HomeMy Public PortalAbout2001-14 Police Bonds0 ORDINANCE NO. aO^ / —%
An Ordinance of the City of Greencastle, Indiana, authorizing the
issuance and sale of bonds of said City for the purpose of providing
funds to be used forthe acquisition and renovation of a building to be
used as a City police station, together with all necessary
appurtenances, related improvements and equipment, and incidental
expenses in connection therewith and on account of the issuance of
the bonds therefor
WHEREAS, the City of Greencastle ( "City ") is authorized by IC 36- 4 -6 -19 as in effect on
the date of issuance of the bonds authorized herein ( "Act ") to issue bonds to procure moneys to be
used in the exercise of the powers of the City and for the payment of City debts; and
WHEREAS, the Common Council of the City ( "Common Council ") hereby determines to
provide for the cost of the acquisition and renovation of a building to be used as a City police station,
® together with all necessary appurtenances, related improvements and equipment ( "Project ") and the
incidental expenses in connection therewith and on account of the issuance of bonds therefor; and
WHEREAS, based upon the advice of the City's financial advisor, the Common Council has
determined that the estimated cost, including incidental expenses incurred in connection with the
Project and with the issuance of bonds to finance the Project, will be in an amount not to exceed
Seven Hundred Eighty -five Thousand Four Hundred Dollars ($785,400); and
WHEREAS, the City finds that it has funds on hand in the amount of $35,400 available to
apply on the costs of the Project and that the remaining $750,000 should be financed with the
issuance of general obligation bonds; and
WHEREAS, the Common Council finds that the total debt service on the bonds will be less
than $2,000,000 and, therefore, the bonds will not be issued to fund a controlled project, as defined
in IC 6- 1.1- 20 -1.1; and
881981.1
WHEREAS, the City has petitioned the State Board of Tax Commissioners and expects to
receive its order approving the issuance of the bonds in accordance with IC 6 -1.1- 18.5 -8; and
WHEREAS, the net assessed valuation of taxable property in the City, as shown in the last
final and complete assessment which was made in the year 2000 for state and county taxes
collectible in the year 2001 is $100,260,839 and the outstanding indebtedness of the City subject to
the constitutional limitation, exclusive of the bonds is $570,000; such assessment and outstanding
indebtedness amounts shall be verified at the time of the payment for and delivery of the bonds; and
WHEREAS, the Common Council adopted Ordinance No. 11 on September 11, 2001 making
a preliminary determination to issue the bonds; and
WHEREAS, notice of the City's determination to issue the bonds has been published and
posted as required by law; and
• WHEREAS, it is necessary that the bonds be issued in an amount not to exceed $750,000
to provide funds to pay such costs of the Project and the incidental expenses to be incurred in
connection with the Project and with the issuance and sale of the bonds;
NOW THEREFORE, BE IT ORDAINED, BY THE COMMON COUNCIL OF THE CITY
OF GREENCASTLE, INDIANA, THAT:
Section 1. Determination to Proceed; Authorization and Details of Bonds
(a) The City shall proceed to undertake the Project.
(b) In order to procure funds with which to pay the costs of the Project, including the
costs of issuance of the Bonds on account of the Project, the Clerk- Treasurer is authorized and
directed to have prepared and to issue and sell the bonds of the City, to be designated as "General
Ll
881981.1 -2-
® Obligation Bonds of 2001," in an aggregate principal amount not to exceed $750,000 ( "Bonds ") in
accordance with the Act.
(c) The Bonds shall be sold at a price of not less than 99% of the par value thereof, and
shall be issued in fully registered form in denominations of $5,000 or integral multiples thereof,
numbered consecutively from 1 upward, dated as of the first day of the month in which they are sold
or the date of delivery, as determined by the Clerk- Treasurer with the advice of the City's financial
advisor, and shall bear interest at a rate or rates not exceeding six and one -half percent (6.5 %) per
annum (the exact rate or rates to be determined by bidding), which interest shall be payable
semiannually on January 1 and July 1 of each year, commencing on July 1, 2002. Interest on the
Bonds shall be calculated according to a 360 -day year containing twelve 30 -day months. The Bonds
shall mature annually, or shall be subject to mandatory sinking fund redemption if term bonds are
® issued, on January 1 of each year with a final maturity no later than January 1, 2021, and in amounts
which will produce as level annual debt service as practicable with $5,000 denominations during the
years principal is paid.
All or a portion of the Bonds may be issued as one or more term bonds, upon election of the
successful bidder. Such term bonds shall have a stated maturity or maturities of January 1, in the
years as determined by the successful bidder, but in no event later than the last serial date of the
Bonds as determined in accordance with the above paragraph. The term bonds shall be subject to
mandatory sinking fund redemption and final payment(s) at maturity at 100% of the principal amount
thereof, plus accrued interest to the redemption date, on dates and in the amounts hereinafter
determined in accordance with the above paragraph.
881981.1 -3 -
" ( d ) T h e M a y o r a n d t h e C l e r k - T r e a s u r e r a r e a u t h o r i z e d a n d d i r e c t e d t o a p p o i n t a q u a l i f i e d
b a n k i n g i n s t i t u t i o n t o s e r v e a s R e g i s t r a r a n d P a y i n g A g e n t ( " R e g i s t r a r " o r ' P a y i n g A g e n t " ) f o r t h e
B o n d s , w h i c h s h a l l b e c h a r g e d w i t h t h e r e s p o n s i b i l i t y o f a u t h e n t i c a t i n g t h e B o n d s . T h e C l e r k -
T r e a s u r e r i s h e r e b y a u t h o r i z e d t o e n t e r i n t o s u c h a g r e e m e n t s o r u n d e r s t a n d i n g s w i t h s u c h b a n k a s
w i l l e n a b l e t h e b a n k t o p e r f o r m t h e s e r v i c e s r e q u i r e d o f a R e g i s t r a r a n d P a y i n g A g e n t . T h e C l e r k -
T r e a s u r e r i s f u r t h e r a u t h o r i z e d t o p a y s u c h f e e s a s t h e b a n k m a y c h a r g e f o r t h e s e r v i c e s i t p r o v i d e s
a s R e g i s t r a r a n d P a y i n g A g e n t , a n d s u c h f e e s m a y b e p a i d f r o m t h e b o n d f u n d e s t a b l i s h e d t o p a y t h e
p r i n c i p a l o f a n d i n t e r e s t o n t h e B o n d s . U p o n a g r e e m e n t b e t w e e n t h e C i t y a n d t h e s u c c e s s f u l b i d d e r
f o r t h e B o n d s , t h e C l e r k - T r e a s u r e r m a y b e d e s i g n a t e d a s t h e R e g i s t r a r a n d P a y i n g A g e n t , a n d , i n t h a t
c a s e , s h a l l b e c h a r g e d w i t h a l l r e s p o n s i b i l i t i e s o f a R e g i s t r a r a n d P a y i n g A g e n t .
