621 TOWN OF TAGS
ORDINANCES
YEAR,
NUMBER. (�2 �
ORDINANCE NO._
1
AN ORDINANCE PROHIBITING THE OPERATING OR RIDING OF A MOTORCYCLE
WITHOUT WEARING AN APPROVED SAFETY HELMET.
BE IT ORDAINED by the Mayor and the Council of the 'Town of
Taos that it shall be unlawful to operate a motorcycle unless the
operator is wearing a safety helmet securely fastened on his head
in a normal manner as head gear and which safety helmet meets the
standards specified by the Motor Vehicle Commissioner of the Statri
of New Mexico. It shall also be unlawful for any person to rids on
a motorcycle as a passenger unless said pasrm*�iger is wearing e
securely fastened safety helmet of the type specified above. Lastly,
no dealer or person who leases or rents motorcycles shall lease or
rent a motorcycle unless the lessee or renter shows such persm a
valid operator's license or permit and possesses the safety equip-
ment req"ired of the operator of such motorcycle.
The violating of the provisions of this Ordinance shall be
deemed a petty misdemeanor and shall be punishable as such.
PASSED MD ADOPTED at Taos, New Mexico, on this the 19th day
of w7une, 1973.
C.'Ad
MAY
ATTEST s
l i
TOWN CLERK
J
TOWN OF TAOS
ORDINANCES
YEAR,* 9 I 7J
NUMBERS �j�
FILMED DOCUMENTS
ARE THE BEST AVAILABLE COPIES
ORDINANCE NO.
AN ORDINANCE PROVIDING FOR THE EXTENSION, ENLARGE-
MENT , BETTERMENT AND OTHER IMPROVEMENT OF THE MUNICI-
PAL JOINT WATER AND SEWER SYSTEM OF THE TOWN OF TAOS,
NEW MEXICO; DECLARING THE NECESSITY FOR MAKING AND
ISSUING THE TOWN' S JOINT WATER AND SEWER EXTENSION
REVENUE BONDS , PAYABLE SOLELY OUT OF THE NET INCOME
TO BE DERIVED FROM THE OPERATION OF SUCH JOINT SYSTEM;
AUTHORIZING THE ISSUANCE AND SALE OF SUCH REVENUE BONDS
IN THE AGGREGATE PRINCIPAL AMOUNT OF $200 , 000; PROVID-
ING FOR THE DISPOSITION OF THE INCOME TO BE DERIVED
FROM THE OPERATION OF SAID JOINT SYSTEM; ADOPTING BY
REFERENCE CERTAIN PROVISIONS OF ORDINANCE NO. 528 ,
ADOPTED AND APPROVED ON JULY 1, 1963 ; PRESCRIBING OTHER
DETAILS CONCERNING SAID REVENUE BONDS, INCLUDING BUT
NOT LIMITED TO COVENANTS AND AGREEMENTS IN CONNECTION
THEREWITH; RATIFYING ACTION PREVIOUSLY TAKEN CONCERN-
ING SAID JOINT SYSTEM AND SAID BONDS; REPEALING ALL
ORDINANCES IN CONFLICT HEREWITH; AND DECLARING AN
EMERGENCY.
WHEREAS, the Town of Taos (herein "Town") , Taos County ,
New Mexico , now owns, operates and maintains a joint public
utility constituting a joint water and sewer system (herein some-
times designated as the "system" , the "joint system" or the "joint
utility") ; and
WHEREAS, the Town pursuant to Ordinance No . 528 , duly
adopted and approved on July 1, 1963 , has heretofore issued and
delivered all bonds of the issue designated "Town of Taos Joint
Water and Sewer Refunding Revenue Bonds, Series July 1, 1963"
(herein the "1963 Bonds") , in the aggregate principal amount of
$405 ,000 , dated July 1, 1963 , consisting of 45 bonds in the de-
nomination of, $1 , 000 and $5 ,000 each, of which issue there are
outstanding and unpaid bonds in the aggregate principal amount
of $267 ,000; and
WHEREAS, all of the bonds refunded by the 1963 Bonds
now have been paid in full and redeemed, e.g. principal , interest
f and any prior redemption premium; and
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NOTICE OF SPECIAL MEETING
TO THE BOARD OF TRUSTEES
OF THE TOWN OF TAOS
COUNTY OF TAOS , STATE OF NEW MEXICO:
NOTICE IS HEREBY GIVEN that a special meeting of the
Board of Trustees of the Town of Taos will be held at the Town' s
Municipal Offices in the Town of Taos, County of Taos and
State of New Mexico at ;Is m. , on , the /s/ day of
, 1973 , for the purpose of considering action relating
to the Town' s joint water and sewer system and for the trans-
action of such other business incidental to the foregoing as
may come before said meeting.
