HomeMy WebLinkAboutResolution 2667 Creating sidewalk '87 fund: 8-11-87 REPLACED by 2669
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CERTIFICATE OF MINUTES RELATING TO
$95,500 SPECIAL SIDEWALK, CURB, GUTTER AND
ALLEY APPROACH BONDS, SERIES 1987
Issuer: City of Bozeman, Montana
Governing body: City Commission
Kind, date, time and place of meeting: a regular meeting,
held August~, 1987, at 2:00 o'clock 2.m., at the City
Commission chambers, City Hall, Bozeman, Montana
Members present: Mayor Mathre, Commissioner Stiff, Com-
missioner Jordan, Commissioner Martel and Commissioner
Vant Hull
Members absent: None
Documents attached:
Minutes of said meeting (pages): ___ through ___,
including:
RESOLUTION NO. 2667
RESOLUTION RELATING TO $95,500 SPECIAL
SIDEWALK, CURB, GUTTER AND ALLEY APPROACH
BONDS, SERIES 1987; CREATING SPECIAL
SIDEWALK, CURB, GUTTER AND ALLEY APPROACH
FUND AND PRESCRIBING COVENANTS OF THE CITY
FOR THE SECURITY OF THE HOLDERS OF THE BONDS
I, the undersigned, being the duly qualified and
acting recording officer of the public corporation 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 the corporation in my legal custody,
from which they have been transcribed; that the documents
are a correct and complete transcript of the minutes of a
meeting of the governing body of the corporation, and
correct and complete copies of all resolutions and other
actions taken and of all documents approved by the
governing body at the meeting, insofar as they relate to
the obligations; and that the 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 given as required by law.
WITNESS my hand officially as such recording
officer and the seal of the City this 11th day of August,
1987. GJ J Jd. ..
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(SEAL) Clerk of the Commission
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Commission Member
introduced the following
resolution and moved its adoption:
RESOLUTION NO. 2~fi7
RESOLUTION RELATING TO $95,500 SPECIAL
SIDEWALK, CURB,
GUTTER AND ALLEY APPROACH
BONDS, SERIES 1987;
CREATING SPECIAL SIDEWALK,
CURB, GUTTER AND ALLEY APPROACH FUND AND
PRESCRIBING COVENANTS OF THE CITY FOR THE
SECURITY OF THE HOLDERS OF THE BONDS
BE IT RESOLVED by the City Commission of the City
of
Bozeman, Montana (the City), as follows:
Section 1.
Recitals. It is hereby found, determined
and declared as follows:
1.01. Sale of
Special Sidewalk. Curb. Gutter and
Allev Approach Bonds. This Commission authorized,
by
resolution adopted June 1, 1987, the issuance
and public sale
of special sidewalk, curb, gutter and alley approach
bonds of
the City in the aggregate principal amount of $95,500 (the
Bonds) for the purpose of financing the construction of certain
sidewalks, curbs, gutter and alley approaches heretofore
ordered by this Commission (the Improvements). After a public
sale noticed and conducted in accordance with applicable
statutory provisions, the Bonds were sold to James E.
and Anne
W. Banks, of Bozeman, Montana (the Original
Purchaser) at a
purchase price of $95,500 with the Bonds bearing interest at
the rates provided in Section 2, resulting in a net expected
rate of 6.98% per annum.
1.02. Compliance with Constitution and Statutes.
All
acts, conditions and things required by the Constitution and
laws of the State of Montana, including Montana Code Annotated,
Title 7, Chapter 14, Part 41,
and Title 7, Chapter 12, Parts 41
and 42, as amended, in order to make the Bonds valid and
binding special obligations in accordance with their terms and
in accordance with the terms of this resolution have been done,
do exist, have happened and have been performed in regular and
due form, time and manner as required.
Section 2.
$95.500 Special Sidewalk. Curb. Gutter and
Allev Ap~roach Bonds.
2.0l. Principal
Amount. Maturities. Date.
Denominations and Interest Rate. For the purpose of paying the
costs and expenses incurred in the construction of the
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Improvements and in anticipation of the collection of special
assessments to be levied therefor, and in accordance with the
public offering and contract of sale described in Section 1.01,
the City shall forthwith issue and deliver to the Purchaser its
Special Sidewalk, Curb, Gutter and Alley Approach Bonds in the
aggregate principal amount of $95,500, payable solely from the
1987 Special Sidewalk, Curb, Gutter and Alley Approach Fund of
the City (the Sidewalk Fund). The Bonds shall bear an original
issue date and be registered as of August 1, 1987, and shall be
issued in the form of fully registered bonds of single
maturities in denominations of $5,000 or any integral multiple
thereof, except that the Bond representing principal
installment number 1 shall be in the denomination of $5,500.
