Res 295RESOLUTION BOOK _ .
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DELRAY BEACH, FLORIDA,
AUTHORIZING THE ISSUANCE OF REFUNDING BONDS, PROVIDING FOR THE
DE~0MINATION THEREOF, THE DATE OF ISSUE, THE DATE OF MATURITY AND
R. ATE OF INTER~T, AND PROVIDING FOR TEE I~ETHOD OF EXCHANGING SAID
BONDS FOR THE NOW 0UTST~A/tDING BONDS WHE~H~ OR NOT MERGED INTO JUDG-
~, AND PROVIDING FOR THE ESCROWING OF INTEREST OBLIGATIONS WHETHER
OR NOT MERGED INT0 JUDGmeNT, AND FOR THE ISSUANCE OF REFUNDING BONDS
TO RETIRE 12IE SAME, AND PROVIDING FOR THE LEVY, ASSESSMENT AND COLLE0-
TION OF TAXES TO PAY THE PRINCIPAL AND INTEREST OF SAID REFUNDING
BONDS AS THE SAME BECOME DUE.
WHEREAS, an emergency exists in the City of Delray Beach,
Florida, due to the fact that a considerable part of the funded
debt of said city is in default, and it is necessary that such
indebtedness be refunded in order for the city to properly function
and meet its obligations, and it is necessary for the preservation
of public property and for the daily operations of the various
departments of the city that such a refunding be effected;
AND, ~HEEEAS, such indebtedness was incurred prior to November
6, 1934 and the holders thereof, by virtue of the laws in existence
at the time of the incurring of such indebtedness have the legal
right to require that taxes for the payment thereof be levied on
all property subject to taxation, including homesteads exempted from
taxation by the amendment ratified November 6, 1934, adding Section
? to Article l0 of the Constitution of Florida, and to require the
collection o~ such taxes in cash at the same time and in the same
manner as other taxes levied by the City, and to otherwise enforce
their indebtedness and the security therefor independently of any
restriction or limitation upon the enforcement thereof enacted by
the State Legislature since the incurring of such indebtedness, and
are entitled to a refunding obligation which will have the same
security and be subject to the same remedies and rights of enforce-
ment as existed prior to November 6, 1934 and which now appertains
to said outstanding indebtedness.
AND, WHEREAS, in order to permit of a readjustment and refunding
that will be acceptable to its creditors, the City deems it advis-
able and necessary to authorize the issuance of refunding bonds under
such terms and conditions as will reserve to the holders thereof the
rights, security and remedies now available to them as holders of
the city's outstanding indebtedness.
AND, ~, under the provisions of the laws of the State
of Florida, the City Council of the City of Delray Beach is duly
authorized to issue such refunding bonds without submitting the
approval or disapproval thereof to a vote of the freeholders of
said City.
AND, WEEREAS, notwithstanding the provisions of such laws of
the State of Florida, the City Council of the City of Delray Beach,
Florida, did call such a freeholders election by ordinance and the
Mayor of said City of Delray Beach did also call such election by
proclamation, which election was for the purpose of allowing the
qualified registered electors who were freeholders in that portion
of the City affected by the proposed refunding to either approve
or disapprove of the issuance of refunding bonds, which election
was held on February 21, A. D. 1939, and at said election a majority
of the qualified registered freeholders of said City participated
and a majority of those participating in the election voted in
favor of the issuan:oe of the said refunding bonds.
