HomeMy WebLinkAboutResolution 4462 Sewer System Revenue bonds RESOLUTION NO, 4462
RESOLUTION RELATING T0 FIRST AMENDED AND
RESTATED SEWER SYSTEM REVENUE BONDS (DN8C
WATER POLLUTION CONTROL STATE REVOLVING LOAN
PR0GBAM); AMENDING AUTHORIZING RESOLUTIONS
ADOPTED JANUARY l9, 20{0, FEBRUARY }h, 20l0, MAY 3,
2AlA, AND NOVEMBER l, 20l0 AND BONDS
8E [1FRESOLVED by the City Cornmniseiou uf the City nf Bozeman, Montana(tbe
"Issuer"), as follows:
`
Section l.
|.@]. Issuance of Bonds. Pursuant to Resolution No. 4220mf the Issuer mdopt- �� 6v the
n�om
City Cni*sinnenNovcnubcrl0, 200g (the "Original flcxo{utiom`^), mmurmcodedand
supplemented by Resolution Nos. 4234 (the ^^2AlOABCRcsolction,` , 4245kbe"2O|0D
8cou)odom`l, 4254 (the "'20]8EF{} Resolutiom°), and 42g9 (t6r°2O 'ODJlem` |otion"), adopted
by the <�i1y��om�mmiesjmumnJanuary 14, 2VlO, February l6, ' OUO" ��my3, 20|O, and "—November l
20l0, rewpcc�vtly0be Original Rosm!o�ou, asumumonmdcd and supplemented, the ~`Pc `
Resolutions"), the Issuer authorized, as the Original Resolution were then in effect, the
o[ /ncspectiYoly` its5en/er SyeTcmlflevrouoBond (D�|[lCVVu�,Pollution Control S<--
Revolriogl.ouo Program), Series 20l0(� (the "Sedcm20}O(� ]�ood`�, �usucd in the mo--�zn000
pdnuinolan�oontmf$],223,000, itaSevverSy«te/� ]�cvcmneBood / - kLC �Vu�rpol--�oo
{�omtrol0�tc ]�evo{ving Loan yrogroo�), Series 2OlADAbe "^Scrio' 2A}ODl�ood'l, i:--�dinthe
rnauicouruprincipal anzuun{ of$9,500,AV0, its ScvvcrSystem Revenue Bond (D�| 'C---'-r
Pnl|utinm (�motro[ S1a1c }(evm}viugLoanProgrmnm), Seriux20l0FOhe ^^Smden` 0lO[ I�'--�^l
issued io the cmuximnumo 'uc��a� urn000< of�8}h 000 its 8�vv�r System Il Bond '^
».^ " ^ ��xrmn �v�ouoBmo (Dy�8LC
YymtorPollution Control State Flevo1vingLoan Prngrazn), Scdem20I0O (thr ^^8erie82Ol`G
X�ond'"), issucdintbemusirouruprhncipa| un,0uoiof$3,9O3,A00. uodiTo- e`�erSymeun '-cvcoue
Bond (D0�Il�� �Vatcr Pollution [o/�cnl State Revolving Loan 9rogrora), Series 20l 'B /--c
^^Sericn2Ol0�� Bund`^), issued in the rnuxiznoruprincipal aznouo\ Vf$ ',573,A0O\m finance-
improvements of the rnonicipml xep/cr system and related improvements (the
"Projects")
as part
of the municipal sewer system of the Issuer(the^ Systczo ^}, msmore particularly described in the
e 0rigina| Qcan]udmn. The Series 2OKOC Bond,the Series 2010D Bond, the Series 2OlO Bond,
the Series 201 OG Bond, and the Series 201 OH Bond (collectively, the "'Prior Bonds") were
purchased and are currently held hy the Department nf Natural Resources and Conservation of
the State of Montana (the ^DNRC^l. There are ou other bonds orindebtedness o f
the Issuer that
are outstanding and payable from Net Revenues of the System, except its Sewer Systern Revenue
I9omd ([)NllC Water Pollution Control State Revolving Loan Progruom), Series 2OlQf� (the
^^3cries2AlVl� Rmud")~ issued in the nnaxjnmnro principal oommootof$3-9`3O0, vvhicbi`held 6y
1heD;�F<(�. Terms vvi1hinidulcapital /c�ernused but not dc�oedherein have the rnca-imgm
given them in the Original Resolution.
1.02. Interest Rate Reduction. Pursuant to the Intended Use Plan for fiscal year 2013-
2014 (the ^'lOP^`) for the Water Pollution Control State Revolving Loan Program (the
CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE
1, the undersigned. being the duly qualified and acting recording officer of the City of
Bozeman, Montana (the -City".), hereby certify that the attached resolution is a true copy of
Resolution No. 4462 entitled: "RESOLUTION RELATING TO FIRST AMENDED AND
RESTATED SEWER SYSTEM REVENUE BONDS (DNRC WATER POLLUTION
CONTROL STATE REVOLVING LOAN PROGRAM); AMENDING AUTHORIZING
RESOLUTIONS ADOPTED JANUARY 19, 2010, FEBRUARY 16, 2010, MAY 3, 2010, AND
NOVEMBER 1, 2010 AND BONDS" (tile "Resolution"), on file in the original records of the
City in illy legal custody; that the Resolution was duly adopted by the City Commission of tile
City at a rnecting on August 5, 2013, and that the meeting was duly held by the City Commission
and was attended throughout by a quorum, pursuant to call and notice of such meeting given as
required by law; and that the Resolution has not as of the date hereof been amended or repealed,
I further certify that, upon vote being taken on the Resolution at said meeting, the
following Commissioners voted in favor thereof.-P—atioy- &ske,-K C-r- Kva!4551
Cy. 7-at4fpv-� j I ; voted against the
same: \j abstained from voting thereon:
or were absent:
WITNESS in),hand officially this Ay of August, 2013,
City lerI�.*
1�83
CC
APPENDIX A
[FORM OF FIRST AMENDED AND RESTATED SERIES 20100 BOND]
UNITED STATES OF AMERICA
STATE OF MONTANA
COUNTY OF GALLATIN
CITY OF BO ZEMAN
FIRST AMENDED AND RESTATED
SEWER SYSTEM REVENUE BOND
(DNRC WATER POLLUTION CONTROL STATE REVOLVING LOAM PROGRAM)
SERIES 201 OC
No. R-2 $885,081
FOR VALUE RECEIVED, T HE CITY OF BOZEMAN, MONTANA (the
"City"), a duly organized municipal corporation and political subdivision of the State of
Montana, acknowledges itself to be specially indebted and, for value received, hereby promises
to pay to the Department of Natural Resources and Conservation of the State of Montana (the
IDNRC"), or its registered assigns, solely from the Revenue Bond Account of its Sewer System
Fund, the principal surn of $885,081, with interest on such amount from the date hereof at the
rate of two percent (2.00%) per annum on the unpaid balance until paid. In addition, the City
shall pay an Administrative Expense Surcharge and a Loan Loss Reserve Surcharge on t he
outstanding principal amount of this Bond at the rates of seventy-five hundredths of one percent
(0,75%) and twenty-five hundredths of one percent (0.25%), respectively, per annum. Interest
and Administrative Expense Surcharge and Loan Loss Reserve Surcharge shall be payable in
semiannual installments payable on each January I and July I (each a "Loan Repayment Date")
commencing January 1, 2014. Each installment shall reflect all interest rate of three percent
(3,00%) per annum and shall be in the amount set forth opposite its due date in Schedule A
hereto under "Total Loan Payment." The portion of each such payment consisting of principal,
the portion consisting of interest, the portion consisting of Administrative Expense Surcharge,
and the portion consisting of Loan Loss Reserve Surcharge shall be as set forth in Schedule A
hereto. Past-due payments of principal, interest, Administrative Expense Surcharge, Loan
Loss Reserve Surcharge shall bear interest at the rate of tell percent (10.00%) per annual, until
paid. Interest, Administrative Expense Surcharge, and Loan Loss Reserve Surcharge shall be
calculated on the basis of a 360-day year comprising 12 months of 30 days each. All payments
under this Bond shall be made to the registered holder of this Bond, at its address as it appears on
the Bond register, in lawful money of the United States of America,
This Bond constitutes a series in the maximum authorized principal amount of
$1;223,000 (the "Series 20100 Bond"), issued to finance a portion of the costs of construction of
certain improvements to the sewer system of the City (the "System"), to fund the Reserve
Account, and to pay costs of issuance of the Series 20100 Bond. The Series 20100 Bond is
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 7, Part 44 and 45, as
A-1-
amended, and resolutions duly adopted by the governing body of the City, including Resolution
No. 4220 duly enacted by the City Commission on November 16, 2009, a s amended and
supplemented by Resolution Nos. 4234, 4245, 4 254, 4299, and 4462 adopted on January 19,
2010, February 16, 2010, May 3, 2010,Noven-iber 1, 2010, and August 5, 2013, respectively (the
Original Resolution, as so amended and supplemented, the "Resolution"). T lie Series 20100
Bond is issuable only as a single, fully registered bond. The Series 20100 Bond is issued oil a
parity and is equally and ratably secured by the Net Revenues of the Systern with the City's
outstanding $359.300 Sewer System Revenue Bond (DNRC Water Pollution Control State
Revolving Loan Program), Series 2010E (the "Series 2010B Bond"), First Amended and
Restated Sewer Systern Revenue Bond (DNRC Water Pollution Control State Revolving Loan
Program), Series 201 OD (the "Series 201 OD Bond"), First Amended and Restated Sewer System
Revenue Bond (DNRC Water Pollution Control State Revolving Loan Program), Series 2010E
(the "Series 201 OF Bond"), First Amended and Restated Sewer Systern Revenue Bond (DNRC
Water Pollution Control State Revolving Loan Program), Series 2010E (the "Series 201OG
Bond"), and First Amended and Restated Sewer System Revenue Bond (DNRC Water Pollution
Control State Revolving Loan Program), Series 201 OH (the "Series 201 OH Bond"). Tile Series
201 OD Bond, the Series 20 1 OF Bond, the Series 201 OG Bond, and the Series 201 OH Bond are
being issued simultaneously herewith.