The Bonds shall mature on July 1 in the years and
amounts set forth below, subject to prior redemption, and shall
bear interest from the date of original registration to their
respective maturities or prior dates upon which they have been
duly called for redemption at the rates per annum set forth
opposite such years and amounts, respectively:
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1988 $15,500 6.25%
1989 15,000 6.45
1990 20,000 6.75
1991 20,000 7.00
1992 25,000 7.30
Each of the Bonds shall represent one or more principal
installments of the issue of the same maturity. Principal
installments of the issue are numbered from 1 through 19,
each in the amount of $5,000. Principal of and interest
on the Bonds are payable in lawful money of the United
States of America. Upon the original delivery of the
Bonds or upon transfer or exchange of Bonds, the Registrar
(as hereinafter defined) shall date each Bond so delivered
as of the date of its authentication.
2.02. Method of Pavrnent. The Bonds shall be issuable
only in fully registered form, and the ownership of the
Bonds shall be transferred only upon the bond register of
the City hereinafter described. The interest on, and upon
presentation and surrender thereof at the principal office
of the Registrar described herein, the principal amount of
each Bond at the principal office of the Registrar
described herein, the amount payable with respect thereto,
shall be payable by check or draft issued by the Registrar.
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2.03. Interest Payment Dates. Interest on the Bonds
shall be payable semiannually on each January 1, and
July 1, commencing January 1, 1988,
to the owners of
record thereof as such appear in the bond register as of
the close of business on the fifteenth day of the
immediately preceding month, whether or not such day is a
business day.
2.04. Reqistration. The City hereby appoints the
Director of Finance of the City to act as bond registrar,
transfer agent and paying agent (the Registrar).
The City
reserves the right to appoint a bank, trust company or
fiscal company as successor bond registrar, transfer agent
or paying agent, as authorized by the Model Public
Obligations Registration Act of Montana (the Act),
but the
City agrees to pay the reasonable and customary charges of
the Registrar for the services performed. This Section
2.05 shall establish a system of registration for the
Bonds as defined by the Act.
The effect of registration and the rights and duties
of the City and the Registrar with respect thereto shall be as
follows:
(a) Bond Reqister. The Registrar shall keep
at its
principal office a bond register in which the Registrar
shall provide for the registration of ownership of Bonds
and the registration of transfers and exchanges of Bonds
and Certificates entitled to be registered, transferred or
exchanged.
(b) Transfer. Upon surrender for transfer
of any
Bond duly endorsed by the registered owner thereof or
accompanied by a written instrument of transfer, in form
satisfactory to the Registrar, duly executed by the
registered owner thereof or by an attorney duly authorized
by the registered owner in writing, the Registrar shall
authenticate and deliver, in the name of the designated
transferee or transferees, one or more new Bonds of a like
aggregate principal amount and maturity, as requested by
the transferor. The Registrar may, however,
close the
books for registration of the transfer of any Bond or
principal installment thereof to be selected or called for
redemption. No transfer or exchange of a Bond shall affect
its order of registration for purposes of redemption
pursuant to Section 2.05.
(c) Exchanqe of Bonds. Whenever any
Bond is
surrendered by the registered owner for exchange, the
Registrar shall authenticate and deliver one or more new
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Bonds of a like aggregate principal amount and maturity, as
requested by the registered owner or the owner's attorney
duly authorized in writing.
(d) Cancellation. All Bonds surrendered
upon any
transfer or exchange shall be promptly cancelled by the
Registrar and thereafter disposed of as directed by the
City.
(e) Improper or Unauthorized Transfer.
When any Bond
is presented to the Registrar for transfer, the Registrar
may refuse to transfer the same until it is satisfied that
the endorsement on such Bond or separate instrument of
transfer is valid and genuine and that the requested
transfer is legally authorized. The Registrar shall incur
no liability for the refusal, in good faith, to make
transfers which it, in its judgment, deems
improper or
unauthorized.
(f) Persons Deemed Owners. The City
and the
Registrar may treat the person in whose name any Bond is at
any time registered in the bond register as the absolute
owner of such Bond, whether such Bond shall be overdue or
not, for the purpose of receiving payment of, or on account
of, the principal of and interest on such Bond and for all
other purposes, and all such payments so made to any such
registered owner or upon the owner's order shall be valid
and effectual to satisfy and discharge the liability upon
such Bond to the extent of the sum or sums so paid.
(g) Taxes. Fees and Charoes.
For every transfer of
Bonds or exchange of Bonds (except for an exchange upon the
partial redemption of any Bond pursuant to Section 2.06),
the Registrar may impose a charge upon the owner thereof
sufficient to reimburse the Registrar for any tax, fee or
other governmental charge required to be paid with respect
to such transfer or exchange.
(h) Mutilated. Lost.