WHEREAS, there have been heretofore duly authorized and
issued under and by virtue of the Constitution and statutes of the
State of Florida in such case made and provided negotiable coupon
bonds of the Town of Delray and the City of De]ray in the following
DATE OF ISSUE DESIGNATION AUTHORIZED ORIGINAL
AMOUNT OF ISSUE
July 1, 1914 Water and Light $ 20,000.00
January 1, 1920 Improvement 62,500.00
March 1, 1923 Improvement 45,000.00
July 1, 1923 Improvement 50
November 1, 1924 Special Improvement S6,A~6,98
May l, 1925 General Improvement 80,0o0.00
Ap ril 1, 1926 Improvement 900 ,O00. (MS
November 1, 1926 Improvement
March l, 1927 Improvement 115,000.00
WHEREAS, the said bonds that are now outstanding bonds (herein-
after together with accrued and unpaid interest thereon) which con-
stitute legal and valid unpaid indebtedness of the said City,
identified as to issue date, denomination, interest rate and amounts
as follows:
TOWN OF DELRAY, Water and Light Bonds, dated
July l, 1914 in denominations of $1,000, bearing
interestat ~% per annum, payable semi-annually,
on which there is outstanding unpaid principal
in amount of ............ . . . .... $10,000.00
CITY OF DELRAY, Improvement Bonds, dated
January 1, 1920, in denom~nations of
bearing interest at 6% per annum, payable
senL~-a ~nnually, on ~hlch there is outstanding
unpaid principal in amount of . ........ $51,000.00
CITY OF DELRAY, Improvement Bonds, dated
March 1, 1923, in denominations of $500.00,
bearing interest at 6% per annum, payable
semi-annually, on which there is outstanding
unpaid principal in amount of · ...... . . 7,000.00
CITY OF DELRAY, Improvement Bonds, dated
July 1, 1923, in denominations of $1,000,
bearing interest at 6% per annum payable
semi-annually, on which there is outstanding
unpaid principal in amount of .... . · · · · S6,665.00
OlTY OF DELRAY, Special Improvement Bonds,
dated November 1, 1924, in denominations of
$1,000, bearing interest at 6% per annum,
payable semi-annually, on which there is
outstanding unpaid principal in amount of · . . · 24,260.00
0ITY OF DELRAY, General Improvement Bonds,
dated ky 1, 1925, in denominations of
$1,000, bearing interest at 6% per annum,
payable semi-annually, on which there is
outstanding unpaid principal in amount of .... 72,000.00
CITY OF DELRAY, Improvement Bonds, dated
April 1, 1926, in denominations of $1,000,
bearing interest at 5~% per annum, payable
semi-annnally, on which there is outstanding
unpaid principal in amount of · · · ...... 682,330.00
CITY OF DELRAY, Improvement Bonds, dated
November 1, 1926, in denon~Lnations of $1,000,
bearing interest at 6% per annum, payable semi-
annually, on which there is outstanding unpaid
principal in amount of · ...... · · . · · ~1,900.00
CITY OF DELRAY, Improvement Bonds, dated March
l, 1927, in denominations of $1,000, bearing
interest at 5~% per ann~_m, payable semi-
aBnually, on which there is oustanding unpaid
principal in amount of .... . ..... · · 39,480.00
The Total Bonds of said issues outstanding . .$1,014,635.~
The odd balances shown for the unpaid principal on some of
the above~ bond issues are due to the fact that partial
payments were made on some of the bonds during the years
1929 and 193~.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City
of Delray Beach, Florida, as follows:
Section 1. That it is hereby ~°und and determined that the
indebtedness aggregating in principal amount t~e sum of $1,014,635.00
constitutes a valid outstanding funded indebtedness of the City of
Delray Beach, Florida, incurred prior to November 6, 1934, for
various municipal purposes, and for the payment thereof all of the
property within the present territorial li~ts of the City of Delray
Beach, Florida, excepting that portion of said City which was
formerly the Town of Delray Beach, Florida, and excepting also
such property as was exempted from taxation by the Constitution
of Florida as it existed immediately prior to November 6, 1934,
is subject to the taxation without limitation of rate or amount
for the payment thereof, and in addition all property which was
formerly within the said Gity of Delray ~each, Florida, as con-
stituted on ~ay 11, 1927, except that portion thereof which was
formerly the Town of Delray Beach, Florida, and also that property
which was constituted within the territorial limits of the former
City of Delray as the boundaries thereof were extended by Chapter
10450 of the Acts of 1925, approved April 29, 1925.
Section ~. Series A refunding bonds in the principal amount
of $1,014,635.00 are hereby authorized to be issued for the pur-
pose of refunding the principal amount of indebtedness and Judgments
thereon described in Section i hereof and any additional Judgments
that may be hereafter recovered thereon.
Said refunding bonds Series A shall be dated July l, 1958,
and shall mature July l, 1960, subject to redemption on any interest
payment date prior to maturity upon payment of the par value thereof
smd accrued interest to the date fixed for redemption.
