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528 TOWN OF TAOS ORDINANCES YEAR: NUMIBER4 269 Ordinance No. 2. as presented, dealt with the establishing of a Building Official and Zoning Officer. Mr. Mingenbach informed the Council that the Planning & Zoning- Commission were recommending_ Mr. Ernest Martinez as the official. Councilman Sanchez, moved that an Ordinance establishir;Q a Bu ' ' 'i.ng Official and Zoning; Enforcement officer be approved and adopted. T:.. Motion was seconded by CouncilmanMartinez and carried. Councilman Sanchez further moved, that Mr. Ernest Martinez be approved as the Enforcement officer and that 50% of the Building permits and fines imposed when a violation occurs be paid to Mr. Martinez as Compensation for handling the work. The motion was seconded by Councilman Martinez and carried. ORDINANCE NO. 3 Upon a Motion by Councilman Martinez, seconded by Councilman Hollis , and carried, Ordinance creating an Interim Borad of Zoning Adjustment was adopted and approved. The Planning &Zoning Commission was authorized to act in that capacity until such time that an Interim Board is appointed. Ordinance No. 4 Councilman Martinez moved that the Ordinance amending the Uniform Buildinp Code and the Uniform Housing Code , relative to paragraph 3 of Section 303-A be adopt The motion was seconded by Councilman Hollis and carried. Amended to read as follows: Quote, "Where work for which a permit is required is started or proceeded with prior to obtaining said permit, the fees above specified shall be increased by 25% and additional penalty of a fee increase of one percent (1%) per day shall accrue for 75 consecut;.ve calander days until the fee shal be doubled, but the payment of such increased fee shall not relieve any persons from fully complying with the requirements of this Code in the requirements of this code in the ex- ecution of the work nor from any other aenalites perscribed herein." end of quote. STREET NAMING. The matter of street naming was brought to the attention of the Council. Mr. Mingenbach informed the Council that 120 posts would be needed for 79 street names, This matter was taken under advisement. FINANCIAL REPORTS AND POLICE DEPT. REPORT The Mayor recommended that the Councilmembers take home for review the Fin- ancial reports of the Town and the Water Dept. and the Police Dept. Acitivity repor- PURCHASE OF EQUIPMENT The Mayor informed the Council t:,at the Highway Dent. had f*iven the Town a stock pile of gravel located 13 miles up Taos Canon. The State will furnish the oil at no cost to the Town, but the lack of a loader holds up the Faulinp of the grave . Ter 0 The Mayor requested authority by the Council to obtain information from dealers of tractors , loaders and back-ho's so as to ask for bids on a lease- purchase contract. The Council without a motion authorized the 1-1,avor •to obi tain information on Loaders, tractors and back-ho's under a lease purchase agree- ment. CONDEMNATION OF OLD AND-4DANGEROUS BUILDINGS Condemnation of old and dagerous buildings upon recommendation of the Health Dept. was discussed. It was found that the above matter is regulated and controlled by the New Mexico Uniform Building Code as adopted by the Mayor and the Council of the Town of Taos. There'.,being no other business, Councilman Martinez moved for adjournment. The motion was seconded by Councilman Hollis and carried. i / Mayor ATTEST: 1. Town C1 August 6, 1963 The Council of the Town of Taos met in special meeting August 6, 1963 , at the hour of 1:30 o'clock p.m. , in the councilroom with all members present: as follows: Mayor Floyd Santistevan, & Councilmembers, Mrs. Floyd W. Beutler, Mr. Filemon Sanchez, Mr. Palemon R. Martinez and Dr. R. G. Hollis. Also present was Town Clerk, 14olly O. Rivera. A auorom being present the meeting, was called to order. The only business 1or consideration was the matter of approving the balance of the Proceedigns with refer- ence to Ordinance No. 528, in connection with the Resolution and the Notice of Prior Re- demption of Bonds , relative to authorization to the Town of Taos to issue its joint water and sewer Refunding Bonds, Series, July 1, 1963 in the aggregate amount of $405,00.00. The Resolution was introduced by Councilman Hollis and said Resolution was read in full by the Clerk. Councilman Hollis now moved that the Resolution be passed and adopted as read. The motion was seconded by Mrs. Beutler and carried. The Council now requested that the Prior Rederrirtion Notice be published in the Taos news as required by law. There being no further business, Councilman Hollis moved for Adjournment. The motion was seconded by Councilman Martinez and carried. Mavor ATTEST: Li Town Clerk, PEXE MARNVICK. IIITCIIELL & CO. CERTIFIIiD I1I1I3LIC ACCOUNTANTS BIT SEVENTEENTH STkELT DENVER 2. COLORADO May 29, 1963 (Note) Peters, Writer & Christensen, Inc. 724 Seventeenth Street Denver 2, Colorado Attention: Mr. Duane G. Lankford Gentlemen: As requested, we have reviewed the calculations in the attached schedules, prepared by you, of the proposed debt payment schedule and total disbursements and proposed escrow fund transactions involving the presently outstanding Town of Taos, New Mexico, water and sewer revenue bonds, Series November 1, 1949 and Series July 15, 1961. We have also read the attorneys' opinions, provided by you and attached hereto, relating to the issue of the obligations, insofar as the presently outstanding obligations are described with respect to principal outstanding, interest rates and redemption provisions . Also, based upon information supplied by you, it is our under- standing that no such bonds have been redeemed or cancelled prior to scheduled maturity. In preparing the schedule of principal redemptions, you have indicated certain redemptions to be made earlier than the normal maturity date. In our opinion, the calculations in the attached proposed debt payment schedule and total disbursements relating to the presently outstanding water and sewer revenue bonds, Series November 1, 1949 and Series July 15, 1961, are correct, based upon the recitals in the attorneys' opinions and prior redemption on November 1, 1971 of all. such bonds then outstanding. Also, in our opinion, the calculations as to transactions in the proposed escrow fund are correct, based upon the principal amounts of U. S. government obligations, interest rates and payment dates supplied by you. We shall be pleased to assist in the preparation or review of further data that may be needed in this matter. Yours truly, /'/ A,�-e4 < (Note - This letter supplements our letter of same date without making any changes in conclusions or supporting computations. ) ti 'I r ­U4 c 00 T I Aa or T;C-4untoco t�lti ,i- . - I) t 17 -il the t;-A .1 1;1* ;.- 0.: 1 C L;Z,l` n, I Of o—r Q10 of I t f th irl C-ZiC;411 Of T, 421 r;.24 t t I o 0 0 of U'lo ou C; 0 C C ch 0 I ill C�i ch f 'I o 1-j ID Ol C) t J. C' t I 'It"'i D71. - ) C Ch ol" the Y C i' Z'2 in C l",0 of thc 6-- 0 rO t i r a- n 101l. option tIM L-1 inv -r Z 0 f o t I ol r • .". -� `� .fit .. �, h .�.. er'_..�'1, ��..:� __a. . ,'a. ,:.r ..�� .l •^v inQ1.LC.. and h v-o �.•`. ,�j. ,r, .•» S` ��'• .�:. .t '1�,1 ti.� ` J �., �" v `z i .,? .v41...1 '✓ 11 ti+ v` C:ci J \:.. r:'_. L»�. .. ,l.ar.L ua r' rn'�.bh �r:w• Y7.ti .;.� �. �,�»'.. i 'u ... '-v i�. _.�. �', :Iw' P. il.'a.!.lr�... -�. ..�. rVf� ...,...!1.'.W`... _ ....J �i 4` .� . ..�� l.. `....... '1. ,.�.5•....:..r7. J�J��/.-. ..+^L� *.., G_ •.J t.. �v./ �;., .� 1. .,��' :'.,: :: L:cL':'-.. L:i.l7 VC1.e.tL ....�Z.G: .. ....... .7':r" u�rl.�..`J'1 ..«�✓ vG� ........� .J. ...y. .�. T�� IL:I�� cJL''.�G�.1.,� (JLi�OJ ��� 4 .....) «-.. .' 7.....�..... `L.:s. IJ l)..�.`... J .-...»�y.�..i... ... .11.r..«. • `V.aa Vu.r�.ti.n l`,-' t.. I V •N./r l.A.L w 0��•. i OYr to BI.lnJ. e Of O'zio-T—atins ':+.�..{.� .r......'... _.'W� .»....'..�V�J �•...-:...;a�..a lr.. ��..��._� fi_.�;_,;�._.J �.�.1.,~�_rJ 10 c..'d G f1ll..$ -C;Y i !, 1 L .w OFFICES c,Yoc c or, DAWSON,NAG EL,SHERMAN & HOW.ARD JAMES H PERSHING (1003.1948) FpIrz A NAGEL SAMUrL 5 SHERMAN,J1. (PER:3HING,i305WORT I,DICK & DMA'SON1 ROUERT G 005WORTH 1t300.1954) WIHSTOH S HOWARD LEWIS A.OICK(11309-1954) MICHAEL REIDT RC.DERT M J0H!150N Ig00 FIRST NATIONAI. BANr• BUILOING As,rH�o •.DEaW090,Ja •1bVl:. LCNTj DENVER 2,COLORADO NILLA•. C VIDE Lr.CR rL (, —011 AMI,ERST 13.3401 NIl.lA4 r—THING 'C •ATCrMRONCUOSGJ TRUI fRFNER August 21 , 1961 •111:r1A1?D L CA.r•ON INIICC L C~15 sARTH C GRISJOM MICHAEL D GROSHEM 'ILL-AM F.SCHOCRCRLCIN 1'RANCIS P MING IAIC HALL A WILLI AMS Aa THUR J SEIVERT JAMES A PYA14 JAMES U DALEY LARRY M GAMER CHARLES EDWARD PALMER Town of Taos , New Mexico Joint Water and Sewer Revenue Bonds Series July 15 , 1961 - $155 ,000 .00 THIS CS TO CERTIFY that we have examined the Constitution and laws of the State of New Mexico and a certified transcript of the record of the proceedings o1: tre Board of Trustees of the Town of Taos , in the County of Taos and State of New Mexico, taken preliminary to and in the issue by said Town of its "Town of Taos, New r'exico, Joint Water and Sewer Revenue Bonds , Series July 1.5 , 1961, " in the aggregate principal amount of $1.55 ,000 .00, bearing date July 15 , 1961 , consisting of 155 bonds in the denomination of $1,000 .00 each, numbered consecutively from 1 to 155 , both inclusive, bearing interest, from date to maturity, at the rate of five per centLm (5 ) per annum, as evidenced by coupons designated "A, " attached to said bonds, and shall bear additional in- terest from date to the first day of May, 1971 , at the rate of: one per cen tum ( 1%) per annum, 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, and maturing serirlly on the first day of November in etch year, the bond numbers , amounts maturing and years of: maturity, all being as follows: Bond Numbers Amounts Years (Ali Inclusive)_ Maturing Maturing_ 1 - 20 $20,000 .00 1980 21 - 40 20 ,000 .00 1981 41 - 60 20,000 .00 1982 61 - 8020,000 .00 1983 81 - 100 20 ,000 .00 1984 JAWSON,NAGE:L,SHERMAN & HOWARD Town oJE Taos , New Join Water and Sewer Revenue Bonds Series; July 15 , 1961 - $155 ,000 . 00 Page 2 Bond Numbers amounts Years (All Inclusive) T_at�Er1*_nF; Maturing 101 - 120 $:: 0 ,000 .00 1985 121 - 140 '20,000 .00 1986 141 - 155 1.5 ,000 .00 1987 both principal and interest being payable in lawful money of the, United States of America upon the presentation and surrez:der of said bonds end coupons as they severally be- come (.ue , without deduction for exchange or collection char-l(-S ) at The First Nation"l nlc of Danver, Denver, Colorz do. All bonds are subject to red-?mption in inverse nuiner: cal order, at the option of the Town of Taos, on !!ay 1, 1971 , or on any interest payment date thereafter prior 1-o maturity at a price equal to the principal amount thereo: with accrued interest to the redemption Bate and a 4:)rer.,ium of four and one-half per centum (4-1/2%) of the pr:inci pal amount thereof. We have also examined bond numbered one of said issue and have found the same properly executed and in due legal form. It is our opinion that such proceedings show lawfu: authority for said iss,u� of bonds under the laws of tllc State of New Mexico now in force ; that said bonds are va lid and legal obligations of said Town , parable both i s to principal and interest solely out of a special fund c esi gna ted "Town of Taos , .i.oint Water and Sewer .,evens e Bonds , Series July 15 , 1961, Interest and Bond i:e :i::c mz-nt Fund, " into which tee Toy:n of Taos covenants to pay :_: o:n the income and rever.uas derived from the operation of it:: municipal joint waiver a 6 serer system, after pro- only for all necessary and reasonable expenses of ion and maintenance of said joint system and after pa.r1.1er t from said income and revenues of principal, in- te::est., and reserve requirements for Village of Taos , New Me:ticc ., Water and Sewer Revenue Bonds, Series November 1, 1949 , sums sufficient to pay w:Zen due the principal of and in_er<. st on said "Town of Tacs, New Mexico, Joint Water JAWSON,NAGEL,SHERMAN & HOWARL Town of Taos , New Mexico Joint Water and Sewer Revenue Bonds Serie:; July 15 , 1961 . - $155,000 . 00 Pa;e 3 and Sewer Revenue Bonds , Series July 15 , 1961 , " and to create and maintain a reasonable reserve for such purpose ; that said "Town of Taos , New Mexico, Joint Water and Sewer Revenue Bonds, Series July 15, 1961, subject to the paymeT;t u : the expenses of operation and maintenance as aforesaid, and subject to the payment of said Village of Taos , New Mexico, Water and Sewer Revenue Bonds, Series November 1, 1949 , constitute a first lien (but not necessarily an exclusively first lien) upon said revenues ; and that the interest on said bonds is exempt from taxation by thy: United States of America under present federal in- come tax laws and such interest is also exempt from taxation by the State of New Mexico under present state income tax laws. R espec:7Vsubmitted, TA OS, i\L' lid lYi 'E'Xi\.0 1NATER AND SEWER 11EvENUE BONDS PROPOSED 1)EB I Y.A) MEN l ,SC HED0 LE !1'.\1) 10 1A L M5BURSEMEN 13 NO\ EM]3FJ-,' 1, 1963 11MOUG] t NO_: EM131-;R 1, 1` 71 Seri I) it ri iv; ,. t.ui.i,er i, 1;41 _ Serir;� D:11.-d ltily i5, 1961 __._.. C 11 I c1r ,l l o!-A 1:11rin;_ipa1 1.111rt: Yr_.11-iiurn l.)tA lli ;t,t,r ;:..mu:.t 1963 Nn• orribcrr 1 $ 10, 000. 00 `.,5, 000. 00 ;ti $ $ 4, 650. 00 $ $ 4, 650. 00 2 10, 000. 00 Jl) 255, 600. 00 259, 650. 00 1964 M-ty 1 4, 650, 00 4, 650. 00 4, 05O. 00 N.,vr:inl)er 1 4, G50. 00 4, 650. 00 4.. 050. 00 1965 M-i.,v 1 4, 050. 00 4, 650. 00 4, 050. 00 Novcnlbe-r 1 4, 650. 00 4, 650. 00 4, 650. 00 1900 M-,y 1 4, 650, 00 4, 650. 00 4.. (.5C-. 00 Novi:ml:-sr 1 4; 650. 00 4, 650. 00 -1, 050. 00 ly6 ; M.l'y 1 4, 65U, 00 .I, e,50. 00 1, 65'i. OU Nnvemlwr 1 4: (-,5(1. 00 4- 650. 00 4, 0 0. 00 1 1v1!.y' 1 ' 050. UU 4, 650, UU 4, ' 00 Novo.rnber 1 -1: 650. 00 4, (,50. 00 4. 650. 00 1909 M,,v 1 4; 050. 00 4, 6 0. 00 .1, 6 )(). 00 Novr:ml-,c.r 1 4; 65(. 00 4, 650. 00 4. 6')0. 00 1 )ii M-1..; 1 4, 050. 00 4, 65G. 00 4; 65is. 00 Nn,.,�mb.r-r 1 4, 650. 00 4, 050. 00 -1, LSD, , 00 1971 M-iv 1 4, 650. 00 4. 65r-. 00 4, 00. Novcrribo.r 1 155, 000. 00 1' 3, 875. 00 6.. 975. 00 165; 850, 00 165, 85(:'. 00 $250, ('00. 00 $5, 000. 00 $255, 000. 00 $1.55, 000. 00 $78, 275. 00 $6, 975. 00 $Z40, 250. 00^ $l-),. 250 00 (1) Redelnption of rernail,i.ng out3tanding principal.. FILMED DOCUMENTS ARE THE BEST AVAILABLE COPIES. N N rn y ' Ln Ln t O ' co Co .H wc: J ~ O o o a o 0 0 O O O O G O O u o - ca c c c o O N N N N N N N 1 rn �•: L rn O Q •� ~ O O O C) C O O O O O O C O O O O O �• O _ - O G O G C O O c O O o .� � w, u � � � . � . Ca l ti� O O O v O O O O O O C O O O O O W W - co C. • d+ N Nil �r W rr O Q � rn .O H ; w r� 0 a 0 0 0 0 0 o O C) 0 0 0 0 0 0 0 0 O -O 0 N N rV N N N N N N r/) G: M crl M ^1 M M M M 1 o 1 -1 a :D r 1 c' Ln 0 0 � O C O 0 O O O O O O O O O O O N C O N O C O O O O O O O O O O O O G G G `' O C O C lz •7 "+ c' .-. r', .-r M n Y1 O C G :D O O w O M t� cl h M O O O O G O o O O O O C O O O O O O O c O O 1' tn �C .fl Lr, Ln L : U1 : Ln 3 O G O O C O C) O C c c> O O CD 0 CD qH �+ t .f1 (a; N o Ln Ln Ln I'n O C) C) a C C, 1 O O C� Q G C) CD C) CD o O C-- C 00 0 U.) r- r- N ^ O O O O G C, CD 0 0 G O C) 0 0 0 0 0 0 0 0 0 0 C 0 1^10 C G C O C C G O C: G �:: 0 0 C O C C C O O ^, rV �1 r, rV r-+ r- -K �: N rJ -y f� �:) .V �J' - r• �+ �J :: V' n M r- N n c a� O O ^? oC r^ M C - �n J C ^1 Lh o� N M r.. G N Ln cc c- (-,I Ln -o C T ON u) 0) co .J �J -+ T) C O Ln 00 00 t4 r` M N Ln Lr) ;� - -0 O N O t: v Q Q 0 Z N Q 0 Ln r ;C) In r--� Zd P- !Ln Lr. C) IN ICI cd Ln f f n :C) () C:) , c I-V 0 lco O < Lr) 0 C) C) —4 C; 10 C) C) C) O O 0 C 1p c C� N, cN Nil —4 tco f 0 0 0 ED 0 C, 0 0 O 0 0 CD L C) n. ! cli 00 C 0 0 C) O 0 C:) C) 0 CD 0 0 0 0 0 0 0 C) 0 0 C) C� -V 't v ,;v `' N ('Q N N) N = Nj co C) C) rn r- C7, Z, C) 0 C) CD Z) 0 0 C) C) 0 0 C) 0 a; O C; a C; Ln LC) Lr) LT. Lr' Z 'D cc LO Lr) ,Ln, CD 0 -, 0 C-) 0 C) 0 0 Z) 00 --) Coco co (D 0 0 0 c D Coco C ZD 00 0 0 0 0 0 0 C', 0 C C) 0 0 (D C; c; c� 7, C: C• \D C n ON M Go N D r- N cr 01 cc r- 00 N Ln ON Lr) G cM C Ln -4 Lr) 1-4 co Cl U) rI —4 Lf) 1-4 coj i r l r c c :X. el 4 i WHEREAS , except as aforesaid, the Town has never pledged nor in any way hypoth,�!cated revenues derived and to be derived from the operation of the system, or any part thereof, ! to the payment of any bonds or for any other purpose (excluding proceedings authorizing .the issuance of bonds which have here- tofore been redeemed in full , both principal and interest) with the result that thn revenues to be derived from the system may now be pledged lawfiily and irrevocably for the redemption of additional bonds paj;able from revenues derived from the operation of the system; and WHEREAS, Section 19 of such Ordinance No . 528 (herein "Ord. No. 528") specifies limitations upon issuance of parity obligations, but such limitations presently may not be met and also may not be met at the time of the delivery of the bonds; and WHEREAS, the present water facilities and sewer faci- lities of the Town are insufficient, 'and the present joint system " is inadequate to meet the needs of, the Town and the inhabitants thereof; and . WHEREAS, the Board of Trustees of the Town (herein sometimes designated as the "Board" or, the "Governing Body") has determined, and does hereby determine , that it is. necessary and for the best interest of the Town and the inhabitants thereof that its joint system be extended, enlarged, bettered and other- wise improved; and WHEREASy the gross income anticipated to be derived from the' bystem is in excess of requirements for operation and maintenance of the system and the payment of the outstanding 1963 Bonds and pursuant to the statutes of the State of New Mexico such excess income may lawfully be pledged to secure the redemption of the 5-1-73 Bonds herein authorized to be issued (provided that such 5-1-73 Bonds shall have a lien on the net revenues of the system which is junior and subject to the lien thereon of the 1963 Bond.s.) ; and WHEREAS , the Board , after negotiation, has determined and does hereby determine , that the offer submitted by the Purchaser , for the purchase for cash of the 5-1-73 Bonds , herein authorized , at the rates of interest hereinafter set forth, for the principal amount thereof and accrued interest to the date of delivery, was and is the best offer submitted for such bonds , and that said offer be and hereby is accepted. i -3- NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE TOWN OF TAOS, NEW MEXICO: Section 1. Definitions. A. Adoption of Certain Definitions. The following designated terms , namely: Independent Accountant, Insured Bank , net revenues, net income , operation and maintenance expenses, revenues , gross revenues , income and gross income , being defined for all purposes of this ordinance and of any ordinance amendatory hereof or supplemental hereto, or relating hereto, and of any instrument or document appertaining hereto, except where the context by clear implication otherwise requires , shall have the meanings set forth in Section 1 of Ord. No. 528 , which meanings are hereby adopted by reference thereto as if set forth verbatim in full in this ordinance; provided , however, that all references in said Section 1 of Ord . No . 528 to "this ordinance" shall be construed as referring to the ordinance herein set forth and not to Ord. No. 528 . B. Other Definitions : (1) "Bonds" or "5­1=73 Bonds" means the "Town of Taos Joint Water and Sewer Extension Revenue Bonds , Series May 1 , 1973" issued hereunder . (2) "1963 Bonds" means the "Town of Taos Joint Water and Sewer Refunding Revenue Bonds, Series July 1 , 1963" , authorized by Ord. No . 528 . (3) "Ord . No . 528 " means Ordinance No . 528 which was adopted and approved by the Board on July 1 , 1963 . (4 ) "Consulting Engineer" means any register- ed or licensed professional engineer or firm of such engineers having a wide and favorable repute for skill and experience in the field of designing , preparing plans and specifications for, and supervising construc- tion of water systems and facilities , and sewer systems and sewer facilities , entitled to practice and practic- ing as such under the laws of the State of New Mexico , retained and compensated by the Town, but not in the regular employ of the Town; but, as to any construction drawings and specifications prepared for the Project by Town employees working on force account or otherwise under the supervision of the Town Engineer, this term may include the Town Engineer. -4- FILMED DOCUMENTS ARE THE BEST AVAILABLE COPIES. M (5) "Income Fund" means the "Town of Taos Joint Water and Sewer System Gross Income Fund" , origi- nally created in Ord. No. 528 , which is authorized to ' be continued in Section 15 hereof. (6) "Joint Water and Sewer System" , "Joint System" , "System" , "system" , or "Utilit " means the municipally owned public utility designated as the Town's water system and sewer system (constituting a joint system) , consisting of all properties , real , per- sonal , mixed , or otherwise, now owned or hereafter ac- quired by the Town through purchase, construction, or otherwise, and used in connection with said water system , and sewer. system of the Town and in anywise appertaining thereto , whether situated within or without the limits of the Town. (7) "Operation and Maintenance Fund" means • 1 V • 1 I the "Town of Taos Joint Water and Sewer Operation and Maintenance Fund" which was originally created by said Ord. No. 528 , which is authorized to be continued by Section 16 hereof. (8) "Paying Agent" means the Centinel Bank of Taos, Taos , New Mexico, as agent for the City for the l payment of the 5-1-73 Bonds, any interest thereon and any prior redemption premium in connection therewith. } (�) "Project" means extending, enlarging, bettering and otherwise impi.oving the joint system. (10) "Purchaser" means Robert E. Schweser Company, Omaha , Nebraska . C. Construction. Definitions include both singular and plural . Pronouns include Loth singular and plural and cover all genders . Section 2 . Ratification. All action heretofore taken (not inconsistent with the provisions of this ordinance) by the L-oard and the officers of the Town directed toward the Project and toward the issuance of the Town' s 5-1-73 Bonds for that Purpose, be, and the same hereby is, ratified , approved and .:on- firmed, including without limiting the generality of the foregoing, the sale of the 5-1-73 Bonds to the Purchaser , for the principal amount thereof and accrued interest to the date of delivery. Section 3 . Authorization of Project . The Project shall be acquired at a total estimated cost of not exceeding $200 , 000, i -5- excluding any suc7, cost defrayed or to be defrayed by any source other than proceeds from the 5-1-73 Bonds . Section 4 . Authorization of Bonds . 