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HomeMy WebLinkAboutResolution 2707 Authorizing MCAP: 7-18-88 ., jJJ 't . CERTIFICATION OF MINUTES RELATING TO RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF TAX AND REVENUE ANTICIPATION NOTE, SERIES 1988 TO BOARD OF INVESTMENTS OF THE STATE OF MONTANA, FIXING THE FORM AND TERMS THEREOF AND AUTHORIZING THE EXECUTION AND DELIVERY OF DOCUMENTS RELATED THERETO Local Government: City of Bozeman Kind, date, time and place of meeting: A City Commission meeting held July 18 , 1988, at 2:00 p.m., at ci ty Hall . Members present: Mayor Stiff, Commissioner Hawks, Commissioner Vant Hull, Commissioner Martel, Commissioner Goehrung Members absent: None Documents attached: Minutes of said meeting (pages): RESOLUTION NO. 2707 RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF TAX AND REVENUE ANTICIPATION NOTE, SERIES 1988 . TO BOARD OF INVESTMENTS OF THE STATE OF MONTANA, FIXING THE FORM AND TERMS THEREOF AND AUTHORIZING THE EXECUTION AND DELIVERY OF DOCUMENTS RELATED THERETO I, the undersigned, being the duly qualified and acting recording officer of the public body issuing the obligations referred to in the title of this certificate, certify that the documents attached hereto, as described above, have been carefully compared with the original records of public body in my legal custody, from which they have been transcribed; that said documents are a correct and complete transcript of the minutes of a meeting of the governing body of said corporation, and correct and complete copies of all resolutions and other actions taken and of all documents approved by the governing body at said meeting, so far as they relate to said obligations; and that said meeting was duly held by the governing body at the time and place and was attended throughout by the members indicated above, pursuant to call and notice of such meeting given as required by law. WITNESS my hand officially as such recording officer this 18th day of July , 1988. ~ /~ . (SEAL) .\ .,. .~ Member Hawks introduced the following . resolution and moved its adoption: RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF $ TAX AND REVENUE ANTICIPATION NOTE TO BOARD OF INVESTMENTS OF THE STATE OF MONTANA, FIXING THE FORM AND TERMS THEREOF AND AUTHORIZING THE EXECUTION AND DELIVERY OF DOCUMENTS RELATED THERETO BE IT RESOLVED BY THE GOVERNING BODY OF City of Bozeman (the "Local Government") AS FOLLOWS: WHEREAS, the city of Bozeman , Montana is authorized pursuant to Title 7, Chapter 6, Part 11, Montana Code Annotated (the Local Government Act) to issue its short-term obligations in anticipation of taxes or revenues budgeted to be received and appropriated for expenditure during the fiscal year in which the obligations are issued and the proceeds of which are to be used solely for the purpose for which the taxes or revenues were appropriated and for costs and expenses incident thereto ("Tax and Revenue Anticipation Note or . Notes"); and WHEREAS, The Board of Investments of the State of Montana (the "Board") is authorized pursuant to Title 17, Chapter 5, Part 16, Montana Code Annotated (the "Board Act") to purchase from cities, towns, counties, consolidated city-counties and school districts (Local Governments) notes, including Tax and Revenue Anticipation Notes in order to reduce the costs of public borrowing; and WHEREAS, to accomplish the purposes set forth above, the Board has developed its Cash Anticipation Financing Program (the "Program") whereby participating Local Governments, by simultaneously issuing and selling their Tax and Revenue Anticipation Notes to the Board, may alleviate cash flow difficulties and reduce the interest and issuance costs of the Local Governments below what could be achieved if the Tax and Revenue Anticipation Notes were issued separately; and WHEREAS, it is in the best interests of the Local Government to participate in the Program by the issuance of its Tax and Revenue Anticipation Note (hereafter the "Note"); and . -1- .-.-------- ._....u__._._.__________ m.. .__..