( e ) T h e p r i n c i p a l o f t h e B o n d s s h a l l b e p a y a b l e a t t h e p r i n c i p a l c o r p o r a t e t r u s t o f f i c e o f
� t h e P a y i n g A g e n t . I n t e r e s t o n t h e B o n d s s h a l l b e p a i d b y c h e c k m a i l e d b y f i r s t c l a s s m a i l o n e
b u s i n e s s d a y p r i o r t o t h e i n t e r e s t p a y m e n t d a t e t o t h e r e g i s t e r e d o w n e r , a s o f t h e f i f t e e n t h d a y o f t h e
m o n t h i m m e d i a t e l y p r e c e d i n g t h e i n t e r e s t p a y m e n t d a t e ( ' R e c o r d D a t e " ) , t o t h e a d d r e s s a s i t a p p e a r s
o n t h e r e g i s t r a t i o n b o o k s k e p t b y t h e R e g i s t r a r o r a t s u c h o t h e r a d d r e s s a s i s p r o v i d e d t o t h e P a y i n g
A g e n t i n w r i t i n g b y s u c h r e g i s t e r e d o w n e r . I f p a y m e n t o f p r i n c i p a l o r i n t e r e s t i s m a d e t o a
d e p o s i t o r y , p a y m e n t s h a l l b e m a d e b y w i r e t r a n s f e r o n t h e p a y m e n t d a t e i n s a m e - d a y f u n d s . I f t h e
p a y m e n t d a t e o c c u r s o n a d a t e w h e n f i n a n c i a l i n s t i t u t i o n s a r e n o t o p e n f o r b u s i n e s s , t h e w i r e t r a n s f e r
s h a l l b e m a d e o n t h e n e x t s u c c e e d i n g b u s i n e s s d a y . T h e P a y i n g A g e n t s h a l l b e i n s t r u c t e d t o w i r e
t r a n s f e r p a y m e n t s b y 1 : 0 0 p . m . ( N e w Y o r k C i t y t i m e ) s o s u c h p a y m e n t s a r e r e c e i v e d a t t h e
d e p o s i t o r y b y 2 : 3 0 p . m . ( N e w Y o r k C i t y t i m e ) . A l l p a y m e n t s o n t h e B o n d s s h a l l b e m a d e i n a n y
O
8 8 1 9 8 1 . 1 - 4 -
e coin or currency of the United States of America, which on the date of such payment shall be legal
tender for the payment of public and private debts.
(f)
Each Bond shall be transferable or exchangeable only upon the books of the City kept
for that purpose at the principal corporate trust office of the Registrar by the registered owner or by
its attorney duly authorized in writing, upon surrender of such Bond together with a written
instrument of transfer or exchange satisfactory to the Registrar duly executed bythe registered owner
or its attorney duly authorized in writing, and thereupon a new fully registered Bond or Bonds in the
same aggregate principal amount and of the same maturity, shall be executed and delivered in the
name of the transferee or transferees or the registered owner, as the case may be, in exchange
therefor. The City, Registrar and Paying Agent and any other registrar for the Bonds may treat and
consider the person in whose name such Bonds are registered as the absolute owner thereof for all
• purposes including for the purpose of receiving payment of, or on account of, the principal thereof
and interest due thereon.
(g) The Bonds shall bear an original date which shall be the first day of the month in
which the Bonds are sold or the date of delivery, as determined by the Clerk - Treasurer with the
advice of the City's financial advisor, and each Bond shall also bear the date of its authentication.
Bonds authenticated on or before the Record Date immediately preceding the first interest payment
date shall be paid interest from the original date. Bonds authenticated thereafter shall be paid interest
from the interest payment date to which interest has been paid next preceding the date of
authentication of such Bonds unless the Bonds are authenticated after the Record Date and on or
before the corresponding interest payment date, in which case interest thereon shall be paid from
881981.1 -5-
" s u c h i n t e r e s t p a y m e n t d a t e . I f a t t h e t i m e o f a u t h e n t i c a t i o n o f a n y B o n d i n t e r e s t i s i n d e f a u l t t h e r e o n ,
t h a t B o n d s h a l l b e a r i n t e r e s t f r o m t h e d a t e t o w h i c h i n t e r e s t h a s b e e n p a i d i n f u l l .
( h ) T h e B o n d s s h a l l b e s i g n e d i n t h e n a m e o f t h e C i t y b y t h e m a n u a l o r f a c s i m i l e
s i g n a t u r e o f t h e M a y o r , a n d t h e s e a l o f t h e C i t y s h a l l b e a f f i x e d , i m p r i n t e d , e n g r a v e d o r o t h e r w i s e
r e p r o d u c e d t h e r e o n a n d a t t e s t e d b y t h e m a n u a l o r f a c s i m i l e s i g n a t u r e o f t h e C l e r k - T r e a s u r e r . T h e
B o n d s s h a l l b e a u t h e n t i c a t e d w i t h t h e m a n u a l s i g n a t u r e o f a n a u t h o r i z e d r e p r e s e n t a t i v e o f t h e
R e g i s t r a r , a n d n o B o n d s h a l l b e v a l i d o r b e c o m e o b l i g a t o r y f o r a n y p u r p o s e u n t i l t h e c e r t i f i c a t e o f
a u t h e n t i c a t i o n t h e r e o n s h a l l h a v e b e e n s o e x e c u t e d . S u b j e c t t o r e g i s t r a t i o n p r o v i s i o n s , t h e B o n d s
s h a l l b e n e g o t i a b l e u n d e r t h e l a w s o f t h e S t a t e o f I n d i a n a .
( i ) T h e C o m m o n C o u n c i l h a s d e t e r m i n e d t h a t i t m a y b e b e n e f i c i a l t o t h e C i t y t o h a v e t h e
B o n d s h e l d b y a c e n t r a l d e p o s i t o r y s y s t e m p u r s u a n t t o a n a g r e e m e n t b e t w e e n t h e C i t y a n d T h e
D e p o s i t o r y T r u s t C o m p a n y , N e w Y o r k , N e w Y o r k ( " D e p o s i t o r y T r u s t C o m p a n y " ) a n d h a v e t r a n s f e r s
o f t h e B o n d s e f f e c t e d b y b o o k - e n t r y o n t h e b o o k s o f t h e c e n t r a l d e p o s i t o r y s y s t e m ( ' B o o k E n t r y
S y s t e m " ) . T h e B o n d s m a y b e i n i t i a l l y i s s u e d i n t h e f o r m o f a s e p a r a t e s i n g l e a u t h e n t i c a t e d f u l l y
r e g i s t e r e d B o n d f o r t h e a g g r e g a t e p r i n c i p a l a m o u n t o f e a c h s e p a r a t e m a t u r i t y o f t h e B o n d s . I n s u c h
c a s e , u p o n i n i t i a l i s s u a n c e , t h e o w n e r s h i p o f s u c h B o n d s s h a l l b e r e g i s t e r e d i n t h e r e g i s t e r k e p t b y
t h e R e g i s t r a r i n t h e n a m e o f C E D E & C O . , a s n o m i n e e o f t h e D e p o s i t o r y T r u s t C o m p a n y .
W i t h r e s p e c t t o t h e B o n d s r e g i s t e r e d i n t h e r e g i s t e r k e p t b y t h e R e g i s t r a r i n t h e n a m e o f
C E D E & C O . , a s n o m i n e e o f t h e D e p o s i t o r y T r u s t C o m p a n y , t h e C i t y a n d t h e P a y i n g A g e n t s h a l l
h a v e n o r e s p o n s i b i l i t y o r o b l i g a t i o n t o a n y o t h e r h o l d e r s o r o w n e r s ( i n c l u d i n g a n y b e n e f i c i a l o w n e r
( ' B e n e f i c i a l O w n e r " ) ) o f t h e B o n d s w i t h r e s p e c t t o ( i ) t h e a c c u r a c y o f t h e r e c o r d s o f t h e D e p o s i t o r y
� T r u s t C o m p a n y , C E D E & C O . , o r a n y B e n e f i c i a l O w n e r w i t h r e s p e c t t o o w n e r s h i p q u e s t i o n s , ( i i )
8 8 1 9 8 1 . 1 - 6 -
® the delivery to any bondholder (including any Beneficial Owner) or any other person, other than the
Depository Trust Company, of any notice with respect to the Bonds including any notice of
redemption, or (iii) the payment to any bondholder (including any Beneficial Owner) or any other
person, other than the Depository Trust Company, of any amount with respect to the principal of, or
premium, if any, or interest on the Bonds except as otherwise provided herein.
