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HomeMy Public PortalAbout19720719CCMeeting1 1 1 71 Savannah Beach, Georgia July 19, 1972 The Regular July Meeting of Savannah Beach City Council was held this afternoon at 3 :00 P.M., with Mayor Michael J. Counihan presiding and the following Councilmen present: James Stettler, Edward Jung, Robert Cary, George Schwarz and Perry Zittrauer, Jr. City Attorney Bart Shea was also present. Mr. Ernest Hosti was a visitor at the Meeting. Mayor Counihan announced to Council that our Pollution Abatement Program was moving along nicely. He said that everything concerning the Bond Issue had been approved and that the bonds were now being printed. Mayor Counihan stated that he would like Council to amend our present Ordinance concerning the sale of alcoholic beverages in such a way that we would use the same language in our Ordinance that is used in the State Law. He noted that the State Law does not say that food and beverage places have to close at 12 :00 Midnight, it simply says that the sale of alcoholic beverages must stop at 12 :00 Midnight. City Attorney Shea read the section from the Georgia Code that would be embodied into our Ordinance. Councilman Cary moved that this be accepted as an amendment to our Ordinance And that it be adopted on first reading. The motion was seconded by Councilman Jung and unanimously carried. City Attorney Shea informed Council that it would be necessary for them to adopt a Resolution calling for a Special Election to elect a Mayor and Council on August 31, 1972 to conform with the Order of Superior Court Judge Paul E. Caswell issued in court on July 18, 1972. The motion to adopt the Resolution was made by Councilman Cary; seconded by Councilman Zittrauer and unanimously carried. JUDGE CASWELL'S ORDER Councilman Cary moved that the Mayor and the City Clerk be authorized to sign the bond validation for the new Water and Sewer Revenue Indenture Certificates being issued for the new Sewage Treatment Plant and Collection System. The motion was seconded by Councilman Zittrauer and unanimously carried. A Resolution providing for the issuance of $1,455,000 in principal amount of City of Savannah Beach Water and Sewer Revenue Bonds was read the City Attorney. He stated that this was the second reading of the Resolution authorizing the issuance of the Bonds themselves. RESOLUTION 72 Councilman Cary moved the adoption of the Resolution. Councilman Zittrauer seconded the motion and it was unanimously carried. Mayor Counihan then recognized Mr. Earl Anderson, a visitor to the meeting. Mr. Anderson stated that he had two questions he would like to ask the Mayor and Council, In the first question he asked Mayor Counihan if he was aware of the hordes of gestapo in their specially constructed paddy wagon who descended on our city last Friday evening and hauled off all the bad guys and made us pure again. Mayor Counihan stated that he knew nothing of this raid but that he did have a clipping from the newspaper which might explain it. He then read from the clipping that Mr. Hendrix had wired Governor Carter and Lieutenant Governor Maddox to send an investigation team here. Mr. Anderson asked if the Mayor and Council had requested County help in this raid. Mayor Counihan stated that he had no knowledge of any of this and that he felt we had a very capable police force down here that could take care of almost any emergency and he certainly had not asked for any outside help. Mayor Counihan, noting the presence of Mr. S. R. Kent who is the Superintendent of the Sewer and Water Departments, asked for a progress report on the new Sewage Treatment Plant. Mr. Kent stated that all of the fill was completed and work had now begun on the foundations. He stated further that the completion date was set for May 1, 1973. Councilman Cary stated that since the mail had been held up by the post office and we did not have our bills ready for this meeting, he would recommend that Mr. Jung, Finance Chairman, be authorized to review them and approve and sign all the bills for this month. Councilman Cary put this recommendation in the form of a motion. It was seconded by Councilman Jung and unanimously carried. There being no further business, the Meeting was adjourned to the next regular or special called meeting. CLERK OF COUNCIL dL_. YOR 1 1 1 1 1 1 With the presentation of the aforegoing facts in regard to Officers Palmer and Helverson, who have been suspended indefinitely I recommend to Council that they -- Palmer and Helverson - -be officially dismissed. Respectfully, Signed by Robert F. Cary Robert F. Cary Police Commissioner 1 1 STATE OF GEORGIA ) ) IN THE SUPERIOR COURT OF CHATHAM COUNTY, GEORGIA COUNTY OF CHATHAM ) MICHAEL J. COUNIHAN, ) ) -V- ) ) WILLIAM ALLEN HENDRIX,. SHELBY ) MYRICK, JR., Ordinary, Chatham ) County, Georgia and Election ) Superintendent; MICHAEL J. COUNIHAN, ) Mayor; EDWARD JUNG, ROBERT. F. CARY, ) EDWARD W. TOWNS, GEORGE F. SCHWARZ, ) JAMES M. STETTLER and PERRY A. ) ZITTRAUER, JR., Councilmen of the ) City of Savannah Beach, Tybee ) Island, Georgia, ) CIVIL ACTION NO. 8256 A N D KAREN LOSEY, ) ) -V- ) ) MICHAEL J. COUNIHAN, Mayor, ) Savannah Beach, Georgia, ROBERT F. ) CIVIL ACTION NO. 8260 CARY, PERRY A. ZITTRAUER, JR., ) EDWARD JUNG, GEORGE .F. SCHWARZ, ) JAMES M. STETTLER and EDWARD W. ) TOWNS, As Councilmen, Savannah ) Beach, Georgia ) O R D E R THE FOREGOING MATTERS having come for hearing and by consent of counsel for all parties the same were consolidated and after hearing evidence, IT IS CONSIDERED, ORDERED AND ADJUDGED that Plaintiff's Petition for Declaratory Judgment is denied and both parties' motion to dismiss each others appeal is denied. After hearing evidence on the appeal, it appears that primarily due to the violation of the secrecy of the ballots the election is so defective as to the officers in said election as to place in doubt the entire election for the election not only of Mayor but also other candidates for councilmen, then said election is hereby declared to be void and invalid and a second election to fill the office of Mayor and six Councilmen of the municipality of the City 1 1 1 of Savannah Beach, Tybee Island, Georgia is hereby declared. for August 31, 1972. That said election shall be held in accordance with the Municipal Election Code, however the following deadlines shall be met by the election officials. All persons must be registered prior to noon on August 1, 1972 and on that date the registration list shall be closed. Last day for purging any persons and challeng- ing their registration from the election list shall be August 11, 1972 and said persons shall receive notice of said purging and challenge as provided by the Code. Within three (3) days after receipt of said notice any person so purged or challenged may appeal to the registrars and a decision shall be rendered within three (3) days but in no case later than August 16, 1972. All appeals to theSuperior Court from the decision of the Registrars must be filed not later than noon on August 20, 19 72. In the event of a tied vote in any election between two (2) or more candidates for any office, whether Mayor or Councilmen, a new election between only the candidates thus tied in number of votes for that particular office shall be ordered and held on the 14th day after the holding of the first election, that is to say, September 14, 1972• Inauguration of the Mayor and six (6) Councilmen shall be held on September 20, 1972. Candidates for the office of Mayor and Councilmen shall be limited to those candidates who were duly qualified to run for the office of either Mayor and /or Councilmen as of the April 3, 1972 election of the municipality. The present Mayor, namely, Michael J. Counihan, and the present incumbents, namely, Robert F. Cary, Edward Jung, George F. Schwarz, James M. Stettler, Edward W. Towns and Perry A. Zittrauer, shall continue in office as the duly authorized Mayor and Councilmen of the Municipality until such time as their successors are duly elected and qualified. IT FURTHER APPEARING that a separate suit has been filed by the Liberty National Bank and Trust Company of Savannah, Georgia against the present Mayor and Councilmen questioning the validity . and authority of the present Mayor and Councilmen to sign checks and negotiate official papers for and on behalf of the Municipality, the same being case number 8380, currently pending in the office of the Clerk of the Superior Court of Chatham County, Georgia; IT IS FURTHER CONSIDERED, ORDERED AND ADJUDGED that the present Mayor and Councilmen shall continue to have the authority to sign and negotiate checks and any other official papers or documents on behalf of the Municipality until such time as their 1 1 successors are duly elected and qualified, UPON AGREEMENT of counsel for all parties concerned in both election appeals, and upon the resignation of the present Superin- tendent, namely, Honorable Shelby Myrick, Jr., Ben S. Axson, Clerk of the Superior Court of Chatham County, Georgia, is hereby appointed to serve as the Superintendent of the Municipality election to be held on August 31, 1972 and is hereby clothed with all of the powers, and duties as set forth in the Georgia Municipal Election Code. The Municipal Election Superintendent shall appoint poll officers, including chief Manager, Assistant Managers, and Clerks, giving each equal representation as possible to all candidates, Said Superintendent is further authorized to duplicate and make copies of any and all election material currently impounded as the result of said election appeals and make available such copies to the Board of Registrars and any other officials connected with or having anything to do with said election including candidates and the attorneys of interested parties. IN OPEN COURT this 18th day of July, 1972. Signed by Paul E. Caswell Paul E. Caswell, Judge, Atlantic Judicial Circuit, presiding 1 1 1 R E S O L U T I 0 N WHEREAS, under order of the Superior Court, Judge Paul E. Caswell, Atlantic Judicial Circuit, presiding, dated July 18, 1972, the Municipal election of April 3, 1972 for the office of Mayor and six Councilmen of the Municipality was declared void and invalid, and a special second election to fill the office of Mayor and six Councilmen of said Municipality was declared for August 31, 1972; and WHEREAS, the governing authority of the Municipality shall by this resolution call such special second election for purposes of electing a Mayor and six Councilmen of the Municipality; and WHEREAS, said election shall be held in accordance with the provisions of the Georgia Municipal Election Code and the election ordinances of the Municipality, except where modified by the provisions of said Court Order of July 18, 1972. NOW, THEREFORE, BE IT RESOLVED, and it is hereby resolved by the authority of the foregoing: 1. A special second election-is-hereby called for the purposes of electing a Mayor-and six Councilmen of the City of Savannah Beach, Tybee Island, Georgia on August 31, 1972 from 7:00 o'clock A.M. to 7:00 o'clock P.M., such date being no earlier than thirty (30) days nor later than sixty (60) days after the call of such election by the governing body of the Municipality in accordance with the provisions of Georgia Municipal Election Code, §34A -704. 2. Said election shall be conducted in accordance with the provisions of the Georgia Municipal Election Code and the election ordinances of the Municipality except where modified by the provisions of said Court Order of July 18, 1972. 3. Candidates for the office of Mayor and Councilmen shall be limited to those candidates who were duly qualified to run for the office of either Mayor or Councilmen as of the April 3, 1972 election of the Municipality. Candidates shall be required to qualify between August 1, 1972 and 5:00 o'clock P.M. on August 21, 1972. No qualifying fee shall be required of any candidate. 4. Notice of such special second election shall be published promptly in a newspaper of general circulation in the Municipality, to wit: The Savannah Evening Press. 5. A copy of the Court Order of July 18, 1972 is attached hereto and made a part of this Resolution. 6. The election Superintendent of said special second election shall be Mr. Ben P. Axson, Clerk of the Superior Court, Chatham County, Georgia who shall be clothed with all the powers and duties as set forth in the Georgia Municipal Election Code and the Election Ordinances of the Municipality. ADOPTED IN OPEN COUNCIL MEETING THIS 19th day of JULY, 1972. ATTEST: 1 CITY OF SAVANNAH BEACH, TYBEE ISLAND, GEORGIA B Ma or Clerk of Council 1 1 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAVANNAH BEACH, TYBEE ISLAND, TO PROVIDE FOR THE ISSUANCE OF $1,455,000, IN PRINCIPAL AMOUNT OF CITY OF SAVANNAH BEACH WATER AND SEWER REVENUE BONDS, SERIES 1972, PURSUANT TO AND IN CONFORMITY WITH THE CONSTITUTION AND STATUTES OF THE STATE OF GEORGIA, AND AN ORDINANCE OF SAID POLITICAL SUBDIVISION ADOPTED NOVEMBER 9, 1950, PAYABLE PRIMARILY FROM THE EARNINGS OF THE WATER AND SEWER SYSTEM OF SAID POLITICAL SUBDIVISION AS IT NOW EXISTS AND AS IT MAY HEREAFTER BE ADDED TO, EXTENDED, AND IMPROVED, TO FINANCE, IN WHOLE OR IN PART, THE COST OF CONSTRUCTING EXTENSIONS, ADDITIONS, AND IMPROVEMENTS TO, AND EQUIPMENT FOR THE WATER AND SEWER SYSTEM OF SAID POLITICAL SUBDIVISION AND FOR ACQUIRING THE NECESSARY PROPERTY THEREFOR FOR ITS OWN USE AND FOR THE USE OF PUBLIC AND PRIVATE CONSUMERS WITHIN AND WITHOUT THE TERRITORIAL LIMITS OF SAID POLITICAL SUBDIVISION, TO PROVIDE FUNDS TO REDEEM AND ACQUIRE PURSUANT TO AND IN CONFORMITY WITH THE PROVISIONS OF SAID ORDINANCE OF NOVEMBER 9, 1950, ALL THE OUTSTANDING AND CALLABLE SAVANNAH BEACH, TYBEE ISLAND, WATER REVENUE ANTICIPATION CERTIFICATES, DATED DECEMBER 1, 1950, TO PROVIDE FOR THE ISSUANCE, UNDER CERTAIN CIRCUMSTANCES, OF ADDITIONAL BONDS ON A PARITY, AS TO THE PLEDGE OF AND CHARGE ON THE EARNINGS OF SAID SYSTEM, WITH THE BONDS HEREBY AUTHORIZED, TO PROVIDE FOR PRESCRIBING RATES AND COLLECTING FEES, TOLLS, AND CHARGES FOR THE SERVICES OF SAID SYSTEM, TO PROVIDE FOR THE CREATION OF CERTAIN FUNDS TO PAY THE PRINCIPAL OF AND INTEREST ON SAID BONDS, FOR THE REMEDIES OF THE OWNERS OF SAID BONDS, AND FOR OTHER PURPOSES. PREAMBLE 1. Under and by virtue of the authority of the Revenue Bond Law of Georgia, codified in Ga. Code Ann., Ch. 87 -8, the Constitution of the State of Georgia, the general laws of the State of Georgia, and the laws of the State of Georgia relating to the City of Savannah Beach, Tybee Island, a political subdivision of the State of Georgia and a municipality as defined in said Revenue Bond Law, hereinafter sometimes designated as the city, the municipality, or the political subdivision, said political subdivision is authorized to acquire, construct and equip additional water and sewer facilities and to add to, extend, improve, and equip its existing water and sewer system and operate and maintain said system as added to, extended, improved, and equipped for its own use and for the use of public and private consumers both within and without the boundaries of said political subdivision, to prescribe and revise rates and collect fees, tolls, and charges for the services and facilities furnished by said system as added to, extended, improved, and equipped, and, in anticipa- tion of the collection of revenues from such water and sewer system, to issue revenue bonds to finance, in whole or in part, the cost of such acquisition, construction, additions, extensions, improvements, and equipment and to pay the expenses incident thereto. 2. (a) Said political subdivision pursuant to an ordinance adopted November 9,_1950,. has heretofore issued $165,000 in principal amount of Savannah Beach, Tybee Island, Water Revenue Anticipation Certificates, dated December 1, 1950, hereinafter sometimes designated as the Series 1950 bonds, and has authorized the issuance of an additional $135,000 in principal amount of such obligations under the conditions stated in said ordinance. Said ordinance provided that the principal amount of the $165,000 of Series 1950 bonds which have actually been issued and delivered would bear interest at the rate of 3 1/4% per annum and would mature and be paid on December 1, in the years and amounts as follows: $3,000 in each of the years 1951 to 1953, inclusive; $4,000 in each of the years 1954 to 1958, inclusive; $5,000 in each of the years 1959 to 1964, inclusive; $6,000 in each of the years 1965 to 1969, inclusive; $7,000 in each of the years 1970 to 1979, inclusive, and $6,000 in the year of 1980. of which $52,000 in principal amount are now outstanding maturing serially in varying amounts in each of the years 1972 through 1980. (b) The right to issue the aforesaid additional $135,000 in principal amount of such obligations is hereby revoked and rescinded for such period of time as any bonds issued hereunder shall be outstanding or any interest due thereon shall be unpaid, and from and after the date hereof no additional obligations shall be issued pursuant to said ordinance of November 9, 1950, during such period. (c) Under and by virtue of authority of Article II, 1 of said ordinance of November 9, 1950, said political subdivision is authorized at its option to redeem the Series 1950 bonds maturing after the year 1957, and issued under said ordinance, in whole on December 1 in any year beginning with December 1, 1956 from any money which may be made available for such purpose and deposited with the paying agent on or before the date fixed for .redemption. (d) Out of said $52,000 of outstanding Series 1950 bonds, $7,000 mature on December 1, 1972, and $45,000, maturing serially thorugh 1980 are callable on December 1, 1972, at the call price of 102. 