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HomeMy WebLinkAbout0696 OrdinanceJ L ORDINANCE N0. 6 1O AN ORDINANCE PROVIDING FOR THE GUARANTEE OF LOCAL IMPROVEMENT BONDS IN THE CITY OF PASCO, CREATING A FUND FOR THE PURPOSE OF GUARANTEEING, TO THE EXTENT OF SUCH FUNDS BONDS AND WARRANTS ISSUED AGAINST LOCAL IM- PROVEMENTS THEREIN IN ACCORDANCE WITH CHAPTER 1417 LAWS OF 19239 AS, AMENDED BY CHAPTER 183, LAWS EXTRAORDINARY SESSION 1925, AS AMENDED BY CHAPTER 209 LAWS OF 19279 AS AMENDED BY -CHAPTER 1099 LAWS OF 19337 STATE OF WASHINGTON. THE CITY COUNCIL OF THE CITY OF PASCO DO ORDAIN AS FOLLOWS: Section 1. That in accordance with Chapter 141, Laws of 1923, as amended by Chapter 183, Laws Extraordinary Session 1925, as amended by Chapter 2097 Laws of 1927, as amended by Chapter 109, Lairs of 19339 State of Washington, the City of Pasco hereby establishes and creates: a fund for the purpose of guaranteeing to the extent of such funds, bonds, and warrants, issued against Local Improvement Districts in the City of Pasco, subsequent to the date of taking effect of this ordinance. This fund shall be known and designated as "Local Improvement.District Guaranty Fund". Section 2. That after the passage of this Ordinance there shall be levied, from time to time as other taxes are levied, such sums as may be necessary to meet the financial requirements of the Local Im- provement Guaranty Fund created by this Ordinance; and whenever the City of Pasco shall have paid out of said quaranty fund any sum on account of principal and interest on a local improvement bond or warrant hereunder guaranteed, the City of Pasco, as Trustee for such fund, shall be subrogated to all of the rights of the holder of the bond or interest coupon or warrant so paid and the proceeds thereof shall become a part of said fund. Section 3. That whenever any interest coupon, bond or warrant guaranteed under the provisions of the laws of the State of Washington in pursuance of which this Ordinance is passed shall be in default, the City Clerk shall be and is hereby authorized and directed, upon the.: presentation and delivery of such defaulted bond, coupon or warrant, to execute, sign and deliver to the person or persons present the same in the order of their presentation, and the Treasurer shall honor and pay, a warrant on the Local Improvement Guaranty Fund in such amount as may be necessary to pay in full any such coupon, bond or warrant with any interest that may be due thereon. Any defaulted coupon, bond or warrant received by the City Clerk under the provisions of this Ordinance shall be held for the benefit of said Local Improvement Guaranty Fund. Section 4. Warrants drawing interest at a rate not to exceed six per cent shall be issued, as other warrants are issued by the City, against the said Local Improvement Guaranty Fund to meet any liability accruing against it; and at the time of making its annual budget and tax levy the City shall provide for the levying of a sum sufficient, with the other resources of the fund to pay warrants so issued during the preceding fiscal year; provided, that such warrants shall at no time exeed five per cent of the outstanding bond obligations guaranteed by said fund. Section 5® The City Treasurer is hereby authorized and directed to pay into such Local Improvement Guaranty Fund all interest received from bank deposits of said fund, as well as any surplus remaining in any Local Improvement District Fund guaranteed under said state laws after the payment of all outstanding bonds or warrants payable primarily out of such Local Improvement District Fund., Section 6.� That neither the owner nor the holder of any bond or warrant issued after the passage of this Ordinance shall have any claim therefor against the City of Pasco except for payment from the special assessments made for the improvement for which said bond or warrant was issued, and except as against the Local Improvement Guaranty Fund created by this Ordinance, and the City of Pasco shall not be liable to any holder or owner of such bond or warrant for any loss to the said Guaranty Fund .occurring in the lawful operation thereof by the City., The remedy of the holder or owner of a bond or warrant in case of nonpayment; shall be confined to the enforcement of the assessment and to the Guaranty Fund. A copy of this section of this Ordinance shall be plainly written, printed or engraved on each bond issued and guaranteed hereunder, and the writing, printing or engraving shall be deemed sufficient compliance with the requirements of Section 9405, Remington"s Revised statutes of the State of Washington. Section 7. This Ordinance shall tale effect and be in force from and after five days after its passage, approval and 'publication as by law p rovided. MAYOR. ATTEST: 41 CITY CLERK APPROVED AS TO FORM CITY ATTORNEY r