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HomeMy WebLinkAbout09 02 1990 Ord. 340PROOF OF PUBLICATION STATE OF IDAHO County of Bannock ss. andra being first duly sworn on oath deposes and says: That sbe was at all times herein mentioned a citizen of the United States of Ameri- ca, more than 21 years of age, and the Principal Clerk of THE IDAHO STATE JOURNAL, a daily newspaper, printed and published at Pocatello, Bannock County, Idaho, and having a general circulation therein. That the document or notice, a true copy of which is attached, was published in the said IDAHO STATE JOURNAL, on the following dates, to -wit: 2 September 1g 90 19 19 , 19� 19 , 19 19— _ 19 19_ , 19— That said paper has been continuously and uninterruptedly published in said County for a period of seventy-eight weeks prior to the publication of said notice or advertisement and is a newspaper within the meaning of the laws of Idaho. �:v STATE Of IDAHO cou:tTY op Bannock On this 2nd day of .__September in the year of 1.990, before me, a Notary Public. personally appeared Sandra K. Wane known or identified to me to be the person whose na--c saLscribcd to the wichia instrument, and being by me first duly sworn, declared that the statesacuts therein are true, and acknowledged to me that he executed the same. Kot Public for Idaho Residing at !!y commission expires: 9 ,71 PUBLIC NOTICE EXHIBITA Public Notice of Adoption of Ordinance No. 340 of the City of Chubbuck, Bannock County, Idaho Notice is hereby given that on August i4, 1990, at a regular meeting of the City Council of the City of Chubbuck, said Council adopted Ordinance No. 340, entitled: AN ORDINANCE authorizing the issuance and confirming the sale of $500,000 General Obligation Fire Protection Bonds, Series 1990, of the City of Chubbuck, Bannock County, Idaho, fixing the interest rates to be borne thereby, providing for the levy of taxes to pay principal of and interest on said bands, providing for the use of the proceeds thereof, providing for a system of registration therefor, making certain findings and covenants in connection therewith, ratifying actions heretofore taken, making certain representations and certifications concerning the proceeds thereof, making certain representations and covenants concerning maintenance of the tax-exempt status of interest thereon under the federal tax laws, and providing for related matters. SUMMARY OF PRINCI PAL PROVISIONS OF ORDINANCE NO. 340 WHEREAS at the Bond Election duly called and held in the City on June i9, 1990, there was submitted to the qualified electors of the City the following proposition: Shall the City of Chubbuck, Idaho, issue and sell its general obligation bonds to the amount of $500,000 for the purpose of providing funds with which to acquire and construct a building site, building and suitable equipment and apparatus necessary for fire protection, such bonds to be payable from ad valorem taxes, as more fully provided in Ordinance Number 334 adopted on May 8,1990? WHEREAS more than two-thirds of the votes cast at the Bond Election were cast in favor of said proposition, as declared by the City Council, sitting as a Board of Convassers, on June 20, 1990, and the issuance of $500,000 General Obligation Fire Protection Bonds of the City was authorized at the Bond Election for the purpose set forth in said proposition; and WHEREAS none of the bonds voted at the Bond Election has heretofore been issued and delivered, and the City Council has determined to authorize the issuance and sale of $500,000 of said Bonds at this time; and WHEREAS pursuant to a resolution of the City Council adopted on July 10, 1990, a notice inviting sealed bids for the purchase of the bonds has been advertised by publication of a Notice of Intention to Sell Bonds in The Idaho State Journal, a newspaper published in Pocatello, Idaho, and of general circulation in the city, there being no newspaper published within the city, which newspaper is the official newpapaer of the City, on July 23, 1990, July 30, 1990 and August 6, 1990, and brought to the attention of potential purchasers, and the bids received pursuant to such notice have been tabulated, and the Bonds have been sold to D.A. Davidson and ISAAK Bond Investments, of Great Falls, Montana and Denver, Colorado, respectively, at the price of not less than par and accrued interest to the date of delivery; and WHEREAS in the opinion of the Mayor and City Council, it is to the best interests of the City that the bid of D.A. Davidson and iSAAK Bond Investments, of Great Falls, Montana and Denver, Colorado, respectively, for the purchase of the Bonds be accepted and the sale of the Bonds to D.A. Davidson and iSAAK Bond Ivestments, of Great Falls, Montana and Denver, Colorado, respectively, be ratified and confirmed; and WHEREAS the Mayor and City Council hereby find and determine that it is to the advantage of the City to sell the Bonds with such annual maturities and bearing