Said Series A refunding bonds~ shall be numbered consecutively
~nd Shall be in the following denominations: $1,000, $450, $500,
$565, $665 and $685, and shall bear interest, payable semi-annually,
at the following rates:
One per cent (1%) per annum for a period of one (1) year
from date thereof;
One and one-half per cent (1~%) per a~num for the next
succeeding one (1) year;
Two per cent (2%) per annum for the next succeeding five
(5~ years;
Two and one-half per. cent (2~%) per annum for the next
succeeding five ~5) years;
Three per cent ~%~ per annum for the next succeeding
five (5) years;
Four per cent (A%~ per a~num for the next succeeding five
(5) years; ~ *~,~"~, ~ ?;, ~1.~
Five per cent ~5%) per annum thereafter until the maturity'
of said refunding bonds. ~-
Series A refunding bonds numbered consecutively from I to
681, both inclusive, i~ the principal amount of $1,000 each, and
Series A refunding bonds n~unbere~ 682 and 68~, each in the prin-
cipal a~ount of $685, are to be exchanged for outstandin~ City of
Delray Improvement Bonds, dated April 1, 19~6, bearing interest at
5~% per annum, payable semi-annually. Series A refunding bonds
numbered consecutively from 684 to 717, both inclusive, in the
principal amount of $1,000 each, ~nd Series A refunding bonds
numbered consecutively from 718 to 725, both inclusive, each in
the principal amount of $685, are to be exchanged for City of Delray
Improvement Bonds, dated M~rch 1, 1927, bearing interest at
per annum, payable semi-a~ually. Ail other refunding bonds are to
be exchanged for original bonds bearing interest at the rate of
per annum, payable seE~-annually.
Section 3. The refunding bonds herein authorized to be issued
shall be signed by the Mayor and attested by the City Clerk and the
corporate seal of the City of Delray Beach, Florida, shall be
affixed thereto. The interest coupons thereto attached shall be
executed with the facsimile signatures of the said Mayor and City
Clerk. The text of said bonds, the coupons thereto attached and
the validation certificate to be endorsed thereon shall be in sub-
stentially the following fo~m:
~ $~A~S OF AMERICA
State of Florida
City of Delray B each
19~8 General Refunding Bond
Issue of July 1, 1938
Series "A~
No.
Enow all men by these presents: That the City of Delray Beach
in the County of Palm Beach, State of Florida, hereby acknowledges
itself to be indebted and for value received hereby promises to pay
to the bearer the sum of
on the first day of July, A. D. 1968, with the option of prior
redemption as hereinafter provide~ an~ to pay interest on the said
sum as hereinafter specified from kate hereof until paid or called
for redemption; the sai~ interest to be paid semi-annually on t~e
first days of January and July of/each year, both principal and
interest thereof are payable in lawful money of the Unite~ States
of America at the Irving Trust Company, New York, New Yor~, upon
presentation ~nd surrender of this bond an~ the interest coupons
hereto attache~ as they severally mature~
Interest on the amount of this bond as evidenced by the interest
coupons hereto attached shall be payable en~ collectible at the r~te
of one per cent (1%) per annum to July 1, 1939; thereafter at the
rate of one and a half per cent (1~) per annum to July 1, 1940;
thereafter at the rate of two per cent (2~) per annum to Julyl,
1945; thereafter at the rate of two and one-half per cent~(2~)
per annum to July 1, 1950; thereafter at the rate of three per
cent (3~) per annum to July 1, 1955; thereafter at the rate of
four per cent (4%) per annum to July 1, 1960; thereafter at the
rate of five per cent (5%) per annum to July l, 1968.
In the event the City defaults in the payment of interest on
this bond, and such default continues for a period of six months
after its happening, then upon declaration in writing filed with
said City, and with Thomas M. Cook & Company, the fiscal_agent for
said City, by the holders of at least forty per cent (40%) in
principal amount of all the bonds of this issue outstanding upon
the happening of such default, this bond shall, at the option of
the holder, revert to the original interest rate of the security
exchanged therefor, but such reversion shall only be effective
from the date to which interest has been paid on this bond prior
to the date of the filing of the declaration of intention to
exercise such option, and, if the right to higher interest rate
accrues, such higher rate of interest will be evidenced in the
manner then provided by law.
