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