Reference is made to the Resolution for a more complete staternent of the terms
and conditions upon which the Series 201 OC Bond has been issued, the Net Revenues of the
System pledged and appropriated for the payment and security thereof, the conditions upon
which additional bonds may be issued under the Resolution and made payable frorn such Net
Revenues on a parity with the Series 20108 Bond, the Series 201 OC Bond, the Series 201 OD
Bond, the Series 201 OF Bond, the Series 201 OG Bond, and the Series 201 OH Bond (collectively,
the "Bonds") or otherwise, the conditions upon which the Resolution may be amended, the
rights, duties and obligations of the City, and the rights of the owners of the Series 201 OC Bond,
The City may prepay the principal of the Series 20100 Bond only if(i) it obtains
the prior written consent of the DNRC thereto, and (ii) no Loan Repayment or Administrative
Expense Surcharge or Loan Loss Reserve Surcharge is then delinquent. A ny prepayment
permitted by the DNRC must be accompanied by payment of accrued interest and
Administrative Expense Surcharge and Loan Loss Reserve Surcharge to the date of prepayment
on the amount of principal prepaid. If the Series 201 OC Bond is prepaid in part, such
prepayments shall be applied to principal payments in inverse order of maturity,
The Bonds, including interest and any premium for the redemption thereof, are
payable solely frorn the Net Revenues pledged for the payment thereof and do not constitute a
debt of the City within the meaning of any constitutional, statutory or charter limitation or
provision.
The City may deern and treat the person in whose name this Series 20100 Bond is
registered as the absolute owner hereof, whether this Series 20100 Bond is overdue or not, for
the purpose of receiving payment and for all other purposes, and the City shall not be affected by
any notice to the contrary.
A-2-
|T }6 HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that
the City has fixed and established and will collect reasonable rates and charges for the services
and facilities afforded by the System, and has created ospmuioi Sewer Sym1con Fund into which
the gross revenues of the System, including all additions thereto and rey|aocmuno1m and
improvements thereof, will be paid, and usspom }�
separate o�oc�uI evooutBond Account in that
fund, into vvbioh will be paid each rnooT6, Net 5(cvemuom of the System then on hand (the gross
revenues remaining after the payment of Operating Expenses nfthe Syotcco), iomnmoz"untequal
to not less than the su/n of one-sixth of the interest due within the ocx1 six months and one-
twelfth of the principal doe within the next twelve months with respect to all outstanding Bonds
payable oemli-000ua}|Y frono that oocoumt, and a Reserve /\cupoot (the "Reserve-) into which
shall be paid additional Net Revenues sufficient to cn1xbliob and maintain u reserve therein equal
{o, as of the date of calculation, the Reserve Requirement; that the Revenue Bond Account and
the Reserve will be used only tu pay the principal o[ preco|um, if any, and interest on the Bonds
issued pursuant to the authority herein recited; that the rates and charges for the System will frorn
time totiroebo made and kept sufficient toprovide gross income and revenues adequate 1npay
promptly the reasonable and current expenses of operating and 000im1cioiog the Sy*troo and to
produce in each fimuuIyear Net Revenues ;m excess of such current expenses equal to \25Y6mf
the principal and interest payable from the Revenue Bond Account iu any subsequent fiscal year,
to roaio\eio the balance in the Reserve at the 8nme,vc Requirement, to pay promptly the
reasonable and current expenses nf operating and maintaining the System, tm pay the principal of
and io1erco( nnmny Subordinate Obligations and to provide reserves for the rcp|aomrneot and
depreciation of the 8ystcno; that additional I)nudn and refunding Bonds rnmyhe issued and made
payable {r)mothe Revenue Bond Account oou parity with the Bonds upon certain conditions set
forth in the Bcun\utiom but no obligation will be nthc/pvine incurred and onodo payable from the
Net ]Itveouco, uo)cmm the lien thereof shall be expressly made subordinate to the lien of the
Bonds and other additional Bonds om such Net Revenues; that all provisions for the eccmd{y of
this 8ohus 2010C Bond set {bUh in the Resolution will be punctually and faithfully performed as
therein stipulated; that all acts, conditions and things required by the Constitution and laws ofthe
State of Montana and the ordinances and resolutions of the City to be done, To exist, to happen
and to be performed in order to make this Series 2010[ Bond m valid and binding special
obligation of the City according to its terms have been done, do exist, have happened and have
been performed as so required; and that this Sccica 2010C Bond and the premium, if any, and
interest |zcrenm are payable solely fro,m the Net Revenues of the Systezn pledged and
appropriated 10 the Revenue Bond Account and do not constitute a debt of the City within the
oncuninA of any constitutional, statutory *rcharter limitation or provision and the issuance of the
Series 20|0C 800U does not uuoso either the general or the mpcoin[ indebtedness of the City to
esoccd any constitutional, statutory or charter limitation.
A-3-
IN WITNESS WHEREOF, the City of Bozeman, Montana, by its governing body, has
caused this Bond to be executed by the signatures of its signatures of the Mayor, the Finance
Director and the City Clerk, and has caused the official sea] of tile City to be affixed hereto, and
has caused this Bond to be dated as of the 21 st day of August, 2013.
Mayor
(SEAL)
01.
a 4 Ci 7 Finance nance Di e tor
40
A L11N'�X'
City Clerk,b&p"�
A-4-
"Prograrn"), the DNRC and the Department of Environmental Quality of the State of Montana
have determined that it is in the best interests of borrowers of loans 'nade under the Program and
the Program to reduce the interest rates available under the Program.
1.03. Reduction in Interest Rate on Prior Bonds, It is proposed that debt service on the
Prior Bonds be reduced in accordance with the interest rate reduction proposal under the ]UP,
thereby reducing the interest rate on (i)the Series 20100 Bond from three and three-quarters
percent (3.75%)per annun to three percent(3.00%) per annu-n from and after the date of
delivery of the First Amended and Restated Series 20100 Bond; (ii) the Series 2010D Bond from
three and three-quarters percent (3.75%) per annr►m to three percent (3.00%)per annum from
and after the date of deliver), of the First Amended and Restated Series 2010D Bond; (iii)the
Series 20101" Bond from three and three-quarters percent (3.75'%,) per annun to three percent
(3.00%) per annum fi-orn and after the date of delivery of the First Amended and Restated Series
2010F Bond; (iv) the Series 2010E Bond from three and three-quarters percent(3.75%) per
annum to three percent (3.00%) per annunn from and after the date of delivery of the First
Amended and Restated Series 2010G Bond; and (v) the Series 2010H Bond from three and
three-quailers percent (3.75%)per annum to three percent (3.00%) per annum from and after the
date of delivery of the first Amended and Restated Series 2010H Bond.
Section 2. Amendment of Original Resolution.
2.01. Authorization. The Issuer, in Section 13.4 of the 2010ABC Resolution, Section
12.4 of the 2010D Resolution, Section 13.4 of the 2010EFG Resolution, and Section 12.4 of the
2010H Resolution, reserved the right to amend such resolutions upon notice to and with the
consent of the DNRC.
2.02. Consent of DNRC. The DNRC has agreed to the amendment of certain
provisions of such resolutions in connection with the determination to reduce certain interest
rates under the Program.
2.03. Amendment of C)riainal Resolution. Pursuant to the authority cited in
Sections 2.01 and 2.02 of this resolution,
(a) The 2010ABC Resolution is hereby amended effective as of the date of delivery of
the First Amended and Restated Series 2010E Bond (as hereinafter defined)to read as follows:
(i) all references to the aggregate interest rate, or that interest rate that includes the
interest rate and all surcharges, on the Series 20100 Bond are hereby amended to read
3.00%b per annum, instead of 3.75% per annum; (ii) the interest rate on the Series 20100
Bond exclusive of any surcharges will continue in effect at 2.00%per annum; (iii) the
administrative expense :surcharge on the Series 20100 Bond will continue in effect at
0.75%per annum; and (iv) all references to the loan loss reserve surcharge on the Series
20100 Bond are hereby amended to read 0.25%per annum, instead of 1.00%per annum;
and
(ii) the total principal amount of the First Amended and Restated Series 20100
Bond is $885,081.
-2-
(b) The 201 OD Resolution is hereby amended effective aonfthe date of delivery of the
First Amended and Restated Series 2OlOD Bond (as bereimafter defined) no read asfollows:
(i) all rrforcoueo to the 4ggzmgu1c interest rate, or that im{nreyT rate that includes the
interest rate and all surcharges, on the Series 20|0D Bond are hereby anncodcd to read
3.00%per annunn, instead of3.75%per annum; (ii) the interest rate omthe Series 2A10[}
Bond exclusive o{any surcharges will continue io effect nt2.0O%per omnmcn; (iii� 1�e
udrmioimL�t|*e expense surcharge oothe Series 2010D Bond will continue in effect at
0.75% per annum; and (iv) all references tothe |nuo loss reserve surcharge on the Series
20|OZ} Bond are hereby amended to read A.25%per annum, instead 0f].00% per annum-,
and
/ii>the total principal amount of the First Amended and Restated Series 20lOI}
Bond is $8,3A8'00O'
(o) Tile 20l0BFG Resolution io hereby amended effective ouof the date nf delivery of
the First Amended and Restated Series 2Ol0F Bond (as hereinafter defined) 1n read usfollows:
(i) all references to the aggregate interest rate, or that interest rate that includes the
interest rate and uU1 surcharges, onthe Series 30lVF Bond are hereby amended to read
3.OQ%per annum, instead of3.75%per annum, (iDthe interest rate mothe Series 2O\AF
Bond exclusive of any surcharges will continue in effect ui2.O0%per annum; (�ib1hc
effect ai
0.75%per mmoo/n; and (iv) all references to the loan loss reserve surcharge on the Scr|ty
20]0F Bond are hereby amended tu read 8.25%per annum, instead of).00% per anourn;
and
(ii)the total principal amount nf the First Amended and Restated Series 2O\OF
Bond iy $72A,A00.
