ORD 1061 07/23/2013 Of C/A
os. rivp
* Alt a *
Texts
"City of Choice"
FINAL
ORDINANCE NO. 10 61
AN ORDINANCE AUTHORIZING THE ISSUANCE OF "CITY OF
CIBOLO, TEXAS GENERAL OBLIGATION BONDS, SERIES 2013";
LEVYING A CONTINUING DIRECT ANNUAL AD VALOREM TAX,
WITHIN THE LIMITATIONS PRESCRIBED BY LAW, FOR THE
PAYMENT OF THE BONDS; PRESCRIBING THE FORM, TERMS,
CONDITIONS, AND RESOLVING OTHER MATTERS INCIDENT AND
RELATED TO THE ISSUANCE, SALE, AND DELIVERY OF THE
BONDS, INCLUDING THE APPROVAL AND DISTRIBUTION OF AN
OFFICIAL STATEMENT PERTAINING THERETO; AUTHORIZING
THE EXECUTION OF A PAYING AGENT/REGISTRAR AGREEMENT
AND AN OFFICIAL BID FORM; COMPLYING WITH THE
PROVISIONS OF THE DEPOSITORY TRUST COMPANY'S LETTER OF
REPRESENTATIONS; AUTHORIZING THE EXECUTION OF ANY
NECESSARY ENGAGEMENT AGREEMENTS WITH THE CITY'S
FINANCIAL ADVISORS AND/OR BOND COUNSEL; AND PROVIDING
FOR AN EFFECTIVE DATE
WHEREAS, the City Council (the Governing Body) of the City of Cibolo, Texas (the
Issuer or the City) hereby finds and determines that general obligation bonds of the City in the
total principal amount of $8,500,000 of the hereinafter defined voter authorization should be
issued and sold at this time, being the third and final installment of general obligation bonds
approved and authorized to be issued at an election held on November 4, 2008, the respective
authorized purposes and amounts authorized to be issued therefor, amounts previously issued,
, amounts being issued pursuant to this ordinance, and amounts remaining to be issued from such
voted authorizations subsequent to the date hereof being as follows:
Bonds Premium
Date Amount Previously Issued allocated to Amount
Voted Purpose Authorized Issued Bonds Herein Voted Authority Unissued
11/04/08 Public Safety Improvements $6,400,000.00 $6,400,000.00 $0.00 $0.00 $0.00
11/04/08 Streets and Related $4,200,000.00 $4,200,000.00 $0.00 $0.00 $0.00
Drainage
11/04/08 Drainage Improvements $9,200,000.00 $5,500,000.00 $3,700,000 $0.00 $0.00
11/04/08 Athletic Field $3,300,000.00 $3,300,000.00 $0.00 $0.00 $0.00
Improvements
11/04/08 Recreation Center $4,800,000.00 $0.00 $4,800,000 $0.00 $0.00
57181195.3
WHEREAS, the City Council intends to issue an aggregate principal amount of
$8,500,000 in general improvement bonds the proceeds of which will be utilized for the purposes
of: (i) making permanent public improvements and for public purposes as hereinafter described;
and(ii)payment of costs of issuance of the general improvement bonds; and
WHEREAS, the City Council hereby finds and determines that issuance of the general
obligation bonds is in the best interests of the residents of the City, now,therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CIBOLO, TEXAS
THAT:
SECTION 1: Authorization - Designation - Principal Amount - Purpose. General
obligation bonds of the Issuer shall be and are hereby authorized to be issued in the aggregate
principal amount of EIGHT MILLION FIVE HUNDRED THOUSAND AND NO/100
DOLLARS ($8,500,000) to be designated and bear the title "City of Cibolo, Texas General
Obligation Bonds, Series 2013" (the Bonds), for the purpose of (i) constructing drainage
improvements; (ii) designing, constructing, acquiring, purchasing, and equipping a recreation
center for the City, including the purchase of land incidental thereto; and (iii) to pay the costs of
issuing the Bonds, in conformity with the laws of the State of Texas, particularly Chapters 1251
and 1331 as amended, Texas Government Code, Chapter 331, as amended, Texas Local
Government Code, the Home Rule Charter of the Issuer this ordinance adopted by the Governing
Body on July 23, 2013, and the election referenced in the preamble to this Ordinance.