Stolen or Destroved Bonds. In
case any Bond shall become mutilated or be destroyed,
stolen or lost, the Registrar shall deliver a new Bond of
like amount, number, maturity date and tenor in exchange
and substitution for and upon cancellation of any such
mutilated Bond or in lieu of and in substitution for any
such Bond destroyed, stolen or lost, upon the
payment of
the reasonable expenses and charges of the Registrar in
connection therewith; and, in the case of a Bond destroyed,
stolen or lost, upon filing with the Registrar of evidence
satisfactory to it that such Bond was destroyed, stolen or
lost, and of the ownership thereof, and upon furnishing
to
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the Registrar an appropriate bond or indemnity in form,
substance and amount satisfactory to it, in which both the
City and the Registrar shall be named as obligees. All
Bonds so surrendered to the Registrar shall be cancelled by
it and evidence of such cancellation shall be given to the
City. If the mutilated, destroyed, stolen or lost
Bond has
already matured or such Bond has been called for redemption
in accordance with its terms, it shall not be necessary to
issue a new Bond prior to paYment.
2.05. Redemption. Whenever there will be any balance
in the Sidewalk Fund after paYment of the principal and
interest due on all Bonds drawn against it, either from the
prepaYment of special assessments levied with respect to the
Improvements or from the transfer of surplus moneys from the
Construction Account to the Principal Account as provided in
Section 3.02, the Director of Finance shall call for redemption
on any interest payment date outstanding Bonds or principal
installments thereof in an amount which, together with the
interest thereon to the date of redemption, will equal (as
closely as the amount of the principal installment will permit)
the amount of the Sidewalk Fund on the interest paYment date.
The Bonds are subject to redemption at the option of the City
from other sources of funds available therefor on any interest
payment date; provided, however, that the Bonds
shall not be
called for redemption from the proceeds of refunding bonds
before January I, 1992. For purposes of redemption,
the order
of registration of the Bonds shall correspond to the order of
the numbers of the principal installments represented by the
Bonds. Bonds representing more than one principal installment
may be redeemed in part, in one or more whole principal
installments, and upon such partial redemption, a new Bond or
Bonds will be delivered to the registered owner without charge,
representing the remaining principal installments outstanding.
Bonds shall be redeemed in the order of the principal
installments they represent, at a redemption price equal to the
principal installment or installments of the Bonds to be
redeemed plus interest accrued thereon to the date of
redemption. The date of redemption shall be fixed by the
Director of Finance, who shall give notice, by first class
mail, postage prepaid, to the owner or owners of such Bonds at
their addresses appearing in the bond register, of the numbers
of the principal installments and Bonds to be redeemed and the
date on which paYment will be made, which date shall be not
less than ten days after the date of mailing notice. The
Director of Finance shall at the same time mail notice of the
redemption to the Original Purchaser. On the date so fixed
interest on the Bonds or principal installments thereof to be
redeemed shall cease to occur.
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2.06. Execution. Reaistration and Deliverv of Bonds.
The Bonds shall be prepared under the direction of the Clerk of
the Commission and shall be executed on behalf of the City by
the signatures of the Mayor and the Clerk of the Commission and
sealed with the official seal of the City; provided that the
seal and all signatures may be printed, engraved or
lithographed facsimiles of the originals. In case any officer
whose signature or a facsimile of whose signature shall appear
on the Bonds shall cease to be such officer before the delivery
of any Bond, such signature or facsimile shall nevertheless be
valid and sufficient for all purposes, the same as if he had
remained in office until delivery. Notwithstanding such
execution, no Bond shall be valid or obligatory for any purpose
or entitled to any security or benefit under this resolution
unless and until a certificate of authentication and
registration on such Bond has been duly executed by the manual
signature of an authorized representative of the Registrar.
Certificates of authentication and registration on different
Bonds need not be signed by the same representative. The
executed certificate of authentication and registration on each
Bond shall be conclusive evidence that it has been
authenticated and delivered under this Resolution. The Bonds
shall be registered in order of their serial numbers by the
Director of Finance as of August 1, 1987,
and the Bonds shall
be delivered by the Registrar to the Original Purchaser upon
payment of $9J,000 for the principal of the Bonds plus accrued
interest from the registration date to the date of such
delivery and paYment. The Original Purchaser shall not be
obligated to see to the application of the purchase price, but
from the proceeds of the Bonds the Director of Finance shall
credit forthwith $ 4.775 to the Special Improvement District
Revolving Fund of the City, and the balance of such proceeds to
the Construction Account in the Sidewalk Fund to be used solely
for the payment of the cost and expenses necessarily incurred
in the construction of the Improvements, except that the
accrued interest received shall be deposited in the Interest
Account in the Sidewalk Fund and applied in paYment of interest
on the Bonds when due.
2.07. Form of Bonds. The Bonds shall be prepared in
substantially the form set forth in Montana Code Annotated,
Section 7-12-4202, as more fully set forth in Exhibit A hereto
and by this reference made a part hereof.
Section 3. Special Sidewalk. Curb.
Gutter and Allev
Approach Fund.
3.01. Sidewalk Fund. The Sidewalk Fund is hereby
created and designated as the "Special Sidewalk, Curb,
Gutter
and Alley Approach Fund." The Sidewalk Fund shall be
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maintained as a separate bookkeeping account by the Director of
Finance on the books and records of the City. Within the
Sidewalk Fund there shall be maintained separate accounts,
designated as the "Construction Account," the "Principal
Account" and the "Interest Account," respectively.