(d) The 20 1 OEFG Resolution is hereby further amended effective as of the date of
delivery of the First/\nncmdmd and }tcoturod Series 201 O Bond (as hereinafter defined) 10 read
as follows: '
/i\al| references to the aggregate interest rato, or that io/mrevT rate that includes the
interest rate and all surcharges, on the Series 201OG Bond are hereby amended to read
].0096 per umnmnn, instead of3.75%per au000m; (ii) the interest rate oothe Series 20l0{]
Bond exclusive ofan), surcharges will continue |n effect o12.AA%per anouzn; (iiD\be
rn
o� inixtoedve expense yurc|�aqgconthe Series 20l0(� Bond will continue ine�e' at
O.75Y6 per annum; and (iv) all references to the loan \uws reserve onztberge on tile Series
20lA(]Bond are hereby amended tm read A.25Y6 per 0omurn, instead of7.0O%per mmunz;
and
(ii) the total principal amount mf the First Amended and Restated Series 201 O
Bond is $3,558,000.
(c) The 201 OH Resolution is hereby amended effective as of tile date of delivery of the
First Amended and 8omtu1cd Series 201 OH 0mod /us hereinafter defined)to nuud as follows: �
-3-
(i) all references to the aggregate interest rate, or that interest rate that includes the
interest rate and all surcharges, on the Series 201 OH Bond are hereby amended to read
3.00% per annum, instead of 3.75% per annum; (ii) the interest rate on the Series 2010H
Bond exclusive of any surcharges will continue in effect at 2.00%per annum; (iii) the
administrative expense surcharge on the Series 2010H Bond will continue in effect at
0.75% per annum: and (iv) all references to the loan loss reserve surcharge on the Series
2010H Bond are hereby amended to read 0,25%per annum, instead of 1.00%per annum;
and
(ii) the total principal amount of the First Amended and Restated Series 2010H
Bond is $8,692,000.
(f) Except as expressly noted herein, other interest rates or surcharges are not adjusted,
including, without limitation, interest on past due amounts.
2.04. Amendment of Forms of Bonds. Pursuant to the authority cited in Sections 2.01
and 2.02 of this resolution, effective as of the date of delivery of each series of amended and
restated bonds, the Series 2010C Bond attached as Appendix B-3 to the 201 OABC Resolution is
hereby amended and restated in its entirety substantially as set forth on the attached Appendix A
(the "First Amended and Restated Series 20100 Bond"), the Series 201 OD Bond attached as
Appendix B to the 201 OD Resolution is hereby amended and restated in its entirety substantially
as set forth on the attached Appendix B (the"First Amended and Restated Series 20 1 OD Bond"),
the Series 2010F Bond attached as Appendix B,-2 to the 201 OEFG Resolution is hereby amended
and restated in its entirety substantially as set forth on the attached Appendix C (the "First
Amended and Restated Series 2010F Bond"),the Series 2010E Bond attached as Appendix B-3
to the 201 OEFG Resolution is hereby amended and restated in its entirety substantially as set
forth on the attached Appendix D (the "First Amended and Restated Series 2010G Bond"), and
the Series 2010H Bond attached as Appendix B to the 2010H Resolution is hereby amended and
restated in its entirety substantially as set forth on the attached AP2endix E (the"First Amended
and Restated Series 201014 Bond").
2,05. Effect of Amendments. Except as amended by Sections 2.03 and 2.04 of this
resolution, the Original Resolution shall remain unamended and, frorn and after the date of
delivery of the First Amended and Restated Bonds (as hereinafter defined), shall continue in full
force and effect as amended by Sections 2.03 and 2.04 of this resolution for the benefit of the
holders from time to time of the First Amended and Restated Bonds, the Series 20 1 OB Bond, and
any additional Bonds that may be issued thereunder.
Section 3. Preparation and Delivery of First Amended and Restated Bonds, Tile First
Amended and Restated Series 2010C Bond,the First Amended and Restated Series 2010D Bond,
the First Amended and Restated Series 2010E Bond, the First Amended and Restated Series
2010E Bond, and the First Amended and Restated Series 2010H Bond (collectively, the "First
Amended and Restated Bonds") shall be prepared under the direction of the City Finance
Director of the Issuer and shall be executed on behalf of the Issuer by the signatures of the
Mayor, the City Finance Director, and the City Clerk of the Issuer and scaled with the official
corporate seal of the Issuer. When the First Amended and Restated Bonds have been executed,
the City Finance Director of the Issuer shall cause them to be dated as of the date of delivery and
-4-
delivered 10 the l)N}lC, aopurchaser thereof, in anticipation ^f the surrender ofthe
corresponding Prior Bond. TbeCi|v Finance Director ip authorized and directed tV act mpbond
registrar io connection with the First Amended and Restated Bonds.
Section 4. The City Finance Director of tbe
Issuer im authorized and directed to transfer amounts |n the Revenue Bond Account iopay
interest owing oo the Prior Bonds usof the date of delivery of the First Amended and Restated
Bonds. The City Finance Director ofthe lxnmcr is further authorized and directed to transfer
amounts made available in the Reserve Account 6ecmmoo of the foregoing interest rate
adjustments to the Revenue Bond Account&oprepay any one nx more Prior Bonds uaOf tile date
of delivery of the First Amended and Restated Bonds, to transfer arnounts to the Revenue Bond
Account to pay interest on the First Amended and Restated Bonds on January 1, 2014,to pay
costs of issuance of the First Amended and Restated Bonds.
, or to any other eligible fund or
account or for any other eligible purpose, as described more particularly in certificates or
documents delivered in conjunction with the delivery of the First Amended and Restated Bonds.
Section 5. Tax Matters.
5.0K. General Covenants. The Issuer covenants and agrees with the owners from time
to time of the First Amended and Restated Bonds that it will not take or permit tobe taken 6%
mo), of its officers, employees or agents any action which would cause the interest uothe First
Amended and Restated Bonds to become includable io gross income for federal income tax
purposes under the Internal Revenue Code of 1986, as amended 8he "Code"), and applicable
Treasury Regulations (the "Regu|etioms"), and covenants to take aoI and all actions within its
powers to ensure that the interest on the First Amended and Restated Bonds will not boco/np
includable in gross income for federal incorne tax purposes under the Code and the Regulations.
The Projects and the System are each owned and maintained by the Issuer and available for use
hy members nf the general public moa substantially equal basis. The Issuer agrees not 1venter
into any |uume, use or other agreement with any omo-gwneomrocotaA person relating 1othe use of
the Projects orthcSymiczoorwccurityfbrUhe payment ofthe First Amended and Restated Bonds
which might cause the First Amended and Restated Bonds to be considered "private activity
bonds" or"Private loan bonds"within the meaning nf Section l4lnf the Code.
5.02. Arbitraize Rebate. The City acknowledges that the First Amended and Restated
Bonds are subject tm the rebate requirements nf Section l48(f) of the Code. The City covenants
and agrees tn retain such records, make such d#1mrnmi nations, file such reports and documents and
pay such amounts at such times as are required under said Section 148(f) and applicable
Treasury Regulations to preserve the exclusion of interest om the First Amended and Tle:1a1md
Bonds from gross income for federal income tax purposes. In furtherance of the foregoing, the
Mayor, the City Finance Director, and the City Clerk are hereby authorized and directed to
execute m Rebate Certificate, substantially inthe form nf the Rebate Certificate prepared hvl�ood
Counsel and the <�ityhereby covenants and agrees tu observe and perfhrm� the covenants and
agreements contained therein, unless enncodmU or terminated in accordance with the provisions
1hercof.
5.03. Certification. The Mayor, the City Finance I)i[eo1or^ and tho City Clerk of tile
Issuer, being the officers of the Issuer charged with the responsibility for issuing the First
-5-
Amended and Restated Bonds pursuant to this resolution, are authorized and directed to execute
and deliver to the DNRC certifications tosatisfy the provisions o{Sections 1.148-2(b) of the
Treasury Regulations relating 1oa reasonable expectation that the proceeds o[the First Amended
and Restated Bonds will be used iomon000er that will not cause Uhorotobc arbitrage bonds,
5.04. Information ReportiLig. The Issuer shall fi}c with the Secretary oftile Treasury.
not later than November 15, 2013, n etndonmeo1 concerning the First Amended and Restated
Bonds containing the }nKormodno required by Section 149(e) of tile Code.
5.05. No Bank Qualification.or Counting-of Reissued Bonds Toward Qualified Small
Status.Issuer . , the extent -the First Amended and Restated Bonds constitute ^ ,e/suumuccw/ the
Prior Bonds, such nriouuanctiondtcroed current refunding. The principal amount ofthe First
Amended and Restated Bonds that constitutes a reissuance does not exceed the principal amount
of the nm7xtomdiog Prior Elmmdo being reissued. Accordingly, pursuant in Section
265/b\(3)(C)(iU8}0mf the Code, that portion ofthe First Amended and Restated Bonds that
constitutes a ,eisumaocc is hereby not taken into mcoomm1 in determining the ]oowcr^m status as a
qualified small issuer under Section 265(b)/3\ of the Code. The First Amended and Restated
Bonds are not designated me "qualified tax-exempt mh\jgati*om."
