HomeMy WebLinkAbout0340 General Obligation Fire Protection Bonds 1990 Chubbuck, Idaho
August 14, 1990
The City Council of the City of Chubbuck, Bannock
County, Idaho, met in regular public session at the regular
meeting place of the Council at the City Hall, 5160 Yellowstone
Avenue, the City of Chubbuck, Idaho, at 7:30 p.m., on August 14,
1990.
The roll was called and the following found to be
present:
John O. Cotant, Jr.
LeRoy S. Quick
Dave A. Landon
W. Dean Wood
Mayor
Councilmember
Councilmember
Councilmember
Absent: Steven M. England Councilmember
There was also present Ron C. Conlin, City Clerk-
Treasurer.
After the meeting had been duly called to order and the
minutes of the preceding meeting had been read and approved, and
after the conduct of other business unrelated to the following,
the Mayor announced that one purpose of the meeting was to
consider the bids received up to 7:30 o'clock P.M., M.D.T., on
August 14, 1990 at the office of the City Council at the Chubbuck
City Hall, 5160 Yellowstone Avenue, in Chubbuck, Idaho 83202, for
the purchase of $500,000 General Obligation Fire Protection
Bonds, Series 1990 (the "Bonds"), of the city of Chubbuck,
Bannock County, Idaho (the "City"), and that a second purpose of
the meeting was to'consider the adoption of an ordinance
authorizing the issuance and confirming the sale of the Bonds.
The City Clerk presented an affidavit evidencing proper
publication of the notice of sale in full compliance with law, in
The Idaho State Journal, the official newspaper of the City, on
the following dates: July 23, 1990, July 30, 1990, and August 6,
1990, the first of said publications being not less than twenty-
one (21) full days prior to the date fixed for the sale of the
Bonds. The affidavit was approved and ordered placed on file.
The City Clerk then announced that pursuant to said
notice of sale three sealed bids for the purchase of the Bonds
had been received up to 7:30 o'clock P.M., M.D.T., at the regular
meeting place of the Council at the Chubbuck City Hall, 5160
Yellowstone Avenue, in Chubbuck, Idaho 83202. The bids so
received were opened, tabulated and found to be as follows:
NET NET
NAME OF INTEREST INTEREST
BIDDER COST PREMIUM RATE
First Security Bank of
of Idaho, N.A.
Piper Jaffray & Hopwood
Incorporated
D.A. Davidson and ISAAK
Bond Investments
$340,424.30 $290.70 7.384475%
$323,037.50 $ -0-
7.0073%
$321,797.50 $ -0-
6.980423%
After due deliberation, it appeared that the bid of
D.A. Davidson & ISAAK Bond Investments of Great Falls, Montana
and Denver, Colorado, respectively, for the Bonds was the best
and most advantageous bid received for the purchase of the Bonds.
Ordinance No. 340 was thereupon introduced in written
form by Mayor John O. Cotant, Jr., and was read by title.
Councilmember W. Dean Wood moved and Councilmember Dave A. Landon
seconded the motion that the rule requiring the reading of the
ordinance on three different days and once in full be dispensed
with and the motion was adopted by the vote of not less than one-
half plus one of the members of the full City Council, to-wit:
Aye: LeRoy S. Quick
Dave A. Landon
W. Dean WOod
Nay: None.
Ordinance No. 340 was thereupon again read by title,
after which, pursuant to motion made by Councilmember W. Dean
Wood and seconded by Councilmember Dave A. Landon, Ordinance No.
340 was adopted by the following vote:
Aye: LeRoy S. Quick
Dave A. Landon
W. Dean Wood
Nay: None.
Ordinance No. 340 was thereupon signed by the Mayor in
evidence of his approval, was attested by the City Clerk, was
numbered and ordered recorded and is as follows:
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(Other business not pertinent to the above appears in
the minutes of the meeting.)
Pursuant to motion duly made and carried, the meeting
was adjourned.
ayo~~ City of Chubbuck
Attest:
City Clerk, City of Chubbuck, Idaho
[SEAL]
Idaho
4
CITY OF CHUBBUCK, BANNOCK COUNTY, IDAHO
Ordinance No. 340 Authorizing the
Issuance and Confirming the Sale
of $500,000 General Obligation Fire Protection Bonds,
Series 1990
Adopted August 14, 1990
Section
RECITALS
101.
102.
201.
202.
203.
204.
205.
206.
207.
208.
209.
210.
211.
212.
301.
302.
303.
304.
305.
401.
402.
403.
404.
405.
TABLE OF CONTENTS
ARTICLE I
DEFINITIONS
Definitions .......................................... 4
Authority for Bond Ordinance ......................... 6
ARTICLE II
AUTHORIZATION, TERMS AND ISSUANCE
OF BONDS
Authorization of Bonds, Principal Amount,
Designation and Series .............................. 6
Purpose .............................................. 6
Dated Date ........................................... 6
Bond Details ......................................... 6
Denominations and Numbers ............................ 7
Paying Agent and Bond Registrar ...................... 7
Optional Redemption and Redemption Price ............. 8
Acceptance of Bid; Issuance and Sale of Bonds ........ 10
Execution of Bonds ................................... 10
Delivery of Bonds; Application of Proceeds ............ 12
Further Authority .................................... 12
Establishment of Accounts ............................ 12
ARTICLE III
TRANSFER AND EXCHANGE OF
BONDS; BOND REGISTRAR
Transfer of Bonds .................................... 13
Exchange of Bonds .................................... 13
Bond Registration Books .............................. 14
List of Bondholders .................................. 14
Duties of Bond Registrar ............................. 14
ARTICLE IV
COVENANTS AND UNDERTAKINGS
Bonds in Registered Form ............................. 15
Levy of Taxes ........................................ 15
Tax Covenant 16
No Waiver of Li~itatio~ ~r~ion~ .~ ~i...~. 19
Approval of Amortization Plan of Bonds ............... 19
~aqe
1
i
Section
501.
