HomeMy Public PortalAbout2001-04 Vacating an AlleyORDINANCE 2001 -
• AN ORDINANCE APPROVING THE VACATION OF AN ALLEY
LOCATED BETWEEN MAPLE AND ILLINOIS STREETS
LOCATED IN THE CITY OF GREENCASTLE, INDIANA
WHEREAS, June 24,1985, the Greencastle Plan Commission took action by recommending
the vacation of a certain alley in Greencastle, Indiana, running in an East -West direction between
Maple and Illinois Streets; and
WHEREAS, the recommendation for vacation of the property by the Plan Commission was
approved by the City Council in July 1985; and
WHEREAS, the vacation was not recorded in Ordinance form with the Putnam County
Recorder's Office; and
WHEREAS, the abutting land owners to the alley to be vacated are as follows:
• Barry Baynard
600 Apple St.
Greencastle, IN
Wayne & Vivian Runmells
611 Howard St.
Greencastle, IN
Mitchell & Marcie Barnett
606 S. Maple Ave.
Greencastle, IN
Old National Bank
c/o Woodalls
609 Illinois St.
Greencastle, IN
Russell Cofer
Jim Spencer
613 Howard St.
610 Apple St.
Greencastle, IN
Greencastle, IN
Leslie Dean
Steve Modlin
612 Apple St.
603 Howard St.
Greencastle, IN
Greencastle, IN
Lucy Sells Karen & Trisha VanHom
609 Illinois St. 608 Maple Ave.
Greencastle, IN Greencastle, IN
WHEREAS, all ofthe alley to be vacated lies wholly within thejurisdiction of the Common
Council of the City of Greencastle, Putnam County, Indiana; and
WHEREAS, the adjoining property owners have consented or have been notified pursuant
e to statute as to the vacation of the public ways; and
S valid and sufficient for all purposes the same as if such officer had remained in office until such
delivery.
The BANS and Bonds shall have all of the qualities and incidents of negotiable instruments
under the laws of the State of Indiana, subj ect to the provisions for registration herein.
The Bonds shall also be authenticated by the manual signature of the Registrar, and no Bond
shall be valid or become obligatory for any purpose until the certificate of authentication thereon has
been so executed.
Sec. 6. Form of Bonds The form and tenor of the Bonds shall be substantially as follows,
all blanks to be filled in properly prior to delivery:
UNITED STATES OF AMERICA
• STATE OF INDIANA COUNTY OF PUTNAM
Interest Maturity Original Authentication
Rate Date Date Date CUSIP
CITY OF GREENCASTLE
SEWAGE WORKS REVENUE AND REFUNDING REVENUE
BOND OF 2001
REGISTERED OWNER:
PRINCIPAL SUM:
The City of Greencastle, in Putnam County, State of Indiana, for value received, hereby
promises to pay to the Registered Owner named above or registered assigns, solely out of the special
revenue fund hereinafter referred to, 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 at the Interest Rate per annum stated above from the interest
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837635.1
payment date to which interest has been paid next preceding the Authentication Date of this bond
unless this bond is authenticated after the fifteenth day of the month preceding an interest payment
date and on or before such interest payment date in which case it shall bear interest from such
interest payment date or unless this bond is authenticated on or before December 15, 2001, in which
case it shall bear interest from the Original Date, until the principal is paid, which interest is payable
semiannually on the first days of January and July of each year, beginning on January 1, 2002.
The principal of this bond is payable at the principal office of
(the "Registrar" or "Paying Agent "), in the City of_, Indiana. All payments
of interest on this bond shall be paid by check, mailed one business day prior to the interest payment
date to the registered owner hereof as of the fifteenth day of the month preceding such interest
payment date at 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 the 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.
® THE CITY SHALL NOT BE OBLIGATED TO PAY THIS BOND OR THE INTEREST
HEREON EXCEPT FROM THE HEREINAFTER DESCRIBED SPECIAL FUND, AND
NEITHER THIS BOND NOR THE ISSUE OF WHICH IT IS A PART SHALL IN ANY RESPECT
CONSTITUTE A CORPORATE INDEBTEDNESS OF THE CITY WITHIN THE PROVISIONS
AND LIMITATIONS OF THE CONSTITUTION OF THE STATE OF INDIANA.
The City has designated the bonds as qualified tax - exempt obligations to qualify the bonds
for the s 10,000,000 exception from the provisions of Section 265(b)(3) of the Internal Revenue Code
of 1986 relating io the disallowance of the deduction for interest expense allocable to tax- exempt
obligations.
The terms and provisions of this bond are continued on the reverse side hereof and such
terms and provisions shall for all purposes have the same effect as though fully set forth at this place.
It is hereby certified and recited 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.
This bond shall not be valid or become obligatory for any purpose until the certificate of
authentication hereon shall have been executed by an authorized representative of the Registrar.
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837635.1
" I N W I T N E S S W H E R E O F , t h e C i t y o f G r e e n c a s t l e , i n P u t n a m C o u n t y , I n d i a n a , h a s c a u s e d
t h i s b o n d t o b e e x e c u t e d i n i t s c o r p o r a t e n a m e 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 i t s M a y o r , i t s
c o r p o r a t e s e a l t o b e h e r e u n t o a f f i x e d , i m p r i n t e d o r i m p r e s s e d b y a n y m e a n s a n d a t t e s t e d m a n u a l l y
o r b y f a c s i m i l e b y i t s C l e r k - T r e a s u r e r .