SECTION 2: Fully Registered Obligations - Authorized Denominations - Stated
Maturities - Interest Rates — Bond Date. The Bonds are issuable in fully registered form only;
shall be dated July 1, 2013 (the Bond Date) and shall be issued in denominations of$5,000 or
any integral multiple thereof (within a Stated Maturity), shall be lettered "R" and numbered
consecutively from One (1)upward; and the Bonds shall become due and payable on February 1
in each of the years and in principal amounts (the Stated Maturities) and bear interest on the
unpaid principal amounts from the Dated Date, or from the most recent Interest Payment Date
(hereinafter defined) to which interest has been paid or duly provided for, to the earlier of
redemption or to Stated Maturity, at the per annum rates, while Outstanding (hereinafter
defined), in accordance with the following schedule:
Years of Principal Interest
Stated Maturity Amounts ($) Rates (%)
2014 250,000 2.000
2015 340,000 2.000
2016 410,000 2.000
2017 475,000 2.000
2018 270,000 2.000
2019 360,000 2.000
2020 370,000 2.150
2021 375,000 2.250
2022 385,000 2.750
2023 400,000 3.000
2024 410,000 3.000
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Years of Principal Interest
Stated Maturity Amounts ($) Rates (%)
2025 425,000 3.500
2026 440,000 3.500
2027 455,000 3.750
2028 475,000 4.000
2029 490,000 4.000
2030 510,000 4.000
2031 530,000 4.000
2032 555,000 4.000
2033 575,000 4.000
Interest on the Bonds shall be payable on February 1 and August 1 in each year,
commencing February 1, 2014 (the Interest Payment Date), while the Bonds are Outstanding.
SECTION 3: Payment of Bonds - Paying Agent/Registrar. The principal of, premium,
if any, and the interest on the Bonds, due and payable by reason of Stated Maturity, redemption,
or otherwise, shall be payable, without exchange or collection charges to the Holder (as
hereinafter defined), appearing on the registration and transfer books maintained by the Paying
Agent/Registrar (hereinafter defined), in any coin or currency of the United States of America
which at the time of payment is legal tender for the payment of public and private debts, and
such payment of principal of, premium, if any, and interest on the Bonds shall be without
exchange or collection charges to the Holder(as hereinafter defined) of the Bonds.
The selection and appointment of BOKF, NA dba Bank of Texas, Austin, Texas to serve
as the initial Paying Agent/Registrar (the Paying Agent/Registrar) for the Bonds is hereby
approved and confirmed, and the Issuer agrees and covenants to cause to be kept and maintained
at the corporate trust office of the Paying Agent/Registrar books and records (the Security
Register) for the registration, payment, and transfer of the Bonds, all as provided herein, in
accordance with the terms and provisions of a Paying Agent/Registrar Agreement, attached
hereto in substantially final form as Exhibit A, and such reasonable rules and regulations as the
Paying Agent/Registrar and the Issuer may prescribe. The Issuer covenants to maintain and
provide a Paying Agent/Registrar at all times while the Bonds are Outstanding, and any
successor Paying Agent/Registrar shall be (i) a national or state banking institution, or (ii) an
association or a corporation organized and doing business under the laws of the United States of
America or of any state, authorized under such laws to exercise trust powers. Such Paying
Agent/Registrar shall be subject to supervision or examination by federal or state authority and
shall be authorized by law to serve as a Paying Agent/Registrar.
The Issuer reserves the right to appoint a successor Paying Agent/Registrar upon
providing the previous Paying Agent/Registrar with a certified copy of a resolution or ordinance
terminating such agency. Additionally, the Issuer agrees to promptly cause a written notice of
this substitution to be sent to each Holder of the Bonds by United States mail, first-class postage
prepaid, which notice shall also give the address of the corporate office of the successor Paying
Agent/Registrar.
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Principal of, premium, if any, and interest on the Bonds, due and payable by reason of
Stated Maturity, redemption, or otherwise, shall be payable only to the registered owner of the
Bonds (the Holder or Holders) appearing on the Security Register maintained on behalf of the
Issuer by the Paying Agent/Registrar as hereinafter provided (i) on the Record Date (hereinafter
defined) for purposes of paying interest thereon, (ii) on the date of surrender of the Bonds for
purposes of receiving payment of principal thereof upon redemption of the Bonds or at the
Bonds' Stated Maturity, and (iii) on any date for any other purpose. The Issuer and the Paying
Agent/Registrar, and any agent of either, shall treat the Holder as the owner of a Bond for
purposes of receiving payment and all other purposes whatsoever, and neither the Issuer nor the
Paying Agent/Registrar, or any agent of either, shall be affected by notice to the contrary.