3. It has been determined that by the expenditure of $52,000, together with . certain other funds available to said political subdivision, it can call and acquire by redemption or otherwise, as provided in said ordinance of November 9, 1950, pursuant to which the issuance of said Series 1950 bonds was authorized, all of said outstanding and callable Series 1950 bonds and can pay at maturity all Series 1950 bonds maturing December 1, 1972, which action will result in the removal of the lien held by said Series 1950 bonds on the revenues of the water and sewer system of said political subdivision and it has 1 been determined that for the befit interests of said political subdivision all of said outstanding and callable Series 1950 bonds should be called and acquired by redemption or otherwise as provided in said ordinance. 4. It was provided in Article II, of said ordinance of November 9, 1950, that: "...At least thirty (30) days before any date upon which any such redemption is to be made, a notice of intention so to redeem, signed by the Mayor and attested by the Clerk of Council of the Municipality, designating the redemption date and the certificates to be redeemed, shall be published at least once in a newspaper of general circulation published in the City of Savannah, Georgia, and shall be filed at the place at which the principal and interest of the Certificates shall be payable and shall be mailed, postage prepaid to all registered owners of the certificates to be redeemed whose addresses shall appear upon the books of registration hereinabove provided for ;... "Notice having been given in the manner and under the conditions hereinabove provided, the certificates so designated for redemption shall, on the redemption date designated in such notice, become and be due and payable at the redemption price hereinabove specified, and from and after the date of redemption so designated, unless default shall be made in the payment of certificates so designated for redemption, interest on the certificates so designated for redemption shall cease to accrue and interest coupons maturing after the redemption shall become void. "Certificates which have been duly called for redemp- tion...shall be deemed paid and shall not be considered to be outstanding under the provisions of this ordinance." 5. It has been determined that such redemption and acquisition can best be financed and made by the issuance and sale of $52,000 in principal amount of City of Savannah Beach Water and Sewer Revenue Bonds, Series 1972. 6. There is now on deposit in the various funds and accounts securing the payment of said Series 1950 bonds and the interest thereon sufficient money attributable in the aggregate to said Series 1950 bonds to pay the amount of the call price of bonds to be called in excess of the principal amount maturing and callable on December 1, 1972, together with the fees of the paying agent, and the use of such funds for the above desig- nated purposes will beneficially affect the security of the owners of said Series 1950 bonds. 7. It appears that it is now desirable and said political subdivision has determined to exercise its option to call and redeem in whole all the outstanding and callable Series 1950 bonds on December 1, 1972, in accordance with the terms and conditions set forth in Article II, of said ordinance of November 9, 1950, and it is deemed advisable to make funds available for such purpose in an amount of not less than Fifty Two Thousand Dollars by the issuance of revenue refunding bonds. 8. It appears that it is now necessary and desirable to acquire, construct, and equip certain additions and improvements to and extensions of the existing sewer system of said political subdivision, which sewer system is, by the adoption of this resolution, combined with the existing water system of said poli- tical subdivision at a cost of approximately $2,100,000 all substantially in accordance with the engineering recommendations and plans which have been filed in the office of the clerk of said political subdivision, which describe and define the extensions, additions, and improvements to be made, which show the estimated cost thereof, and which plans, recommendations, and specifications were considered and approved by the governing body of said political subdivision both prior to and simultaneously with the adoption of this resolution and which are, by this reference, incorporated herein and made a part hereof as fully as if physically attached hereto. 9. It is deemed advisable to issue revenue refunding and improvement bonds in the amount of $1,455,000 in order to provide funds which, together with other funds available to said political subdivision for such purpose, shall be sufficient to finance the acquisition and construction of and equipment for such extensions, additions, and improvements and the call, payment, and redemption of all outstanding Series 1950 bonds. Said bonds shall be secured by a pledge of and charge or lien on the revenues to be derived from the operation of said water and sewer system superior to all other charges or liens thereon except the charge or lien thereon hereinafter created to pay the reasonable and necessary expenses of operating, maintaining, and repairing said system. NOW, THEREFORE., be it resolved by the City Council of the City of Savannah Beach, Tybee Island, in council assembled, and it is hereby resolved by authority thereof, as follows: ARTICLE I AUTHORIZATION, TERMS, AND FORM OF BONDS Section 101. The existing water system and the existing sewer system of said political subdivision are hereby combined into one consolidated water and sewer system, and there are hereby authorized to be issued, pursuant to the Revenue Bond Law of Georgia, condified in Ga. Code Ann., Ch. 87 -8, the Constitution of the State of Georgia, the general laws of the State of Georgia, the laws of the State of Georgia relating to the City of Savannah Beach, Tybee Island and this resolution, water and sewer revenue refunding and improvement bonds payable as herein provided in the aggregate principal amount of $1,455,000 to be designated 1 City of Savannah Beach Water andSewer Revenue Bonds, Series 1972, and all the covenants, agreements, and provisions of this reso- lution shall be for the equal and proportionate benefit and security of all owners of the bonds issued hereunder and the interest coupons thereto appertaining without preference, priority, or distinction as to the lien or otherwise of any one bond over any other bond. Section 102. The bonds authorized hereby shall be dated May 1, 1972, shall be issued in the denomination of $5,000, shall be numbered consecutively upward in order of maturity, and the principal of said bonds shall mature and be paid on June 1, in the years and amounts and shall bear interest at the rate or rates shown as follows: PRINCIPAL DUE IN RATE OF AMOUNT THE YEAR INTEREST $15,000 1974 6.25% 15,000 1975 6.25% 15,000 1976 6.25% 15,000 1977 6.25% 20,000 1978 6.25% 20,000 1979 6.25% 20,000 1980 6.25% 25,000 1981 6.25% 25,000 1982 6.25% 25,000 1983 6.25% 30,000 1984 6.25% 30,000 1985 6.50% 35,000 1986 6.50% 35,000 1987 6.50% 40,000 1988 6.50% PRINCIPAL DUE IN RATE OF AMOUNT THE YEAR INTEREST $ 40,000 1989 6.50% 45,000 1990 6.50% 50,000 1991 6.50% 50,000 1992 6.50% 55,000 1993 6.50% 60,000 1994 6.50% 65,000 1995 6.50% 70,000 1996 6.50% 75,000 1997 6.50% 80,000 1998 6. 85,000 1999 6.50% 90,000 2000 6.50% 100,000 2001 6.50% 105,000 2002 6.50% 120,000 2003 6.50% Section 103. Interest from May 1, 1972, shall be payable on each of said bonds on December 1, 1972, and semiannually thereafter on June 1 and December 1 in each year, in the manner stated in the bond form, until theobligation of said political subdivision with respect to the payment of the principal of such bonds shall be discharged. Section 104. (1) Pursuant to the provisions of Ga. Code Ann., §87 -119, the bonds shall be executed with the engraved, imprinted, stamped, or otherwise reproduced facsimile of the signa- ture of the Mayor of said political subdivision and the corporate seal shall be impressed or imprinted thereon and attested by the manually executed signature of the Clerk of said political subdivision. The bonds shall be issued in coupon form, and the coupons to be attached to the bonds shall be executed with the facsimile signature of such clerk, who, by the execution of each bond manually, shall adopt as his own the facsimile signature appearing on each coupon attached to such bond. (2) In case any officer whose signature shall appear on the bonds or coupons shall cease to be such officer before delivery of such,bonds,such signature shall, nevertheless, be valid and sufficient for all purposes the same as if he had remained in office until delivery, and such bonds may, nevertheless, be issued and delivered as though the person who signed or sealed such bonds had not ceased to be such officer, and any of such bonds may be executed and sealed on behalf of said political subdivision by such officers who may, at the time of the execution of such bonds, hold the proper offices of said political subdivision although on the date of such bonds or on the date of any lawful proceedings taken in connection therewith such persons may not have held such offices. Section 105. In the event any bond is mutilated, lost, stolen, or destroyed, said political subdivision shall execute and deliver a new bond of like tenor as that mutilated, lost, stolen, or destroyed, which new bond shall have attached thereto coupons corresponding in all respects to those, if any, on the bond mutilated, lost, stolen, or destroyed, provided that (a) in the case of any such mutilated bond, such bond together with all unmatured coupons appertaining thereto is first surrendered to said political subdivision, and (b) in the case of any such lost, stolen, or destroyed bond, there is first furnished evi- dence of such loss, theft, or destruction satisfactory to said political subdivision together with indemnity satisfactory to said political subdivision. In the event any coupon is mutilated, lost, stolen, or destroyed, said political subdivision may issue a duplicate coupon upon the same terms and conditions as those provided for the replacement of mutilated, lost, stolen, or destroyed bonds. No service charge shall be made for any such transaction, but a charge may be made to cover any actual expense involved. Section 106. Said political subdivision and its agents, including the paying agent and registrar, may deem and treat the registered owner of any bond registered as to principal as the absolute owner of such -bond for the purpose of receiving payment of the principal thereof and for all other purposes whatever. Said political subdivision and its agents, including the paying agent and registrar, may deem and treat the bearer of any bond which shall not at the time be registered as to principal as the absolute owner of such bond, whether or not the same shall be overdue, for the purpose of receiving payment thereof or of registering the same and for all other purposes, and said political subdivision and its agents, including the paying agent and registrar, shall not be affected by any notice to the contrary. Every taker and owner of any coupon for interest on any bond whether or not such bond shall be registered as to principal, by the acceptance thereof, agrees with said political subdivision and its agents, including the paying agent and the registrar, and with every subsequent taker and owner thereof that such coupons shall pass in the manner and with the effect of delivery under like circumstances of a negotiable instrument payable to bearer, and said political 1 subdivision and its agents maydeem and treat the bearer thereof as the absolute owner of such coupon, whether or not the same shall be overdue, for the purpose of receiving payment thereof, and for all other purposes whatever, and neither said political subdivision or any such agent shall be affected by any notice to the contrary. Section 107. A duly executed validation certificate of the Clerk of the Superior Court of Chatham County, State of Georgia, shall be endorsed on the back of each bond and shall be essential to its validity. Section 108. The principal paying agent will be the registrar for the bonds and will keep, at its principal office, proper registry and transfer records in which it shall register the name of the owner of said bonds as the same are presented for registration. Upon presentation of any bond for registration or transfer, the fact of such registration or transfer shall be noted on the bond. No transfer of any registered bond shall be valid unless made at such office of the registrar and noted on the bond. Section 109. The principal of and the interest on all the bonds of this issue, except those registered in accordance with the provisions for resistration set forth on the back of the bonds and payable in accordance with such provisions, shall be payable at the principal office of one or more paying agents as the same shall be designated in the executed bonds, in lawful money of the United States of America, and the said bonds and the interest coupons to be attached thereto and the certificate of validation and certificate of registration shall be in sub- stantially the following terms and form, with such variations, omissions, and insertions, including the designation of the registrar and pyaing agent as may be required to complete properly each respective bond and as may be approved by the officer of officers executing each bond manually, which approval shall be conclusively evidenced by such execution: UNITED STATES OF AMERICA STATE OF GEORGIA CITY OF SAVANNAH BEACH, TYBEE ISLAND WATER AND SEWER REVENUE BOND SERIES 1972 No. * $5,000 The City of Savannah Beach, Tybee Island, a municipal corporation and a political subdivision of the State of Georgia, in Chatham County, for value received hereby promises to pay, solely from the funds provided therefor as hereinafter set forth, to bearer upon surrender of this bond for cancellation at the principal office of Savannah Bank & Trust Company of Savannah, as paying agent, in the City of Savannah, Georgia, or, if this bond is registered as herein provided, to the registered owner hereof in the manner provided in the provisions for registration set forth on the back hereof, the principal sum of FIVE THOUSAND DOLLARS On June 1, 1974.,* and to pay, solely from said funds, interest hereon from the date hereof at the rate of six and twenty five hundredths per cent* per annum payable December 1, 1972, and semiannually thereafter on June 1 and December 1, in each year until the obligation of said political subdivision with respect to the payment of such principal sum shall be discharged but only, in the case of interest payable on or before the stated maturity of this bond, upon presentation and surrender of the annexed interest coupons, as they severally become due, at the principal office of said paying agent or, if this bond is registered as to interest as herein provided, to the registered owner in the manner provided in said provisions for registration. Both the principal hereof and the interest hereon shall be payable in lawful money of the United States of America in the manner herein provided. This bond is one of a duly authorized series of bonds designated City of Savannah Beach Water and Sewer Revenue Bonds, Series 1972, of like tenor, except as to numbers, interest rates, redemption provisions, and dates of maturity, issued in the aggregate principal amount of $1,455,000 to provide funds needed to pay the cost, in whole or in part, of calling, paying, and redeeming all outstanding Savannah Beach, Tybee Island, Water Revenue Certificates, dated December 1, 1950, and of acquiring constructing, and equipping improvements and additions to and extensions of the existing water and sewer system of said political subdivision and is issued pursuant to authority of and in accordance with the provisions of the Constitution of the State of Georgia, the Revenue Bond Law of Georgia, codified in Ga. Code Ann., Ch. 87 -8, the general laws of the State of Georgia, and the laws of the State of Georgia relating to theCity of Savannah Beach, Tybee Island, and was duly authorized by a resolution, sometimes hereinafter de- signated as the Bond Resolution, adopted by the governing body of said political subdivision on July 19, 1972. In addition to the aggregate principal amount of said bonds, said political subdivision may, under certain conditions as provided in said Bond Resolution, issue additional water and sewer revenue bonds which, if issued in accordance with such provisions, will rank on a parity with the bonds of this series with respect to the pledge of and the charge or lien