601.
602.
603.
604.
605.
606.
Page
ARTICLE V
FORM OF BONDS
Form of Bonds ........................................ 19
ARTICLE VI
MISCELLANEOUS
Ratification; Amendment of July 10, 1990 Resolution .. 28
Severability ......................................... 28
Conflict ............................................. 28
Captions ................................... 29
Designation as ~Qualifie~ Tax2gQg~pt O~ligations" .].. 29
Publication of Summary of Ordinance; Effective
Date ................................................ 29
ii
ORDINANCE NO. 340
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 bonds, 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.
WHEREAS at the Bond Election duly called and held in
the City on June 19, 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, 19907
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 Canvassers, 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 newspaper of the
city, on July 23, ~990, 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 & 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, the bid of the purchaser reading in full as follows:
2
[Attach Copy of Winning Bid]
3
; 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
Bonds Investments, 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, as 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 acquisition 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 Bond Registrar for such purpose.
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"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 Clerk of the City.
"Code" means the Internal Revenue Code of 1986, as
amended.
"Council" means the city Council of the City, or any
other governing body of the City hereafter provided for pursuant
to law.
"Exchange Bond" means any Exchange Bond as defined in
Section 209 hereof.
"Paying Agent" means each Person appointed by the City
as paying agent with respect to the Bonds. Pursuant to Section
206 hereof the initial Paying Agent is First Security Bank of
Idaho, N.A., Boise, Idaho.
"Person" means natural persons, firms, partnership,
associations, corporations, trusts, public bodies and other
entities.
"Project" means the acquisition and construction of a
building site, building and suitable equipment and apparatus
necessary for fire protection, in and for the City.
"Project Account" means the Project Account established
in Section 212 hereof.
"Record Date" means (a) in the case of each interest
payment date, the Bond Registrar's close of business on the
fifteenth day of the month next preceding such interest payment
date, and (b) in the case of each redemption, such record date as
shall be specified.by the Bond Registrar in the notice of
redemption required by Section 207 hereof, provided that such
record date shall be not less than fifteen (15) calendar days
before the mailing of such notice of redemption.
"Regulations" means the Treasury Regulations issued or
proposed under Section 103, Section 148 or Section 149 of the
Code (26 CFR Part 2) or other sections of the Code relating to
"arbitrage bonds" or rebate, including without limitation Section
1.103-13, 1.103-14, 1.103-15, 1.148-0T through 1.148-9T and
1.150-iT, to the extent applicable, and includes amendments
thereto or successor provisions.
"Tax Certificate" means any agreement or certificate of
the City which the City may execute in order to establish and
maintain the tax-exempt status of interest received on the Bonds.
"Underwriter" means D.A. Davidson and ISAAK Bond
Investments, of Great Falls, Montana and Denver, Colorado,
respectively, the purchasers of the Bonds.
The terms "hereby," "hereof," "hereto," "herein,"
"hereunder," and any similar terms as used in this Bond
Ordinance, refer to this Bond Ordinance.
102. Authority for Bond Ordinance. This Bond
Ordinance is adopted pursuant to the provisions of the Act.
ARTICLE II
AUTHORIZATION, TERMS AND ISSUANCE
OF BONDS
201. Authorization of Bonds, Principal Amount,
Desiqnation and Series. In accordance with and subject to the
terms, conditions and limitations established in this Bond
Ordinance, a series of bonds of the city is hereby authorized to
be issued in the aggregate principal amount of $500,000. Such
series of bonds shall be designated "General Obligation Fire
Protection Bonds, Series 1990." The Bonds shall be issued in
fully registered form, without coupons.
202. Purpose. The Bonds are hereby authorized to be
issued for the purpose of financing the Project.
203. Dated Date.
August 1, 1990.
The Bonds shall be dated as of
204. Bond Details. The Bonds shall mature on the
dates and in the principal amounts, and shall bear interest
(calculated on the basis of a year of 360 days and twelve 30-day
6
months,) from August 1, 1990, payable semiannually on February 1
and August 1 of each year, commencing February 1, 1991, at the
rates as shown below:
August 1
of the year
Amount
Maturinq
Interest Rate
Per Annum
1991 $20,000 9.00%
1992 20,000 9.00
1993 25,000 8.50
1994 25,000 8.25
1995 25,000 7.75
1996 30,000 6.40
1997 30,000 6.50
1998 30,000 6.60
1999 35,000 6.70
2000 35,000 6.80
2001 40,000 6.90
2002 40,000 6.95
2003 45,000 7.00
2004 50,000 7.00
2005 50,000 7.00
Each Bond shall bear interest from the interest payment
date next preceding the date of registration and authentication
thereof, unless it is registered and authenticated as of an
interest payment date, in which event it shall bear interest from
such interest payment date, or unless it is registered and
authenticated prior to the first interest payment date, in which
event it shall bear interest from its date, or unless, as shown
by the records of the Bond Registrar, interest on the Bonds shall
be in default, in which event it shall bear interest from the
date to which interest has been paid in full. The Bond Registrar
shall insert the date of registration and authentication of each
Bond in the place provided for such purpose in the form of Bond
Registrar's certificate of authentication on each Bond. To the
extent permitted by law, the Bonds shall bear interest on overdue
principal at the aforesaid respective rates.
205. Denominations and Numbers. The Bonds shall be
issued as fully registered bonds, without coupons, in the
denomination of $5,000 or integral multiples thereof, not
exceeding the amount of each maturity. The Bonds shall be
numbered from one (1) consecutively upward in order of issuance
with the prefix "R" preceding each number.