[ S E A L ]
A t t e s t :
C l e r k - T r e a s u r e r
C I T Y O F G R E E N C A S T L E , I N D I A N A
M a y o r
R E G I S T R A R ' S 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 i s b o n d i s o n e o f t h e b o n d s d e s c r i b e d i n t h e w i t h i n - m e n t i o n e d O r d i n a n c e .
a s R e g i s t r a r
B y
A u t h o r i z e d R e p r e s e n t a t i v e
( T o b e p r i n t e d o n R e v e r s e S i d e )
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 , o f l i k e d a t e , t e n o r
a n d e f f e c t , e x c e p t a s t o r a t e s o f i n t e r e s t a n d d a t e s o f m a t u r i t y ; 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 ; i s s u e d f o r t h e p u r p o s e o f a d v a n c e r e f u n d i n g c e r t a i n R e f u n d e d B o n d s ( a s d e f i n e d i n t h e
h e r e i n a f t e r d e f i n e d O r d i n a n c e ) ; p r o v i d 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 a d d i t i o n s , e x t e n s i o n s
a n d i m p r o v e m e n t s t o t h e C i t y ' s s e w a g e w o r k s ( t h e " P r o j e c t " ) , [ t o r e f u n d i n t e r i m n o t e s i s s u e d i n
a n t i c i p a t i o n o f t h e b o n d s ] a n d t o p a y i s s u a n c e e x p e n s e s [ i n c l u d i n g a p r e m i u m f o r m u n i c i p a l b o n d
i n s u r a n c e ] . T h i s b o n d i s i s s u e d p u r s u a n t t o a n 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 s a i d
" C i t y o n t h e _ d a y o f 2 0 0 1 , e n t i t l e d " A n O r d i n a n c e o f t h e C i t y o f G r e e n c a s t l e
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® authorizing the advance refunding by the City of its Sewage Works Revenue Bonds of 1994;
authorizing the issuance of sewage works revenue bonds for the purpose of providing funds to pay
the cost of certain additions, extensions and improvements to the municipal sewage works of said
City; providing for the safeguarding of the interests of the owners of said bonds; other matters
connected therewith, including the issuance of notes in anticipation of bonds, and repealing
ordinances inconsistent herewith" (the "Ordinance "), and in accordance with the provisions of
Indiana law, including without limitation Indiana Code 5 -1 -5 and Indiana Code 36 -9 -23 each as in
effect on the date of delivery of the bonds of this issue (the "Act "), the proceeds of which bonds are
to be applied to said advance refunding of the Refunded Bonds and the costs of the Project, [the
payment of notes issued in anticipation of the bonds,] and expenses incurred in connection therewith
[, including a premium for municipal bond insurance].
The City has previously issued its 2000 Bonds (as defined in the Ordinance) to finance the
Project and the City and the State of Indiana have entered into a Financial Assistance Agreement
( "FAA ") pertaining to the Project and the 2000 Bonds.
Pursuant to the provisions of the Act and the Ordinance, the principal of and interest on this
bond and all other bonds of said issue, and any bonds hereafter issued on a parity therewith are
payable solely from the Sewage Works Sinking Fund continued by the Ordinance (the "Sinking
Fund ") to be provided from the Net Revenues (defined as gross revenues of the sewage works of the
City after deduction only for the payment of the expenses for Operation and Maintenance (as defined
® in the FAA)) of the sewage works of the City, including all such Net Revenues from the,existing
works, the Project and all additions and improvements thereto and replacements thereof subsequently
constructed or acquired, on a parity with the 2000 Bonds.
Pursuant to the Ordinance and the Escrow Agreement defined therein, the City of Greencastle
has set aside securities (purchased from proceeds of the bonds of this issue and funds on hand of the
City) and certain cash in a Trust Account to provide payment of principal of and interest and
redemption premium on the Refunded Bonds by the purchase of obligations of the United States of
America.
The City of Greencastle irrevocably pledges the entire Net Revenues of the sewage works
to the prompt payment of the principal of and interest on the bonds authorized by the Ordinance, of
which this is one, and any bonds ranking on a parity therewith, including the 2000 Bonds, to the
extent necessary for that purpose, and covenants that it will cause to be fixed, maintained and
collected such rates and charges for services rendered by the utility as are sufficient in each year for
the payment of the proper and reasonable expenses of Operation and Maintenance of the sewage
works and for the payment of the sums required to be paid into the Sinking Fund under the
provisions of the Act and the Ordinance. If the City or the proper officers thereof shall fail or refuse
to so fix, maintain and collect such rates or charges, or if there be a default in the payment of the
interest on or principal of this bond, the owner of this bond shall have all of the rights and remedies
provided for in the Act, including the right to have a receiver appointed to administer the works and
® to charge and collect rates sufficient to provide for the payment of this bond and the interest hereon.
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837635.1
e The City of Greencastle further covenants that it will set aside and pay into its Sinking Fund
monthly, as available, or more often if necessary, a sufficient amount of the Net Revenues of the
works for payment of (a) the interest on all bonds which by their terms are payable from the revenues
of the sewage works, as such interest shall fall due, (b) the necessary fiscal agency charges for paying
bonds and interest, (c) the principal of all bonds which by their terms are payable from the revenues
of the sewage works, as such principal shall fall due, and (d) an additional amount as a margin of
safety to [create and] maintain the debt service reserve required by the Ordinance. Such required
payments shall constitute a first charge upon all the Net Revenues of the sewage works, on a parity
with the 2000 Bonds.
The bonds of this issue maturing on and after January 1, , are redeemable at the option
of the City on 1, , or any date thereafter, on thirty (30) days' notice, in whole or in
part, in the order of maturity as determined by the City and by lot within a maturity, at face value,
with[out] [any premium] [the following premiums:]
if redeemed on _ 1, _ or thereafter
on or before
if redeemed on _ 1, _ or thereafter
on or before
0% if redeemed on _ 1, or thereafter
prior to maturity;
• plus accrued interest to the date fixed for redemption.