Principal of and premium, if any, on the Bonds, shall be payable only upon presentation
and surrender of the Bonds to the Paying Agent/Registrar at its corporate trust office. Interest on
the Bonds shall be paid to the Holder whose name appears in the Security Register at the close of
business on the fifteenth day of the month next preceding the Interest Payment Date for the
Bonds (the Record Date) and shall be paid(i) by check sent on or prior to the appropriate date of
payment by United States mail, first-class postage prepaid, by the Paying Agent/Registrar, to the
address of the Holder appearing in the Security Register, or (ii)by such other method, acceptable
to the Paying Agent/Registrar, requested in writing by the Holder at the Holder's risk and
expense.
If the date for the payment of the principal of, premium, if any, or interest on the Bonds
shall be a Saturday, a Sunday, a legal holiday, or a day on which banking institutions in the city
where the corporate trust office of the Paying Agent/Registrar is located are authorized by law or
executive order to close, then the date for such payment shall be the next succeeding day which
is not such a day. The payment on such date shall have the same force and effect as if made on
the original date any such payment on the Bonds was due.
In the event of a non-payment of interest on a scheduled payment date, and for thirty (30)
days thereafter, a new record date for such interest payment (a Special Record Date) will be
established by the Paying Agent/Registrar, if and when funds for the payment of such interest
have been received from the Issuer. Notice of the Special Record Date and of the scheduled
payment date of the past due interest (the Special Payment Date--which shall be fifteen(15) days
after the Special Record Date) shall be sent at least five (5) business days prior to the Special
Record Date by United States mail, first-class postageprepaid, to the address of each Holder
appearing on the Security Register at the close of business on the last business day next
preceding the date of mailing of such notice.
SECTION 4: Redemption.
A. Optional Redemption of Bonds. The Bonds having Stated Maturities on and after
February 1, 2023 shall be subject to redemption prior to Stated Maturity, at the option of the
Issuer, on February 1, 2022 or on any date thereafter, in whole or in part, in principal amounts of
$5,000 or any integral multiple thereof(and if within a Stated Maturity selected at random and
by lot by the Paying Agent/Registrar) at the redemption price of par plus accrued interest to the
date of redemption.
57181195.3 -4-
B. Exercise of Redemption Option. At least forty-five (45) days prior to a date set
for the redemption of the Bonds (unless a shorter notification period shall be satisfactory to the
Paying Agent/Registrar), the Issuer shall notify the Paying Agent/Registrar of its decision to
exercise the right to redeem the Bonds, the principal amount of each Stated Maturity to be
redeemed, and the date set for the redemption thereof. The decision of the Issuer to exercise the
right to redeem the Bonds shall be entered in the minutes of the Governing Body of the Issuer.
C. Selection of Bonds for Redemption. If less than all Outstanding Bonds of the
same Stated Maturity are to be redeemed on a redemption date, the Paying Agent/Registrar shall
select at random and by lot the Bonds to be redeemed, provided that if less than the entire
principal amount of a Bond is to be redeemed, the Paying Agent/Registrar shall treat such Bond
then subject to redemption as representing the number of Bonds Outstanding which is obtained
by dividing the principal amount of such Bond by$5,000.
D. Notice of Redemption. Not less than thirty (30) days prior to a redemption date
for the Bonds, the Paying Agent/Registrar shall cause a notice of redemption to be sent by
United States mail, first-class postage prepaid, in the name of the Issuer and at the Issuer's
expense, by the Paying Agent/Registrar to each Holder of a Bond to be redeemed in whole or in
part at the address of the Holder appearing on the Security Register at the close of business on
the business day next preceding the date of mailing such notice, and any notice of redemption so
mailed shall be conclusively presumed to have been duly given irrespective of whether received
by the Holder.