Section 6. Pro rarn Covenants. The Issuer agrees that (i) neither iT nor any"related
perpon"tothc Issuer(within the meaning ofSection l47(a)/2\ nf the Code) shall, whether
pursuant tou formal or informal arrangement, acquire bonds issued by the State under the Trust
Indenture for the Program in an amount related to the amount of the First Amended and Restated
Bonds; and (ii) that portion ofthe issuance o[the First Amended and Restated Bonds that imu
reinnuamccof the Prior Bonds constitutes a ^^deennmd" refunding of the Prior Bonds effective aso[
the date nf delivery o{the First Amended and Restated Bonds and, as tn that portion, the DNRC
shall bcdecnocd to have relent the proceeds of the Prior Bonds under the Program to the Issuer
effective asofsuch date,
Section 7. Certification and Effective Date,
7'01. Certification. The officers of tile Issuer are authorized and directed to prepare and
furnish to dbo Dl4RC and to the attorneys rendering an opinion as to The legality of the First
Amended and Restated Bonds, certified copies of all ordinances, resolutions and records and
such other certificates, affidavits and ot/zc[ instruments as may be required to evidence the
validity, status of tax-exempt interest, or marketability o[the First Amended and Restated Bonds
and all such certified copies, certificates and affidavits shall constitute representati oils of the
Issuer onto the truth ofall statements n[fact contained therein,
7.02. Effective Date. This resolution shall be in full force and effect from and after its
passage. The amendments to the First Amended and Restated Bonds noted herein, however,
shall be effective only from and after the date of delivery of the First Amended and Restated
Bonds.
-6-
Adopted by the City CoInnroission of the City of Bozeman, Montana, on this 5th day of
August., 2013.
J � a
4VI Mayor
Attest.
City e1 "
co
(SEAL)
-7-
REGISTRATION AND TRANSFER
This Bond ahuJ| be fully registered as to both principal and interest. No trmmmter of this
Bond shall be valid unless and until (1) the registered holder of the Bond. or his duly authorized
ottonncynr }cgm| n:prcneotm1ive, rxecotcs1hefonnofoasignncm1sppeariogmnihioBoud, uud (2)
the City Finance Director. as bond registrar (the "Registrar"), has duly noted the transfer oil the
Bond and recorded the transfer oil the Registrar's registration books. The Issuer shall bcentitled
to dmon and treat the person in vv6osc name this Bond is registered as absolute owner thereof for
all purposes, notwithstanding any notice tothe contrary, Payments Vn account mfthe Bond abo|[
be made only to the order of the registered holder thereof, and all such Peyconu1s shall be valid
and effectual to ao1imfv and discharge the Issuer's liability upon the Bond to the extent of the sum
mrmu/na so paid.
REGISTER
The ownership of the unpaid Principal Balance of this Bond and the interest accruing
thoo:om is ccgi0(crod oil the books of the City of Bozeman, Montana in the oaroc of the registered
holder appearing on the first page hereof orus last noted bc}nvv:
Date of Name and Address Signature of
Registration of Registered Holder City Finance Director
oe
Augu,st..2. .... 2013 Department of Natural
Resour�es and Conservation
1625 Eleventh Avenue
Helena...MT 59620
THE FOLLOWING EY4?[{}2S ARE TO BE MADE ONLY BY THE BOND
REGISTRAR UPON REGISTRATION 0FEACH TRANSFER
The City Finance Director of the City of Bozernan, Montana, acting as Bond Registrar,
has transferred. oil the books of the Issuer, oo the date 1un�omt�d ���ovv, ovvmcos}�ipofthe
principal amount ofand the accrued interest on this Bond to the new registered holder noted next
to such date, except for amounts o[principal and interest theretofore paid.
Date of
Transfer Narne of New Registered Holder Signature of Bond Registrar
A-5-
FORM OF ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto
the within Bond and does hereby
irrevocably constitute and appoint attorney to transfer
the Bond on the books kept for the registration thereof, with full power of substitution in the
premises.
Dated:
Notice: The assignor's signature to this assignment must
correspond with the name as it appears upon the face of
the within Bond in every particular, without alteration or
any change whatsoever,
A-6-
SCHEDULE A
Loan Loss
Administrative Reserve Total Loan
Date Principal Interest Expense Surcharge SurchAMe Payment
A-7-
APPENDIX B
[FORM OF FIRST AMENDED AND RESTATED SERIES 2010D BOND]
UNITED STATES OF AMERICA
STATE OF MONTANA
COUNTY OF GALLATIN
CITY OF BOZEMAN
FIRST AMENDED AND RESTATED
SEWER SYSTEM REVENUE BOND
(DNRC WATER POLLUTION CONTROL STATE REVOLVING LOAN PROGRAM)
SERIES 201 OD
No. R-2 $8,308,000
FOR VALUE RECEIVED, T HE CITY OF BOZEMAN, MONTANA (the
"City"), a duly organized municipal corporation and political subdivision of the State of
Montana, acknowledges itself to be specially indebted and, for value received, hereby promises
to pay to the Department of Natural Resources and Conservation of the State of Montana (the
"DNRC"), or its registered assigns, solely from the Revenue Bond Account of its Sewer System
Fund, the principal sum of$8,308,000, with interest on such arnount from the date hereof at the
rate of two percent (2.00%) per annum on the unpaid balance until paid. In addition, the City
shall pay an Administrative Expense Surcharge and a Loan Loss Reserve Surcharge on t he
outstanding principal amount of this Bond at the rates of seventy-five hundredths of one percent
(0.75%) and twenty-five hundredths of one percent (0.25%), respectively, per annum. Interest
and Administrative Expense Surcharge and Loan Loss Reserve Surcharge shall be payable in
semiannual installments payable on each January I and July I (each a "Loan Repayment Date")
commencing January 1, 2014. Each installment shall reflect an interest rate of three percent
(3.00%) per annum and shall be in the amount set forth opposite its due date in Schedule A
hereto under "Total Loan Payment." The portion of each such payment consisting of principal.
the portion consisting of interest. the portion consisting of Administrative Expense Surcharge
and the portion consisting of Loan Loss Reserve Surcharge shall be as set forth in Schedule A
hereto. Past-due payments of principal, interest, Administrative Expense Surcharge, and Loan
Loss Reserve Surcharge shall bear interest at the rate of ten percent (10.00%) per annum, until
paid. Interest, Administrative Expense Surcharge, and Loan Loss Reserve Surcharge shall be
calculated on the basis of a 360-day year comprising 12 months of 30 days each. All payments
under this Bond shall be made to the registered holder of this Bond, at its address as it appears on
the Bond register, in lawful money of the United States of America.
This Bond constitutes a series in the maximum authorized principal amount of
$9,500,000 (the "Series 201 OD Bond"), issued to finance a portion Of the costs of construction of
certain improvements to the sewer system of the City (the "System"), to make a d eposit to a
reserve account for the Bonds and to pay costs of issuance of the Series 201 OD Bond. The Series
2010D Bond is 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 7,
B-1-
Pail 44 and 45, as mmnmdcd, and resolutions duly adopted by the governing body of tile Cityt
including Resolution No. 432Oduly enacted hw the City Commission un November }0. 2RO9^ un
amended and supplemented by Resolution Nos. 4234, 4245,4254, 4299, and 4462 adopted oil
]monory 19, 2010, February 16, 2010, May 3, 20]0, November 1, 2010, and August 5, 2013~
respectively (tile Original Resolution, moom amended and supplemented, the ^^FteaV}u1iom"). The
Series 2O|0C Bond iuissmab)o only ama single, fully registered bond. The Series 2Al0[) Bond im
issued on a parity and is equally and ratably secured by the Net Revenues of the System with the
City's outstanding $359,3DO Sewer System Revenue Bond (DNRC Water Pollution Control State
Revolving Loan Program), Series 2010B (the ^^6criea 20108 Bond'*), First /\oomodod and
Bcm1atmd Sewer System f(cvcouc Bond (IJN]lC Water Pollution Control State Revolving Loan
Program), Series 201 O (the "Series 201 O Bond"), First Amended and Restated Sewer System
Revenue Bond (DNRC Water Pollution Control State Revolving Loan Program), Series 201 OF
(dmc "Series 201UF Bond"), First Amended and Restated Scvvcr Byotero TleYeooc Bond (DNRC
Water Pollution Control State Revolving Loan Program), Series 20IOG (the "Series 201QG
Bond"), and First Amended and Restated Sewer System Revenue Bond ([}NQC Water Pollution
Coo1zv] State Revolving Loan Poogromn), Series 20lOff (the "Series 2Ol0H Bond"). The Series
2010C Bond, the Series 2O|OF Bond, tile Series 20]8{} Bond, and the Series 2010H Bond are
being issued simultaneously herewith.
Ac0:,cnoe is made to the Resolution for arno,e complete r1a1ernco1 of the terms
and conditions upon which the Series 20101] Bond has been issued, tile Net Revenues of the
System pledged and appropriated for the payment and security thoromf, the conditions upon
vv6icb additional bonds may be issued under the Deomlm<iuo and made payable f}nnz such Net
Revenues on parity with the Series 201 O Bond, the Series 201 0C Bond, tile Sccima 201 OD
Bond, the Series 2OlOF Bond` the Series 20l O(] Bond, and the Series 2010B| Bond (collectively,
the °^0omds`) or otherwise, the conditions upon which the RemV]otimo may be amended, the
rights, duties and obligations of the City, and the rights of the owners of the Series 20l0DBond.
The City may prepay the principal nf the Series 2Ol0I) Bond only if(i) itobtains
the prior written consent of the I>NQC thereto, and (ii) no Loan Repayment or Administrative
Expense Surcharge or Loan l.ouo f<cxervc Surcharge is dzeo delinquent. /\ ny pnnpaYonmn1
permitted by the [}NRC moyJ be accompanied by payroeot of accrued iotmccmi and
Administrative Expense Surcharge and Loan Loss Reserve Surcharge tothe dmdc of prepayment
oil the mn000t of principal pncpaid, If the Series 2010[) Bond is prepaid in part, such
prepayments shall be applied to principal payments in inverse order of maturity.
The Bonds, including io1emcmt and any prenniunm for the redemption thorcof, are
payable nmloUy from the Net flcveuocm pledged for the pnyrnooL thereof and do not constitute u
debt of the City within the meaning of any constitutional, statutory or c}ze,tor limitation or
provision.