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 the Project, it is hereby declared to be necessary that the Town make and issue , and there , are hereby authorized to be issued, pursuant to the provisions of Sections 14-30-1 through 14-30-7 , New Mexico Statutes Annotated, 1953 Compilation , as amended, the "Town of Taos Joint Water and Sewer Extension Revenue Bonds , Series May 1 , 197311 , in the prin- cipal amount of $200 , 000 , payable both as to principal and interest solely out of the net income derived from the operation of the system, such net incomL being the gross income after de- duction only for the necessary and reasonable operation and maintenance expenses of the system, and the Town pledges irre- vocably, but not necessarily exclusively, such net income to the payment of the bonds and the interest thereon. Section 5 . Bond Details . The bonds shall be payable to bearer, shall be dated as of the 1st day of May, 1973 , shall consist of 40 bonds in the denomination of $5 , 000 each, numbered consecutively in regular numerical order from 1 to 40 , both inclusive, and shall bear interest, payable semiannually on the 1st day of May and November in each year, commencing November 1 , 1973 . Such bonds shall bear interest from the date of such bonds to their respective maturities at the rates hereinafter specified, as evidenced by one set of coupons attached to each of said bonds and designated "A", and shall be numbered and mature serially on the lst day of November in each of the years hereinafter desig- nated, as follows : Interest Rate Bond Numbers Amounts (Per Annum) Years (All Inclusive) Maturing By "A" Coupons Maturing 1 $ 5 , 000 5. 00% 1975 2 5 , 000 5. 00% 1976 3 5 , 000 5. 00% 1977 4 5 , 000 5 . 35% 1978 5 5 , 000 5 . 35% 1979 6 5 , 000 5. 35% 1980 7 5 , 000 5. 35% 1981 8 5 , 000 5 . 35% 1982 9 - 12 20 , 000 5. 60% 1983 ( 13 - 16 20 , 000 5. 60% 1984 17 - 20 20 , 000 5. 70% 1985 21 - 26 30 ,000 5. 70% 1986 27 - 32 30 , 000 5. 80% 1987 33 - 40 40 ,000 5.80% 1988 -6- FfLMED DOCUMENTS ARE THE BEST AVAILABLE COPIES. Each of the bonds shall bear additional interest from the lst day of May, 1973 , to the lst day of November, 1977 or the maturity date of such bond , whichever is earlier, at the rate of two and seventeen-hundredths per cent (2 .17%) per annum, as evidenced by a second set of coupons attached to each of said bonds and designated "B Both principal and interest shall bE payable in Lawful money of the United States of America ,. with- out deduction for exchange or collection charges , at the Paying Agent. In the event any of the bonds shall not be paid at maturity upon presentation, said Bonds shall thereafter continue to draw interest at the "A" rate specified in the Bond until the principal thereof is paid in full . Section 6 . Prior Redemption. Bonds maturing on an6 after November 1 , 1983, shall be subject to redemption prior to . their respective maturities in whole or in part and in inverse numerical order , at the option of the Town, on the lst day of November, 1982 , or on any interest payment date thereafter, at a price equal to the principal amount of each bond so redeemed , ac- crued interest -thereon to the redemption date and a premium of three per cent (3%) of the principal amount so redeemed . Notice of redemption shall be given by the Treasurer of the Town, in its name by publication of such notice at least once not more than 60 nor less than 30 days prior to the redemption date in a newspaper printed in the English language and of general circulation in the Town, and a copy of such novice shall be sent by registered mail at least ,.30 ,days prior to the redemption date to the Purchasde'. '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 such notice shall further state that on such redemption date there will become and will be due and payable upon each bond so to be redeemed at the Paying Agent designated by name , the principal amount thereof , accrued interest thereon to 'the redemption date , and the stipulated premium, and that from and after such date interest will cease to accrue. Notice having been given in the manner hereinabove 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 the Paying Agent, together with all appurtenant "A" coupons maturing subsequent to -the redemption date, the Town will pay the bond or bonds so called for redemption. SecL;iun 7. Negotiability. Subject to the provisions specifically made or necessarily implied herein , the bonds and coupons appertaining thereto shall be fully negotiable and shall �1 -7- i have all the qualities of negotiable paper, and .the holder or holders thereof shall possess all rights enjoyed by the holders of negotiable instruments under the provision of the Uniform Commercial Code. Section 8. Exeuction. The bonds shall be authenti- cated by thu facsimile signature of the Mayor, shall be signed. manually by the Town Treasurer , shall be attested with the facsimile signature of the Town Clerk and shall be impressed with a facsimile of the corporate seal of the Town. The in- terest accruing to maturity on said bonds shall be evidenced by interest coupons thereto attached authenticated by the facsimile signature of the Town Treasurer , which officer by the authentica- tion of said bonds shall adopt as and for his signature the facsimile thereof appearing on said coupons. Prior to the execution of any bond , pursuant to Sections 5-9-1 to 5-9-5 , in- clusive, New Mexico Statutes Annotated, 1953 Compilation , the Mayor , the Town Treasurer and the Town Clerk shall each forthwith file with the Secretary of State of the State of New Mexico his manual signature certified by him under oath; provided that such filing shall not be necessary for any officer where any previous such filing may have legal application to the 5-1-73 Bonds. Section 9. Special Obligations. All of the bonds here- in authorized, together with the interest accruing thereon, shall be payable and collectible solely out of the net income to be derived from the operation of the system, the income of which is so pledged, and the holder -or holders thereof may not look to any general or other fund for the payment of principal and interest on such obligations,, except the designated special funds pledged therefor; and the bonds shall not constitute an indebtedness or a debt within the meaning of any constitutional or statutory pro- visions or limitation, or shall they be considered or held to be general obligations of the Town. Section 10. Bond and Coupon Form. The bonds and the coupons thereto attached shall be in substantially the following form: -8- FILMED DOCUMENTS ARE THE BEST AVAILABLE COPIES. M (Form of Bond) UNITED STATES OF AMERICA STATE OF NETT MEXICO COUNTY OF TAOSS TONN OF TAOS JOINT WATER AND 'SEWER EXTENSION REVENUE BOND SERIES MAY 11 1973 - NO. $5 , 000 . 00 The Town of Taos (herein sometimes designated as the "Town") , in the County to 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 FIVE THOUSAND DOLLARS and to pay solely from said special funds interest hereon at the rate of per cent ( %) per annum, evidenced from date until maturity by one set of coupons desig- nated "A" plus additional interest from the first day of Play , 1973 until *the first day of November, 1977 (or) the maturity date hereof* :at the rate of two and seventeen-hundredths per cent (2 .17%) per annum as evidenced by a second set of coupons designated "B" which are presentable for payment separately and apart from other coupons , , all of saic interest being payable on the first day of. November , •1973 , and semiannually thereafter on the first day of May and November in each year , upon presentation and surrender of the annexed coupons as they severally become due . If upon pre- sentation at maturity, payment of this bond is not made as herein provided , interest shall continue at the "A" rate specified in this bond until the principal hereof is paid in full . Both prin- cipal and interest are payable in lawful money of the United States of America without deduction for exchange or collection charges at the Centinel Bank of Taos , Taos , New Mexico. Bonds of the series of which this bond is a part, maturing on and after November 1 , 1983 , are subject to redemp- tion prior to maturity in whole or in part and in inverse numerical order at the option of the Town on November 1 , 1982 , or on any interest payment date thereafter , for the principal amount thereof , accrued interest thereon to the redemption date and a premium of three per cent (3%) of the principal amount of each bond so re- deemed. Redemption shall be made upon not less than 30 days prior i -9- published and mailed notice in the manner and upon the conditions provided in the ordinance authorizing the issuance of this bond. This bond does not constitute an indebtedness of the Town within the meaning of any constitutional or statutory provision or limitation , shall not be considered or held to be a general obligation of the Town , and is payable and collectible solely out of the net income derived from the operation of the municipal joint water and sewer system (herein sometimes desig- nated as the "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 interest 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. , adopted and approved the •'s day of ")),). . , 1973 , two special funds identified as the "Town of Taos Joint Water and Sewer Extension Revenue Bonds, Series May 1 , 1973 , Interest and Bond Retirement Fund" , and as the "Town of Taos Joint i-rater and Sewer Extension Revenue Bonds, Series May 1 , 1973 , Reserve Fund" , into which the Town covenants to pay, respectively, from the revenues derived from the operation of its municipal joint water and sewer system, after provision only for all necessary and reasonable expenses of the operation and maintenance of said system, and after and subject to the payments required by Ordinance No . 528 , adopted and approved on July 1 , 1963 , 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 speci-- fied reserve for such purpose . For a description of said funds and the nature and extent of the security afforded 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 net revenues of the system; and said bonds , subject to pay- ment of all reasonable and necessary expenses of the operation and maintenance of the system , constitute an irrevocable and first lien (but not necessarily an exclusively first lien) upon the revenues of the system, subject and junior to the lien thereon of the outstanding "Town of Taos Joint Water and Sewer Refunding ,Revenue Bonds , Series July 1 , 1963" . Bonds in addition to the series of which this is one , subject to designated conditions , may be issued and made payable from said net revenues of the system and having a lien thereon inferior and junior to the lien , -10- or having a lien thereon on a parity with the lien, of the bonds+ of the series of which this is one , in accordance with .Y the provisions of said ordinance authorizing this issue. The Town 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 of the coven- ants of said ordinance , including , without limiting the gener- ality -of the foregoing , its covenant against the sale or mortgage of said system or any part thereof unless provision shall be made for the payment of the principal of and the in- terest on the bonds of the series of which this is one , and in- cluding its covenant that it will fix, maintain and collect rates for services rendered by said system sufficient to produce revenues or earnings sufficient to pay the annual operation and maintenance expenses and one hundred fifty per cent (150%) of both the prin- cipal of and interest on the bonds and any other obligations y payable annually from the revenues 6f said system (excluding the reserves therefor) . This bond is one of a series of 40 bonds of like tenor and date, except as to number, maturity, interest rate and prior redemption option , authorized for the purpose of paying the costs of extending, enlarging, bettering and otherwise improving the joint water and Sewer system of the Town. This bond is subject to the conditions , and every holder hereof ,by pLccepting the sai,,e 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 circum- stances 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 contraty; (c) the principal of and the interest on this bond shall be paid , and this. bond and each of the coupons appertaining hereto are transferable , free from and without regard to any equities between the obligor and the original or any intermediate holder hereof , or any set- offs or crossclaims; and (d) the surrender to the obligor or any agent of the obligor of this bond and of each of the coupons shall be a good discharge to the obligor for the same. 1 1 -11- FILMED DOCUMENTS ARE THE BEST AVAILABLE COPIES It is further certified , recited and warranted that all the requirements of law have been fully compled with by the proper officers of the Town in the issuance of this bond; and that it is issued pursuant to and in strict conformity with the Constitution and laws of the State of New Mexico, and particularly under the terms and provisions of Sections 14-30-1 through 14-30-7 , New Mexico Statutes Annotated , 1953 Compilation, as amended, and all laws thereunto enabling and supplemental thereto. IN WITNESS WHEREOF, the Town of Taos has caused this bond to be executed with the facsimile signature of its Mayor, to be manually countersigned by its Treasurer , to be attested with the facsimile signature of its Clerk, and to bear a fac- simile of the corporate seal of the Town, and has caused the coupons hereto annexed to be authenticated with the facsimile signature of said Treasurer, all as of the first day of May, 1973 . TOWN OF TAOS By (Facsimile Signature) Mayor Countersigned: (Manual Signature) Town Treasurer (FACSIMILE SEAL) Attest: (Facsimile Signature) Town Clerk (End of Form of Bond) * Insert "the maturity date hereof" in bonds Nos . 1 through 3 , and "the first day of November , 1977" in all bonds maturing on and after November 1 , 1978 (i .e. Nos . 4 through 40) -12- FILMED DOCUMENTS ARE THE BEST AVAILABLE COPIES. (Form of Coupon) ' Coupon , No . * $ May On the first day of November, 19 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, unless prior to the due date of this coupon, the bond to which this coupon is attached, if callable prior to *such date has been previously called for prior redemption, without deduction for exchange or collection charges , at the Centinel Bank of Taos, Taos , New Mexico , the amount herein designated solely from and secured by a pledge of two funds created from' the net revenues derived from the operation of the joint water and sewer system ,y , . of said Town, being the interest thin due on its Town of Taos Joint Water and Sewer Extension Revenue Bond, Series May 1, 1973 , and bearing Bond No. (Facsimile Signature) Town Treasurer r Y 6 Designate "A" or "B" , whichever is appropriate. (End of Coupon Form) ..i . y 1 -13- Section 11 . Period of Project 's Usefulness. It is hereby determined and recited that the period of usefulness of the fa-i.lities for the project to be acquired with the proceeds of the Bonds is not less than 16 years from the date of said Bonds. Section 12 . Bond Execution and Delivery. The Mayor, Town Treasurer and Town Clerk are hereby authorized and directed to prepare and execute said Bonds as herein provided . When said Bonds have been duly executed , the Town Treasurer shall deliver them to the lawful Purchaser thereof on receipt of the agreed purchase price. Section 13. Disposition of Bond Proceeds . A. Accrued Interest and Premium. 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 5-1-73 Bond Fund (set out in Section 16 , paragraph B) to apply on the payment of interest next due on the bonds payable therefrom. B. Acquisition Fund . Except as hereinabove otherwise provided, the proceeds derived from the sale of the bonds shall be deposited promptly upon the receipt thereof in an Insured Bank, which account shall be known as the "Town of Taos Joint Water and Sewer Extension Revenue Bonds , Series May 1 , 1973 , Extension, Enlargements and Improvements Acquisition Fund" , herein sometimes designated as the "5-1-73 Acquisition Funs: " . The Moneys in the 5-1-73 Adquisition Fund shall be used solely for the project except that after the extensions , enlargements , betterments and other improvements for the system to be acquired as herein provided , all money, if any, remaining in the 5-1-73 Acquisition Fund shall be deposited into the 5-1-73 Reserve Fund . Moneys shall be withdrawn from the 5-1-73 Acquisition Fund for the Project only upon warrants or checks drawn by the Mayor of said Town and its Clerk; provided that before such mone,*rs are withdrawn for any construction work in connection with the Project, the Consulting Engineer first shall file with the Town Clerk orrit- uen approval certifying that the amount to be Laid is due and ow- inq for construction work on the Project . C. Purchasers 'Not Responsible. That the Purchasers Hof the bonds , however, shall in no manner be responsible for the application or disposal by the Town or by its officers of the funds derived from the sale thereof . Section 14 . Fiscal Year . That for the purpose of this ordinance the system shall be operated upon a fiscal year -14- i I � . basis, commencing on the 1st day of July in each year and end- ing oh the 30th day of June of the next succeeding year. .Y Section 15. Income Fund . So long as any of the i bonds herein authorized shall be outstanding, either as to principal or interest, or both, the entire gross income and revenues of the system shall continue to be set aside and de- posited in an Insured Bank into the special fund created ' by Section 14 of Ord. No. 528 , and known as the "Town of Taos Joint Water and Sewer System Gross Income Fund", herein sometimes desig- nated as the "Income Fund " . Section 16 . Administration of Income Fund. So long as any of the bonds herein authorized shall be outstanding , either as to principal or interest , or both, the following pay- ments shall be made from the :income Fund : A. Operation and Maintenance Expenses. Firstly, as a first charge thereon, there shall, continue to be set aside from time to time in the "Town of 'Taos Joint Water and Sewer Operation and Maintenance Fund" , (established by Section 15A of Ord. No . 528) herein sometimes referred to as the "Operation and Maintenance Fund" , moneys in the Income Fund sufficient to pay operation and maintenance expenses as they become due and payable , and thereupon they shall be promptly paid. Any surplus remain- ing at the end oaf the fiscal year and not needed for operation and maintenance purposes , shall be transferred to the Income Fund and be u$ed ;for the purposes thereof, as herein provided. B. Bond and Reserve Funds for 1963 Bonds. Secondly, and subject to the aforesaid provisions , from any moneys remaining in the Income Fund , i .e. from the net income of the system, there shall continue to be credited to the bond and re- serve funds for the 1963 Bonds the monthly payments required by paragraphs B and C of Section 15 of Ord. No . 528 , (relating' to the bond and reserve funds for the 1963 Bonds) as qualified and supplemented by the remainder of said Section 15 . C . Bond and Reserve Funds for 5-1-73 Bonds . (1 ) 5-1-73 Bond Fund. Thirdly, but sub- ject and junior to the foregoing monthly payments, there shall be credited to an account hereby created and to be known as the "Town of Taos Joint Water and Sewer Extepsion Revenue Bonds , Series May 1 , 1973 , Interest and Bond Retirement Fund" , (herein sometimes 1 -15- FILMED DOCUMENTS ARE THE BEST AVAILABLE COPIES. referred to as the "5-1-73 Bond Fund" or as the "Bond Fund") , the following : (a) Monthly, commencing on the 1st day of the month immediately succeeding the delivery of any of the 5-1-73 Bonds an amount in equal monthly installments neces- sary , together with any mon;:ys therein and available therefor , to pay the first matur- ing installment of interest on the 5-1-73 Bonds then outstanding , and monthly there- after commencing on said interest payment date o of the amount necessary to � pay the next maturing installment of interest on the outstanding 5-1-73 Bonds . (b) Monthly, commencing on the first day of November , 1974 , an amount in equal monthly installments necessary, to- gether with any moneys therein and available therefor, to pay the first maturing install- ment of principal of the outstanding 5-1-73 Bonds , and monthly thereafter commencing on said principal payment date one-twelfth of the amount necessary to pay the net maturing ]) installment of principal on the 5-1-73 Bonds . (2) 5-1-73 Reserve Fund . Fourthly, concurrent- ly with the monthly payments heretofore required by this paragraph C and subject and junior to the monthly payments required to be paid by paragraphs A and B of this Section, and except as provided in praraaraphs D and E of this sec- tion, and in addition to the moneys required to be de- posited in the 5-1-73 Reserve Fund by Section 13B here- of, from any moneys remaining in the Income Fund there shall be set aside and credited monthly at least $667 . 