206. ~aying Agent and Bond Reqistrar. First Security
Bank of Idaho, N.A., Boise, Idaho, is hereby appointed the Paying
Agent and Bond Registrar for the Bonds. The city may remove any
Paying Agent and any Bond Registrar, and any successor thereto,
and appoint a successor or successors thereto. Each Paying Agent
and each Bond Registrar shall signify its acceptance of the
7
duties and obligations imposed upon it by the Bond Ordinance by
executing and delivering to the City a written acceptance
thereof. The principal of and premium, if any, and interest on
the Bonds shall be payable in any coin or currency of the United
States of America which, at the respective dates of payment
thereof, is legal tender for the payment of public and private
debts. Principal of and premium, if any, on the Bonds shall be
payable when due to the Holder of each Bond at the principal
corporate trust office of the Paying Agent. Payment of interest
on each Bond shall be made to the Person which, as of the Record
Date, is the Holder of the Bond and shall be made by check or
draft mailed to such Holder, at the address of such Holder as it
appears on 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.
207. Optional Redemption and Redemption Price. Bonds
maturing on and prior to August 1, 1997 are not subject to call
and redemption prior to maturity. Bonds maturing on and after
August 1, 1998, are subject to 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 notice given as provided below, at the following redemption
prices (expressed as a percentage of the principal amount of
Bonds to be redeemed), plus accrued interest to the date of
redemption:
Redemption Dates
(Both Dates Inclusive)
Redemption Prices
August 1, 1997 through February 1, 1999
August 1, 1999 through February 1, 2000
August 1, 2000 and thereafter
101.0%
100.5
100.0
If less than all of the Bonds of any maturity are to be
redeemed, the particular Bonds or portion of the Bonds of such
maturity to be redeemed shall be selected at random by the Bond
Registrar in such manner as the Bond Registrar in its discretion
may deem fair and appropriate. The portion of any registered
Bond of a denomination of more than $5,000 to be redeemed will be
in the principal amount of an integral multiple of $5,000, and in
selecting portions of such Bonds for redemption the Bond
Registrar will treat each such Bond as representing that number
of Bonds of $5,000 denomination which is obtained by dividing the
principal amount of such Bond by $5,000.
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
8
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 call 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 (i) the CUSIP numbers of all Bonds
being redeemed; (ii) the date of issue of the Bonds as originally
issued; (iii) the rate of interest borne by each Bond being
redeemed;(iv)the maturity date of each Bond being redeemed; and
(v) any other descriptive information needed to identify
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:
(i)
The Depository Trust Company
711 Stewart Avenue
Garden City, NY 11530
Fax -- (516) 227 - 4039 or 4190
(ii)
Midwest Securities Trust Company
Capital Structures - Call Notification
440 South LaSalle Street
Chicago, IL 60605
Fax -- (312) 663 - 2343
9
(iii)
Pacific Securities Depository Trust Company
Pacific and Company
P. 0. Box 7042
San Francisco, CA 94120
Fax -- (415) 393 - 4128
(iv)
Philadelphia Depository Trust Company
Reorganization Division
1900 Market Street
Philadelphia, PA 19103
Attention: Bond Department
Dex -- (215) 496 - 5058
and to all other registered securities depositories then in the
business of holding substantial amounts of obligations of types
comprising the Bonds designated to the Bond Registrar by the
City, and to:
(i)
Moody's Municipal and Government
99 Church Street
New York, NY 10007
Telecopy -- (212) 233 - 6263
(ii)
Standard & Poor's Corporation, Publishers
25 Broadway
New York, NY 10004
Attention: Called Bond Record Department
Fax-- (212) 208- 8284
and to any other nationally-recognized information services as
designated by the City to the Bond Registrar.
(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.
10
209. Execution of Bonds. The Bonds shall be e~
on behalf of the City by the facsimile signature of the Ma
the City, attested by the facsimile signature of the Clerk
countersigned by the facsimile signature of the City'Treas
and the facsimile of the official seal of the City shall b
printed thereon. The certificate of the Clerk and the Cit
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 t~
printed thereon. The said officials and each of them are ~
authorized and instructed to execute the Bonds accordingly
the use of such facsimile signatures of said Mayor, Clerk a
City Treasurer and such facsimile of the official seal of t~
City on the Bonds are hereby authorized, approved and adopt
the authorized and authentic execution, countersigning and
sealing of the Bonds by said officials. The Bonds shall th~
delivered to the Bond Registrar for manual authentication b5
Only such of the Bonds as shall bear thereon a certificate ¢
authentication, manually executed by the Bond Registrar, sha
valid or obligatory for any purpose or entitled to the benef
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 und
and are entitled to the benefits of, this Bond Ordinance and
the Holder thereof is entitled 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 k
if (a) such Bond is signed by an authorized officer of the Be
Registrar, but it shall not be necessary that the same office
sign the certificate of authentication on all of the Bonds is
hereunder or that all of the Bonds hereunder be authenticated
the same Bond Registrar, and (b) the date of registration 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
time, in the manner described above, bonds (the "Exchange Bond
to be issued and delivered for the purpose of effecting transf
and exchanges of Bonds pursuant to Article III hereof. At the
time of the execution, attestation, countersigning and sealing
the Exchange Bonds by the City, the payee, principal amount,
maturity and interest rate shall be in blank. Upon any transf~
or exchange of Bonds pursuant to Article III 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 Exchange Bonds, for the purpose of
effecting transfers and exchanges of Bonds; provided that any
Exchange Bonds authenticated and delivered by the Bond Registra.
shall bear the same series, maturity and interest rate as Bonds
11
delivered to the Bond Registrar for exchange or transfer, and
shall bear the name of such payee as the Bondholder requesting an
exchange 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~
countersigning 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 Project, including costs of issuance of
the Bonds.
211. Further 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 certificates, 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.