No person other than the Depository Trust Company shall receive an authenticated Bond
evidencing an obligation of the City to make payments of the principal of and premium, if any, and
interest on the Bonds pursuant to this ordinance. The City and the Registrar and Paying Agent may
treat as and deem the Depository Trust Company or CEDE & CO. to be the absolute bondholder of
each of the Bonds for the purpose of (i) payment of the principal of and premium, if any, and interest
on such Bonds; (ii) giving notices of redemption and other notices permitted to be given to
• bondholders with respect to such Bonds; (iii) registering transfers with respect to such Bonds; (iv)
obtaining any consent or other action required or permitted to be taken of or by bondholders; (v)
voting; and (vi) for all other purposes whatsoever. The Paying Agent shall pay all principal of and
premium, if any, and interest on the Bonds only to or upon the order of the Depository Trust
Company, and all such payments shall be valid and effective fully to satisfy and discharge the City's
and the Paying Agent's obligations with respect to principal of and premium, if any, and interest on
the Bonds to the extent of the sum or sums so paid. Upon delivery by the Depository Trust Company
to the City of written notice to the effect that the Depository Trust Company has determined to
substitute a new nominee in place of CEDE & CO., and subject to the provisions herein with respect
to consents, the words "CEDE & CO." in this resolution shall refer to such new nominee of the
• Depository Trust Company. Notwithstanding any other provision hereof to the contrary, so long as
881981.1 -7-
" a n y B o n d i s r e g i s t e r e d i n t h e n a m e o f C E D E & C O . , a s n o m i n e e o f t h e D e p o s i t o r y T r u s t C o m p a n y ,
a l l p a y m e n t s w i t h r e s p e c t t o t h e p r i n c i p a l o f a n d p r e m i u m , i f a n y , a n d i n t e r e s t o n s u c h B o n d s a n d
a l l n o t i c e s w i t h r e s p e c t t o s u c h B o n d s s h a l l b e m a d e a n d g i v e n , r e s p e c t i v e l y , t o t h e D e p o s i t o r y T r u s t
C o m p a n y a s p r o v i d e d i n a r e p r e s e n t a t i o n l e t t e r f r o m t h e C i t y t o t h e D e p o s i t o r y T r u s t C o m p a n y .
U p o n r e c e i p t b y t h e C i t y o f w r i t t e n n o t i c e f r o m t h e D e p o s i t o r y T r u s t C o m p a n y t o t h e e f f e c t
t h a t t h e D e p o s i t o r y T r u s t C o m p a n y i s u n a b l e o r u n w i l l i n g t o d i s c h a r g e i t s r e s p o n s i b i l i t i e s a n d n o
s u b s t i t u t e d e p o s i t o r y w i l l i n g t o u n d e r t a k e t h e f u n c t i o n s o f t h e D e p o s i t o r y T r u s t C o m p a n y h e r e u n d e r
c a n b e f o u n d w h i c h i s w i l l i n g a n d a b l e t o u n d e r t a k e s u c h f u n c t i o n s u p o n r e a s o n a b l e a n d c u s t o m a r y
t e r m s , t h e n t h e B o n d s s h a l l n o l o n g e r b e r e s t r i c t e d t o b e i n g r e g i s t e r e d i n t h e r e g i s t e r o f t h e C i t y k e p t
b y t h e R e g i s t r a r i n t h e n a m e o f C E D E & C O . , a s n o m i n e e o f t h e D e p o s i t o r y T r u s t C o m p a n y , b u t m a y
b e r e g i s t e r e d i n w h a t e v e r n a m e o r n a m e s t h e b o n d h o l d e r s t r a n s f e r r i n g o r e x c h a n g i n g t h e B o n d s s h a l l
" d e s i g n a t e , i n a c c o r d a n c e w i t h t h e p r o v i s i o n s o f t h i s o r d i n a n c e .
I f t h e C i t y d e t e r m i n e s t h a t i t i s i n t h e b e s t i n t e r e s t o f t h e b o n d h o l d e r s t h a t t h e y b e a b l e t o
o b t a i n c e r t i f i c a t e s f o r t h e f u l l y r e g i s t e r e d B o n d s , t h e C i t y m a y n o t i f y t h e D e p o s i t o r y T r u s t C o m p a n y
a n d t h e R e g i s t r a r , w h e r e u p o n t h e D e p o s i t o r y T r u s t C o m p a n y w i l l n o t i f y t h e B e n e f i c i a l O w n e r s o f
t h e a v a i l a b i l i t y t h r o u g h t h e D e p o s i t o r y T r u s t C o m p a n y o f c e r t i f i c a t e s f o r t h e B o n d s . I n s u c h e v e n t ,
t h e R e g i s t r a r s h a l l p r e p a r e , a u t h e n t i c a t e , t r a n s f e r a n d e x c h a n g e c e r t i f i c a t e s f o r t h e B o n d s a s r e q u e s t e d
b y t h e D e p o s i t o r y T r u s t C o m p a n y a n d a n y B e n e f i c i a l O w n e r s i n a p p r o p r i a t e a m o u n t s , a n d w h e n e v e r
t h e D e p o s i t o r y T r u s t C o m p a n y r e q u e s t s t h e C i t y a n d t h e R e g i s t r a r t o d o s o , t h e R e g i s t r a r a n d t h e C i t y
w i l l c o o p e r a t e w i t h t h e D e p o s i t o r y T r u s t C o m p a n y b y t a k i n g a p p r o p r i a t e a c t i o n a f t e r r e a s o n a b l e
n o t i c e ( i ) t o m a k e a v a i l a b l e o n e o r m o r e s e p a r a t e c e r t i f i c a t e s e v i d e n c i n g t h e f u l l y r e g i s t e r e d B o n d s
"
8 8 1 9 8 1 . 1 - 8 -
0 of any Beneficial Owner's Depository Trust Company account or (ii) to arrange for another securities
depository to maintain custody of certificates for and evidencing the Bonds.
If the Bonds shall no longer be restricted to being registered in the name of the Depository
Trust Company, the Registrar shall cause said Bonds to be printed in blank in such number as the
Registrar shall determine to be necessary or customary; provided, however, that the Registrar shall
not be required to have such Bonds printed until it shall have received from the City indemnification
for all costs and expenses associated with such printing.
In connection with any notice or other communication to be provided to bondholders by the
City or the Registrar with respect to any consent or other action to be taken by bondholders, the City
or the Registrar, as the case may be, shall establish a record date for such consent or other action and
give the Depository Trust Company notice of such record date not less than fifteen (15) calendar
10 days in advance of such record date to the extent possible.
So long as said Bonds are registered in the name of the Depository Trust Company or CEDE
& CO. or any substitute nominee, the City and the Registrar and Paying Agent shall be entitled to
request and to rely upon a certificate or other written representation from the Beneficial Owners of
the Bonds or from the Depository Trust Company on behalf of such Beneficial Owners stating the
amount of their respective beneficial ownership interests in the Bonds and setting forth the consent,
advice, direction, demand or vote of the Beneficial Owners as of a record date selected by the
Registrar and the Depository Trust Company, to the same extent as if such consent, advice, direction,
demand or vote were made by the bondholders for purposes of this resolution and the City and the
Registrar and Paying Agent shall for such purposes treat the Beneficial Owners as the bondholders.