on the revenues of said system. Reference to said Bond Resolution is hereby made for a complete description of the funds charged with and pledged to the payment of the principal of and the interest on the bonds of this series, a complete description of the nature and extent of the security provided for the payment of said bonds, a state- ment of the rights, duties, and obligations of said political subdivision, the rights of the owners of the bonds, and the terms and conditions under which additional bonds may be issued, to all the provisions of which the owner hereof, by the acceptance of this bond, assents. Said Bond Resolution provides among other provisions for prescribing and revising rates and collecting fees, tolls, and charges for the services, facilities, and commodities furnished by said water and sewer system as the same now exists and as it may be hereafter added to, extended, and improved sufficient in amount to provide funds to pay the costs of maintaining, repairing, and operating said system and to pay into a special fund, designated Savannah Beach Water and Sewer Revenue Bond Sinking Fund, an amount sufficient to pay the principal of and the interest on all bonds issued pursuant to the provisions of said Bond Resolution which are now or which may be hereafter outstanding and any additional pari passu bonds hereafter issued pursuant to the provisions of said Bond Resolution as such principal and interest shall become due and be payable and to create and maintain a reserve for such purpose, and said Sinking Fund, by the provisions of said Bond Resolution, is pledged to and charged with the payment of the principal amount of said bonds and the interest thereon. The pledge of and the charge or lien on the revenues of said political subdivision to be derived from the operation of said water and sewer system to secure the payment of the bonds of this series and the interest thereon is a first and prior charge or lien on such revenues subject only to the charge or lien thereon for the payment of the reasonable and necessary expenses of operating, maintaining, and repairing said system. Said political subdivision and Chatham County have entered into a contract dated as of January 1, 1972, providing for the payment by said County to said political subdivision of the amounts agreed to be paid in said contract in consideration of the use by said County and the residents thereof of the services and facilities of said water and sewer system which contract has been validated by the Superior Court of Chatham County, Georgia, as additional security for the payment of the principal of and interest on said bonds. In accordance with the provisions of said contract such payments shall be made by said County out of the general funds of said County or out of revenues realized for such purposes from ad valorem taxes to be levied without limita- tion as to rate or amount. This bond does not constitute a debt of said political subdivision or of Chatham County within the meaning of any consti- tutional or statutory limitation or provision nor a pledge of the faith and credit of said political subdivision or said County nor shall said political subdivision or said County be subject to any pecuniary liability hereon, and the taxing power of said political subdivision or said County is not pledged to the payment hereof, either as to principal or interest. This bond shall not be payable from nor a charge upon any funds other than the funds pledged to the payment hereof and is payable primarily from the funds provided therefor from the earnings of the said system including all future additions thereto and including the earnings for the services and facilities supplied to said County and the residents thereof. No owner of this bond shall ever have the right to compel the exercise of the taxing power of said political subdivision or said County to pay the same or the interest hereon or to enforce payment hereof against any property of said political subdivision or said County nor shall this bond or any interest coupon constitute a charge, lien, or encumbrance, legal or equitable, upon any property of said political subdivision or said County other than said revenues, including revenue to be received from said County. On any interest payment date beginning with June 1, 1982, bonds of this series may be called and redeemed prior to their respective maturities at the option of said political subdivision either in whole or in part from money in the said Sinking Fund available for such purpose or from any money which may be made available for such purpose, and deposited with the paying agent on or before the date fixed for redemption. Such redemption shall be upon at least thirty days prior notice by publication and otherwise as provided in said Bond Resolution as follows: Bonds maturing up to and including June 1, 1982, are non - callable. Bonds maturing June 1, 1983, and thereafter are callable in inverse numerical and maturity order on June 1, 1982, and on any interest payment date thereafter up to and including June 1, 1986, at 106, therafter on any interest payment date up to and including June 1, 1991, at 104 1/2, thereafter on any interest payment date up to and including June 1, 1996, at 103, and thereafter on any interest payment. date at 101 1/2. If this bond shall be called for redemption, interest hereon shall cease to accrue from and after the date fixed for redemption, and interest which, otherwise, would accrue after the redemption date shall be void unless default shall be made in payment of the redemption price upon presentation of the bond for redemption. This bond shall be negotiable for all purposes and shall be payable to bearer and title hereto and to the interest coupons hereto appertaining shall pass by delivery as in the case of negotiableknstruments payable to bearer unless this bond is registered and made payable in the manner provided in the provisions for registration set forth on the back hereof. In certain events, on the conditions, in the manner, and with the effect set forth in said Bond Resolution, the principal of all the bonds of this series then outstanding, together with the interest thereon, may become or may be declared to be due and payable before the stated maturities thereof. 1 To the extent permitted by said Bond Resolution, modifications or alterations of the provisions thereof or of any supplement thereto or of the bonds may be made by said political subdivision with the consent of the owners of at least seventy -five percent in principal amount of the bonds then outstanding without necessity for notation hereon or reference thereto. This bond is issued with the intent that the laws of the State of Georgia shall govern its construction, and, in case of default, the owner hereof shall be entitled to the remedies provided by the said Bond Resolution and by all applicable laws. It is hereby recited and certified that all acts, conditions, and things required by exist, happen, or be performed precedent to and in the issuance of this bond do exist, have happened, and have been performed in due and legal time, form, and manner as required by law and that provision has been made for the allocation of the anticipated revenues and receipts to be derived from the operation of said system in amount sufficient to pay the principal of and the interest on all of said bonds as the same shall mature and become due and to create and maintain a reserve for that purpose and that said funds are irrevocably allocated and pledged to the payment of all of said bonds and the interest thereon. IN WITNESS WHEREOF, the City of Savannah Beach, Tybee Island, in Chatham County, Georgia, acting by and through its governing body, has caused this bond to be executed with the engraved, imprinted, stamped, or otherwise reproduced facsimile of the signature of its Mayor has caused its corporate seal to be hereunto impressed or imprinted and attested with the manually executed signature of its City Clerk, has caused the interest coupons attached hereto to be executed with the facsimile signature of said City Clerk, who, by the execution hereof, adopts as his own the facsimile signature appearing upon each of said coupons, and has caused this bond to be dated as of May 1, 1972. ATTEST: /s/ E. M. Patterson CITY CLERK 1 CITY OF SAVANNAH BEACH TYBE BY /s %.i COUPON NO. * On the 1st day of December *, 1972 *, unless the hereinafter designated bond is registered as to interest, in which event interest shall be payable in accordance with the provisions for registration, or is subject to previous redemption and shall have been duly called for previous redemption and payment or provision for payment of the redemption price shall have been made, the City of Savannah Beach, Tybee Island, in Chatham County, Georgia, promises to pay to bearer, upon surrender of this coupon at the principal office of Savannah Bank & Trust Company of Savannah, in the City of Savannah, Georgia, the sum of DOLLARS in lawful money of the United States the funds referred to in and for the its City of Savannah Beach Water and Series 1972, dated as of May 1, 1972 of America, solely from interest then due upon Sewer Revenue Bond, , Bond No.. *. CITY OF SAVANNAH BEACH, BY: /s/ E. M. PattersonL� CITY CLERK STATE OF GEORGIA ) COUNTY OF CHATHAly1) VALIDATION CERTIFICATE I, the undersigned Clerk of the Superior Court of Chatham County, Georgia, keeper of the records and seal thereof, hereby certify that this bond was validated and confirmed by judgment of the Superior Court of Chatham County, Georgia on , 1972. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the Superior Court of Chatham County, Georgia. 1 Clerk, Superior Court, Chatham County, Georgia CERTIFICATE OF REGISTRATION This bond may be registered in the name of the owner as to principal only on books to be kept for that purpose by Savannah Bank & Trust Company of Savannah, in the City of Savannah, Georgia, as registrar, in which event, the registrar shall make proper notation in the registration blank below that the bond is registered as to principal only, after which the registrar shall pay all principal as the same shall mature hereon only to the registered owner hereof upon surrender of this bond for cancellation-, and no transfer hereof shall then be valid unless made on the registrar's books by authority of the registered owner or his attorney duly authorized in writing and similarly noted in the registration blank below, but it may be discharged from registration by being transferred to bearer, after which it shall be payable to bearer and transferable by delivery. It shall continue subject to successive registration and transfer to bearer at the option of the owner. The registration of this bond as to principal shall not affect the negotiability of the coupons hereto attached which shall continue to be transferable by delivery. At the request of the owner, this bond may be registered as to both principal and interest in which event the registrar shall detach all coupons attached hereto and shall make proper notation in the registration blank below that the bond is registered as to interest as well as to principal and shall pay all interest and principal as the same shall mature hereon only to the registered owner hereof and only at the principal office of the registrar. This bond, when registered as to both principal and interest, may be discharged from registration and reconverted to a coupon bond at the option of the owner in which event the registrar will reattach hereto all coupons then unmatured and previously detached herefrom and shall note in the registration blank below whether the bond is registered as to principal only or payable to bearer, and it shall continue subject to successive registration and transfer to bearer at the option of the owner. The registrar shall not be required to register this bond during the period of ten days next preceding any interest payment date or the stated maturity date hereof. (No writing shall be entered on this bond except by the duly authorized officer of the above designated registrar, the Savannah Bank & Trust Company of Savannah, in the City of Savannah, Georgia.) Date of In Whose Name Manner of Registration Registered Registration Bond Registrar *(In all places where asterisks appear in the foregoing bond form, the working shall be changed or supplied as may be proper to show maturity date, bond number, etc.) ARTICLE II REDEMPTION OF BONDS BEFORE MATURITY Section 201.- (1) On any interest payment date beginning with June 1, 1982, the bonds of this series may li - Balled and redeemed prior to their respective maturities at the option of said political subdivision, either in whole or in part, from money in the Sinking Fund not required for paying the principal of and the interest on the bonds coming due in the then current sinking fund year and for creating and maintaining a reserve in said fund in the amount hereinafter provided or in such larger amount as may be required in any future resolution authorizing the issuance of parity bonds, or from any money which may be made available for such purpose and deposited with the paying agent on or before the date fixed for redemption. If the bonds are called in part, such call shall be in the inverse order of their maturities, and, if less than all the bonds of any maturity are ,called, the bonds of such maturity shall be called in the inverse order of their numbering. (2). In the event parity bonds are hereafter issued, neither the bonds of this series nor of any such future series of parity bonds may be redeemed in part unless and until there are on hand in said Sinking Fund sufficient funds to pay the principal of and the interest on all bonds of this series and of all issues of parity bonds coming due in the then current sinking fund year and to maintain a reserve in the Sinking Fund in the amount required to pay the highest combined principal and interest requirements on all outstanding parity bonds in any succeeding sinking fund year, provided, however, that said political subdivision shall have the right to acquire as a whole, by redemption or otherwise, all outstanding bonds of all parity issues from any funds which may be available for that purpose. (3) At least thirty days before any date upon which any such redemption is to be made, a notice of intention so to redeem, designating the redemption date and the bonds to be redeemed, signed by the Mayor, with the seal of said political subdivision impressed thereon and attested by the signature of the City Clerk, shall be published in a financial journal of general circulation published in the English language in the Borough of Manhattan, City and State of New York, and an executed counterpart of such notice shall be filed at the places at which the principal of and interest on the bonds shall be payable and shall be mailed, postage prepaid, to all registered owners of bonds to be redeemed whose addresses shall appear upon the books of registration hereinabove provided for, but failure so to mail any such notice shall not affect the validity of the proceedings for such redemption or cause any interest to continue to accrue on any bond. (4) ,Redemption of bonds under this Article shall bemade by the payment of the principal amount of the bonds to be redeemed and accrued interest thereon to the date fixed for redemption together with a premium included in the call price expressed in percentages of the principal amount of the bonds to be called as follows: Bonds maturing up to and including June 1, 1982, are non - callable. Bonds maturing June 1, 1983, and thereafter are callable in inverse numerical and maturity order on June 1, 1982, and on any interest payment date thereafter up to and including June-1, 1986, at 106, thereafter on any interest payment date up to and including June 1, 1991,. at 104 1/2, thereafter on any interest payment date up to and including June 1, 1996, at 103, and thereafter on any interest payment date at 101 1/2. (5) Should additional parity bonds hereafter be issued pursuant to and in accordance with authority therefore 1 1 1 herein contained, the bonds of any such future issue or issues may be redeemed in whole before the bonds, of this series or the bonds of this series may be redeemed in whole before the bonds of any such future series or some of the bonds from this series and some of the bonds from any such future series may be redeemed at the same time, subject to the Sinking Fund requirements pre- scribed by the provisions of Section 201(2), hereof. Section 202. Nothing herein contained shall be construed to limit the right of said political subdivision to purchase bonds of this series in the open market at a price not exceeding the redemption price of the bonds to be acquired from funds in the Sinking Fund, subject to the Sinking Fund requirements prescribed by the provision4/of Section 201(1), hereof. Any such bonds so purchased shall not be reissued and shall be disposed of as hereinafter provided in Art. IV. Section 203. Notice having been given in the manner and under the terms and conditions hereinabove provided, the bonds so designated for redemption shall, on the redemption date designated in such notice, become and be due and payable at the