l
2mor
Town Clerk
v'
ACKNOWLEDGMENT OF NOTICE AND
CONSENT TO SPECIAL MEETING
We, the undersigned members of the Board of Trustees of
the Town of Taos , do hereby acknowledge receipt of the foregoing
notice of a special meeting, and we hereby waive any and all
irregularities, if any, in such notice and in the manner of ser-
vice thereof upon us, and consent and agree to the holding of
such special meeting at the time and place specified in said
notice, and to the transaction of any and all business which may
come before such meeting.
4e'ILA
Boar o Trustees
Town of Taos
Taos County, New Mexico
STATE OF NEW MEXICO )
COUNTY OF TAOS ' ) SS.
TOWN OF TAOS )
The Board of Trustees of the Town of Taos in the
County of Taos and State of New Mexico, met in ses-
sion, in full conformity with law and the ordinances and rules
of said Board at the Town's Municipal Offices on Armory Street
s
in the Town of Taos , being the regular meeting place of said
Board at the hour of 5:15 p .m. , on uc r �_3,4e the sr day of
1973, and upon roll call the following were found
to be present, constituting a quorum :
Present:
Mayor , Phillip Cantu, Jr.
Trustees: Lawrence Santistevan
Fernando Valdez
Martin Vargas
Eloy Jeantete
Absent : AA r-f ;fi l%Lr:acts
constituting all the members thereof .
There were also present:
Clerk : Josephine Gonzales
Town Attorney: Eliu Romero
Treasurer :
City Manager: Nestor Gallegos
Thereupon, the following proceedings, among others ,
were had and taken, to-wit:
Trustee jE(24 p�NcLn tee c introduced the following
ordinance, which was thereupon read in full and is as follows :
-1-
o ,
ORDINANCE NO. b� I
AN ORDINANCE PROVIDING FOR THE EXTENSION, ENLARGE-
MENT, BETTERMENT AND OTHER IMPROVEMENT OF THE MUNICI-
PAL, JOINT WATER AND SEWER SYSTEM OF THE TOWN OF TAOS,
NEW MEXICO; DECLARING THE NECESSITY FOR MAKING AND
ISSUING THE TOWN' S JOINT WATER AND SEWER EXTENSION
REVENUE BONDS , PAYABLE SOLELY OUT OF THE NET INCOME
TO BE DERIVED FROM THE OPERATION OF SUCH JOINT SYSTEM;
AUTHORIZING THE ISSUANCE AND SALE OF SUCH REVENUE BONDS
IN THE AGGREGATE PRINCIPAL AMOUNT OF $200 , 000; PROVID-
ING FOR THE DISPOSITION OF THE INCOME TO BE DERIVED
FROM THE OPERATION OF SAID JOINT SYSTEM; ADOPTING BY
REFERENCE CERTAIN PROVISIONS OF ORDINANCE NO. 528 ,
!, ADOPTED AND APPROVED ON JULY 1 , 1963 ; PRESCRIBING OTHER
DETAILS CONCERNING SAID REVENUE BONDS, INCLUDING BUT
NOT LIMITED TO COVENANTS AND AGREEMENTS IN CONNECTION
THEREWITH; RATIFYING ACTION PREVIOUSLY TAKEN CONCERN-
ING SAID JOINT SYSTEM AND SAID BONDS; REPEALING ALL
ORDINANCES IN CONFLICT HEREWITH; AND DECLARING AN
EMERGENCY.
