Res 776-50 ~SOLUTION NO. 776
A ~SOLUTION AUTE0~[IZil~G Tf~ ISSUANCE OF
~1,080,000 ~UNDING BONDS, SERIES 1951,
OF T[~ CITY OF DELPu~Y BEACH, FLORIDA,
~ND ~OVIDING l::'Oi[ TI~E Pi~NT OF T~
INTE~ST ON ~h~D PI{INCIP~ OF SAID BGNDS.
W~~ the City of Delray Beach, Florida, heretofore
issued and rmw has outstanding its General Refunding Bonds in the
aggregate principal amount of ~1,119,215~ consisting of Series A
Bonds, dated July 1, 1938, in the principal amount of ~810,165,
numbered 1 to 13; 15 to 28; 35 to 52; 56 to 82; 93 to 111; 140 to
141; 151 to 184; 190 to 241; 247 to 356; 362 to 396; 401 to 428;
439 to 440; 442 to 463; 465 to '476; 482 to 486; 488 to 507; 511
to 526; 532 to 546; 552 to 631; 652 to 681; 682; 734; 737; 742; 746
to. 747; 754 to 791; 795; 797.to 799; 802 to 803; 805 to 829; 835 to
873; 878 to 902; 909 to 996; 998 to 1029.
and ~eries B Bonds, dated July 1, 1940, in the principsl amount
of ~309,050, numbered 2 to 61; 63 to 73; 76 to 139; 141 to 165;
167 to 191; 207 to 256; 273 to 276; 280 to 345; 347 to 350; 357~
all of which bonds currently bear interest at the rate o£ three
per cent (3~) per annum, but same increases at five year intervals
to five per cent (5~) per annum; and
W}~EAS all of said bonds were issued for the purpose of
refunding indebtedness of said city which was outstanding prior to
November 6, 1934, and were authorized and issued in such manner
that they are payable from taxes to be levied ~ithout limitation
as to rate or amount on all taxable property, including homesteads,
which was s~bject to taxation for the payment of the indebtedness
to be refunded, including the territory excluded by acts of the
Legislature of Florida adopted in 1927 and 1937, but not including
the part of the present City of Delray Beach which formerly was
included in the Town of Delray Beach; and
~[E~ said bonds mature July 1, 1968, b~t may be called
for prior redemption anq by reason of present favorable rates For
public financing, it is for the best interests of said city that
said outstandin~ bonded indebtedness be refinanced to the amount
of $1,080,000 through the 'issuance of ~[efunding Bonds, Series
1951, of said city, as hereinaf~r authorized; and
WHE~ said city has money available in the sinking fund
established for said bonds in an amount sufficient to pay the
interest wtlich will accrue thereon to January 1, 1951, and to pay
principal thereof to the amount of 339,215, but does not have money
available for the payment of the remainder of the principal; and
Wt~AS said city is authorized by Chapter 132 of the
Florida Statutes to issue its refunding bonds in the manner here-
inafter provided, and all acts, conditions and things required
thereby and by the Constitution and Laws of the State of Florida,
including Section 6 of Article IX of the Constitution of Florida,
to exist, happen or be performed precedent to the issuance of such
refunding bonds, have happened and been performed in regular and
due time, form and manner;
NoW, T~'ORE,Be it and It is Hereby Resolved by the
City Council of the City of Delray Beach, Florida, as follows:
Section 1. That the bonds of the City of Delray Beach
(sometimes hereinafter referred to as "the city") described in th~
preamble hereto constitute a valid outstanding funded indebtedness
of the city, payable as recited in said preamble. For the purpose
of refunding said bonds to ~e amount of ~1,080,000, there are
hereby authorized to be issued a like principal amount of negotiable
coupon bonds of the city, to be designated "Refunding Bonds, Series
1951".