All notices of redemption shall (i) specify the date of redemption for the Bonds,
(ii) identify the Bonds to be redeemed and, in the case of a portion of the principal amount to be
redeemed, the principal amount thereof to be redeemed, (iii) state the redemption price, (iv) state
that the Bonds, or the portion of the principal amount thereof to be redeemed, shall become due
and payable on the redemption date specified, and the interest thereon, or on the portion of the
principal amount thereof to be redeemed, shall cease to accrue from and after the redemption
date, and (v) specify that payment of the redemption price for the Bonds, or the principal amount
thereof to be redeemed, shall be made at the corporate trust office of the Paying Agent/Registrar
only upon presentation and surrender thereof by the Holder. This notice may also be published
once in a financial publication, journal, or reporter of general circulation among securities
dealers in the City of New York, New York (including, but not limited to, The Bond Buyer and
The Wall Street Journal), or in the State of Texas (including, but not limited to, The Texas Bond
Reporter).
If a Bond is subject by its terms to redemption and has been called for redemption and
notice of redemption thereof has been duly given or waived as hereinabove provided, such Bond
(or the principal amount thereof to be redeemed) so called for redemption shall become due and
payable, and if money sufficient for the payment of such Bonds (or of the principal amount
thereof to be redeemed) at the then applicable redemption price is held for the purpose of such
payment by the Paying Agent/Registrar, then on the redemption date designated in such notice,
interest on the Bonds (or the principal amount thereof to be redeemed) called for redemption
shall cease to accrue, and such Bonds shall not be deemed to be Outstanding.
57181195.3 -5-
E. Transfer/Exchange of Bonds. Neither the Issuer nor the Paying Agent/Registrar
shall be required (1) to transfer or exchange any Bond during a period beginning forty-five (45)
days prior to the date fixed for redemption of the Bonds or (2) to transfer or exchange any Bond
selected for redemption, provided, however, such limitation of transfer shall not be applicable to
an exchange by the Holder of the unredeemed balance of a Bond which is subject to redemption
in part.
SECTION 5: Execution - Registration. The Bonds shall be executed on behalf of the
Issuer by its Mayor under the seal of the Issuer reproduced or impressed thereon and attested by
its City Secretary. The signature of any of said officers on the Bonds may be manual or
facsimile. Bonds bearing the manual or facsimile signatures of individuals who were, at the time
of the Bond Date,the proper officers of the Issuer shall bind the Issuer, notwithstanding that such
individuals or either of them shall cease to hold such offices prior to the delivery of the Bonds to
the Purchasers (hereinafter defined), all as authorized and provided in Chapter 1201, as amended,
Texas Government Code.
No Bond shall be entitled to any right or benefit under this Ordinance, or be valid or
obligatory for any purpose, unless there appears on such Bond either a certificate of registration
substantially in the form provided in Section 8C, executed by the Comptroller of Public
Accounts of the State of Texas or his duly authorized agent by manual signature, or a certificate
of registration substantially in the form provided in Section 8D, executed by the Paying
Agent/Registrar by manual signature, and either such certificate upon any Bond shall be
conclusive evidence, and the only evidence, that such Bond has been duly certified or registered
and delivered.
SECTION 6: Registration - Transfer - Exchange of Bonds - Predecessor Bonds. A
Security Register relating to the registration,payment, transfer, or exchange of the Bonds shall at
all times be kept and maintained by the Issuer at the corporate trust office of the Paying
Agent/Registrar, and the Paying Agent/Registrar shall obtain, record, and maintain in the
Security Register the name and address of each Holder of the Bonds issued under and pursuant to
the provisions of this Ordinance. Any Bond may, in accordance with its terms and the terms
hereof, be transferred or exchanged for Bonds of other authorized denominations upon the
Security Register by the Holder, in person or by his duly authorized agent, upon surrender of
such Bond to the Paying Agent/Registrar for cancellation, accompanied by a written instrument
of transfer or request for exchange duly executed by the Holder or by his duly authorized agent,
in form satisfactory to the Paying Agent/Registrar.
Upon surrender for transfer of any Bond at the corporate trust office of the Paying
Agent/Registrar, the Paying Agent/Registrar shall register and deliver, in the name of the
designated transferee or transferees, one or more new Bonds executed on behalf of, and
furnished by, the Issuer of authorized denominations and having the same Stated Maturity and of
a like interest rate and aggregate principal amount as the Bond or Bonds surrendered for transfer.