• Along with any such certificate or representation, the Registrar may request the Depository Trust
881981.1 -9-
" C o m p a n y t o d e l i v e r , o r c a u s e t o b e d e l i v e r e d , t o t h e R e g i s t r a r a l i s t o f a l l B e n e f i c i a l O w n e r s o f t h e
B o n d s , t o g e t h e r w i t h t h e d o l l a r a m o u n t o f e a c h B e n e f i c i a l O N v n e r S i n t e r e s t i n t h e B o n d s a n d t h e
c u r r e n t a d d r e s s e s o f s u c h B e n e f i c i a l O w n e r s .
0 ) T h e B o n d s m a t u r i n g o n a n d a f t e r J a n u a r y 1 , 2 0 1 2 a r e r e d e e m a b l e a t t h e o p t i o n o f t h e
C i t y , o n J a n u a r y 1 , 2 0 1 1 , o r a n y d a t e t h e r e a f t e r , o n t h i r t y d a y s ' n o t i c e , i n w h o l e o r i n p a r t , i n t h e o r d e r
o f m a t u r i t y a s d e t e r m i n e d b y t h e C i t y a n d b y l o t w i t h i n a m a t u r i t y , a t f a c e v a l u e , p l u s a c c r u e d i n t e r e s t
t o t h e d a t e f i x e d f o r r e d e m p t i o n , w i t h n o p r e m i u m .
A n y B o n d s i s s u e d a s t e r m b o n d s , u p o n e l e c t i o n o f t h e s u c c e s s f u l b i d d e r , s h a l l b e s u b j e c t t o
m a n d a t o r y s i n k i n g f u n d r e d e m p t i o n o n J a n u a r y 1 a t 1 0 0 % o f f a c e v a l u e i n a c c o r d a n c e w i t h t h e
m a t u r i t y s c h e d u l e h e r e i n a f t e r d e t e r m i n e d i n a c c o r d a n c e w i t h p a r a g r a p h ( c ) . T h e R e g i s t r a r s h a l l
c r e d i t a g a i n s t t h e m a n d a t o r y s i n k i n g f u n d r e q u i r e m e n t f o r a n y t e r m b o n d s , a n d a n y c o r r e s p o n d i n g
" m a n d a t o r y r e d e m p t i o n o b l i g a t i o n , i n t h e o r d e r d e t e r m i n e d b y t h e C i t y , a n y t e r m b o n d s m a t u r i n g o n
t h e s a m e d a t e w h i c h h a v e p r e v i o u s l y b e e n r e d e e m e d ( o t h e r w i s e t h a n a s a r e s u l t o f a p r e v i o u s
m a n d a t o r y r e d e m p t i o n r e q u i r e m e n t ) o r d e l i v e r e d t o t h e R e g i s t r a r f o r c a n c e l l a t i o n o r p u r c h a s e d f o r
c a n c e l l a t i o n b y t h e P a y i n g A g e n t a n d n o t t h e r e t o f o r e a p p l i e d a s a c r e d i t a g a i n s t a n y r e d e m p t i o n
o b l i g a t i o n . E a c h t e r m b o n d s o d e l i v e r e d o r c a n c e l e d s h a l l b e c r e d i t e d b y t h e R e g i s t r a r a t 1 0 0 % o f
t h e p r i n c i p a l a m o u n t t h e r e o f a g a i n s t t h e m a n d a t o r y s i n k i n g f u n d o b l i g a t i o n o n s u c h m a n d a t o r y
r e d e m p t i o n d a t e f o r t h a t t e r m b o n d . A n y e x c e s s o f s u c h a m o u n t s h a l l b e c r e d i t e d o n f u t u r e
r e d e m p t i o n o b l i g a t i o n s , a n d t h e p r i n c i p a l a m o u n t o f t h a t t e r m b o n d t o b e r e d e e m e d b y o p e r a t i o n o f
t h e m a n d a t o r y s i n k i n g f u n d r e q u i r e m e n t s h a l l b e a c c o r d i n g l y r e d u c e d .
E a c h F i v e T h o u s a n d D o l l a r s ( $ 5 , 0 0 0 ) p r i n c i p a l a m o u n t s h a l l b e c o n s i d e r e d a s e p a r a t e B o n d
" f o r p u r p o s e s o f r e d e m p t i o n . I f l e s s t h a n a n e n t i r e m a t u r i t y i s c a l l e d f o r r e d e m p t i o n , t h e B o n d s t o b e
8 8 1 9 8 1 . 1 - 1 0 -
" c a l l e d s h a l l b e s e l e c t e d b y l o t b y t h e R e g i s t r a r . I f s o m e B o n d s a r e t o b e r e d e e m e d b y o p t i o n a l
r e d e m p t i o n a n d m a n d a t o r y s i n k i n g f u n d r e d e m p t i o n o n t h e s a m e d a t e , t h e R e g i s t r a r s h a l l s e l e c t b y
l o t t h e B o n d s f o r o p t i o n a l r e d e m p t i o n b e f o r e s e l e c t i n g t h e B o n d s b y l o t f o r t h e m a n d a t o r y s i n k i n g
f u n d r e d e m p t i o n .
I n e i t h e r c a s e , n o t i c e o f r e d e m p t i o n s h a l l b e m a i l e d t o t h e a d d r e s s o f t h e r e g i s t e r e d o w n e r a s
s h o w n o n t h e r e g i s t r a t i o n r e c o r d s o f t h e R e g i s t r a r , a s o f t h e d a t e w h i c h i s f o r t y - f i v e ( 4 5 ) d a y s p r i o r
t o t h e d a t e f i x e d f o r r e d e m p t i o n , b u t n o t l e s s t h a n t h i r t y ( 3 0 ) d a y s p r i o r t o s u c h r e d e m p t i o n d a t e ,
u n l e s s n o t i c e i s w a i v e d b y t h e o w n e r o f t h e B o n d o r B o n d s r e d e e m e d . T h e n o t i c e s h a l l s p e c i f y t h e
d a t e a n d p l a c e o f r e d e m p t i o n a n d s u f f i c i e n t i d e n t i f i c a t i o n o f t h e B o n d s c a l l e d f o r r e d e m p t i o n . T h e
p l a c e o f r e d e m p t i o n m a y b e d e t e r m i n e d b y t h e C i t y . I n t e r e s t o n t h e B o n d s s o c a l l e d f o r r e d e m p t i o n
s h a l l c e a s e a n d t h e B o n d s w i l l n o l o n g e r b e d e e m e d o u t s t a n d i n g u n d e r t h i s o r d i n a n c e o n t h e
" r e d e m p t i o n d a t e f i x e d i n s u c h n o t i c e i f s u f f i c i e n t f u n d s a r e a v a i l a b l e a t t h e p l a c e o f r e d e m p t i o n t o
p a y t h e r e d e m p t i o n p r i c e , i n c l u d i n g a c c r u e d i n t e r e s t a n d r e d e m p t i o n p r e m i u m , i f a n y , t o t h e
r e d e m p t i o n d a t e , o n t h e d a t e s o n a m e d . F a i l u r e t o g i v e s u c h n o t i c e b y m a i l i n g , o r a n y d e f e c t i n s u c h
n o t i c e , w i t h r e s p e c t t o a n y B o n d s h a l l n o t a f f e c t t h e v a l i d i t y o f a n y p r o c e e d i n g s f o r r e d e m p t i o n o f
o t h e r B o n d s .