Section 2. That such Refm~ding Bonds shall be dated
January 1, 1951, shall be in the denomination of ~1,000 each, shall
be numbered from 1 to 1080, inclusive, shall bear interest from
date~ until paid at the foll~ng designated rates, payable semi-
annually on January 1 and July 1 of each year, shall be payable
as to principal and interest in lawful money of the United States
of ~erica at Irving Trust Company, in the City of New York, New
York, and shall become due serially in numerical order on January
1 of each year and bear interest as follows:
Bond Numbers Amount Year Interest Rate
1 to 40 ~40,000 1952
41 to 8~ 42,000 1953 2%
83 to 125 43,000 1954
126 to 170 45,000 1955 2-1~2~
171 to 216 46,000 1956 2-1/2~,~
--~--
Bond Numbers ~mount Year Interest Rate
217 to 263 347,000 1957 2-1/2~
264 to 312 49,000 1958
313 to 362 50,000 1959 2-1/~
363 to 413 51,000 1960 2.65~
414 to 466 53,000 1961 2.65~
467 to 520 54,000 1962 2.65~
521 to 576 56,000 1963 2.65~
577 to 633 57,000 1964 2.65~
634 to 692 59,000 1965 2.659
693 to 753 61,000 1966 2-3/4~
754 to 816 63,000 1967 2-3/4~
817 to 880 64,000 1968 2-3X4}{
881 to 946 66,000 1969
947 to 1012 66,000 1970 2-3~4~
1013 to 1080 68,000 1971 2-3/4~
Bonds numbered 414 to 1050, inclusive, shall be optional for
redemption prior to maturity in whole or from time to tlme in part
the inverse order of their numbering on January 1, 1960 and
January 1 and July 1 of any year thereafter; and in the event
any of said bonds are called for redemption as aforesaid, notice
thereof identifying the bonds to be redeemed shall be given by
publication at least once not less than thirty days prior to the
redemption date, in a newspaper or financial journal of general
circulation published in the City of New York, New York, and it is
agreed that should any of said bonds be called for redemption prior
maturity as aforesaid, the city shall pay to the holder aport
surrender of each bond, interest in addition to that evidenced
interest coupons then accrued in an amount equal to two and
one-half per cent (2-1/2};) of the principal amount thereof for each
-bond to be so redeemed in 1960, two per cent (2~) of the principal
amount thereof for each bond to be so redeemed in 1961, one and
one-half per cent (1-1/2;~) of the principal amount thereof for each
bond to be so redeemed in 1962, one per cent (1~) of the principal
amount thereof for each bond to be so redeeme~ in 1963, and one-half
one per cent (1/2 of 1~) of the principal amount thereof for
each bond to 'be so redeemed in 1964. No additional interest shall
payable for any bond to 'be so redeemed in 1965 and subsequent
years.
Each of said bonds shall be signed for and on behalf of
the city by the Mayor and attested by the City Clerk, and the
corporate seal of the city shall be affixed to each of said bonds.
Interest falling due thereon on and prior to maturity shall be
represented by appropriate interest coupons to be attached to the
bonds, which coupons shall be executed by the facsimile signatures
of said ~ayor and City Clerk, and sa. id officials, by the execution
of said bonds, shall adopt as and for their own proper signatures
their respective facsimile signatures on each of said coupons.
Section 3. That the bonds herein provided to be refunded
represent a bonded indebtedness incurred prior to November 6,
1934, and for the payment of which the city was oblig~ted to
levy taxes upon all property within ~e territorial limits of the
city as t}~ey existed on the date of the issuance of the bonds so
to be refunded, except that portion w}'~ich was included in the former
Town of Delray Beach, and the city was further authorized to levy
such taxes on that taxable property excluded by special acts of the
Legislature changing the territorial limits of the City of Delray
Beach since the creation of the bonded indebtedness evidenced by
the bonds herein provided to be refunded. The bonds hereby
authorized shall not constitute a novation or new indebtedness,
but shall merely evidence an extension or renewal in a new Form
of said original bonded indebtedness, and shall be of like force
and effect as to obligation as if said original bonded indebtedness
had remained unrefunded, it being the intention hereof that all
contract rights as to security, taxing power, obligation for payment,
remedy and enforcement enjoyed by the holders of said original
bonded indebtedness, including the right to payment From taxes
levied on homestead properties, shall inure to and be enjoyed by
the holders of sa~id indebtedness in its refunded Forn-~, as represented
by the refunding bonds herein authorized; that only such property
as would be exempt from taxation under the provisions of the Laws
and Constitution o£ Florida ~hich were in force i~m~ediately prior
to November 6, 1934, shall be exempt'from taxation to pay the
interest upon and principal of the refunding bonds herein
authorized as the same respectively become due; that all laws enacted
since incurring the indebtedness refunded by the bonds herein
authorized ~hich are ineffective a.s to such indebtedness shall be
ineffective as to the refunding bonds herein authorized, and tile
recital to that effect appearing as the fourth paragraph of the
bond form set out in the next section hereof is approved, adopted
and ratified.