WHEREAS, the Town of Taos (herein "Town") , Taos County,
New Mexico, now owns , operates and maintains a joint public
utility constituting a joint water and sewer system (herein some-
times designated as the "system" , the "joint system" or the "joint
utility") ; and
WHEREAS, the Town pursuant to Ordinance No. 528 , duly
adopted and approved on July 1, 1963 , has heretofore issued and
delivered all bonds of the issue designated "Town of Taos Joint
Water and Sewer Refunding Revenue Bonds, Series July 1 , 1963 "
(herein the "1963 Bonds") , in the aggregate principal amount of
$405 ,000 , dated July 1 , 1963 , consisting of 45 bonds in the de-
nomination of $1 , 000 and $5,000 each, of which issue there are
outstanding and unpaid bonds in the aggregate principal amount
of $267 ,000; and
WHEREAS, all of the bonds refunded by the 1963 Bonds
now have been paid in full and redeemed, e.g. principal , interest
and any prior redemption premium; and
-2-
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 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 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, 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
WHEREAS , the gross income anticipated to be derived
from the system 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 Bonds) ; 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.
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1
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 "5-1-73 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 .
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(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" , " stem" , or "Utility" 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
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
payment of the 5-1-73 Bonds, any interest thereon and
any prior redemption premium in connection therewith.
(9) "Project" means extending, enlarging ,
bettering and otherwise improving the joint system.
(10) "Purchaser" means Robert E. Schweser
Company, Omaha, Nebraska .
C. Construction. Definitions include both singular
and plural . Pronouns include both singular and plural and cover
all genders.
Section 2 . Ratification. All action heretofore taken
(not inconsistent with the provisions of this ordinance) by the
Board 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 con-
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,
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excluding any such 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 income being the gross income after de-
duction only for the necessary and reasonably: 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 $ 51000 5. 00% 1915
2 51000 5. 00% 1976
3 51000 5. 00% 1977
4 51000 5 . 35% 1978
5 51000 5. 35% 1979
6 51000 5 .35% 1980
7 51000 5.35% 1981
8 51000 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
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i
Each of the bonds shall bear additional interest from the lst
day of May, 1973 , to the 1st 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 cc
to draw interest at the "A" rate specified in the Bond unt ie
principal thereof is paid in full .
Section 6 . Prior Redemption. Bonds maturing on and
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 1st 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 notice shall be sent by registered
mail at least 30 days prior to the redemption date to the
Purchaser . 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 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.
Section 7 . Negotiability. Subject to the provisions
specifically made or necessarily implied herein, the bonds and
coupons appertaining thereto shall be fully negotiable and shall
-7-
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 the 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 5-9-6 , 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:
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�4
(Form of Bond)
UNITED STATES OF AMERICA
STATE OF NEW MEXICO COUNTY OF TAOS
TOWN OF TAOS
JOINT WATER AND SEWER EXTENSION REVENUE BOND
SERIES MAY 1 , 1973
NO. 6J/ $5 , 000 . 00
The Town of Taos (herein sometimes designated as the
"Town") , in the County to Taos and State of New P4exico , 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_2-:�, the principal sum of
FIVE THOUSANr .,OLLARS
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 desia--
nated "A" plus additional interest from the first day of May ,
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
-9-
t
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 hald 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 day of /VC I 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 Water 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 spec i-
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 vade 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 oay--
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 exclusive—y first lien) upon the
revenues of the system, subject and junior to the limn 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
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i
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 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
payable annually from the revenues of 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 accepting the same agrees with the obligor
and every subsequent holder hereof, that (a) the delivery of this
bond to any transferee shall vest title in this bond and in the
interest coupons attached hereto in such transferee to the same
extent for all purposes as would the delivery under like circum-
stances of any negotiable instrument payable to bearer ; (b) the
obligor and any agent of the obligor may treat the bearer of this
bo:.d 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 appertaininil 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.
-11-
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)
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1
(Form of Coupon)
Coupon
No . * $
May
On the first day of November, 1973, 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 red(:mption, 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
r, derived from the operation of the joint water and sewer system
of said Town, being the interest then 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
* Designate "A" or "B" , whichever is appropriate.
(End of Coupon Form)
i
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Section 11 . Period of Project ' s Usefulness. It is
hereby determined and recited that the period of usefulness of
the facilities 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 Bona Proceeds .
A. Accrued Interest and Premium. All moneys received
as accrued interest at the time of delivery of the bonds herein
authorized from the sa'-.e 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 Fund " .
The Moneys in the 5-1-73 Acquisition 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 moneys are
withdrawn for any construction work in connection with the Project ,
the Consulting Engineer first shall file with the Town Clerk writ.-
ten approval certifying that the amount to be paid is due and ow-
inq for construction work on the Project .