I f t h e B o n d s a r e n o t p r e s e n t e d f o r p a y m e n t o r r e d e m p t i o n o n t h e d a t e f i x e d t h e r e f o r , t h e C i t y
m a y d e p o s i t i n t r u s t w i t h t h e P a y i n g A g e n t , a n a m o u n t s u f f i c i e n t t o p a y s u c h B o n d o r t h e r e d e m p t i o n
p r i c e , a s t h e c a s e m a y b e , i n c l u d i n g a c c r u e d i n t e r e s t t o t h e d a t e o f s u c h p a y m e n t o r r e d e m p t i o n , a n d
t h e r e a f t e r t h e r e g i s t e r e d o w n e r s h a l l l o o k o n l y t o t h e f u n d s s o d e p o s i t e d i n t r u s t w i t h t h e P a y i n g
A g e n t f o r p a y m e n t , a n d t h e C i t y s h a l l h a v e n o f u r t h e r o b l i g a t i o n o r l i a b i l i t y i n r e s p e c t t h e r e t o .
" S e c t i o n 2 . F o r m o f B o n d T h e f o r m o f t h e B o n d s s h a l l b e s u b s t a n t i a l l y a s f o l l o w s :
8 8 1 9 8 1 . 1
STATE OF INDIANA COUNTY OF PUTNAM
CITY OF GREENCASTLE, INDIANA
GENERAL OBLIGATION BOND OF 2001
INTEREST MATURITY ORIGINAL AUTHENTICATION
RATE DATE DATE DATE CUSIP
REGISTERED OWNER:
12 70469 MIffuil
The City of Greencastle in Putnam County, Indiana, acknowledges itself indebted, and for
value received hereby promises to pay, to the Registered Owner or registered assigns, the Principal
Sum set forth above on the Maturity Date set forth above (unless this bond be subject to and be
called for redemption prior to maturity as hereinafter provided), and to pay interest hereon until the
City's obligation with respect to the payment of the Principal Sum shall be discharged at the rate per
® annum specified above from the interest payment date immediately preceding the date of
authentication of this bond unless this bond is authenticated on or before June 15, 2001, in which
case interest shall be paid from the Original Date or unless this bond is authenticated between the
fifteenth day of the month preceding an interest payment date and the interest payment date, in which
case interest shall be paid from such interest payment date. Interest shall be payable on the first days
of January and July of each year, commencing July 1, 2002.
The principal of and premium, if any, on this bond are payable at the principal office of
in the of , Indiana ( "Paying Agent" or "Registrar ").
Interest on this bond shall be paid by check mailed by first class mail one business day prior to the
interest payment date, to the Registered Owner, as of the fifteenth day of the month immediately
preceding the interest payment date, to the address as it appears on the registration books kept by the
Registrar or at such other address as is provided to the Paying Agent in writing by the Registered
Owner. If payment of principal or interest is made to a depository, payment shall be made by wire
transfer on the payment date in same -day funds. If the payment date occurs on a date when financial
institutions are not open for business, the wire transfer shall be made on the next succeeding business
day. The Paying Agent shall wire transfer payments by 1:00 p.m. (New York City time) so such
payments are received at the depository by 2:30 p.m. (New York City time). All payments on this
bond shall be made in any coin or currency of the United States of America, which on the dates of
such payment shall be legal tender for the payment of public and private debts.
0
881981.1 -12-
" T h e f u l l f a i t h a n d c r e d i t o f t h e C i t y o f G r e e n c a s t l e , I n d i a n a , t o g e t h e r w i t h a l l o f i t s t a x a b l e
p r o p e r t y , b o t h r e a l a n d p e r s o n a l , a r e h e r e b y i r r e v o c a b l y p l e d g e d t o t h e p u n c t u a l p a y m e n t o f t h e
p r i n c i p a l o f a n d t h e i n t e r e s t o n t h i s b o n d a c c o r d i n g t o i t s t e r m s . T h e C i t y c o v e n a n t s t h a t i t w i l l c a u s e
a p r o p e r t y t a x f o r t h e p a y m e n t o f t h e p r i n c i p a l o f a n d i n t e r e s t o n t h i s b o n d t o b e l e v i e d , c o l l e c t e d ,
a p p r o p r i a t e d a n d a p p l i e d f o r t h a t p u r p o s e a s s e t f o r t h i n I C 6 - 1 . 1 - 1 8 . 5 - 8 .
T h i s b o n d i s o n e o f a n a u t h o r i z e d i s s u e o f b o n d s o f t h e C i t y o f G r e e n c a s t l e , I n d i a n a ,
d e s i g n a t e d " G e n e r a l O b l i g a t i o n B o n d s o f 2 0 0 1 " a g g r e g a t i n g
D o l l a r s ( $ ; n u m b e r e d c o n s e c u t i v e l y f r o m 1 u p w a r d ; i s s u e d f o r t h e p u r p o s e o f p r o c u r i n g
f u n d s t o b e a p p l i e d o n t h e c o s t o f t h e a c q u i s i t i o n a n d r e n o v a t i o n o f a b u i l d i n g t o b e u s e d a s a C i t y
p o l i c e s t a t i o n , t o g e t h e r w i t h a l l n e c e s s a r y a p p u r t e n a n c e s , r e l a t e d i m p r o v e m e n t s a n d e q u i p m e n t , a n d
t h e i n c i d e n t a l e x p e n s e s i n c o n n e c t i o n t h e r e w i t h a n d o n a c c o u n t o f t h e i s s u a n c e o f b o n d s t h e r e f o r ,
w h i c h b o n d s a r e i s s u e d p u r s u a n t t o a B o n d O r d i n a n c e a d o p t e d b y t h e C o m m o n C o u n c i l o f t h e C i t y
o f G r e e n c a s t l e , I n d i a n a , o n t h e _ d a y o f 2 0 0 1 ( " O r d i n a n c e " ) , a u t h o r i z i n g t h e
i s s u a n c e a n d s a l e o f b o n d s o f t h e C i t y a n d T i t l e 3 6 , A r t i c l e 4 , C h a p t e r 6 , S e c t i o n 1 9 o f t h e I n d i a n a
C o d e a s i n e f f e c t o n t h e d a t e o f i s s u a n c e o f t h i s b o n d .
T h i s b o n d i s t r a n s f e r a b l e o r e x c h a n g e a b l e o n l y u p o n t h e b o o k s o f t h e C i t y k e p t f o r t h a t
p u r p o s e a t t h e o f f i c e o f t h e R e g i s t r a r , b y t h e R e g i s t e r e d O w n e r o r b y i t s a t t o r n e y d u l y a u t h o r i z e d i n
w r i t i n g , u p o n s u r r e n d e r o f t h i s b o n d t o g e t h e r w i t h a w r i t t e n i n s t r u m e n t o f t r a n s f e r o r e x c h a n g e
s a t i s f a c t o r y t o t h e R e g i s t r a r d u l y e x e c u t e d b y t h e R e g i s t e r e d O w n e r o r i t s a t t o r n e y d u l y a u t h o r i z e d
" i n w r i t i n g , a n d t h e r e u p o n a n e w f u l l y r e g i s t e r e d b o n d o r b o n d s i n t h e s a m e a g g r e g a t e p r i n c i p a l
a m o u n t a n d o f t h e s a m e m a t u r i t y , s h a l l b e e x e c u t e d a n d d e l i v e r e d i n t h e n a m e o f t h e t r a n s f e r e e o r
t r a n s f e r e e s o r t o t h e R e g i s t e r e d O w n e r , a s t h e c a s e m a y b e , i n e x c h a n g e t h e r e f o r . T h e C i t y , t h e
R e g i s t r a r a n d t h e P a y i n g A g e n t f o r t h i s b o n d m a y t r e a t a n d c o n s i d e r t h e p e r s o n i n w h o s e n a m e t h i s
b o n d i s r e g i s t e r e d a s t h e a b s o l u t e o w n e r h e r e o f f o r a l l p u r p o s e s i n c l u d i n g f o r t h e p u r p o s e o f
r e c e i v i n g p a y m e n t o f , o r o n a c c o u n t o f , t h e p r i n c i p a l h e r e o f a n d i n t e r e s t d u e h e r e o n .