The City may dcemo and treat the person iu whose omozo this Series 20]0D Bond io
registered as the ahumlu1n owner hereof, whether this Sczioa 201 OD Bond is overdue or not, for
the purpose of receiving payrilent and for all other purposes, and the City shall not be affected by
any notice to the contrary.
B-2-
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that
the City has fixed and established and will collect reasonable rates and charges for the services
and facilities afforded by the System, and has created a special Sewer Systern Fund into which
the gross revenues of the System, including all additions thereto and replacernents and
improvements thereof, will be paid, and a separate and special Revenue Bond Account in that
fund, into which will be paid each month, Net Revenues of the Systern then on hand (the gross
revenues remaining after the payment of Operating Expenses of the System), in an arnount equal
to not less than the surn of one-sixth of the interest due within the next six months and one-
twelfth of the principal due within the next twelve months with respect to all Outstanding Bonds
payable semi-annually from that account, and a Reserve Account (the "Reserve") into which
shall be paid additional Net Revenues sufficient to establish and maintain a reserve therein equal
to, as of the date of calculation, the Reserve Requirement; that the Revenue Bond Account and
the Reserve will be used only to pay the principal of, prernium, if ally, and interest on the Bonds
issued pursuant to the authority herein recited; that the rates and charges for the Systern will from
tirne to tirne be made and kept sufficient to provide gross income and revenues adequate to pay
promptly the reasonable and current expenses of operating and maintaining the System and to
produce in each fiscal year Net Revenues in excess of such current expenses equal to 125% of
the principal and interest payable from the Revenue Bond Account in any subsequent fiscal year,
to maintain the balance in the Reserve at the Reserve Requirement, to pay promptly the
reasonable and current expenses of operating and maintaining the System, to pay the principal of
and interest on any Subordinate Obligations and to provide reserves for the replacement and
depreciation of the System; that additional Bonds and refunding Bonds may be issued and made
payable frorn the Revenue Bond Account on a parity with the Bonds upon certain conditions set
forth in the Resolution but no obligation will be otherwise incurred and made payable frorn the
Net Revenues, unless the lien thereof shall be expressly made subordinate to the lien of the
Bonds and other additional Bonds on such Net Revenues; that all provisions for the security of
this Series 201 OD Bond set forth in the Resolution will be punctually and faithfully performed as
therein stipulated; that all acts, conditions and things required by the Constitution and laws of the
State of Montana and the ordinances and resolutions of the City to be done, to exist, to happen
and to be performed in order to make this Series 2010D Bond a valid and binding special
obligation of the City according to its terms have been done, do exist, have happened and have
been performed as so required; and that this Series 2010D Bond and the premium, if an),, and
interest hereon are payable solely from the Net Revenues of the Systern pledged and
appropriated to the Revenue Bond Account and do not constitute a debt of the City within the
meaning of any constitutional, statutory or charter limitation or provision and the issuance of the
Series 2010D Bond does not cause either the general or the special indebtedness of the City to
exceed any constitutional, statutory or charter limitation.
13-3-
IN WITNESS WHEREOF, the City of Bozeman, Montana, by its governing body, has
caused this Bond to be executed by the signatures of its signatures of the Mayor, the City
Finance Director, and the City Clerk, and has caused the official seal of the City to be affixed
hereto, and has caused this Bond to be dated as of the 21 st day of August, 2013.
Mayor
0
(SEAL) -5
Ci inanceD' e tor
City Jerk, DO-P"-I)
B-4-
REGISTRATION AND TRANSFER
This Bond shall be full), registered as to both principal and interest. No transfer of this
Bond shall be valid unless and until (1) the registered holder of the Bond, or his duly authorized
attorney or legal representative, executes the form of assignment appearing on this Bond, and (2)
the City Finance Director, as bond registrar (the "Registrar"), has duly noted the transfer on the
Bond and recorded the transfer on the Registrar's registration books. The Issuer shall be entitled
to deem and treat the person in whose narne this Bond is registered as absolute owner thereof for
all purposes, notwithstanding any notice to the contrary. Payments on account of the Bond shall
be made only to the order of the registered holder thereof, and all such payments shall be valid
and effectual to satisfy and discharge the Issuer's liability upon the Bond to the extent of the surn
or sums so paid.
REGISTER
The ownership of the unpaid Principal Balance of this Bond and the interest accruing
thereon is registered on the books of the City of Bozeman, Montana in the name of the registered
holder appearing on the first page hereof or as last noted below:
Date of Name and Address Signature of
Registration of Registered Holder City Finance Director
August 21, 2013 Department of Natural
Resources and Conservation
1625 Eleventh Avenue
Helena, MT 59620
THE FOLLOWING ENTRIES ARE TO BE MADE ONLY BY THE BOND
REGISTRAR UPON REGISTRATION OF EACH TRANSFER
The City Finance Director of the City of Bozeman, Montana, acting as Bond Registrar,
has transferred, on the books of the Issuer, on the date last noted below, ownership of the
principal amount of and the accrued interest on this Bond to the new registered holder noted next
to such date, except for amounts of principal and interest theretofore paid.
Date of
Transfer Narne of New Registered Holder Signature of Bond Registrar
B-5-
FORM OF ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto
the within Bond and does hereby
irrevocably constitute and appoint attorney to transfer
the Bond on the books kept for the registration thereof, with full power o[Substitution in the
pccnnzmem.
Dated:
Notice, The assignor's signature {o this assignment roust
correspond with the onrueumit appears upon the face n[
the within Bond in every paoioulmr, without alteration or
any change whatsoever.
ff-6-
SCHEDULE A
Lean Loss
Administrative Reserve Total Loan
Date Principal Interest Expense Surcharge Surcharge Pa rent
B-7-
APPENDIX C
[FORM OF FIRST AMENDED AND RESTATED SERIES 2010F BOND]
UNITED STATES OF AMERICA
STATE OF MONTANA
COUNTY OF GALLATIN
CITY OF BOZEMAN
FIRST AMENDED AND RESTATED
SEWER SYSTEM REVENUE BOND
(DNRC WATER POLLUTION CONTROL STATE REVOLVING LOAN PROGRAM)
SERIES 2010E
No. R-2 $729,000
FOR VALUE RECEIVED, T HE CITY OF BOZEMAN, MONTANA (the
-City"), a duly organized municipal corporation and political subdivision of the State of
Montana, acknowledges itself to be specially indebted and, for value received, hereby promises
to pay to the Department of Natural Resources and Conservation of the State of Montana (the
"DNRC"), or its registered assigns, solely from the Revenue Bond Account of its Sewer System
Fund, the principal sum of $729,000, with interest on such amount from the date hereof at the
rate of two percent (2,00%) per annum on the unpaid balance until paid. In addition, the City
shall pay an Administrative Expense Surcharge and a Loan Loss Reserve Surcharge on t lie
outstanding principal amount of this Bond at the rates of severity-five hundredths of one percent
(0.75%) and twenty-five hundredths of one percent (0.25%), respectively, per annum. Interest
and Administrative Expense Surcharge and Loan Loss Reserve Surcharge shall be payable in
semiannual installments payable on each January I and July I (each a "Loan Repayment Date")
commencing January 1, 2014. Each installment shall reflect an interest rate of three percent
(3,00%) per annum and shall be in the amount set forth opposite its due date in Schedule A
hereto under "Total Loan Payment." The portion of each such payment consisting of principal,
the portion consisting of interest, the portion consisting of Administrative Expense Surcharge,
and the portion consisting of Loan Loss Reserve Surcharge shall be as set forth in Schedule A
hereto. Past-due payments of principal, interest, Administrative Expense Surcharge, and Loan
Loss Reserve Surcharge shall bear interest at the rate of ten percent (10.00%) per annum, until
paid. Interest, Administrative Expense Surcharge, and Loan Loss Reserve Surcharge shall be
calculated on the basis of a 360-day year comprising 12 months of 30 days each. All payments
Linder this Bond shall be made to the registered holder of this Bond, at its address as it appears on
the Bond register., in lawful money of the United States of America.
This Bond constitutes a series in the maximum authorized principal amount of
$816,000 (the "Series 201 OF Bond"), issued to finance a portion of the costs of construction of
certain improvements to the sewer system of the City (the "System"), to make ad eposit to a
reserve account for the Bonds and to pay costs of issuance of the Series 2010E Bond, The Series
2010E Bond is 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 7,
C-1-
Part 44 and 45, as amended, and resolutions duly adopted by the governing body of the City,
including Resolution No. 4220 duly enacted by the City Commission on November 16, 2009, as
amended and supplemented by Resolution Nos, 4234, 4245, 4254, 4299, and 4462 adopted on
January 19, 2010, February 16, 2010, May 3, 2010, November 1, 2010.. and August 5, 2013,
respectively (tile Original Resolution, as so amended and supplemented, the "Resolution"). The
Series 20100 Bond is issuable only as a single, fully registered bond. The Series 2010E Bond is
issued on a parity and is equally and ratably secured by the Net Revenues of the System with the
City's outstanding $359,300 Sewer System Revenue Bond (DNRC Water Pollution Control State
Revolving Loan Program), Series 2010B (the "Series 201013 Bond"), First Amended and
Restated Sewer System Revenue Bond (DNRC Water Pollution Control State Revolving Loan
Program), Series 20100 (the "Series 20100 Bond"), First Amended and Restated Sewer System
Revenue Bond (DNRC Water Pollution Control State Revolving Loan Program), Series 201 OD
(the "Series 201OD Bond"), First Amended and Restated Sewer System Revenue Bond (DNRC
Water Pollution Control State Revolving Loan Program), Series 20100 (the "Series 201OG
Bond"), and First Amended and Restated Sewer System Revenue Bond (DNRC Water Pollution
Control State Revolving Loan Program), Series 201 OH (the "Series 201 OH Bond"). The Series
20100 Bond, the Series 201 OD Bond, tine Series 2.010E Bond, and the Series 201OH Bond are
being issued simultaneously herewith.
