HomeMy WebLinkAbout86- Cancelled Promissory Note, USA, State and City
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PROMISSORY NOTE
UNITED STATES OF AMERICA
STATE OF MONTANA
CITY OF BOZE~~
NO. R-l ~
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DATE: August 15, 1986
The City of Bozeman (the Issuer) for value
received acknowledges itself to be indebted and promises
to pay to the Montana Municipal Insurance Authority (the
Authority), its successors or assigns, at the principal
office of First Trust Company of Montana, in Billings,
Montana (the Trustee), the principal sum of Four Hundred
Sixty-Six Thousand Five Hundred Sixty-Eight and 97/100
Dollars ($466,568.97), and interest thereon at the rates,
on the dates and in the installments as set forth in
Exhibit A hereto. The Issuer further agrees to pay on the
same payment dates ten percent (10%) of the annual
principal and interest due under this Note (Gross Debt
Service Premiums) as Supplemental Debt Service Premium.
Payments hereunder are due August 28, 1986 and July 15 of
each year commencing July 15, 1987. The principal amount
hereof and the principal amount of the Notes of the other
Initial Participants shall be reduced on November 1, 1986
pro rata by the principal amount of the Notes executed and
delivered to the Authority by Additional Participants in
the program prior to that date. The Issuer shall have
credited to the payment of its Gross Debt Service Premium
hereunder: (i) with respect to the payment due on August
28, 1986 the amounts paid into the Debt Service Fund from
the proceeds of the Bonds; and (ii) its proportionate
Share of investment income earned on the Claims Payment
Fund, the Debt Service Fund and the Debt Service Reserve
Fund (after the amounts therein are equal to the Reserve
Requirement) identified by the Trustee on March 1 of each
year as provided in Section 5.02(b) of the Indenture,
after first crediting such income to the payment of the
Issuer's Supplemental Debt Service Premium due and payable
on the next Premium Payment Date and commencing on
March 1, 1992 or such earlier date on which the amount in
the Debt Service Reserve Fund equals the Reserve
Requirement and each year thereafter, to the restoration
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of the Debt Service Reserve Fund as provided in Section
4.4(b)(3)(a) of the Agreement (as hereinafter defined),
and (iii) its Proportionate Share of Debt Service Premiums
paid by Participants executing notes subsequent to
November 1, 1986 and received and deposited to the Debt
Service Fund. In addition to the payment of principal and
interest on the Note, the Issuer shall pay to the
Authority or its successors all other components of the
Premium calculated and assessed annually and payable on
July 15 of each Policy Year or as may be required under
the Liability Insurance Coverage Program Agreement (the
Agreement) for participation in the Program. The
obligation to make the payments on this Note is not in any
way contingent upon continued participation in the Program
and is not extinguished by the Issuer's withdrawal from or
the termination of the Program, except as may be provided
herein,
The payments of this Note are payable in coin or
currency of the United States of America which at the time
of payment is legal tender for the payment of public or
private debts, or by check drawn in such currency upon a
Federal Reserve Bank of the United States in such form
that the funds are immediately credited to the account of
the depositor.
1. As used herein with initial capital letters,
the following terms have the following meanings:
"Additional Participants" shall mean the Montana
cities and towns listed in Appendix A to the Indenture
executing and delivering Notes to the Authority subsequent
to August 28, 1986 and prior to November 1, 1986.
"AQreement" shall mean the Liability Insurance
Coverage Program Agreement between the Issuer and the
Authority setting forth the terms and conditions of the
Program.
"Authority" shall mean the Montana Municipal
Insurance Authority, a joint exercise of powers entity
created pursuant to the Interlocal Cooperation Agreement
for the purpose of providing self-insurance coverage to
Montana municipalities on a pooled basis.
"Bonds" shall mean the Montana Municipal
Insurance Authority Liability Insurance Coverage Program
Bonds issued by the Authority pursuant to the Indenture
for the purpose of establishing the Claims Payment Fund
and paying the costs relating to the issuance of the Bonds
and capitalizing interest on the Bonds.
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"Gross Debt Service Premium" means with respect
to each Participant, annual principal of and interest due
on the Note without regard to any credit for investment
earnings pursuant to Section 5.02(b) of the Indenture and
Section 4.4(b)(3)(a) of the Agreement.
"Indenture" shall mean the Indenture of Trust
dated as of August 15, 1986 between the Authority and the
Trustee pursuant to which the Bonds are issued.
"Initial Participants" shall mean the Cities of
Billings, Bozeman, Great Falls, Helena and Missoula and
the City-County of Butte-Silver Bow, each a municipal
corporation and political subdivision organized and
existing under the laws of the State of Montana.