[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 the January 1 in the years and in the amounts set forth below:
Year Amount
* Final Maturity]
Each Five Thousand Dollars ($5,000) principal amount shall be considered a separate bond
for purposes of optional [and mandatory] redemption. If less than an entire maturity is called for
redemption, the bonds to be redeemed 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.]
e
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837635.1
0 Notice of such redemption shall be mailed to the address of the registered owner as shown
on the registration records of the City, as of the date which is forty -five (45) days prior to such
redemption date, not less than thirty (30) days prior to the date fixed for redemption unless the notice
is waived by the registered owner of this bond. The 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 on the date so named.
If this bond shall not be presented for payment or redemption on the date fixed therefor, the
City may deposit in trust with its depository bank an amount sufficient to pay such bond or the
redemption price, as the case may be, and thereafter the registered owner shall look only to the funds
so deposited in trust with said bank for payment and the City shall have no further obligation or
liability in respect thereto.
This bond is 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 hereof in
person, or by his attorney duly authorized in writing, upon surrender of this bond together with a
written instrument of transfer or exchange satisfactory to the Registrar duly executed by the
registered owner, or his attorney duly authorized in writing, and thereupon a new fully registered
bond or bonds in an authorized aggregate principal amount and of the same maturity, shall be
executed and delivered in the name of the transferee or transferees or to the registered owner, as the
®
case may be, in exchange therefor. This bond may be transferred without cost to the registered
owner except for any tax or governmental charge required to be paid with respect to the transfer.
The City, the Registrar, the Paying Agent and any other registrar or paying agent for this bond may
treat and consider the person in whose name this bond is registered as the absolute owner hereof for
all purposes including for the purpose of receiving payment of, or on account of, the principal hereof
and interest due hereon.
[The bonds shall be initially issued in a Book Entry System (as defined in the Ordinance).
The provisions of this bond and of the Ordinance are subject in all respects to the provisions of the
Letter of Representations between the City and The Depository Trust Company, or any substitute
agreement, effecting such Book Entry System.]
This bond is subject to defeasance prior to redemption or payment as provided in the
Ordinance referred to herein. THE OWNER OF THIS BOND, BY THE ACCEPTANCE HEREOF,
HEREBY AGREES TO ALL THE TERMS AND PROVISIONS CONTAINED 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 determines, in its sole discretion, that the
amendment shall not adversely affect the rights of any of the owners of the bonds.
The bonds maturing in any one year are issuable only in fully registered form in the
® denomination of $5,000 or any integral multiple thereof.
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837635.1
® [STATEMENT OF INSURANCE]
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto
this bond and all rights thereunder, and hereby irrevocably
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.
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.
11
n
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837635.]
O Sec. 7. Authorization for Preparation and Sale of the BANS and the Bonds: Municipal Bond
Insurance (a) The Clerk - Treasurer is hereby authorized and directed to have the BANs and the
Bonds prepared, and the Mayor and Clerk- Treasurer are hereby authorized and directed to execute
and attest the BANs and the Bonds in the form and manner provided herein. If the Bonds issued to
refund the Refunded Bonds are sold on a negotiated basis, the Clerk- Treasurer is hereby authorized
and directed to deliver said Bonds to a purchaser to be selected by either the Mayor, the Clerk-
Treasurer, orboth, with the advice of the City's financial advisor ( "Underwriter ") in accordance with
a Purchase Contract ( "Purchase Contract ") between the City and the Underwriter. The Mayor and
the Clerk- Treasurer are authorized to execute the Purchase Contract and deliver said Bonds to the
Underwriter so long as their terms are consistent with this ordinance. Such Purchase Contract shall
establish a final principal amount, purchase price, interest rates, maturity schedule, optional
® redemption features, and term bond mandatory redemptions, if any.
(b) The Clerk- Treasurer is hereby authorized to appoint a financial institution to serve
as escrow trustee ( "Escrow Trustee ") for the Bonds in accordance with the terms of the Escrow
Agreement between the City and the Escrow Trustee ( "Escrow Agreement "). The substantially final
form of Escrow Agreement attached hereto is hereby approved by the Common Council, and the
Mayor and the Clerk - Treasurer are hereby authorized and directed to complete, execute and attest
the same on behalf of the City so long as its provisions are consistent with this ordinance and the
Purchase Contract.
(c) If the Bonds issued to refund the Refunded Bonds are sold at a competitive sale with
the Bonds issued to fund additional costs of the Project, the Clerk- Treasurer is hereby authorized and
• directed to deliver the BANS and the Bonds to the respective purchasers thereof. At the time of
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837635.1
® delivery of the BANS and the Bonds, the Clerk - Treasurer shall collect the full amount which the
respective purchasers have agreed to pay therefor, which amount shall not be less than 99% of the
face value of said BANS and not less than 99% of the face value of said Bonds, as the case may be,
plus accrued interest to the date of delivery. Payment for the BANS may be made in installments.
The Bonds, when fully paid for and delivered to the purchaser, shall be the binding special revenue
obligations of the City payable out of the Net Revenues of the sewage works, on a parity with the
2000 Bonds. The proper officers of the City are hereby directed to sell the Bonds, to draw all proper
and necessary warrants, and to do whatever acts and things which may be necessary to carry out the
provisions of this ordinance.
(d) The execution, by either the Mayor, the Clerk- Treasurer, the Underwriter, or the City's
financial advisor, of a subscription for United States Treasury Obligations — State an Local
® Government Series for investments of proceeds of the Bonds to be held under the Escrow Agreement
in a manner consistent with this ordinance is hereby approved.