3.02. Construction Account.
There shall be credited
to the Construction Account of the Sidewalk Fund the proceeds
of the sale of the Bonds, less any interest accrued thereon to
the date of delivery to the Purchaser and less $ 4,775.
which amount shall be deposited in the Special Improvement
District Revolving Fund. All costs and expenses of
constructing the Improvements to be paid from proceeds of the
Bonds shall be paid from time to time as incurred and allowed
from the Construction Account in accordance with the provisions
of applicable law, and moneys in such Construction Account
shall be used for no other purpose; provided that after all
claims and expenses with respect to the Improvements have been
fUlly paid and satisfied, any moneys remaining in the
Construction Account shall be transferred to the Principal
Account in the Sidewalk Fund and applied to the redemption of
Bonds.
3.03. Principal Account and Interest Account.
Moneys
in the Principal Account and the Interest Account shall be used
only for paYment of the principal of and interest on the Bonds
as such paYments become due, or to prepay and redeem Bonds.
Upon the collection of the installment of principal and
interest due on November 30 and May 31 of each year on the
special assessments to be levied with respect to the
Improvements, the Director of Finance shall credit to the
Interest Account in the Sidewalk Fund so much of said special
assessments as is collected as interest paYment, and credit the
balance of such assessments to the Principal Account. Any
installment of any special assessment paid prior to its due
date with interest accrued thereon to the nearest bond call
date shall be credited with respect to principal and interest
payments in the same manner as other assessments are credited
to the Sidewalk Fund. All moneys in the Interest Account and
the Principal Account shall be used first to pay interest due,
and any remaining moneys shall be used to pay Bonds then due
and, if moneys are available, to redeem Bonds or principal
installments thereof in accordance with Section 2.05; provided
that any money transferred to the Principal Account from the
Construction Account pursuant to Section 3.02 or any prepaid
special assessments shall be applied to redeem Bonds or
principal installments thereof to the extent possible on the
next interest paYment date for which notice of redemption may
properly be given pursuant to Section 2.05. Redemption of
Bonds from the Principal Account shall be in order of the
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principal installments they represent as provided in Section
2.05, and interest shall be paid from the Interest Account as
accrued thereon to the date of redemption, in accordance with
the provisions of Montana Code Annotated, Sections 7-12-.
3.04. Loans From Revolvina Fund.
The Commission
shall annually or more often if necessary issue an order
authorizing a loan or advance from the Special Improvement
District Revolving Fund to the Sidewalk Fund in an amount
sufficient to make good any deficiency then existing in the
Interest Account in the Sidewalk Fund, and shall issue an order
authorizing a loan or advance from the Revolving Fund to the
Sidewalk Fund in an amount sufficient to make good any
deficiency then existing in the Bond Account of the Sidewalk
Fund, to the extent that moneys are available in the Revolving
Fund. Pursuant to Ordinance No. 612 and in connection with the
public offering of the Bonds, the City has undertaken and
agreed to provide funds for the Revolving Fund by levying such
tax or making such loan from the General Fund as authorized by
Montana Code Annotated, Section 7-12-4222.
In the event that
the balance on hand in the Revolving Fund fifteen days prior to
any date when interest is due on special improvement district
bonds and sidewalk, curb, gutter and alley approach warrants of
the City is not sufficient to make good all deficiencies then
existing in the improvement district fund or sidewalk, curb,
gutter and alley approach fund for which the City has promised
to make loans from the Revolving Fund, the balance on hand in
the Revolving Fund shall be allocated to the funds in which
such deficiencies then exist in proportion to the amounts of
the deficiencies on the respective dates of receipt of such
money, until all interest accrued on such special improvement
district bonds and sidewalk, curb, gutter
and alley approach
warrants of the City has been paid. On any date when all
accrued interest on special improvement district bonds and
sidewalk, curb, gutter and alley approach warrants of the City
payable from funds for which the City has promised to make
loans from the Revolving Fund has been paid, any balance
remaining in the Revolving Fund shall be loaned or advanced to
the improvement district fund or sidewalk, curb,
gutter and
alley approach fund for payment and redemption of bonds or
warrants to the extent the improvement district fund or
sidewalk, curb, gutter and alley approach fund is deficient for
such purpose, in an amount proportionate to the amount of such
deficiency.
Section 4. City Covenants.
The City covenants and
agrees with the holders from time to time of each of the Bonds
that until all of the Bonds and interest thereon are fully paid:
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4.01. Compliance with Covenants. The City will hold
the Sidewalk Fund and the Special Improvement District
Revolving Fund of the City created by Ordinance No. 612,
adopted October 2, 1951 (the Revolving Fund),
as trust funds,
separate and apart from all of its other funds, and the City,
its officers and agents, will comply with all covenants and
agreements contained in this resolution. The covenants
hereinabove made with respect to the Sidewalk Fund and the
Revolving Fund are in accordance with the undertaking and
agreement of the City made in connection with the public
offering of the Bonds and the sale of the Bonds as set forth in
Section 1.06.