At the option of the Holder, Bonds may be exchanged for other Bonds of authorized
denominations and having the same Stated Maturity, bearing the same rate of interest, and of like
aggregate principal amount as the Bonds surrendered for exchange, upon surrender of the Bonds
to be exchanged at the corporate trust office of the Paying Agent/ Registrar. Whenever any
57181195.3 -6-
Bonds are so surrendered for exchange, the Issuer shall execute and the Paying Agent/Registrar
shall register and deliver new Bonds executed on behalf of, and furnished by, the Issuer to the
Holder requesting the exchange.
All Bonds issued upon any transfer or exchange of Bonds shall be delivered at the
corporate trust office of the Paying Agent/Registrar, or be sent by United States registered mail
to the Holder at his request, risk, and expense, and upon the delivery thereof, the same shall be
the valid and binding obligations of the Issuer, evidencing the same obligation to pay, and
entitled to the same benefits under this Ordinance, as the Bonds surrendered upon such transfer
or exchange.
All transfers or exchanges of Bonds pursuant to this Section shall be made without
expense or service charge to the Holder, except as otherwise herein provided, and except that the
Paying Agent/Registrar shall require payment by the Holder requesting such transfer or exchange
of any tax or other governmental charges required to be paid with respect to such transfer or
exchange.
Bonds canceled by reason of an exchange or transfer pursuant to the provisions hereof are
hereby defined to be "Predecessor Bonds", evidencing all or a portion, as the case may be, of the
same debt evidenced by the new Bond or Bonds registered and delivered in the exchange or
transfer therefor. Additionally, the term Predecessor Bonds shall include any Bond registered
and delivered pursuant to Section 16 in lieu of a mutilated, lost, destroyed, or stolen Bond which
shall be deemed to evidence the same obligation as the mutilated, lost, destroyed, or stolen Bond.
SECTION 7: Initial Bond(s). The Bonds herein authorized shall be issued initially
either (i) as a fully registered Bond in the total principal amount of $8,500,000 with principal
installments to become due and payable as provided in Section 2 and numbered T-1, or (ii) as
one (1) fully registered Bond for each year of Stated Maturity in the applicable principal amount,
interest rate, and denomination and to be numbered consecutively from T-1 and upward (the
Initial Bond(s)) and, in either case, the Initial Bond(s) shall be registered in the name of the
Purchasers or the designee thereof. The Initial Bond(s) shall be the Bonds submitted to the
Office of the Attorney General of the State of Texas for approval and certified and registered by
the Office of the Comptroller of Public Accounts of the State of Texas. At any time after the
delivery of the Initial Bond(s) to the Purchasers, the Paying Agent/Registrar, upon written
instructions from the purchaser(s), or his or their designee, shall cancel the Initial Bond(s)
delivered hereunder and exchange therefor definitive Bonds of authorized denominations, Stated
Maturities, principal amounts, and bearing applicable interest rates, and shall be lettered "R" and
numbered consecutively from one (1) upward, for transfer and delivery to the Holders named
and at the addresses identified therefor; all pursuant to and in accordance with and pursuant to
such written instructions from the Purchasers, or the designee thereof, and such other
information and documentation as the Paying Agent/Registrar may reasonably require.
SECTION 8: Forms.
A. Forms Generally. The Bonds, the Registration Certificate of the Comptroller of
Public Accounts of the State of Texas, the Registration Certificate of Paying Agent/Registrar,
and the form of Assignment to be printed on each of the Bonds shall be substantially in the forms
57181195.3 -7-
set forth in this Section with such appropriate insertions, omissions, substitutions, and other
variations as are permitted or required by this Ordinance and may have such letters, numbers, or
other marks of identification (including identifying numbers and letters of the Committee on
Uniform Securities Identification Procedures of the American Bankers Association) and such
legends and endorsements (including insurance legends and any reproduction of an opinion of
counsel) thereon as may, consistent herewith, be established by the Issuer or determined by the
officers executing the Bonds as evidenced by their execution thereof. Any portion of the text of
any Bond may be set forth on the reverse thereof, with an appropriate reference thereto on the
face of the Bond.
The definitive Bonds shall be printed, lithographed, or engraved or produced in any other
similar manner, all as determined by the officers executing the Bonds as evidenced by their
execution thereof, but the Initial Bond(s) submitted to the Attorney General of Texas may be
typewritten or photocopied or otherwise reproduced.