Section 4. That said refunding bonds, the coupons to be
,,thereto attached, and the validation certificate to be endorsed
shall be in
thereo~/.substantially the following form:
(Form of Bond)
UNITED ST~T~S OF
STATE OF
COUNTY OF P;~I~I BEACH
CitY OF DLLiO,Y BEACH
ilEFUNDiNG BOND, S~,{iE~ 1951
Number $1,000
~NO~{ ,iLL }~N BY TB~$~ P~{ESENT$, That the City of Delray
Beach, in Palm Beach County, Florida, hereby acknowledges itself to
be indebted and promises to pay to bearer the sum of One Thousand
Dollars (~1,000) on the first day of January, 19 , and to pay
interest on said sum from the date hereof until paid at the rate of
per cent ( ~) per annum, which
interest is payable semi-annually on the first days of January and
J~ly of each year and, as to interest falling due on and prior to
maturity, only upon surrender o£ the appropriate interest coupons
hereto attached. Both principal of and interest on this bond
are payable in la~ful money of the United States of America at
I~ving Trust Company, in the City of New York, Ne~ York, and for
the prompt payment of this bond and interest thereon as the same
become due, the full faith, credit and resources of said City of
Delray Beach are hereby irrevocably pledged to the same extent
and with like force and effect as heretofore pledged to the pay~ent
of the bonded indebtedness refunded hereby, as hereinafter recited.
Bonds numbered 414 to 1050 inclusive, of the issue of which
this bond is one are optional for redemption prior to maturity
in whole, or from time to time in part in inverse numerical order,
on January 1, 1960 and on any interest payment date thereafter,
and in ~e event any of said bonds is called for redemption as
aforesaid, notice ~ereof identifying the bonds to be redeemed
is to be given by publication at least once not less than thirty
days prior to the redemption date, in a newspaper or financial
journal of general circulation published in the City of New York,
New York, and it is agreed that should any of said bonds be
called for redemption prior to maturity as aforesaid, the city
is to pay to the holder upon surrender of such bond, interest in
addition to that evidenced by interest coupons then accrued, in
an amount equal to two and one-half per cent (2-1/2~) of the
principal amount thereof if so redeemed in 1960, two per cent
(2%) of the principal amount thereof if so redeemed in 1961, one
and one-half per cent (1-1.24) of the principal amount thereof
if so redeemed in 1962, one per cent (14) of the principal amount
thereof if so redeemed in 1963, and one-half of one per cent
(1/2 o£ 1'~) of the principal amount thereof if so redeemed in
1964. No additional interest is to be payable for any bond so
redeemed in 1965 and subsequent years.
This bond is one of' a total authorized issue of ~1,080,000
bonds of like date and tenor except as to maturity, rate of
interest, and option of redemption, issued under authority of
and in full compliance with the Constitution and Laws of the State
of Florida, including Chapter 132 of the Florida Statutes, and
in pursuance of a resolution of the City Council of said city
duly and legally adopted on October 23rd, 1950, for the purpose
of refunding a like amount of bonded indebtedness of said city
originally incurred and outstanding ~rior to November 6, 1934, and
does not constitute new indebtedness or a novation of said out-
standing indebtedness, but merely evidences an extension or renewal
of said original bonded indebtedness in a new form and is of like
force and effect as to obligation as if said original indebtedness
had remained unrefunded, it being expressly hereby 9rovided and
recited that all contract rights as to security, taxing power,
obligation for pa~nent, remedy and enforcement, enjoyed by the
holders of said indebtedness in its original form, including
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the right to payment from taxes levied on homestead properties,
have inured to, and are and shall be enjoyed by the holders of said
indebtedness as represented by this refunding bond.
It is hereby certified and recited that all acts,
conditions and O~ings required to be done precedent to and in the
issuance of said issue of bonds, including this bond, have been
properly done, happened and been performed in regular and due form
as required by law, and ~at the indebtedness refunded hereby was
a legally refundable, subsisting and legal obligation of said city,
that neither the indebtedness refunded hereby, nor the series of
bonds of which this bond is a part, together with all other
indebtedness of said city, exceed any limitation prescribed by
the Constitution and Statutes of the State of Florida. Prior to
issuance of this bond provision has been duly made for the
payment of the interest thereon and principal thereof by the
levy of taxes upon all property ~lich was within the territorial
limits of said city at the time of the issuance of the refunding
bonds refunded hereby, except that portion which was included in
the former Town of Delray Beach, and said city is further authorized
to levy such taxes on tlmt taxable property excluded by Special
Acts of the 1927 and 1937 Legislatures changing the territorial
limits of said City of Delray Beach. Only such property as would
be exempt from taxation under the provisions of the Laws and
Constitution of Florida which were in force immediately prior to
November 6, 1934, shall be exempt from taxation to pay the interest
on and principal of this bond as the same respectively become
due, and laws enacted since the creation of said original bonded
indebtedness which were ineffective as to such indebtedness are
hereby declared to be similarly ineffective as to this bond.
