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Home My WebLink AboutORD 04.09.1923 - Water and Light SystemsAN .ORDINANCE AUTHORIZING TEE MAYOR OF THE CITY OF GF,ORGETOVN , TEXAS, TO = U'UTE AND ]DELIVER TO THE FAII;RS STATE BANK OF GEORGE - TOti`.N, TEXAS, PROMISSORY NOTES OF THE SAID CITY, AGGREGATING EIGHTEEN THOUSAND ($18 , 000.00) DOLLtiRS , AND TO EITCULEBER THE WATER AND LIGHT SYS- TEMS BELONGING TO SAID CITY AND THE I14001vIES TI:El EOF JiND EVERYTHING PERTAINING THERETO IN :SUCH AMOUNT, AND TO EXECUTE A DEED OF TRUST ON SUCH vATER AND LIGHT SYSTEMS AND THE INC OIVIE S TEEBEOF AND EVERY- THING PERTAINING THE''ETO TO SECURE SAID INDEBTEDNESS, IN ACCORDANCE WITH CHI.PTER 112, OF TEE GENEIU,L L11-S OF THE STATE OF TLXA' S, PASSED BY THE THIRTY-SECOND LEGISLATURE' AT ITS REGULAR SESSION. WH£REHS, the City of Georgetovin is a municipal corporation, incorporated and operating under Title 19, of the Revised Civil Sta- tutes of the State of Texas, and owns and operates a water system and a light system in said city; and whereas, in accordance with an ordinance passed t,nd approved by the City Council of said City on October 10th, 1921, said City executed and delivered to the Farriers State Bank of Georgetown, Texas, a Deed of Trust, on the water and light systems belonging to said City and the incomes thereof and everything pertaining thereto, dated October 25th, 1921, which deed of trust is of record in Vol. 36, Page 364, of the Deed of Trust Re- cords of Williamson County, Texas, to secure the payment of eight promissory notes of said city, aggregating Fifteen Thousand($15,000.00) Dollars, said notes as shown by said Deed of Trust being also secured by chattel mortgwge and reservation of title on certain property des- cribed in said Deed of Trust and there now being unpaid on said notes, principal and interest in the amount of Twelve Thousand and Four ($12,400.00)Dollars, to which ordinance and Deed of Trust, reference is here made; and VHEItEAS, said Deed of Trust was executed for the purpose of securing the said Farmers State Bank for money advanced by said bank and used by said -city in improving, enlarging, extending and repairing said water and light systems and in paying for and install- ing the engine and other property described in said ordinance and deed of trust; and whereas, said bank since the execution of said deed of trust has advanced to said city the sum of Fifty -Six Hundred ($5600.00)Dollars, which has been used in improving, enlarging, ex- tending and repairing said systems and said City is now indebted to said bank in the total sum of Eighteen Thousand($18,000.00)Dollars, and desires to refund said indcbtedness without impairing said liens by which a portion of said indebtedness is already secured. THEIaFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF GEORGETOWN, TEXAS: - Section 1. That for the purpose of refunding the said Eighteen Thousand($18,000.00)Dollars, of existing indebtedness, expended as aforesaid in improving, enlarging, extending and re- pairing the eater and light systems belonging to said City, the Mayor of said City is hereby authorized, empowered and directed to execute and deliver to the said Farmers State Bank, Ten promissory C"" of Ueormtown , -I( Or�netrlCGy i�?.A -F�g24 N notes of said City, which. notes are he,einafter described and for the i;uri)ose of securing awId ylromiisso.ry note.s,t® mortgage and encumber said water and light systems c.nd incom(48 thereof Lnd everything pertaining thereto, and acquired or to be acquired, including the lend upon which said water and light systems are situated, toEether mrith all machinery, engines, boilers, dynamos, pumps, generators, switch board, panels, pipelines, wires, tools, water mains and any and all property and things used in connection with and a pert of said systems. That said mayor shall execute a deed of trust on said property to E. G. Gillett, as trustee, to secure said notes but that the mane.gement and control of said systems during the time same are so encumbered shall remain in the hands of the City Council of said City. Said Deed of Trust shall give to the said E. G. Gillett, as trustee., authority and power to sell all of said property after giving notice as provided in Chapter 112, of the General Laus of the State of Texas, passed by the thirty- second Legislature at its regular session, and in the event said pro- perty is so sold, the purchaser thereof shall be granted a franchise to operate said eater and light systems for a term of twenty years, provided, however, that if default should be made in the payment of said notes and such sale by trustee :should not be authorized by a majority vote of the qualified votes of said City then and in that event, said water and light systems shall be placed in the hands of a Board of Trustees of three members, one of vhom shall be the mayor of said city, and R. E. Ward and E. G.-Gillett, of Georgetown, Wil- liamson Colmty, Texas, are herE;by named as the other trustees to manage, control and operate said systems as provided in said Chap- ter 112, and said trustees shall receive as their compensation for managing and controlling said systems, five per cent of the gross receipts and shall retain possession of said systems until said in- debtedness has been fully paid off and discharged; if the said E. G. Gillett or R. E. Ward or any successor of theirs should die or remove from the City of Georgetoi:,n, Texas, or fail or refuse to act in such vapacity then the mayor of said city and the remaining trustee shall select'a successor for the one not acting; said trus- tees after paying the necessary running expenses of said systems and -their commission shall pay the balance of the income of said systems on said notes and said trustees shall have the right to make :such rules and regulations as are right and proper for carry- ing on the business of raid systems. Section 2. That said Mayor shall execute for said City ten promissory notes to be of even date %,s ith said Deed of Trust, the .first note ,being for the sum of $1000.00, the next eight notes being for Two Thousand ( 2000.00)Dollars, each, and the last note being for the sum of $1000.00, said notes, to be due and payable 3-6-9-12-15-18-21-24-27 and 30 months from date, respectively, payable to the order of the Farmers State Bank of Georgetown, Texas, to bear interest at the rate of eight per cent per a.nnum from date, the interest payable annually as it accrues, shall provide for ten per cent additional if placed in the hands of an attorney, as attorney's fees for collection, and shall provide that if' default shall be made in the payment of any installment of principal or interest, 99 days written notice shall be given to each member of the City Council of such City and to each mem- ber of said Board of Trustees, th t payment has beer_ demanded and default made, which notice shall be given in accordance with the provisions of said Chapter 112, and if all amounts due are not paid within said 90 days then the v:hole of said indebtedness shall ma- ture and the deed of trust shall be subject to foreclosure. Section 3. That the signature of the said Mayor to said deed of trust and to said notes shall be �.ttested by the Secretary of the said City, and the corporate seal- of said City shall be at- tached thereto. Section 4. That the execution of said deed of trust and laid notes, are authorized under and in accordance to Chapter 112, of the General Laws of the State of Texas, passed by the Thirty - Second Legislature, at its regular session, and shall be drawn and executed in accordance with said Chapter 112. Section 5. That the giving of said deed of trust shall not effect nor be effected by the reservation of title and chattel mort- gage lien, which the said Farmers State Bank already holds against the new achinery and appliances installed in said systems as set out in the above mentioned deed of trust, dated October 25th, 1921, and the deed of trust directed to be given by thip_ordinance shall constitute a renewal and extension of the liens given and mentioned in said original deed of trust. Passed and approved this the 9th day of April, A. D. 1923. L. J. DIMITT. 1v11nYOH, OF THE CITY OF GEORGETOViN, TEXAS. ATTEST: GEO . KEAHEY. SECT ETARY OF THE CITY OF GEOR GETOWN, TEY 'S . 3