redemption price of the bonds to be acquired. Interest on the bonds so designated for redemption shall, after the giving of such notice, cease to accrue from and after the date fixed for redemption, and interest which otherwise would accrue on such bonds after the redemption date shall be void unless default shall be made in the payment of the redemption price upon presentation of a bond for redemption. ARTICLE III CUSTODY AND APPLICATION OF PROCEEDS OF BONDS CONSTRUCTION FUND Section 301. Said political subdivision will proceed with the construction of the improvements to its water and sewer system and related facilities substantially in accordance with plans, specifications, and recommendations prepared for said political subdivision, and with the acquisition and installation of such items of machinery and equipment as are specified in such plans, specifications, and recommendations. Section 302. The amount of $52,000, or such lesser amount as may be required, from the proceeds of the sale of the bonds hreby authorized, together with such other funds, if any, as may be necessary for such purposes, shall be placed in the Water System Sinking Fund,' heretofore created by the provisions of Art. IV, of the aforesaid ordinance of November 9, 1950, and the assets of said Water System Sinking Fund shall be used for paying the interest on said Series 1950 bonds as the same shall become due on December 1, 1972, for paying at maturity the principal of such Series 1950 bonds maturing on December 1, 1972, for acquiring by call and redemption or otherwise at a cost not in excess of the redemption price all of said Series 1950 bonds which are now outstanding and callable and for paying the charges of the paying agent- Section 303. Immediately upon the issuance of thebonds hereby authorized, there shall be placed in said Sinking Fund an amount which shall be sufficient to pay all outstanding Series 1950 bonds, the interest to become due thereon on December 1, 1972, any premium required to be paid for the redemption of the callable bonds of said issue, and all expenses and charges required to be paid, and, upon the taking of appropriate action by said political subdivision to call all the outstanding Series 1950 bonds which are subject to redemption which action is herein taken by the terms and provisions of this resolution, then, the placing of all said money into said Sinking Fund shall and the same is hereby declared to constitute payment in full of al],6f said Series 1950 bonds. Section 304. The assets of the aforesaid Sinking Fund are hereby irrevocably pledged by said political subdivision for the purpose of making the payments as provided in Sections 302 and 303 of this Article, and all money and assets of said fund shall be in trust by said political subdivision for the benefit and shall be subject to a lien and charge in favor of the owners of said Series 1950 bonds until the same are retired, and said fund shall be invested by the depository in direct, general obligations of the United States of America or obligations secured by the unconditional guarantee of the United States of America, and such deposits shall be made to mature as may be needed to provide such funds as will be required to make the payments required by the provisions of Sections 302 and 303, hereof. Section 305. At or prior to delivery to the purchaser of the bonds herein authorized, there will be created by said political subdivision ina depository bank or banks a separate account or accounts to be collectively designated as the City of Savannah Beach Water and Sewer Construction Fund, herein sometimes designated as the Construction Fund, into which shall be deposited any temporary loans or advances from the United States of America or other source, all remaining proceeds, including any premium received, from the sale of the bonds, except accrued interest which shall be deposited in the Water and Sewer Revenue Bonds Sinking Fund, hereinafter created in Article IV, and any other funds acquired by gift, donation, grant, or otherwise for the construction of the undertaking and any additional funds which may be required to be furnished by said political subdivision in order to assure the payment of all costs of the undertaking. Money in the construction Fund shall be expended only for the payment of the costs of acquiring, constructing, and equipping extensions of and additions and improvements to the existing water and sewer system of said political subdivision and for acquiring property both real and personal necessary therefor and paying expenses incident thereto in accordance with this resolution, and there shall not be paid out of the Construction Fund any sums except in accordance with this resolution. Section 306. Said political subdivision will cause the Construction Fund depository, at all times, to keep the funds on deposit in the Construction Fund continuously secured for the benefit of said political subdivision and the bond owners in the manner provided in Section 502, hereof, provided however that it shall not be necessary for the depository so to secure any portion of the funds on deposit in the Construction Fund that is insured by the Federal Deposit Insurance Corporation or other agency of the United States of America that may succeed to its functions, and provided further that it shall not be necessary for the depository so to secure any portion of the funds on deposit in the Construction Fund that is, at the time, invested pursuant to the provisions of the next succeeding Section hereof. Section 307. When the money on deposit in the Construction Fund exceeds the requirements for obligations to be incurred in the oonstruction of the project for the next thirty days as such requirements may be estimated by the project engineer, the Construction Fund depository is hereby authorized and directed to invest such excess funds in the manner authorized by law. The securities in which such funds are so invested shall become a part of the Construction Fund, and al]4ncome derived therefrom - shall be deposited in the Construction Fund. The Construction Fund depository shall, from time to time, sell or otherwise convert into cash, any such securities if such sale or conversion is necessary to provide for payment of a requisition or payment request presented pursuant to the provisions of this Article, whereupon the net proceeds from such sale or conversion shall be deposited in the Construction Fund. Section 308. All money in the Construction Fund or obli- gations held for such fund shall be subject to a lien or charge in favor cf the owners of the bonds issued under the provisions of this resolution and outstanding at any time and shall be held for the future security of such owners until paid out as herein provided. Section 309. For the purposes of this Article, the cost of acquiring, constructing, and equipping the contemplated ex- tensions of and additions and improvements to the municipality's existing water and sewer system to be paid from the Construction Fund shall include the costs shown in the engineering recommenda- tions, plans and specifications which have been filed in the office of said City Clerk, which describe and define the system to be constructed and the equipment to be acquired, and which may but shall not necessarily include the purchase and condemnation of land, easements, and rights of way, construction of access roads, drilling of wells, laying of water distribution mains and lines and water supply mains to sources of water supply, laying of sewage collection and outfall lines, acquisition and construction of filtration and purification plants, stabilization ponds, storage tanks, and reservoirs, installation of fire hydrants, installation of drainage facilities, grading, filling, paving, turfing, the acquisition of operating tools, trucks and supplies, and any and all appurtenant facilities and necessary materials for the acquisition, construction, and equipment of a modern and efficient water and sewer system without intending hereby to limit, restrict, or extend any proper definition of such cost as contained in the Revenue Bond Law or as usual and incident to the acquisition, construction, and equipment of an efficient water and sewer system which, in addition, shall include the cost of the construction work for the project being undertaken, costs of indemnity and fidelity bonds, cost of land acquisition, necessary travel expenses, taxes or other governmental charge, if any, lawfully levied or assessed upon the project or upon any property acquired therefor during construction, interest on the bonds issued hereunder during the period of construction and for six months thereafter, premiums on insurance, if any, in connection with the said project during construction, fees and expenses of engineers and architects for surveys, estimates, preparation of plans, specifications, and drawings and supervising of construction, as well as for the performance of all other duties of such engineers and architects in relation to the project, actual expenses of administration °of construction, telephone, telegraph, office, and legal expenses, audits, and all other costs or expenditures not herein specified incident to the acquisi- tion and construction of and equipment for the project, including abstracts of title and title insurance, the preparation, issuance, marketing, printing and engraving of bonds, financing charges and all expenses incident to the financing of the project, all other expenses preliminary to construction of such project, and preliminary to authorization, validation, and issuance of the bonds, including investigation and expenses incident therto, obligations incurred for labor and to contractors, builders, suppliers, and materialmen in connection with the construction of the project and for machinery and equipment needed foysuch construction and for the placing of such project into operation, and obligations incurred for the restoration of property damaged or destroyed in connection with the construction. Section 310. Said construction, acquisition, and equip- ment will be completed as soon as may be practicable, delays incident to strikes, riots, acts of God and the public enemy, and similar acts beyond the reasonable control of the munici- pality only, excepted. Said political subdivision will promptly pay or cause to be paid, as and when duek all expenses incurred in and about the project and will not suffer or permit any mechanic's or materialmen's liens that might be filed or otherwise claimed or established upon or against the project or any part thereof, to remain unsatisfied and undischarged for a period exceeding thirty days after the filing of establishing thereof, provided however, that said political subdivision may in good faith, contest any such mechanics' or materialmen's liens claims so filed or established, and, in the event that such lien claims are so contested, may permit the mechanics' or materialmen's liens so contested to remain unsatisfied and undischarged during the period of such contest and any appeal therefrom, irrespectiv of whether such period extends beyond the thirty day period after the filing or establishment of such liens, unless by such action, the lien or charge hereof on any part o &he project 1 shall be materially endangered or the project or any part thereof shall be subject to loss or forfeiture, in which event, such mechanics' or materialmen's liens shall be promptly satisfied. Section 311. (1) All payments from the Construction Fund shall be made upon checks signed by the officers of said political subdivision properly authorized to sign in its behalf and when any such check shall be for payment of labor, contractors, builders, materialmen, machinery or equipment, it shall be accompanied by a certificate of such officers certifying that (a) an obligation in the stated amount, has been incurred by said political subdivision and that the same is a proper charge against the Construction Fund and has not been paid and specifying the purpose and circumstances of such obligation in reasonable detail and to whom such obligation is owed, and shall be `accompanied by the bill or statement of account for such . obligation or a copy thereof, (b),.uch officers have no notice of any vendor's mechanic's or other liens or rights to liens, chattel mortgages, or conditional sales contracts which should be satisfied or discharged before such payment is made, and (c) such bill or statement of account containes no item representing payment on account of any retained percentages which the municipality is, at the date of such certificate, entitled to retain, and, whenever such obligation shall be incurred for work, material, supplies, or equipment in connection with the undertaking, which work was actually performed on, or which material, supplies or equipment was actually installed in or about the construction or delivered at the site of the work for that purpose, such check shall also be accompanied by a certificate of the consulting engineer which shall state that such obligation was incurred for work, material, supplies, or equipment in connection with the undertaking and that such work was actually performed on, or that such material, supplies, or equipment was actually installed in or about the construction or was delivered at the site of the work for that purpose and shall state further that the aforesaid certificate of the officers of said political subdivision is correct and is approved by such engineer and that such obligation has been properly incurred and is due and unpaid. (2) A check substantially in the following form accompanied by certificates substantially in the following form shall be sufficient for the purposes of this Section: NAME OF BANK 1972 No. Pay to $ Dollars from th - -Ciof Savannah Beach Wa (I t,.er nd ewer Con truction Fund. .e t '� /s/ E. M. Patterson /s/ M. J. Counihan CITY CLERK' MAYOR WE HEREBY CERTIFY THAT: 1. Check in amount of $ is for furnishing , payable to 2. An obligation in the amount shown above has been incurred by by said political subdivision, and the same is a proper charge against the Construction. Fund and has not been paid. 3. We have no notice of any vendor's, mechanic's or other liens, chattel mortgages, or conditional sales contracts which should be satisfied or discharged before payment is made. 4. This check does not represent a payment on account of any retained percentages which said political subdivision asgof this date is entitled to retain /s/ E. M. Patterson /s/ M. 4. Counihan CITY CLERK MAYOR (The above designated officers, together with the Chairman of the Finance Committee, or any two of said three officers, unless it is otherwise provided, shall be the officers authorized to sign checks on behalf of said political subdivision) ENGINEERS CERTIFICATE. WE HEREBY CERTIFY that to the best of our knowledge and belief: 1. The certificate shown above is correct and is approved; 2. The obligation shown has been properly incurred and is due and unpaid; 1 1 3. The check is for work, material, supplies, or equipment used or furnished in connection with the construction of the project, and such work was actually performed on or such materials, supplies, or equipment were installed or delivered fopthat purpose at the site of the work. THIS , 1972. CONSULTING ENGINEER By Section 312. Before making any payments for the purchase price of any lands, easements, or rights or interest in or re- ]ating to lands, said political subdivision shall receive a written opininn of its attorney That said political subdivision is authorized to acquire such lands or rights or interest relating thereto and that, upon the payment of such purchase price, said political subdivision will acquire merchantable fee simple title to such lands or rights or interest therein free from all liens or encumbrances except such lien, encumbrance, or other defects of title which will not have a material adverse effect upon t1ieright,of said political subdivision.to use such lands or rights or interest therein for the-pdtpose intended or which have been guarded against by adequate bond or other form of indemnity. In lieu of this requirement, said political sub- division shall have the right to acquire a policy of title insurance issued to said political subdivision insuring the title to the land to be acquired in an amount equal to the contemplated improved value of the land which policy shall be issued by a responsible title insurance company authorized to do business in the State of Georgia. Section 313. Any contract relating to construction of the project shall provide that: (a) The contractor shall procure and shall maintain during the life of his contract Workmen's Compensation Insurance as required by applicable state law for all of his employees to be engaged in work at the site of the project under his contract and, in case of any such work sublet, the contractor shall require the subcontractor similarly to provide Workmen's Compensation Insurance for all of the latter's employees to be engaged in such work unless such employees are covered by the protection afforded by the contractor's Workmen's Compensation Insurance. In case any class of employees engaged in hazardous work on the project under such contract _is not protected under the Workmen's Compensation Statute, the contractor shall provide and shall cause each subcontractor to provide adequate employer's liability insurance for the protection of such of his employees as are not otherwise protected. (b) The contractor shall procure and shall maintain during the life of his contract adequate Contractor's Public Liability Insurance, adequate Vehicle Liability INsurance, and adequate Contractor's Property Damage Insurance. (c) The contractor shall either (i) require each of his subcontractors to procure _ and to maintain during the life of his subcontract, Subcontractor's Public Liability and Property Damage of the type and in the same amounts as specified in the preceding paragraph, or (ii) insure the activities of his subcontractors in his own policy. (d) The insurance required under subparagraph (b) and (c) hereof shall provide adequate protection for the contractor and his subcontractors, respectively, against damage claims which may arise from operations under the contract, whether such operations be by the insured or by any one directly or indirectly employed by him. (e) The maintain during the life of his (Fire and Extended Coverage) on on the insurable portion of the contractor, and subcontractors, shall be named as the insured. contractor shall procure and shall contract Builder's Risk Insurance a 100% completed value basis project. The municipality, the as their interests may appear, (f) The contractor shall furnish the munici- pality with_cettificates showing the type, amount,c ass of operations covered, effective dates and dates of expiration of policies. Such certificates shall also provide that the insurance covered by the certificate will not be cancelled or materially altered, except after ten days written notice has been received by the municipality. Section 314. Such contractor shall be required to furnish a performance bond in an amount at least equal to one hundred percent of the contract price as security for the faithful per- formance of his contract and also a payment bond in an amount not less than one hundred percent of the contract price as security for the payment of all persons performing labor on the project under his contract and furnishing materials in connection with his contract. The performance bond and the payment bond may be in one or in separate instruments in accordance with law. Section 315. (1) When the project shall have been com- pleted, the project engineer shall deliver to said political subdivision a certificate stating the date of completion, the total cost of labor, material, and equipment, the total cost of the construction thereof, a list of items which have not been paid and the amount due or, in case of controversy, claimed to be due on account of such items, and the amount remaining in the construction fund and shall also deliver with said certificate a sworn statement of each general contractor engaged in the construction that the agreed price of all work done and material furnished for each facility of the project has been paid. (2) Said political subdivision shall deliver a copy of such certificate of completion to the depository of the Construction Fund and to the representative of the original purchasers of the bonds. Section 316. All requisitions and certificates required by this Article shall be retained by said political subdivision, subject at all times to inspection by the duly authorized agent or representative of the original purchasers' of the bonds. 1 Section 317. When-the project shall have been completed, should there then be any balance in the Construction Fund, such balance shall be promptly used to the extent possible for the redemption or the retirement of bonds, as the case may be, and any residue shall be deposited in the account established for the payment of the principal of and interest on the bonds. ARTICLE IV REVENUE AND FUNDS ADDITIONAL PARITY BONDS Section 401. Said political subdivision will operate its water and sewer system on a fiscal year basis beginning May 1 and ending April 30 of each succeeding year, but should it desire to change its fiscal year at some future date it may do so by proper resolution of its governing body, and said political sub- division will continue to maintain the Water System Revenue Fund in the manner provided in and heretofore created by said ordinance of November 9, 1950, which fund shall hereafter be designated as the Savannah Beach Water and Sewer Revenue Fund, into which fund it will deposit all revenues arising from the operation of its water and sewer system as it now exists and as it may here- after be added to, extended, improved, and equipped and said revenues shal], be disposed of in the manner and order set out in the following sections hereof. Section 402. (1) Said political subdivision. and Chatham County have entered into a contract which, by this reference, is incorporated herein and made a part hereof, dated as of January 1, 1972, providing for the payment by said County to said political subdivision of the amount of $60,000 on November 1, in each of the years 1972 through 2003, in consideration of the use by said County and the residents thereof of the facilities and services of the water and sewer system of said political subdivision, and said contract provides that said political subdivision may pledge the amount to be paid by the County under said contract to pay principal and interest of any issue of water and sewer revenue bonds issued by said political subdivision to pay for the con- struction of such facilities. In accordance with the provisions of said contract, said payments shall be made by said County out of revenues realized for such purposes from ad valorem taxes to be levied in accordance with the constitution and laws of the State of Georgia. (2) In accorance with the provisions of said contract, said political subdivision does hereby pledge the amount to be paid by the County under said contract to the payment of the principal of and interest on the bonds issued hereunder and any other bonds hereafter issued on a parity therewith, and, by adoption of this resolution, said political subdivision hereby directs said County to deposit such payments directly to the Sinking Fund hereinafter created. Section 403. (1) There shall first be paid from said Revenue Fund the reasonable and necessary cost of operating, main- taining, and repairing the water and sewer system including sala- ries, wages, cost of materials and supplies, rentals of leased property, insurance, and ,such other charges as may properly be made for the purpose of operating, maintaining, and repairing said system in accordance with sound business practice, without making allowance for depreciation. (2) At or prior to the delivery of any of the bonds authorized hereby, said political subdivision will establish and will maintain, for so long as any of said bonds, or any future bonds issued on a parity therewith are outstanding, a special fund to be designated Savannah Beach Water and Sewer Revenue Bond Sinking Fund, herein called the Sinking Fund, to be used exclusively_ for the purpose of paying the principal of and interest on said Series 1972 . bonds and on any bonds that may be issued hereafter on a parity therewith. Into said Sink- ing Fund there shall be deposited, in addition to the funds to be paid by said County directly into said Sinking Fund in accordance with the provisions of Section 402 hereof, all accrued interest received from the sale of the bonds, and, there shall be paid from the Revenue Fund into said Sinking, Fund beginning with the month of June, 1972, and from month to month thereafter on or before the last day of each month through the month of May, 1979, the sum of $5,413, beginning with the month of June, 1979, and from month to month thereafter on or before the last day of each month through the month of May, 1993., the sum of $4,29.5, beginning with the month of June, 1993, and from month to month .thereafter on or before the last day of each month through the month of May, 2000, the sum of $4,740, and beginning with the month of June, 2000, and from month to month thereafter on or before the last day of each month the sum of $5,025, and all of said payments shall be made for the purpose of paying the principal of and the interest on the bonds of this series as the same shall mature and become payable in the then current sinking fund year and to create within a period of not more than seven years from the month of delivery of said bonds and thereafter maintain in said Sinking Fund a debt service reserve for the purpose of paying such principal and interest on any payment date on which there would otherwise be a default in an amount approximately equal to the highest combined principal and interest requirements in any succeeding sinking fund year for all bonds of this series, and it will continue to make said monthly payments until sufficient funds are on hand to pay all outstanding bonds of this series and the interest thereon. Section 404. If, in any month, for any reason, said political subdivision shall fail to pay all or any part of the money it has herein agreed to pay into said Sinking Fund, the amount of any such deficiency shall be added to and shall become a part of the amount due and payable into said Sinking Fund in the next succeeding month, and if, at the date of delivery of the bonds of this series, any of said Sinking Fund payments provided for herein shall be due and shall have not been made, such payments shall be made into said Sinking Fund contempora- neously with such delivery. 1 Section 405. The net revenues remaining in the Revenue Fund after the payment of the sums required or permitted to be paid under the provisions of Sec. 403(1) hereof, will be held by said political . subdivision subject to the provisions of Sec.403(2)hereof, in trust under the terms and conditions hereof, and, to the extent herein provided, all such funds are hereby pledged to secure the pay- ment of the amounts herein agreed to be paid for the payment of the principal and the interest and call premium, if any on the bonds here- in authorized to be issued and any future series of parity bonds issued hereunder, and said political subdivision hereby pledges such revenues to secure the payment of such amounts. Said reve- nues so pledged shall immediately be subject to the charge or lien of this pledge without any physical delivery thereof or other act, and the charge or lien of this pledge shall be valid and binding against said political subdivision and against all parties having claims of any kind against said political subdivision whether such claims shall have arisen from a tort, contract, or otherwise and irrespective of whether such parties have notice of such pledge. Section 406. Said political subdivision covenants and agrees that, in the event it hereafter elects to issue additional bonds on a parity with the bonds of this series as to the pledge of and charge or lien on such revenues, as it has a right to do pursuant to the provisions of this resolution, it will enlarge and extend. said Sinking Fund and, to the extent necessary increase and extend said monthly payments into said Sinking Fund to pay the principal of and the interest .. on all of such parity bonds then outstanding and on the bonds then proposed to be issued as the same shall mature and become due, and to create a reserve for thatpurpose in such manner and amount as is consistent with the requirements of this resolution and with the requirements of any succeeding resolution providing for the issuance of such parity bonds. Section 407. The said Sinking Fund will be maintained and held in trust by said political subdivision for the benefit of owners of the bonds of this series and of any pari passu bonds hereafter issued pursuant to the provisions of this resolution, and the beneficial interest therein shall be considered to be in such owners. - Section 408. Nothing contained herein shall be construed to prohibit the said political subdivision at its option, from making additional deposits or payments into said Sinking Fund from any funds which may be made available for such purpose. Section 409. (1) Subject to the terms and conditions of this resolution, money in said Sinking Fund shall be disbursed for (a) the payment of interest upon bonds secured hereby as such interest falls due, (b) the payment of the principal of the bonds secured hereby at their respective maturities, (c) the redemption of bonds secured hereby before maturity at the price and under the conditions provided therefor in Article II, hereof, (d) the purchase, at prices not to exceed the then current redemption price, and retirement of bonds secured hereby before their maturity, and (e) the charges of the paying agent and registrar unless such charges are paid directly from the Revenue Fund. (2) The pledge of and charge or lien on said Sinking Fund created hereby may be opened and extended to secure the payment of such future pari passu bonds as may beissued in accordance with the terms hereof. Section 410. Money yin said Sinking Fund not required to pay interest falling due on any interest payment date in the then current sinking fund year and not required to pay the principal on said bonds falling due on a maturity date in such year shall be invested in direct general obligations of, or obligations the principal of and interest on which are unconditional) guaranteed by, the United States of America and which shall mature or be payable at such times and in such manner as will make funds available for the payment of the sums due from said Sinking Fund and which are subject to redemption at any time. Any such securities so purchased shall be held by the depository of the Sinking Fund until paid at maturity, redeemed, or sold, • and the proceeds thereof, including interest, principal, and premium, if any, shall be immediately deposited to the credit of such fund. When a fixed amount is required to be maintained in said fund, the investments for such fund shall be valued in terms of current market value as of June 30 and December 31 of each year. Money in said fund and all securities held . in and for such fund, and the income therefrom, are hereby pledged to and charged with the payments required by this Article to be made from such fund. 1 Section 411. Such funds as shall from time to time re- main in the Revenue Fund after the payment of all amounts herein - above required to be paid may be withdrawn from said fund and used by said political subdivision for any lawful purpose as it may determine. Section 412. Said political subdivision will not here after issue any other bonds or obligations of any kind or nature paya ble from or enjoying a charge or lien on the revenues of said system prior to the charge or lien herein created for the payment of the bonds issued hereunder and any future issue or issues of parity bonds herein authorized to be issued. Nothing contained herein, however, shall restrict the issuance of additional bonds or obligations from time to time payable from the revenues of the system and secured by a charge or lien on said revenues junior and subordinate to the charge or lien herein created. Section 413. Said political subdivision shall, however, have the power and authority to issue additional revenue bonds ranking as to the lien on the revenues of said system pari passu with bonds herein authorized to be issued, provided all of the following conditions are met: (a) The payments covenanted to be made into the Sinking Fund heretofore created, as the same may be enlarged and extended by any future resolution authorizing the issuance of parity bonds must be currently being made in the full amount as required. (b) The net earnings of the system for a period of twelve consecutive months out of the eighteen months immediately preceding the adoption of proceedings for the issuance of such additional bonds must have been equal to at least one and thirty - three hundredths times the highest combined interest and principal requirements for any succeeding sinking fund year on all out - standing parity bonds, including the bonds of this series and any other series of parity bonds then outstanding, and on the bonds proposed to be issued, after deducting from such requirements for such sinking fund year the payments to be made to said political subdivision during the same sinking fund year pursuant to the provisions of the contract between said political subdivision and Chatham County, to which reference is made in Section 402, hereof, or pursuant to the provisions of any extension or modification of such contract, less the combined interest and principal requirements for the same sinking fund year on any bonds to be redeemed from any or all of the funds to be made available by the sale of the bonds proposed to be issued. Net earnings for the purpose of this provision shall be construed to be the gross earnings of the system remaining after the payment of the sums required to be paid to operate, maintain, and repair the system under Section 403(1), hereof, without making provision for depreciation. (c) An independent and recognized firm of certified public accountants shall certify to the governing body of said political subdivision