4.02. Construction of Improvements. The City will do
all acts and things necessary to enforce the provisions of the
construction contracts entered into or to be entered into for
the Improvements and to ensure the completion of the
Improvements in accordance with the plans and specifications
therefor and within the time therein provided, and will pay all
costs thereof promptly as incurred and allowed, out of the
Construction Account and within the amount of the bond proceeds
appropriated thereto.
4.03. Assessments. The City will do all acts and
things necessary for the final and valid levy of special
assessments upon all assessable property benefited by the
Improvements, in accordance with the Constitution and laws of
the State of Montana and the Constitution of the United States,
in an aggregate principal amount not less than $95,500. Such
special assessments shall be levied on each lot or parcel of
land in front of which sidewalks, curbs and gutters are to be
constructed and each lot or parcel of land having an access via
the alley approach and, unless prepaid in full, shall be
payable in equal semi-annual installments over a period of
fi Ve'> y:etOtr~;, each installment being due in an amount equal to
one-tenth (l/10th) of the principal amount of each assessment
with interest on the whole amount remaining unpaid at an annual
rate equal to the average annual interest rate borne by the
Bonds plus up to one-half of one percent per annum as may be
determined by the Commission, interest being payable with
principal installments. The assessments to be levied will be
payable on the 31st day of May in the years 1988 through 1992
and on the 30th day of November in each of the years 1987
through 1991. The first partial paYment of each such
assessment shall include interest on the entire assessment from
August 1, 1987, the date of original registration of the Bonds,
to January 1, 1988, and each subsequent partial paYment shall
include interest for six months on the unpaid balance of such
special assessment. All installments of special assessments
not paid in full on or before the date due shall become
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delinquent on that date. The assessments shall constitute a
lien upon and against the property against which they are made
and levied, which lien may be extinguished only by paYment of
the assessment with all penalties, cost and interest as
provided in Montana Code Annotated, Section 7-12-4191.
No tax
deed issued with respect to any lot or parcel of land shall
operate as payment of any installment of assessment thereon
which is payable after the execution of such deed, and any tax
deed so issued shall convey title subject only to the lien of
said future installments, as provided in Montana Code
Annotated, Section 15-18-309.
4.04. Re-assess and Re-levv. If at any time and for
whatever reason any special assessment or tax herein agreed to
be levied is held invalid, the City and this Commission,
its
officers and employees, will take all steps necessary to
correct the same and to re-assess and re-levy the same,
including the ordering of work, with the same force and effect
as if made at the time provided by law, ordinance or resolution
relating thereto, and will re-assess and re-levy the same with
the same force and effect as an original levy thereof, as
authorized in Montana Code Annotated, Section 7-12-4186.
Any
special assessment, or re-assessment or re-levy shall,
so far
as practicable, be levied and collected as it would have been
if the first levy had been enforced including the levy and
collection of any interest accrued on the first levy.
If proceeds of the Bonds, including investment income
thereon, are applied to the redemption of the Bonds, as
provided in Montana Code Annotated, Sections 7-12-4205 and
7-12-4206, or if refunding bonds are issued and the principal
amount of the outstanding bonds is decreased or increased, the
City will reduce or increase, respectively, the assessments
levied in the district and then outstanding pro rata by the
principal amount of such prepayment or the increment above or
below the outstanding principal amount of bonds represented by
the refunding bonds. The City and this Commission, its
officers and employees will re-assess and relevy such
assessments, with the same effect as an original levy, in such
reduced or increased amounts in accordance with the provisions
of Montana Code Annotated, Sections 7-12-4176 through 7-12-4178.
4.05. Litiaation. There is now no litigation pending
or, to the best knowledge of the City, threatened,
questioning
the validity or regularity of the ordering of the Improvements,
any contract for construction of the Improvements, the levy and
collection of special assessments as described herein or the
undertaking and agreement of the City to make up any deficiency
in the collection of special assessments through the levy of
taxes and the making of advances from the Revolving Fund, or
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the right and powers of the City to issue the Bonds, or in any
manner questioning the existence of any condition precedent to
the exercise of the City's powers in these matters. If any
such litigation should be initiated or threatened, the City
will forthwith notify in writing the Original Purchaser, and
will furnish the Original Purchaser a copy of all documents,
including pleadings, in connection with such litigation.
Section 5. Investment of Monevs.
5.0l. Covenant. The City covenants and agrees with
the holders from time to time of the Bonds that it will not
take or permit to be taken by any of its officers, employees or
agents any action that would cause the interest on the Bonds to
become subject to taxation under the provisions of the Internal
Revenue Code of 1986 (the Code), and the Treasury Regulations
promulgated thereunder in effect at the time of such action,
and covenants and agrees that it will take or cause its
officers, employees or agents to take any action within its or
their powers to prevent the interest on the Bonds from becoming
subject to taxation under the Code and applicable Treasury
Regulations.