~N WIT~S~ VHL~OF, said City of Delray Beach, acting
by and through, its City Council, has caused this bond to be signed
by its Mayor, attested by its City Clerk, and the corporate seal
of said city to be impressed hereon, and the annexed interest
coupons to be executed With the facsimile signatures of said Mayor
and City Clerk, which officials by the execution of this bond do
adopt as and for their own signatures their respective facsi~mlle
signatures appearing on said coupons· all as of tile first day of
January, 1951.
Mayor
Attest: Approved:
City Clerk '- City Attorney
(Form of Interest Coupon)
Number $
On the first day of · 19 · unless
the hereinafter mentioned bond is then optional for redemption
and has been properly called for redemption, the City of Delray
Beach, Florida, will pay to bearer at Irving Trust Company, in
the City of New York· New York· the sum of
Dollars (~ ) as provided in and being interest due that
day on its Refunding Bond, Series 1951· dated January l, 1951·
and numbered .
Mayor
~ttest:
City ~l~rk
(Validation Certificate)
Validated and confirmed by decree of the Circuit
Court of the Fifteenth Judicial Circuit of Florida in and for
Palm Beach County, rendered on the ~._day of ,
1950.
Clerk of'~he ci'rcait court,
Palm Beach County· Florida
Section 5. Theft for the purpose of paying principal of
and interest on the bonds herein authorized, there shall be and
is hereby ordered levied on all property which was taxable for
the payment of the indebtednes.~ herein provided to be refunded,
a continuous annual ad valore~ tax without limitation as to rate
or amount, ful~s,~Fficient to pay sd. id principal and. interest
promptly as eaci~ falls due. ,~11 tax levies ,~ade pursuant hereto
shall constitute special levies for the p~rpose of' the pay~,ent o£
such .principal and interest. ~uch taxes shall be payable in
ful money of the United ~tates of ,Unerica, shall be collected at
the same ~imes and be enforced in the sa~ne manner as are provided
for general municipal taxes of the city, and as rapidly as
collected and from day to day st-~all be transferred and deposited
in a separate sinkin~ fund in the city depositary and held in
trust therein solely for the p~y~'~ent of ~rincip~l of ~md interest
on the bonds herein authorized. Jaid fund. shall be kept separate
and apart from all other f~mds of the city ~,nd shall be contin~.ous-
ly secured to the extent required or permitted by the La~s of
Florida for the security of other ~unicipal deposits.
~ct!on 6. That the bonds herein authorized shall be
prepared and execrated as so~n as ~:,ay be after the adoption hereof
and sh~ll be validated as hereinafter provided° To the e:¢tent
that tl~e bonds herein authorized to be refunded (w?,ich shall be
any of the outstanding bonds described in the preamble hereto)
are available for surrender in exchange for refunding bends, the
City Treasurer may deliver bonds herein authorized to the holders
of a like principal amount of such outstanding bonds in exchange
theref:or, in ~,hich event interest s}'~all be paid on the outstanding
bonds and accrued interest collected on ti-~e ne~ bonds in such
manner that no overlapping interest is ~,aid, and 2he outstanding
bonds shall be cancelled. 'Jhenever it shall a?pear that not all
of the bonds to be refunded ~ill be available For such purpose
and t~-~at a part oF the bonds herein authorized .~-ill have to be
sold and the proceeds applied to the retire~',.:ent oF the outstanding
bonds, the City Clerk shall cause to be published in the
Delra~ Beach Ne~s .... ~ a newspaper ~ublished in the City of
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Delray Beach, on ~e same day of two consecutive weeks, the
first of such publications to be not less than seven days
prior to the date £ixed for sale, a notice of sale in sub-
stantially the following form:
NOTIC~ OF B~N~ S~
Sealed bids will be received until o'clock
.~. on the day of ., 1950, by the City
Clerk of the City of Delray Beach, Florida, and at said
ho~r and on said date will be opened and considered by the
City Council of the City of Delray Beach at the regular
meeting place of the City Council in the City Hall, for
the purchase of ~ Refunding Bonds, Series
1951, of said city, dated January 1, 1951, denomination
~1,000~ payable at Irving Trust Company, in the City of
New York, New York, and maturing serially on January 1
of each year and bearing interest as follows:
Year ,~nount Interest ~ate Year ~mount ~nterest Rate
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Bonds ntunbered 414 to lOSO, inclusive, are
optional in inverse numerical order on January 1, 1960
and on any interest payment date thereafter at par and
accrued interest, plus additional interest amounting to
2-1/2~ if redeemed in 1960, 2~ if redeemed in 1961,
1-1/2~ if redeemed in 1962, 1;:~ if redeemed in 1963 and
1/2 of 1~ if redeemed in 1964. No additional interest
shall be payable for any bond to be so redeemed in 1965
and subsequent years.