12
ARTICLE III
TRANSFER AND EXCHANGE OF
BONDS; BOND REGISTRAR
301. Transfer of Bonds. (a) Any Bond may, in
accordance with its terms, be transferred, upon the registration
books kept by the Bond Registrar pursuant to Section 303 hereof,
by the Person in whose name it is registered, in person or by his
duly authorized attorney, upon surrender of such Bond for
cancellation, accompanied by delivery of a written instrument of
transfer in a form approved by the Bond Registrar, duly executed.
No transfer shall be effective until entered on the registration
books kept by the Bond Registrar. The City, the Bond Registrar
and the Paying Agent may treat and consider the Person in whose
name each Bond is registered in the registration books kept by
the Bond Registrar as the holder and absolute owner thereof for
the purpose of receiving payment of, or on account of, the
principal or redemption price thereof and interest due thereon
and for all other purposes whatsoever.
(b) Whenever any Bond or Bonds shall be surrendered
for transfer, the Bond Registrar shall authenticate and deliver a
new fully registered Bond or Bonds (which may be an Exchange Bond
or Bonds pursuant to Section 209 hereof) of the same series,
designation, maturity and interest rate and of authorized
denominations duly executed by the City, for a like aggregate
principal amount. The Bond Registrar shall require the payment
by the bondholder requesting such transfer of any tax or other
governmental charge required to be paid with respect to such
transfer. With respect to each Bond, no such transfer shall be
required to be made (i) after the Record Date with respect to any
interest payment date to and including such interest payment
date, or (ii) after the Record Date with respect to any
redemption of such Bond.
(c) The Bond Registrar shall not be required to
register the transfer of or exchange any Bond selected for
redemption in whole or in part, except the unredeemed portion of
any Bond being redeemed in part. Upon surrender of any Bond
redeemed in part only, the City shall execute and the Bond
Registrar shall authenticate and deliver to the Bondholder, at
the expense of the city, a new Bond or Bonds (which may be an
Exchange Bond or Bonds pursuant to Section 209 hereof) of the
same series, designation, maturity and interest rate and of
authorized denominations equal in aggregate principal amount to
the unredeemed portion of the Bond surrendered.
302. Exchanqe of Bonds. Bonds may be exchanged at the
principal corporate trust office of the Bond Registrar for a like
aggregate principal amount of fully registered Bonds (which may
13
be an Exchange Bond or Bonds pursuant to Section 209 hereof) of
the same series, designation, maturity and interest rate of other
authorized denominations. The Bond Registrar shall require the
payment by the Bondholder requesting such exchange of any tax or
other governmental charge required to be paid with respect to
such exchange. With respect to each Bond, no such exchange shall
be required to be made (i) after the Record Date with respect to
any interest payment date to and including such interest payment
date, or (ii) after the Record Date with respect to any
redemption of such Bond.
303. Bond Registration Books. This Bond Ordinance
shall constitute a system of registration within the meaning and
for all purposes of the Registered Public Obligations Act of
Idaho, Chapter 9 of Title 57, Idaho Code, as amended. The Bond
Registrar shall keep or cause to be kept, at its principal
corporate trust office, sufficient books for the registration and
transfer of the Bonds, which shall at all times be open to
inspection by the city; and, upon presentation for such purpose,
the Bond Registrar shall, under such reasonable regulations as it
may prescribe, register or transfer or cause to be registered or
transferred, on said books, Bonds as herein provided.
304. List of Bondholders. The Bond Registrar shall
maintain a list of the names and addresses of the Holders of all
Bonds and upon any transfer shall add the name and address of the
new Bondholder and eliminate the name and address of the
transferor Bondholder.
305. Duties of Bond Reqistrar. If requested by the
Bond Registrar, the Mayor and the Clerk of the City are
authorized to execute the Bond Registrar's standard form of
agreement between the City and the Bond Registrar with respect to
the compensation, obligations and duties of the Bond Registrar
hereunder which may include the following:
(a) to act as bond registrar, authenticating
agent, paying agent, and transfer agent as provided
herein;
(b) to maintain a list of Bondholders as set forth
herein and to furnish such list to the City upon
request, but otherwise to keep such list confidential;
(c) to give notice of redemption of Bonds as
provided herein;
(d) to cancel and/or destroy Bonds which have been
paid at maturity or upon earlier redemption or
submitted for exchange or transfer;
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(e) to furnish the City at least annually a
certificate with respect to Bonds cancelled and/or
destroyed; and
(f) to furnish the City at least annually an audit
confirmation of Bonds paid, Bonds outstanding and
payments made with respect to interest on the Bonds.
ARTICLE IV
COVENANTS AND UNDERTAKINGS
401. Bonds in Registered Form. The City recognizes
that Section 149(a) of the Code requires the Bonds to be issued
and to remain in fully registered form in order that interest
thereon be exempt from federal income taxation under laws in
force at the time the Bonds are delivered. In this connection,
the city agrees that it will not take any action to permit the
Bonds to be issued in, or converted into, bearer or coupon form.