T h e C i t y h a s d e s i g n a t e d t h e b o n d s a s q u a l i f i e d t a x - e x e m p t o b l i g a t i o n s t o q u a l i f y t h e b o n d s
f o r t h e $ 1 0 , 0 0 0 , 0 0 0 e x c e p t i o n f r o m t h e p r o v i s i o n s o f S e c t i o n 2 6 5 ( b ) o f t h e I n t e r n a l R e v e n u e C o d e
o f 1 9 8 6 , a s a m e n d e d a n d i n e f f e c t o n t h e i s s u e d a t e o f t h e b o n d s , r e l a t i n g t o t h e d i s a l l o w a n c e o f
1 0 0 % o f t h e d e d u c t i o n f o r i n t e r e s t e x p e n s e a l l o c a b l e t o t a x - e x e m p t o b l i g a t i o n s .
[ T h e b o n d s s h a l l b e i n i t i a l l y i s s u e d i n a B o o k E n t r y S y s t e m ( a s d e f i n e d i n t h e O r d i n a n c e ) .
T h e p r o v i s i o n s o f t h i s b o n d a n d o f t h e O r d i n a n c e a r e s u b j e c t i n a l l r e s p e c t s t o t h e p r o v i s i o n s o f t h e
L e t t e r o r R e p r e s e n t a t i o n s b e t w e e n t h e C i t y a n d T h e D e p o s i t o r y T r u s t C o m p a n y , o r a n y s u b s t i t u t e
a g r e e m e n t , e f f e c t i n g s u c h B o o k E n t r y S y s t e m . ]
T h e B o n d s m a t u r i n g o n a n d a f t e r J a n u a r y 1 , 2 0 1 2 a r e r e d e e m a b l e a t t h e o p t i o n o f t h e C i t y ,
o n J a n u a r y 1 , 2 0 1 1 , o r a n y d a t e t h e r e a f t e r , o n t h i r t y d a y s ' n o t i c e , i n w h o l e o r i n p a r t , i n t h e o r d e r o f
m a t u r i t y a s d e t e r m i n e d b y t h e C i t y a n d b y l o t w i t h i n a m a t u r i t y , a t f a c e v a l u e , p l u s a c c r u e d i n t e r e s t
t o t h e d a t e f i x e d f o r r e d e m p t i o n , w i t h n o p r e m i u m .
u
8 8 1 9 8 1 . 1 - 1 3 -
® [The bonds maturing on January 1, are subject to mandatory sinking fund
redemption prior to maturity, at a redemption price equal to the principal amount thereof plus
accrued interest, on January 1 in the years and in the amounts set forth below:
Term Bond
Year Amount
*
* Final Maturity]
Each Five Thousand Dollars ($5,000) principal amount shall be considered a separate bond
for purposes of redemption. If less than an entire maturity is called for redemption, the bonds to be
called shall be selected by lot by the Registrar. [If some bonds are to be redeemed by optional
redemption and mandatory sinking fund redemption on the same date, the Registrar shall select by
lot the bonds for optional redemption before selecting the bonds by lot for the mandatory sinking
fund redemption.]
Notice of redemption shall be mailed to the address of the registered owner as shown on the
® registration record of the Registrar, as of the date which is forty-five (45) days prior to the date fixed
for redemption, but not less than thirty (30) days prior to such redemption date, unless said notice
is waived by the registered owner of this bond. Any notice shall specify the date and place of
redemption and sufficient identification of the bonds called for redemption. The place of redemption
may be determined by the City. Interest on the bonds so called for redemption shall cease on the
redemption date fixed in such notice, if sufficient funds are available at the place of redemption to
pay the redemption price, including interest accrued to the redemption date, on the date so named.
Failure to give such notice by mailing, or any defect in such notice, with respect to any bond shall
not affect the validity of any proceedings for redemption of other bonds.
If this bond shall not be presented for payment or redemption on the date fixed therefor, the
City may deposit in trust with the Paying Agent, an amount sufficient to pay such bond or the
redemption price, as the case may be, including accrued interest to the date of such payment or
redemption, and thereafter the registered owner shall look only to the funds so deposited in trust with
that bank for payment, and the City shall have no further obligation or liability in respect thereto.
THE OWNER OF THIS BOND, BY THE ACCEPTANCE OF THIS BOND HEREBY
AGREES TO ALL THE TERMS AND PROVISIONS CONTAINED IN THE ORDINANCE. The
bonds are subject to defeasance prior to redemption or payment as provided in the Ordinance. The
Ordinance may be amended without the consent of the owners of the bonds as provided in the
Ordinance if the Common Council in its sole discretion, determines that the amendment shall not
adversely affect the rights of any of the owners of the bonds.
e
881981.1 - 14-
® The bonds maturing in any one year are issuable only in fully registered form in the
denomination of $5,000 or integral multiples thereof not exceeding the aggregate principal amount
of the bonds maturing in such year.
It is hereby certified, recited and declared that all acts, conditions and things required to be
done precedent to and in the execution, issuance and delivery of this bond have been done and
performed in regular and due form as provided by law; that this bond and the total issue of the bonds
is within every limit of indebtedness as prescribed by the constitution and laws of the State of
Indiana.
This bond shall not be valid or become obligatory for any purpose until the certificate of
authentication hereon shall have been duly executed by an authorized representative of the Registrar.
IN WITNESS WHEREOF, the City of Greencastle in Putnam County, Indiana, has caused
this bond to be executed in the name of the City of Greencastle by the manual or facsimile signature
of its Mayor, the seal of the City or a facsimile thereof to be affixed, imprinted, engraved or
otherwise reproduced hereon and attested by the manual or facsimile signature of the Clerk -
Treasurer.
CITY OF GREENCASTLE, INDIANA
E
(SEAL)
ATTEST:
Clerk- Treasurer
Mayor
an
881981.1 - 15-
® REGISTRAR'S CERTIFICATE OF AUTHENTICATION
This bond is one of the bonds described in the within mentioned Ordinance.
as Registrar
Authorized Representative
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto
constitutes and appoints
attorney, to transfer the within bond in the books
kept for the registration thereof with full power of substitution in the premises.
o Dated:
NOTICE: Signature(s) must be
guaranteed by an eligible guarantor
institution participating in a Securities
Transfer Association recognized
signature guarantee program.
NOTICE: The signature to this
assignment must correspond with the
name as it appears on the face of the
within bond in every particular, without
alteration or enlargement or any change
whatsoever.