00 per month into a fund hereby created and to be known as the "Town of Taos Joint Water and Sewer Extension Bonds , Series May 1 , 1973 , Reserve Fund" (herein sometimes desig- nated as the "5-1-73 Reserve Fund" or "Reserve Fund") un- til a reserve has been accumulated in an amount equal to not less than $40 ,000 (herein sometimes designated as the "Minimum 5-1-73 Reserve " or "Minimum Reserve" ) . Such pay- ments shall commence on the 1st day of the month succeed- ing the delivery of any of the 5-1-73 Bonds . After accu- mulation of the Minimum Reserve, there shall be deposited -16- FILMED DOCUMENTS ARE THE BEST AVAILABLE COPIES. monthly from any moneys remaining in the Income Fund , into the Reserve Fund such amount or amounts as are necessary to maintain the Reserve Fund as a continu- ing reserve in an amount not less than the then Minimum 5-1-73 Reserve to meet possible deficiencies in the Bond Fund. No payment need be made into the Reserve Fund so long as the moneys therein shall equal not less than the Minimum Reserve. The moneys in the Reserve Fund shall be accumulated and maintained as a continuing reserve to be used, except as herein- after provided in paragraphs D and E of this section , only to prevent deficiencies in the payment of the principal of and interest on the bonds hereby autho- rized resulting from the failure to deposit into the Bond Fund sufficient funds to pay said principal and interest as the same accrue. D. Termination Upon Deposits to Maturity. No payment need be made into the Bond Fund , the Reserve Fund , or both, if the amount in the Bond Fund and the amount in the Reserve Fund total a sum at least equal to the entire amount of the out- standing bonds herein authorized , both as to principal and in- terest to their respective maturities , and both accrued and not accrued, in which case moneys in said two funds in an amount at least equal to such principal and interest requirements shall be used solely to pay such as the same accrue , and any moneys in excess thereof in said two funds and any other moneys derived from the operation of the system may be used in any lawful man- ner determined by the Governing Body . E. Defraying Delinquencies in 5-1-73 Bond and Reserve Funds. If , in any month, the Town shall , for any reason , fail to pay into the Bond Fund the full amount above stipulated from the net income of the system, then an amount shall be paid into said Bond Fund in such month from the Reserve Fund equal j the dif- ference between that paid from said net income and the full amount so stipulated. The money so used shall be replaced in the Reserve Fund from the first revenues thereafter received from the operation of the system not required to be otherwise applied . If , in any month , the Town shall , for any reason, fail to pay in- to the Reserve Fund the full amount above stipulated from the net income of said system, the difference between the amount paid and rthe amount so stipulated shall in a like manner be paid therein from the first revenues thereafter received from the operation of the system not required to be otherwise applied . The moneys in the Bond Fund and the Reserve Fund shall be used solely and only -17- r for the purpose of paying the principal of and the interest on M the bonds issued hereunder; provided , however, that any moneys at the time in excess of the applicable Minimum Reserve in the Reserve Fund may be withdrawn therefrom and used as herein provided for :.he redemption of bonds hereby authorized as they become due or on any redemption date; and provided that anv moneys in the Bond Fund and the Reserve Fund in excess of accrued and unaccrued principal and interest requirements to the respective maturities of the outstanding bonds may be used as hereinabove provided in paragraph D of this Section . F. Payment for Additional Obligations . Fourthly, from any balance remaining in the Income Fund after making the payments hereinabove provided , there shall be paid the interest on and the principal of additional bonds or other obligations, if any, hereafter authorized to be issued and payable from the revenues of the system, including .reasonable reserved therefor , as the same accrue; provided, that the lien of such additional bonds or other obligations on the net income and revenues of the system and the pledge thereof for the payment of such addi- tion obligations shall be on a parity with, or subordinate to, the lien and pledge of the bonds herein authorized, as herein- after provided . � In the event such additional bonds or other obligations be on a parity with the bonds herein authorized , the payment of interest on, principal of and reserve for such additional bonds or other obligations shall be made concurrently with the payments required by paragraph C of this Section. G. Use of Surplus Revenues . After making the payments hereinabove required to be made by paragraphs A to F , both inclu- sive, of this Section 16 of this ordinance , the remaining income and revenues derived from the operation of the system, if any, may be applied to any other purpose or purposes authorized by the Constitution and. the laws of the State , as the Governing Body may direct. Section 17 . General Administration of Funds. The funds and accounts designated in Sections 13 , 15 and 16 of this ordinance shall be administered as follows (subject to any pro- visions of Section 16 of Ord . No . 528 applicable to the Income Fund and Operation and Maintenance Fund for so long as any of the 1963 Bonds are outstanding and unpaid) : A. Investment of Money. Any moneys in any fund designated in Sections 13 , 15 and 16 niay be invested as provided -18- by law. The obligations so purchased as an investment of moneys in said fund shall be deemed at all times to be 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 sale on the prevailing market any obligations so purchased as an invest- ment of moneys in the fund whenever it shall be necessary to do so in order to provide moneys to meet any payment or transfer from such fund . The Town and the Board covenant to the Purchaser and associates and the holder of the Bonds from time to time, that the Town will make no use of the proceeds of the Bonds , if such use had been reasonably expected on the date of issue of the Bonds , would have caused the Bonds or any other bonds of the Town to be arbitrage bonds; and the Town and Board hereby covenant and agree to comply with the requirements of Section 103 (d) of the Internal Revenue Code and proposed Treasury Regulation Sections 1 .103-13 and 1 .103-14 (as hereafter amended and supplemented from time to time) throughout the term of the Bonds. B. Deposits of Funds. The moneys and investments comprising each of the funds and accounts hereinabove designated in Sections 13 , 15 and 16 of this ordinance shall be maintained and kept separate from all other funds and accounts in an Insured Bank or Insured Banks. The amounts prescribed shall be paid to the appropriate funds monthly. Each monthly payment shall he made into the proper bank account and credited to the proper fund on the first day of each month; provided that when the first day of any month shall be a Sunday or a legal holiday, then such pay- ment shall be made on the next preceding secular day. Nothing herein shall prevent the establishment of one such bank account or more, for al]_ of the funds and accounts in said Sections 13 , 15 and 16 of this ordinance . Section 18 . First Lien Bonds Subject to 1963 Bonds . The 5-1-73 Bonds , subject to the payment of all reasonable and necessary expenses of the operation and maintenance of the system, constitute an irrevocable and first lien (but not necessarily an exclusively first lien) upon the revenues derived from the opera- tion of the system, subject and junior to the lien thereon of (the 1963 Bonds . .Section 19. Equality of BonO?s . That the Bonds autho- rized to be issued hereunder and from time to time outstanding shall not be entitled to any priority one over the other in the -19- i application of the revenues of the system, regardless of the time Or times f their issuance , 't o eir s ance i being the intention of the •M Governing Body that there shall be no priority among the bonds ! regardless of the fact that they may be actually issued and delivered at different times. Section 20 . Additional Bonds 'or Other obligations . A. Limitations upon Issuance of Parity Obligations . That nothing in this ordinance contained shall be construed in such a manner as to prevent the issuance by the Town of additional bonds or other obligations payable from the income or any revenues derived from the operation of the system and constituting a lien upon said revenues on a parity with, but not prior nor superior to , the lien of the 5-1-73 Bonds herein autho- rized, nor to prevent the issuance of bonds or other obligations refunding all or a part of the bonds herein authorized; provided, however , that before any such additional parity bonds or other parity obligations are authorized or actually issued , including any parity refunding bonds or other parity refunding obligations (but excluding any obligations refunding other than subordinate bonds or other subordinat,_ Qijiiyations , as permitted in para- graph B of Section 21 hereof : (1) The Town is then current in the accu- mulation ofIall amounts which are required to have then been accumulated by paragraph C of Section 16 of this ordinance . (2) The net revenues (net revenues being defined herein as revenues or gross revenues after deducting necessary and reasonable operation and maintenance expenses) derived from the operation of the system for the one fs.scal year immediately pre- ceding the date, of the issuance of such additional parity obligations (including the estimated increase in revenues for such • fiscal year as provided in sub- paragraph (3) of this paragraph A) shall have been sufficient to pay an amount representing one hundred thirty per cent (130% ) of the combined average annual principal and interest requirements of the outstanding revenue bonds and other obligations of the Town payable from and constituting a lien upon the revenues of the system and the bond or other obligations proposed to be issued (excluding any reserves therefor) . As used herein "combined average annual principal and interest requirements" shall be the total principal t 1 '� -2 0- FILMED DOCUMENTS ARE THE BEST AVAILABLE COPIES. and interest coming due on all then outstanding and proposed parity lien obligations during the period extending from the date of the proposed parity lien obligations to the final principal payment date of the then outstanding parity lien obligations or of the proposed parity lien obligations , whichever is longer, divided by the number of years (including any fraction thereof) computed from the date of the proposed parity lien obligations to the last princi- pal payment date of the then outstanding parity lien obligations or of the proposed parity lien obligations , whichever is longer. (3) For purposes of the test set forth above in subparagraph (2) , if a schedule of rate in- creases becomes effective during the preceding fiscal year , there may be added to the actual revenues for said preceding fiscal year an estimated amount equal to the difference between the gross revenues actually received by the Town and the gross revenues which the Town probably would have received during such preced- ing fiscal year if the last of any such schedule of rate increases had been in effect during said entire preceding fiscal year , or, if such a schedule of rate increases becomes effective between the end of the preceding fiscal year and the date of issuance of the parity lien obligations , there may be added to the actual revenues for such preceding fiscal year an amount equal to the estimated increase in revenues which would have been realized during such fiscal year had such rate increase been in effect during all of such preceding fiscal year . Such estimate shall be made in writing by a Consulting Engineer , and shall be conclusive in determining the right of the Town to authorize , issue , sell and deliver said additional bonds or other additional obligations on a parity with the bonds herein authorized . B. Certification of Revenues . A written certification by an independent Accountant that said revenues are sufficient Ito pay said amounts, shall be conclusively presumed to be accurate in determining the right of the Town to authorize, issue , sell and deliver said additional bonds or other additional obligations _21- on a parity with the bonds herein authorized. The Independent Accountant in making such written certification where a schedule .Y of rate increases has become effective during or after such preced- ing fiscal year may rely on the Consulting Engineer ' s written estimate as provided in subparagraph (3) of paragraph A of this section. C. Subordinate Obligations Permitted . Nothing herein contained , except as herein otherwise specifically stated , shall be construed so as to prevent the Town from issuing bonds or other obligations payable from the revenues of the system and having a lien thereon subordinate , inferior and junior to the lien of the bonds authorized to be issued by this ordinance . D. Superior Obligations Prohibited. Nothing herein contained shall be construed so as to permit the Town to issue bonds or other obligations payable from the revenues of the system and having a lien thereon prior and superior to the 'bonds herein- authorized to be issued. Section 21. Refunding Bonds . The provisions of Section 20 hereof are subject to the exceptions : A. Privilege of Issuing Refunding Obligations. If at any time after the 5-1-73 Bonds, or any part thereof , shall have been issued andremain outstanding, the Board shall find it desirable to refund any outstanding bonds or other outstanding obligations payable from all or any part of the revenues of the system, said }bond's or other obligations , or any part thereof, may be refunded (but only with the consent of the holder or holders thereof, unless the bonds or other obligations , at the time of their required surrender for payment , shall then mature , or shall then be callable for prior redemption at the Town ' s option) , re- gardles:; of whether the priority of the lien for the payment of the refunding obligations on the r.evenues of the system is changed (except as provided in paragraph D of Section 20 hereof and in paragraph B and C of this - Section) . B. Limitations Upon Issuance of Parity Refunding Obligations. No refunding bonds or other refunding obligations payable from any revenues of the system shall be issued on a parity with the bonds herein authorized; unless : (1) The lien on any revenues of the system of the outstanding obligations so refunded is on a parity with the lien thereon of the Bonds herein authorized; or -22- (2) The refunding bonds or other re- funding obligations are issued in compliance with paragraph A of Section 20 hereof. C. Refunding Part of an Issue. The refunding bonds or other refunding obligations so issued shall enjoy complete equality of lien with the portion of any bonds or other obliga- tions of the same issue which is not refunded, if any there be; and the holder or holders of such refunding bonds or such other refunding obligations shall be subrogated to all of the rights and privileges enjoyed by the holder or holders of the bonds or other obligations of the same issue refunded thereby. D . Limitations Upon Issuance of Any Refunding Obligations . Any refunding bonds or other refunding obligations payable from any revenues of the system shall be issued with such details as the Board may by ordinance provide, subject to the inclusion of any such rights and privileges designated in paragraph C of this Section, but without any impairment of any contractual obligation imposed upon the Town by any proceedings authorizing the issuance of any unrefunded portion of such outstanding obligations of any one or more issues (including but not necessarily limited to the issue herein authorized) . if only a part of the outstanding bonds and any other outstanding obligations of any issue or issues pay- able from all or any part of the revenues of the system is refund- ed , then such obligations may not be refunded without the consent of the holder or holders of the unrefunded portion of such obligations; unless : (1) The refunding bonds or other refund- ing obligations do not increase any aggregate annual principal and interest requirements evidenced by such ' refunding obligations and by the outstanding obliga- tions not refunded on and prior to the last maturity date of such refunded obligations; or (2) The refunding bonds or other :•efund- ing obJ41 are issued in compliance with para- graph A of Section 20 hereof; or (3) The lien on revenues of the system for the payment of ,the refunding obligations is subordinate to each such liem for the payment of any obligations not refunded . Section 22 . Protective Covenants. The Town hereby additionally covenants and agrees with each and every holder of the bonds issued hereunder that the protective covenants in -23- paragraphs B to T, inclusive, Section 22 of Ord. No. 528 shall ' inure to the benefit of the holder or holders from .Y time to time of the bonds herein authorized; and the provisions ' of that section are hereby adopted by reference thereto as if set forth verbatim herein in full , provided however : A. Any reference in said Section 22 to the bonds authorized in Ord. No. 528 and the funds therein described shall be construed herein as referring to the 5-1-73 Bonds herein authorized and the funds herein described. B. Any reference in said Section 22 of Sections 15 , 19 , 20 and 22 shall be construed as referring to 'Sections 16 , 19 , 21 and 22 hereof , respectively. C, The proceeds of the 5-1-73 Bonds shall be used for the Project and not otherwise. D. The reference to Bond Fund and Reserve Fund in � • said Section 22 shall mean the 5-1-'73 Bond Fund and the 5-1-73 Reserve Fund. E. The reference to "Peters , Writer & Christensen, Snc ." in said Section 22 shall mean Robert E. Schweser Company, Omaha, Nebraska and the reference to "Paying Agent" shall mean the "Paying Agent" as herein defined. F. The Town with the proceeds of the 5-1-73 • Bonds , with- out delay will proceed to acquire the project . G•. 'the` reference in said Section 22 to "Section 14-39-3 to Section 14-39-6 , New Mexico Statutes Annotated , 1953 Compilation" shall be to Sections 14 -22-6 and 14-35-1 through 14-35-5 of such Compilation. H. The Town will require each person, firm or corpo- ration with whom it may contract for labor or matierials to fur- nish a performance and payment bond in the full amount of any contract relating to the Project . Such bonds shall be satis- factory to the Town. T . The Town will maintain its corporate identity and existence so long as any of the Bonds remain outstanding , unless another political subdivision by operation of law suc- ceeds to the liabilities and rights of the Town, without adverse- ly affecting to any substantial degree the privileges and rights of any holder of the Bonds . Section 23. Events of Default. Each of the events delineated in Section 23 of Ord. No. 528 is hereby declared to '� -24- be an "event of default" for the purposes of this ordinance and the bonds herein authorized. Section 24 . Remedies for and Duties Upon Defaults. Remedies for any of the events of default and the duties arising thereupon shall be as provided in Sections 24 and 25 of Ord. No . 528 , and the provisions of said two sections are hereby adopted by reference thereto as if set forth verbatim herein in full , and such provisions shall be in full force and effect as if they were so set forth verbatim herein in full; provided , however, that any reference therein to "Section 23" shall be construed as referring to Section 23 hereof. Section 25 . Prior Charges Upon Lower Rates and Defeasance . The provisions of Sections 26 and 27 of Ord. No . 