This bond is issued under the authority of and in full com-
pliance with the Constitution and statutes of the State of Florida,
including the Charter of the City of Delray Beach, and pursuant to
a resolution~passed by the City Council of said city of Delray
Beach for the purpose of refunding ~altd subsisting bonded indebt-
edness of said City,_ for the payment of which the City was obligated
to levy taxes upon all property within its present territorial
limits, excepting that portion of said City which was the former
Town of Delray Beach, and for the payment of which all property here-
tofore located in said City of. ~elray Beach, exclusive of that
portion of said City which comprised the former Town of Delray Beach,
which has been excluded by Special Acts of the Legislature changing
the territorial limits of the City of Delray Beach since the creation
of such bonded indebtedness is also subject to tax, except such
property ar was exempt from taxation under the Constitution and Laws
of Florida as they existed immediately prior to November 6, 1934.
The City of Delray Beach hereby reserves the right to redeem
this bond on any interest payment date upon payment of par and
accrued interest, and agrees that it will apply the sinking fund
created by the resolution authorizing the issuance of this bond to
the redemption of the bonds of this issue at par and accrued interest
by lot, wh.enever such sinking fund amounts to Five Thousand Dollars
($5,000.00~ or more and is not used for. the purchase of bonds of
this issue at less than par and accrued interest in the manner more
particularly prescribed by the resolution authorizing the issuance
of this bond. In the event this bond is so called for redemption,
notice thereof shall be published in a financial journal published
in the City of New York, New York, and .in a newspaper of general
circulation published in Palm Beach County, Florida, in one issue
thereof, published not more than sixty (60) days, nor less than
thirty (30) days prior to the date fixed for redemption. The sinking
fund provided for said bonds may also be used in the purchase thereof
in accordance with the provisions of the resolution authorizing
their issuance.
It is hereby certified and recited that all acts, conditions
and things required to happen, exist and be performed precedent to
and in the issuance of this bond have happened, exist and have been
performed in due time, form and manner as required by the Constitu-
tion and Laws of the State of Florida and the Charter of the City
of Delray Beach; that the'total indebtedness of said City, including
this bond, does not exceed and that the total indebtedness of said
city, at the ~creation of the indebtedness refunded hereby, did not
then exceed any constitutional or statutory limitations thereon,
and for the prompt and full payment of this bond, and the interest
thereon, the full faith and credit of said City are hereby pledged.
This bond is issued in exchange for a like amount of indebted-
ness of said city which was outstanding on and prior to November 6,
1934, and does not constitute new indebtedness or a novation of
said outstanding indebtedness, but merely evidences an extension
or renewal in a new form of said original existing indebtedness
refunded hereby, and is of like force and effect as to obligation
as if said original indebtedness had remained unrefunded, it
being expressly hereby provided and recited that all contract
rights as to security, taxing power, obligation for payment,
remedy and enforcement, enjoyed by said indebtedness in its original
form, has inured to, and is and shall be enjoyed by said indebted-
ness as represented by this refunding bond. 0nly such property
in said city as would be exempt from taxation under the provisions
of the laws and Constitution of Florida which were in force at the
time of the creation of the indebtedness refunded hereby shall be
exempt from taxation to pay the interest on and principal of this
bond as_the same respectively become due. Laws enacted since the
creation of the indebtedness refunded hereby which are ineffective
as to such indebtedness are hereby declared to be similarly in-
effective as to this bond.
IN WITNESS WHEREOF the said City of Delray Beach has caused
this bond to be signed by its Mayor and attested by its City Clerk
under its corporate seal, and the interest coupons hereto attached
to be executed with the facsimile signatures of said Mayor. and
City Clerk as of the first day of July, A.. 1938. ,
ATTEST:
~ity Clerk.
(Form of Coupon for Semi-Annual Interest Payments)
No. $
On the first day of ,19__.__, the City of Delray
Beach, in the County of Palm BeaC"h, State of Florida, will pay to
the bearer at the Irving Trust Company, in the City of New York,
New York, the sum of $ . , as provided in and for the semi-
annual interest then dUe o'n the City of Delray Beach Refunding
Bonds Series "A".
No.. da tedl July l, 1938~
. i ........
CLEPJf ....