(end of bond form)
Section 3. Sale of Bonds Prior to the sale of the Bonds, the Clerk- Treasurer shall cause to
be published either (i) a notice of such sale two (2) times at least one (1) week apart in The Banner
Graphic, a newspaper published and having general circulation in the City of Greencastle, with the
first publication occurring at least fifteen (15) days prior to the sale date and the second publication
• occurring at least three (3) days prior to the sale date, or (ii) a notice of intent to sell bonds in the
the within bond and all rights thereunder, and hereby irrevocably
881981.1 - 16 -
® Court & Commercial Record and The Banner - Graphic, all in accordance with IC 5 -1 -11 and IC 5 -3-
1. A notice or summary notice of sale maybe published in the Court & Commercial Record or The
Bond Buyer, financial journals published in the City of Indianapolis and in the City and State of New
York, respectively, in the discretion of the Clerk- Treasurer. The notice shall state the purpose for
which the Bonds are being issued, the total amount of the Bonds, the maximum rate of interest on
the Bonds, the time and place of payment, the terms and conditions on which bids will be received
and the sale made, and such other information as the Clerk- Treasurer, upon advice of counsel
deemed necessary. The notice shall provide, among other things, that each bid shall be accompanied
by a certified or cashier's check or a financial surety bond to guarantee performance on the part of
the bidder. If a financial surety bond is used, it must be from an insurance company licensed to issue
such bond in the State of Indiana, and such bond must be submitted to the prior to the opening of
® the bids. The financial surety bond must identify each bidder whose good faith deposit is guaranteed
by such financial surety bond. If the bonds are awarded to a bidder utilizing a financial surety bond,
then that purchaser is required to submit to the City a certified or cashier's check (or wire transfer
such amount as instructed by the City) not later than 3:30 p.m. (Greencastle time) on the next
business day following the award. In the event the successful bidder shall fail or refuse to accept
delivery of the Bonds and pay for the same as soon as the Bonds are ready for delivery, or at the time
fixed in the notice of sale, then the check and the proceeds thereof shall become the property of the
City and shall be considered as its liquidated damages on account of such default.
All bids for the Bonds shall be sealed and shall be presented to the Clerk- Treasurer at her
office, and the Clerk- Treasurer shall continue to receive all bids offered until the hour on the day
® fixed in the notice, at which time and place she shall open and consider the bids. Bidders for the
881981.1 - 17-
Bonds shall be required to name the rate or rates of interest which the bonds are to bear, not
exceeding six and one -half percent (6.5 %) or such lower maximum rate set forth in the notice, and
such interest rate or rates shall be in multiples of one - eighth (1/8) or one - twentieth (1/20) of one
percent (1 %). The rate bid on any maturity shall be equal to or greater than the rate bid on the
immediately preceding maturity. The Clerk- Treasurer shall award the Bonds to the highest
responsible and qualified bidder. The highest bidder shall be the one who offers the lowest net
interest cost to the City, computing the total interest on all of the Bonds to their maturities and
adding thereto the discount bid, if any, and deducting therefrom the premium bid, if any. The Clerk-
Treasurer shall have full right to reject any and all bids. If no acceptable bid is received at the time
fixed in the notice for sale of the Bonds, the Clerk- Treasurer shall be authorized to continue to
receive bids from day to day thereafter for a period not to exceed thirty (30) days, without
® readvertising, but during such continuation, no bid shall be accepted which offers an interest cost
which is equal to or higher than the best bid received at the time fixed for such sale in the notice.
No conditional bid or bid for less than all of the Bonds will be considered.
Prior to the delivery of the Bonds, the Clerk- Treasurer shall obtain a legal opinion as to the
validity of the Bonds from Ice Miller, bond counsel, of Indianapolis, Indiana, and shall furnish this
opinion to the purchaser of the Bonds. The cost of this opinion, the services of the City Attorney
and the services of the City's financial advisor shall be considered as part of the costs incidental to
these proceedings and may be paid out of proceeds of the Bonds.
Section 4. Preparation of Bonds The Clerk- Treasurer is hereby authorized and directed to
have the Bonds prepared, and the Mayor and the Clerk- Treasurer are hereby authorized and directed
to execute the Bonds in the form and manner provided in this ordinance.
881981.1 - is -
" S e c t i o n 5 . D e f e a s a n c e T h e B o n d s o r a n y p o r t i o n t h e r e o f s h a l l h a v e b e c o m e d u e a n d p a y a b l e
i n a c c o r d a n c e w i t h t h e i r t e r m s o r s h a l l h a v e b e e n d u l y c a l l e d f o r r e d e m p t i o n o r i r r e v o c a b l e
i n s t r u c t i o n s t o c a l l t h e B o n d s o r a p o r t i o n t h e r e o f f o r r e d e m p t i o n s h a l l h a v e b e e n g i v e n , a n d t h e
w h o l e a m o u n t o f t h e p r i n c i p a l a n d t h e i n t e r e s t a n d t h e p r e m i u m , i f a n y , s o d u e a n d p a y a b l e u p o n a l l
o f t h e B o n d s t h e n o u t s t a n d i n g o r a n y p o r t i o n t h e r e o f s h a l l b e p a i d , o r ( i ) s u f f i c i e n t m o n e y s , o r ( i i )
d i r e c t o b l i g a t i o n s o f , o r o b l i g a t i o n s t h e p r i n c i p a l o f a n d i n t e r e s t o n w h i c h a r e u n c o n d i t i o n a l l y
g u a r a n t e e d b y , t h e U n i t e d S t a t e s o f A m e r i c a , t h e p r i n c i p a l o f a n d t h e i n t e r e s t o n w h i c h w h e n d u e w i l l
p r o v i d e s u f f i c i e n t m o n e y s , o r s h a l l b e h e l d i n t r u s t f o r s u c h p u r p o s e , a n d p r o v i s i o n s h a l l a l s o b e
m a d e f o r p a y i n g a l l f e e s a n d e x p e n s e s f o r t h e r e d e m p t i o n , t h e n a n d i n t h a t c a s e t h e B o n d s i s s u e d
h e r e u n d e r o r a n y d e s i g n a t e d p o r t i o n t h e r e o f s h a l l n o l o n g e r b e d e e m e d o u t s t a n d i n g o r e n t i t l e d t o t h e
p l e d g e c r e a t e d u n d e r t h i s o r d i n a n c e , i n c l u d i n g t h e t a x e s t o b e l e v i e d u p o n a l l t a x a b l e p r o p e r t y i n t h e
� C i t y .
S e c t i o n 6 . D e p o s i t a n d A p p l i c a t i o n o f B o n d P r o c e e d s : S u r p l u s B o n d P r o c e e d s A n y a c c r u e d
i n t e r e s t r e c e i v e d f o r t h e B o n d s h a l l b e d e p o s i t e d i n t o t h e b o n d f u n d a n d u s e d t o p a y i n t e r e s t o n t h e
B o n d s o n J u l y 1 , 2 0 0 2 . T h e C l e r k - T r e a s u r e r i s h e r e b y a u t h o r i z e d a n d d i r e c t e d t o d e p o s i t t h e
r e m a i n i n g p r o c e e d s o f t h e B o n d s i n a s e p a r a t e f u n d ( " B o n d P r o c e e d s F u n d " ) t o p a y f o r : ( 1 ) t h e c o s t
o f t h e P r o j e c t a n d a l l o t h e r c o s t s a n d e x p e n s e s i n c u r r e d i n c o n n e c t i o n w i t h t h e P r o j e c t ; a n d ( 2 ) c o s t s
o f i s s u a n c e o f t h e B o n d s . E x c e p t a s d e s c r i b e d i n t h i s S e c t i o n 6 , t h e B o n d P r o c e e d s F u n d m a y n o t
b e u s e d f o r a n y o t h e r p u r p o s e . T h e B o n d P r o c e e d s F u n d s h a l l , i n a c c o r d a n c e w i t h I C 5 - 1 3 , b e
d e p o s i t e d , a t i n t e r e s t , w i t h t h e d e p o s i t o r y o r d e p o s i t o r i e s o f o t h e r p u b l i c f u n d s o f t h e C i t y , a n d a l l
i n t e r e s t c o l l e c t e d o n i t b e l o n g s t o t h e f u n d . A n y s u r p l u s r e m a i n i n g f r o m t h e p r o c e e d s o f t h e B o n d s
a f t e r a l l c o s t s a n d e x p e n s e s a r e f u l l y p a i d s h a l l , i n a c c o r d a n c e w i t h I C 5 - 1 - 1 3 , e i t h e r b e p a i d i n t o a n d
8 8 1 9 8 1 . 1 - 1 9 -
become a part of the City's bond fund for the Bonds; or, at the direction of the Common Council be
used by the City for the same purpose or type of project for which the Bonds were originally issued.