interest at the rates herein set forth; and WHEREAS it is desired to provide for the details of the Bonds and the payment thereof; NOW, THEREFORE, Be it Ordained by the Mayor and City Council of the City of Chubbuck, Bannock County, Idaho, as follows: ARTICLE I DEFINITIONS 101. Definitions. As used in this Bond Ordinance, unless the context shall otherwise require, the following terms shall have the following meanings: "Act" means collectively the Municipal Bond Law of the State of Idaho, Chapter 2 of Title 57, Idaho Code, as amended, the Registered Public Obligations Act of Idaho, Chapter 9 of Title 57, Idaho Code, a$ amended, Sections 50-1019 to 50-1026, inclusive, Idaho Code, as amended, and all laws amendatory thereof or supplemental thereto. "Bond Account" means the Bond Account established in Section 212 hereof. "Bond Election" means the special bond election held in the city on June 19, 1990, at which the issuance and sale by the City of $500,000 of bonds was authorized for the purpose of financing the acquisi+ion and construction of a building site, building and suitable equipment and apparatus necessary for fire protection, in and for the City. "Bondholder" or "Holder" means the registered owner of any Bond as shown in the registration books of the City kept by the Band Registrar for such purpose. "Bond Ordinance" means this Ordinance No. 340 of the City Adopted on August 14, 1990, authorizing the issuance and sale of the Bonds. "Bond Registrar" means each Person appointed by the City as bond registrar and agent for the transfer, exchange and authentication of the Bonds. Pursuant to section 206 hereof the initial Bond Registrar is First Security Bank of Idaho, N.A., Boise, Idaho. "Bonds" means the $500,000 General Obligation Fire Protection Bonds, Series 1990, of the City authorized by this Bond Ordinance, "City" means the City of Chubbuck, Bannock County, Idaho, a municipal corporation organized and existing under the Constitution and laws of the State of Idaho, and its successors and assigns. "Clerk" means the City Clerkof the City. "Code" means the Internal Revenue Code of 1986, as amended. (See LEGAL NOTICE, IB -5) J I DAHO STAT E J 0 U RNAL POCAT E LLO-CH U B BUCK, I DAHO, SU N DAY, SE PT EMB E R 2, 1990 - SECT ON ES - FAG E 5 Nr ers. The Bond Ordinance constitutes a system of maintenance of a list of the names and addresses of the Bondholders. Public Obligations Act of Idaho. Upon surrender of his Bond to the registration for purposes of the Register ed exchange his Bond for a Bond Registrar, a Bondholder may transfer his Bond upon the registration books or may Cie (a) after the Record be required to be ma Pubfic Notices (Continued f rom 8-4) exchange shall Bond of another denomination. Na such transfer or exct date to and including such interest payment dale, or (b) after the - any other governing body of the City hereafter provided for ­6ounciv- means it: amity Council of the City, or 156tT with respect to any interest payment redemption of such bond. if a Bond is redeemed in part, upon surrender thereof Record Date with respect to any ri Bond for the unredeemed portion of the Bond pursuant to law. any Exchange Bond as defined in Section 209 hereof. Exchange Bond" means ct to the Bonds. Pursuant to respe the Bond Registrar shall deliver to the Bondholder a new surrendered. "Paying Agent" means each Person appointed by the City as paying agent with Section 206 hereofthe initial Paying Agent is First Security Bank of Idaho, N.A., Boise, Idaho. c bodies and other trusts, publi ARTICLE IV COVENANTS AND UNDERTAKINGS Section 149(a) of the Code requires the Bonds to be partnership, associations, corporations, "Person" means natural persons, firms, P 401. Bonds in Registered Form. The City recognizes that registered form in order that interest thereon be execmpt from federal 'income reig "Project" isition and construction of a building site, building and suitable equipment and entities, means the acquisition City. issued and to remain infvlly taxation under laws in force at the time the Bonds are delivered, In this connection, the city agrees that it will not in, converted into, bearer or coupon form. apparatus necessary for fire protection, in and for the hereof. "Project Account" meansthe Project Account established in Section 212 he close of b date, the Bond Registrar'sbusiness on take any action to permitthe Bonds to be issued or there 402. Levy of Taxes. To pay princil pai of and interest on the Bonds falling due to and including August 1, 1991, the City, in addition to all other taxes, a direct ad each interest payment "Record Date,, means (a) in the case of e the fifteenth day of the month next preceding such interest payment date, and (b) in the case of each redemption, in the notice of redemption required by Section 207 all taxable property within shall be levied in the year 1990 on h a valorem tax sufficient to produce the sum of $55,990.00, and thereafter there shall