5.02. Certification. The Mayo r ,
the Director of
Finance and the Clerk of the Commission, being the officers of
the City charged with the responsibility for issuing the Bonds,
are authorized and directed to execute and deliver to the
Purchaser a certification in accordance with the provisions of
Section 148 of the Code and Treasury Regulations, Sections
1.103-13, -14, and -15, stating the facts,
estimates and
circumstances in existence on the date of issue and delivery of
the Bonds which make it reasonable to expect that the proceeds
of the Bonds will not be used in a manner that would cause the
Bonds to be arbitrage Bonds within the meaning of Section 148
of the Code and applicable Treasury Regulations. The
certification shall further state that to the best of the
knowledge and belief of the certifying officers no other facts,
estimates or circumstances exist which would materially change
this expectation.
5.03. Arbitraqe Rebate.
(a) The City hereby represents that it qualifies for
the exception for small governmental units to the arbitrage
rebate provisions contained in Section 148(f) of the Code.
Specifically, the City represents:
(1) The facilities financed in part with
proceeds of the Bonds are to be used solely by
members of the general public and no special
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concession or contract is granted to any user of
such facilities.
(2) Substantially all (not less than 95%)
of the proceeds of the Bonds will be used for
local governmental activities of the City.
(3) The aggregate face amount of all
tax-exempt bonds (other than private activity
bonds) issued by the CitV- and all subordinate
,City of-'B-o~eman entities thereof during 1987 is
notUreasonab.LY expected to exceed $5,000,000. To
date in 1987, the .Gi.t~:. has not issued any such
tax-exempt bonds, and in the calendar years 1983
through 1986 the average annual principal amount
of such tax-exempt bonds issued by the City..; was
$ 588,125 .
(b) If notwithstanding the provisions of
paragraph (a) of this Section 5.03, the arbitrage rebate
provisions of Section l48(f) of the Code apply to the
Bonds, the City hereby covenants and agrees to make the
determinations, retain records, and rebate to the United
States the amounts at the times, required by said Section
148(f).
(c) As provided in Section 3.04, payment of
principal of and interest on the Bonds is secured by the
Revolving Fund. The amount on deposit in the Revolving
Fund allocable to the Bonds (the Reserve Amount)
constitutes a reasonably required reserve fund which may
be invested without yield limitation if the Reserve Amount
does not at any time exceed the Maximum Reserve
Requirement, which is the lesser of: (i) 10 percent of
the original proceeds of the Bonds ($9,550Y, (ii) the
maximum amount of principal and interest payable on the
Bonds in any fiscal year, or (iii) 125 percent of the
average amount of principal and interest payable on the
Bonds in any fiscal year. To ensure that the Reserve
Amount never exceeds the Maximum Reserve Requirement, the
City agrees that following the payment of Bonds on each
July 1, the City will calculate the Reserve Amount, and
that, if the Reserve Amount exceeds the maximum amount of
principal and interest payable on the Bonds then
outstanding in any future fiscal year, the City will
within 30 days thereafter either (a) reduce the Reserve
Amount so that it does not exceed such amount or (b) limit
the yield of the investments allocated to the Reserve
Amount in excess of such amount to the yield of the Bonds
if and to the extent such reduction or limitation is
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necessary to prevent the Bonds from becoming "arbitrage
bonds" within the meaning of the Act. In determining the
Reserve Amount, the City shall allocate amounts on deposit
in the Revolving Fund to outstanding special improvement
district bonds or warrants secured thereby in proportion
to their original principal amounts.
Section 6. Authentication of Transcript.
The
officers of the City are hereby authorized and directed to
furnish to the Original Purchaser and to the attorneys
approving the legality of the Bonds certified copies of
all proceedings relating to the issuance of the Bonds and
such other certificates and affidavits as may be required
to show the right, power and authority of the City to
issue the Bonds, and all statements contained in and shown
by such instruments, including any heretofore furnished,
shall constitute representations of the City as to the
statements contained therein.
Section 7. Defeasance.
7.0l. General. When the liability of the City on all
Bonds issued under and secured by this Resolution has been
discharged as provided in this Section 7, all pledges,
covenants and other rights granted by this Resolution to the
owners of the Bonds shall cease.
7.02. Pavrnent. The City may discharge its
liability
with reference to any Bond, principal installment thereof or
installment of interest thereon which is due on any date by
depositing with the Registrar on or before that date a sum
sufficient and providing proceeds available for the payment
thereof in full; or if any Bond or installment of interest
thereon shall not be paid when due, the City may nevertheless
discharge its liability with reference thereto by depositing
with the Registrar a sum sufficient and providing proceeds
available for the payment thereof in full with interest accrued
to the date of such deposit.
7.03. Redemption. The City may also discharge its
liability with reference to any prepayable Bonds which are
called for redemption on any date in accordance with their
terms by depositing with the Registrar on or before that date
an amount equal to the principal and interest which are then
due thereon; provided that notice of such redemption has been
duly given as provided in this Resolution.