Reference is made to the Resolution for a more complete statement of the terms
and conditions upon which the Series 2010E Bond has been issued, the Net Revenues of the
System pledged and appropriated for the payment and security thereof, the conditions upon
which additional bonds may be issued under the Resolution and made payable frorn such Net
Revenues on a parity with the Series 201 OB Bond, the Series 201 OC Band, the Series 201 OD
Bond, the Series 201 OF Bond, the Series 201 OG Bond, and the Series 201 OH Bond (collectively,
the "Bonds") or otherwise, the conditions upon which the Resolution may be amended, the
rights, duties and obligations of the City, and the rights of the owners of the Series 2010E Bond.
The City may prepay the principal of the Series 201 OF Bond only if(i) it obtains
the prior written consent of the DNRC thereto, and (ii) no Loan Repayment or Administrative
Expense Surcharge or Loan Loss Reserve Surcharge is then delinquent. A ny prepayment
permitted by the DNRC must be accompanied by payment of accrued interest and
Administrative Expense Surcharge and Loan Loss Reserve Surcharge to the date of prepayment
on the amount of principal prepaid. If the Series 2010E Bond is prepaid in part, such
prepayments shall be applied to principal payments in inverse order of maturity.
The Bonds, including interest and any premium; for the redemption thereof, are
payable solely from the Net Revenues pledged for the payment thereof and do not constitute a
debt of the City within the meaning of any constitutional, statutory or charter limitation or
provision.
The City may deem and treat the person in whose name this Series 201 OF Bond is
registered as the absolute owner hereof, whether this Series 201 OF Bond is overdue or not, for
the purpose of receiving payment and for all other purposes, and the City shall not be affected by
any notice to the contrary.
C-2-
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that
the City has fixed and established and will collect reasonable rates and charges for the services
and facilities afforded by the System, and has created a special Sewer System Fund into which
the gross revenues of the System, including all additions thereto and replacements and
improvements thereof. will be paid, and a separate and special Revenue Bond Account in that
fund, into which will be paid each month, Net Revenues of the System then on hand (the gross
revenues remaining after the payment of Operating Expenses of the System), in an amount equal
to not less than the sum of one-sixth of the interest due within the next six months and one-
twelfth of the principal due within the next twelve months with respect to all outstanding Bonds
payable semi-annually from that account, and a Reserve Account (the "Reserve") into which
shall be paid additional Net Revenues sufficient to establish and maintain a reserve therein equal
to, as of the date of calculation, the Reserve Requirement; that the Revenue Bond Account and
the Reserve will be used only to pay the principal of, premium, if any, and interest on the Bonds
issued pursuant to the authority herein recited; that the rates and charges for the System will from
time to time be made and kept sufficient to provide gross income and revenues adequate to pay,
promptly the reasonable and current expenses of operating and maintaining the System and to
produce in each fiscal year Net Revenues in excess of such current expenses equal to 125% of
the principal and interest payable from the Revenue Bond Account in any subsequent fiscal year,
to maintain the balance in the Reserve at the Reserve Requirement, to pay promptly the
reasonable and current expenses of operating and maintaining the Systern, to pay the principal of
and interest oil a ny Subordinate Obligations and to provide reserves for the replacement and
depreciation of the System; that additional Bonds and refunding Bonds may be issued and made
payable frorn the Revenue Bond Account on a parity with the Bonds upon certain conditions set
forth in the Resolution but no obligation will be otherwise incurred and made payable from the
Net Revenues, unless the lien thereof shall be expressly made subordinate to the lien of the
Bonds and other additional Bonds on such Net Revenues; that all provisions for the security of
this Series 201 OF Bond set forth in the Resolution will be punctually and faithfully performed as
therein stipulated; that all acts, conditions and things required by the Constitution and laws of the
State of Montana and the ordinances and resolutions of the City to be done, to exist, to happen
and to be performed in order to make this Series 201 OF Bond a valid and binding special
obligation of the City according to its terms have been done, do exist, have happened and have
been performed as so required; and that this Series 2010E Bond and the premium, if ally, and
interest hereon are payable solely frorn the Net Revenues of the System pledged and
appropriated to the Revenue Bond Account and do not constitute a debt of the City within the
meaning of any constitutional, statutory or charter limitation or provision and the issuance of the
Series 2010E Bond does not cause either the general or the special indebtedness of the City to
exceed any constitutional, statutory or charter limitation.
C-3-
IN WITNESS WHEREOF, the City of Bozeman, Montana, by its governing body, has
caused this Bond to be executed by the signatures of its signatures of the Mayor, the City
Finance Director, and the City Clerk, and has caused the official seal of the City to be affixed
hereto, .and has caused this Bond to be dated as of the 21 st day of August, 2013.
Mayor
vy
c
� C1t Finance D e for
ILA s1"1Tv Co
City lerlci
Y
C-4-
REGISTRATION AND TRANSFER
This Bond shall be fully registered as to both principal and interest. No transfer of this
Bond shall be valid unless and until (I) the registered holder of the Bond, or his duly authorized
attorney or legal representative, executes the form of assignment appearing on this Bond, and (2)
the City Finance Director, as bond registrar (the "Registrar"), has duly noted the transfer oil the
Bond and recorded the transfer oil the Registrar's registration books. The Issuer shall be entitled
to deem and treat the person in whose name this Bond is registered as absolute owner thereof for
all purposes, notwithstanding any notice to the contrary. Payments on account of the Bond shall
be made only to the order of the registered holder thereof, and all such payments shall be valid
and effectual to satisfy and discharge the Issuer's liability upon the Bond to the extent of the surn
or sums so paid.
REGISTER
The ownership of the unpaid Principal Balance of this Bond and the interest accruing
thereon is registered on the books of the City of Bozeman, Montana in the name of the registered
holder appearing on the first page hereof or as last noted below:
Z:�
Date of Narne and Address Signature of
Registration of Registered Holder City Finance Director
August 2 1. 2013 Department of Natural
Resources and Conservation
1625 Eleventh Avenue
Helena. MT 59620
THE FOLLOWING ENTRIES ARE TO BE MADE ONLY BY THE BOND
REGISTRAR UPON REGISTRATION OF EACH TRANSFER
The City Finance Director of the City of Bozeman, Montana, acting as Bond Registrar,
has transferred, on the books of the Issuer, on the date last noted below, ownership of the
principal amount of and the accrued interest on this Bond to the new registered holder noted next
to such date, except for amounts of principal and interest theretofore paid.
Date of
Transfer Name of New Refistered Holder Signature of Bond RegjqKE
C-5-
FORM OF ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto
the within Bo
irrevocably constitute and appoint Bond and does hereby.
attorney to transfer
the Bond on the books kept for the registration thereof, with full power of substitution in the
premises.
Dated:
Notice: The assignor's signature to this assignment must
correspond with the name as it appears upon the face of
the within Bond in every particular, without alteration or
any change whatsoever.
C-6-
SCHEDULE
Loan Loss
Administrative Reserve Total Loan
Date Principal Interest Expense Surcharge Surcharge Payment
C-7-
APPENDIX D
[FORM OF FIRST AMENDED AND RESTATED SERIES 201 OG BONDS�
UNITED STATES OF AMERICA
STATE OF MONTANA
COUNTY OF GALLATIN
CITY OF BOZEMAN
FIRST AMENDED AND RESTATED
SEWER SYSTEM REVENUE BOND
(DNRC WATER POLLUTION CONTROL STATE REVOLVING LOAN PROGRAM)
SERIES 201 OG
No. R-2 $3,558,000
FOR VALUE RECEIVED, T HE CITY OF BOZEMAN, MONTANA (the
"City"), a duly organized municipal corporation and political subdivision of the State of
Montana, acknowledges itself to be specially indebted and, for value received, hereby promises
to pay to the Department of Natural Resources and Conservation of the State of Montana (the
"DNRC"), or its registered assigns, solely from the Revenue Bond Account of its Sewer System
Fund, the principal surn of$3,558,000, with interest on such amount from the date hereof at the
rate of two percent (2.00%) per annum on the unpaid balance until paid. In addition, the City
shall pay an Administrative Expense Surcharge and a Loan Loss Reserve Surcharge on the
outstanding principal amount of this Bond at the rates of seventy-five hundredths of one percent
(0.75%) and twenty-five hundredths of one percent (0.25%), respectively, per annum. Interest
and Administrative Expense Surcharge and Loan Loss Reserve Surcharge shall be payable in
semiannual installments payable on each January I and July I (each a "Loan Repayment Date")
commencing January 1., 2014. Each installment shall reflect an interest rate of three percent
(3.00%) per annurn and shall be in the amount set forth opposite its due date in Schedule A
hereto under "Total Loan Payment." The portion of each such payment consisting of principal,
the portion consisting of interest, the portion consisting of Administrative Expense Surcharge,
and the portion consisting of Loan Loss Reserve Surcharge shall be as set forth in Schedule A
hereto. Past-due payments of principal, interest, Administrative Expense Surcharge, and Loan
Loss Reserve Surcharge shall bear interest at the rate often percent (10.00%) per annurn, until
paid. Interest, Administrative Expense Surcharge, and Loan Loss Reserve Surcharge shall be
calculated on the basis of a 360-day year comprising 12 months of 30 days each. All payments
under this Bond shall be made to the registered holder of this Bond, at its address as it appears on
the Bond register, in lawful money of the United States of America.