(e) Distribution of an Official Statement (preliminary and final) prepared by Crowe
Chizek and Company, LLP, on behalf of the City, is hereby approved and the Mayor or the Clerk -
Treasurer are authorized and directed to execute the Official Statement on behalf of the City in a
form consistent with this ordinance. The Mayor or the Clerk- Treasurer are hereby authorized to
designate the preliminary Official Statement as "nearly final" for purposes of Rule 15c2 -12
promulgated by the Securities and Exchange Commission.
(f) In the event the financial advisor to the City certifies to the City that it would be
economically advantageous for the City to acquire a municipal bond insurance policy for the Bonds,
® the City hereby authorizes and directs the Mayor and Clerk- Treasurer to obtain such an insurance
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837635.1
" p o l i c y . T h e a c q u i s i t i o n o f a m u n i c i p a l b o n d i n s u r a n c e p o l i c y i s h e r e b y d e e m e d e c o n o m i c a l l y
a d v a n t a g e o u s i n t h e e v e n t t h e d i f f e r e n c e b e t w e e n t h e p r e s e n t v a l u e c o s t o f ( a ) t h e t o t a l d e b t s e r v i c e
o n t h e B o n d s i f i s s u e d w i t h o u t m u n i c i p a l b o n d i n s u r a n c e a n d ( b ) t h e t o t a l d e b t s e r v i c e o n t h e B o n d s
i f i s s u e d w i t h m u n i c i p a l b o n d i n s u r a n c e , i s g r e a t e r t h a n t h e c o s t o f t h e p r e m i u m o n t h e m u n i c i p a l
b o n d i n s u r a n c e p o l i c y .
S e c . 8 . R e f u n d i n g o f t h e R e f u n d e d B o n d s C o n c u r r e n t l y w i t h t h e d e l i v e r y o f 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 s h a l l a c q u i r e , w i t h t h e p r o c e e d s o f a p o r t i o n o f t h e B o n d s a n d c a s h o n h a n d , 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 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 ( " G o v e n e m e n t O b l i g a t i o n s " ) t o b e u s e d , t o g e t h e r w i t h c e r t a i n c a s h 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 n d c a s h o n h a n d a s s e t f o r t h i n t h e E s c r o w A g r e e m e n t , t o r e f u n d a n d
l e g a l l y d e f e a s e t h e R e f u n d e d B o n d s a l l a s s e t f o r t h i n t h e E s c r o w A g r e e m e n t . I n o r d e r t o r e f u n d t h e
" R e f u n d e d B o n d s , t h e C l e r k - T r e a s u r e r s h a l l d e p o s i t G o v e r n m e n t O b l i g a t i o n s a n d c e r t a i n c a s h w i t h
t h e E s c r o w T r u s t e e u n d e r t h e E s c r o w A g r e e m e n t i n a n a m o u n t s u f f i c i e n t t o p r o v i d e m o n e y f o r
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 a n d r e d e m p t i o n p r e m i u m o n t h e R e f u n d e d B o n d s u n t i l
J a n u a r y 1 , 2 0 0 5 , t h e e a r l i e s t d a t e u p o n w h i c h t h e R e f u n d e d B o n d s m a y b e c a l l e d f o r r e d e m p t i o n .
T h e C l e r k - T r e a s u r e r s h a l l o b t a i n a v e r i f i c a t i o n o f a n a c c o u n t a n t a s t o t h e s u f f i c i e n c y o f t h e
f u n d s d e p o s i t e d i n t h e T r u s t A c c o u n t u n d e r t h e E s c r o w A g r e e m e n t t o a c c o m p l i s h s a i d r e f u n d i n g a n d
l e g a l d e f e a s a n c e o f t h e R e f u n d e d B o n d s .
S e c . 9 . B o n d S a l e N o t i c e I f t h e B o n d s w i l l b e s o l d a t a c o m p e t i t i v e b o n d s a l e , p r i o r t o t h e
s a l e o f s a i d B o n d s , t h e C l e r k - T r e a s u r e r s h a l l c a u s e t o b e p u b l i s h e d e i t h e r ( i ) a n o t i c e o f b o n d s a l e
i n t h e B a n n e r - G r a p h i c t h e o n l y n e w s p a p e r p u b l i s h e d i n 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 w o t i m e s ,
a t l e a s t o n e w e e k a p a r t , t h e f i r s t p u b l i c a t i o n m a d e a t l e a s t f i f t e e n ( 1 5 ) d a y s b e f o r e t h e d a t e o f t h e s a l e
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S and the second publication being made at least three (3) days before the date of the sale, or (ii) a
notice of intent to sell in the Banner- Graphic and the Court & Commercial Record all in accordance
with IC 5 -1 -11 and IC 5 -3 -1. A notice of sale may also be published one time in the Court &
Commercial Record and a summary notice may also be published in The Bond Buyer in New York,
New York. The notice shall state the character and amount of the Bonds, the maximum rate of
interest thereon, the terms and conditions upon which bids will be received and the sale made, and
such other information as the Clerk- Treasurer and the attorneys employed by the City shall deem
advisable and any summary notice may contain any information deemed so advisable. The notice
may provide, among other things, that each bid shall be accompanied by a certified or cashier's check
or a financial surety bond in an amount equal to I% of the principal amount of the Bonds described
in the notice 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 City 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 said
check and the proceeds thereof shall be the property of the City and shall be considered as its
liquidated damages on account of such default. Bidders for said Bonds will be required to name the
rate or rates of interest which the Bonds are to bear, not exceeding the maximum rate hereinbefore
•
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® fixed, 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 a maturity shall be equal to or greater than the rate bid on the
immediately preceding maturity. No conditional bid or bid for less than 99% of the face amount of
the Bonds will be considered. The City reserves the right to adjust the maturity schedule based upon
the rates bid by the successful bidder following the sale in order to accomplish as level annual debt
service as practicable pursuant to Section 2(c). The opinion of Ice Miller, bond counsel of
Indianapolis, Indiana, approving the legality of said Bonds, will be furnished to the purchaser at the
expense of the City.