be levied on the taxable ad valorem tax in the years and amounts as such record date as shall be specified by the Bond Registrar date shall be not less than fifteen (15) calendar days before the mailing of such property in the City, in addition to all other taxes, a direct annual hereof, provided that such record notice of redemption. issued or proposed under Section 103, Section 148 or Section 149 of follows: Amount interest Total Year $34,190.00 $54,190.00 $20,000 "Regulations" means the Treasury Regulations Is of the Code relating to "arbitrage bonds" or rebate, including without the code (26 CFR Part 2) or other sections through 1.14-9T and J.150-1T, to the extent applicable, and 1991 32,390-00 57,390-00 1992 25,000 30,265.00 55,265.00 1.103-14r 1A03-15 , 1.148-OT limitation Section 1.103-13, or successor provisions. 'includes amendments thereto of the City which the City may execute in order to 25,000 1993 25,000 28,202.50 53,202.50 1994 56,265.00 26,265.00 "Tax Certificate" means any agreement or certificate on the Bonds. establish and maintain the tax-exempt status of interest receivedof Great Falls, Montana and Denver, 1995 30,000 54,345.00 1996 30,000 24,345.00 52,395.00 "Underwriter" means D.A. Davidson and ISAAK Bond investments, Colorado, respectively, the purchasers of the Bonds. d "herein," "hereunder," any similar terms as used in this Bon 1997 30,000 22,395-00 1998 20,415.00 55111115.00 35,000 53,070.00 The terms "hereby," "hereof," "hereto," and Ordinance, refer tothis BonclOrdinance. Ordinance is adopted pursuant to the provisions of the Act. 1999 35,000 18,070.00 55,690.00 2000 40,000 15,690,00 52,930.00 12,930.00 102, Authority for Bond Ordinance, This Bond ARTICLE 11 2001 55,150.00 45,000 10,150.00 AUTHORIZATION, TERMS AND ISSUANCE OF BONDS 2002 50,000 7,000.00 57,000-00 2003 31500.00 53,500.00 subject 201. Authorization of Bonds, Principal Amount, Designation and Series. In accordance with and bject to the limitations established in this Bond Ordinance, a series of bonds of the city is hereby 50000 2004 , Said taxes when collected shall be placed in a separate fund of account and shall be used for no other purpose on the Bonds as the same become due, �o long as any of terms, conditions and principal amount of $500,000. Such series of bonds shall be designated authorized to be issued in the aggregate in fully registered form, Bonds, Series 1990.11 The Bonds shall be issued than for the payment of the principal of and the interest i and unpaid, but nothing herein contained shall be construed to prevent the City the Bonds remain outstanding funds in its hands and lawfully available fu "General obligation Fire Protection from paying the *interest on or the principal of the Bonds from any other be diminished prior to payment of all of the Bonds without coupons. zed to be issued for the purpose of financing the Project. 202. purpose. The bonds are hereby authorized for that purpose; but the aforementioned taxes shall never except, in any year, to the extent that other available funds shall have been applied to or set 203. Dated Date. The Bonds shall be dated as of August 1, 1990. and shall be the dates and in the principal amounts bear interest herein authorized aside in a special fund to be irrevocably held for the payment of principal or interest or both payable from said 204. Bond Details. The Bonds shall mature on twelve 30-day months,) from August 1, 1990, payable (calculated on the basis of a year of 360 days and as shown semiannually on February I and August I of each year, commencing February 1, 1991, at the rates taxes for such year. I be in addition to all other taxes levied by the City, and shall be levied, assessed, The taxes herein levied shalt in the same year as other city taxes are levied, assessed and collected. The full( below: August I Amount Interest Rate certified, extended and collected pledged for the prompt payment of the principal faith and credit and all taxable property in the City are hereby provided shall be in due the tax levies to that end herein of the year Maturing Per Annum become and of and the interest on the Bonds as the same b , shall full force and effect, and forever remain so until the indebtedness hereby incurred, principal and interest 1991 $20,000 9.00% 20,000 9.00 have been fully paid, satisfied and discharged, except as hereinbefore provided, and any collection fees or interest thereon are to be paid by the City, and 1992 1993 25,000 8.50 charges made in connection with the payment of the Bonds and falling due at a time or times at which proceeds of the taxes herein levied are not such or interest fa the 1994 25,000 8.25 1995 25,000 7.75 any principal available in an amount sufficient to a pay such principal and interest shall be paid from the general funds of the said taxes when they shall have been collected. 