______.... _. , .' T-1-, Now, Therefore, Be It Resolved, by the Governing . Body of the Local Government, as follows: ARTICLE I DETERMINATIONS AND DEFINITIONS Section 1.01. Definitions. As used in this resolution, each of the terms listed below is defined as follows: A&t shall mean Title 7, Chapter 6, Part II, Montana Code Annotated. Advance shall mean the periodic disbursements by the Trustee of the proceeds of the Notes pursuant to the terms of this Resolution and the Indenture. Authorized Representatives shall mean the officers of the Local Government designated by the Governing Body and set forth on Exhibit B hereto, to act on behalf of the Local Government by written certificate furnished to the Trustee, containing the specimen signature of such persons and signed on behalf of the Local Government by the Mayor or the City Manager, in the case of a city of town; the Chairman of Board of County Commissioners, in the case of a county; the Chief . Executive in the case of a consolidated city-county; or the Chairman of the Board of Trustees, in the case of a school district. Board shall mean the Board of Investments of the State of Montana and any successor to its functions. Board Act shall mean Section 2-15-1808, and Title 17, Chapter 5, Part 16, MCA, as amended. Bonds shall mean the Bonds issued by the Board pursuant to the Indenture to finance the Program. Capitalized Interest shall mean, with respect to each Local Government, its proportionate share of the amount initially deposited by the Trustee in the Reserve Account D, which amount shall be sufficient together with interest earnings thereon to pay all interest due or to become due on such Local Government's Notes at Maturity. Cost of Issuance shall mean costs of issuance relating to the Bonds, including, but not limited to, the Board's Program Fee and its expenses, all printing . -2- ~ ~. 1'1-, expenses in connection with the Indenture of Trust, Notes, . Note Resolutions, Underwriter's Discount, the preliminary and final Official Statement for such Bonds, and such Bonds, the legal fees and expenses of counsel to the Board, the Underwriters and Bond Counsel, any accounting expenses incurred in connection with determining that such Bonds are not arbitrage Bonds, and the Trustee's initial fee for such Bonds. Governino Bodv shall mean in the case of a city or town, the city or town councilor commission; in the case of a county, the board of county commissioners; in the case of a school district, the board of trustees; and in the case of a consolidated city-county, the commissioners; Indenture shall mean the Indenture of Trust dated August 9, 1988 between the Board and the Trustee pursuant to which the Bonds are to be issued and all supplements thereto. Investment Aoreement shall mean the agreement by and among an Investment Company, the Trustee and the Board, relating to the investment of the funds of the Program. Investment Company shall mean an open-end . diversified management investment company registered under the Investment Company Act of 1940, as amended. Investment Rate shall mean the rate of interest at which funds are invested pursuant to the Investment Agreement. ~ shall mean the loan by the Board to Reserve Account D pursuant to and in accordance with Section 3.07 of the Indenture for the purpose of restoring any deficiency therein. Local Government Account shall mean the account created for each Local Government within the Note Fund pursuant to Section 3.02 of the Indenture. Local Government Unit shall mean a city, town, county, consolidated city-county, school district or high school district organized and existing under the laws of the State of Montana and participating in the Program, the term Local Government means, unless the context indicates otherwise, the Local Government that adopts this Resolution. . -3- 1 ~. r :,-, Maturitv Date shall mean the maturity date of the . Note. ~ shall mean the tax and revenue anticipation notes issued by the Local Government in anticipation of taxes and revenues budgeted to be received and appropriated for expenditure during the fiscal year ending June 30, 1989, in the form set forth in Section 3.06 hereof. Note Resolution shall mean this Resolution. Proaram shall mean the Board's Municipal Finance Consolidation Act Cash Anticipation Financing Program. Reserve Account D shall mean the account established in Section 3.02 of the Indenture. Trustee shall mean First Trust Company of Montana and its successors. Capitalized terms used but not defined herein shall have the meanings assigned them by the Indenture. Section 1. 02. Exhibits. The following are exhibits to and a part of this Resolution: . Exhibit A: Maximum Anticipated Cumulative Cash Flow Deficit Exhibit B: Certificate of Authorized Representatives ARTICLE II. RECITALS AND AUTHORIZATION 2.01. Authoritv. Notes are authorized to be issued pursuant to the Act in anticipation of taxes and revenues budgeted to be received and appropriated for expenditure during the fiscal year ending June 30, 1989 and the proceeds of such Notes are to be expended solely for the purposes for which the taxes or revenues were appropriated and for costs and expenses incident to the issuance and sale of such Notes. 