C. Purchasers Not Responsible . That the Purchasers
of 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 ordinances the system shall be operated upon a fiscal year
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4
t
i
basis, commencing on the 1st day of July in each year and end-
ing on the 30th day of June of the next succeeding year.
Section 15. Income Fund. 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 system shall continue to be set aside and de-
posited in an Insured Bank into the special fund created by
Suction 14 of Ord. No. 528 , and known as the "Town of Taos Joint
Water and Sewer System Gross Income Fund" , herein sometimes desig-
nated .is 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 of the fiscal year and not needed for operation
and maintenance purposes , shall be transferred to the Income
Fund and be used 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
remander 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 Extension Revenue Bonds , Series May 1 , 1973 ,
Interest and Bond Retirement Fund" , (herein sometimes
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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 moneys 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 one-sixth 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 mater and Sewer Extension Bonds ,
Series May 1 , 1973 , Reserve Fund" (herein sometimes desig-
nated as the 115-1-73 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
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i
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-
a 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, ; i 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 to 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
the 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
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for the purpose of paying the principal of and the interest on
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 the redemption of bonds hereby authorized as they
become due or on any redemption date; and provided that any
monevs 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
anO 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 may be invested as provided
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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 anv 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 be
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 pav-
ment shall be made on the next preceding secular day. Nothing
herein shall prevent the establishment of one such bank account
or more , for all 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. Equalit•► of Bonds . That the Bonds autho-
rized to be issued hereunder and from time to time outstandinq
shall not be entitled to any priority one over the other in the
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application of the revenues of the system, regardless of the
time or times of their issuance , it being the intention of the
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 riot
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 subordinate obligations , as permitted in para-
graph B of Section 21 hereof :
(1) The Town is then current in the accu-
mulation of all 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 fiscal 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 nf the outstanding
j 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
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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
to 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- 16 j
on a parity with the bonds herein authorized. The Independent
Accountant in making such written certification where a schedule
of rate increases has become effective during or after such preced-
ing fiscal year may rely on tho 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 and remain 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 bonds 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-
gardless 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 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
systern of the outstanding obligations so refunded
is on a parity with the lien thereon of the Bonds
herein authorized; or
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(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 }colder 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
J imposed upon the Town by any proceedings authorizing the issuance
i 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 �-uch
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 `-onds or other refund-
ing obligations 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
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paragraphs B to T, inclusive, Section 22 of Ord. No. 528
shall inure to the benefit of the holder or holders from
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 ot.herwise.
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,
Inc . " 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.
I . 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
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5
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 2_' 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
y, are by reference thereto hereby adopted and incorporated as
pert 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 . Amendment. 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 Mexico ,
without receipt by the Town of any additional consideration but
with the written consent of the holders of seventy-five per cent
(75%) of ..he 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 shall 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
.2,-
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(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
r: 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 provi-
sion shall not affect any of the remaining provisions of this
ordinance.
Section 30. Repealer Clause. That all bylaws , orders ,
resolutions 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 public 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 nurpose , 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 nnwapaper which maintains an office in and is
of general circulation in the Town, in accordance with law, and
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fi
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;
t
-27-
(Form of Summary of Ordinance for Publication)
TOWN OF TAOS, NEW MEXICO
NOTICE OF ADOPTION OF ORDINANCE NO.
Notice is hereby given of the title and of a
general summary of the subject matter contained in Ordinance
No . duly adopted and approved by the Town of Taos , New
Mexico , on ) L, 1973 . A complete copy of Ordinance No .
6,3 4 , as well as of Ordinance No. 528 , adopted and approved on
July 1 , 1963 (herein "Ord. No. -28") (a portion of Ord . No . 528
being incorporated by reference in Ordinance No . ) are
available for public inspection during the normal and regular
business hours of the Town Clerk in the office of the Town Clerk,
Town Hall , Taos , New Mexico.