1996 30,000 6.40 City and reimbursement to such funds made from proceedsof 403. Tax Covenant. (a) The Mayor, the Clerk and the City Treasurer of the City and other appropriate officials of 1997 30,000 6.50 1998 30,000 6.60 the City are each hereby authorized and directed to execute such Tax Certificates as shall be necessary to that the Bonds are not "arbitrage bonds" within the meaning of Section 148 of the code and the 1999 35,000 6.70 2000 35,000 6.80 establish Regulations and to establish that interest on the bonds is not and will not become subject to taxation under the to and for the benefit of the Bondholders that no 2001 40,000 6.90 code and applicable regulations. The City covenants and certifies be made of the proceeds of the issue and sale of the bonds, or any funds or accounts of the City which 2002 40,000 6.95 45,GOO 7.00 use will 0 ions, which use, if it may be deemed to be proceeds of the Bonds pursuant to Section 148 of the Code and Regulations, o be classified the Bonds, would have caused the Bonds t 2003 2004 50,000 7.00 had been reasonably expected on the date of issuance of 0 his covenant, the City obligates "arbitrage bonds" within the meaning of Section 148 of the Code. Pursuant t this 2005 50,000 7.00 Each Bond shall bear intersf from the interest payment date next preceding the date of registration and an interest payment date, in which event it as itself to comply throughout the term of the Bonds with the requirements of Section 148 of the Code and the regulations proposed or promulgated thereunder, take authentication thereof, unless it is registered and authenticated as of registered and authenticated prior to the firs interest from such interest payment date, or unless it is regis t tnd agrees to and for the benefit of the Bondholders that the City (i) will not (b) The City further covenants and nd interest the Bonds to be or to become ineligible for the exclusion from grass shall bear interest payment date, in which event it shall bear interst from its date, or unless, as -shown by the records of the be in default, in which event it shall bear interest from the date to any action that would cause on 1 omit e ()r c ause to be taken, in income of the Bondholders as provided in Section 103 of the Code, 01) will 01 omi n o take cause interest on the Bonds to Bond registrar, interest on the Bonds shall which interest has been paid in full. The Bond Registrar shall insert the date of registration and authentication of Bond Registrar's certificate of authentication on timely manner, any action which the City may legally take, which omission would be or to become ineligible for or the exclusion from gross income of the Bondholders as provided in Section 103 of each Bond in the place provided for such purpose in the form of To the extent permitted by law, the Bonds shall bear interest on overdue principal at the aforesaid the Code and (m) without limiting the genera lity of the foregoing, a) will not take any action which would cause "Private bond" within the meaning of Section 141 od the code or to fall each Bond. respective rates. Denominations and Numbers. The Bonds shall be issued as fully registered bonds, without coupons, in the the Bonds, or any Bond, the be a activity to meeting any applicable requirement of Section 149 of the Code and b} will not omit to take or cause to be the City may legally take, which omission would cause the Bonds, or 205. exceeding the amount of each maturity. The Bonds shall denomination of $5,000 or integral multiples thereof, not e from one (1) consecutively upward in order of 'issuance with the prefix "R" preceding each taken, in timely manner, any action which requirement of Section 149 of the Code. any bond, to be a "private activity bond" or to fail to meet any applicable i other appropriate officials of the City are each hereby be numbered number. 206. Paying Agent and Bond Registrar. First Security Bank of Idaho, N.A., Boise, Idaho, is hereby appointed the The Mayor, the Clerk and the City Treasurer and authorized and directed to execute such Tax Certificates as shall be necessity to establish that the Bonds are not "private bonds," that all applicable requirements of Section 149 of the Code are and Paying Agent and Bond Registrar for the Bonds. The City may remove any Paying Agent and any Bond sors thereto. Each Paying agent and each Registrar, and any successor thereto, and appoint a successor or sucCesI and will not become activity will be met, and that the covenants of the City contained in this Section 403(b) will be complied with. the benefit of the Bondholders that: (i) the City will at all times and for s imposed upon it by the Bond Ordinance Bond Registrar shall signify its acceptance of the duties and obligation and premium, if any, and The of (c) The City covenants and certifiesto comply with the provisions of any Tax Certificates and (ii) no bonds or other evidences of indebtedness of the 31 days by executing and delivering to the city a written acceptance thereof. principal interest on the Bonds shall be payable in any coin or