The bonds have been authorized to refund outstanding
bonds called for payment on January 1, 1951 and the
purchaser must agree to accept delivery on January 2, 1951.
The bonds are payable from unlimited ~ad valorem taxes to
be levied on all taxable property, including homesteads,
which was witkin the city limits of the city on January 1,
1941, and in addition thereto, on all taxable property
excluded from said city by acts of the 1927 and 1937
Legislatures, except that no such taxes are to be levied on
the territory in said City ~ich was formerly included in
the Town of Delray Beach.
All bids must be unconditional and must be accompanied
be a certified or cashier's check for two per cent of the
amount of the bonds, payable to the order of the City
Treasurer, which check shall be considered as liquidated
damages if the successful bidder fails to accept the
bonds when tendered by the city accompanied by the unqualified
approving legal opiniOn of Chapman and Cutler, which opinion
and a non-litigation certificate dated as of the date of
delivery, as well as a transcript of proceedings, will be
furnished the purchaser without cost. No bid of less than
par and accrued interest will be considered. Bids must be
for the entire block. The city reserves the right to
reject any or all bids.
GIVEN by order of the City Council of the City of
Delray Beach this d~y of ,1950.
The City Treasurer shall transfer from the proceeds of
said sale to Irving Trust Company, New York, l~ew York, a sum
equivalent to the principal amount of the bonds so sold and in
addition shall transfer to Irving Trust Company from the sinking
fund established for the bonds called for redemption on January 1,
1951, a s~ln~ sufficient to pay the interest falling d~e thereon
on said date. The City Treasurer shall instruct Irving Trust
Company that tt~e money so transferred is to be held irrevocably
in trust for the benefit of the holders of and paid out only to pay
principal of and interest on the bonds herein authorized to be
refunded which have been called for redemption on January 1, 1951,
and which are not surrendered in exchange for refunding bonds as
hereinabove provided.
Section 7. That if any refunding bonds herein author-
ized shall be held by any court of competent jurisdiction to be
invalid for any reason, the holder or holders o£ such bonds shall
be sabrogated to the rights enjoyed by the holders of the bonded
indebtedness refunded thereby.
3ection $. That the ?rovisions of this resolution shall
constitute a contract between the City of Delray Beach and the
holders from time to ti~e of the refunding bonds herein authorized,
which contract shall be enforceable either at law or in equity.
Section 9o Tha~t John }loore, as attorney for tt'~e City of
Delray BeaCh, be and he is hereby authorized and directed to
take appropriate proceedings in tt~e Circuit Court of the
Fifteenth J,adicial Circuit of Florida in and for Palm Beach
County for the validation of said bonds, and this resolution and
the provisions herein contained, and the >iayor and City Clerk are
authorized to sign any pleadings in such proceedings for and in
behalf of the city.
Section 10o That if t~ny clause, section, paragraph
or provision of this resolution shall be declared unenforceable
by any court of competent jurisdiction, such holding shall not
affect or invalidate the remainder hereof.
Section 11o That by reason of the necessity for making
the refu~ing bonds herein authorized in~z~ediately available and
in order to effect the interest Savings which will be procured
through ~e retiren~ent of the outstanding bonds, an emergency
is hereby declared, making it necessary that this resolution shall
become effective inm~ediately upon its adoption, and it is so
ordered.
Adopted and approved October 23rdt 1950o
~ Hayor
Attest:
it~ Clerk
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