528 are by- reference thereto hereby adopted and incorporated as part of this ordinance and shall be considered to refer to this ordinance and the 5-1-73 Bonds authorized herein. Section 26 . Delegated Powers . The officers of the Town be, and they hereby are , authorized and directed to take all action necessary or appropriate to effectuate the provisons of this ordinance, including , without limiting the generality of the foregoing , the printing of said bonds with the legal opinion of bond counsel on all or a portion of the bonds , and the execu- tion of such certificates as may be reasonably required by the Purchaser. Section 27 . Amend ment. That this ordinance may be amended or supplemented by ordinance adopted by the Governing Body in accordance with the laws of the State of New Plexico , without receipt by the Town of any additional consideration but with the written consent of the holders of seventy-five per cent (75%) of the Bonds authorized by this ordinance and outstanding at the time of the adoption of such amendatory or supplemental ordinance ; provided, however , that no such ordinance s;1all have the effect of permitting : (.i.) An extension of the maturity of any Bond authorized by this ordinance; or (ii) A reduction in the principal amount of any Bond , the rate of interest thereon, or the prior redemption premium payable thereof; or (iii) The creation of a lien upon or pledge of Pledged Revenues ranking prior to the lien or pledge created by this ordinance; or -25- FILMED DOCUMENTS ARE THE BEST AVAILABLE COPIES. (iv) A reduction of the principal amount of Bonds required for consent to such amendatory or supplemental ordinance ; or (v) The establishment of priorities, as between Bonds issued and outstanding under the pro- visions of this ordinance ; or (vi) The modification of or otherwise affecting the rights of the holders of less than all of the Bonds then outstanding. Section 28 . Ordinance Irrepealable. That after any of the 5-1-73 Bonds herein authorized are issued , this ordinance shall be and remain irrepealable until the Bonds and interest thereon shall be fully paid , cancelled and discharged as herein provided. Section 29 . Severability Clause. That if any sec- tion 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 1-rovi- sion shall not affect any of the remaining provisions of this ordinance . Section 30. Repealer Clause. That all bylaws , orders , --esolutions and ordinanaces , or parts thereof , inconsistent here- with are hereby repealed to the extent only of such inconsistency. This repealer shall not be construed to revive any bylaw, order , resolution or ordinance , or part thereof , heretofore repealed or amended. Section 31 . Emergency Clause and Effective Date . That 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 the Town is in great need of said Project , this ordinance is hereby declared to be an emergency measure on the ground of urgent. pub1ic need , and therefore , immediately upon its adoption by at least three-fourths of all of the fully autho- rized members of the entire Governing Body and upon its final final passage, this ordinance shall be recorded in the book of ordinances of the Town kept for that purpose , authenticated by the signatures of the Mayor and Town Clerk , and the title and general summary of the subject matters contained in this ordi- nance (set out in ,Section 32 below) shall be published in the Taos News , a newspaper which maintains an office in and is of general circulation in the Town, in accordance with law, and y -26- FILMED DOCUMENTS ARE THE BEST AVAILABLE COPIES said ordinance shall be in full force and effect five days after such publication. Section 32 General Summary for Publication. That pursuant to Section 14-16-4 , NMSA, as amended, the title of , and a general summary of the subject matter contained in this ordi- nance shall be published in substantially the following form : -27- ORDINANCE NO. S AN ORDINANCE PROVIDING THAT THE WATER-WORKS SYSTEM AND SEWER SYSTEM OF THE TOWN OF TAOS, NEW MEXICO, SHALL CONTINUE TO CONSTITUTE A JOINT PUBLIC UTILITY-AND SHALL BE OPERATED AND MAINTAINED AS SUCH; PROVIDING FOR THE REFINANCING, REFUNDING AND PAYING OF THE TOWN'S OUTSTANDING BONDS , PAYABLE OUT OF REVENUES TO BE DERIVED FROM THE OPERATION OF ALL OR A PORTION OF THE JOINT WATER AND SEWER SYSTEM, OUTSTANDING IN THE PRINCIPAL AMOUNT OF $405,000.00 ; AUTHORIZING THE REDEMPTION IN FULL OF SAID OUTSTANDING BONDS IN SAID PRINCI- PAL AMOUNT AT THEIR RESPECTIVE MATURITIES OR ON A DESIsNATED PRIOR REDEMPTION DATE, AND THE DEPOSIT OF FUNDS AND SECURITIES TO EFFECT SAID REDEMPTION; DECLARING THE NECESSITY FOR ISSUING JOINT WATER AND SEWER REFUNDING REVENUE BONDS PAYABLE SOLELY OUT OF THE NET INCOME TO BE DERIVED FROM 'THE OPERATION OF SUCH JOINT MUNICI- PAL UTILITY ; AUTHORIZING THE ISSUANCE AND SALE OF SUCH REVENUE BONDS IN THE AGGREGATE PRINCIPAL AMOUNT OF $405 ,000 .00 TO PAY THE COST OF RE- FUNDING SAID OUTSTANDING BONDS ; PROVIDING THE FORM, TERMS AND CONDITIONS OF SUCH REFUNDING REVENUE BONDS ,, THE MANNER OF EXECUTION THEREOF , THE METHOD OF PAYING SUCH, AND THE SECURITY THEREFOR ; PROVIDING FOR THE DISPOSITION OF THE INCOME DERIVED FROM THE OPERATION OF SAID JOINT UTILITY ; PRESCRIBING OTHER DETAILS CONCERNING THE REFUNDING REVENUE BONDS , SAID JOINT UTILITY, INCLUDING BUT NOT LIMITED TO COVENANTS AND AGREE- MENTS I.N CONNECTION THEREWITH AND WITH FUTURE FINANCING THEREFOR; RATIFYING ACTION PREVIOUSLY TAKEN IN CONNECTION THEREWITH ;--REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; AND DECLARING AN EMERGENCY WHEREAS , the Town of Taos (herein sometimes desig- nated as the "Town") , in the County of Taos and State of New Mexico, is a legally and regularly created, established , organized and existing municipal corporation under the laws of the State of New Mexico, its full corporate name being "Town of Taos , " that the Town has existed as such since the 7th day of May , 1934 ; and WHEREAS , the Town now owns a water-works system (herein sometimes designated as tha. "water facilities") and a sanitary sewer system (herein sometimes designated as the 2 "sewer facilities") , which have heretofore been consolidated into a joint public utility designated as the municipal joint water and sewer system (herein sometimes designated as the "system" or the "joint system" or the "joint utility") ; and WHEREAS , pursuant to proceedings duly had and taken, the sole outstanding bonds payable from any income derived from the operation of the System, or any part thereof, and for the payment of which such income is pledged, are the bonds remaining outstanding of the following issues ; 1. The Village of Taos Water and Sewer Revenue Bonds , dated November 1, 1949 , (herein sometimes designated as the "1949 bonds") , authorized by Ordi- nance No. 201, duly adopted and approved on the 2nd day of December, 1949, as amended by Ordinance No. 517 , passed, adopted , signed, and approved on the 5th day of July, 1961, which bonds were issued in the original principal amount of $330,000,00 , bearing date as of the rirst day of November, 1949, consisting of 330 bonds numbered consecutively in regular numerical order from 1 to 330 , both inclusive , in the denomi- nation of $1,000. 00 each, payable solely from the net revenues derived from the operation of the system, and constituting a first lien on said net revenues , ma- turing serially on the first day of November in pro- gressively larger amounts of principal in each of the years 1952 to 1979, both inclusive , interest being payable semiannually on the first days of May and November in each year, both principal and interest being payable at the Mercantile National Bank at Dallas, Texas , bonds numbered 154 to 330 , both in- clusive, maturing on and after the first day of November, 1960, being subject to prior redemption in inverse numerical order, at the option of the Town, on the first day of November, 1959, or on any interest payment date thereafter prior to maturity , and if redeemed on or after November, 1963, at a price equal FILMED DOCUMENTS ARE THE BEST AVAILABLE COPIES. to the principal amount thereof, and accrued interest thereon to the redemption date, of which issue there are now outstanding and unpaid bonds in the principal amount of $250,000 .00, including $10,000 .00 of bonds becoming due on the first day of November, 1963, consisting of bonds being numbered and maturing serially on the first day of November in each of the designated years and amounts as follows : Bond Numbers Years Priin_cci2a_1 (All Inclu--sl7e) aM turf maturing 81 - 90 1963 $10,000 .00 91 - 101 1964 112000 .00 102 - 112 1965 112000 .00 113 - 124 1966 122000 .00 125 - 136 1967 12,000 . 00 137 - 149 1968 13,000 .00 150 - 162 1969 13,000 .00 163 - 176 1970 142000 .00 177 - 190 1971 14,000 .00 191 - 205 1972 15,000 .00 206 - 221 1973 162000 .00 222 - 237 1974 16,000 . 00 238 - 254 1975 17 ,000 .00 255 - 271 1976 17 ,000 .00 272 - 290 1977 19,000 .00 291 - 310 1978 20,000 .00 311 - 330 1979 20 ,000 .00 , and 2 . The Town of Taos Joint Water and Sewer Revenue Bonds , Series July 15, 1961 (herein some- times designated as the "1961 bonds") , authorized by Ordinance No . 518, duly adopted and approved on the 5th day of July, 1961, which bonds were issued in the original principal amount of $155 ,000.00, bearing date as of the fifteenth day of July, 1961, consisting of 155 bonds numbered consecutively in regular numerical order from 1 to 155, both inclusive, in the denomination )f $1,000 .00 each, payable solely from the net revenues derived from the operation of the system, and constituting a second lien on said net revenues , subject to the superior lien thereon -4- FILMED DOCUMENTS ARE THE BEST AVAILABLE COPIES. of the 1949 bonds, maturing serially on the first day of November in each of the years 1980 to 1987 , both inclusive , bearing interest at the rate of five per centum (5%) per annum, as evidenced by coupons desig- nated "A" and bearing additional interest at the rate of one per centum (1%) per annum, from date to the first day of May, 1971, as evidenced by a second set of coupons designated "B", interest being payable semiannually on the f irst days of November and May in each year, both principal and interest being payable at The First National Bank of Denver, Denver, Colorado, all bonds being subject to prior redemption in inverse numerical order, at the option of the Town, on the first day of May, 1971, and on any interest payment date thereafter prior to maturity, at a price equal to the principal amount thereof, accrued interest thereon to the redemption date, and a premium of four and one-half per centum (4-1/2%) of the principal amount of each bond so redeemed, of which issue there are now outstanding and unpaid bonds in the principal amount of $155,000 .00, consisting of bonds being numbered, bearing interest, and maturing serially on the first day of November in each of the designated years and amounts, as follows : Bond Numbers Years Principal (All incl-u—sl7e) maturine, aturing 1 20 1980 $20,000 .00 21 - 40 1981 20,000 .00 41 - 60 1982 20,000 . 00 61 - 80 1983 20,000. 00 81 - 100 1984 20,000 .00 101 - 120 1985 20,000 .00 121 - 140 1986 20,000 .00 14l - 155 1987 15,000 .00 WHEREAS , the total principal amount of the out- standing bonds of the issues designated hereinabove is $405,000 .00 ; and -5- FILMED DOCUMENTS ARE THE BEST AVAILABLE COPIES. WHEREAS , except as aforesaid the Town has never pledged nor in any way hypothecated revenues derived and to be derived from the operation of the joint system to the payment of any bonds or for any other purpose (excluding proceedings authorizing the issuance of bonds which have heretofore been redeemed in full, both principal and inter- est) , with the result that the revenues to be derived from the system may now be pledged lawfully and irrevocably for the redemption of additional bonds payable from revenues derived from the operation of the system; and WHEREAS , with the proceeds of the refunding revenue 'ponds herein authorized, and with any other available revenue derived from the operation of any of said facilities, in- cluding, to the extent necessary, revenues in bond sinking funds and reserve funds for the designated outstanding bond issues and other funds of the system (excluding operation and maintenance funds) and including any interest derived from the investment of such proceeds and revenues or any part thereof in bills, certificates of indebtedness , notes or bonds , which are direct obligations of the United States of America , or are unconditionally guaranteed by the United States of America , the Town proposes to pay in full the principal of and interest on the bonds now outstanding of each issue here inabove designated as the same accrue and become due to their respective maturities or to such prior redemption date as is hereinafter designated in this preamble (including the prior redemption premiums) , whichever is earlier, the Town will call for prior redemption on said dates and pay all outstanding bonds thereafter maturing, as follows : Bond Issues Prior Redemption Prior Redemption 159to s Premium 11-1-49 November 1, 1963 None 7-15-61 November 1, 1971 4-1/2% and -6- WHEREAS , Section 14-39-21, New Mexico Statutes Annotated, 1953 Compilation, provides in part that "Refunding revenue bonds issued under the provisions of this act (14-39- 17 to 14-39-25) shall bear interes; at a rate not exceeding the rate per annum borne by the bondo refunded, * * * and may mature at such time or times not exceeding fifteen (15) years after the due date of the bonds refunded and as determined by the municipality" ; and WHEREAS , the Board of Trustees of the Town (herein sometimes merely designated as the "Board") has considered, found and determined, and does hereby declare : 1. That the Mayor and the Board have studied the desirability and feasibility of refinancing, refunding and paying the above-listed outstanding revenue bonds , or any part thereof, by the issuance of additional revenue bonds for that purpose ; 20 That it is necessary and for the best interests of the Town and the inhabitants thereof : ao That the water facilities and the sewer facilities shall continue ;o constitute a joint public utility designated as the Town ' s joint water and sewer system, and to be operated and maintained as such; b, That subject to the approval in writing of the New Mexico Public Service Commission of the bonds herein authorized, with all of the proceeds derived by their sale and issuance and with any interest derived from the investment of such proceeds and revenues , or any part thereof, in securities , as hereinabove stated, the Town refinance, refund and pay its outstanding bonds, in the principal amount of $405,000 .00 3. That by issuing the bonds herein authorized and by refunding the designated outstanding bonds , the Town will : ao Reduce the aggregate costs of operating and maintaining the water and sewer facilities comprising the joint system, and materially simplify the adminis- tration and accounting therefor; -7- FILMED DOCUMENTS ARE THE BEST AVAILABLE COPIES. b , Thereby make greater net income available from the operation of the designated facilities com- prising the joint system for the payment of revenue bonds payable from such net income, and thereafter for other municipal purposes to the extent permitted by law; co Minimize and simplify the contractual limi- tations restricting the issuance of additional bonds payable from revenues to be derived from the system, wholly or in part, which limitations were necessarily imposed upon the Town for the protection of holders of such outstanding bonds by the proceedings authoriz- ing their issuance, and in the absence of which limi- tations the Town' s revenue bonds would not be market- able ; d . Make more uniform the "coverage" for bonds payable from the revenues of the system, thereby permitting the Town to issue higher grades of muni- cipal utility revenue bonds , at lower average annual net interest rates and smaller interest costs ; e ., Permit the more advantageous and comprehensive arrangement of the serial maturities of, and of the rates of interest to be borne by, all. revenue bonds, issued and planned for issuance , payable from revenues to be derived from the operation of the system or any part thereof. ; and f . Also permit the issuance of revenue bonds of future issues , the liens of which on the net income of the joint system can be made on a parity with the liens thereon of the outstanding bonds to be re- evidenced by the proposed refunding bonds herein authorized, without contravening any earnings test or other contractual limitation for the issuance of additional revenue bonds , and thereby permit the issuance of larger amounts of "parity first lien" utility revenue bonds payable from all of such net -8_, FILMED DOCUMENTS ARE THE BEST AVAILABLE COPIES. income , at one time or from time to time, at sub- stantially lower average annual net interest rates, on a wholly self-liquidating basis, for the purpose of extending, enlarging or bettering the joint system, 4. That thus the refunding herein authorized to be effected, is necessary and proper, and will provide for the safety, preserve the health, promote the prosperity, and improve the morals , order, comfort and convenience of the Town and its inhabitants ; 5 . That it is advisable and in the best interests of the Town to make appropriate provisions herein for the future issuance of additional bonds or other obligations pay- able from revenues to he derived from the joint system, which additional bonds or rather obligations , if and when authorized in accordance with Law, k,:.11, subject to designated conditions, occupy a position of parity and enjoy an equality of lien on the revenues of the syErem with the bonds herein authorized, and further, to prescribe the restrictions , covenants and limitations which •.hall g•:vern the issuance of any additional bonds or other obligations ,payable from such revenues ; 6. That the interest rate borne by no outstanding bond to be refunded shall be increased by the issuance of the refunding bond herein authorized therefor ; 7 .. 'That the maturity of no outstanding bond to be refunded shall be extended in excess of fifteen years after its due date by the issuance of the refunding bond herein authorized therefor ; 8. That issuing the refunding bonds herein author- ized, and refinancing, refunding and paying the designated outstanding revenue bonds at the times and in the manner he re- inabove designated, will result in a lower total cost to the Town and its inhabitants incurred in connection with the system and obligations incurred therefor ; and WHEREAS , it is the intent and purpose of this ordi. nance to conditionally authorize the issuance of said refund- ing bonds in such manner as not to affect adversely the rights or remedies of any of the owners or holders of the designated outstanding bonds not to affect adversely the security pledged to the payment of any of the outstanding -9- bonds , and to satisfy all liens of the outstanding bonds on any revenues derived and to be derived from the operation of the system or any part thereof, and all pledges of such revenues to secure the payment of said outstanding bonds ; and WHEREAS , the Board, after competitive negotiation, has determined, and does hereby declare that the proposal sub- mitted by Peters , Writer & Christensen, Inc . , Denver, Colorado, and associates , for the purchase for cash of the bonds, at the rates of interest hereinafter set forth , for the principal amount thereof and accrued interest to the date of delivery, was and is the best proposal submitted for said bonds , and that said proposal be and hereby is accepted ; and WHEREAS , in order to authorize the making and issuance of the joint water and sewer refunding bonds to finance the costs of refunding the designated outstanding revenue bonds , in order to pledge the net income to be derived from the operation of the system to the payment of said re <, funding revenue bonds , and in order to comply with Sections 14.39 -8 to 14.39 - 13, and 14-39 -17 to 14-39 -25 , all inclusive , New Mexico Statutes Annotated, 1953 Compilation, and all acts amendatory thereof and supplemental thereto, it is necessary that an ordinance be adopted by the affirmative vote of a majority of all the members of the Board declaring the necessity thereof , at either a regular or a special meeting called for that purpose declaring the necessity therefor.. NOW, nEREFORE , BE IT ORDAINED BY THE BOARD OF TRUSTEES OF ThE 'I'0WN OF TAOS , NEW MEXI.CO : Section 1 , Definitions . That the terms in this section defined for all purposes of this ordinance and of any ordinance amendatory hereof or supplemental hereto, or relating hereto, and of any instrument or document appertain- ing hereto, except wl,.ere the context by clear implication herein or_herw:sF- requires , shall have the meanings herein specified . (a) Revenues , &ross revenues , 11 11income , ifor " ross income" from or of the system means all income and revenue derived by the Town from the operation of _.10-. FILMED DOCUMENTS ARE THE BEST AVAILABLE COPIES. the system, or any part thereof , whether resulting from improvements , extension, enlargements, repairs or betterments to the system, or otherwise, and in- cludes all revenues received by the Town, or any municipal corporation succeeding to the rights of the Town from the system and from the sale and use of water, water service and facilities and sewer service and facilities , or any combination thereof, to the inhabitants of what is now the Town (including all territorial annexations which may be made while the revenue bonds herein authorized or any part thereof are outstanding) , or from the sale and use of water, water service and facilities, and sewer service and facilities , or any combination thereof, by means of the system owned and operated by the Town as the same may at any time exist to serve customers out- side the Town limits as well as customers within the Town limits. (b) "Operation and maintenance ex ep nses , " (or a phrase of similar import) means all reasonable and necessary current expenses of the Town, paid or ac- crued, of operating, maintaining, and repairing the system; and the term may include at the Town 's option (except as limited by law) , without limiting the gen.