currency of the United States of America which, at the Principal Of and City have been or will be sold within a period beginning 31 days prior to the sale of the Bonds and ending following the sale of the Bonds, and no Bonds or other evidences of indebtedness of the City have been or will be respective dates of payment thereof, is legal tender for the payment of public and private debts. due to the Holder of each bond at the principal corporate issued or delivered within a period beginning 31 days prior to the issuance or delivery of the Bonds and ending 31 premium, if any, on the Bonds shall be payable when trust office of the Paying Agent. Payment of interest on each Bond shall be made to the Person which, as of the draft mailed to such Holder, at the address days following the date of delivery of and payment for the Bonds. (d) The City hereby covenants to adopt, make, execute and enter into (and to take such actions, if any, as may be to with any Record Date, is the Holder of the Bond and shall be made by check or of such Holder as it appears on the registration books of the City kept by the Bond Registrar, or a t such other necessary to enable it to do so) any ordinance, resolution or Tax Certificate necessary comply changes in law or regulations in order to preserve the exclusion of interest on the Bonds from gross income of th address as is furnished to the Bond Registrar in writing by such Holder on or prior to the Record Date. optional Redemption and Redemption Price. Bonds maturing on and prior to August 1AW are not subject to e Hollers thereof for purposes of the federal income tax t the extent that it may lawfully do so. The City further o 0 to (a) impose such limitations on the investment or use of moneys or investment related to the Bonds, 207. call and redemption prior to maturity. Bonds maturing on and after August 1, 1998, are subject to redemption at any interest payment date Thereafter prior to maturity, in whole covenants (b) make such payments to the United States Treasury, (c) maintain such records, (d) perform such calculations as may be necessary to preserve the exclusion of interest on the Bonds from the option of the City on August 1, 1997, and on or in part, from such maturities or parts thereof as shall be selected by the City, upon notice given as provided (expressed as a percentage of the principal amount of Bonds to be and (e) perform such other acts gross income of the Holders thereof for purposes of the federal income tax and which it may lawfully do. the City obligates itself to comply throughout the term of the issue of the Bonds with below, at the following redemption prices redeemed), plus accrued interest to the date of redemption:Requiations. Pursuant to these covenants, the reauirements of Section 1()3 of the Code and the $5,00{). V, au" I Dull" uy Notice of redemption shall be given by the Bond Registrar by registered mail, not less than thirty (30) nor more than forty-five (45) days prior to the redemption date, to the Holder, as of the Record date, of each Bond which is subject to redemption, at the address of such Holder as it appears in the registration books of the City kept by the Bond Registrar, or at such other address as is furnished to the Bond Registrar in writing by such Holder on or prior to the Record Date. Each notice of redemption shall state the name of the Bonds, the Record date, the redemption date, the place of redemption, the principal amount, the redemption price and, if less than all, the distinctive numbers of the Bonds or portions of Bonds to be redeemed, and shall also state that the interest on the bonds designated for redemption in such notice shall cease to accrue from and after such redemption date and that on said date there will -become due and payable on each of said Bonds the principal of and interest accrued thereon to the redemption date, and premium, if any. Any notice mailed as provided in this Section 207 shall be conclusively presumed to have been duly given, whether or not the Bondholder receives such notice. Failure to mail such notice or any defect therein with respect to any bond shall not affect the validity of the proceedings for redemption of any other Bond. In addition to the foregoing notice, further notice shall be given by the Bond Registrar as set out below, but no defect in said further notice nor any failure to give all or any portion of such further notice shall in any manner affect the validity of a cal I for redemption if notice thereof is given as above prescribed. (a) Each further notice of redemption given hereunder shall contain the information required above for an official notice of redemption plus M the CUSIP numbers of all Bonds being redeemed; (ii) the date of issue of the Bonds as orginally issued; (iii) the rate of interest borne by each Bond being redeemed; ([v) the maturity date of each Bond being redeemed; and (v) any other descriptive information needed to indentify accurately the Bonds being redeemed. (b) Each further notice of redemption shall be sent at least 35 days before the redemption date by telecopy, registered or certified mail or overnight delivery service to various depository companies and rating agencies as set forth in full in the Bond Ordinance. (c) Upon the payment of the redemption price of Bonds being redeemed, each check or other transfer of funds issued for such purpose shall bear the CUSIP number or numbers identifying, by issue and maturity, the Bonds being redeemed with the proceeds of such check or other transfer. 