2.02. Sale of Note. Pursuant to the Indenture and the Board Act, the Board has agreed to issue and sell the Bonds and deposit a part of proceeds thereof to the Account of the Local Government to be held by the Trustee. The . -4- - - ___....__n.___ ___...__.._.. .n__ ~. . . Board has agreed to purchase the Note from the Local . Government at its principal amount and upon the further terms and conditions herein set forth. Pursuant to the Act and as hereinafter provided, the Note in the principal amount determined as provided in Section 3.01 hereof shall be sold to the Board upon the terms set forth herein. ARTICLE III. THE NOTE 3.01. Authorization of Note. Subject to the conditions of Section 3.02 hereof, there is hereby authorized to be issued and sold to the Board the Note of the Local Government in the aggregate principal amount not to exceed the sum of (i) the Maximum Anticipated Cumulative Cash Flow Deficit of the Local Government as shown in Exhibit A, less investment earnings which are anticipated to accrue in the Local Government's Account pending Advances, (ii) an amount equal to the Capitalized Interest, and (iii) the Local Government's proportionate share of the Costs of Issuance, rounded down to the nearest $1,000 or $5,000, as appropriate (the Series 1988 Note), all as approved by the Authorized Representatives. If the initial interest rate on the Note exceeds 7.5% and the Costs of Issuance to be paid by the Local Government exceeds 3.5% of the Maximum . Anticipated Cumulative Cash Flow Deficit shown on Exhibit A hereto, the issuance of such Note shall not be authorized. The Board shall notify the Local Government of the precise principal amount of the Note and the interest rate thereon upon the sale of the Bonds as provided in Section 3.02 hereof. The Authorized Representatives are hereby directed to prepare the Note in the designated principal amount and at the designated interest rate and to execute, certify and return the executed Note to the Board. 3.02. Terms of the Note. The Note shall be in the aggregate principal amount determined as provided in Section 3.01 hereof, shall be numbered R-1, shall be dated as of the date of delivery to the Trustee, shall mature on September 10, 1989 (the Maturity Date) and, and shall bear interest at an initial rate designated by the Board, which rate shall not exceed 7.5% per annum. Under the Note, the Local Government shall deposit on June 30, 1989, an amount which if deposited by the Local Government on June 30 and invested at the Investment Rate from July 1, 1989 to the expiration of the Investment Agreement would be sufficient to pay the principal of such Note on the Maturity Date, adjusted by subtracting therefrom (i) the amount on deposit . -5- -------... .' .t . \,1 in the corresponding Local Government Account on the Date of . Calculation (June 15, 1989), and (ii) the Local Government's pro rata share of investment earnings earned pursuant to the Investment Agreement on the amount in (i) which is scheduled to accrue to such Local Government Account from the Date of Calculation to June 30, 1989. If the Net Amount is not deposited on June 30, 1989, the Local Government shall be required to deposit an additional daily amount (the "Additional Daily Amount"). The Additional Daily Amount shall be equal to one day's interest on the Net Amount at the Investment Rate. From and after the Maturity Date until paid, the Note shall bear interest at a rate equal to the yield (coupon equivalent) as of the date of paYment on United States of America 52 Week Treasury Bills, as reported in the Wall Street Journal on the day preceding the Maturity Date, plus two percent (2\) per annum. In order to provide for the security and marketability of the Bonds, the Local Government shall credit and deposit in its Local Government Account its Net Amount due under the Note under Section 4.03 of the Indenture and as provided in Section 3.03 hereof on or before June 30, 1989; provided, howeve r , that such credit and deposit shall not relieve the Local Government of its obligation to pay principal of, and interest on its Note on the Maturity Date. The principal amount of the Note shall be reduced if and to the extent necessary to obtain an approving legal opinion of bond counsel as to the legality thereof and the tax exempt status of interest thereon and if . and to the extent necessary to comply with Section 148(f)(4)(B)(iii) or Section 148(f)(4)(C) of the Internal Revenue Code of 1986. 