The Bonds shall be awarded by the Clerk- Treasurer to the best bidder who has submitted his
bid in accordance with the terms of this ordinance, IC 5 -1 -11 and the notice of sale. The best bidder
will be the one who offers the lowest net interest cost to the City, to be determined by computing the
total interest on all of the Bonds to their maturities and adding thereto the discount bid, if any, and
deducting the premium bid, if any. The right to reject any and all bids shall be reserved. If an
acceptable bid is not received on the date of sale, the sale may be continued from day to day
thereafter without further advertisement for a period of thirty (30) days, during which time no bid
which provides a higher net interest cost to the City than the best bid received at the time of the
advertised sale will be considered.
Sec. 10. Use of Proceeds for Project and Costs of Issuance Any accrued interest and any
premium received at the time of the delivery of the Bonds shall be deposited in the Sewage Works
Sinking Fund hereinafter defined. The remaining proceeds from the sale of the Bonds, after
allocating the amount needed to accomplish the refunding of the Refunded Bonds in accordance with
Section 8 and to the extent not used to refund BANs, and BAN proceeds shall be deposited in a bank
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or banks which are legally designated depositories for the funds of the City, in a special account or
accounts to be designated as "City of Greencastle, Sewage Works Construction Account' (the
"Construction Account "). All funds deposited to the credit of the Sewage Works Sinking Fund or
the Construction Account shall be deposited, held, secured or invested in accordance with the laws
of the State of Indiana relating to the depositing, holding, securing or investing of public funds,
including particularly IC 5 -13, as amended and supplemented. The funds in the Construction
Account shall be expended only for the purpose of paying the cost of the Project, refunding the
BANs, if issued, or as otherwise required by the Act and for the expenses of issuance of the Bonds.
The cost of obtaining the legal services of Ice Miller, shall be considered as a part of the cost of the
refunding and the Project on account of which the BANs and Bonds are issued. Any balance or
balances remaining unexpended in such special account or accounts after completion of the Project
® and the funding of the Trust Account, which are not required to meet unpaid obligations incurred in
connection with such Project, shall either (1) be paid into the Sinking Fund and used solely for the
purposes of said Sinking Fund or (2) be used for the same purpose or type of project for which the
Bonds were originally issued, all in accordance with IC 5 -1 -13, as amended and supplemented.
Sec. 11. Financial Records and Accounts: Continuing Disclosure The City shall keep
proper records and books of account, separate from all of its other records and accounts, in which
complete and correct entries shall be made showing all revenues received on account ofthe operation
of the sewage works and all disbursements made therefrom and all transactions relating to the utility.
Copies of all such statements and reports shall be kept on file in the office of the Clerk- Treasurer.
The substantially final form of Continuing Disclosure Undertaking Agreement (the "Agreement")
attached hereto is hereby approved by the Common Council, and the Mayor or the Clerk- Treasurer
El
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® are hereby authorized and directed to complete and execute the same on behalf of the City.
Notwithstanding any other provisions of this ordinance, failure of the City to comply with the
Agreement shall not be considered an event of default under the Bonds or this ordinance.
Sec. 12. P1edQe of Net Revenues The interest on and the principal of the Bonds issued
pursuant to the provisions of this ordinance, and any bonds hereafter issued on a parity therewith,
shall constitute a first charge on all the Net Revenues, on a parity with the 2000 Bonds, and such Net
Revenues are hereby irrevocably pledged to the payment of the interest on and principal of such
Bonds, to the extent necessary for that purpose.
Sec. 13. Revenue Fund All revenues derived from the operation of the sewage works and
from the collection of sewer rates and charges shall be deposited in the Revenue Fund, hereby
continued, and segregated and deposited as set forth in this ordinance. Of these revenues the proper
® and reasonable expenses of operation, repair and maintenance of the works shall be paid, the
principal and interest of all bonds and fiscal agency charges of registrars or paying agents shall be
paid, the reserve shall be funded, and the costs of replacements, extensions, additions and
improvements shall be paid. No moneys derived from the revenues of the sewage works shall be
transferred to the general fund of the City or to be used for any purpose not connected with the
sewage works so long as any bonds payable from the revenues of the sewage works are outstanding.
See. 14. Operation and Maintenance Fund There is hereby continued a fund known as the
Operation and Maintenance Fund (the "Operation and Maintenance Fund "). On the last day of each
calendar month there shall be credited from the Revenue Fund to the Operation and Maintenance
Fund a sufficient amount of the revenues of the sewage works so the balance in said fund shall be
sufficient to pay the expenses of operation, repair and maintenance for the then next succeeding two
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® calendar months. The moneys credited to this Fund shall be used for the payment of the reasonable
and proper operation, repair and maintenance expenses of the sewage works on a day -to -day basis,
but none of the monies in such fund shall be used for depreciation, replacements, improvements,
extensions or additions. Any balance in said Fund in excess of the expected expenses of operation,
replacements and maintenance for the next succeeding month may be transferred to the Sewage
Works Sinking Fund if necessary to prevent a default in the payment of principal of or interest on
the outstanding bonds.