208. Acceptance of Bid; Issuance and Sale of Bonds. The bid of the Underwriter for the purchase of the Bonds is hereby accepted, and under authority of the Act the bonds shall be issued by the City for the purpose set forth in Section 202 hereof. The sale of the Bonds to the Underwriter at the price of par and accrued interest to the date of delivery, plus a premium of $-0-, is hereby confirmed. 209. Execution of Bonds. The Bonds shall be executed on behalf of the City by the facsimile signature of the Mayor of the City, attested by the facsimile signature of the Clerk, and countersigned by the facsimile signature of the City Treasurer, and the facsimile of the official seal of the City shall be printed thereon. The certificate of the Clerk and the City Treasurer on the back of the Bonds shall be signed by the facsimile signatures of said Clerk and City Treasurer, respectively, with the facsimile of the official seal of the City printed thereon. The said officials and each of them are hereby authorized and instructed to execute the Bonds accordingly and the use of such facsimile signatures of said Mayor, Clerk and City Treasurer and such facsimile of the official seal of the City on the Bonds are hereby authorized, approved and adopted as the authorized and authentic execution, countersigning and sealing of the Bonds by said officials. The Bonds shall then be delivered to the bond Registrar for manual authentication by it. Only such of the Bonds as shall bear thereon a certificate of authentication, manually executed by the bond registrar, shall be valid or obligatory for any purpose or entitled to the benefits of this Bond Ordinance, and such certificate of the Bond Registrar shall be conclusive evidence that the bonds so authenticated have been duly authenticated and delivered under, and are entitled to the benefits of, this Bond Ordinance and that the Holder thereof is entilled to the benefits of this Bond Ordinance. The certificate of authentication of the Bond Registrar on any bond shall be deemed to have been executed by it if (a) such Bond is signed by an authorized officer of the Bond Registrar, but it shall not be necessary that the same officer sign the certificate of authentication on all of the Bonds issued hereunder or that all of the Bonds hereunder be authenticated by the same Bond Registrar, and (b) the date of regisration and authentication of the Bond is inserted in the place provided therefor on the certificate of authentication. The Mayor, Clerk and City Treasurer of the City are authorized to execute, attest, countersign and seal from time to time, in the manner described above, bonds (the "Exchange Bonds") to be issued and delivered for the purpose of effecting transfers and exchanges of Bonds pursuant to Article I I I hereof. At the time of the execution, attestation, countersigning and sealing of the Exchange Bonds by the city, the payee, principal amount, maturity and interest rate shall be in blank. Upon any transfer or exchange of Bonds pursuant to Article I II hereof, the bond registrar shall cause to be inserted in appropriate Exchange Bonds the appropriate payee, principal amount, maturity and interest rate. The Bond Registrar is hereby authorized and directed -to hold the Exchange Bonds, and to complete, authenticate and deliver the Echange Bonds, for the purpose of effecting transfers and exchanges of Bonds; provided that any Exchange Bonds authenticated and delivered by the Bond Registrar shall bear the same series, maturity and interest rate as Bonds delivered to the Bond Registrar for exchange or transfer, and shall bear the name of such payee as the Bondholder requesting an exhange or transfer shall designate; and provided further that upon the delivery of any Exchange Bonds by the Bond Registrar a like principal amount of Bonds submitted for transfer or exchange, and of like series and having like maturities and interest rates, shall be cancelled. The execution, attestation, countersinging and sealing by the City and delivery to the Bond Registrar of any Exchange Bond shall Constitute full and due authorization of such Bond containing such payee, principal amount, maturity and interest rate as the Bond Registrar shall cause to be inserted, and the Bond Registrar shall thereby be authorized to authenticate and deliver such Exchange Bond in accordance with the provisions hereof. In case any officer