• erality of the foregoing, legal and overhead expense of the various Town departments directly related and reasonably allocable to the administration of the sys- tem, insurance premiums, the reasonable charges of any paying agent or other depositary bank appertaining to the system, contractual services , professional ser- vices required by this ordinance , salaries and adminis- trative expenses , labor, and the cost of materials and supplies used for current operation, but excludin (a) Any allowance for depreciation; (b) Liabilities incurred by the Town as the result of its negligence in the operation mll- FILMED DOCUMENTS ARE THE BEST AVAILABLE COPIES. , of the system or other ground of legal liabil- ity not based on contract ; (c) The costs of improvements , extensions , enlargements, or betterments ; and (d) Any charges for the accumulation of reserves for capital replacements . (c) "Net revenues" or "net income" means the revenues after deducting operation and maintenance expenses . (d) "Bonds" or "1963 bonds" ,leans the 405 bonds herein authorized. (e) "Payi.na Agent" means The First National Bank of Denver, in the City of Denver, Colorado. (f) "Insured Bank" means a bank which is a member of the Federal Deposit Insurance Corporation. (g) "Independent Accountant" means any accountant who (1) is (a] a public accountant or registered accountant, duly licensed to practice and practicing as such under the laws of the State of New Mexico, appointed and paid by the Town, or is [b) an accountant employed by the State of New Mexico, and under the supervision of the State Auditor of the State of New Mexico ; and (2) is , in fact, inlependent of the Town and not under its domination, and does not have any sub- stantial interest, direct or indirect, with the Town, and is not connected with the Town as its officer or employee , but may be regularly retained to make annual or si..milar audits of the books or records of the Town. Ih) "Escrow Bank" means The First National Bank of Denver, in Denver, Colorado. (i) "Fiscal Year" means the 12 months commencing on the first day of July of any year and ending on the 30th day of June of the next succeeding year-. ('j) "New�paper" means a newspaper printed in the Town of Taos and of general circulation therein. -12- M "Redemption date" means the date fixed for the redemption prior to their respective maturities of bonds in any notice of redemption. (1) Herein, her�,-ba, hereunder, hereof, "hereincefore , " and "hereinafter" refer to this ordinance and not solely to the particular portion thereof in which such word is used ., Definitions include both singular and plural,. Pronouns include both singular and plural and cover all genders . Section 2 . Ratification. That all action hereto- fore taken (not inconsistent with the provisions of this ordinance) by the Board of Trustees and the officers cf the Town directed toward refinancing, refunding and paying the outstanding bonds hereinabove designated, and toward the issuance of its refunding revenue bonds for that purpose be, and the same hereby is , ratified, approved and confirmed, including, without limiting the generality of the foregoing, the sale of said bonds , bearing interest as hereinafter set forth, to Peters , Writer & Christensen, Inc ... , Denver, Colorado, and associates , for not less than the principal amount thereof and accrued interest to the date of delivery. Section 3 , Joint Utility. That the municipal water- works facilities or system, and the municipal sanitary sewer facilities or system shall continue to constitute a joint public utility designated as the Town of Taos joint water and sewer system, and shall continue to be operated and maintained as such the joinder, operation and maintenance of the mun,.ci..pal water facilities and sewer facilities as one public utility known as the joint water and sewer system of the Town are hereby redpc.Lared and reauthorized Section 4., Refunding of Outstanding Bonds That the outstanding bonds hereinabove designated to be refinanced, refunded and redeemed, in the principal amount of $405 ,000 .00 shall be , and the same hereby are , ordered to be refinanced, refunded and paid in full . Section 5 ., Authorization of Bonds . That for the purpose of protecting the public health , conserving the -13=, 1FAA FILMED DOCUMENT'S ARE THE BEST AVAILABLE COPIES. property and advancing the general welfare of the citizens of the Town, for the purpose of so refinancing, refunding and paying the designated outstanding bonds , it is hereby declared necessary that the Town make and issue, and there are hereby authorized to be issued, pursuant to the pro- visions of Article 39 , Chapter 14, New Mexico Statutes Annotated, 1953 Compilation, as amended, the "Town of Taos Joint Water and Sewer Refunding Revenue Bonds, Series July 1, 1963, " in the principal amount of $405, 000.00 , payablo. 1-oth as to principal and interest solely out of the net income derived from the operation of the system, such net income being the gross income after deduction only for the necessary and reasonable operation and maintenance expenses of the joint system, and the Town pledges irrevocably, but not necessarily exclusively, such net income to the payment of the bonds and the interest thereon (Nothing herein contained shall be con- strued as preventing the Town from paying aeeured interest on the designated outstanding revenue bonds from the date of the last interest payment date to the date of their payment and redemption, and any prior redemption premiums due thereon; and the Town shall require the purchaser of the bonds herein authorized to pay accrued interest thereon to the date of their delivery from their last interest payment date , if any, or otherwise from their date) . Section 6 . Bond Details . That said bonds shall be payable to bearer, shall be dated as of the first day of July, 1963, shall consist of 405 bonds in the denomination of $1 ,000 , 00 each, numbered consecutively in regular numerical order from 1 to 405 , both inclusive, and shall bear interest until their respective maturities at the rate of three and seven -eights per centum (3-7/8%) per annum for bonds numbered 1 through 75 , both inclusive, four per centum (4%) per annum, for bonds numbered 76 through 250, both inclusive , four and one -fourth per centum (4-1/4%) per annum, for bonds numbered 251 through 316, both inclusive, four per centum (4%) per annum, for bonds numbered 317 through 405 , both inclusive, evidenced by one set of interest coupons designated "A", -14- payable to bearer and attached to said bonds, and payable semiannually on the first days of November and May in each year, commencing on the first day of November, 1963 ; and the bonds shall be numbered, and mature serially, annually on the first day of November in each of the designated years and amounts, as follows : Bond Numbers Amounts Dates ( nc us ve) atur ng a ur ng 1 - 11 $112000.00 11-1-63 12 - 23 12 ,000 .00 11-1-64 24 - 35 122000 .00 11-1-65 36 - 48 13,000.00 11-1-66 49 - 61 13,000 .00 11-1-67 62 - 75 141000 ,00 11-1-68 76 - 90 15,000 .00 11-1-69 91 - 106 16,000 ".0_Q___.__._ 11-1-70 107 - 122 16,000.00 -1-71 123 - 138 16,000.00 11-1-72 139 - 155 17 ,000 . 00 11-1-73 156 172 17 ,000 .00 11-1-74 173 - 190 18,000 .00 11-1-75 191 - 208 18,000 .00 11-1-76 209 - 228 202000.00 11-1-77 229 250 22,000.00 11-1-78 T51 - 272 22,000.00 11-1-79 273 294 22 ,000 .00 11-1-80 295 31.6 22.,000 .00 ._ 11-1-81 - 317''= 338 22,000.00 11-1-82 339 - 360 22,000.00 11-1-83 y 361 382 22,000 .00 11-1-84 383 - 405 23,000 .00 11-1-85 Bonds numbered 251 through 405, both inclusive, shall bear additional interest from the first day of November, 1963, until the firs. day of November, 1965, payable semiannually on the first days of May and November in each year, commencing the first day of May, 1964, at the rate of one and five one hundredths per centum (1 .05%) per annum, evidenced by a second set of coupons designated "B" and attached to said bonds . Both principal of and the interest on all bonds herein authorized shall be payable in lawful money of the United States of America, without deduction for exchange or collection charges at the Paying Agent . In the event any of said bonds shall not be paid at maturity upon presentation and surrender, it shall continue to draw interest at the rate of six per centum (6%) per annum. -15m Section 7 . Prior Redemrtion. That the bonds num- bered 1 to 155 , both inclusive , maturi-ag on and before the first day of November, 1973, shall nit be subject to redemption prior to their respective maturities . Bonds numbered 156 to 405, both inclusive, maturing on and after the first day of November, 1974, shall be subject to redemption prior to their respective maturities in inverse numerical order, at the option of the Town, on the first day of November, 1973 , or on any interest payment date thereafter, at a price equal to the principal amount of each bond so redeemed, accrued interest thereon to the redemption date and a premium of four per centum (4%) of the principal amount redeemed„ Notice of redemption shall be given by the Treasurer of the Town, in its name, 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 (as hereinabove defined) , and a copy of such notice shall be sent by registered mail at least thrity days prior to the redemption date to (a) Peters , Writer & Christensen, Inc . , Denver, Colorado, and associates , as representative of the purchasers , and (b) to the above named Paying Agent . 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 Paying Agent designated by name, the principal amount thereof, accrued interest thereon to the redemption date , and the stipulated premium, and that from and after such date interest will cease to accrue . No- tice having been given in the manner hereinabove provided, the bond or bonds so called for redemption shall become due and payable on the redemption date so designated, and upon presen- tation thereof at the Paying :Agent, together with all ap- purtenant coupons maturing subsequent to the redemption date , the Town will pay the bond or bonds so called for redemption. Section 8 : Negotiability. That , subject to the provisions specifically made or necesjarily implied herein, the bonds and coupons appertaining thereto shall be fully -16- FILMED DOCUMENTS ARE THE BEST AVAILABLE COPIES. negotiable and shall have all the qualities of negotiable paper, and the holder or holders thereof shall possess all rights enjoyed by the holders of negotiable instruments under the provisions of the Uniform Commercial Code . Section 9, Execution. A. Filing Manual Signatures , That pursuant to the Uniform Facsimile Signature of Public Officials Act, adopted as Chapter 118, Laws of New Mexico, 1959, and also cited as Sections 5-9-1 to 5-9-6, both inclusive, New Mexico Statutes Annotated, 1953 Compilation, 1961 Pocket Supplement, the Mayor and Town Clerk shall each forthwith file with the Secretary of the State of New Mexico his manual signature certified by him under oath. B. Method of Execution. That the bonds shall be signed, executed and attested in the name of the Town with the engraved, imprinted, stamped or otherwise reproduced facsimile of the signature of the Mayor ; a printed, engraved, stamped or otherwise placed thereon facsimile of the corporate seal of the Town shall be affixed on each bond ; and it shall be signed, manually subscribed and executed by the Clerk of the Town. The interest accruing to maturity on said bonds shall be evidenced by interest coupons thereto attached authenticated by such 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 . The bonds and coupons bearing the signatures of the officers in office at the time of the signing thereof shall be the valid and binding obligations of the Town, notwithstanding that before the delivery thereof and payment therefor, any or all of the persons whose signatures appear thereon shall have ceased to fill their respective offices. Each, the Mayor and the Town Clerk, at the time of the execution of the bonds and of a signature certificate by the Mayor and Town Clerk, may adopt as and for his own facsimile signature the facsimile signature of his predecessor in office in the event that such facsimile signature appears upon any of the bonds or coupons appertaining to the bonds herein authorized to be issued . -.17 C . Bond Execution and Delivery. The Mayor and the Town Clerk are hereby authorized and directed to prepare and to execute the bonds as herein provided. When the bonds have been duly executed and sold, the Town Treasurer shall deliver them to the lawful Purchaser thereof on receipt of the agreed purchase price . D. Reissuance of Mutilated, Destroyed, Stolen, or Lost Bonds. In case any outstanding bond shall become mutilated or be destroyed, stolen, or lost, the Town may issue and may deliver a new bond (with appropriate coupons attached) of like tenor, number, and amount as the bond and appurtenant coupons so mutilated, destroyed, stolen, or lost, in exchange and substitution for such mutilated bond and upon surrender of such mutilated bond and appurtenant coupons or in lieu of and substitution for the bond and appurtenant coupons destroyed, stolen, or lost : a . Upon filing with the Town evidence satis- factory to the Town that such bond and appurtenant coupons have been destroyed, stolen, or lost and proof of ownership thereof; and b . Upon furnishing the Town with indemnity satisfactory to it and upon complying with such other reasonable regulations as the Town may prescribe and upon paying such expenses as the Town may incur in connects )n therewith. E. Reissuance of Other Outstanding Bonds . Nothing contained in the provisions of paragraph D of this section 9 hereof shall be construed as prohibiting the Town from re- issuing any outstanding bond which shall have not become mutilated, destroyed, stolen, or lost, upon such terms and conditions as the Board may determine . Section 10. Special Obligations. That all of the bonds herein authorized, together with the interest accruing thereon, shall be payable and collectible solely out of the net income to be derived from the operation of the system, -18- FILMED DOCUMENTS ARE THE BEST AVAILABLE COPIES. the income of which is so pledged, and the holder or holders thereof may not look � o any general or other fund for the payment of principal and interest on such obligations, except the designated special funds pledged therefor ; and such bonds shall not constitute an indebtedness nor a debt within the meaning of any constitutional or statutory provision or limitation, nor shall they be considered or held to be general obligations of the Town. Section 11. Bond and Coupon Form. That the bonds and the coupons thereto attached shall be in substantially the following form; -19- FILMED DOCUMENT'S ARE THE BEST AVAILABL'. COPIES. (Form of Bond) UNITED STATES OF AMERICA STATE OF NEW MEXICO COUNTY OF TAOS TOWN OF TAOS JOINT WATER AND SEWER REFUNDING REVENUE BOND SERIES JULY 1, 1963 NO. $1,000 .00 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 hereon at the rate of three and seven-eighths per centum (3-7/8%) four per centum (4%) four and one-fourth per centum (4-1/4%) per annum, evidenced until maturity by one set of coupons appertaining hereto designated "A", *plus additional inter- est hereon from the first day of November, 1963, until the first day of November, 1965, at the rate of one and five one hundredths per centum (1 .05%) per annum, evidenced by a second set of coupons appertaining hereto desig- nated "B",* being; payable semiannually on the first days of November and May in each year, commencing November 1, 1963, *for coupons designated "A" and commencing May 1, 1964, for coupons designated "B, "* upon presentation and surrender of the annexed coupons as they severally be- come due . If upon presentation at maturity, payment of this bond is not made as herein provided, interest shall -20- FILMED DOCUMENTS ARE THE BEST AVAILABLE COPIES. continue at the rate of six per centum (6%) per annum 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 band is one of a series subject to prior redemption in inverse numerical order at the option of the Town on November 1, 1973 , or on any interest payment date thereafter, at a price equal to the principal amount hereof, accured interest hereon to the redemption date , and a pre- mium of four per centum (4%) of the principal amount redeemed. Redemption shall be made upon not less than thirty days ' prior published and mailed notice in the manner and upon the condi- tions provided in the ordinances authorizing the issuance of this bond. ) This bond does not constitute a debt nor an indebted- ness of the 'Town within the meaning of any constitutional or statutory provision or limitation, shall not be considered or held to be a general obligation of the Town, and is pay- able and collectible solely out of the net income derived from the operation of the municipal 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 pay- ment of the principal of and interest 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. , adopted and approved the day of , 19632 two special funds identified as the "Town of Taos Joint Water and Sewer Refunding Revenue Bonds , Series July 1, 1963 , Interest and Bond Retirement Fund, " and as the "Town of Taos Joint Water and Sewer Refunding Revenue Bonds, Series July 1, 1963, Reserve Fund, " into which the Town covenants to pay, respectively, from the revenues derived from the operation of said system, after provision only for all necessary and reasonable expenses of the operation and maintenance of said -21- FILMED DOCUMENTS ARE THE BEST AVAILABLE COPIES. system, 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 afforded 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 lion on the net revenues of the system; and said bonds consti- tute an irrevocable and first lien (but not necessarily an exclusively first lien) upon said net revenues. Bonds in addition to the series of which this is one, subject to designated conditions, may be issued and made payable from said net revenues of said system and having a lien thereon inferior and junior to the lien, or having a lien thereon on a parity with the lien, of the bonds of the series of which this is one , in accordance with the provisions of said ordinance . The Town covenants and agrees with the holder of this bond and with er �h and every person who may become the holder hereof that it will keep and perform all of the covenants of said ordinance, including, without limiting the generality of the foregoing, its covenant against the sale or mortgage of said system or any part thereof unless provision shall be made for the payment of the principal of and the interest on 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 said system sufficient to produce revenues or earnings sufficient to pay the annual operation and maintenance expenses and one hundred fifty per centum (150%) of both the principal of and interest on the fronds and any other obligations payable annually from the revenues of said system (excluding the reserves therefor) . This bond is ono of a series of four hundred and five (405) bonds of like tenor , amount and date, except as to number, interest rate, prior redemption option, and maturity, authorized for the purpose of paying the costs of -22- FILMED DOCUMENTS ARE THE BEST AVAILABLE COPIES. refinancing, refunding and paying the Town 's revenue bonds outstanding in the aggregate principal amount of $405 ,000 . 00. 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 trans- feree to the same extent for all purposes as would the delivery under like circumstances of any negotiable instru- ment 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 eny 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 original or any intermediate holder hereof, or any set-offs or cross-claims ; and (d) the surrender to the obligor or any agent of the obligor of this bond and of each of the coupons shall be a good discharge to the obligor for the same . It is further certified, recited and warranted that all the requirements of law have been fully complied with by the proper officers of the Town in the issuance of this bond ; and that it is issued pursuant to and in strict conformity with the Constitution and laws of the State of New Mexico, and particularly under the terms and provisions of Chapter 14, Article 39, New Mexico Statutes Annotated, 1953 Compilation, as amended, and all laws thereunto enabling and supplemental thereto. IN WITNESS WHEREOF, the Town of Taos has cau!3ed this bond to be signed and executed in its name by the fac- simile signature of its Mayor; has caused the facsimile of the corporate seal of the Town to be affixed hereon ; has caused this bond to be signed, manually subscribed, executed and attested by its Town Clerk; and has caused the coupons -23- FILMED DOCUMENTS ARE,THE BEST AVAILABLE COPIE& hereto annexed to be authenticated with the facsimile signa- tures of said Mayor and Clerk, all as of the first day of July, 1963. (Facsimile Signature) ayor (FACSIMILE SEAL) Attest : (For Manual Signature) Town (;Ier ck *(Insert in bonds numbered 251 to 405, both inclusive , maturing on and after the first day of November, 1979 . "B" coupons are to be attached only to these bonds .) **(Insert in bonds numbered 156 to 405, both inclusive, maturing on and after the first day of November, 1974. ) (End of Form of Bond) -24- FILMED DOCUMENTS ARE THE BEST AVAILABLE COPIES. $5.25 $13.33 $ (Form of Coupon) 19 .37 $14.16 $19 .38 14. 17 Coupon No . * $201. 