3.03. Repayment of Note. The Trustee shall calculate the amounts due and payable by each Local Government with respect to the Note issued by such Local Government. The Local Government agrees to repay its Note in accordance with the calculations as set forth in the provisions of this Section 3.03. (A) Calculation of the Net Amount. On or before June 15, 1989 (the Date of Calculation) the Trustee shall calculate the amount (the "Net Amount") to be deposited by each Local Government on June 30, 1989 with respect to the Note issued by such Local Government. The Net Amount shall be an amount which if deposited by the Local Government on June 30 and invested at the Investment Rate from July I, 1989 to the expiration of the Investment Agreement would be sufficient to pay the principal of such Note on the Maturity Date, adjusted by subtracting therefrom (i) the . -6- ., . amount on deposit in the corresponding Local Government . Account on the Date of Calculation, and (ii) the Local Government's pro rata share of investment earnings earned pursuant to the Investment Agreement on the amount in (i) which is scheduled to accrue to such Local Government Account from the Date of Calculation to June 30, 1989. (B) Calculation of Additional Daily Amounts. On the Date of Calculation the Trustee shall calculate an additional daily amount (the "Additional Daily Amount") which would be due and payable by each Local Government with respect to its Note if the Net Amount is not deposited by the Local Government on or before June 30, 1989. The Additional Daily Amount shall be an amount equal to one day's interest on the Net Amount at the Investment Rate. (C) Notice of Net Amount. Within two Business Days of the Date of Calculation, the Trustee shall notify each Local Government that the Net Amount is to be deposited on or before June 30, 1989. The Notice shall also specify: (i) the Net Amount (determined pursuant to . Section 3.03 hereof and Section 4.03 of the Indenture); and (ii) that if the Local Government fails to pay the Net Amount to the Trustee on June 30, 1989, such Local Government will be required to pay an amount in addition to the Net Amount equal to the Additional Daily Amount for each day between June 30, 1989 and the actual date of paYment of the Net Amount by the Local Government. (D) If the principal of and interest on the Note is not paid at Maturity, the Note shall bear interest until paid at a rate equal to the yield (coupon equivalent) as of the date of paYment on United States of America 52 Week Treasury Bills, as reported in the Wall Street Journal on the day preceding the Maturity Date, plus two percent (2\) per annum. (E) If there are surplus funds available in a Local Government Account in the Note Fund, after paYment of the Note, the principal of and interest on . -7- - ' ,. the Bonds and the repayment of loans to the Program, . as described in Section 3.09 of the Indenture, shall be paid to the Local Government. 3.04. Purpose of Note. The Note is issued in anticipation of taxes and revenues budgeted to be received and appropriated for expenditures during the fiscal year ending June 30, 1989 as set forth on Exhibit A hereto. 3.05. Amount of Note Not to Exceed. The maximum principal amount of the Note set forth in Section 3.1 hereof does not exceed the Maximum Anticipated Cumulative Cash Flow Deficit for the Local Government as computed in accordance with Section 1.103-l4(c) of the Treasury Regulations applicable under the Internal Revenue Code of 1986, as amended (the "Maximum Anticipated Cumulative Cash Flow Deficit"), less investment earnings which are anticipated to accrue in the Local Government's Account pending Advances, plus the Local Government's Capitalized Interest and the Local Government's proportionate share of Costs of Issuance. 3.06. Form of Note. The Note, the form of certification by the authenticating agent and the provisions for assignment of the Note shall be, respectively, in sUbstantially the following form (the text of which may be typewritten or printed on the face, . or on the back, or partly on the face and partly on the back): . -8- -.