whose signature or a facsimile of whose signature shall appear on any bond (including any Exchange Bond) shall cease to be such officer before the issuance or delivery of such bond, such signature or such facsimile shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until such issuance or delivery, respectively, 210. Delivery of Bonds; Application of Proceeds. The City Treasurer is hereby authorized and instructed to make delivery of the Bonds to the purchasers thereof and to receive payment therefor in accordance with the terms of sale and to set the proceeds of said sale aside for deposit and use as follows: (a) accrued interest on the Bonds from August 1, 1990 to the date of delivery of the bonds shall be deposited into the Bond Account; and (b) the remaining proceeds of sale of the Bonds shall be deposited into the Project Account to be used to pay the Cost of the Proiect, including costs of issuance of the Bonds. 211. f=urther Authority. The Mayor, Clerk and City Treasurer of the City and other officers of the City are, and each of them is, hereby authorized to do or perform all such acts and to execute all such a rtificates, documents and other instruments as may be necessary or advisable to provide for the issuance, sale and delivery of the Bonds. 212. Establishment of Accounts. The following accounts and funds on the accounting records of the City are hereby created: (a) Bond Account, to be held by the City; (b) Project Account, to be held by the City. ARTICLE iII TRANSFER AND EXCHANGE OF BONDS; BOND REGISTRAR The Bond Registrar has several duties, including the maintenance of registration books for the Bonds and the ine sate nereot the City and subordinate entities thereof have issued no tax-exempt bonds (other than private activity bonds), (v) during calendar year 1990 the City and subordinate entities thereof expect to issue, on and after the date hereof, no tax-exempt bonds (other than private activity bonds) except the bonds, (vi) the aggregate face amount of all tax-exempt bonds (other than private activity bonds) issued by the City and subordinate entitles thereof during calendar year 1990 is not reasonably espected to exceed $5,000,000 and (vii) the City is not itself a subordinate entity of any other political subdivision or other governmental unit of the State of Idaho. The City hereby represents, covenants, warrants and agrees to and for the benefit of the Bondholders that neither it nor any subordinate entity thereof will issue any tax-exempt bonds during calendar year 1990 (other than private activity bonds) which, when added to the princpal amount of any tax-exempt bonds previously or concurrently issued by the city during calendar year 1990 and the principal amount of the bonds, will, in the aggregate, be in excess of $5,000,000, unless the City for itself or on behalf of any such subordinate entity, prior to the issuance of such bonds or other obligations, shall have obtained an opinion of Ray, Quinney & Nebeker, or another firm of attorneys of nationally recognized standing in the field of law relating to municipal bonds, to the effect that such issuance will not cause the Bonds to become irrcligible for the rebate exception contained in Section 148(f) (4) (C) of the Code or, alternatively, that some other exception to or means of complying with the rebate requirements imposed by Section 148(f) of the Code is available and that the City or any such subordinate entity qualifies for such alternative exception or that the City or any such subordinate entity has undertaken, in a satisfactory manner, to comply generally with the requirements of Section 148(f) of the Code, including, without limitation, the entering into of such agreements and the making of such representations as may be determined by Ray, Quinney & Nebeker, or such other firm of attorneys, to be necessary and sufficient for the purpose of such undertaking. As used in this Section 403, "tax-exempt bonds" means obligations of any kind, the interest on which is excludible from gross income of the owners thereof for federal income taxation purposes pursuant to Section 103 of the Code. Terms used in this Section 403 which are not otherwise defined herein have the same meanings herein as in the provisions of the Code which relate to tax-exempt bonds. 