City of Delray Beach City of Delray Beach
(Validation Certificate)
Validated and confirmed by decree of the Circuit Court of the
Fifteenth Judicial Circuit of the State of Florida, in and for Palm
Beach County, rendered on the .. day of ~ , A. D. 19 .... .
dier~ of the Ci'rcult C'o'ur~
of the Fifteenth Judicial
Circuit of Florida, in and
for Palm Beach County.
Section 4. Said Series "A" refunding bonds shall be placed
in escrow with the Irving Trust Company of New York, New York, and
shall be delivered upon instructions from the fiscal agent of the
City to the holders of the now outstanding bonds, whether or not
merged in Judgments, described in Section 1 hereof and in exchange
therefor on the basis of par for par for the principal amount.
The refunding bonds, Series "A", shall be callable at par
upon any interest payment date prior to maturity. If the option
to call the bonds prior to maturity is used, it shall be exercised
in the following manner: The bonds Shall be drawn by lot by the
governing authority of the City of Delray Beach, and the respec-
tive lots shall be so drawn from all the then outstanding bonds.
Notice of redemption, specifying the bonds called, shall be filed
at the place where the principal and interest of said refunding
bonds, Series "A", are payable at least thirty days prior, to such
redemption date. Notice of intention to redeem said bonds shall
be published once, not more than sixty days, nor less than thirty
days prior to the redemption date, in at least two publications,
one of which shall be a newspaper having general circulation in
Palm Beach County, Florida, and the other shall be a financial
journal published in the City of New York, State of New York.
Section 5. For the purpose of adequately providing for the
payment of the interest on all said refunding bonds and for the
creation of a sinking fund for the retirement of all said refunding
bonds, the City for the fiscal year 1936-1939 shall levy a debt
service tax of not less than $30,000.00 for refunding bonds and
for the fiscal year 1939-1940 shall levy a debt service tax of
not less than $3?,§00.00 for refunding bonds. Thereafter, the
City shall levy for debt service a millage which will be sufficient
to raise a sum of at least equal to the interest due in such fiscal
year if 60% of the levy is collected in such fiscal year. If,
however, the percentage of collection for the prior fiscal year,
up to the date of the levy (not including any estimate of collec-
tions after the levy is made), is less than 60%, the levy shall
be based on the collectibility of such less percentage. For the
fiscal year in which the new bonds shall mature, the City shall
levy a tax in such amount as shall be sufficient, together with
~lnking funds then in hand, to pay such bonds upon their maturity.
Such taxes shall be levied and computed upon the extended and
finally equaliz®d walua~ion of all property subject to taxation
within the Oity, excluding the old Town o f Delray Beach, which is
now a part of the City of Delray Beach, Florida. The territorial
limits of the City of Delray Beach, Florida, have been reduced by
Chapter 12677 of the Special Acts of 1927 and by Chapter 1849~,
Special Acts, 1939, since the bonds hereby refunded were issued
and since it was provided in and by said Special Acts that the
territory excluded from said City should be held responsible for
and be bound for all bonds, contracts, Judgments a nd debts then
held against said city, the City of Delray Beach does hereby
reserve the right to tax any territory excluded from the City for
the payment of any obligations existing at the time such territory
was eliminated. The taxes so levied shall be in addition to all
other taxes levied by the City and the proceeds shall be kept in
a special fund and used exclusively for the purpose for which the
same are levied.
Section 6. If at any time there is $§,000.00 or more in the
Refunding Bond Interest and Sinking Fund Account over and above
the amount of the next interest requirement, the said fund shall
be used by the City, after giving reasonable public notice of its
intention, for the purpose of purchasing refunding bonds of the
issues contemplated herein, which purchases shall b e made in the
following manner: The City shall designate a date at which time
it will receive sealed tenders of bonds of the refunding issues
herein authorized, and set upon such tenders in open session. The
entire available surplus for the retirement of bonds shall be used
to purchase bonds offered by such tenders at the lowest prices;
provided, however, that if the said City be dissatisfied with any
or all tenders thus received, it shall have the option to reject
any or all of same, and within thirty-one (31) days after such
rejection, it shall readvertise for additional sealed tenders in
the same manner as hereinbefore provided, and shall purchase the
bonds offered at the lowest prices upon such readvertisement,
absorbing all surplus funds available in the Refunding Bond Interest
and Sinking Fund Account, and, provided further, that following e ach
respective tender date said City may privately purchase additional
bonds with subsequent surplus accumulations as long as private
purchases may be made upon such basis as will show an equal or
higher income yield than the highest yield calculated on bonds
purchased responsive to tenders received at the last preceding date.