that it is complying with the requirements of Section 413(a), hereof, and has met the requirements of Section 413(b), hereof. (d) The governing body of said political subdivision shall pass proper procedings reciting that all of the above re- quirements have been met, shall authorize the issuance of said bonds, and shall provide in such proceedings, among other pro - visions, the date such gonds shall bear, the rate or rates of interest, maturity dates, and redemption provisions. The interest on the bonds of any such issue shall be payable on June 1 and December 1 of each year, and the bonds shall mature in annual installments on June 1 or December 1, but not necessarily in each year or in equal amounts. Any such proceeding or proceedings shall require said political subdivision to increase the monthly payments then being made into the Sinking Fund to the extent necessary to pay the principal of and the interest on all such parity bonds then outstanding and on the bonds proposed to be issued as the same shall mature and become due and to create within a period of not more than seven years from the date of delivery of the bonds proposed to be issued and thereafter main- tained a reserve in said fund approximately equal to the highest combined principal and interest requirements in any succeeding sinking fund year on the then outstanding parity bonds and on the bonds proposed to issued. Any such proceedings shall restate and reaffirm by reference all of the applicable terms, conditions, and provisions of this resolution. (e) Such additional bonds or obligations and all proceedings relative thereto -and-- -the security therefor shall be validated as prescribed by law. Section 414. All bonds paid, purchased, or redeemed, either at or before maturity, shall be cancelled when payment therefor is made and shall be delivered to the finance officer of said political subdivision together with all unmatured coupons appertaining thereto, and such bonds and coupons shall not be reissued. All interest coupons shall be.canceiled.upon their payment and delivered to - said officer. All bonds and coupons so cancelled shall be mutilated and destroyed, and -a record of such mutilation and destruction shall:be filed with the governing body of said political subdivision. - Section 415. (1) Any funds not derived from the revenues of said system which may be paid to or received by said political subdivision at any time for the purchase or retirement of the bonds issued hereunder shall be placed in a special fund to be held in trust by said political subdivision and to be designated Savannah Beach. Water and Sewer. Revenue Bond, Series 1972, Redemption Fund, and applied to such purpose so far as possible in the same manner. as funds in the Sinking -Fund. If and when sufficient funds are deposited in said Redemption_ Fund. to .pay , all outstanding bonds of this series includingf-interest due or to become due thereon together with the reasonable- charges and fees of the paying agent and registrar and together with any premium required to be paid should said bonds be subject to redemption and said political subdivision shall have taken appropriate action to call and redeem all outstanding bonds subject to redemption, such deposit shall constitute payment in full of said bonds. 1 (2) Payment in full of all bonds issued hereunder shall also be accomplished if and when sufficient funds are deposited in said Redemption Fund to constitute, in the aggre- gate, a sum which, when invested in direct general obligations of the United States of America or obligations secured by the unconditional guarantee of the United States of America, will create, from the principal of and interest on such investments, funds sufficient in amount to pay all outstanding bonds issued hereunder and the interest due or to become due thereon together with the reasonable charges and fees of the paying agent and registrar and together with any premium required to be paid should said bonds be subject to redemption and said political subdivision shall have taken appropriate action to call and redeem all of said outstanding bonds which shall be subject to redemption. (3) After provision shall have been made for the payment of all bonds secured hereby and the interest thereon and all expenses and charges herein required to be paid, any balance remaining in the said Redemption Fund shall be paid to said political subdivision. Section 416. If, at any time, for any reason, Chatham County shall fail to pay all or any part of the money it has agreed to pay in accordance with the provisions of its aforesaid contract with said political subdivision, dated as of January 1, 1972, such payment shall become an obligation of the City of Savannah Beach, Tybee Island. ARTICLE V DEPOSITORIES OF FUNDS AND SECURITIES FOR DEPOSIT Section 501. All money deposited in any fund created hereby shall constitute trust funds for which said - political subdivision shall be responsible as trustee and shall be applied by said political subdivision in accordance with the terms hereof and for the purposes set forth herein_ and shall not be subject to lien or attachment by any creditor of said political subdi- vision, and, except as otherwise provided herein, all funds received by said political subdivision. under the terms hereof shall, subject to the giving of security as hereinafter provided, be deposited with a depository in the name of said.. political subdividion. Section 502. No money belonging to any of the funds created hereunder shall be deposited or remain on deposit with any depository or custodian in an amount in excess_of the amount guaranteed by the Federal Deposit Insurance Corporation or other federal agency succeeding to the functions thereof unless such institution shall have pledged, for the benefit of _said political subdivision and the owners of the bonds as collateral security 1 for the money deposited, obligations in which said political subdivision would be authorized by law to invest the proceeds of said bonds having a market value, exclusive of accrued interest, at least equal to the amount of such excess, . provided, however, that it shall not be required for any such depository to secure any portion of the funds invested pursuant to the provisions hereof. Section 503. The paying agent and registrar for said bonds and the depository for the Construction Fund and the Sink- ing Fund shall be Savannah Bank & Trust Company of Savannah, in the City of Savannah, Georgia. Section 504. At such times as the Sinking Fund depository and the paying agent for said bonds shall be the same bank acting in both capacities, such depository shall, without any further direction on the part of or any further authorization from said political subdivision, use and disburse the money in said Sinking Fund as provided in this resolution, except that, if, as provided under Article II of this resolution, it redeems or buys any bonds .issued hereunder with money in said Sinking Fund, then, proper authorization and direction from said political subdivision shall be furnished for such use and districution of said funds. ARTICLE VI PARTICULAR COVENANTS OF THE MUNICIPALITY Section 601. Said political subdivision has heretofore established or will establish and it will at all times keep in effect a schedule of rates, fees, tolls, and charges for the services, facilities, and commodities furnished by its said system and., as often as it shall be necessary, it will revise and adjust such schedule of rates, fees, tolls, and charges to the extent necessary to produce funds sufficient at all times to maintain . and operate said system on a sound business. like basis and to provide sufficient revenues for the maintenance of the special funds created by this resolution in order to discharge the purposes thereof in accordance and in compliance with the terms and conditions of this resolution. Section 602. In the event said political subdivision shall fail . to revise and adopt a schedule or schedules of rates, fees, tolls, and charges in accordance with the provisions of this Article, any bond owner, without regard to whether any default, as hereinafter defined, shall have occurred, may in- stitute and prosecute in any court of competent jurisdiction an appropriate action to compel the municipality to adopt such schedule or schedules or to revise such schedule or schedules in accordance with the requirements of this Article.. Section 603. Such rates, fees, tolls, and charges shall be classified in a reasonable manner to cover users of the ser- vices and facilities furnished by the system so that as near as practicable such rates, fees, tolls, and charges shall be uniform in application to all users falling within any reasonable class. Section 604. No free services will at any time be furnished from the system. Subject to the provisions of the aforesaid contract with Chatham County, all services will be furnished in accordance with rates now or hereafter established, including services furnished to any county, municipal corporatio political subdivision, or other public body. No customer will be connected to the system or be served from the system without a proper meter having been first installed. Section 605. All transfers from any fund for which provision is herein made and all payments from any such fund shall be made by checks signed by the properly authorized officers of said political subdivision. All such transfers and payments will be made at par, and all charges for exchange, fees or expenses which may be made by any depository of any of the afore- said funds in effecting such transfers or payments will be paid from the Revenue Fund as part of the expenses of operating the system. Section 606. Said political subdivision will promptly collect or cause to be collected all service charges and other obligations arising out of the operation of its -said system as such obligations become due, and it will apply all collections and all revenues and income from the system, as collected, as provided in this resolution and not otherwise. It will promptly pay the principal of and interest on every bond payable from the revenues of its water and sewer system at the place, on the dates, and in the manner herein, in said bonds, and in the coupons thereto appertaining specified, and any premium required upon redemption of said bonds, according to the true intent and meaning thereof. The principal of and interest on all bonds issued hereunder and call premiums, if any, and the charges of the registrar and paying agents are payable solely out of the revenues of the system, which revenues are - hereby pledged to the payment thereof in the manner and to the extent herein particularly specified, and nothing herein contained or in the bonds or coupons shall be construed as an obligation of said political subdivision to levy or to pledge any form of taxation whatever .. therefor_ or to make any appropriation for their payment, except from revenues of said system, including revenue to be derived from Chatham County, and no bond owner shall have any recourse to the power of taxation nor shall any bond constitute a charge, lien, or encumbrance, legal or equitable, upon any property of said political subdivision other than said revenues. Section 607. Said political subdivision will continuously maintain the system in good order and repair and will enforce reasonable rules and regulations governing the system and the operation thereof. All compensation, salaries, fees, and wages paid in connection with the maintenance, repair, and operation of the system will be reasonable, and no more persons will be employed than are necessary. Said political subdivision will operate the system in an efficient and economical manner, will at all times maintain the same in sound operating condition, will make all necessary repairs, renewals, and replacements, and will comply with all valid acts, rules, regulations, orders, and directions of any legislative, executive, administrative, or judicial body applicable to such undertaking. Said political subdivision will, also, at all times carry fidelity bonds on all of its officers and employees who may handle funds derived from said system, and such bonds shall be in such amounts as are at least equal to the total funds in the custody of such officer or employee at any one time. Section 608. Said political subdivision will not create or permit to be created in the operation and maintenance of the system any lien or charge thereon or on any part thereof or upon the revenues derived therefrom as the system now exists or as it may hereafter be extended and improved ranking equally with, except as herein provided, or prior to the lien or charge herein created upon such revenues, and-it will pay or cause to be discharged or will make adequate provisions to satisfy and discharge, within sixty days after the same shall accrue, all lawful claims and demands for labor, materials, supplies, or other objects which, if unpaid, might by law become a lien upon such system or any part thereof or upon the revenues therefrom, provided however, that nothing contained in this section shall require said political subdivision to pay, or cause to be dis- charged, or make provisions for the discharge of any•such lien or charge so long as the validity thereof shall be contested in good faith and by appropriate legal proceedings. Section 609. Not later than the fifteenth day of each calendar month, said political subdivision will make a partial payment to each construction contractor on the basis of a duly certified and approved,, estimate of . the work performed during the preceding calendar month by the particular =contractor, but will retain until final completion and acceptance of all work covered by the particular contract a reasonable amount, specified in the contract, sufficient to insure the proper performance of the contract. Section 610. (a) If the project or other facilities, the revenues of which are pledged, includes structures above ground level, upon acceptance of the project from the contractor, said political subdivision will, if such insurance is not already in force, procure fire and extended coverage insurance on the in- surable portions of the project, and, upon receipt of funds acquired pursuant to the sale of the bonds, said political sub- division will, if such insurance is not already in force, procure fire and extended coverage insurance on the insurable portion of any other of its facilities, the revenues of which are pledged to the security of the bonds issued hereunder. The foregoing fire and extended coverage insurance will be maintained so long as any of the bonds are outstanding and will be in the amount of the full insurable' value of the insured property. In the event of any damage to or destruction of any of said facility or facilities, said political subdivision will promptly arrange for the application of the insurance proceeds for the repair, reconstruction, or replacement of the damaged or destroyed portion thereof unless it shall be determined that such repair, reconstruction, or replacement is not economically feasible for the reason that the revenue of the system would not be increased thereby sufficiently to justify, in good business practice, the expenditure therefor of such insurance proceeds. (b) Upon receipt of any funds acquired pursuant to the sale of the bonds, said political subdivision will, if such insurance is not already in force, procure and maintain, so long as any of the bonds are outstanding, adequate public liability insurance relating to the operation of the project facilities to protect said political subdivision from claims for bodily injury and for death and from claims for damage to property of others which may arise from the operation of the project or any other facilities the revenues of which are pledged. (c) If said political subdivision owns or operates .a vehicle in the operation of the project, including any vehicle not owned by but operated for the benefit of said political subdivision, upon receipt of any funds acquired pursuant to the sale of the bonds, said political subdivision will, if such insurance is not already in force, procure and maintain, so long as any of the,bonds authorized hereby are outstanding, adequate vehicular public liability insurance to protect said political subdivision from claims for bodily injury and for death and against claims for damage to property of others which may arise from the operation of such vehicles. (d) The proceeds of all such insurance policies, except the public liability policies, are pledged as security for the outstanding bonds issued hereunder and those which may hereafter be issued pari passu thereto in accordance with the provisions hereof, but such proceeds shall be available for and may be applied to the cost of repair and replacemen• of the damaged or destroyed property, provided that any portion of such proceeds remaining after payment in full of such costs shall be paid into the Sinking Fund, or, if the property is not repaired or replaced, the proceeds shall be placed in said Sinking Fund. Section 611. Said political subdivision will keep the funds and accounts of the system separate from all other funds and accounts of said political subdivision