HomeMy WebLinkAboutORD 86-38 I
ORDINANCE NO.
ENTITLED AN ORDINANCE AUTHORIZING EXECUTION OF
AN AGREEMENT WITH THOMAS TEW, TRUSTEE FOR
E.S .M. GOVERNMENT SECURITIES, INC . AND
PROVIDING FOR THE LEVYING AND COLLECTING OF A
SUFFICIENT TAX TO PAY THE INTEREST ON SUCH
OBLIGATIONS INCURRED AND TO PROVIDE A SINKING
FUND; AND PROVIDING FOR SEVERABILITY.
WHEREAS, in order to receive its court-approved pro rata
distribution from the Bankruptcy of E.S . M. Government Securities,
Inc. at the earliest possible date, the city must execute an
agreement to provide for the repayment of such distribution plus
interest in the event such court-approved orders are reversed,
materially modified or vacated after any appeal or certiorari;
and,
WHEREAS, in order to assure the legal sufficiency of this
transaction, the city must levy a sufficient tax to provide for
repayment of the contingent liability associated with the
agreement;
NOW, THEREFORE, BE IT ORDAINED BY THE
CITY OF BEAUMONT :
Section 1 .
That the City Manager be, and he is hereby, authorized to
sign, in behalf of the City of Beaumont, the agreement attached
hereto as Exhibit "A" and made a part hereof for all purposes.
Section 2 .
That the City Council shall, for each year that the
agreement herein authorized is in effect, compute and ascertain the
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rate and amount of ad valorem tax , if any , which will be sufficient
to provide the money required to pay any sums which may be or
become due during any such year together with all interest thereon,
because of the agreement herein authorized. Said rate and amount
of ad valorem tax is hereby ordered to be levied and is hereby
levied against all taxable property in the City of Beaumont for
each year such agreement is in force and effect, and said ad
valorem tax shall be assessed and collected each such year until
all of the obligations herein incurred shall have been discharged.
Section 3 .
That if any section, subsection, sentence, clause or
phrase of this ordinance, or the application of same to a
particular set of persons or circumstances, should for any reason
be held to be invalid, such invalidity shall not affect the
remaining portions of this ordinance, and to such end the various
portions and provisions of this ordinance are declared to be
severable.
PASSED BY THE CITY COUNCIL of the City of Beaumont this
the day of 1986.
Mayor -
2 -
City, o 'Beattn)ont
April 9, 1986
Mr. Thomas Tew, Trustee
for E.S.M. Government Securities
c/o Finley, Rumble, Wagner, Heine, et al
Suite 1000
Sunbank Center
777 Brickel Avenue
Miami, Florida 33131
Dear Mr. Tew:
This letter will constitute the undertaking of the City
of Beaumont, Texas, to repay to the E.S.M. estate the amount
of any prorata distribution received by it, together with
interest, in the event that any of the Approval Orders are
reversed, materially modified or vacated after any appeal or
certiorari. This undertaking is entered into in order to
enable the City of Beaumont, Texas, to receive distribution
of its prorata share of the Present Customer Property
pursuant to Article VIII, Section 5 (a) of the Agreement
dated as of February 28, 1986, filed in Case No.
85-6254-CIV-GONZALES, styled In Re: E.S.M. Government
Securities, Inc. , Debtor, pending in the United States
District Court for the Southern District of Florida. Such
agreement is hereinafter referred to as the "Agreement".
The City of Beaumont, Texas, acknowledges that it is
subject to the jurisdiction of the United States District
Court for the Southern District of Florida in the above
described case.
All capitalized terms used herein which are defined in
the Agreement are used herein with the meaning set forth in
the Agreement. The interest to be repaid to the E.S.M.
estate in the event of repayment of any distribution will be
computed in accordance with Section 5 (a) of Article VIII of
the Agreement.
P. O. Box 3827 Beaumont, Texas 77704
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Page 2
This undertaking will terminate and be of no further
force or effect when the Approval Orders become final and
are no longer subject to reversal, modification, or action
on appeal or by writ of certiorari.
Sincerely,
THE CITY OF BEAUMONT, TEXAS
By:
Pete Shelton
Acting City Manager
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