"Interlocal Aoreement" shall mean that Interlocal
Cooperation Agreement establishing the Montana Municipal
Insurance Authority pursuant to Title 7, Chapter 11, Part
1, M.C.A.
"Interlocal Cooperation Act" shall mean Title 7,
Chapter 11, Part 1, M.C.A.
"Law" shall mean Section 2-9-211 and 2-9-212,
M.C.A., as amended.
"Leaoue" shall mean the Montana League of Cities
and Towns.
"Note" shall mean the Note executed by the Issuer
pursuant to the Note Resolution evidencing its obligation
to pay levy an ad valorem tax on all taxable property
within its boundaries in an amount necessary to pay Gross
Debt Service Premium and Supplemental Debt Service Premium
thereunder.
"Participants" shall mean the municipalities
participating in the Program.
"Policy Year" means each fiscal year or portion
thereof for which a Participant has paid Premium.
"prooram" shall mean the Liability Insurance
Coverage Program provided by the Authority pursuant to
which the Issuer and other partiCipating political
subdivisions issues Notes.
"Proportionate Share" shall mean the ratio of the
outstanding principal of this Note to the outstanding
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principal amount of the Notes of all other Participants on
the date the determination is made.
"Supplemental Debt Service Premium" means, with
respect to each Participant, 10% of the annual principal
of and interest due on the Note in any calendar year.
2. This Note is issued pursuant to and in full
compliance with the provisions of the Constitution and
laws of the State of Montana, particularly Sections
2-9-211 and 2-9-212, M.C.A. , as amended (the Law) and
pursuant to a resolution duly adopted thereunder by the
governing body of the Issuer (the Note Resolution). This
Note is issued to fund the Issuer's proportionate share of
establishing a Claims Payment Fund from which liability
insurance settlements will be paid on behalf of the Issuer
and other municipalities participating in the Program and
is issued in an amount equal to its Proportionate Share of
the principal amount of the Bonds not exceeding 3% of the
taxable value of the Issuer. The Note constitutes an
obligation of the Issuer to levy an ad valorem tax on all
taxable property within its boundaries to make the
payments required under the Note without regard to any
maximum mill levy limitation established by statute.
3. In the event that Bonds of any maturity are
optionally redeemed prior to maturity or purchased and
cancelled by the Authority prior to maturity as provided
in the Indenture, a portion of the corresponding
installment of principal and interest due under this Note
shall be deemed to be prepaid according to its
Proportionate Share.
4. Notwithstanding any other provision of the
Agreement, any Participant may on any date secure the
payment of its unpaid obligations under this Note, its
Gross Debt Service Premium and Supplemental Debt Service
Premium by deposit on any date to an irrevocable escrow
account with the Trustee as an escrow agent, cash or
Government Obligations which are authorized by law to be
so deposited and which are not subject to redemption at
the option of the issuer thereof, bearing interest payable
at such times and at such rates and maturing on such dates
as shall be required, without reinvestment, to provide
funds sufficient, in the opinion of an independent
certified public accountant, net of any amounts which may
be required to satisfy the Rebate Requirement, sufficient
to pay, with respect to the Participant, 110% of the
unpaid principal of the Note, plus any accrued interest
thereon to the next date on which Bonds may be redeemed.
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IT IS CERTIFIED, RECITED, COVENANTED AND AGREED
that all conditions, acts and things required by the
Constitution and laws of the State of Montana to be done,
to exist, to happen and to be performed precedent to and
in the issuance of this Note, in order to make it a valid
and binding general obligation of the Issuer in accordance
with its terms, have been done, do exist, have happened
and have been performed in regular and due time, form and
manner so required, that an annual ad valorem tax will be
levied on all taxable property within the jurisdiction of
the Issuer sufficient to pay the principal of and interest
hereon when due; and that the issuance of this Note does
not cause the indebtedness of the City of Bozeman to
exceed any constitutional or statutory limitation.
IN WITNESS WHEREOF, the Issuer, by its Governing
Body, has caused this Note to be executed by the Mayor,
City Manager and City Treasurer, and attested by the Clerk
of the Commission, and has caused the seal of the City of
Bozeman to be affixed hereto and has caused this Note to
be dated as of the 15th day of August, 1986.