Sec. 15. Sewage Works Sinking Fund (a) There is hereby continued a special fund
designated the Sewage Works Sinking Fund (herein, "Sewage Works Sinking Fund" or "Sinking
Fund "). There shall be deposited from the Revenue Fund into said Sinking Fund for the payment
of the principal of and interest on revenue bonds which by their terms are payable from the Net
® Revenues of the sewage works and the payment of any fiscal agency charges in connection with the
payment of the bonds and interest thereon a sufficient amount of the Net Revenues of said sewage
works to meet the requirements of the Bond and Interest Account and Debt Service Reserve Account
hereby continued in the Sinking Fund. Such payments shall continue until the balance in the Bond
and Interest Account, plus the balance in the Debt Service Reserve Account equal the principal of
and interest on all of the then outstanding bonds of the sewage works to their final maturity.
(b) Bond and Interest Account The Bond and Interest Account is hereby continued. Any
moneys heretofore accumulated to pay principal and interest for the Refunded Bonds shall be
credited to and become a part of the Trust Account under the Escrow Agreement and shall be applied
on the first payments made from the Trust Account. There shall be credited on the last day of each
calendar month from the Revenue Fund to the Bond and Interest Account an amount of the Net
u
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® Revenues equal to at least one - twelfth (1/12) of the principal of and at least one -sixth (1/6) of the
interest on all then outstanding bonds payable on the then next succeeding principal and interest
payment dates until the amount of principal and interest payable on the then next succeeding
principal and interest payment dates shall have been so credited. There shall similarly be credited
to the Account any amount necessary to pay the bank fiscal agency charges for paying principal and
interest on the bonds as the same become payable. The City shall, from the sums deposited in the
Sinking Fund and credited to the Bond and Interest Account, remit promptly to the registered owner
or to the bank fiscal agency sufficient moneys to pay the interest and principal on the due dates
thereof together with the amount of bank fiscal agency charges.
(c) Debt Service Reserve Account The Debt Service Reserve Account ('Reserve Account ")
is hereby continued. On the date of delivery of the Bonds, funds on hand of the sewage works, Bond
proceeds or a combination thereof may be deposited into the Reserve Account. The balance in the
Reserve Account shall equal but not exceed the least of (i) the maximum annual debt service on the
Bonds, the 2000 Bonds and any other parity bonds of the City payable from the Net Revenues of the
sewage works hereafter issued ('Parity Bonds "), (ii) 125% of average annual debt service on the
Bonds, the 2000 Bonds and any Parity Bonds, or (iii) 10% of the proceeds of the Bonds, the 2000
Bonds and any Parity Bond (the "Reserve Requirement "). If no initial deposit is made or the initial
deposit does not cause the Reserve Account to equal the Reserve Requirement, the City shall deposit
a sum of Net Revenues into the Reserve Account on the last day of each calendar month until the
balance therein equals the Reserve Requirement. The monthly deposits shall be equal in amount and
sufficient to accumulate the Reserve Requirement within five (5) years of the date of delivery of the
Bonds.
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o The Reserve Account shall constitute the margin for safety and protection against default in
the payment of principal of and interest on the 2000 B onds, the Bonds and any Panty Bonds, and the
moneys in the Reserve Account shall be used to pay current principal and interest on the 2000
Bonds, the Bonds and any Parity Bonds to the extent that moneys in the Bond and Interest Account
are insufficient for that purpose. Any deficiency in the balance maintained in the Reserve Account
shall be made up from the next available Net Revenues remaining after credits into the Bond and
Interest Account. In the event moneys in the Reserve Account are transferred to the Bond and
Interest Account to pay principal and interest on the Bonds, the 2000 Bonds or any Parity Bonds,
then such depletion of the balance in the Reserve Account shall be made up from the next available
Net Revenues after the credits into the Bond and Interest Account hereinbefore provided for. Any
moneys in the Reserve Account in excess of the Reserve Requirement shall be transferred to the
Sewage Works Improvement Fund and in no event shall excess moneys be held in the Reserve
Account.
Sec. 16. Sewage Works Improvement Fund There is hereby continued a special fund
designated the "Sewage Works Improvement Fund." On the last day of each calendar month, after
meeting requirements for the operation, repair and maintenance, and the Sinking Fund, all available
revenues shall be credited to the Sewage Works Improvement Fund. Said Fund shall be used for
improvements, replacements, additions and extensions of the sewage works. Moneys in the Sewage
Works Improvement Fund shall be transferred to the Sinking Fund if necessary to prevent a default
in the payment of principal and interest on the then outstanding Bonds or 2000 Bonds, or, if
necessary to eliminate any deficiencies in credits to or minimum balance in the Reserve Account of
the Sinking Fund or may be transferred to the Operation and Maintenance Fund to meet unforeseen
11
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837635.1
® contingencies in the operation, repair and maintenance of the sewage works. The City may also elect
to use Net Revenues on deposit in the Sewage Works Improvement Fund to pay interest on the
;.0
Sec. 17. Maintenance of Funds The Sinking Fund shall be deposited in and maintained as
a separate account or accounts from all other accounts of the City. The Operation and Maintenance
Fund and the Improvement Fund may be maintained in a single account, or accounts, but such
account, or accounts, shall likewise be maintained separate and apart from all other accounts of the
City and apart from the Sinking Fund account or accounts. All moneys deposited in the accounts
shall be deposited, held and secured as public funds in accordance with the public depository laws
of the State of Indiana; provided that moneys therein may be invested in obligations in accordance
with the applicable laws, including particularly Indiana Code, Title 5, Article 13, as amended or
supplemented, and in the event of such investment the income therefrom shall become a part of the
funds invested and shall be used only as provided in this ordinance. Nothing in this section or
elsewhere in this ordinance shall be construed to require that separate bank accounts be established
and maintained for the Funds and Accounts continued by this ordinance.