In the event that no offerings can be obtained at or below the call-
able price, the said City shall proceed to call bonds by lot.
Section 7. The refunding bonds proposed to be issued here-
under shall be issued as continuations, extensions, mergers and
renewals of the indebtedness proposed to be refunded and have the
identical tax base as the said original bonds, and all rights and
remedies which were available for the support and enforcement of
the original bonds, shall continue and remain available for the
support and enforcement of the refunding bonds when issued, and
shall be issued under a procedure which will be approved by nation-
ally recognized bond attorneys.
Section 8. Said refunding bonds, Series "A", shall also pro-
vide that upon a default in the payment of interest on said refunding
bonds, then, upon the declaration in writing filed with Thomas M.
Cook & Company, the fiscal agent, and with the City of Delray Beach,
by the holder's of at least' forty (40%) per cent, in principal amount
of the refunding bonds outstanding upon the happening of such default,
said refunding bonds shall, at the option of the respective holders,
revert to the original interest rate of the securities exchanged
therefor, but such reversion shall only be effective from the date
to which interest had been paid on said refunding bonds prior to the
date of the filing of the declaration of intention to exercise such
option, and if the right to the higher interest rate accrues, the
higher rate of interest will be evidenced in the manner then pro-
vided by law; PROVIDED, ~aid bonds shall not revert to the original
interest rate unless the failure, refusal, or default is continued
for a period of six (6) months after its happening.
Section 9. The Mayor and City Clerk of the City of Delray
Beach, Florida, are hereby authorized and directed to sign said
refunding bonds and the said City Clerk is hereby authorized and
directed to affix the corporate seal of the City of Delray Beach,
Florida, to each of said bonds so signed.
Section lC. All taxes levied by the City for 1937 and sub-
sequent years shall be paid in legal tender only. The City intends
to adjust the amount due on account of the delinquent taxes for the
year 1936 and prior and special assessment liens in a mmnner which
is designated to result in a collection of the reasonable maximum
equity therein.
Section ll. As a part of the refunding plan, it is provided
that the evidences of all interest accrued to July 1, 1938, whether
represented by interest coupons or accrued interest on matured bonds,
and whether or not merged into judgments, shall be deposited in
escrow with an escrow agent to be hereafter named, against which
escrow the said escrow agent shall issue Certificates of Deposit in
the name of the owners of the equity thereof, said certificates to
identify the amount of interest accruals evidenced thereby.
The Certificates of Deposit so issued by the escrow agent
shall be in assignable form, subject to the right of transfer and
assignment at the expense of the particular certificate holder, but
said Certificates of Deposit shall not be negotiable. The said
escrow account shall be maintained for a period of two years from
January l, 1939. At the expiration of the said two-year period,
the said escrow shall be considered closed.
As proceeds of the collection of said adjusted taxes or special
assessment liens and interest thereon are available, then, upon
said particular proceeds being remitted to the escrow agent shall
reduce the amount owed by the said City under the escrow, at the
ratio of $1.00 of such indebtedness for each 30¢ Pa.id by the City
to the said escrow agent during the year 1939, and at the ratio of
$1.00 for each 3§¢ paid by the City during the year 1940; thus,
effecting pro tanto payment and discharge at 30~ on the dollar of
the indebtedness liquidated during the year 1939, and at 3§~ on
the dollar of such indebtedness liquidated during the year 1940.
All of said money so received by the escrow agent shall be
held by it until the escrow shall be closed. At that time, the
moneys available shall be prorated among the owners of outstanding
Certificates of Deposit representing interest in said escrow account
and said funds shall be paid by said escrow agent to said certifi-
cate holders with proper and reasonable deductions being made by
said escrow agent for handling the escrow account.
The owner of any such Certificate of Deposit may sell his
equity therein during the first year of said escrow period direct
to the City at a price of less than 30¢ on the dollar of the amount
represented thereby and effect an assignment thereof; and during
the second year of said escrow period, a price of less than 3§¢
on the dollar of the amount represented by such Certificate of
Deposit:and effect an assignment thereof.