B. Form of Bond.
REGISTERED
REGISTERED PRINCIPAL AMOUNT
NO. $
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF GUADALUPE
CITY OF CIBOLO, TEXAS
GENERAL OBLIGATION BOND, SERIES 2013
Bond Date: Interest Rate: Stated Maturity: CUSIP No.:
July 1, 2013
REGISTERED OWNER:
PRINCIPAL AMOUNT: DOLLARS
The City of Cibolo, Texas (the Issuer), a body corporate and municipal corporation
located in the County of Guadalupe, State of Texas, for value received, acknowledges itself
indebted to and hereby promises to pay to the order of the Registered Owner named above (the
Holder), or the registered assigns thereof, on the Stated Maturity date specified above, the
Principal Amount stated above (or so much thereof as shall not have been paid upon prior
redemption) and to pay interest on the unpaid Principal Amount hereof(computed on the basis of
a 360-day year of twelve 30-day months) from the Dated Date, or from the most recent Interest
Payment Date to which interest has been paid or duly provided for, to the earlier of redemption
or Stated Maturity, at the per annum rate specified above; such interest being payable on
February 1 and August 1 of each year (the Interest Payment Date), commencing February 1,
2014.
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Principal and premium, if any, of this Bond shall be payable to the Registered Owner
hereof(the Holder), upon presentation and surrender, at the corporate trust office of the Paying
Agent/Registrar executing the registration certificate appearing hereon, or its successor. Interest
shall be payable to the Holder of this Bond (or one or more Predecessor Bonds, as defined in the
Ordinance hereinafter referenced) whose name appears on the Security Register maintained by
the Paying Agent/Registrar at the close of business on the Record Date, which is the fifteenth
day of the month next preceding the Interest Payment Date. All payments of principal of,
premium, if any, and interest on this Bond shall be in any coin or currency of the United States
of America which at the time of payment is legal tender for the payment of public and private
debts. Interest shall be paid by the Paying Agent/Registrar by check sent on or prior to the
appropriate date of payment by United States mail, first-class postage prepaid, to the Holder
hereof at the address appearing in the Security Register or by such other method, acceptable to
the Paying Agent/Registrar, requested by the Holder hereof at the Holder's risk and expense.
This Bond is one of the series specified in its title issued in the aggregate principal
amount of$8,500,000 (the Bonds) pursuant to an ordinance adopted by the Governing Body of
the Issuer (the Ordinance), for the purpose of (i) constructing drainage improvements; (ii)
designing, constructing, acquiring, purchasing, and equipping a recreation center for the City,
including the purchase of land incidental thereto; and (iii) to pay the costs of issuing the Bonds,
in conformity with the laws of the State of Texas, particularly Chapters 1251 and 1331 as
amended, Texas Government Code, Chapter 331, as amended, Texas Local Government Code,
the Home Rule Charter of the Issuer, the Ordinance, and the election referenced in the preamble
to the Ordinance..
As specified in the Ordinance, the Bonds having Stated Maturities on and after February
1, 2023 shall be subject to redemption prior to Stated Maturity, at the option of the City, on
February 1, 2022 or on any date thereafter, in whole or in part in principal amounts of$5,000 or
any integral multiple thereof(and if within a Stated Maturity selected at random and by lot by
the Paying Agent/Registrar) at the redemption price of par, together with accrued interest to the
date of redemption, and upon thirty (30) days prior written notice being given by United States
mail, first-class postage prepaid, to Holders of the Bonds to be redeemed, and subject to the
terms and provisions relating thereto contained in the Ordinance. If this Bond is subject to
redemption prior to Stated Maturity and is in a denomination in excess of $5,000, portions of the
principal sum hereof in installments of$5,000 or any integral multiple thereof may be redeemed,
and, if less than all of the principal sum hereof is to be redeemed, there shall be issued, without
charge therefor, to the Holder hereof, upon the surrender of this Bond to the Paying
Agent/Registrar at its corporate trust office, a new Bond or Bonds of like Stated Maturity and
interest rate in any authorized denominations provided in the Ordinance for the then unredeemed
balance of the principal sum hereof.