--------... , " Form of Note . UNITED STATES OF AMERICA STATE OF MONTANA NAME OF CITY, TOWN, COUNTY (CONSOLIDATED CITY-COUNTY) OR SCHOOL DISTRICT OR HIGH SCHOOL DISTRICT No. R-1 TAX AND REVENUE ANTICIPATION NOTE SERIES 1988 Interest Maturity Date of R.a.t..e. .J2e..t..e. Oriqinal Issue September 8, 1989 , 1988 PRINCIPAL AMOUNT: . The Local Government named above (the "Local Government"), a political subdivision of the State of Montana, acknowledges itself to be indebted and for value received promises to pay to the Board of Investments of the State of Montana, its successor or registered assigns, at the office of First Trust Company of Montana, in Billings, Montana, without option of prior paYment, the principal sum specified above, on the maturity date specified above, and to pay interest thereon from the Date of Original Issue specified above until the principal amount is paid at the interest rate specified above until the Maturity Date, interest to be due and payable on the maturity date specified above. This Note is one in number in the aggregate principal amount listed above (the "Note"), issued under the authority and in full compliance with the provisions of the Constitution and laws of the State of Montana, particularly Title 7, Chapter 6, Part 11, Montana Code Annotated (the "Act") and pursuant to a resolution duly adopted by the governing body of the Local Government (the "Resolution"). The Note is issued in anticipation of taxes and revenues budgeted to be received and appropriated for expenditures . -9- ....-...--....-- -....-- . . during the fiscal year ending June 30, 1989. This Note shall constitute a general obligation of the Local Government and the pledge made in the Resolution is for the equal benefit, protection and security of the Holder hereof. Reference is hereby made to the Resolution for a description of the obligations and duties of the Local Government. The Trustee has been provided with a certified copy of the Resolution. The Local Government shall deposit on June 30, 1989, an amount which if deposited by the Local Government on June 30 and invested at the Investment Rate from July 1, 1989 to the expiration of the Investment Agreement would be sufficient to pay the principal of such Note on the Maturity Date, adjusted by subtracting therefrom (i) the amount on deposit in the corresponding Local Government Account on the Date of Calculation (June 15, 1989), and (ii) the Local Government's pro rata share of investment earnings earned pursuant to the Investment Agreement on the amount in (i) which is scheduled to accrue to such Local Government Account from the Date of Calculation to June 30, 1989. If the Net Amount is not deposited on June 30, 1989, the Local Government shall be required to deposit an additional daily amount (the "Additional Daily Amount") for each day between June 30, 1989 and the actual date of payment of the Net Amount. The Additional Daily Amount shall be equal to one . day's interest on the Net Amount at the Investment Rate. In the event the principal of and interest on this Note is not paid on the Maturity Date, the obligations hereunder shall continue as described and shall bear interest at a rate equal to the yield (coupon equivalent) as of the day of the Loan, on United States of America 52-week Treasury Bills as reported in the Wall Street Journal on the day preceding the Maturity Date of the Note, plus two percent (2\) per annum. The principal of and interest on 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. This Note is transferable, as provided by the Resolution, only upon books of the Local Government kept at the office of the Note Registrar, by the registered owner hereof in person or by his duly authorized attorney, upon surrender of this Note for transfer at the office of the Note Registrar, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Note Registrar duly executed by, the registered owner hereof or his duly authorized attorney, and, upon paYment of any . tax, fee or other governmental charge required to be paid -10- .. _. n..__.."..______._...