25 12.92 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 ex- change or collection charges , at The First National Bank of Denver, in Denver, Colorado, the amount herein stated solely from and secured by a pledge of two funds created from the net revenues derived from the operation of the municipal joint water and sewer system of said Town, such amount being **Sour months ' interest on its Town of Taos Joint Water and Sewer Refunding Revenue Bond, Series July 1, 1963, and bearing Bond No . (Facsimile Signature) mayor (Facsimile Signature) Town eerrK *(Insert the letter "A" or "B" as well as on appropriate number in each coupon, "B" coupons are to be attached to bonds numbered 251 to 405, both inclusive . ) **(Insert in coupons maturing on May 1, 1974, and thereafter, attached to bonds numbered 156 to 405, both inclusive , maturing on and after November 1, 1974.) ***(Insert "four months "' in all "A" coupons numbered one , and "six months "' in all others .) (End of Form of Coupon) -25- 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 shall be de- posited into the Bond Fund hereinafter created, to apply on the payment of interest next due of the bonds payable there- from. B. Refunding Fund. That all of the principal proceeds derived from the sale of the bonds herein authorized, (i.e . $405,000.00) , together with any premium therefor and together with any other revenues derived from the operation of the system, or any of the component parts thereof, and available for use , including but not necessarily limited to moneys accumulated in the bond sinking funds and bond reserve funds to secure additionally the payment of the outstanding bonds, hereinabove designated to be refunded, (excluding operation and maintenance funds) , shall be immediately used p, to purchase bills , certificates of indebtedness, notes or bonds which are direct obligations of the United States of America , or are unconditionally guaranteed by the United States of America , which federal securities , together with cash to the extent necessary, shall be deposited in a separate fund and escrow account, hereby created and to be known as the "Town of Taos Joint Water and Sewer Refunding Revenue Bonds, Series July 1, 1963, Refunding Fund, " and sometimes designated herein as the "Refunding Fund, " with The First National Bank of Denver, at Denver, Colorado (hereinafter sometimes referred to as the "Escrow Bank") . The amount of such deposit in securities and cash shall be at 'all times at least sufficient, together with any interest to be derived from such federal securities, to pay the reasonable charges of said Escrow Bank in connection therewith, and to pay the principal of and the interest on the outstanding revenue bonds hereinabove desig- nated to be refunded, both accrued and not accrued, as the same become due, to the respective maturities of said bonds or to the designated prior redemption dates hereinabove specified in the preambles of this ordinance (i.e . , November 1, -26- 1963, for the 1949 bonds, and November 1, 1971, for the 1961 bonds) , whichever is earlier, including the payment of the prior redemption premiums hereinabove designated. Moneys shall be withdrawn by said Escrow Bank from the Refunding Fund in sufficient amounts and times to permit the payment without default of such principal, interest and prior re- demption premiums . Said Escrow Bank may also withdraw from the Refunding Fund the amounts of its reasonable service charges in connection therewith as the same accrue and become due, not, however, in a total amoun-: exceeding the amount deposited in the Refunding Fund the :efor, if any. The reasonable charges , if any, of the paying agent for any of the out- standing bonds being refunded shall be promptly paid by the Town as a cost of operating and maintaining the system. Any moneys remaining in the Refunding Fund_after the redemption in full of the outstanding revenue bonds hereinabove desig- nated to be refunded, or after adequate provision has been made therefor, shall be deposited into the Reserve Fund. C. Insufficiency of Refundin& und + If for any reason the amount in the Refunding Fund shall at any time be insufficient to effect the purposes of the next preceding paragraph, the Town shall forthwith, from the first available net revenues derived from the operation of the system, deposit in the Refunding Fund at least such additional moneys as shall be necessary to pay the designated amounts of principal, interest, prior redemption premiums and service charges of said Escrow Bank in connection with the Refunding Fund. D. Purchasers Not Responsible . That the pur- chasers of the bonds , however, shall in no manner be responsible for the application or disposal by its officers of the funds derived from the sale thereof ,, Section 13 , Fiscal year. That for the purpose of this ordinance the system shall be operated upon a fiscal year basis , commencing on the first day of July in each year and ending on the 30th day of June of the next succeeding year. -27- Section 14. Income Fund, That so long as any of the bonds herein authorized shall be outstanding, either as to principal or interest, or both, the entire gross income and revenues of the joint system shall be set aside and deposited in an insured bank into a special fund hereby created and to be known as the "Town of Taos Joint Water and Sewer System Gross Income Fund, " herein sometimes designated as the "Income Fund• " Section 15 • Administration of Income Fund • That so long as any of the bonds hereby authorized shall be out- standing, either as to principal or interest, or both, the following payments shall be made from the Income Fund : A• Operation and Maintenance_EUenseso Firstly, as a first charge thereon, there shall be set aside from time to time as a Town of Taos Joint Water and Sewer System Operation and Maintenance Fund, herein sometimes referred to as the "Operation and Maintenance Fund , " moneys in the Income Fund sufficient to pay operation and maintenance expenses as they become due and payable , and thereupon they shall be promptly paid. Any surplus remaining at the end of the fiscal year and not needed for operation and maintenance expenses , shall be transferred to the Income Fund and be used for the purposes thereof, as herein provided. B. Principal and Interest. Secondly, and sub- ject to the aforesaid provisions , from any moneys remaining in the Income Fund, i e „ , from the net income of the joint system, there shall be deposited into a bank account hereby created and to be known as the "Town of Taos Joint Water and Sewer Refunding Revenue Bonds , Series July 1, 1963, Interest and Bond Retirement Fund, " herein sometimes referred to as the "Bond Fund, " the following : (1) Monthly, commencing on the first day of the month immediately succeeding the delivery of any of the bonds , an amount in equal monthly in- stallments necessary, together with any moneys there- in and available therefor, to pay the next maturing -28- FILMED DOCUMENTS ARE THE BEST AVAILABLE COPIES. installment of interest on the bonds then outstand- ing, and monthly thereafter commencing on said interest payment date one-sixth of the amount necessary to pay the next maturing installment of interest on the outstanding bonds . (2) Monthly, commencing on the first day of the month immediately succeeding the delivery of any of the bonds , an amount in equal monthly in- stallments necessary, together with any moneys therein and available therefor, to pay the next maturing installment of principal of the outstand- ing bonds , and monthly thereafter one-twelth of the amount necessary to pay the next maturing in- stallment of principal of the bonds authorized hereby. Z C. Reserve Fund Payments . Thirdly, and concurrently with the payments into the Bond Fund required by paragraph B of this Section 15 hereof, except as provided in paragraphs D and E of this Section 15, and in addition to the moneys required to be deposited in the Reserve Fund by paragraph B, Section 12 , hereof, from any moneys remaining in the Income Fund there shall be set aside and paid mouthy, commencing on the first day of the month next following the first or only date on which any of the 1963 bonds are de livered, an amount per month at least sufficient to insure that at least the following yearly amounts are paid (by f each year) into a separate fund hereby created and to e known as the "Town of Taos Joint Water and Sewer Refunding Revenue Bonds , Series July 1, 1963, Reserve Fund, " herein sometimes referred to as the "Reserve Fund" as fol'Lows : Minimum Year Year X op s i t $ 500 ,.00 1964 500 ,00 1965 500 ,00 1966 2,200 .00 1967 2,200 .00 1968 2, 200 .00 1969 -29 Minimum Yearly"l�eposit Year $2, 200.00 1970 2, 200,00 1971 2 , 200.00 1972 1, 276A8 1973 provided , however, that the sum of $13 , 268. 82 shall be paid, immediately after the delivery of the 1963 bonds , into the Reserve Fund from net revenues of the system and available for use , including but not necessarily limited to bond reserve funds heretofore accumulated to secure additionally the pay- ment of the outstanding bonds to be refunded . Such monthly payments shall continue until a reserve has been accumulated in an amount equal to not leS3 than $29 , 245 . 00, herein some- times designated as the "Minimum Reserve, " and thereafter such amounts or amount , if any, shall be deposited monthly from any moneys remaining in the Income Fund , into the Reserve Fund necessary to maintain the Reserve Fund as a continuing reserve in an amount not less than the Minimum Reserve to r meet possible deficiencies in the Bond Fund . No payment need be made into the Reserve Fund so long as the moneys therein shall equal not less than the Minimum Reserve . The moneys in the Reserve Fund shall be accumulated and maintained as a continuing reserve to be used, except as hereinafter provided in said paragraphs D and E of this Section 15 , only to prevent deficiencies in the payment of the principal of and interest on the bonds hereby authorized resulting from the failure to deposit into the Bond Fund sufficient funds to pay said principal and interest as the same accrue , D. termination Upon Deposits to Maturity, No payment need be made into the Bond Fund , the Reserve Fund, or both, if the amount in the Bond Fund and the amount in the Reserve Fund total a sum at least equal to the entire amount of the bonds outstanding , both as to principal and interest to their respective maturities , and both accrued and not accrued, in which case moneys in said two funds in an amount at least equal to such principal and interest requirements =30- shall be used solely to pay such as the same accrue , and ate_, moneys in excess thereof in said two funds and any other moneys derived from the operation of the system may be used in any lawful manner determined by the Board of Trustees . E,. Defrayin Delinquencies in Bond and Reserve Funds . If, in any month, the Town shall , for any reason, fail to pay into the Bond Fund the full amount above stipu- lated from the net income of the system, then an amount shall be paid into said Bond Fund in such month from the Reserve Fund equal to the difference between that paid from said net income and the full amount so stipulated . The money so used shall be replaced in the Reserve Fund from the first revenues thereafter received from the operation of the system not required to be otherwise applied , If, in any month, the Town shall, for any reason, fail to pay into the Reserve Fund the full amount above stipulated from the net income of said system, the difference between the amount paid and the amount so stipulated shall in a like manner be paid there- in from the first revenues thereafter received from the operation of the system not required to be otherwise applied . The moneys in ;he Bond Fund and the Reserve Fund shall be used solely and only for the purpose of paying the principal of and the interest on the bonds issued hereunder; provided, however, that any moneys at any time in excess of the Minimum Reserve in the Reserve Fund may be withdrawn therefrom and used as herein provided for the redemption of bonds hereby authorized as they become due or on any redemption date ; and provided that any Moneys in the Bond Fund and the Reserve Fund in excess of accrued and unaccrued _principal and interest requirements to the respective maturities of the bonds out . standing may be used as hereina_bove provided in paragraph D of this Section 15 . F . Payment for Additional ObliEations : Fourthly, from any balance remaining in the Income Fund after making the payments hereinabove provided there shall be paid the interest on and the principal of additional bonds or other obligations hereafter authorized to be issued and payable -31- f rom the revenues of the system, including reasonable reserves therefor, as the same accrue ; provided that the lien of such additional bonds or other obligations on the net income and revenues of the system and the pledge thereof for the payment of such additional obligations ohall be on a parity with, or subordinate to, the lien and pledge of the bonds herein authorized, as provided in Section 19 hereof. In the event such additional bonds or other obligations be on a parity with the bonds herein authorized, the payments of interest on, principal of and reserve for such additional bonds or other obligations shall be made concurrently with the payments required by paragraphs B, C , D, and E of this Section 15 .. G. Use of �Surplus sRevenues . After making the payments herei.nabove required to be made by paragraphs A to F, both inclusive, of this Section 15 hereof, the remaining income and revenues derived from the operation of the system, if any, may be applied to the prior redemption of any out- standing bonds subject to prior redemption and payable from any revenues from the system at the times and in the manner provided in said bonds and the proceedings appertaining thereto, or may be applied to any other lawful purpose or purposes authorized by the Constitution and laws of the State of New Mexico and the resolutions and ordinances of the Town, as the same may be from time to time amended, as the Town Board may direct ,, Section 16. General Administration of Funds , That t:i1e funds and accounts designated in Sections 12, 14 and 15 hereof shal.1 be administered as follows : A Piace_s and Times of Deposits , Each of the funds and account; hereinabove designated in Sections 14 and 15 hereof , shall be maintained and kept separate from all other funds and accounts as a trust account solely for the purposes herein designated therefor in an insured Bank or Insured Banks (except as may be otherwise specifically provided) ,. Each such trust account shall be continuously secured to the fullest extent required or permitted by the -32- laws of the State for the securing of public funds and shall be irrevocable and not withdrawable by anyone for any purpose other than the respectively designated purposes . Each monthly payment shall be made into the proper fund and account on the first day of ea& month, except that when the first day of any month shall be a Sunday or a legal holiday, then such pay- ment shall be made on the next succeeding secular day: B. investment of Moneys , Any moneys in any account designated in Sections 74 and 15 hereof, not needed for im.. mediate use , may be invested or reinvested by the Town Treasurer in bills, certificates of indebtedness , notes or bonds which are direct obligations of, or the principal and interest of which obligations are unconditionally guaranteed by, the United States of America (herein sometimes designated as "federal securities") , and which shall be subject to re- demption 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 ; except that federal securities in the Reserve Fund shall so be subject to re- demption at the Folder ' s option at face value or shall mature at least five days prior to the last principal payment date of the bonds herein authorized and outstanding at the tf.me of such investment , or not later than ten years from the date of such investment , whichever limitation is shorter at the date of the investment ; and except that federal securities In the Refunding Fund so be subject to redemption at the holder ' s option et face value or shall mature at least_ five days prior to the respective interest and principal payment dates cf th.F ponds :,ping refunded so that moneys from the redemption cf the federal securities shall be availabl.e in sufficient amounts and at such times to permit the redemption. of the designated bonds at the designated maturities and re- demption date , as herein provided , The federal securities so purchased as an investment or reinvestment of moneys in any such account shall be deemed at all times to be a part of said account , and the interest accruing thereon and any profit realized therefrom shall be credited to the account , and -33- NMI any loss resulting from. such investment shall be charged to the account ., The Town Treasurer shall present for redemption or sale on the prevailing market any federal securities so purchased as an :investment of moneys in the account whenever it shall be necessary to do so in order to provide moneys to meet any payment or transfer from such account .: Section 1.7 . First Lien Bonds . That the bonds authorized herein, subject to the payment of all necessary and reasonable operation and maintenance expenses of the system, constitute an irrevocable and first (but not necessarily an exclusively first) lien upon the revenues derived from the operation of the system, Section 18 Equality of Bonds , That the bonds authorized tc be issued hereunder and from time to time out- standing shall r,cr. be entitled to any priority one over the other in the application of the revenues of the system, re gardless of the time or times of their issuance , it being the intention of the board that there shall be no priority among the bonds regardless of the fact that they may be actually issued and delivered at different times Section i9 . Additional Bonds or Other Obligations A., Limitations upon Issuance of Parit Obli ations , That nothing in this ordinance contained shall be construed in such a manner as to prevent the issuance by the Town of additional bonds or other obligations payable from the income or any revenues derived from the operation of tLe system and constituting a lien upon said revenues on a parity with., but not prier nor superior to, the lien of the 1963 bonds herein authorized, nor to prevent the issuance of bonds or other obligations refunding all or a part of the bonds herein; authorized ; prcvided , , however, that before any such additional parity bonds or ocher parity obligations are authorized cr actually issued , including any parity refunding bonds cr other parity refunding obligations (but excluding any obligations refunding other than subordinate bonds or other subord-Irate obligations , as permitted in paragraph B of Section 20 hFreof) - r 34.- FILMED DOCUMENTS ARE THE BEST AVAILABLE COPIES. (1) The Town shall not have defaulted in making any payments required by Section 15 hereof during the twenty-four months immediately preceding the issuance of such additional bonds or other addi- tional. obligations, or if none of the 1963 bonds have been issued and outstanding for a period of at least twenty-four months , for the longest period any of the 1963. bonds have been issued and out- standing ; and (2) The revenues derived from the operation of the system for the two fiscal years immediately pre- ceding the date of the issuance of such additional parity obligations shall have been sufficient to pay operation and maintenance expenses for said two fiscal years , and , in addition, sufficient to pay an amount representing on.� hundred forty per centum (140%) of the combined maximum annual principal and interest requirements of the outstanding revenue bonds and other obligations of the Town payable from and consti- tuting a lien upon the revenues of the system and the bonds or other obligations proposed to be issued (ex- cluding any reserve therefor) . K,, Cert: fic.ation of Revenues . A written certifi- cation by an Independent Accountant that said revenues are sufficient to pay said amounts , shall be conclusively pre- sumed to be acr.urate in determining the right of the Town to authorize , issk.f- , sell and deliver said additional bonds or other add? C: ona'l obligations on a parity with the bonds herein authorized , C: ., C'cnsideration of Additional Expenses , I.n determining why- .Nor or not additional parity bonds or other additional parry obligations m.ay be issued as aforesaid, consideration sh.a ? i be given to an-- probable increase (but not reduction) ;. n operation and maintenance expenses that will resulr from the expenditure of the funds proposed to be derived from :he issuance and sale of the said bonds or other obligations -35- Do Subordinate Obligations Permitted. Nothing herein contained, except as herein otherwise specifically stated, shall be construed so as to prevent the Town from issuing bands or other obligations payable from the revenues of the system and having a lien thereon subordinate , inferior and junior to the lien of the bonds authorized to be issued by this ordinance ., E<. St e An Obligations Prohibited . Nothing herein contained shall be construed so as to permit the Town to issue bonds or other obligations payable from the revenues of the system and having a lien thereon prior and superior to the bonds herein authorized to be issued. F Use -of�Proceeds , The proceeds of any addi.