402. Levy of Taxes. To pay principal of and interest
on the Bonds falling due to and including August 1, 1991, there
shall be levied in the year 1990 on all taxable property within
the city, in addition to all other taxes, a direct ad valorem tax
sufficient to produce the sum of $55,990.00, and thereafter there
shall be levied on the taxable property in the City, in addition
to all other taxes, a direct annual ad valorem tax in the years
and amounts as follows:
Year Amount Interest Total
1991 $20,000 $ 34,190.00 $ 54,190.00
1992 25,000 32,390.00 57,390.00
1993 25,000 30,265.00 55,265.00
1994 25,000 28,202.50 53,202.50
1995 30,000 26,265.00 56,265.00
1996 30,000 24,345.00 54,345.00
1997 30,000 22,395.00 52,395.00
1998 35,000 20,415.00 55,415.00
1999 35,000 18,070.00 53,070.00
2000 40,000 15,690.00 55,690.00
2001 40,000 12,930.00 52,930.00
2002 45,000 10,150.00 55,150.00
2003 50,000 7,000.00 57,000.00
2004 50,000 3,500.00 53,500.00
Said taxes when collected shall be placed in a separate fund of
account and shall be used for no other purpose than for the
15
payment of the principal of and the interest on the Bonds as the
same become due, so long as any of the Bonds remain outstanding
and unpaid, but nothing herein contained shall be construed to
prevent the City from paying the interest on or the principal of
the Bonds from any other funds in its hands and lawfully
available for that purpose; but the aforementioned taxes shall
never be diminished prior to payment of all of the Bonds herein
authorized except, in any year, to the extent that other
available funds shall have been applied to or set aside in a
special fund to be irrevocably held for the payment of principal
or interest or both payable from said taxes for such year.
The taxes herein levied shall be in addition to all
other taxes levied by the City, and shall be levied, assessed,
certified, extended and collected in the same year as other city
taxes are levied, assessed and collected. The full faith and
credit and all taxable property in the City are hereby pledged
for the prompt payment of the principal of and the interest on
the Bonds as the same become due and the tax levies to that end
herein provided shall be in full force and effect, and forever
remain so until the indebtedness hereby incurred, principal and
interest, shall have been fully paid, satisfied and discharged,
except as hereinbefore provided, and any collection fees or
charges made in connection with the payment of the Bonds and
interest thereon are to be paid by the City, and any such
principal or interest falling due at a time or times at which
proceeds of the taxes herein levied are not available in an
amount sufficient to pay such principal and interest shall be
paid from the general funds of the City and reimbursement to such
funds made from the proceeds of said taxes when they shall have
been collected.
403. Tax Covenant. (a) The Mayor, the Clerk and the
City Treasurer of the City and other appropriate officials of the
City are each hereby authorized and directed to execute such Tax
Certificates as shall be necessary to establish that the Bonds
are not "arbitrage bonds" within the meaning of Section 148 of
the Code and the Regulations and to establish that interest on
the Bonds is not and will not become subject to taxation under
the Code and applicable regulations. The City covenants and
certifies to and for the benefit of the Bondholders that no use
will be made of the proceeds of the issue and sale of the Bonds,
or any funds or accounts of the City which may be deemed to be
proceeds of the Bonds pursuant to Section 148 of the Code and
Regulations, which use, if it had been reasonably expected on the
date of issuance of the Bonds, would have caused the Bonds to be
classified as "arbitrage bonds" within the meaning of Section 148
of the Code. Pursuant to this covenant, the city obligates 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.
16
(b) The city further covenants and agrees to and for
the benefit of the Bondholders that the City (i) will not take
any action that would cause interest on the Bonds to be or to
become ineligible for the exclusion from gross income of the
Bondholders as provided in Section 103 of the Code, (ii) will not
omit to take or cause to be taken, in timely manner, any action
which the City may legally take, which omission would cause
interest on the Bonds to be or to become ineligible for the
exclusion from gross income of the Bondholders as provided in
Section 103 of the Code and (iii) without limiting the generality
of the foregoing, a) will not take any action which would cause
the Bonds, or any Bond, to be a "private activity bond" within
the meaning of Section 141 of the Code or to fail to meet any
applicable requirement of Section 149 of the Code and b) will not
omit to take or cause to be taken, in timely manner, any action
which the City may legally take, which omission would cause the
Bonds, or any Bond, to be a "private activity bond" or to fail to
meet any applicable requirement of Section 149 of the Code. The
Mayor, the Clerk and the City Treasurer and other appropriate
officials of the City are each hereby authorized and directed to
execute such Tax Certificates as shall be necessity to establish
that the Bonds are not and will not become "private activity
bonds," that all applicable requirements of Section 149 of the
Code are and will be met, and that the covenants of the City
contained in this Section 403(b) will be complied with.
(c) The City covenants and certifies to and for the
benefit of the Bondholders that: (i) the City will at all times
comply with the provisions of any Tax Certificates and (ii) no
bonds or other evidences of indebtedness of the City have been or
will be sold within a period beginning 31 days prior to the sale
of the Bonds and ending 31 days following the sale of the Bonds,
and no bonds or other evidences of indebtedness of the city have
been or will be issued or delivered within a period beginning 31
days prior to the issuance or delivery of the Bonds and ending 31
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
necessary to enable it to do so) any ordinance, resolution or Tax
Certificate necessary to comply with any changes in law or
regulations in order to preserve the exclusion of interest on the
Bonds from gross income of the Holders thereof for purposes of
the federal income tax to the extent that it may lawfully do so.
The City further covenants to (a) impose such limitations on the
investment or use of moneys or investment related to the Bonds,
(b) make such payments to the United States Treasury, (c)
maintain such records, (d) perform such calculations and (e)
perform such other acts as may be necessary to preserve the
exclusion of interest on the Bonds from gross income of the
Holders thereof for purposes of the federal income tax and which
it may lawfully do.
17
Pursuant to these covenants, the City obligates itself
to comply throughout the term of the issue of the Bonds with the
requirements of Section 103 of the Code and the Regulations.
(e) The provisions of Section 148(f) (4) (C) of the Code
provide an exception for issues of obligations by certain "small
governmental units" from certain arbitrage rebate requirements
imposed by Section 148(f) of the Code. For purposes of
establishing that the City is a "small governmental unit" for the
purposes and within the meaning of Section 148(f) (4) (C) of the
Code, the City hereby represents, covenants, warrants and agrees
to and for the benefit of the Bondholders that (i) it is a
political subdivision of the State of Idaho and a governmental
unit with general taxing powers, (ii) none of the Bonds
constitutes a "private activity bond" (as defined in Section 141
of the Code), (iii) at least 95% of the net proceeds of the Bonds
are to be used for local governmental activities of the City
within the meaning of Section 148(f)(4) (C) (i) (III) of the Code,
(iv) during calendar year 1990 and prior to the date hereof 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 entities thereof during
calendar year 1990 is not reasonably expected 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 principal 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 ineligible 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 145(f) of the Code, including, without limitation, the
18
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 waive, 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 judgment 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 therefore
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, Chapter 2, Idaho
Code, as amended.