Sec. 18. Defeasance of the Bonds If, when the Bonds or a portion thereof shall have
become due and payable in accordance with their terms or shall have been duly called for redemption
or irrevocable instructions to call the Bonds or a portion thereof for redemption shall have been
given, and the whole amount of the principal and the interest and the premium, if any, so due and
payable upon all of the Bonds or a portion thereof then outstanding shall be paid; or (i) cash (insured
at all times by the Federal Deposit Insurance Corporation or otherwise collateralized with obligations
® described in (ii) below), or (ii) direct obligations of (including obligations issued or held in book
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® entry form on the books of) the Department of the Treasury of the United States of America, the
principal of and the interest on which when due will provide sufficient moneys for such purpose,
shall be held in trust for such purpose, and provision shall also be made for paying all fees and
expenses for the redemption, then and in that case the Bonds or any designated portion thereof issued
hereunder shall no longer be deemed outstanding or entitled to the pledge of the Net Revenues of
the City's sewage works.
Sec. 19. Rate Covenant The City covenants and agrees that it will establish and maintain
just and equitable rates or charges for the use of and the service rendered by the works, to be paid
by the owner of each and every lot, parcel of real estate or building that is connected with and uses
said sewage works by or through any part of the sewage system of the City, or that in any way uses
or is served by such works, at a level adequate to produce and maintain sufficient revenue (including
® user and other charges, fees, income, or revenues available to the City) to provide for the proper
Operation and Maintenance of the works, to comply with and satisfy all covenants contained in this
ordinance and the FAA and for the payment of the sums required to be paid into the Sewage Works
Sinking Fund by the Act and this ordinance. Such rates or charges shall, if necessary, be changed
and readjusted from time to time so that the revenues therefrom shall always be sufficient to meet
the expenses of Operation and Maintenance of the sewage works and the requirements of the Sinking
Fund. The rates and charges so established shall apply to any and all use of such works by and
service rendered to the City and all departments thereof, and shall be paid by the City or the various
departments thereof as the charges accrue.
See. 20. Additional Bond Provisions The City reserves the right to authorize and issue
additional BANS at anytime ranking on a parity with the BAN. The City also reserves the right to
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® authorize and issue additional Parity Bonds payable out of the Net Revenues of its sewage works
ranking on a parity with the Bonds for the purpose of financing the cost of future additions,
extensions and improvements to its sewage works, and to refund obligations subject to the following
conditions:
(a) All required payments into the Sinking Fund shall have been made in accordance with
the provisions of this ordinance, and the interest on and principal of all bonds payable from the Net
Revenues of the sewage works shall have been paid in accordance with their terms. The Reserve
Requirement shall be satisfied for the additional Parity Bonds either at the time of delivery of the
additional Panty Bonds or over a five (5) year or shorter period in a manner that is commensurate
with the requirement established in Section 15(c) of this ordinance.
(b) The Net Revenues of the sewage works in the fiscal year immediately preceding the
® issuance of any such Panty Bonds shall be not less than one hundred twenty -five percent (125 %) of
the maximum annual interest and principal requirements of the then outstanding bonds and the
additional Parity Bonds proposed to be issued; or, prior to the issuance of the Parity Bonds the
sewage rates and charges shall be increased sufficiently so that the increased rates and charges
applied to the previous fiscal year's operations would have produced Net Revenues for said year
equal to not less than one hundred twenty -five percent (125 %) of the maximum annual interest and
principal requirements of all bonds payable from the revenues of the sewage works, including the
additional Parity Bonds proposed to be issued.
For purposes of this subsection, the records of the sewage works shall be analyzed and all
showings prepared by a certified public accountant or nationally recognized firm of professionals
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837635.1
experienced in analyzing financial records of municipal utilities employed by the City for that
purpose.
(c) The interest on the additional parity bonds shall be payable semiannually on the first
days of January and July and the principal on, or mandatory sinking fund redemption dates for, the
additional parity bonds shall be payable annually on January 1.
(d) So long as the 2000 Bonds are outstanding, (i) the City has obtained the consent of
the State, (ii) the City has faithfully performed and is in compliance with each of its obligations,
agreements, and covenants contained in the FAA and this ordinance, and (iii) the City is in
compliance with its National Pollutant Discharge Elimination System permits, except for non-
compliance for which the Parity Bonds are issued including refunding bonds prior to, but par[ of, the
overall plan to eliminate non - compliance.
The authority to issue Parity Bonds to refund obligations shall be included in the 2000
Ordinance and the City has received the consent of the State to add such provision to Section 17 of
the 2000 Ordinance.
Sec. 21. Further Covenants of the City• Maintenance Insurance Pledge Not To Encumber,
Subordinate Indebtedness, and Contract with Bondholders For the purpose of further safeguarding
the interests of the owners of the BANS and the Bonds, it is hereby specifically provided as follows:
(a) All contracts let by the City in connection with the construction of the Project shall
be let after due advertisement as required by the laws of the State of Indiana, and all contractors shall
be required to furnish surety bonds in an amount equal to 100% of the amount of such contracts, to
insure the completion of said contracts in accordance with their terms, and such contractors shall also
be required to carry such employers' liability and public liability insurance as are required under the
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831633.1
® laws of the State of Indiana in the case of public contracts, and shall be governed in all respects by
the laws of the State of Indiana relating to public contracts.
(b) The Project shall be constructed under plans and specifications approved by a
competent engineer designated by the City. All estimates for work done or material furnished shall
first be checked by the engineer and approved by the City.
(c) So long as any of the Bonds or BANS are outstanding, the City shall maintain
insurance on the insurable parts of the system, of a kind and in an amount such as is usually carried
by private corporations engaged in a similar type of business. All insurance shall be placed with
responsible insurance companies qualified to do business under the laws of the State of Indiana. All
insurance proceeds shall be used either in replacing or restoring the property destroyed or damaged
unless, if the Bonds or BANS are sold to the SRF Program, the State of Indiana consents to a
different use.