404. No Waiver of Limitation Provisions. The City, in consideration of the purchase of the Bonds by the Underwriter, hereby covenants and agrees with the Holders of the Bonds from time to time, that neither the City nor the Council will ever waive, or agree to wavie, as to the Bond Election, the time limitation provisions of subsection B of Section 34-2001A of the Idaho Code. 405. Approval of Amortization Plan of Bonds. It is hereby found, determined and declared that in the judgement of the Council, the departure from the amortization plan as provided in Section 57-211, Idaho Code, as amended, as set forth in the Bond Ordinance, will be to the advantage of the City, and therefor pursuant to the provisions of Section 57-211(a), Idaho Code, as amended, the Bonds shall be sold and delivered to the Underwriter with the annual maturities and bearing interest at the rates herein affixed, upon payment of the agreed purchase price. The annual Bond maturities shall be payable in accordance with the provisions of the Municipal Bond Law, Title 57, Chapter2, Idaho Code, as amended. ARTICLE V FORM OF BONDS (The form of the Bonds is set forth in full in the Bond Ordinance). ARTICLE VI MISCELLANEOUS 601. Ratification; Amendment of July lo, 1990 Resolution. (a) All proceedings, ordinances and actions of the City and its officers, agents and employees taken in connection with the authorization, sale and issuance of the Bands are hereby in all respects ratified, confirmed and approved, icnluding without limitation the calling, giving notice and holding of the bond election, the canvass of the returns thereof and the publication of the notice of sale for the Bonds, as set out in the preamble hereto. (b) That portion of Section 3 of Resolution No. 6-90 of the City, adopted on July 10, 1990, under the heading "PRIOR REDEMPTION:" is hereby amended to read as follows: PRIOR REDEMPTION: bonds maturing on and prior to August 1, 1997, are not callable for redemption prior to maturity. The Bonds maturing on and after August 1, 1998, are callable for redemption at the option of the City on August 1, 1997, and on any interest payment date thereafter prior to maturity, in whole or in part, from such maturities or parts thereof as shall be selected by the City, upon not less than thirty (30) days prior notice, at the following redemption prices (expressed as a percentage of the principal amount of the Bonds to be redeemed), plus accrued interest to the dateof redemption: Redemption Dates (Both Dates Inclusive) Redemption Prices August 1, 1997 through Feburary 1, 1999 101.0°x6 August 1, 1999 through Feburary 1, 2000 100.5 August 1, 2000 and thereafter 100.0% 602. Severability. It is hereby declared that all parts of this Bond Ordinance are severable, and if any section, Paragraph, cluse or provision of this Bond Ordinance shall, for any reason, be held to be invalid or unenforceable, the invalidity or unenforceability of any such section, paragraph, clause or provision shall not affect the remaining sections, paragraphs, clauses or provisions of this Bond Ordinance, 603. Conflict. All ordiances or parts thereof heretofore adopted or passed which are in conflict with any of the provisions of this Bond Ordinance are, to the extent of such conflict, hereby repealed. 604. Captions. The table of contents and captions or headings herein are for convenience of reference only and in noway define, limit or describe the scope or intent of any provisions or sections of this Bond Ordinance. 605. Designation as "Qualified Tax-exempt Obligations." The City hereby designates the bonds as "Qualified Tax- exempt Obligations" for the purposes and within the meaning of Section 265(b)(3) of the Code. The City hereby certifies that the Bonds in the aggregate principal amount of $500,000 are the only Bonds or similar obligation of the City for which a designation as "Qualified Tax-exempt Obligations" has been made during the calendar year 1990. 606. Publication of Summary of Ordinance; Effective Date. Pursuant to the provisions of Section 50-901A, Idaho Code, as amended, a summary of this Ordinance, in substantially the form attached hereto as Exhibit A, shall be Published within one month hereafter in one issue of The Idaho State Journal, the official newspaper of the City, after approval as to accuracy of the said summary by the attorney for the City, and this Ordinance shall take effect and be in full force immediately upon its passage, approval and publication of such summary. The full text of this ordinance shall be promptly provided by the City Clerk to any citizen upon personal request. The City Council hereby approves the summary of this ordinance in the form attached hereto as Exhibit A. ADOPTED AND APPROVED this 14th day of August, 1990. S/John O. Cotant, Mayor, City of Chubbuck, Idaho Attest: S/Ron C. Conlin, City Clerk, City of Chubbuck, Idaho (SEAL) The full text of Ordinance No. 340 is available at the City Hal[ of the City of Chubbuck at 5160 Yellowstone Avenue In the City of Chubbuck for inspection by the public during regular business hours. The full text of said Ordinance No. 340 wil I be provided to any citizen upon personal request. S/John O. Cotant, Mayor Attest: S/Ron C. Conlin, City Clerk The undersigned, being the duly qualified arid acting City Attorney of the City of Chubbuck, hereby verifies, pursuant to Section 50-901A, Idaho Code, as amended, that the foregoing summary of Ordinance No. 340 constitutes a true, complete and adequate summary of said Ordinance No. 340 and provides adequate notice to the public. S/Thomas J. Holmes, City Attorney September 2, 1990 No. 715