ARTICLE V
FORM OF BONDS
501. Form of Bonds. Each Bond shall be in
substantially the following form, with such insertions or
variations as to any redemption or amortization provisions and
such other insertions or omissions, endorsements and variations
as may be required:
19
[FORM OF BOND]
Registered
Registered
Number R-
UNITED STATES OF AMERICA
STATE OF IDAHO
BANNOCK COUNTY
CITY OF CHUBBUCK
GENERAL OBLIGATION FIRE PROTECTION BOND, SERIES 1990
SEE REVERSE
SIDE FOR
ADDITIONAL
PROVISIONS
INTEREST MATURITY DATED
RATE: DATE: DATE: CUSIP:
% August 1, August 1,
1990
Registered Owner:
Principal Amount:
DOLLARS
KNOW ALL MEN BY THESE PRESENTS that the city of
Chubbuck (the "City"), a duly organized and existing municipal
corporation and political subdivision of the State of Idaho,
located in Bannock County, Idaho, acknowledges itself indebted
and for value received hereby promises to pay to the registered
owner identified above, or registered assigns, on the maturity
date identified above, upon presentation and surrender hereof,
the principal amount identified above, and to pay the registered
owner hereof interest on the balance of said principal amount
from time to time remaining unpaid from the interest payment date
next preceding the date of registration and authentication of
this Bond, unless this Bond is registered and authenticated as of
an interest payment date, in which event this Bond shall bear
interest from such interest payment date, or unless this Bond is
registered and authenticated prior to the first interest payment
date, in which event this Bond shall bear interest from the dated
date identified above (the "Dated Date"), or unless, as shown by
the records of First Security Bank of Idaho, N.A., Boise, Idaho,
as bond registrar (the "Bond Registrar"), interest on the
hereinafter referred to Bonds shall be in default, in which event
this Bond shall bear interest from the date to which interest has
been paid in full, at the interest rate per annum specified above
(calculated on the basis of a year of 360 days consisting of
twelve 30-day months) payable on February 1, 1991, and thereafter
on August 1 and February 1 of each year, until payment in full of
20
such principal, except as the provisions set forth in the
hereinafter referred to Bond Ordinance with respect to redemption
prior to maturity may become applicable hereto. To the extent
permitted by law, this Bond shall bear interest on overdue
principal at the interest rate borne by this Bond. Principal of
and premium, if any, on this Bond shall be payable at the
principal corporate trust office of the First Security Bank of
Idaho, N.A., in Boise, Idaho, as paying agent of the City (the
"Paying Agent"), or its successor as such paying agent, in any
coin or currency of the United States of America which at the
time of payment is legal tender for the payment of public and
private debts; and payment of semiannual interest hereon shall be
made to the registered owner hereof and shall be paid by check or
draft mailed to the person who is the registered owner of record
as of the close of business on the fifteenth day of the month
immediately preceding each interest payment date at the address
of such registered owner as it appears on the registration books
of the City maintained by the Bond Registrar, or at such other
address as is furnished in writing by such registered owner to
the Bond Registrar as provided in the Bond Ordinance.
THE TERMS AND PROVISIONS OF THIS BOND ARE CONTINUED ON
THE REVERSE SIDE HEREOF AND SUCH CONTINUED TERMS AND PROVISIONS
SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS THOUGH FULLY SET
FORTH AT THIS PLACE.
This Bond and the issue of Bonds of which it is a part
are issued in conformity with and after full compliance with the
Constitution of the State of Idaho and pursuant to the provisions
of the Act and all other laws applicable thereto.
It is hereby certified, recited and declared that the
full faith, credit and all taxable property within the City are
and shall continue to be pledged for and until the full payment
of the principal of and interest on this Bond, that every
requirement of law relating to the issue thereof has been duly
complied with, that this Bond is within every debt and other
limit prescribed by law and the Constitution of the State of
Idaho, and that provision has been made for the collection of an
annual tax fully sufficient to pay the interest on this Bond as
it falls due and also to pay the principal hereof when due. It
is further certified, recited, and declared that all conditions,
acts and things required by the Constitution or statutes of the
State of Idaho and by the Act and the Bond Ordinance to exist, to
have happened or to have been performed precedent to or in
connection with the issuance of this Bond exist, have happened
and have been performed and that the issue of the Bonds, together
with all other indebtedness of the City, is within every debt and
other limit prescribed by said Constitution and statutes.
21
This Bond shall not be valid until the Certificate of
Authentication hereon shall have been manually signed by the Bond
Registrar.
IN WITNESS WHEREOF, THE CITY OF CHUBBUCK, BANNOCK
COUNTY, IDAHO, has caused this Bond to be signed in its name and
on its behalf by its Mayor, attested by its City Clerk and
countersigned by its City Treasurer (the signatures of said
Mayor, City Clerk and City Treasurer being by facsimile), and has
caused a facsimile of its official seal to be printed hereon, and
said officials by the execution hereof do adopt as and for their
own proper signatures their facsimile signatures appearing on
each of the Bonds, all as of the Dated Date.
(Facsimile Signature)
Mayor
COUNTERSIGNED:
ATTEST:
(Facsimile Siqnature)
City Clerk
[FACSIMILE SEAL]
(Facsimile Signature)
city Treasurer
[FORM OF BOND REGISTRAR'S CERTIFICATE OF AUTHENTICATION]
This Bond is one of the Bonds described in the within
mentioned Bond Ordinance and is one of the General Obligation
Fire Protection Bonds, Series 1990, of the City of Chubbuck,
Bannock County, Idaho.
