receipt for the completion of
said construction , and if not so used within such period,
sh.a1L be placed in and be subject to the provisions of the
Income Fund provided for herein .
Section 22 . Events of Default. That each of the
following events is hereby declared 311 "event of default, "
that is to say.
A. Payment of the principal of any of the bonds
herein authorized to be issued shall not be made when the
same shall become due and payable, either at maturity, or
by proceedin6s for prior redemption , or otherwise .
B. Payment of any installment of interest . shall
not be made when the same becomes due and payable or within
thirty days thereafter.
C . The Town shall for any reason be rendered
incapable of fulfilling its obligations hereunder.
D. The Town shall make default in the due and
punctual performance of its covenants or conditions, agree-
Tent.s and provisions contained in the bonds or in this ordi-
oance on ir.s part: to be performed, and if such default
�r.al i cortin•.ie for sixty days after written notice specify-
! -z such default apd requiring the same to be remedied
shhall have been given to the Town by the holders of twenty-
; i .'c per cent in principal amount of the bonds then out-
Section 23 . Remedies for Defaults . That upon the
h,:,ppening and cor.t:inuance of any of the events of default
as p�7ovided it Section 22 of this ordinance , then and in 1
evvey case Lh:e t,oLder or holders of not less than twenty-
i i .•t, per centuT. in principal amount of the bonds then out-
; r,ciing , in, _Iuding but not limited to a trustee or trustees
•�:.: '. t.r , m6y prc:ceed against the Town , its governing body ,
. n1741 i t : agcrts , officers and employees to protect and enforce
Lhe rights cf aiiy holder of bonds or coupons under this
ordinance by mjndamus or other suit, action or special pro-
in equity or at law, in any court of competent
i %irisdictlon , either for the appointment of a recfive.- or
- 35-
x#v5Y' f!'�kd,i zAiat..t .a 'y18s �`: ..s• z
no n T 4 y v 'tQ t.yR
,I
for the specific performance of any covenant or agreement
contained herein or in an award of execution of any power
herein granted for the enforcement of any power, legal or
equitable remedy as such holder or holders may deem most
effectual to prote=t and enforce the rights aforesaid, or"
thereby to enjoin any act or thing which may be unlawful or
in violation of any right of any bondholder, or to require
the governing body of the Town to act as if it were the
trustee of an expressed trust, or any combination of such
remedies . All such proceedings at law or in equity shall
be instituted, had and maintained for the equal benefit of
all holders of the bonds and coupons then outstanding. Any
receiver appointed in any proceedings to protect the rights
of such holders hereunder , the consent to any such appoint-
ment being hereby expressly granted, may enter and take
possession of the system, operate and maintain the same ,
prescribe rates, fees or charges and collect , receive and
apply all. revenues arising after the appointment of such
receiver in the same manner as the Town itself might do.
Ti.,e failure of any such holder so to proceed shall not
re jeve the Town or any of its officers , agents or employees
.'. t any liability for failare to perform any duty. Each
_;r privilege of. any such holder (or trustee thereof) is
a,:)Cl t:+.r*ulat; •:e to any other right or privilege ,
rr:t t: v Fs+1rcise c any right or privilege by or on behalf
Of any 'r►.: 1der i rc.t be deemed a waiver of any other
r 1 �',�.C C 17 (:r i V1 ..E g,? tl:E IE?Of .