or of any of its departments, and it will keep accurate records and accounts of allitems of cost and all expenditures relating to the system and of the revenues collected and the application thereof and of the number of customers, and it will keep said records and accounts with respect to its physical property in such manner that it will be possible at all times to identify both the amounts and the items of all additions and retirements. Section 612. Said political subdivision will permit the owner of any of the bonds, or the agent orattorney for such owner duly appointed and authorized in writing, to examine and inspect the system and all papers, contracts of insurance, books, records, accounts, and data-relating thereto at all reasonable times, and will permit copies or transcripts thereof to be made by any such person or persons at all reasonable times. Section 613. At the end of each fiscal year or as soon thereafter as practicable, but in no event later than ninety days after the end of each such year, said political subdivision will cause an audit to be made of its books and accounts pertaining to its said system by an independent accountant of suitable experience and responsibility to be chosen by its governing body. Such annual audit shall include a statement of the income and expenses and a reasonably detailed- balance sheet, comments by the auditor respecting compliance by said political subdivi- sionwith the provisions of this resolution, a list of insurance policies in force respecting the system and its operation showing the nature and amount of the risks covered, and a tabulation of the number of customers showing the classification thereof as residential, commercial, industrial, or other class. The original of such annual audit and statement will be filed in the permanent records of said political subdivision, and copies of same will be forwarded to all bond owners whose name and address shall have been filed with said political subdivision for thatpurpose. Said political subdivision will cause any additional reports or audits relating to such system to be made as may be required by law and, from time to time and as often as may be requested in writing it will furnish to any owner or owners of bonds and to the member firms of the account constitu- ting the original purchasers of the bonds such other information concerning such enterprise or the operation thereof, including quarterly reports of operating revenue and expense,asany of them may reasonably request. The cost of such audits and of such imports shall- be treated as a part of the cost of operation. Section 614 (1) So long as any of the bonds issued hereunder or bonds issued on.a parity therewith are outstanding and unpaid, said political subdivision will not sell, lease or otherwise dispose of or encumber said system or any of its related facilities as a whole or substantially as a whole and it will not create or permit to be created any charge or lien on the revenues of such system ranking equally with or prior to the charge or lien on such revenues created by this resolution for the security of the bonds authorized hereby, except by parity bonds issued in accordance with the provisions hereof, unless the proceeds of such sale, lease, or other disposition together with other funds available for that purpose in the Sinking Fund shall be at least sufficient of provide for the payment of the principal of and the interest on the bonds issued under and secured by this resolution and then outstanding, in- cluding any such future parity bonds, at their . respective maturi- ties as such principal and interest shall become due, together with the charges of the registrars and paying . agents, . and the proceeds of any such sale shall be deposited in the Sinking Fund and applied, to the extent necessary, to the payment of such bonds and the interest thereon. (2) Said political subdivision may, however, from time to time sell or dispose of any machinery, fixtures, appa- ratus, tools, instruments, or other, movable property constituting a part of the system and related facilities as the same may be added to, extended, and improved, if said political subdivision shall determine that such articles are no longer needed or have become inadequate, obsolete, worn out, or unsuitable or are no longer useful in connection with the operation of thep roject and if the proceeds of any such sale or disposition shall be applied to the replacement of the property and material so sold or disposed of or shall be deposited to the credit of the Sinking Fund. (3) Said political subdivision may,however, lease or sell any part of its system, provided (a)such lease or sale will not in any way adversely affect the revenues of the system, (b)said political subdivision shall make a determination that such property or facility is not needed and serves no useful purpose in connection with the maintenance and operation of the system and its related facilities, (c) The proceeds from such lease or sale are used for extensions to or improvements of the project or are de- posited to the credit of the Sinking Fund, and (d) said political subdivision is in compliance with all covenants and undertakings in connection with all of its bonds then outstanding and payable from the revenues of the system. Section 614. Any such deposits to the Sinking Fund which may be made pursuant to any provision of this Article VI, shall be in addition to all other deposits required to be made thereto. Section 615. It is reasonably expected . that the proceeds of the issue of the bonds authorized hereby will not be used in a manner that would cause the obligations to be arbitrage bonds under 26 U.S.C.A. §103(d)(2), and the proposed regulations of the Internal Revenue Service thereunder. ARTICLE VII REMEDIES Section 701. Each of the following events is hereby declared an event of default, that is to say if: (a) Payment of the principal of any of the bonds secured hereby shall not be made when the same shall become due and payable, either at maturity or by proceedings for redemption, (b) Payment of any installment of interest shall not be made when the same shall become due and payable or within thirty days thereafter, (c) Said political subdivision shall, for any reason, be rendered incapable of fulfilling its obligations hereunder, (d) An order or decree shall be entered with the consent or acquiescence of said political subdivision appointing a receiver or receivers of the system or of the revenues therefrom or any proceedings shall be instituted with tle consent or acquiescence of said political subdivision for the purpose of effecting a composition between said political subdivision and its creditors or for the purpose of adjusting claims of such creditors pursuant to any federal or state statute now or hereafter enacted if the claims of such creditors are, under any circumstances, payable out of the revenues of the system, 1 1 1 or if such order or decree, having been entered without the consent and acquiescence of said political subdivision, shall not be vacated or discharged or stayed on appeal within sixty days after entry thereof or if such proceeding, having been instituted without its consent or acquiescence, shall not be withdrawn or any orders entered shall not be vacated, discharged, or stayed on appeal, within sixty days after the institution of such proceedings or the entry of such order, or (e) Said political subdivision shall default in the due and punctual performance of any other of the covenants, conditions, agreements, or provisions contained in the bonds secured hereby or in this resolution on its part to be performed, and such default shallcontinue for hirty days after written notice specifying such default and requiring same to be remedied shall have been given to said political subdivision by any bond owner. Section 702. Upon the happening and continuance of any event of default by said political subdivision in any one of the ways specified in the preceding section, the owners of the bonds then outstanding shall have the following rights and 9' 9' remedies: (a) The owners of not less than a majority in principal amount of the bonds then outstanding may, by a notice in writing to said political subdivision, declare the principal of all of the bonds then outstanding, if not then due and payable, to be due and payable together with the interest thereon, and, upon such declaration,-such bonds and the interest thereon shall become and be immediately due and payable, anything in the bonds or herein contained to the contrary notwithstanding, provided, however, that if, at any time after the principal of the bonds shall have been so declared to be due and payable, all arrears of interest, if any, upon all the bonds then outstanding and all other indebtedness secured hereby except the principal of any bonds not then due by their terms and the interest accrued on the bonds since the last interest payment date, shall have been paid or such payment shall have been provided forty the deposit with the paying agent of a sum sufficient to pay the same, and every other default in the observance or performance of any covenant, condition, or agreement in the bonds or herein contained shall be made good or provisions therefor satisfactory to such bond owners shall have been made, then and in every such case, the owners of not less than a majority in principal amount of the bonds then outstanding may, by written notice to said political subdivision, rescind and annual such declaration and its consequence, but no such rescission or annulment shall extend to or affect any subsequent default or impair any right relative thereto. (b) Any bond owner may proceed, subject to the provisions of Section 704, hereof, with any other right or remedy independent of or in aid of the foregoing powers as such bond owner may deem best, including the right to secure specific performance by said political subdivision of any covenant or agreement herein contained, the right to protect and enforce the rights of the bond owners hereunder by suit, action, or special proceedings in equity or at law in aid or execution of any power herein granted or for the enforcement of any proper legal or equitable remedy deemed most effectual to protect and enforce such rights, the right to the appointment, as a matter of right and without regard to the sufficiency of the security afforded by the project, of a receiver for all or any part of the project and the earnings, revenues, and income therefrom and the rights given to municipalities to enforce remedies afforded to bond owners under the Georgia Revenue Bond Law, Ga. Code Ann., Ch. 87 -8. The rights herein specified are to be cumulative of all other available rights, remedies, or powers and shall not be exclusive of any. Section 703.. In case any proceeding taken by any bond owner on account of any default shall have been discontinued or abandoned for any reason or shall have been determined ad- versely to such bond owner, then and in every such case, said political subdivision and the bond owners shall be restored to their former positions and rights hereunder, respectively, and all rights, remedies, powers, and duties of the bond owners shall continue as though no such proceedings had been taken. Section 704. No one or more owners of the bonds secured hereby shall have any right in any manner whatever by his or their action to affect, disturb, or prejudice thg6ecurity granted and provided herein or to enforce any right hereunder except in the manner herin provided, and all proceedings at law or in equity shall be instituted, had, and maintained for the equal benefit of all owners of such outstanding bonds and coupons. Section 705. No remedy herein conferred upon the bond owners is intended to be exclusive of any other remedy or remedies, and each and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder orhow or hereafter existing at law or in equity or by statute. Section 706. No delay or omission of any bond owner to exercise any right or power accruing upon any default occurring and continuing as aforesaid shall impair any such right or power or be construed as a waiver of any default or an acquiescence therein and every power and remedy given by this Article to the owners of the bonds may be exercised from time to time and as often as may be deemed expedient. 1 1 1 ARTICLE VIII SUPPLEMENTAL PROCEEDINGS Section 801. Anything to the contrary herein notwith- standing, said political subdivision may,, from time to time, adopt such proceedings supplemental hereto as shall be deemed necessary or desirable for the purpose of modifying, altering, amending, adding to, or rescinding, in any particular, any of the terms or provisions contained herein or in any supplemental resolution or in the bonds, provided, however, that there shall be no modifica- tion, amendment, or supplemental proceedings to: (a) Alter the date fixed in any of the bonds or coupons for the payment of the principal of or any interest on any bond or otherwise modify the terms of payment of the princi- pal at maturity of or interest on any bond or impose any condi- tions with respect to such payment or affect the right of any bond owner to institute suit for the enforcement of any such pay- ment as provided herein, (b) Alter the amount of principal of or the rate of interest or redemption premium, if any, payable on any bond, (c) Affect the rights of the owners of less than all of the bonds then outstanding, (d) Reduce the percentagg6f the principal amount of the bonds the consent of the owners of which shall be requiredE_for the authorization of any such modification or amendment or reduce the percentage of the principal amount of bonds the action of the owners of which shall be required to declare all outstanding bonds to be due pursuant to the provisions of Section 702, hereof, or (e) Create any lien or charge on the revenues from the general operation of said system prior or superior to the lien or charge created on the revenues of the system as security for the payment of the bonds of this series and any other parity bonds hereafter issued pursuant to the provisions of this resolution. Section 802. A modification or amendment of the provi- sions with respect to the Sinking Fund as authorized hereby shall not be deemed a change in the terms of payment. Section 803. Nothing herein contained, however, shall be construed as making necessary the approval by the bond owners of any resolution not inconsistent with the terms and provisions of this resolution and any supplemental proceedings forming a part hereof to cure any ambiguity or to cure, correct, or supplement any defect, omission, or inconsistent provision contained herein or in any supplemental proceedings or to grant any additional rights, remedies, powers, authority, or security that may law- fully be granted to or conferred upon the bond owners, or to make any provisions with respect to matters arising hereunder for any other purpose if such provisions are necessary or desirable, are not inconsistent with any provision hereof, and do not adversely affect the interest of any bond owner. Section 804. (a)Whenever said political subdivision shall propose any such supplemental resolution, the governing body of said political subdivision shall adopt such resolution, and, unless the owners of all then outstanding bonds of this series shall have filed their names and addresses with the bond registrar or with the City Clerk of said political subdivision or unless the owners of all such bonds file with said City Clerk instruments approving the adoption of such resolution, as hereinafter provided, accompanied by proof of ownership as hereinafter provided, said political subdivision shall publish such resolution once a week for two consecutive weeks in a financial journal of general circulation published in the English language, regularly at least five days each week, in the Borough of Manhattan, City and State of New YOrk. (b) A notice in substantially the following form shall be published with the resolution: "To the owners of City of Savannah Beach, Georgia, Water and Sewer Revenue Bonds, Series 1972: "The following resolution was adopted by the City Council of the City of Savannah Beach, Tybee Island, Georgia,on 19 , and, sugject to the provisions of the resolution authorizing the issuance of said Series 1972 bonds, adopted ,1972, the resolution set forth below will become effective thirty days after the owners of at least seventy five percent in aggregate principal amount of said bonds then outstanding shall have filed with the City Clerk of said City of Savannah Beach, Tybee Island, Georgia, instruments approving the adoption of said resolution. Each such instrument shall be accompanied by proof of ownership of the bonds to which such instrument refers which proof shall be such as is permitted by the provisions of article VIII of the above mentioned resolution. L. i_/ /s/ E. M. Patterson CITY CLERK, CITY OF SAVANNAH BEACH TYBEE ISLAND, GEORGIA Section 805. On or before the date of the first publica- tion thereof, said political subdivision shall cause a copy of such supplemental resolution and of the above mentioned notice to be mailed, postage prepaid, to all owners of bonds of this series who