FIRST SECURITY BANK OF IDAHO, N.A.,
as Bond Registrar
Date of registration
and authentication:
Authorized Officer
Bond Registrar and Paying Agent:
First Security Bank of Idaho, N.A.
22
[REVERSE]
This Bond is a general obligation of the City and is
one of the General Obligation Fire Protection Bonds, Series 1990,
of the City (the "Bonds"), limited to the aggregate principal
amount of $500,000, issued under and by virtue of the Municipal
Bond Act 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, as amended, Sections 50-1019
to 50-1026, inclusive, Idaho Code, as amended, and all laws
amendatory thereof or supplementary thereto (collectively, the
"Act"), and under and pursuant to an ordinance of the City
adopted on August 14, 1990 (the "Bond Ordinance"), after having
been authorized at an election held on June 19, 1990, in the City
by vote of at least two-thirds of the qualified electors thereof,
for the purpose of financing the acquisition and construction of
a building site, building and suitable equipment and apparatus
necessary for fire protection, in and for the City.
This Bond is transferable, as provided in the Bond
Ordinance, only upon the books of the City kept for that purpose
at the principal corporate trust office of the Bond Registrar, by
the registered owner hereof in person or by his attorney duly
authorized in writing, upon surrender hereof together with a
written instrument of transfer satisfactory to the Bond
Registrar, duly executed by the registered owner or such duly
authorized attorney, and thereupon the City shall issue in the
name of the transferee a new registered Bond or Bonds of
authorized denominations of the same aggregate principal amount,
series, designation, maturity and interest rate as the
surrendered Bond, all as provided in the Bond Ordinance and upon
the payment of the charges therein prescribed. No transfer of
this Bond shall be effective until entered on the registration
books kept by the Bond Registrar. The City, the Bond Registrar
and the Paying Agent may treat and consider the person in whose
name this Bond is registered as the holder and absolute owner
hereof for the purpose of receiving payment of, or on account of,
the principal or redemption price hereof and interest due hereon
and for all other purposes whatsoever, and neither the City, nor
the Bond Registrar nor the Paying Agent shall be affected by any
notice to the contrary.
The Bonds are issuable solely in the form of registered
bonds without coupons in the denomination of $5,000, or any
integral multiple of $5,000.
The Bonds maturing on and prior to August 1, 1997 are
not subject to call and redemption prior to maturity. The Bonds
maturing on and after August 1, 1998 are subject to redemption at
the option of the City on or after August 1, 1997 and on any
23
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 notice given as provided below, at the
following redemption prices (expressed as a percentage of the
principal amount of Bonds to be redeemed), plus accrued.interest
to the date of redemption:
Redemption Dates
(Both Dates Inclusive)
Redemption Prices
August 1, 1997 through February 1, 1999
August 1, 1999 through February 1, 2000
August 1, 2000 and thereafter
101.0%
100.5
100.0
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
registered owner of each Bond which is subject to redemption, at
the address of such registered owner as it appears on the
registration books kept by the Bond Registrar, or at such other
address as is furnished in writing by such registered owner to
the Bond Registrar, all as provided in the Bond Ordinance. Any
notice so mailed shall be conclusively presumed to have been duly
given, whether or not the registered owner receives such notice.
In addition to the foregoing notice of redemption,
further notice will be given by the Bond Registrar as provided in
the Bond Ordinance, but no defect in such further notice nor any
failure to give all or any portion of such further notice shall
in any manner affect the validity of a call for redemption if
notice thereof is given as above described.
If notice of redemption shall have been given as
aforesaid, the Bonds or portions thereof specified in said notice
shall become due and payable at the applicable redemption price
on the redemption date therein designated, and if, on the
redemption date, moneys for the payment of the redemption price
of all the Bonds to be redeemed, together with interest to the
redemption date, shall be available for such payment on said
date, then from and after the redemption date interest on such
Bonds shall cease to accrue and become payable.
Less than all of a Bond in a denomination in excess of
$5,000 may be so redeemed, and in such case, upon the surrender
of such Bond, there shall be issued to the registered owner
thereof, without charge therefor, for the unredeemed balance of
the principal amount of such Bond, at the option of such owner,
registered Bonds of any of the authorized denominations, all as
more fully set forth in the Bond Ordinance. In selecting
portions of any registered Bond which is of a denomination of
more than $5,000 for redemption, the Bond Registrar will treat
each such Bond as representing that number of Bonds of $5,000
24
denomination which is obtained by dividing the principal amount
of such Bond by $5,000.
The City has designated the Bonds as "qualified
tax-exempt obligations" pursuant to Section 265(b) (3) of the
Internal Revenue Code of 1986, as amended.
Except as otherwise provided herein and unless the
context clearly indicates otherwise, words and phrases used
herein shall have the same meanings as such words and phrases in
the Bond Ordinance.
25
[FORM OF REGISTRATION CERTIFICATE]
We, the undersigned, the duly chosen, qualified and
acting City Clerk and City Treasurer, respectively, of the city
of Chubbuck, Bannock County, Idaho, do hereby certify that the
within Bond has been duly registered in permanent public record
books kept in our offices for the purpose of such registration,
in full compliance with the provisions of Title 57, Chapter 2,
Idaho Code, and laws amendatory thereto, such registration
showing the number, date, amount of the Bond, rate of interest
thereon, dates of maturity, place of payment and the denomination
of the payments to be made, and the name of the purchaser and
date of the delivery of the Bond; and the undersigned City
Treasurer does hereby certify that before the delivery of this
Bond he/she received the proper consideration therefor.