____ . . ;- with respect to such transfer, one or more fully registered . Notes of the series of the same principal amount and interest rate will be issued to the designated transferee or transferees. The principal and interest on the Note are payable from the proceeds of the money derived from the taxes and revenues in anticipation of which they were issued, income from investment proceeds of the Note, and any money and funds of the Local Government otherwise legally available therefore. IT IS FURTHER CERTIFIED AND RECITED that all acts, conditions and things required by the Constitution and Laws of the State of Montana to be done, to happen, and to be performed precedent to and in the issuance of the Note have been done, have happened and have been performed in regular manner as required by law; and that the issuance of this Note does not cause the indebtedness of the Local Government to exceed, any constitutional or statutory limitation of indebtedness. IN WITNESS WHEREOF, the above-referenced Local Government, by its Governing Body, has caused this Note to be executed in its behalf by the manual or facsimile signatures of its authorized officers, all as of the Date of . Original Issue specified above. By: Its Attest: (SEAL) City Mtorney . -11- ~ , . 1 ASSIGNMENT . For Value Received, the undersigned hereby sells, assigns and transfers unto (Please Print or Typewrite Name and Address of Assignee.) the within Note and all rights thereunder, and hereby irrevocably constitutes and appoints attorney to transfer the within Note on the books kept for the registration thereof, with full power of substitution in the premises. Dated: PLEASE INSERT SOCIAL SECURITY NOTICE: THE SIGNATURE TO NUMBER OR OTHER IDENTIFYING THIS ASSIGNMENT MUST . CORRESPOND WITH THE FACE AS IT APPEARS UPON THE FACE OF THIS NOTE IN EVERY PARTICULAR, WITHOUT ALTERNATION OR ANY CHANGES WHATSOEVER. Signature Guaranteed by: End of Form of Note 3.07. Preparation of Note and Assianment to Trustee. The Note shall be prepared under the direction of the Authorized Representatives of the Local Government, and when so prepared shall be executed on behalf of the Local Government by the Authorized Representative. The Local Government hereby agrees that the Board may assign all of its right, title and interest in this Resolution and the Note to the Trustee to secure its obligations under the Indenture and consents to the enforcement of such right, title and interest by the Trustee or its assigns. . -12- --------..--. .-..-.-.- .' ,,( 3.08. Reqistration. As long as the Note issued . hereunder shall remain outstanding, the Local Government shall act as Note Registrar and shall maintain and keep at its office books for the registration and transfer of such Note. Upon surrender for transfer of any Note at the office of the Note Registrar with a written instrument of transfer satisfactory to the Note Registrar, duly executed by the registered owner or his duly authorized attorney, and upon paYment of any tax, fee or other governmental charge required to be paid with respect to such transfer, the Local Government shall execute and the Note Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, one or more fully registered Note of the same series, of any authorized denomination. In all cases in which the privilege of exchanging Note or transferring fully registered Note is exercised, the Local Government shall execute and the Note Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, one or more fully registered Note of the same series, of any authorized denominations and of a like aggregate principal amount. The Note, upon surrender thereof at the office of the Note Registrar may, at the option of the registered owner thereof, be exchanged for an equal aggregate principal amount of Note of the same series of any authorized denotations. In all cases in which the privilege of exchanging Note or transferring fully registered Note is . exercised, the Local Government shall execute and the Note Registrar shall deliver Note in accordance with the provisions of this Resolution. For every such exchange or transfer of Note, the Local Government or the Note Registrar may make a charge sufficient to reimburse it for any tax, fee or other governmental charge required to be paid by the person requesting such exchange or transfer, which sum or sums shall be paid by the person requesting such exchange or transfer as a condition precedent to the exercise of the privilege of making such exchange or transfer. 3.09. Reqistered Owner. As to any Note, the Local Government and the Note Registrar and their respective successors, each in its discretion, may deem and treat the person in whose name the same for the time being shall be registered as the absolute owner thereof for all purposes and neither the Local Government nor the Note Registrar nor their respective successors shall be affected by any notice to the contrary. PaYment of or on account of the principal of any Note shall be made only to or upon the order of the registered owner thereof, but such registration may be changed as above provided. All such . -13- --........