The title of Ordinance No . 3/ is :
AN ORDINANCE PROVIDING FOR THE EXTENSION, ENLARGEMENT,
BETTERMENT AND OTHER IMPROVEMENT OF THE MUNICIPAL
4 JOINT WATER AND SEWER SYSTEM OF THE TOWN OF TAOS , NEW
r4EXICO; DECLARING THE NECESSITY FOR MAK"T.NG AND ISSU-
ING THE TOWN' S JOINT WATER AND SEWER EXTENSION REVENUE
BONDS , PAYABLE SOLELY OUT OF THE NET INCOME TO BE
DERIVED FROM THE OPERATION OF SUCH JOINT ,SYSTEM;
AUTHORIZING THE ISSUANCE AND SALE OF SUCH REVENUE BONDS
IN THE AGGREGATE PRINCIPAL AMOUNT OF $200 , 000; PROVID-
ING FOR THE DISPOSITION OF THE INCOME TO BE DERIVED
FROM THE OPERATION OF SAID JOINT SYSTEM; ADOPTING BY
REFERENCE CERTAIN PROVISIONS OF ORDINANCE NO. 528 ,
ADOPTED AND APPROVED ON JULY 1 , 1963 ; PRESCRIBING OTHER
DETAILS CONCERNING SAID REVENUE BONDS , INCLUDING BUT
NOT LIMITED TO COVENANTS AND AGREEMENTS IN CONNECTION
THEREWITH; RATIFYING ACTION PREVIOUSLY TAKEN CONCERN-
ING SAID JOINT SYSTEM AND SAID BONDS; REPEALING ALL
ORDINANCES IN OONFLICT HEREWITH; AND DECLARING AN
EMERGENCY.
The following is a general summary of the subject matter
contained in Ordinance No . 6 D-/
Preambles recite such matters as the existence of the
Town, its ownership of a joint water and sewer system ( "system") ,
its outstanding Series July 1, 1963 bonds payable from the reven-
ues of the system (herein "1963 bonds" ) , all bonds refunded by
the 1963 bonds have now been paid in full , the need to extend,
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enlarge , better and otherwise improve the system (herein "Project") ,
the inability to meet certain provisions of Ord. No. 528 relat-
ing to the issuance of additional parity lien bonds, the
existence of available income from the system for the payment
of additional revenue bonds to be junior and subject to the lien
of the 1963 bonds, the sale of the 1973 Bonds to Robert E.
Schweser Company, Omaha , Nebraska, for par and accrued interest .
Sections 1 through 4 define terms (incorporating by
reference many definitions in the aforesaid Ord. No. 528) , ratify
action by officers of Town in connection with the Project and the
Town of Taos Joint Water and Sewer Extension Revenue Bonds,
Series Play 1, 1973 ( 111973 bonds") , in the principal amount of
$200 ,000 , authorize the Project and the 1973 bonds, the principal
and interest of which are payable solely out of the net income
from operation of the system.
Section 5 gives details of the 1973 bonds including
but not limited to : dating the bonds May 1 , 1973 ; specifying 40
bonds in the denomination of $5 ,000 each; providing that said
bonds shall bear one set of interest coupons designated "A" from
date to the maturity of the bonds and a second set of coupons
designated "B" from May 1 , 1973 to November 1 , 1977 , or maturity
(whichever is earlier) , all interest being payable May 1 , and
November 1 , of each year , commencing November 1 , 1973 , the place
and manner of payment of principal and interest of the bonds;
and providing that the bonds shall mature serially in varying
amounts on November 1 of the years 1975 through 1988 , and bear
varying "A" rates of 5% , 5 . 35%, 5 .60% , 5. 70% and 5 .80% per annum
for different bonds and a "B" rate of 2 .17% per annum, and
provide for continuation of interest upon nonpayment of principal
at maturity.
Section 6 through 11 provide for the prior redemption
of the bonds under specified terms and conditions , provide
that the bonds and coupons are negotiable ;;istruments under -the
Uniform Commercial Code and are special obligations payable
from the net revenues of the system, provide for the form and
method of execution of the 1973 bonds and coupons and determine
the period of usefulness of the Project.
Sections 12 through 19 provide for the execution and
delivery of the 1973 bonds; for the disposition of the proceeds
of the 1973 bonds into several funds and obligations in con-
nection therewith, for the fiscal year , for the continuation
of the Income Fund of the system, for the Bond Fund and Reserve
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Fund for the 1973 bonds (after provision for the bond fund.
and reserve fund for the 1963 bonds) , and other details con-
cerning said funds and net revenues of the system, for the
administration of all funds and accounts created or continued
by the ordinance , for the investment of moneys in the funds ,
the character of the funds, the places and times of deposit of
the money in the funds , that the 1973 bonds constitute a first
lien (but not an exclusively first lien) on said net revenues
subject and junior to the lien thereon of the 1963 bonds , and
for equality among the 1973 bonds in the application of the
net revenues.