7.04. Defeasance bv Escrow. The City may also at any
time discharge its liability in its entirety with reference to
the Bonds, subject to the provisions of law now or hereafter
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authorizing and regulating such action, by depositing
irrevocably in escrow, with a bank qualified by law as an
escrow agent for this purpose, cash or securities which are
authorized by law to be so deposited, 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 to pay all principal and interest to become due on
all Bonds on or before maturity or, if any Bond has been duly
called for redemption or provision irrevocably made therefor,
on or before the designated redemption date.
Section 8. Repeals and Effective Date.
8.0l. Repea 1 . All provisions of other resolutions
and other actions and proceedings of the City and this
Commission that are in any way inconsistent with the terms and
provisions of this resolution are repealed, amended and
rescinded to the full extent necessary to give full force and
effect to the provisions of this resolution.
t
8.02. Effective Date. This resolution shall take
effect immediately upon its passage and adoption by this
Commission.
PASSED by the City Commission of Bozeman, Montana,
this 10th day of August, 1987.
~u~~~t-t~\ 8-
(Y1 Jl\~~-A-
Mayor
Attest: C20&~ ~ J21L:~ ~
Clerk of the Commission
(SEAL) ..
The motion for the adoption of the foregoing
resolution was duly seconded by Commission Member ,
and upon vote being taken thereon, the following voted in favor
thereof:
1
.
and the following voted against the same:
I
.
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whereupon the resolution was declared duly passed and adopted,
and was signed by the Mayor, which signature was attested by
the Clerk of the Commission.
APPIWVEII ~ F:
t.... ~ 8 i8?
City Attorney
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EXHIBIT A
[Face of the Bond]
UNITED STATES OF AMERICA
STATE OF MONTANA
GALLATIN COUNTY
CITY OF BOZEMAN
SPECIAL SIDEWALK, CURB, GUTTER AND
ALLEY APPROACH BOND, SERIES 1987
Interest at the rate per annum specified below
Payable on January 1, 1988 and
semi-annually thereafter on the 1st day of January
and the 1st day of July in each year
Issued by the City of Bozeman,
Gallatin County, Montana
No.
$
Representing Principal Installment
Nos.
Date of Original
Interest Rate Maturitv Issue CUSIP
August 1, 1987
SEE REVERSE
FOR CERTAIN
DEFINITIONS
REGISTERED OWNER:
PRINCIPAL AMOUNT:
DOLLARS
The Director of Finance of the City of Bozeman,
Montana, will pay to the registered owner specified above or
registered assigns, the principal amount specified above on the
maturity date specified above, as authorized by Resolution
No. , adopted on August ~, 1987 (the Bond
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Resolution), all subject to the provisions hereinafter
described relating to the redemption of this Bond before
maturity.
This Bond bears interest at the rate per annum
specified above from the date of registration of this Bond, as
expressed herein, or from the most recent date to which
interest has been paid or duly provided for, until the maturity
date specified above or an earlier date on which this Bond
shall have been duly called for redemption by the Director of
Finance. Interest on this Bond is payable semi-annually,
commencing January 1, 1988, on the first day of January and the
first day of July in each year, to the owner of this Bond as
such appears of record in the bond register as of the close of
business on the 15th day (whether or not a business day) of the
immediately preceding month. Interest on and, upon
presentation and surrender hereof at the principal office of
the bond registrar and paying agent hereinafter named, the
principal of this Bond are payable by check or draft of the
Director of Finance of the City, of Bozeman, Montana, as bond
registrar and paying agent, or its successor designated under
the Bond Resolution described herein (the Registrar). The
principal of and interest on this Bond are payable in lawful
money of the United States of America.
Additional provisions of this Bond are contained on
the reverse hereof and such provisions shall for all purposes
have the same effect as though fully set forth hereon.
This Bond shall not be valid or become obligatory for
any purpose or be entitled to any security or benefit under the
Bond Resolution until the Certificate of Authentication and
Registration hereon shall have been executed by the Registrar
by the manual signature of one of its authorized
representatives.
IN WITNESS WHEREOF, the City of Bozeman, Montana, by
its City Commission has caused this Bond to be executed by the
facsimile signatures of the Mayor and the Clerk of the
Commission and by a facsimile of the official seal of the City.
CITY OF BOZEMAN, MONTANA
Dated:
(Facsimile signature)
Mayor
(Facsimile signature)
Clerk of the Commission
(Facsimile Seal)
~v;t4t~r.~ -17-
City Attorney.. r 07
C', __ - ....
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CERTIFICATE OF AUTHENTICATION AND REGISTRATION
This is one of the Bonds delivered pursuant to the
Bond Resolution mentioned herein and this Bond has been
registered as required by law on the books of the City as of
the ____ day of August, 1987.
