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0340 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: 3 (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. 4 "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; 14 (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. 28 604. 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] 29 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