- tional bonds or other additional obligations !:ner than any refunding obligations) payable from revenue3 of the system shall be used only for improving bettering,__ enlarging and extending the system (or any combination thereof) . G , Payment Datps of Additional Obli&ations. Any additionai parity or subordinate bonds or other additional parity or subord-_'- nate obligations (including any partial refunding obligations) issued in compliance with the terms hereof shall bear interest payable semiannually on the first days of November and May in each year, except that the first coupon, or coupons appertaining to any bond or other obliga- tion may represent , or the first interest payment date may be for, interest accruing for any period not in excess in the aggregate of one year; and such additional obligations shagi macure on the first day of November in the years designated oy the hoard during the term of said bonds or other obiigat cns , Section 20 . Refunding Bonds . That the provisions of Section 19 hereof are subject to the exceptions : A Privilege of Issuing Refunding Obligations . That if at an,,; tii-ne after the bonds herein authorized, or any part thereof , shall have been issued and remain out- standing; the Board shall find it desirable to refund any outstanding bonds or other outstanding obligations payable -36- from any revenues of the system, said bonds or other obliga- tions, or any part thereof, may be refunded (but only with the consent of the holder or holders thereof, unless the bonds or other obligations, at the time of their required surrender for payment, shall then mature , or shall then be callable for prior redemption at the Town ' s option upon proper call) , regardless of whether the priority of the lien for the payment of the refunding obligations on the revenues of the system is changed (except as provided in paragraph D of Section 19 hereof and in paragraphs B and C of this Section 20) , B. Limitations upon Issuance of Parity Refunding Obligations :, That no refunding bonds or other refunding obligations payable from any revenues of the system shall be issued on a parity with the bonds herein authorized, unless : (i) The lien on any revenues of the system of the outstanding obligations so refunded is on a parity with the lien thereon of the bonds herein authorized : or (2) The refunding bonds or other refunding obligations are issued in compliance with paragraph A (including subparagraphs (1) and (2) thereof) of Section 19 hereof. C . Refunding Part of an Issue . That the refunding bonds or other refunding obligations so issued shall enjoy complete equality of lien with the portion of any bonds or other obiigati.ons of the same issue which is not refunded , if any there be ; and the holder or holders of such refunding bonds or such other refunding obligations shall be subrogated to all of the rights and privileges enjoyed by the holder or holders of the bonds or other obligations of the same issue refunded thereby , D. Limitations upon Issuance of any Refunding °2bligations „ That any refunding bonds or other refunding obligations payable from any revenues of the system shall be issued with such details as the Board may by ordinance -37- provide , subject to the provisions of paragraph G of Section 19 hereof, and subject to the inclusion of any such rights and privileges designated in paragraph C of this Section 20, but without any impairment of any contractual obligation imposed upon the Town by any proceedings authorizing the issuance of any unrefunded portion of such outstanding oblia, gations of any one or more issues (including but not neces- sarily limited to the 1963 bonds herein authorized) , If only a part of the outstanding bonds and any other outstanding obligations of any issue or issues payable from the revenues of the system is refunded, then such obligations may not be refunded without- the consent of the, holder or holders of the unrefunded portion of such obligations , unless , (1) The refunding bonds or other refunding obli - gations do not increase any aggregate annual principal and interest requirements evidenced by such refunding obligations and by the outstanding obligations not refunded on and prior to the last. maturity date of such unrefunded ob Agati.ons , or (2) The lien on revenues of the system for the payment of the refunding obligations is subordinate to each such lien for the payment of any obligations not refunded. Section 21 . Disposition of Funds A erE ainin to Outstandin Revenue Bonds . That, upon the delivery of any bonds herein authorized, the money deposited In the bend funds and the reserve funds appertaining to the our.standi.ng revenue bonds payable from revenues der;.ve.d from rho operation of the system, or any part thereof, (excluding ope ra t i,on and maintenance funds) , shall be used firsti.y at lEar,t �_<23,000 ,00 for the purchase of federal securities for deposi.t tcgether with the cash necessary therefor into the Refunding Fund *.c. insure that the Refunding Fund contains sufficient federal securities and cash to insure compliance with Sec.ti..:.n 12 hereof, as herci.nabove provided, secondl. , at least 613 , 208 82 shall be redeposited into the Reserve Fund as specti :.cally provided in Section 15 paragraph C hereof, and rM.rd ly , any remaining money shall be used for any legal purpose as the Town Board may direct . -38- FILMED DOCUMENTS ARE THE BEST AVAILABLE COPIES. MOM Section 22 . Protective Covenants . That the Town hereby covenants and agrees with each and every holder of the bonds issued hereunder; A. Use of Bond Proceeds , That the Town, with the proceeds derived from the sale of the bonds herein authorized, will proceed without delay to provide for the refinancing, refunding and paying of the outstanding revenue bonds as here- inabove 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 charges for 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 redeem any of said bonds , principal or interest , from, and the holder or holders thereof may not look to , any general or other fund except the income which is so pledged under the pro- visions of this ordinance C. Use Charges , That while the bonds authorized herein or any of them remain outstanding and unpaid , the rates for all services rendered by the system to the lown and to its inhabitants and to all consumers within or without the boundaries of the 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 inter- est thereon , and reserves therefor ; and there sr..ali be charged against all purchasers of service , including the Town, such rates and amounts as shall be adequate to meet the require- ments of this and the preceding sections hereof , and which -39- shall be sufficient to produce revenues or earnings annually to pay the annual operation and maintenance expenses and one hundred fifty per centum (150%) of both the principal of and interest on bonds and any other obligations payable annually from the revenues thereof, excluding 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 be 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 . N,� free service , facili- _ ties nor commodities shall be furnished by the system; that should the Town elect to use for municipal purposes water supplied by, or the sewer facilities of, the system, or any combination thereof, or in any other manner use the system, or any part thereof , any use of the system by or of the services rendered thereby to 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, including but not limi::ed to a reasonable charge for fire hydrant service of not less than $96 .00 per hydrant per year payable in equal monthly installments ; that all the income so derived from the Town shall be deemed to 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. 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 department, 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 in the Town for the charges im- posed hereunder for water and sewerage facilities and services -40- supplied by the system to the owner thereof, and the Town expressly covenants and agrees that it will cause each such lien to be perfected in accordance with the provisions of Section 14-39-2 to Section 14-39-6, New Mexico Statutes Anno- tated, 19`;3 Compilation, as from time to time amended, and the Town Covenants and agrees that it will take all steps necessary to enforce such lien as to each piece of property the owner of which shall be delinquent for more than six months in the payment of charges imposed hereunder. D. Levy of Charges . That the Town will forthwith and in any event prior to the delivery of any of the bonds herein authorized, fix, establish and levy the rates and charges which are required by paragraph C of Section 22 hereof, if such action be necessary therefor. No reduction in any initial or existing rate schedule for the system may be made unless : (1) The Town has fully complied with the pro- visions of Section 15 of this ordinance for at least the full fiscal year immediately preceding such reduc- tion of the initial rate schedule . (2) The audit required by the Independent Accountant by paragraph H of this Section 22 of this ordinance for the full fiscal year immediately pre- ceding such reduction discloses that the estimated revenues resulting from the porposed rate schedule , after its proposed reduction, 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 annually from the reve- nues of the system including reasonable reserves therefor, 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 effi- cient operating condition and to make such improvements , -41- FILMED DOCUMENTS ARE THE BEST AVAILABLE COPIES. extensions, enlargements , repairs and betterments thereto as may be necessary or advisable to insure its economical and efficient operation at all times . F „ Records . That so long as any of the bonds remain outstanding, proper books of record and account -will be kept by the Town, separate and apart from all other records and accounts , showing complete and correct entries of all transactions relating to the system. Such books shall include (but not necessarily be limited to) monthly records showing : (1) The number of customers by classes ; (2) The revenues received from charges by classes of customers , including but not necessarily limited to classification by water facilities and sewer facilities ; and (3) A detailed statement of the expenses of the system. F„ Rift to Inspect . That any holder of any of the bonds , or any duly authorized agent or agents of such holder, shall have the right at all reasonable times to inspect all records , accounts and data relating thereto and to inspect the system and all properties comprising the system, H. Audits That the Town further agrees that it will, within sixty days following the close of each fiscal year, cause any audit of such books and accounts to be made by an Independent -Accountant, 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„ Fach such audit, in addition to whatever matters may br thought proper by the accountant to be in- cluded the.re:n , shall include the following : ( l ) A statement in detail of the income and expend tares 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 ; -42- FILMED DOCUMENTS ARE THE BEST AVAILABLE COPIES. (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 issu- ance of outstanding bonds and other obligations payable from the revenues of the system; (3) The accountant ' s comment regarding the manner in which the Town has carried out the requirements of this ordinance , and any other ordinance and other pro- ceedings authorizing the issuance of outstanding bonds or other obligations payable from the revenues of the system, and the accountant ' s recommendation for any change or improvement in the operation of the system; (4) A list of the insurance policies in force at the end of the fiscal. year, setting out as to each policy the amount of the policy, the risks covered, the name of the insurer and the expiration date of the policy ; (5) A recapitulation of each fund or account created by the various resolutions, ordinances and other proceedings authorizing the issuance of out- standing bonds and any other outstanding obligations payable from the revenues of the system, into which fund are put moneysderived from the operation of the system or derived from the sale of the obligations , such analysis to show the balance in such fund at the beginning of the fiscal year, the deposits and with- drawals during said year, and the balance at the end of said year ; ( 6) The number of metered water connections, unmetered water connections , fire hydrant connections, metered sewer connections , and unmetered sewer con- nections 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 , in- cluding but not necessarily limited to classification by water facilities and sewer facilities . -43- , A similar audit and report shall be prepared by the 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 re- garded and paid as a maintenance and operation expense . The Town agrees to furnish forthwith by first-class mail, postage prepaid, a copy of each of such audits and reports to the holder of any of the bonds al: his request , and without request : a . To Peters , Wr' i:er &. Christensen, Inc . , Denver, Colorado b . To the Paying Agent, or to any successor paying agent bank, after each such audit and report has been prepared, and that any such holder shall have the right to discuss with the kyi}}i• t accountant or person making the audit and report the contents thereof and to ask for such additional information as he may reasonably require „ The Town shall publish a summary of each such annual audit at least once in a newspaper within three months from the end of the fiscal year,, 1 . Billing Procedure , That all bills for water, water service or facilities, sewer service or facilities , or any combination thereof , furnished or served by or through the system shall be rendered to customers on a regularly established day of each and every month either monthly in advance or in c.ht month next succeeding the month in which the service was rendered and shall be due within twenty days from the date rendered ; and in the event said bills are not paid within twenty days after the date when rendered , water and water service shell be discontinu:ad, and the rates and charges due shall be collected in a lawful manner , including but not limited to the cost of disconnection and reconnection. Water charges and sewer charges shall be billed jointly with each other. ; and each such joint bill shall show separately water and sewer charges ., J . Use of Bond and Reserve Funds . That the Bond Fund and the Reserve Fund shall be used solely and only, and said funds are hereby pledged, for the purpose of paying the "44 . i . i interest on and the principal of the bonds herein authorized, except for those moneys in the Bond Fund and in the Reserve Fund as are in excess of the interest on and principal of said bonds , both accrued and not accrued , to their respective maturities Ko Charges and Liens u on S stem° That from the revenues of the system the Town will pay all taxes and assess- ments or other municipal 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 , and it will duly observe and comply with all valid requirements of any municipal or governmental authority relative to any part of said system ; and the Town will not create or suffer to be created any lien or charge upon said system or upon the revenues therefrom except as permitted by this ordinance , or it will make adequate provisions to satisfy and discharge within sixty days after the same shall accrue , all lawful claims and demands for Labor, materials , supplies or other objects , which , if unpaid, might by law become a lien upon said system or upon the revenues therefrom; provided, however, that nothing herein shall require the Town to pay or cause to be discharged, or make provision for any such tax, assessment, lien or charge before the time when payment thereof shall be due or so long as the validity thereof shall be contested in good faith by appropriate legal proceedings . nsurance , That the Town in its operation of the system wiii carry fire and extended coverage insurance , workmen ' s compensation insurance, and other types of in- surance 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 con- sidered 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 -45- 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 sewer 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 manner dispose of , or otherwise alienate. , the system, or any part thereof , including any and all extensions and additions that may be made thereto, until all. the bonds herein authorized to be issued shall have been paid in full, both principal and interest , or unless provision has been made therefor, except that the Town may sell any portion of said property which shall have been replaced by other property 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 proceeds of such sale shall be distributed as net income of the system in accordance with the provisions of Section 15 hereof . O. 1 xtendingInterest 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 pay- ment of any coupon or claim for interest on any of the bonds issued hereunder , and it will riot directly or indirectly be a party to or approve any arrangement for any such ex- tension 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 . stallment or installments of interest after such extension or arrangement _46- shall not be entitled in case of default hereunder to the benefit or security of this ordinance except subject to the prior payment in ful.l of the principal of all bonds issued hereunder and then outstanding, and of matured interest on such bends the payment of which has not been extended. P, Surety Bonds , That each municipal cfficial or oti;.er person having custody of any funds derived from operation of the system, or responsible for their handling, shall be fully bonded at all times, which bond shall be conditioned upon the proper application of said funds . The cost of each such bond shall be considered one of the opera- ting costs of the system, Q . Additional Bonds ,. The Town will not here- after issue any bonds or obligations payable from the revenues of the system and having a lien on a parity with or subordinate to the bonds herein authorized until all bonds herein author- ized have been paid in full , unless such additional bonds or other obligations (other than refunding bonds or other re- funding obligations issued pursuant to Section 20 hereof) on a parity with or junior to the bonds herein authorized are issued in such manner as provided in Section 19 hereof. R, Competent Management,. That the Town shall employ experienced and competent management personnel for each component of the system.. In the event of default on the part of the Town in paying principal of or intere =.t on said bonds promptly as each falls due , or in the keeping of any covenants herein contained, and if such detaulr shall continue for a period of sixty days , or if the net revenues of the system in any fiscal year should fait 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 reve- nues 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 ., -47 FILMED DOCUMENTS ARE THE BEST AVAILABLE COPIES. S . 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 of New Mexico and the ordinances and resolution of the Town, including but not limited to the making and collecting of reasonable and sufficient rates and charges for services rendered or furnished by the system as hereinbefore provided, and the proper segregation of the revenues of the system and their application to the respective funds . T. Other Liens . That other than as provided by this ordinance , there are not liens or encumbrances of any nature , whatsoever, on or against the system or the revenues derived or to be derived from the operation of the same . U. Town ' s Existence. That the Town will maintain its corporate identity and existence so long as any of the bonds herein authorized remain outstanding ., V. Prior Redemption of Refunded Bonds . That the Town shall give proper published and mailed notice of its exercise of its options to redeem outstanding revenue bonds prior to their respective maturities for the issues prior to and effective on the redemption dates designated above , in strict compliance with the proceedings authorizing the issu- ance of the designated outstanding bonds, and the Town will take all action necessary or desirable to effect the redemp- tion of the outstanding revenue bonds to be refunded at the time and in the manner here inabove provided . Section 23. Events of Default That each of the following events is hereby declared an "event of default, " that is to say : A. Nonpayment of Principal . Payment of the prin- cipal 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 proceedings for prior redemption, or otherwise . B. Nonpayment of Interest. Payment of any in- stallment of interest shall not be made when the same be- comes due and payable or within thirty days thereafter. -48- C. Incapable to Perform. The Town shall for any reason be rendered incapable of fulfilling its obliga- tions hereunder. D. Default of any Provision. The Town shall make default in the due and punctual performance of its covenants or conditions, agreements and provisions contained in the bonds or in this ordinance on its part to be performed, and if such default shall continue for sixty days after written notice specifying such default and requiring the same to be remedied shall have been given to the Town by the holders of twenty-five per cent in principal amount of the bonds then outstanding . Section 24. Remedies for Defaults . That upon the happening and continuance of any of the events of de- fault as provided in Section 23 of this ordinance , then and in every case the holder or holders of not less than twenty- five per centum in principal amount of the bonds then out- standing, iaclud ing but not limited to a trustee or trustees therefor, may proceed against the Town, its governing body, and its agents , officers and employees to protect and enforce the rights of any holder of bonds or coupons under this ordi- nance by mandamus or other suit, action or special proceed- ings in equity or at law, in any court of competent juris- diction, either for the appointment of a receiver or 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 protect and enforce the rights aforesaid, or thereby to enjoin any act or thing which may be lawful 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 pro- ceedings 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, -49- r the consent to any such appointment 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 . The failure of any such holder so to pro- ceed shall not relieve the Town or any of its officers, agents or employees of any liability for failure to perform any duty. Each right or privilege of any such holder (or trustee there- of) is in addition and cumulative to any other right or privi- lege and the exercise of any right or privilege by or on be- half of any holder shall not be deemed a waiver of any other right or pri,. . ".3ge thereof. SectiGl 25 . Duties 22on Defaults . That upon the happening of any of the events of default as provided in Section 23 of this ordinance , the Town in addition, will do and perform all proper acts on behalf of and for the holders of bonds and coupons to protect and preserve the security created for the payment of their bonds and coupons and to insure the payment of the principal of and interest on said bonds promptly as the same become due . All proceeds derived therefrom, so long as any of the bonds herein authorized, either as to principal or interest, are outstanding and un- paid, shall be paid into the Bond Fund, and in the event of obligations hereafter issued and outstanding during said period of time on a parity with the bonds herein authorized, into such bond funds for all "parity" obligations on an equit- able and prorated basis, and used for the purposes therein provided. In the event the Town fails or refuses to proceed as in this section provided, the holder or holders of not less than twent, five per cent in principal amount of the bonds then outstanding, after demand in writing , may proceed to protect and enforce the rights of the holders as herein- above provided Section 26. 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 -50- FILMED DOCUMENTS ARE THE BEST AVAILABLE COPIES. 