shall have filed their names and addresses with the bond registrar or with said City Clerk. Should any bonds on a parity with the bonds of this series be hereafter issued, then, the form of notice hereinabove set forth shall be modified to notify the owners of such issue or issues of parity bonds as well as the owners of the bonds of this series and of all other outstanding parity bond issues. Section 806. No such supplemental resolution shall become effective unless the owners of at least seventy five percent in aggregate principal amount of the then outstanding bonds of this series and any issue or issues on a parity therewith issued subsequent hereto shall have filed with said City Clerk, within six months after the date of adoption of such resolution, instruments approving the adoption of such resolution, each such instrument to be accompanied by proof of ownership of the bonds to which such instrument refers, which proof shall be such as is permitted by the provisions of this Article. Section 807. Any action or proceeding in any court objecting to such supplemental resolution or to any of the terms and provisions therein contained or to the operation thereof or in any manner questioning the propriety of the adoption thereof or the execution by any bond owner of any instrument purporting to approve the adoption of such resolution or to enjoin or restrain said political subdivision from taking any action pursuant to the provisions thereof, must be commenced within thirty days after the governing body of said political subdivision shall have determined that the owners of at least seventy five percent in aggregate principal amount of the then outstanding bonds of this issue and of any issue or issues on a parity therewith issued subsequent hereto have approved the adoption of such resolution. Section 808. Upon the expiration of such thirty day period or, if any such action or proceeding shall be commenced, upon any judgment or decree sustaining such supplemental resolution becoming final, this resolution and any resolution hereafter authorizing the issuance of bonds on a parity with the bonds of this series shall thereupon be modified and amended in accordance with such supplemental resolution, and the respective rights, duties, and obligations, under this resolution and under any resolution hereafter authorizing the issuance of bonds on a parity with the bonds of this series, of all owners of outstanding bonds of this series and of pari passu bonds issued subsequent hereto shall thereafter be determined, exercised, and enforced hereunder, subject, in all respects, to such modifications and amendments. Section 809. Any supplemental resolution adopted and becoming effective in accordance with the provisions of this Article shall thereafter form a part of this resolution, and all the terms and conditions contained in any such supplemental resolution as to any provisions authorized to be contained therein shall be part of the terms and conditions of this resolution and shall be effective as to all owners of the then outstanding bonds of this series and of any subsequent bonds issued on a parity with the bonds of this series, and no notation or legend of such modifications and amendments shall be required to be made on any such outstanding bonds or coupons thereto appertaining. Section 810. (a) Any request, waiver, direction, consent, or other instrument requiredby this resolution to be signed or executed by bond owners may be in any number of concurrent writings of similar tenor and may be signed or executed by such bond owners in person or by agent or attorney appointed in writing. Proof of the execution of any such instrument, or of the writing appointing such agent, and of the ownership of bonds, if made in the following manner, shall be sufficient for any purpose of this resolution and shall be conclusive in favor of said political subdivision with regard to any action taken by it under such instrument. (1) The fact and date of the execution by any person of any such instrument may be proved by an affidav' of a witness to such execution or by the certificate of any officer in any jurisdiction, who, by the laws thereof, has power to take acknowledgments within such jurisdiction, to the effect that the person signing such instrument acknowledged before him the execution thereof. (2) The ownership at any given time of an unregistered bond or coupon may be proved by the certifi- cate, if deemed satisfactory to said political subdivision, of any trust company, bank, or banker, wherever situated, stating that on the date stated the stated party had on deposit with or exhibited to it the bond or coupon described. The ownership at any given time of a registered bond mayle proved by a certifi- cate of the registrar stating that on the date stated the regis- tered bond described was registered on its books in the name of the stated party. Said political subdivision may conclusively assume that such ownership continues until written notice to the contrary is served upon it. (b) Any request or consent of the owner of any bond shall bind every future owner of the same bond in res- pect of anything done by said political subdivision in pursuance of such request or consent. ARTICLE IX CALL OF 1950 BONDS Section 901. Pursuant to the provisions of Article II, of the aforesaid ordinance of November 9, 1950, the City of Savannah Beac], Tybee Island, shall and hereby does exercise its option to redeem on December 1, 1972, all outstanding Savannah Beach, Tybee Island, Water Revenue Anticipation Certificates, dated December 1, 1950, authorized by said ordinance and maturing after December 1, 1972, and the same are hereby called for re- demption on December 1, 1972, and the owners of all of said revenue certificates shall present the same for redemption and payment on that date and receive therefor the principal amount thereof, the call premium, and' _all interest due thereon to December 1, 1972. Section 902. At least thirty days before the redemption date designated in Section 901, hereof, notice of intention to so redeem signed by the Mayor and attested by the City Clerk of said political subdivision, designating the redemption d ate and the certificates to be redeemed shall be published in a news- paper of general circulation in the City of Savannah, Georgia, and shall be filed with the duly authorized and designated paying agent, i.e., the Savannah Bank &Trust Company of Savannah, Georgia, the place at which the principal of and interest on the bonds shall be payable and shall be mailed, postage prepaid, to all registered owners of certificates to be redeemed whose addresses shall appear upon the books of registration, and, notice having been given in the manner and under the conditions hereinabove and in Article II, Section 1, of said ordinance of November 9, 1950, provided, the certificates so designated for redemption shall, on the redemption date designated in said notice, become and be due and payable at the recemption price specified in said Article II, 1 1 of said ordinance of November 9, 1950, and interest on the certificates so designated for redemption shall, after the date fixed for redemption, cease to accrue, and interest coupons maturing after such redemption date shall become void. Section 903. Said notice shall be substantially in the following form: NOTICE OF REDEMPTION OF SAVANNAH BEACH, TYBEE ISLAND,"GEORGIA WATER REVENUE ANTICIPATION CERTIFICATES DATED DECEMBER 1, 1950 NOTICE IS HEREBY GIVEN to the owners of the following described Savannah Beach, Tybee Island, Georgia, water Revenue Anticipation Certificates, dated December 1, 1950, of the inten- tion of the City of Savannah Beach, Tybee Island, to redeem in whole the outstanding certificates of said issue maturing after December 1, 1972, and said city has exercised its option so to redeem said bonds and has called the same for redemption on December 1, 1972, said outstanding certificates maturing after December 1, 1972, being in the aggregate principal amount of $45,000 of the denomination of $1,000 each, numbered 111 through 153, and 159 and 165, bearing interest at the rate of 3 1/4% per annum payable semiannually on June 1 and December 1, and maturing serially on the first day of December in the amount of $7,000 in each of the years 1973 through 1978, $2,000 in the year 1979 and $1,000 in the year 1980. Funds for the payment of the certificates being redeemed for all interest due thereon to December 1, 1972, and for the required redemption premium will be deposited with the Savannah Bank & Trust Company of Savannah, Georgia, the duly designated and authorizedhpaying agent, on or before December 1, 1972, the date fixed for redemption, and the above described certificates and all unmatured coupons thereto appertaining should be presented to the paying agent for redemption and payment on that date. Interest on said certificates designated for redemption shall cease to accrue on December 1, 1972, and said interest coupons maturing after that date shall be void. This notice is given pursuant to the provisions of an ordinance of the Mayor and Councilmen of the Town of Savannah Beach, Tybee Island, Georgia, adopted November 9, 1950, providing for the issuance and for the redemption of said outstanding certificates dated December 1, 1950, and to a resolution of said body adopted July 19, 1972, exercising the option so to redeem and callin s outstanding certificates for redemption ATTEST: CITY OF SAVANNAH BEACH TYB I ND /s/ E. M. Patterson By: /s/ M. J. Counihan w it_ CITY CLERK MAYOR ARTICLE X MISCELLANEOUS PROVISIONS AND DEFINITIONS Section 1001. Any bank or trust company with or into which the paying agent may be merged or consolidated or to which the assets and the business of such paying agent may be sold shall be deemed the successor of such paying agent for the purpose of this resolution. Section 1002. The provisions, terms, and conditions of this resolution shall constitute a contract by and between said political subdivision and the owners of thet bonds authorized to be issued hereunder, and, after the issuance of the bonds of this series, this resolution shall not be repealed or amended in any respect which will adversely affect the rights and interest of the owners of the bonds nor shall the governing body of said political subdivision pass any ordinance or resolution in any way ever adversely affecting the rights of such owners so long as any of the bonds authorized by this resolution or the interest thereon shall remain unpaid, provided, however, that the provisions of this Section shall not be construed to restrict or impair any rights reserved to said political subdivision by the provisions of Article VIII, hereof. Section 1003. Any subsequent proceeding or proceedings authorizing the issuance of additional parity bonds as permitted under the provisions of this resolution shall in nowise conflict with the terms and conditions of this resolution, but shall, for all legal pruposes, contain all the covenants, agreements, and provisions of this resolution for the equal protection and benefit of all bond owners. Section 1004. Should any bonds or coupons not be presented for payment when due, said political subdivision shall retain in the Sinking Fund, from the funds transferred thereto for the purpose of paying said bonds and coupons, for the benefit of the owners thereof, a sum of money sufficient to pay such bonds or coupons when the same are presented by the owners thereof for payment, upon which sum the depository shall not be required to pay interest. All liability of said political subdivision to the owners of such bonds and coupons, if any, and all rights of such owners against the municipality under the bonds and coupons, if any, or under this resolution shall thereupon terminate, and the sole right of such owners shall thereafter be against such deposit. If any bond or coupon shall not be presented for payment within the period of ten years following the date when such bond or coupon becomes due, said political subdivision may transfer to its general fund all funds theretofore held by it in said Sinking Fund for payment of such bond or coupon, and such bond or coupon shall, subject to the defense of any applicable statute of limitations, hereafter be an unsecured obligation of said political subdivision. Section 1005. The bonds herein authorized shall be validated in the manner provided by law, and, to that end, notice of- the adoption of this resolution and a copy hereof shall be served upon the District Attorney'of the Eastern Judicial Circuit of Georgia in order that proceedings for the above purpose may be instituted in the Superior Court of Chatham County,. -and said notice shall be executed by the Mayor and the seal of said political subdivision shall be affixed and attested by the City Clerk. Section 1006. Whenever used in this resolution the singular shall include the plural and the plural shall include the singular unless the context otherwise indicates, and the following words and phrases and others evidently intended as the equivalent thereof, whenever used in this instrument, unless the context clearly indicates otherwise, shall be given the following respective meanings: (a) Fiscal year, means the period commencing on the first day of May and extendingthrough the last day of April in the succeeding year. (b) Sinking Fund year, means the period commencing on June 2 in each year and extending through June 1 of the succeeding year. (c) The City of Savannah Beach, Tybee Island, and other terms making reference thereto mean the present governing body of said political subdivision and any successor or successors in office to said present body or any person, body, or authority to whom or to which may hereafter be delegated by law the duties, powers, authority, obligations, or liabilities of the present body, either in whole or in relation to the said system. (d) Water and sewer system, system, project, and undertaking shall be construed as one and the same and mean the facilities now or hereafter owned by said political subdivision and used by it in furnishing water and sewer services and facilities. (e) Consulting engineers, project engineer, and other terms making reference thereto, mean the engineer for said political subdivision or such other engineer, engineers, or engineering frim that might be hereafter employed by said political subdivision pursuant to the provisions of this resolution in relation to the supervision of the acquisition and construction of the Improvements to said system and in relation to the services to be rendered as in this resolution provided. Section 1007. In case any one or more of the provisions of this resolution or of the bonds or coupons issued hereunder shall for any reason be held to be illegal or invalid by a court of competent jurisdiction, such illegality or invalidity shall not affect any other provisions hereof or of said bonds or coupons unless expressly so held, but this resolution and said bonds or coupons shall be construed and enforced as if such illegal or invalid provisions had not been contained herein or therein, and this resolution shall be construed to adopt, but not to enlarge upon, all the applicable provisions of said Georgia Revenue Bond Law, and, if any provisions hereof conflict with any applicable provision of said law, the latter as adopted by the legislature and as interpreted by the courts of this state shall prevail and shall be substituted for any provision hereof in conflict or not in harmony therewith. Section 1008. Any and all ordinances or resolutions or parts or ordinances or resolutions in conflict with this resolution shall be and the same hereby are repealed, and this resolution shall be in full force and effect from and after its adoption. l: 9/(/7( 2. /s/ M. J Counihan APPROVED AND ADOPTED, JULY MAYOR 1 1 1 1 AN ORDINANCE AN ORDINANCE TO AMEND SECTION 3 -1 OF THE CODE OF ORDINANCES, CITY OF SAVANNAH BEACH, TYBEE ISLAND, GEORGIA, PERTAINING TO ALCOHOLIC BEVERAGES, BUSINESS HOURS, SO AS TO RE- DEFINE THE TIMES THAT ALCOHOLIC BEVERAGES OR SPIRITUOUS LIQUORS MAY BE SOLD BY PERSONS OR BUSINESSES HAVING LICENSES ISSUED BY THE MUNICIPALITY; AND FOR OTHER PURPOSES. SECTION I. Be it ordained by the Mayor and Councilmen of the City of Savannah Beach, Tybee Island, Georgia in council duly assembled and it is hereby ordained by authority of the same that Section 3 -1(a) sub- sections (1) through (5) be struck in their entirety and inserting in lieu thereof the following: "(1). It shall be unlawful for any person or business to sell or offer for sale any alcoholic beverages or spirituous liquors as such terms are defined in Georgia Code Section 58 11, on Sundays, that is between the hours of 12:00 o'clock P.M. midnight on Saturday night and 12:00 o'clock P.M. midnight on Sunday night, and on election days beginning one hour prior to the opening of the polls and ending one hour after the closing of the polls." SECTION II. All ordinances or parts of ordinances in conflict with this ordinance are hereby repealed. ADOPTED IN OPEN COUNCIL this 16th day of August, 1972. First Reading: Second Reading: Adopted: ATTEST: CITY OF SAVANNAH BEACH, TYBEE ISLAND, GEORGIA July 19, 1972 August 16, 1972 August 16, 1972 Clerk of Council