tipct ► Duties '_;pon Defaults . TEat upon the
P AI 5 ;. �l;p •.i ns; „r a: y of the events of default as provided in
:,:,n of trLi.s ordinance , the Town in addition , will do
al i pr:;., r acts on behalf of and for the holders
r,. -,(ls and -_c. ,;Fo, to protect and preserve the security
i :-. r '.1.e raympnt cf their bonds and coupons and to
p.)YIrIC;)t a+ the principal of and interest on said
ht�nctc �:; .•.ill t ;y as tl.e sacre become due . Ail proceeds derived
tix.-e f i om . so l ong as any of the bonds herei-; authorized ,
r : the as tc+ prir.cipal or interest , are outstanding and
,;>> Ad . shall be paid irro the 1949 Bond Furd , if any 1949
- 36-
. bonds be outstanding, or if rot, then into the 1961 Bond
Fund, or in the event of bonds hereafter issued and out-
standing during said period of time on a parity with the
bonds herein authorized, into such bond funds on an equitable
and prorated basis , and used for the purposes therein pro-
vided. In the event the Town fails or refuses to proceed
as i.n this section provided, the colder or holders of not
less than twenty-five per cent in principal amount of the
bonds then outstanding, after demand in wrsting, may pro-
ceed :.o protect and enforce the rights of the bondholders
as hereinabove provided.
Section 25 . Prior Charge Upon Lower Rates . That
if it should be legally determined that any legislative or
other body, commission, or authority has power lawfully to
prescribe a lower schedule of rates than that contemplated
by this or other ordinances , and if such lower rate shall
be prescribed, then the payment of interest on and the
principal of said bonds , issued pursuant to the provisions
of Lhis ordinance , shall constitute a first and prior charge
c,r. Lhe revenues received from said system, together with
t.-kc bonds and other obligations the lien or liens of which
is or are on a parity CA such revenues with the lien there - �
:,n Of ch` bonds 't..erein authorized, subject to any right of
:lily -C) " ':er or any of the outstanding 1949 bonds , anything
i:, t.lhis ordinanc,- contained to the contrary notwithstanding.
Section 26 , Delegated Powers . That the officers
the Town be, and they hereby are authorized and directed
t.o ake all action necessary or appropriate to effectuate
:.hu ,)_:.)visions of this ordinance , including, without limiting
y,e::e ra l i ty of the foregoing:
A . The printing of said bonds ;
B . The execution of such certificates as may be
<tsunably rewired by the purchasers thereof relating, inter
to t:he sini.ng of the bonds, the tenure and identity
Of thL' mj,nicipal officials , delivery of the bonds and the
of. the bond purchase price and the absence of liti-
;:� ;:iun , p:nding or threatened, affecting the validity thereof.
- 37-
Section 27 . Amendment of Ordinance .
A. Consent Needed. That this ordinance may be
amended or supplemented by the Board in accordance wish the
laws of the State of New Mexico, without receipt by the
Town of any additional consideration, but with the written
consent of the holders of three-fourths of the bonds authorized
by this ordinance and outstanding at the time of the adop-
tion of such amendatory or supplemental ordinance (not in-
cluding in any case any bonds which may then be held or
owned for the account of the Town, but including such
refunding bcnds as may be issued for the purpose of refund-
ing bonds Tiot owned by the Town) ; provided, however,
that no such ordinance shall have the effect of permitting:
1 , An extension of the maturity of any bond
authorized by this ordinance - or
2 , A reduction in the principal amount of
filly bond,I the rate of interest thereon , or the redemption
premium payable thereon ; or
3 . Ifte creation of a lien upon or a pledge of
revenues rank.L..
.*rig prior to the lien or pledge created by
0-,is ordinance , or
reduction of the principal amount of
:�..,rds re- jul- re-d for consent to such amendatory or supplemental
i.n--j,)c car
Thc esrablishment of priorities as between
J
boud,., tl'-,sued and cut.sr.anding under the provisions of this
W.*k,injT1,o ; or
0 The modification of or anything affecting
A rhc, holders of less than all of: the bonds
8. C.(.YI .,(-nL Binding on Successor Holders of Bends .
holders of at leaSt seventy-five per centum (75%) in
j,rink* zrP,i ] t,mount of the bonds outstanding as in
at the time of the adoption of such
ora; n..'Iice 1, or the prede(,essors in title of such
consented to and apprc.ved the. adoption
Onte t-e o!_ i:-, h(: r,_in provided , no holder of any bond wheth(--r
or UOL such holder shall have consented to cr shall have
3P-
revoked any consent as in this section provided, shall have
any right or interest to object to the adoption of such
amendatory ordinance or to object to any of the terms or
provisions therein containec' or to the operation thereof or
to enjoin or restrain the Tcwn from taking any action
pursuant to the provisions thereof,.