If this Bond (or any portion of the principal sum hereof) shall have been duly called for
redemption and notice of such redemption has been duly given, then upon such redemption date
this Bond (or the portion of the principal sum hereof to be redeemed) shall become due and
payable, and, if money for the payment of the redemption price and the interest accrued on the
principal amount to be redeemed to the date of redemption is held for the purpose of such
payment by the Paying Agent/Registrar, interest shall cease to accrue and be payable hereon
from and after the redemption date on the principal amount hereof to be redeemed. If this Bond
57181195.3 -9-
is called for redemption, in whole or in part, the Issuer or the Paying Agent/Registrar shall not be
required to issue, transfer, or exchange this Bond within forty-five (45) days of the date fixed for
redemption; provided, however, such limitation of transfer shall not be applicable to an exchange
by the Holder of the unredeemed balance hereof in the event of its redemption in part.
The Bonds of this series are payable from the proceeds of an ad valorem tax levied,
within the limitations prescribed by law, upon all taxable property within the Issuer.
Reference is hereby made to the Ordinance, a copy of which is on file in the corporate
trust office of the Paying Agent/Registrar, and to all of the provisions of which the Holder by his
acceptance hereof hereby assents, for definitions of terms; the description of and the nature and
extent of the tax levied for the payment of the Bonds; the terms and conditions relating to the
transfer or exchange of this Bond; the conditions upon which the Ordinance may be amended or
supplemented with or without the consent of the Holders; the rights, duties, and obligations of
the Issuer and the Paying Agent/Registrar; the terms and provisions upon which this Bond may
be redeemed or discharged at or prior to its Stated Maturity and deemed to be no longer
Outstanding thereunder; and for the other terms and provisions thereof. Capitalized terms used
herein have the same meanings assigned in the Ordinance.
As provided in the Ordinance and subject to certain limitations contained therein, this
Bond is transferable on the Security Register of the Issuer, upon surrender of this Bond for
transfer at the corporate trust office of the Paying Agent/Registrar, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the Paying
Agent/Registrar duly executed by the Holder hereof, or his duly authorized agent, and thereupon
one or more new fully registered Bonds of the same Stated Maturity, of authorized
denominations, bearing the same rate of interest, and of the same aggregate principal amount will
be issued to the designated transferee or transferees.
The Issuer and the Paying Agent/Registrar, and any agent of either, shall treat the Holder
hereof whose name appears on the Security Register (i) on the Record Date as the owner hereof
for purposes of receiving payment of interest hereon, (ii) on the date of surrender of this Bond as
the owner hereof for purposes of receiving payment of principal hereof at its Stated Maturity or
its redemption, in whole or in part, and (iii) on any other date as the owner hereof for all other
purposes, and neither the Issuer nor the Paying Agent/Registrar, or any such agent of either, shall
be affected by notice to the contrary. In the event of a non-payment of interest on a scheduled
payment date, and for thirty(30) days thereafter, a new record date for such interest payment (a
Special Record Date) will be established by the Paying Agent/Registrar, if and when funds for
the payment of such interest have been received from the Issuer. Notice of the Special Record
Date and of the scheduled payment date of the past due interest (the Special Payment Date -
which shall be fifteen(15) days after the Special Record Date) shall be sent at least five (5)
business days prior to the Special Record Date by United States mail, first-class postage prepaid,
to the address of each Holder appearing on the Security Register at the close of business on the
last business day next preceding the date of mailing of such notice.
It is hereby certified, covenanted, and represented that all acts, conditions, and things •
required to be performed, exist, and be done precedent to or in the issuance of this Bond in order
to render the same a legal, valid, and binding obligation of the Issuer have been performed, exist,
57181195.3 -10-
and have been done, in regular and due time, form, and manner, as required by the laws of the
State of Texas and the Ordinance, and that the issuance of this Bond does not exceed any
constitutional or statutory limitation; and that due provision has been made for the payment of
the principal of, premium if any, and interest on the Bonds by the levy of a tax as aforestated. In
case any provision in this Bond or any application thereof shall be deemed invalid, illegal, or
unenforceable, the validity, legality, and enforceability of the remaining provisions and
applications shall not in any way be affected or impaired thereby. The terms and provisions of
this Bond and the Ordinance shall be construed in accordance with and shall be governed by the
laws of the State of Texas.
IN WITNESS WHEREOF, the Issuer has caused this Bond to be duly executed under its
official seal.
CITY OF CIBOLO, TEXAS
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ATTEST:
City Secretary
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