-- " '., payments shall be valid and effectual to satisfy and . discharge the liability upon such Note to the extent of the sum or sums so paid. 3.10. Use and Disbursement of the Proceeds. The pro~eeds of the Note will be expended solely for the purposes for which the taxes or revenues were appropriated and for costs and expenses incident to the issuance and sale thereof. The proceeds from the sale of the Note deposited in the Local Government's Account shall remain in the Local Government's Account pending disbursement at the request of the Local Government to pay the budgeted expenditures in anticipation of which the Note were issued. Proceeds of the Note held in the Local Government's Account shall be invested pursuant to the Indenture and shall secure the Local Government's obligations hereunder and under the Indenture. Requests for disbursement shall be made in writing to the Trustee on a form approved by the Trustee. Requests for disbursement shall be delivered to the Trustee on or before the Monday of the week preceding the week in which the Local Government wishes to receive funds (or the next following Business Day) and the Trustee shall advance the funds on the next succeeding Wednesday (or the next following Business Day). The Trustee may alter the schedule for disbursements upon notice to the Local Government, if necessary. . 3.1l. Surplus Funds. Whenever there are sufficient moneys available in the fund or funds for which the Local Government has borrowed to pay the Local Government's current month's expenses payable from such fund, plus a reasonable carryover amount not to exceed the amount designated in the Local Government's budget for disbursement and expenses during the next month, any surplus moneys shall be paid to the Trustee for deposit in the Local Government Account created in the Indenture, if and to the extent the Local Government has any outstanding Advances from such Local Government Account. Payment of surplus funds shall be made no more often than weekly on Wednesday, or if a Wednesday is not a Business, on the next succeeding Business Day, upon written notice to the Trustee delivered no later than Monday of the week in which the surplus funds are to be paid. The Trustee may alter the schedule for repayment upon notice to the Local Government, if necessary. 3.12. Security for the Note. As security for the payment of the principal and interest on the Bond and the performance of the covenants contained in this Resolution . -14- . " and the Indenture, the Local Government hereby pledges and . assigns all of its right, title and interest and grants a security interest to the Trustee for the benefit of the Registered Owners of the Bonds and the Note, in and to the proceeds of taxes and revenues budgeted to be received and appropriated for expenditure during the fiscal year ending June 30, 1989 and any other moneys available thereafter, except as limited below, and to all moneys and investments held in the corresponding Funds and Accounts created under the Indenture, and the proceeds of each of the above. The Note shall constitute a general obligation of the Local Government and the principal of and interest on the Note shall be payable from the money derived from the taxes and revenues in anticipation of which they were issued, income from investment of the proceeds of the Note, and any money and funds of the Local Government otherwise legally available therefor. The Local Government shall enforce its rights to receive and collect all such taxes and revenues to insure the prompt paYment of the Local Government obligations hereunder. If a Local Government has not paid the Net Amount and any other additional amounts due thereunder as specified in Section 4.03 of the Indenture by June 15, 1989, the Local Government covenants to budget, appropriate and levy taxes in the fiscal year beginning July I, 1989 in an amount sufficient when combined with other moneys available therefor to repay the principal of . and interest on the Note by December 1, 1989. ARTICLE IV. MISCELLANEOUS 4.0l. Compliance with Applicable Law. The Local Government hereby covenants and represents that in preparation of its budget for the 1988-89 fiscal year and in the preparation of information used to determine the Local Government's Maximum Anticipated Cumulative Cash Flow Deficit, it has complied with the laws set forth in Montana Code Annotated with respect to the preparation of its budget and the management of its fiscal affairs. 