CITY OF BOZEMAN, MONTANA
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By ~ (,.(.ci,,-l[, V- ,)
Ju~ith A. Mathre, ~
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.. ames E. W ocki ~
City Manager
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Attest:
Sullivan
the Commission
(SEAL)
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MONTANA t1l.JNIC IPAL INSlJVtINCE AU1'HOR I TV EXHIBIT A
L I AS r L I TV COYERA6E PR06RAH BONOS
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PROJECTED DOT SERVICE SCHEOU-E FOR BOZEMAN
INITIAL. RELATIVE NOTE 09L.tSAT1ONI 1. 44123X
PR I Nt: I PAL N1B.lNT I M66,:sos.97
PAVt1ENT ANNUAL. ANf&JAL.
DATE PRINCIPAL RATeS INTEREST tOtAL
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28-AuO-86 ~,q79. T3 30,979.73
1~Jul"'87 3~.293.36 ~,293.36
tS-Jul-as 13,777.38 6.000~ 3tS,291.3b 49,070.74
t=S-Jl,tl-89 14,522.10 l2.250X 34,466.12 48,988.82
15-Jul-90 U5,b39.18 b..f500X 33,s:59. ~ 49.1~8. 27
15-Jul-91 16..383.Cll 6.700X 32.:542..t54 4B, 926. 4~
15-Jul-92 17,500.99 6.~1X 31,444.92 48,94S.Bl
15-Jut-93 19,4.18.08 7.100X 30..237.25 48,m55.33
1l5-Jul-94 20,1071052 7.2501 28.9115.'S7 49,022.89
l~"'\h.a1-9'5 2t,~'b.97 1.400X 27,4~1.~7 49,054.54
1:J-Jul-96 23,086.41 7. 000 X ~t8~9.39 48.'4~.80
1S-Jul-97 24.S7S.8b 7..J.OOX 24,127..91 48,703.77
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15-Jul-9'8 2b,431.67 7.700X 22.260.14 46,091,,61
le....Jul-99 28,671.84 7.800% 20.22....44 4S,S9b.2S
15-Jul-2000 3O,~,OO 7.900% 17,9SS.~ 48,894.~
1 O-Jul",200 1 33,140.17 7.1fOOX 1~,~4b.47 48,086.6-4
le-Jul-2002 3S.74b.70 8..00GX 12,928.40 48,675.10
1~-Jul-2003 38.72'O.bO S.OOO" lO,~..b6 48.794.26
1~-Jul-ZOO4 41,704.49 8.0001 b,910.61 48,on5.. 10
15-Jul-2005 45,428.10 S.OOOx - 3,634..2~
49y042..3-5
TOTILS 466.~.'17 47.,79a.12 9%.367. fYif
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l'I~EI Y E I) A~'~;- 9 .lIS3
Montana Municipa/,/Asurance Authority ",.,.
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MEMORANDUM
DATE: AUGUST 5, 1993
TO: LIABILITY RISK RETENTION PROGRAM
FROM:
RE: LIABILITY PROGRAM NOTES
AS YOU ARE AWARE, THE MMIA RECENTLY COMPLETED THE PARTIAL
REFUNDING OF ITS SERIES 1986 LIABILITY PROGRAM BONDS. AS PART OF
THIS PROCESS EACH LIABILITY PROGRAM MEMBER ENTITY WAS SIGNATORY TO
A REVISED NOTE FOR IT'S PROPORTIONATE SHARE OF THE SERIES 1993
LIABILITY PROGRAM REFUNDING BONDS AND THE REMAINING SERIES 1986
LIABILITY PROGRAM BONDS.
THE NEW NOTES HAVE BEEN TURNED OVER TO FIRST TRUST OF MONTANA,
THE ESCROW AGENT FOR THE MMIA LIABILITY BONDS. IN TURN, FIRST
TRUST RETURNED TO THE MMIA THE "ORIGINAL NOTES" FOR EACH
PARTICIPANT.
THESE NOTES HAVE BEEN MARKED CANCELED AND ARE BEING RETURNED
TO THE GOVERNMENTAL ENTITY NAMED ON THE NOTE. WE WOULD SUGGEST
THAT THIS DOCUMENT BE PLACE IN SAFE KEEPING AS EVIDENCE FOR YOUR
AUDITORS OF THE CHANGE BROUGHT ABOUT BY OUR REFUNDING OF A PORTION
OF THE ORIGINAL LIABILITY PROGRAM BONDS.
IF YOU HAVE ANY QUESTIONS PLEASE CALL ME AT 1-800-635-3089
MAIN OFFICE: P,O, Box 1704, Helena, Montana 59624 (406) 442.8768
PROGRAMS ADMINISTRATOR: P.O. Box 785, Helena, Montana, 59624 (406) 443-0907 In MT: 1.800.635.3089