C . Consent Irrevocable for Six Months . Any
consent given by the holder of a bond pursuant to the pro-
visions of this section shall be irrevocable for a period
of six months from the date of the publication of the notice
above provided for and shall be conclusive and binding
) IL' future holders of the same bond during such period .
Such consent may be revoked at any time after six months
from the date of the publication of such notice by the
holder who gave such consent or by a successor in title by
f i !. ink; notice of such revocation with the Clerk, but such
revocation shall not be effective if the holders of seventy-
five per centum (75% ) in aggregate principal amount of the
honcts outstandirg as in this section defined have, prior
:o :itten:'pted rP ':uCdtion , consented to and approved the
.:rnelld,; ory ordinance referred to in such revocation ..
D . Prcof of Cc.nsent . The fact and date of the
: xE ruti� c-.f a,zv inst r.ume-t ender the pro-visions of this
may nr- ;:roved by the certificate of any officer in
nd i c t i:::� ::i�;, by the laws thereof is authorized tc
;f deeds within such jurisdiction , ti .� :
c;ur Signing s1.1: instrument acknowledged before him
r.ricreof , or may be proved by an affidavit c•i
: n� ss to such execution sworn to before such officer
E . Fro;:•f of Ownership of Bonds . The amount ailti
::r7•:;rz, Of the bonnds }geld by any person executing such
:)id thc: date of his holding the same may be
f� •���- c? i-y a r:E r: ; fi ace executed by a responsible bank ;)r
c;,mpany sr.,. :ing that on the date therein men ti ont d
s-ac;. person had ;r dYposit with such bank or trust company
:nr bonds described in such certificate.
Seccicn 28 . Ordinance :rr�ji alable That after
any of the bonds herein authorized are iss•.sed, this ordinance
-.39-
z
t
shall be• and remain irrepealable until the bonds and the
interest thereon shall be. fully paid, cancelled, and dis-
charged, as herein provided.
Section 29 . Severability Clause . That if any
t
scction , paragraph, clause or provision of this ordinance
shall for any reoscn be held to be invalid or unenforceable ,
the invalidity or inenforceability of such section , paragraph,
clause or provision small not affect any of the remaining
provisions of this ordinance.
Section 30 Repealer Clause , That 11 by-laws,
crc.ers , resolutions and ordinances, or parts thereof, in
consisL,�nt l.erewith are hereby repealed to the extent only
of such inconsistency . This repealer shall not be construed
rovive any by-l.aw, order, resolution or ordinance, or
part: thereof, heretofore repealed.
Section 31 , E'm,�rgency Clause and Effective Date .
rh3L L-his ordinance is necessary for the preservation of
p•.,b Lic health , peace and safety of the inhabitants of ,
r.'r.c Town , and that by reason of the fact that extensions ,
tn1Arge:.cnts and betterments to the system are innediately
r uirt•:i . t;;is c_d"2ance is hereby declared ro be an
m,f•asure c;n the groir•d of urgent p;!b•lic .need. and ,
2'l: LGL"Erg im-mediately •jp.,n its ad,;ption by at least a
the f-illy autrcriz d members of the
,' 2re Sc,�r'd and upor !. : s final passage this ordinance
Di re:.,;r6ed in the bock of ordinances of the Town
ict ;; t. r(;r tr.iit 1' irposc , authenticated by the signatures of
t ` . Mayor rind 'roc,n Clerk, and shall be published it the
;i�; _ a newspaper published and of
ri 2-cul .ition ::I) the Towr of Taos , in accordance with
anti said ordinan shay_ be in full force and effect
i1 days after sucl: plblication .
P".SSED ADCPTED. SIGNED AND APPROVED this
July ; 96
Mayor