The City, upon delivery to it of any such assigned Certificate
of Deposit so purchased by the City, shall immediately forward such
Certificate to the escrow agent for cancellation by such escrow
agent and to effect a reduction of the amount owed under the escrow
by the amount represented by the said Certificate of Deposit so
assigned and delivered and the said Certificate of Deposit so
forwarded to said escrow agent shall be cancelled by said escrow
agent and the items represented by said Certificate of Deposit
shall likewise be cancelled and sent to the City in due course of
business.
Immediately after the escrow has been closed, the escrow
agent shall (1) balance the said escrow account; (2) determine
the pro rata interest therein of the owners of the respective
Certificates of Deposit then outstanding; (3) apply in prorated
payments the sums received from the City, as hereinabove provided
for; (4) notify the City (a) of the gross amount still represented
by the escrow after such pro rata applications have been made and
(b~ of the amount still represented in the escrow by the individual
certificates. The City shall then immediately take all steps
necessary to validate its refunding bonds, Series "B", in an amount
sufficient to cover the s~id remaining balance represented by the
escrow; and upon the issuance of such refunding bonds, Series "B",
the same shall be transmitted to the said escrow agent for delivery
by it to the owners of Certificates of Deposit so remaining out-
standing. Said refunding bonds, Series "B", so to be delivered,
shall bear date of July l, 1~40; shall mature Suly l, 1968; be in
the same form and contain covenants as if they were a part of the
issue of refunding bonds, Series "A", dated July l, 1938; bear
interest at the identical rates specified to be paid from July,
1940, on the said refunding bonds, Series "A", of July l, 1938, be
in such total amount (not ~o exceed $~%~50.~$~ as shall be necessary
to deliver bonds to the respective Certificate holders; shall be
numbered consecutively and shall be in the ~ollowing denominations:
$1000; $§00.00; $100.00; and $50.00 and, in addition, shall specify
whether it is issued for the purpose of refunding an original 5s~% or
6% obligation. The Certificates shall be surrendered to the escrow
agent upon delivery of the said refunding bonds, Series "B", and said
Certificates, as well as all of the evidences of accrued interest
represented by the said Certificates of ~eposit, shall thereupon be
cancelled and the said evidences of accrued interest be sent to the
City.
Section 12. That all the said refunding bonds and interest
thereon shall be payable in lawful money of the United States of
America at the Irving Trust Company, New York, New York.
Section 13. That all covenants, representations, agreements, and
undertakings herein set out, as well as those appearing in the face
of the said refunding bonds, shall constitute contract with the holders
of refunding bonds, which contract shall be enforcible by suit, action,
or mandamus on behalf of any bond holder in any Court of competent
Jurisdiction whether or not a monetary default shall then prevail in
the payment of the principal or interest of such refunding bond, and
all rights and remedies which were available for the support and
enforcement of the bonds r~dad hereby shall be available for the
support and enforcement of said refunding bonds.
Section 14. That if any clause, section, paragraph o'r provision
of this Resolution or of the refunding bonds hereby authorized, be
declared unenforcible by any court of final jurisdiction, it shall
not affect or invalidate any memainder thereof, and if any of the
refunding bonds hereby authorized be adjudged illegal or unenforcible,
the holders thereof shall be entitled to be subrogated to the rights
of the holders of the indebtedness hereby provided to be refunded
thereby and as such, enforce their claim for payment.
Section 15. That if any mistake or error shall have occurred in
this Resolution in the ~escription of any of the outstanding bonds
proposed to be refunded, such mistake or error shall be deemed to be
immaterial, provided the total amount of outstanding bonds surrendered
in exchange does not exceed the amount of refunding bonds hereby
authorized to be issued.
Section 16. That the firm of Ad~m~ & Nowlin, Attorneys at Law,
be and is hereby authorized and directed to take appropriate
preceedings in the Circuit Court of the Fifteenth
Judicial
Circuit of Florida in and for Palm Beach County for the valida-
tion of said bonds, and the Mayor, president of the Council and
the City Clerk are hereby authorized to verify any pleadings in
such proceedings and to impress thereon the corporate ssai of
this ~nicipality.
This is an emergency resolution and shall take effect
immediately upen its passage.
ADOPTED by unanimous vote of the City 9euncil, all members
being present, at a regular meeting of the said City Council,
on this the 26th day of June, %. D. 1939.