DIRECTOR OF FINANCE,
CITY OF BOZEMAN,
as Registrar
By
Authorized Representative
Date:
[Reverse of the
Bonds]
This Bond is one of an issue in the aggregate
principal amount of $95,500 (the Bonds), all of
like date of
original issue and tenor, except as to serial number,
denomination, date, interest rate and maturity date. The Bonds
are issued pursuant to and in full conformity with the
Constitution and laws of the State of Montana thereunto
enabling, including Montana Code Annotated, Title 7,
Chapter
14, Part 41 and Title 7, Chapter 12, Parts 41 and
42, as
amended, for the purpose of financing the construction of
sidewalk, curb, gutter and alley approach improvements in the
City (the Improvements). The Bonds are issuable only as fully
registered bonds of single maturities in denominations of
$5,000 or any integral multiple thereof. This Bond represents
one or more principal installments of the Bonds numbered as set
forth on the face hereof. The principal installments for the
Bonds are numbered from 1 through 19, each in the amount of
$5,000.
This Bond is payable from the collection of a special
tax or assessment levied upon all assessable property benefited
by the Improvements. This Bond is not a general obligation of
the City.
The principal installments represented by this Bond
are subject to mandatory redemption in order of registration on
any interest paYment date if, after paying all principal and
interest then due on the Bonds, there are funds to the credit
of the Special Sidewalk, Curb, Gutter and Alley Approach Fund,
from surplus funds not required to pay costs of the
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Improvements or from the prepayment of special assessments to
be levied on the benefited property, for the redemption
thereof, and in the manner provided for the redemption of the
same. The Bonds are subject to redemption at the option of the
City from other sources of funds available therefor on any
interest payment date; provided,
howeve r , that the Bonds shall
not be called for redemption from the proceeds of refunding
bonds before January 1, 1992. The redemption price is equal to
the amount of the principal installment or installments of the
Bonds to be redeemed plus interest accrued thereon to the date
of redemption. The date of redemption shall be fixed by the
Director of Finance, who shall give notice by mail to the
owners of such Bonds at their addresses shown on the bond
register, of the numbers of the principal installments and
Bonds to be redeemed and the date on which payment will be
made, which date shall not be less than ten days after the date
of mailing of notice, on which date so fixed interest shall
cease. Upon partial redemption of any Bond,
a new Bond or
Bonds will be delivered to the registered owner without charge,
representing the remaining principal installments outstanding.
As provided in the Bond Resolution,
and subject to
certain limitations set forth therein, this Bond is
transferable upon the books of the City at the principal office
of the Registrar, by the registered owner hereof in person or
by his attorney duly authorized in writing upon surrender
hereof together with a written instrument of transfer
satisfactory to the Registrar, duly executed by the registered
owner or his attorney; and may also be surrendered in exchange
for Bonds of other authorized denominations. Upon
such
transfer or exchange, the City will cause a new Bond or Bonds
to be issued in the name of the transferee or registered owner,
of the same aggregate principal amount, representing the same
principal installments, bearing interest at the same rate and
maturing on the same date, subject to reimbursement for any
tax, fee or governmental charge required to be paid with
respect to such transfer or exchange.
The City and the Registrar may deem and treat the
person in whose name this Bond is registered as the absolute
owner hereof, whether this Bond is overdue or not, for the
purpose of receiving payment and for all other purposes, and
neither the City nor the Registrar shall be affected by any
notice to the contrary.
IT IS HEREBY CERTIFIED AND RECITED that all things
required to be done precedent to the issuance of this Bond have
been properly done, happened and been performed in the manner
prescribed by the laws of the State of Montana and the
resolutions and ordinances of the City of Bozeman, Montana,
relating to the issuance hereof.
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The following abbreviations, when used in the
inscription on the face of this Bond, shall be construed as
though they were written out in full according to applicable
laws or regulations:
TEN COM -- as tenants UNIF GIFT MIN ACT.....Custodian.....
in common
(Cust) (Minor)
TEN ENT -- as tenants
by the entireties
under Uniform Gifts
to
JT TEN -- as joint tenants Minors
with right of
survivorship and Ac till' . . . .. .. . . . .
. . . . . . . . . . . .
not as tenants in
(State)
common
Additional abbreviations may also be used.
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sells,
assigns and transfers unto
the
within Bond and all rights thereunder, and hereby irrevocably
constitutes and appoints
attorney to transfer
the within Bond on the books kept for registration thereof,
with full power of substitution in the premises.
Dated:
PLEASE INSERT SOCIAL SECURITY
OR OTHER IDENTIFYING NUMBER NOTICE: The
signature to
OF ASSIGNEE: this assignment must
correspond with
the name
/ / as it appears upon the face
of the within Bond
in every
particular, without
alteration,
enlargement or
any change whatsoever.
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SIGNATURE GUARANTEE:
Signature(s) must be guaranteed
by a commercial bank or trust
company or by a brokerage firm
having a membership in one of
the major stock exchanges.
Certificate as to Leaal Opinion
The following certificate shall be printed on the
reverse side of each Bond, following a full, true and
correct
copy of the text of the legal opinion given at the time of
delivery of the Bonds:
We certify that the above is a full, true and correct
copy of the legal opinion on the issue of Bonds of the City of
Bozeman, Montana, which includes the within Bond, dated as of
the date of delivery of and paYment for the Bonds.
(Facsimile Signature) (Facsimile Signature)
Mayor Clerk of the Commission
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City AHoiner-~A?
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