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 thereon of the bonds herein authorized, anything in this ordinance contained to the contrary notwithstanding . Section 27 . Defeasance . A. By Payment. If the Town shall pay or shall cause to be paid to the holder of any bond and coupons the principal and interest and redemption price, if any, to become due thereon at the times and in the manner stipulated therein and in the Ordinance, then the pledge of the revenues of the system and other moneys and securities hereby pledged and all other rights granted hereby shall be discharged and satisfied. In such event the Paying Agent shall, upon the request of the Town, execute and deliver to the Town all such instruments as may be desirable to evidence such dis- charge and satisfaction, and the Paying Agent and any other depositary shall pay over or shall deliver to the Town all moneys or securities held by it pursuant to the Ordinance which are not required for the payment or the redemption of the bonds or coupons not theretofore surrendered for such payment or redemption. B. By Deposit for Payment . There shall be deemed to have been paid within the meaning of this section any installment of interest on, whether or not evidenced by any coupon, and any installment of principal and any re- demption price of, the bond, for the payment of which in the manner provided therein and in this Ordinance moneys shall then be held by any trustee (through deposit by the Town or otherwise of moneys for such payment on and prior to any redemption date or, if none, to their respective maturities) , including interest or other yield to be derived -51- from any investment or reinvestment of any such moneys or any part thereof in any Federal Securities , in an amount at the time of the deposit and all times subsequently at least fully sufficient to pay on behalf of the Town without any deficiency or other default such interest, principal, and any redemption price as the same become due , subject to the following pro- visions : (1) If any such bonds are to be redeemed prior to the maturity or respective maturities thereof, there shall have been taken all action necessary to redeem such bonds (or installments of principal thereof) , and notice of such redemption shall have been duly given, 4 or provision satisfactory to the trustee shall have been made for the giving of such notice ; (2) Any moneys held by the trustee for such payment or any part thereof prior to the time or times on which such moneys are needed for such pay- ment on behalf of the Town of such interest , principal, and any redemption price , without default, may be invested in any Federal Securities ; provided, however, that each such investment or reinvestment shall be scheduled by the Town Treasurer: (a) So that the Federal Securities in which moneys are so invested or reinvested, other than any such securities which shall be subject to redemption at any time at least at face value at the option of and by the holder thereof, shall become due at a time or times at or prior to the time or respective times on which the proceeds thereof shall be needed (w;.th the proceeds of any Federal Securities so subject to prior redemption by the holder thereof at the time or respective times such securities shall have been scheduled for redemption and wi c11 any other moneys held by the trustee and available for such use) to pay the designated interest or installment or installments of -52- interest on and the designated principal or installment or installments of principal and any redemption price of the bonds of the Town, as the same become due ; and (b) So that no deficiency or other de- fault shall result in the absence of a sale of any Federal Securities on the market prior to a time on which the Federal Government or other obligor is , on demand or presentation, obligated to pay a fixed sum in discharge of the whole or such obligation and on which time the Federal Securities shall have been scheduled for re- demption, at maturity or otherwise , for at least said sum; (3) Prior to any investment of any moneys held by the trustee for such payment of the Town' s securities , the trustee shall state its approval thereof in writing and shall forward a copy of its written approval to each: (a) The Town Clerk, and (b) The Town Treasurer ; and (4) NotUng herein contained shall be construed as entitling any holder of any of the bonds to the payment of the interest on and the principal and any redemption price of any such of the bonds at any time prior to the time or respective times the same become due on and prior to any redemption date or , if none , to the respective maturities of the installments of principal in the manner provided in each such bond and in this Ordinance , notwithstanding moneys for such payment may be held at any time or times prior to such due dates by any trustee fully sufficient for any such prior payment and regardless of whether or not such moneys shall at any time or times be invested or re- invested wholly or in part in Federal Securities . Section 28 . Delegated Powers . That the officers of the Town be , and they hereby are , authorized and directed -53- to take all action necessary or appropriate to effectuate the provisions of this ordinance, including, without limiting the generality of the foregoing : A. Printing Bonds . The printing of said bonds ; B. Final Certificates . The execution of such certificates as may be reasonably required by the purchasers thereof relating , inter alia , to the signing of the bonds, the tenure and identity of the municipal officials , delivery of the bonds and the receipt of the bond purchase price and the absence of litigation, pending or threatened, affecting the validity thereof ; C . P.S .C . Approval. The acquisition of the appro-val in writing of the New Mexico Public Service Commission of the utility refunding revenue bonds herein authorized ; and D. Es�:row Agreement . The execution of an escrow agreement with the Excrow Bank concerning the deposits to be made therewith in the Refunding Fund as herein provided and of any other agreement necessary or desirable to implement the provisions of this ordinance . Section 29 . Amendment of Ordinance. A. Limitations on Amendments . That this ordinance may be amended or supplemented by ordinances adopted 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 adoption of such amendatory or supplemental ordinance (not including in any case any bonds which may then be held or owned for the account of the Town, but including such refunding bonds as may be issued for the purpose of re- funding any of the bonds herein authorized if such refunding bonds are now 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 any bond, the rate of interest thereon, or the re demption premium payable thereon ; or -54- (3) The creation of a lien upon or a pledge of revenues ranking prior to the lien or pledge created by this ordinance ; or (4) A reduction of the principal amount of bonds required for consent to such amendatory or supplemental ordinance ; or (5) The establishment of priorities as be- tween bonds issued and outstanding under the pro- visions of this ordinance ; or (6) The modification of or otherwise affect- ing the rights of the holders of less than all of the bonds then outstanding . B. Notice of Amendment . Whenever the Town shall propose to amend or modify this ordinance under the pro- visions of this section, it shall cause notice of the pro- posed amendment to be published one time in a financial newspaper or journal published in the City and County of Denver, Colorado. Such notice shall briefly set forth the nature of the proposed amendment and shall state that a copy of the proposed amendatory ordinance is on file in the office of the Clerk for public inspection. C. Time for Amendment . Whenever at any time within one year from the date of the publication of said notice there shall be filed in the office of said Clerk an instrument or instruments executed by the holders of at least seventy-five per cent (75%) in aggregate principal amount of the bonds then outstanding as in this section defined, which instrument or instruments shall refer to the proposed amendatory ordinance described in said notice and shall specifically consent to and approve the adoption thereof, thereupon but not otherwise , the Board may adopt such amendatory ordinance and such ordinance shall bcc )me effective . D. Binding Consent to Amendment. If the holders of at least seventy-five per cent (75%) in aggregate prin- cipal amount of the bonds outstanding as in this section defined, at the time of the adoption of such amendatory -55- ordinance , or the predecessors in title of such holders, shall. have consented to and approved the adoption thereof as herein provided, no holder of any bond, whether or not such holder shall have consented to or shall have revoked any consent as in this section provided, shall have any right or interest to object to the adoption of such amenda- tory ordinance or to object to any of the terms or pro- visions therein contained or to the operation thereof or to enjoin or restrain the Town from taking any action pur- suant to the provisions thereof. E. Time Consent Binding. Any consent given by the holder of a bond pursuant to the provisions 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 cent (75%) in aggregate principal amount of the bonds outstanding as in this section defined have , prior to the attempted revocation, consented to and approved the amendatory ordi- nanCe referred to in such revocation. F. Proof of Instruments . The fact and date of the execution of any instrument under the provisions of this section may be proved by the certificate of any officer in any jurisdiction who by the laws thereof is authorized to take acknowledgment of deeds within such jurisdiction, that the person signing such instrument acknowledged before him the execution thereof, or may be proved by an affidavit of a witness to such execution sworn to before such officer . G� Proof of Bonds . The amount and numbers of the bonds held by any person executing such instrument and the date of his holding the same may be proved by a certifi- cate executed by a responsible bank or trust company showing -56- that on the date therein mentioned such person had on deposit with such bank or trust company the bonds described in such certificate . Section 30 . Ordinance Irrepealable . That after any of the bonds herein authorized are issued, this ordi- nance shall be and remain irrepea lable until the bonds and the interest thereon shall be fully paid, cancelled and dis- charged, as herein provided. Section 31 . 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, para- graph, clause or provision shall not affect any of the re- maining provisions of this ordinance . Section 32 . 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 33 . Emergency Clause and Effective Date . That this ordinance is necessary for the preservation of the public health, peace and safety of the inhabitants of th-- Town; by .reason of the fact that substantial savings of moneys derived from the operation of the joint system are immediately required, and since the market is presently favorable for such refunding , this ordinance is hereby de- clared to be an emergency measure on the ground of urgent public need, and, therefore , immediately upon its adoption by at least a majority of all the fully authorized members of the entire Board and upon its final passage , this ordi- nance shall be recorded in the book of ordinances of the Town kept for that purpose, authenticated by the signatures of the Mayor and the Town Clerk, and shall be published in , a newspaper published and of general circulation in the Town, in accordance with law, and said ordinance shall be in full force and effect -57- five days after such publication. PASSED, ADOPTED , SIGNED AND APPROVED this day of 1963. Mayor (SEAL) Attest : Clerk -58- a FILMED DOCUMENTS ARE..TNE BEST AVAILABLE COPIES. TEp STATES OFAM R C 1 t _ 1JN1 E f q No. R-1 STATE OF NEW MEXICO �ftJ COUNTY OF T `,OS J .i Town o Taos i � �A I 7 Single Registered. joint Water and ScWCT Extension Revenue Bond SERIES 1976 ?� The Town of Taos (the "Town"), Taos County, New Mexico, for oiler and subject to the payments required for the payment of principal value received hereby promises to pay to the registered owner hereof, ( of and interest on the outstanding Town of Taos Joint Water and ` solely from the special funds provided therefor, the principal sum above Sewer Refunding Revenue Bonds, Series July 1, 1963 (the "1963 Bonds"), stated or such lesser sum as shall represent the aggregate advances and the outstanding Town of Taos Joint Water and Sewer Extension made to the Town by the Farmers Home Administration (the ..FmHA") Revenue Bonds, Series May 1, 1973 (the "1973 Bonds"), including spec- of the United States Department of Agriculture as set forth in the ached- ifled reserves therefor, as required by Ordinances Nos 528 and 621, uto on the reverse side hereof, on November 1, In the years and Install- adopted and approved on July 1, 1963 and May i, 1973. respectively, ments as follows: sums sufficient to pay the principal and the interest on this bond and Amounts Years Amounts Years to create and maintain a reasonable and specified reserve for such Maturing Maturing Maturing Ma'uring Purpose. For a description of said funds and the nature and extent of of the security afforded thereby, reference is made to the Ordinance. S $ 5,000 1978 S30,000 1990 This 1976 single Bond is secured by and cons itutes an Irrevocable 5,000 1979 30,000 1991 and first lien (but not necessarily an exclusively first lien) upon the r 5,000 1980 30.000 1992 net revenues of the System subject and junior to the prior and superior 5,000 1981 30,OCO 1993 Ilene thereon of the 1963 Bonds and 1973 Bonds. Subject to designa'ed \ 5,000 1982 40,000 1994 conditions, additional bonds may be issued payable from -told net reve- j 5,000 1983 40.000 1995 nues and having a lien thereon Inferior and junior to the lien, or having \\\ 5,000 1984 40,000 1996 a lien thereon on a parity wl'h the lien of Ih's 1976 single Bond in 5,000 1985 40,000 1997 accordance with the provisions of the O•dinance. 10,000 1986 40,000 1998 The Town covenants and agrees with the holder hereol that it will 10,000 1988 40,000 40,000 198 _MIX) keep and (1eM0{m all the covenants of the Ordinance, including, w0houl 10,000 limiting the claWallty of the foregoing, its covenant against the sale or 30,000 1989 ;.=; mortQ a-of the il�iKem or any part thereof unless provision has been with interest on 'tie unpaid principal edvan pd->fa Oliry{.��oTt1`'the. .,medal �l jf�ythent�oWho principal of and .he intores: on this 1976 date of each suer, advance at the rate of �pr4 8biih� it11=:..' i ?. .1 RC^len! that It will fix, maintain and collect ralos annually nn May 1 and November 1 pt,.wtch a It nl I P41d, , Rm ierry t�rendersil:by`tM:SyateM sufficient to pay the annual opera- commencing on November tr t Uaon; t{QtJ�' .:per a d MalntedAn !1 nsee and d-98 hilk d twenty percent (120%6) men[ of this bond Is not hladejiM`,hlJOlni, In I' ,. .? 'Vbbgy 'prljltfpatof�,the Interest Ch1 ia0976 single Bond and any tinue at the above rate until tho 16010tV Id R, U r,I , `Dth*V11 Ugallons,-1 ClAldl�t�if��tr/ilhoutaitnitst o 'the outstanding 1963 Bonds 'i and Interest are payable In to ltltlna�f ofi 3t>< ar it k (fi{f oul4fandi 0, r$"Jode, p4able nnually from the revenues without deduction for each g "+ii,rxtileptiW+ dlr f{�1>e peffdd Of t 01tC upd1 t .rese a"re to . ' .t iuret tSDJt a ►��f.eat,c 'i d r►p r►e' "�Q " ,t .� the FmHA is the registered' �"iQ�1e e• • SOnd . > ' - at the Finance Office of tl IaC>atad 4 t tr.8t 1ttW�oi1d doe>o`r�0 cot+alltuie an ►ndoptedness or a debt of the Louis, Micaourl 63103. or 10 r'P "tfW dtNlip Town ill in the''tneAtttttp any COnetltutional or statutory provision or l note In writing end ere ll5•' if1d11r1g 7 X 1l/10f Iltflltnitirt�,Oh1111.11ot;bl coM 'or hald.to t>ga general obligation of Ih^ registered owner or i 1 1tfr �` L1/6 a eholMJr dill ,the To11gt,a�Q Is T►ol &bti"'kAlf cotieetlbla so!efy,from the pledged net in- t rey It book of the TOWL•7ho llheJ 1Jlrl�rR1 Lorpr�irl7ipa� "�11}•,'tlbgt 'dW1Med�JMM the:slperation of,the System. The holder hereof may forest due on this 1(?,y°�,y�rtyl*` Y rj! updR: BolAi'a' e�u�ydqlook toAbe perterat Ordbr any other munlCip fund lot the payment surrender to the pyydf y ri s7' "'. .'- of't! ncipal of.and into t on this Bond, Pl the special funds pledp �Vohllfor. 1 Thla bon •"IAt .`Q_r�k4. '41 -COeta:o! • k t#+ extending, enlorp 1�,;'beti4rino unq ot! p��4 tdunlcipal Th►a bond Ie:frsnnafetabii en upon books kept by the Treasurer joint water and sewert�.a., , i ' c of the es,biond re8gblraiii the t�iete owner hereof In person •Y•'••' •r^s 1r;', y.s 1 or by-his. u iirthorized,i!} n .r y of aly,.anid.stinitarl ritged hereon, or it may Installments of printL4lsa� is :.dt10 d+1p1 A titivembst t be•sorrelrWili ed W gxchrige for'new borldstlof the same series, same 1, 1985 are not payable ptlOr}p dhtrra;ti ttftt file ElnHA II rreate prlr�Ctpal li f►cilnt,lift -form Cr In serial rogistercd form. Is the registered ownef: "40 A 10a ill Iltl>rred.dWllar';1,1Wtha danpmtnatfbrIZ-61F.41 r0 eaChrifo the;extitnl practicable and con- r con- hereof, all installments alp asub t13 fi {t7 tlMnt DIY.In- .*161$nt'With,the tnatu ,�'eChedule-protrlded 19, and subject to, the con- latest payment date prior,tQ tr►taldd, '. to 1y'a f ill(pris oMt>Torth to till/ hrditlBnce.q / amount of $1.01 or multlptlls`the �} •° +, � r' 'i b '� " by the payment of such prj ►pa f tq,;tttei i Thi$"1f179,r..t t}� >t j p"bo1;:gpeinst payment for the bond prepayment dote. Insiallmonta tt81So dt1 yr riFu p ��Ilan.but 0aldi pUJCttaas pride may be paid to the Town ,'• 1986, are subject to prepaytrfint pfto !� d'• tMt.As In e :r�"'th#,'or mw,e..adv*nce3Mjn ko0rdanrg with the schedule on the re- amount of $1,003 or multi los th • t` ^^�P;a h✓ tTh11 r1111C1pai AM rd of this Bond shall not exceed dT6o�'`-rl •` $dtll.'':1n.1M;'b� , P :. R.'. . , °i' v , verse order of maturity, On Hove.�n�+.1f':, tltr�bf4Y'pa�., �o'�rlOtua Coif 'p1M1 t4'+!1>f 7o�lin.ard Interest shall accrue on the moot date thereafter, by the paymerlt abM thl ifif�lt hd>� unf` t 1A vatSCd•02; rom the dale each advance Is paid. In Interest to the prepayment date. The t11o'l�tlttl(�1,�(pal amount of this 1976 single Bond is not 1 is op110n, to prepay installments of princpal'_ r6et" 1t1er1f`J ,'flte.,ptlnttp8l>Jtlsiellments set forth above shall be reduced date In inverse order of maturity in the am&iit`Ct• i, {nuldpbeY h •;�� ` et �l.`�hturtty accordingly, thereof and accrued Interest to the prepayment dafe lrtinr'OxCesa'bond i It- is Certified, reci;cd and warran ed that all the requirements J Procoedu. Prepayment shall be made upon notice given rate provided in of law hnva'been fully complied wi h by the proper Town officers in �fr Ordinance No. 640 adopted and approved on June 10, 1976,-aulhorizing the issuance of this Bond; and that it is issued pursuant to and in strict the issuance of this Bond (the "Ordinance"). conformity with the Constituticn and taws cf the Sia:o of New Mexico and Payment of this 1976 single Bond and in'eresl thereon shall be paricularly under Vie terms and prov.sions of Sections 14-30.1 to 14- made solely from, and as security for such payment there are pledged. 30-11. inclusive, New Mexico Son utes Annotaled, 1953 Compilation, a• r. 7� j-tt•' t pursuant to the Ordinance, two special funds lientilied as the "Town amended, and all laws thereun;o enabl ng and supplemental thereto r, of Taos Joint Water and Sewer Extension Revatiue Bonds. Series 1976 IN WITNESS WHEREOF, the Town has caused this Bond to be t 1 11 interest and Bond Retirement Fund" and the "Town of Taos Joint Water signed ird executed :n its narre by :he Mayor of the Town, to be signed ,11• I and Sewer Extension Revenue Bonds. Series 1976 Reserve Fund" into by the Town Treasurer, has caused the seal of :he Town to be affixed I which the Town covenants to pay respectively, from the revenues of its hereto, and to be a:tes:cd by the Town Clerk, all as of the dare of the joint water and sower system (the "System'), after provision only for all necessary and reasonable operation and maintenance expenses and delivery hereol which ;s __ 197 ,•'; p ., ATTEST TOWN OF TAOS BY /.. ----- TOWN•CLERK • • • a w - _ M I'll OR • • r • - � � TOWN TREAriu RER FILMED DOCUMENTS ARE THE BEST AVAILABLE COPIES. ASSIGNMENT PROVISION For Value Received, hereby assigns and transfers unto the within bond, together with accrued interest thereon, hereby appointing — - — ------ — ------ - attorney to transfer this bond on the books of the Town of Taos at :he Office of the Treasurer of the Town with full power of substitution in the premises. Dated: _------ - ---.—.—..— — - —_...— - --- -- r TT� PR mom_ Y ` _ CZ ,t t cd C 0 � W Z i 0 TA a+ O r2 W } r �y. cd N < k t.. W Q 3 a 1 ►�- r m n. 0 u. W4. 0 � 0 I m W LL W s"• O �I ", � w � \ Z � Q Fo W z Q I � � WO WZ zW � Z �.< i .a o i lr z W U) " " o 0 Z U �, > z W z p Q z x ! Z N G W .J d Z Z < Q Q V .S ., "v�' v N i / 13 -� < Z tL � ���Illrrry�� i IW.. O bb c I a Z Q u Q a LL . I U Q aW F. z z IL WtWc }' v ► 0IL 3 a aC ti<i: t Cn N U1 }. ex-' INSTALLMENT LOAN ADVANCES BY GOVERNMENT The FmHA on behalf of the United States of America loaned to the Town the respective amounts of principal on the respective dates hereinafter designated, the sum of which amounts constitutes the aggregate principal amount of the within 1976 single Bond, as follows: Date of Loan Amount of Loan — — Signature of Town's Treasurer I I I t I ( MANDATORY REGISTRATION FOR PAYMENT AS TO PRINCIPAL AND INTEREST The within 1976 single Bond is registered in the Office of the Treasurer of the Town of Taos, Taos County, New Mexico, as Registrar, in the name of the last owner listed below; and the principal amount of the Bond and interest there- on shall be payable only to such owner, all in accordance wi,h the ordinance authorizing the Bond's issuance. Date of Name of Address of j Signature of Registration Owner I Owner Registrar United States of America, Finance Office 1520 AAarket•$trGet •„ FUrmers Homo Administration St. Louis, Hi$soLOi 03t03 ; I i I I