City Cler~ t ·
~yor
paltry ~{ ,sh~W$ b¥,,~ that certain.
lution'Pa~S~d ~d a~lopted by the City
Council of tl~ "said' City of Delray
Beack~'on 'the 26th day of June, A.' D.
1939, a copy of ,which resolution is/at-
tached to the Petition for Validation
'heretofore fried in the foregoing enti-
tled cause, and that said City has
in the above styled cause~and has i~re-
'' ..... OTICE~ -~ented to this Court its Petition seek-
LF~,AL ',IV ing validation and confirmation of
NOTICe OF SPiECIA~I- £'~-£C-'~'i~-- such refunding bond, and their
· . .~ anco, and thaZ a h~a.~ing will be h~d
I, C. V~. I~iill, Mayo~ of the C~ty of upon such Petition he'fore the Judge of J
Delray Beach, do :hereby give. public the above styled Court at'the Chambers
notiCe that a special e}ection will be of such Court in the County~ourt House
held on Tuesday, Augus~ lst~ A. D. in the City of West Palm Beach in
.1939, at the Fireman's Halt in the City County of Palm Beach, Slale of Flori-
of Delray Beach, Florida, between the da, on Tuesday, the 1st day o£ August,
hours of 8 o'clock A. M. ~nd 6 o'clock A. D. 1939, at the hour of ten o'olock
P. M., for the pu. rpose of allowing the A. M. on such day, or as soon there-.
qualified electors of the City of Delray after as the mat~er may be heard,
Beach to either ratify or rejeci the which time and place you and each
provisions of House Bill 1808, Laws of you are ordered and directed to show
Florida, 1939, the same being an Ac~ cadse, if any you have, why such re-
to amen~l certain s~etions of the pres- fund~g'-bonds should not be validated
ent city charter. All qualified electors or c~firmed.
of the City of Delray Beach are eli-
gible to vote in said election. IT IS ORDERED That this cit~t?n
C. W. HILL, and notice be published Once ~ch
Mayor of the City of Delray Beach week for at least three consecutive
July 14, 21, 28. weeks in th~ Delray Beach News, a
newspaPer 4~f general circulation print-
ed and published in the City of, l~lray
IN THE CiFiCtJlT COURT OF THE Beacha Palrfl Beach County,
FIFTi~ENTb{ JOOICIAL CIRCUIT IN. WITNESS WHEREOF, ~ have
O{r FLORIDA, IN' AN~ {fOR PAi-M hereunto set my hand as Clerk Of the
BEACI-[ COUNTY. Circuit Court of the Fifteenth Judi-
CHANCERY NO ................... cial Circuit ~t Florida, in and
OITY OF DELRAY BEACH, Beach Count,v, and have affix~ here-
a municipal corporation, to the seal of said court at West .palm
Petitioner Beach, Palm Beach County, ~on this the
vs. 7th day of July, A. D. 1939.
STATE OF FLORIDA, GEO. O. BUTLER, Clerk of the
Responaent Circuit Court of the Flfteen{'h
VALIDATION PROCEEDINGS Judicial Circuit of the State
CITATION AND NOTICE OF of Florida in and for ,Palm
PROCEEDINGS TO VALIDATE . Beach County.
AND CONFIRM ' REFUNDING By Merle P, Johnston, ~Deputy Clerk
BONDS. (Circuit Court Seal)
IN THE NAME OF THE 'STATE ~)F ADAMS & NOWLIN
FLORIDA, TO Tile CITIZENS AND By ~. W..Nowlin
TAXPAYERS OF THE CITY OF' DEL- AttOrneys for Petitioner
RAY BEACH. PALM BEACH COUN- July, ?-14-21-28.
TY, FLORIDA, AND TO ALL OTHER _
PERSONS INTERESTED, GREET- ~-
INGS:
NOTICE IS HEREBY GIVEN That
the City of Delray Beach; a municipal
corporation located in Palm Beach
County, in the Fifteenth Judicial Cir-
cuit of the State of Florida, desires tO
incur bonded debt by the issuance of
refunding bonds in the aggregate
amount of $1,014,635.00 for the purpose
of refunding the principal of th~ out-
Istanding indebtedness of s~tch munici-