Sections 20 through 22 set out the terms and condi-
tions under which parity lien bonds may be issued; permit the
issuance of bonds having a subordinate lien; prohibit the issu-
ance of bonds having a superior lien, set out the terms and
conditions relative to refunding bonds and provide for protec-
tive covenants whereby the Town covenants with each bondholder
(most of said provisions being incorporated by reference from
i
Section 22 of ordinance No. 528) , for the protection of each
bondholder covering such matters as use of bond proceeds ; prompt
payment of principal of and interest on the 1973 bonds; charges
for the use of the system; levy of charges; efficient operation
of the system; records , right to inspect the system, audits and
reports concerning the system, billing procedure , use of 1973
Bond Fund and Reserve Fund, charges and liens upon the system ,
insurance , prohibition against competing system and alienating
system and extending interest payments , surety bonds, additional
bonds, competent management, faithful performance of duties of
Town, other liens , Town ' s existence and completion bonds .
Sections 23 through 32 incorporate by reference
Sections 23 to 27 of Ordinance No . 528 relative to events of
default and remedies for and duties upon default , provide for
prior charges upon lower rates and defeasance , delegate cer-
tain powers to Town officials, provide for amendment of this
ordinance , state this ordinance is irrepealable, provide for
severability, repealer and emergency clauses , and provide for
the effective date of this ordinance and this form for publication.
There also is contained a statement by the Mayor
that this ordinance is an emergency (stating the reasons there-
for) and that publication prior to adoption is unnecessarv.
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WITNESS my hand and the seal of Taos, New Mexico,
this '-� day of 1973 .
7—
C r
(SEAL)
(End of Form of Summary of Ordinance for Publication)
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PASSED, ADOPTED, SIGNED AND APPROVED this 15*
day of 1973 .
ayor
(SF,AL)
Attest :
{/ T Clerk
i
I, Phillip Cantu, Jr. , Mayor of the Town of Taos,
New Mexico, do hereby declare that an emergency exists with re-
spect to the foregoing ordinance (i.e. No. 621) because the
Project therein described is necessary to alleviate an ima- ediate
danger to the public health, safety and welfare of the Town
and because payments to the contractor in connection with the
Project must be made from the proceeds of the bonds described
in such ordinance as soon as possible; and any publication of
such ordinance prior to its adoption hereby is declared to be
unnecessary.
WITNESS my hand this Srt day of Play, 1973 .
M yor
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Thereupon the Mayor declared that such ordinance is
an emergency and that publication prior to adoption by the
Board is unnecessary, such declaration being set forth in full
in the statement attached to such ordinance .
It was then moved b Trustee and
�a Y le,s Sen.n�re t�
seconded by Trustee Ferncl ,do V_ydQthat all rules of this Board
which might prevent, unless suspended, the final passage and
adoption of this ordinance at this meeting be, and the same
hereby are, suspended for the purpose of permitting the final
passage and adoption of this ordinance at this meeting.
The question being upon the adoption of said motion
and the suspension of the rules, the roll was called with the
following result:
Those voting Aye : Lawrence Santistevan
Fernando Valdez
Martin Vargas
Eloy Jeantete
! Those voting Nay:
}� Those absent :
- members of the Board having voted in favor of
said motion, the presiding officer declared said motion carried
and the rules suspended.
Trustee c "ed_„re_tp_then moved that said ordinance be
passed and adopted as read. Trustee le,netn �o 1&U.,seconded the
motion. The question being upon the passage and adoption of
said ordinance , the roll was called with the following result :
Those voting Aye: Lawrence Santistevan
Fernando Valdez
Martin Vargas
Eloy Jeantete
Those voting Nay: A161 n
Those absent: (A�,_t,'n 11 qf� S--
T
The presiding officer thereupon declared that
Trustees having voted in favor thereof, the said motion was carried
and the said ordinance duly passed and adopted by a three-fourths
majority of the entire Board.
Trustee x/d,z , c, 7ete-introduced the following ordinance ,
which was thereupon read in full and is as follows :
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