4.02. Proceedinas. The officers of the Local Government are hereby authorized and directed to prepare and furnish to the Trustee and the purchasers of the Certificates, certified copies of all proceedings and records of the Local Government relating to the power and authority of the Local Government to issue its Note and to execute and deliver the Indenture of Trust, the Investment Agreement, and certificates as to matters within their knowledge or as shown by the books and records under their . -15- .........-.....-.......-- .-..-....-.---.--...---..."'''. .- t ., custody and control, including a general and non-litigation . certificate, and such certified copies and certificates shall be deemed representations of the Local Government as to the facts stated therein. 4.03. Certification of Resolution. The Authorized Representative is hereby authorized and directed to certify a copy of this Resolution and to obtain a certificate as to registration of the Note. 4.04. ReDort. The officers of the Local Government are hereby authorized and directed to prepare and submit to the Secretary of the Treasury a statement meeting the information reporting requirements of Section 149(e) of the Code by the 15th day of the second calendar month after the close of the calendar quarter in which the Note are issued. 4.05. (A) Arbitraae. The Note is not authorized or issued, and it is not reasonably expected that the proceeds thereof will be used, in a manner that would cause it to be an "arbitrage bond" within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended, and the regulations thereunder. They will not be outstanding after a period ending 13 months after the date of issue, or for a period ending 60 days after the last date for payment without interest or . penalty of the last installment of the tax anticipated thereby. The "cumulative cash flow deficit" of the Local Government during the present fiscal year, as defined in Section l.103-l4(c)(2) of said regulations, is estimated as shown on Exhibit A hereto. The forecasts do not reflect the receipt of proceeds of or the payment of principal and interest on the Note. The additions and deductions other than revenues and expenditures reflect inter-fund loans and cash receipts and disbursements related to revenues and expenditures accrued in the prior year. Except as set forth in such forecasts, it is not estimated that there will be any funds of the Local Government, which will be available for the payment of the above expenditures without a legislative, judicial or contractual requirement that such funds be reimbursed. The "maximum estimated cumulative cash flow deficit" during the period for which the Note will be outstanding is as shown on Exhibit A hereto. (B) Arbitraae Rebate. The Governing Body finds that either (a) the exception for small governmental . -16- .. . ;. units available under Section l48(f)(4)(C) of the Code is . applicable to the Note because (i) the Local Government has general taxing powers, (ii) the Note is not a private activity bond under Section l41(a) of the Code, (iii) ninety-five percent or more of the net proceeds of the Note are to be used for local governmental activities of the Local Government and (iv) the aggregate face amount of all tax-exempt bonds (other than private activity bonds) which will be issued by the Local Government during the current calendar year is not reasonably expected to exceed $5,000,000. ~ .,' " :'.,......"".. BY:~ I k '1fY T"tl ' 4L__~ / 1 e: / Attest: By: (9~ J J~ Ti tIe: Clerk of Commission Member Vant Hull seconded the motion and I the following members voted in favor of thereof: ~ . Commissioner Hawks, Commissioner Vant Hull, Commissioner Martel, Commissioner Goehrung and Mayor Stiff the following members voted against the same: None Absent: None . -17- ~. i . " .. . Exhibit B Certificate of Authorized Representative The following officers of the city of Bozeman (Name of Local Government) are authorized to act on behalf of the Local Government with respect to the issuance, sale, disbursement, and repayment of its Tax and Revenue Anticipation Note - Series 198B. Name Title ~=C,W~ James E. Wysocki city Manager Miral D. Gamradt Admin. Services Dir. (.i1:;~ Robin L. Sullivan Clerk of Commission Dated this 18th day of July , 1988 . . BY~/~~ (To be signed by the Mayor or City Manager in the case of a City, the Chairman of the Board of County Commissioners, in the case of a County, the Chief Executive in the case of a City-County, or the Chairman of the Board of Trustees in the case of a School District.) . -18-