This Bond constitutes a series in the maximum authorized principal amount of
$3,903,000 (the "Series 201 OG Bond"), issued to finance a portion of the costs of construction of
certain improvements to the sewer system of the City (the "System"), to make a d eposit to a
reserve account for the Bonds and to pay costs of issuance of the Series 201 OG Bond. The Series
201 OG Bond is issued pursuant to and in full conformity with the Constitution and laws of the
State of Montana thercunto enabling, including Montana Code Annotated, Title 7, Chapter 7,
D-1-
Part 44 and 45, as amended, and resolutions duly adopted by the governing body of the City,
including Resolution No. 4220 duly enacted by the City Commission on November 16, 2009, as
amended and supplemented by Resolution Nos. 4234, 4245, 4254, 4299, and 4462 adopted on
January 19, 2010, February 16. 2010, May 3, 2010, November 1, 2010, and August 5, 2013,
respectively (the Original Resolution, as so arnended and supplemented, the "Resolution"). The
Series 2010C Bond is issuable only as a single, fully registered bond, The Series 2010G Bond is
issued on a parity and is equally and ratably secured by the Net Revenues of the System with the
City's outstanding $359,300 Sewer System Revenue Bond (DNRC Water Pollution Control State
Revolving Loan Program), Series 20108 (the "Series 2.010E Bond"), First Amended and
Restated Sewer System Revenue Bond (DNRC Water Pollution Control State Revolving Loan
Program), Series 2010C (the "Series 2010C Bond"), First Amended and Restated Sewer System
Revenue Bond (DNRC Water Pollution Control State Revolving Loan Program), Series 2010D
(the "Series 2010D Bond*'), First Amended and Restated Sewer System Revenue Bond (DNRC
Water Pollution Control State Revolving Loan Program), Series 2010F (the "Series 2010E
Bond"), and First Amended and Restated Sewer System Revenue Bond (DNRC Water Pollution
Control State Revolving Loan Program), Series 2010H (the "Series 2010H Bond"). The Series
2010C Bond, the Series 2010D Bond, the Series 2010F Bond, and the Series 2010H Bond are
being issued simultaneously herewith.
Reference is made to the Resolution for a more complete statement of the terms
and conditions upon which the Series 201OG Bond has been issued, the Net Revenues of the
System pledged and appropriated for the payment and security thereof, the conditions upon
which additional bonds may be issued under the Resolution and made payable from such Net
Revenues on a parity with the Series 20108 Bond, the Series 2010C Bond, the Series 2010D
Bond, the Series 201 OF Bond, the Series 20 1 OG Bond, and the Series 201 OH Bond (collectively,
the "Bonds") or otherwise, the conditions upon which the Resolution may be amended, the
rights, duties and obligations of the City, and the rights of the owners of the Series 2010E Bond.
The City may prepay the principal of the Series 2010E Bond only if(i) it obtains
the prior written consent of the DNRC thereto, and (ii) no Loan Repayment or Administrative
Expense Surcharge or Loan Loss Reserve Surcharge is then delinquent. A ny prepayment
permitted by the DNRC must be accompanied by payment of accrued interest and
Administrative Expense Surcharge and Loan Loss Reserve Surcharge to the date of prepayment
on the amount of principal prepaid. If the Series 2010G Bond is prepaid in part, such
prepayments shall be applied to principal payments in inverse order of maturity.
The Bonds, including interest and any premium for the redemption thereof, are
payable solely from the Net Revenues pledged for the payment thereof and do not constitute a
debt of the City within the meaning of any constitutional, statutory or charter limitation or
provision.
The City may deem and treat the person in whose name this Series 201 OG Bond is
registered as the absolute owner hereof, whether this Series 201 OG Bond is overdue or not, for
the put-pose of receiving payment and for all other purposes, and the City shall not be affected by
any notice to the contrary.
D-2-
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that
the City has fixed and established and will collect reasonable rates and charges for the services
and facilities afforded by the System, and has created a special Sewer System Fund into which
the gross revenues of the System, including all additions thereto and replacements and
improvements thereof, will be paid, and a separate and special Revenue Bond Account in that
fund, into which will be paid each month, Net Revenues of the System then on hand (tile gross
revenues remaining after the payment of Operating Expenses of the System), in an amount equal
to not less than the sum of one-sixth of the interest due within the next six months and one-
twelfth of the principal due within the next twelve months with respect to all outstanding Bonds
payable semi-annually from that account, and a Reserve Account (the "Reserve") into which
shall be paid additional Net Revenues sufficient to establish and maintain a reserve therein equal
to, as of the date of calculation, the Reserve Requirement; that the Revenue Bond Account and
the Reserve will be used only to pay the principal of, premium, if any, and interest on the Bonds,
issued pursuant to the authority herein recited; that the rates and charges for the System will from
tirne to time be made and kept sufficient to provide gross income and revenues adequate to pay
promptly the reasonable and current expenses of operating and maintaining the System and to
produce in each fiscal year Net Revenues in excess of such current expenses equal to 125% of
the principal and interest payable from the Revenue Bond Account in any subsequent fiscal year,
to maintain the balance in the Reserve at the Reserve Requirement, to Pay promptly the
reasonable and current expenses of operating and maintaining the System, to pay the principal of
and interest on a ny Subordinate Obligations and to provide reserves for the replacement and
depreciation of the System; that additional Bonds and refunding Bonds may be issued and made
payable from the Revenue Bond Account on a parity with the Bonds upon certain conditions set
forth in the Resolution but no obligation will be otherwise incurred and made payable from the
Net Revenues, unless the lien thereof shall be expressly made subordinate to the lien of the
Bonds and other additional Bonds on such Net Revenues; that all provisions for the security of
this Series 2010E Bond set forth in the Resolution will be punctually and faithfully performed as
therein stipulated; that all acts, conditions and things required by the Constitution and laws of the
State of Montana and the ordinances and resolutions of the City to be done, to exist, to happen
and to be performed in order to make this Series 201OG Bond a valid and binding special
obligation of the City according to its terms have been done, do exist, have happened and have
been performed as so required; and that this Series 2010G Bond and the premium, if any, and
interest hereon are payable solely from the Net Revenues of the System pledged and
appropriated to the Revenue Bond Account and do not constitute a debt of the City within the
meaning of any constitutional, statutory or charter limitation or provision and the issuance of the
Series 201 OG Bond does not cause either the general or the special indebtedness of the City to
exceed any constitutional, statutory or charter limitation.
D-3-
IN WITNESS W1-IEREOF, the City of Bozeman, Montana, by its governing body, has
caused this .Bond to be executed by the signatures of its signatures of the Mayor, the City
Finance Director, and the City Clerk, and has caused the official sea] of the City to be affixed
hereto, and has caused this Bond to be dated as of the 21st day of August, 2013.
Mayor
(SEAL)
B0
City inance Dire o
1883
Cit
y Clerk I
D-4-
REGISTRATION AND TRANSFER
This Bond shall be fully registered as to both principal and interest. No transfer of this
Bond shall be valid unless and until (1) the registered holder of the Bond, or his duly authorized
attorney or legal representative, executes the form of assignment appearing on this Bond., and (2)
the City Finance Director, as bond registrar (the "Registrar"), has duly noted the transfer on the
Bond and recorded the transfer on the Registrar's registration books. The Issuer shall be entitled
to deem and treat the person in whose name this Bond is registered as absolute owner thereof for
all purposes, notwithstanding an), notice to the contrary. Payments on account of the Bond shall
be made only to the order of the registered holder thereof, and all such payments shall be valid
and effectual to satisfy and discharge the Issuer's liability upon the Bond to the extent of the sun,
or surns so paid.
REGISTER
The ownership of the unpaid Principal Balance of this Bond and the interest accruing
thereon is registered on the books of the City of Bozeman, Montana in the name of the registered
holder appearing on the first page hereof or as last noted below:
Date of Name and Address Signature of
Registration of Registered Holder City Finance Director
August 21, 2013 Department of Natural
Resources and Conservation
1625 Eleventh Avenue
Helena. MT 59620
THE FOLLOWING ENTRIES ARE TO BE MADE ONLY BY THE BOND
REGISTRAR UPON REGISTRATION OF EACH TRANSFER
The City Finance Director of the City of Bozeman, Montana, acting as Bond Registrar,,
has transferred, on the books of the Issuer, on the date last noted below, ownership of the
principal amount of and the accrued interest on this Bond to the new registered holder noted next
to such date, except for amounts of principal and interest theretofore paid.
Date of
Transfer Name of New Registered Holder Si mature of Bond. Registrar
D-5-
FORM OF ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto
the within Bond and does hereby
irrevocably constitute and appoint attorney to transfer
the Bond on the books kept for the registration thereof with full power of substitution in the
premises.
Dated:
Notice: The assignor's signature to this assignment must
correspond with the narne as it appears upon the face of
the within Bond in every particular,without alteration or
any change whatsoever.