IN WITNESS WHEREOF, we have subscribed our official
hands and the official seal of the City of Chubbuck, Bannock
County, Idaho, this first day of August, 1990.
(Facsimile Siqnature)
City Clerk
(Facsimile Siqnature)
City Treasurer
[ FACSIMILE SEAL]
26
[ABBREVIATIONS]
The following abbreviations, when used in the
inscription on the face of the within Bond, shall be construed as
though they were written out in full according to applicable laws
or regulations.
UNIF GIFT MIN ACT--
TEN COM-
TEN ENT-
JT TEN-
as tenants in common
as tenants by the entirety
as joint tenants with right
of survivorship and not as
tenants in common
Custodian
(Cust) (Minor)
under Uniform Gifts to
Minors Act of
(State)
Additional abbreviations may also be used though not in
the list above.
[FORM OF ASSIGNMENT]
FOR VALUE RECEIVED the undersigned sells, assigns and
transfers unto
Insert Social Security or Other
Identifying Number of Assignee
(Please Print or Typewrite Name and Address of Assignee)
the within Bond of THE CITY OF CHUBBUCK, BANNOCK COUNTY, IDAHO,
and hereby irrevocably constitutes and appoints
attorney to register the transfer of said Bond on
the books kept for registration thereof, with full power of
substitution in the premises.
Dated: Signature:
Signature Guaranteed:
NOTICE: Signature(s) must be guaranteed by a member firm of the
New York Stock Exchange or a commercial bank or trust company.
NOTICE: The 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 enlargement or any change
whatever.
27
ARTICLE VI
MISCELLANEOUS
601. Ratification; Amendment of July 10, 1990
Resolution. (a) Ail proceedings, ordinances and actions of the
city and its officers, agents and employees taken in connection
with the authorization, sale and issuance of the Bonds are hereby
in all respects ratified, confirmed and approved, including
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
Bonds to be redeemed), plus accrued interest to the
date of redemption:
Redemption Dates
~Both Dates Inclusive).
Redemption Prices
August 1, 1997 through February 1, 1999
August 1, 1999 through February 1, 2000
August 1, 2000 and thereafter
101.0%
100.5
100.0
602. Severability. It is hereby declared that all
parts of this Bond Ordinance are severable, and if any section,
paragraph, clause 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. Ail ordinances 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.
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604. Captions. The table of contents and captions or
headings herein are for convenience of reference only and in no
way define, limit or describe the scope or intent of any
provisions or sections of this Bond Ordinance.
605. Desiqnation 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 obligations 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
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.
Attest:
ADOPTED AND APPROVED this 14th day of August, 1990.
~, City of Chubbuck
Idaho
City Clerk, City of Chubbuck, Idaho
[SEAL]
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BID FORM
~$00,000 G£1~'ERAL OBLIGATION FIRE FROTEC'I2OS' BONDS, SERIES 1990
CITY OF CHLrBBUCK
Bo~'NOCK COUNTY, IDAHO
City
Git)' of C~ubbuck
C'bubb~c.k, Idaho 83202
For S500,000 per value General Obligati~ Fire Protection Boo&, Series 1990, of th: City of
C~ubbuck, d~t&d August I, 1990, denomlnatlom of :~,000 ~d &~y integr~1 m~:ipl~ thereof ~cl ma:urb:g
aerlslly on August 1, 1991 Lb,roug~ August 1, 2005; in Iht, ~ounU ~hc~'n here~, wi~ interest payable
Au/~t 1, 1~1, a~d scmi.,,-~ue]J.y t. beree.fter o~ ~c ~r~t c~y of Fcbru~' ~d August orr ca~ yc~r at thc rate
or rates apcc~ecl h~cia unti~ ~md bonch are prod, vet will pa)' $_ ,~. t2t:~ plm aca:~ucd LGtcrcs:,
to thc date of del~very of said bonds to m.
'l~e s~du.lc of maturities, coupon rate or rate~, total interest cost, t~c net tmtcrcst cost, ~d thc
ncr effect|vt rate of intyrcst upon wLic. h t~ bicl h ba~ with interco: computed from Augu. s: ;l, 1993 to thc
m~turi~ date of the boo& arc iLS follows:
Principal
~0,oo0
Total SSO0,O00
l:or bidders' con,,'cn~tnct the folio~i~ i.uforma~o: i~ pro~4dcd.
Pr~dp~J
Total ~00,000
:Bond Yeus 4,610
Av~age L~'e 9,2/
Tote] Intt. rcst to Maturity ......................................................
Less Prcmim:n ...........................................................................
Net L,~tercst Cost ....................................................................
Net F. ffcctivt Interest Rate ......................................................
40 6O
lO0 235
1~o
2~0
4,6~0
Ti~ bid is aubmitted in accordance ~ith and aubjcct to ~ proviskr~ contein~ in the OP-~CLAL
NOTICE OT BOND gALE of th~c bonch wMch by ~h;; rcfc.:mae i~ ma& a part h~'cof.
A cas~er'a or ccrtif'~ good f~th check i~ the sum of S 25,000 d. raw~ upon ~ i~corporatcd bank
or trust company and payable to the otdgr of the Cit')' of C. hubbu~=k, Idaho i~ ¢oclosed to b~ retaLned l:r)' the
City Tre. astu'er and al,pl]cd on thc pu.rcELse price of thc bon~ J~ wc arc the aucccsrd'uJ b~dct, oLhcr~st to
RcspcctfuDy aubmitted th.2 14tb day or' August, 1999.
Oo~ ~th ~ P re--cd ud re~ipt ~cr~f a~owl~ ~ 14t day of A~t,
..' Security
-~ ~ank
Dat~
350123790
8-14-90
Pay te thc Order of
Treasurer of the Ci%s of Chubbuck
s25,000.00
~r D. A. Davidson