Section 7. Covenant to Lever The full faith and credit of the City, together with all
of its taxable property, both real and personal, are hereby irrevocably pledged to the punctual
payment of the principal of and the interest on the Bonds according to their terms. In order to
provide for the payment of the principal of and interest on the Bonds, there shall be levied in each
year upon all taxable property in the City, real and personal, and collected, a tax in an amount and
in such manner sufficient to meet and pay the principal of and interest on the Bonds as they become
due and the proceeds of this tax are hereby pledged solely to the payment of the Bonds. Such tax
proceeds shall be deposited into a separate bond fund and used to pay the principal of and interest
on the Bonds, when due, together with any fiscal agency charges.
® Section 8. Tax Covenants and Representations In order to preserve the exclusion of interest
on the Bonds from gross income for federal income tax purposes under Section 103 of the Internal
Revenue Code of 1986, as existing on the date of issuance of the Bonds and the Regulations in effect
and applicable to the Bonds on the date of issuance of the Bonds (collectively, "Code ") and as an
inducement to purchasers of the Bonds, the Common Council represents, covenants and agrees that:
(a) The Project will be available for use by members of the general public. Use by a
member of the general public means use by natural persons not engaged in a trade or business. No
person or entity other than the City or another state or local governmental unit will use more than
10% of the proceeds of the Bonds or property financed by the Bond proceeds other than as a member
of the general public. No person or entity other than the City or another state or local governmental
unit will own property financed by Bond proceeds or will have any actual or beneficial use of such
881981.1 -20-
property pursuant to a lease, a management or incentive payment contract, arrangements such as
take -or -pay or output contracts or any other type of arrangement that conveys other special legal
entitlements and differentiates that person's or entity's use of such property from use by the general
public, unless such uses in the aggregate relate to no more than 10% of the proceeds of the Bonds.
If the City enters into a management contract for the Project, the terms of the contract will comply
with IRS Revenue Procedure 97 -13, as it may be amended, supplemented or superseded from time
to time, so that the contract will not give rise to private business use under the Code and the
Regulations, unless such use in aggregate relates to no more than 10% of the proceeds of the Bonds.
(b) No more than 10% of the principal of or interest on the Bonds is (under the terms of
the Bonds, this ordinance or any underlying arrangement), directly or indirectly, secured by an
interest in property used or to be used for any private business use or payments in respect of any
® private business use or payments in respect of such property or to be derived from payments
(whether or not to the City) in respect of such property or borrowed money used or to be used for a
private business use.
(c) No more than 5% of the Bond proceeds will be loaned to any person or entity other
than another state or local governmental unit. No more than 5% of the Bond proceeds will be
transferred, directly or indirectly, or deemed transferred to a nongovemmental person in any manner
that would in substance constitute a loan of the Bond proceeds.
(d) The City reasonably expects, as of the date hereof, that the Bonds will not meet either
the private business use test described in paragraph (a) and (b) above or the private loan test
described in paragraph (c) above during the entire term of the Bonds.
881981.1 -21 -
(e) No more than 5% of the proceeds of the Bonds will be attributable to private business
use as described in (a) and private security or payments described in (b) attributable to unrelated or
disproportionate private business use. For this purpose, the private business use test is applied by
taking into account only use that is not related to any governmental use of proceeds of the issue
(Unrelated Use) and use that is related but disproportionate to any governmental use of those
proceeds (Disproportionate Use).
(f) The City will not take any action nor fail to take any action with respect to the Bonds
that would result in the loss of the exclusion from gross income for federal tax purposes on the
Bonds pursuant to Section 103 of the Code, nor will the City act in any other manner which would
adversely affect such exclusion. The City covenants and agrees not to enter into any contracts or
arrangements which would cause the Bonds to be treated as private activity bonds under Section 141
of the Code.
(g) It shall be not an event of default under this ordinance if the interest on any Bond is
not excludable from gross income for federal tax purposes or otherwise pursuant to any provision
of the Code which is not currently in effect and in existence on the date of issuance of the Bonds.
(h) These covenants are based solely on current law in effect and in existence on the date
of delivery of such Bonds.
(i) The City represents that it will rebate any arbitrage profits to the United States of
America in accordance with the Code.
0) The City represents that:
(1) The Bonds are not private activity bonds as defined in Section 141 of the
a
881981.1 -22-
® (2) The City hereby designates the Bonds as qualified tax - exempt obligations for
purposes of Section 265(b) of the Code;
(3) The reasonably anticipated amount of qualified tax - exempt obligations
(including qualified 501(c)(3) obligations and tax - exempt leases but excluding other private
activity bonds) which will be issued by the City, and all entities subordinate to the City
during 2001 does not exceed $10,000,000; and
(4) The City will not designate more than $10,000,000 of qualified tax- exempt
obligations during 2001.
Therefore, the Bonds qualify for the exception in the Code from the disallowance of 100%
of the deduction by financial institutions of interest expense allocable to newly acquired tax - exempt
obligations.
® (k) Notwithstanding any other provisions of this ordinance, the covenants and
authorizations contained in this ordinance ( "Tax Sections ") which are designed to preserve the
exclusion of interest on the Bonds from gross income under federal law ( "Tax Exemption ") need not
be complied with if the City receives an opinion of nationally recognized bond counsel that
compliance with any Tax Section is unnecessary to preserve the Tax Exemption.
Section 10. Debt Limit Not Exceeded The City represents and covenants that the Bonds
herein authorized, when combined with other outstanding indebtedness of the City, will not exceed
any applicable constitutional or statutory limitation on the City's indebtedness.
Section 11. Approval by State Board of Tax Commissioners The Bonds shall not be issued
and delivered until orders have been obtained from the State Board of Tax Commissioners pursuant
to IC 6 -1.1- 18.5 -8 and, if necessary, IC 6- 1.1 -20 -7.
881981.1 -23 -
Section 12. Severability If any section, paragraph or provision of this ordinance shall be
held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section,
paragraph or provision shall not affect any of the remaining provisions of this ordinance.
Section 13. Repeal of Conflicting Provisions All ordinances, or parts thereof, in conflict
with the provisions of this ordinance, are, to the extent of such conflict, hereby repealed or amended.
Section 14. Amendments to Ordinance This ordinance may, from time to time hereafter,
be amended without the consent of the mvners of the Bonds, if in the sole discretion of the Common
Council, such amendment shall not adversely affect the rights of the owners of any of the Bonds.
Section 15. Effective Date This ordinance shall be in full force and effect immediately upon
its passage and signing by the Mayor.
881981.1 -24-
PASSED and adopted by the Common Council of the City of Greencastle, Indiana, this
day of November, 2001.
E
ATTEST:
f Gc
Clerk- Treasurer
COMMON COUNCIL OF THE CITY OF
GREENCASTLE, INDIANA
a _Fe4m� Lam` ^,
Presiding Officer
Presented by me to the Mayor of the City of Greencastle this day of November, 2001,
at _&:jy2.m.
Clerk- Treasurer
Signed and approved by me, the Mayor of the City of Greencastle, on this d elay of
November, 2001, at
881981.1
Mayor
-25-