D-6-
SCHEDULE
Loan Loss
Administrative Reserve Total Loan
Date Principal Interest Ex ease Surcharge Surcharge Payment
D-7-
APPENDIX E
[FORM OF FIRST AMENDED AND RESTATED SERIES 2010H BOND]
UNITED STATES OF AMERICA
STATE OF MONTANA
COUNTY OF GALLATIN
CITY OF BOZEMAN
FIRST AMENDED AND RESTATED
SEWER SYSTEM REVENUE BOND
(DNRC WATER POLLUTION CONTROL STATE REVOLVING LOAN PROGRAM)
SERIES 201 OH
No. R-2 $8,692,000
FOR VALUE RECEIVED, THE CITY OF BOZEMAN, MONTANA (the
"City"), a duly organized municipal corporation and political subdivision of the State of
Montana, acknowledges itself to be specially indebted and, for value received, hereby promises
to pay to the Department of Natural Resources and Conservation of the State of Montana (the
"DNRC"), or its registered assigns, solely frown the Revenue Bond Account of its Sewer System
Fund, the principal sun? of$8,692,000, with interest on such amount from the date hereof at the
rate of two percent (2.00%) per annum on the unpaid balance until paid. In addition, the City
shall pay an Administrative Expense Surcharge and a Loan Loss Reserve Surcharge on the
outstanding principal amount of this Bond at the rates of seventy-five hundredths of one percent
(0.75%) and twenty-five hundredths of one percent (0.25%), respectively, per annum. Interest
and Administrative Expense Surcharge and Loan Loss Reserve Surcharge shall be payable in
semiannual installments payable on each January I and July I (each a "Loan Repayment Date")
commencing January 1. 2014. Each installment shall reflect an interest rate of three percent
(3.00%) per annum and shall be in the amount set forth opposite its due date in Schedule A
hereto under "Total Loan Payment." The portion of each such payment consisting of principal,
the portion consisting of interest, the portion consisting of Administrative Expense Surcharge,
and the portion consisting of Loan Loss Reserve Surcharge shall be as set forth in Schedule A
hereto. Past-due payments of principal, interest, Administrative Expense Surcharge, and Loan
Loss Reserve Surcharge shall bear interest at the rate of ten percent (10,00%) per annum, until
paid. Interest, Administrative Expense Surcharge, and Loan Loss Reserve Surcharge shall be
calculated on the basis of a 360-day year comprising 12 months of 30 days each. All payments
under this Bond shall be made to the registered holder of this Bond, at its address as it appears on
the Bond register, in lawful money of the United States of America,
This Bond constitutes a series in the maximum authorized principal amount of
$9,573,000 (the "Series 201 OH Bond"), issued to finance a portion of the costs of construction of
certain improvements to the sewer system of the City (the "Systern"), to make ad eposit to a
reserve account for the Bonds and to pay costs of issuance of the Series 201 OH Bond, The Series
201 OH Bond is 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 7,
E-1-
Part 44 a rid 45, as amended, and resolutions duty adopted by the governing body of the City,
including Resolution No. 4220 duly enacted by the City Commission on November 16. 2009, as
amended and supplemented by Resolution Nos. 4234, 4245, 4254, 4299, and 4462 adopted oil
January 19, 2010, February 16, 2010, May 3, 2010, November 1, 2010, and August 5, 2013,
respectively (the Original Resolution, as so amended and supplemented, the "Resolution*'), The
Series 201 OC Bond is issuable only as a single, fully registered bond. The Series 201 OH Bond is
issued on a parity and is equally and ratably secured by the Net Revenues of the System with the
City's outstanding $359.300 Sewer System Revenue Bond (DNRC Water Pollution Control State
Revolving Loan Program), Series 201 OB (the "Series 201 OB Bond"), First Amended and
Restated Sewer System Revenue Bond (DNRC Water Pollution Control State Revolving Loan
Program), Series 20 1 OC (the "Series 201 OC Bond"), First Amended and Restated Sewer System
Revenue Bond (DNRC Water Pollution Control State Revolving Loan Program), Series 201 OD
(tile "Series 2010D Bond"), First Amended and Restated Sewer System Revenue Bond (DNRC
Water Pollution Control State Revolving Loan Program), Series 2010F (the "Series 2010F
Bond"), and First Amended and Restated Sewer System Revenue Bond (DNRC Water Pollution
Control State Revolving Loan Program), Series 20106 (the "Series 2010G Bond"). The Series
201 OC Bond, the Series 201 OD Bond, the Series 201 OF Bond, and the Series 20100; Bond are
being issued simultaneously herewith.
Reference is made to the Resolution for a more complete statement of the terms
and conditions upon which the Series 201 OH Bond has been issued, the Net Revenues of the
System pledged and appropriated for the payment and security thereof, the conditions upon
-which additional bonds may be issued under the Resolution and made payable frorn such Net
Revenues on a parity with the Series 20 1 OB Bond, the Series 201 OC Bond, the Series 201 OD
Bond, the Series 201 OF Bond, the Series 201 OG Bond, and the Series 201 OH Bond (collectively,
the "Bonds") or otherwise, the conditions upon which the Resolution may be amended, the
rights, duties and obligations of the City, and the rights of the owners of the Series 201 OH Bond.
The City may prepay the principal of the Series 201 OH Bond only if(i) it obtains
the prior written consent of the DNRC thereto, and (ii) no Loan Repayment or Administrative
Expense Surcharge or Loan Loss Reserve Surcharge is then delinquent. A ny prepayment
permitted by the DNRC must be accompanied by payment of accrued interest and
Administrative Expense Surcharge and Loan Loss Reserve Surcharge to the date of prepayment
on the amount of principal prepaid. If the Series 2010H Bond is prepaid in part, such
prepayments shall be applied to principal payments in inverse order of maturity.
The Bonds, including interest and any premium for the redemption thereof, are
payable solely from the Net Revenues pledged for the payment thereof and do not constitute a
debt of the City within the meaning of any constitutional, statutory or charter limitation or
provision.
The City may deem and treat the person in whose name this Series 201 Oil Bond is
registered as the absolute owner hereof, whether this Series 201 OH Bond is overdue or not, for
the purpose of receiving payment and for all other purposes, and the City shall not be affected by
any notice to the contrary.
E-2-
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that
the City has fixed and established and will collect reasonable rates and charges for the services
and facilities afforded by the System, and has created a special Sewer System Fund into which
the gross revenues of the Systern, including all additions thereto and replacements and
imp•overrients, thereof, will be paid, and a separate and special Revenue Bond Account in that
fund, into which will be paid each month, Net Revenues of the Systern then on hand (the gross
revenues remaining after the payment of Operating Expenses of the Systern), in an amount equal
to not less than the sum of one-sixth of the interest due within the next six months and one-
twelfth of the principal due within the next twelve months with respect to all outstanding Bonds
payable semi-annually from that account, and a Reserve Account (the "Reserve") into which
shall be paid additional Net Revenues sufficient to establish and maintain a reserve therein equal
to, as of the date of calculation, the Reserve Requirement; that the Revenue Bond Account and
the Reserve will be used only to pay the principal of, premium, if any, and interest on the Bonds
issued pursuant to the authority herein recited; that the rates and charges for the System will frorn
time to time be made and kept sufficient to provide gross income and revenues adequate to pay
promptly the reasonable and current expenses of operating and maintaining the System and to
produce in each fiscal year Net Revenues in excess of such current expenses equal to 125% of
the principal and interest payable frorn the Revenue Bond Account in any subsequent fiscal year,
to maintain the balance in the Reserve at the Reserve Requirement, to pay promptly the
reasonable and current expenses of operating and maintaining the Systern, to pay the principal of
and interest on any Subordinate Obligations and to provide reserves for the replacernent and
depreciation of the System; that additional Bonds and refunding Bonds may be issued and made
payable frorn the Revenue Bond Account on a parity with the Bonds upon certain conditions set
forth in the Resolution but no obligation will be otherwise incurred and made payable from the
Net Revenues, unless the lien thereof shall be expressly made subordinate to the lien of the
Bonds and other additional Bonds on such Net Revenues-, that all provisions for the security of
this Series 201 OH Bond set forth in the Resolution will be punctually and faithfully performed as
therein stipulated; that all acts, conditions and things required by the Constitution and laws of the
State of Montana and the ordinances and resolutions of the City to be done, to exist, to happen
and to be performed in order to make this Series 2010H Bond a valid and binding special
obligation of the City according to its terms have been done, do exist, have happened and have
been performed as so required: and that this Series 201 OH Bond and the premium, if any, arid
interest hereon are payable solely frorn the Net Revenues of the System pledged and
appropriated to the Revenue Bond Account and do not constitute a debt of the City within the
meaning of any constitutional, statutory Or charter lirnitation or provision and the issuance of the
Series 201 OH Bond does not cause either the general or the special indebtedness of the City to
exceed any constitutional, statutory or charter limitation.
E-3-
IN WITNESS WHEREOF, the City of Bozeman, Montana, by its governing body, has
caused this Bond to be executed by the signatures of its signatures of the Mayor, the City
Finance Director, and the City Clerk, and has caused the official seal of the City to be affixed
hereto, and has caused this Bond to be dated as of the 21st day of August, 2013.
ayor
(SEAL)
jCiFinance i ector
t
City Jerk,-bapt
E-4-
REGISTRATION AND TRANSFER
This Bond shall be fully registered as to both principal and interest. No transfer of this
Bond shall be valid unless and until (1) the registered holder of the Bond, or his duly authorized
attorney or legal representative, executes the form of assignment appearing on this Bond, and (2)
the City Finance Director, as bond registrar (the "Registrar-), has duly noted the transfer on the
Bond and recorded the transfer on the Registrar's registration books. The Issuer shall be entitled
to deem and treat the person in whose name this Bond is registered as absolute owner thereof for
all purposes, notwithstanding any notice to the contrary. Payments on account of the Bond shall
be made only to the order of the registered holder thereof, and all such payments shall be valid
and effectual to satisfy and discharge the Issuer's liability upon the Bond to the extent of the sum
or sun-is so paid.
REGISTER.
The ownership of the unpaid Principal Balance of this Bond and the interest accruing
thereon is registered on the books of the City of Bozeman, Montana in the name of the registered
holder appearing on the first page hereof or as last noted below:
Date of Name and Address Signature of
Registration of Registered Holder C
Lity Finance Director
August 21, 2013 Department of Natural
Resources and Conservation
1625 Eleventh Avenue
Helena. NIT 59620
THE FOLLOWING ENTRIES ARE TO BE MADE ONLY BY THE BOND
REGISTRAR UPON REGISTRATION OF EACH TRANSFER
The City Finance Director of the City of Bozeman, Montana, acting as Bond Registrar,
has transferred, on the books of the Issuer, on the date last noted below, ownership of the
principal amount of and the accrued interest on this Bond to the new registered holder noted next
to such date, except for amounts of principal and interest theretofore paid.
Date of
Transfer Name of New Re ictered Holder Signature of Bond Registrar
E-5-
FORM OF ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto
the within Bond and does hereby
irrevocably constitute and appoint attorney to transfer
the Bond on the books kept for the registration thereof.with full power of substitution in the
premises.
Dated:.
Notice. The assignor's signature to this assignment must
correspond with the name as it appears upon the face of
the within Bond in every particular, without alteration or
any change whatsoever.
E-6-
SCHEDULE A
Loan loss
Administrative Reserve Total Loan
Date Principal Interest Expense Surcharge SurchgMe Pa}anent
-7-