All insurance proceeds shall be used either in replacing or restoring the property destroyed
or damaged, or shall be deposited in the Sinking Fund.
(d) So long as any of the BANS or Bonds are outstanding, the City shall not mortgage,
pledge or otherwise encumber the property and plant of its sewage works system, or any part thereof,
and shall not sell, lease or otherwise dispose of any part of the same, excepting only such machinery,
equipment or other property as may be replaced, or shall no longer be necessary for use in connection
with said utility, provided that the City shall obtain the prior written Consent of the State of Indiana
if such BANs or Bonds are sold to the SRF Program.
(e) If the BANS or Bonds are sold to the SRF Program, the City shall not borrow any
money, enter into any contract or agreement or incur any other liabilities in connection with the
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® sewage works, other than for normal operating expenditures, without the prior written consent of the
State of Indiana if such undertaking would involve, commit or use the revenues of the sewage works.
( Except as otherwise specifically provided in Section 20 of this ordinance, so long as
any of the Bonds are outstanding, no additional bonds or other obligations pledging any portion of
the revenues of the system shall be authorized, issued or executed by the City, except such as shall
be made junior and subordinate in all respects to the Bonds, unless all of the Bonds are redeemed
or defeased coincidentally with the delivery of such additional bonds or other obligations.
(g) The City shall take all actions or proceedings necessary and proper, to the extent
permitted by law, to require connection of all property where liquid and solid waste, sewage, night
soil or industrial waste is produced with available sanitary sewers. The City shall, insofar as
possible, and to the extent permitted by law, cause all such sanitary sewers to be connected with said
sewage works.
(h) The provisions of this ordinance shall constitute a contract by and between the City
and the owners of the Bonds and BANs herein authorized, all the terms of which shall be enforceable
by any bondholder by any and all appropriate proceedings in law or in equity. After the issuance of
the Bonds or BANs, this ordinance shall not be repealed, amended or modified in any respect which
will adversely affect the rights or interests of the owners of the Bonds or BANs, nor shall the
Common Council or any other body of the City adopt any law, ordinance or resolution in any way
adversely affecting the rights of such owners so long as any of the Bonds, BANS, or the interest
thereon, remain outstanding or unpaid. Except in the case of changes described in Section 22(a) -(f),
this ordinance may be amended, however, without the consent of the owners of the Bonds or BANS,
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837635.1
" i f t h e C o m m o n C o u n c i l d e t e r m i n e s , i n i t s s o l e d i s c r e t i o n , t h a t s u c h a m e n d m e n t w o u l d n o t a d v e r s e l y
a f f e c t t h e o w n e r s o f t h e B o n d s o r B A N s .
( i ) 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 s h a l l b e c o n s t r u e d t o c r e a t e a t r u s t i n t h e p r o c e e d s
o f t h e s a l e o f t h e B o n d s a n d B A N S h e r e i n a u t h o r i z e d f o r t h e u s e s a n d p u r p o s e s h e r e i n s e t f o r t h , a n d
t h e o w n e r s o f t h e B o n d s a n d B A N S s h a l l r e t a i n a l i e n o n s u c h p r o c e e d s u n t i l t h e s a m e a r e a p p l i e d
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 a n d s a i d g o v e r n i n g A c t . 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 s h a l l a l s o b e c o n s t r u e d t o c r e a t e a t r u s t i n t h e N e t R e v e n u e s h e r e i n d i r e c t e d t o b e s e t a p a r t
a n d p a i d i n t o t h e S i n k i n g F u n d f o r t h e u s e s a n d p u r p o s e s o f t h a t F u n d a s i n t h i s o r d i n a n c e s e t f o r t h .
T h e o w n e r s o f t h e B o n d s s h a l l h a v e a l l t h e r i g h t s , r e m e d i e s a n d p r i v i l e g e s s e t f o r t h i n t h e p r o v i s i o n s
o f t h e g o v e r n i n g A c t , i n c l u d i n g t h e r i g h t t o h a v e a r e c e i v e r a p p o i n t e d t o a d m i n i s t e r t h e s e w a g e w o r k s
i n t h e e v e n t t h e C i t y s h a l l f a i l o r r e f u s e t o f i x a n d c o l l e c t s u f f i c i e n t r a t e s a n d c h a r g e s f o r t h o s e
. p u r p o s e s , o r s h a l l f a i l o r r e f u s e t o o p e r a t e a n d m a i n t a i n s a i d s y s t e m a n d t o a p p l y p r o p e r l y t h e
r e v e n u e s d e r i v e d f r o m t h e o p e r a t i o n t h e r e o f , o r i f t h e r e b e a d e f a u l t i n t h e p a y m e n t o f t h e i n t e r e s t
o n o r p r i n c i p a l o f t h e B o n d s .
S e c . 2 2 . A m e n d m e n t s w i t h C o n s e n t o f B o n d h o l d e r s S u b j e c t t o t h e t e r m s a n d p r o v i s i o n s
c o n t a i n e d i n t h i s s e c t i o n , a n d n o t o t h e r w i s e , t h e o w n e r s o f n o t l e s s t h a n s i x t y - s i x a n d t w o - t h i r d s
p e r c e n t ( 6 6 2 / 3 % ) i n 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 t h e B o n d s i s s u e d p u r s u a n t t o t h i s o r d i n a n c e a n d
t h e n o u t s t a n d i n g s h a l l h a v e t h e r i g h t f r o m t i m e t o t i m e , t o c o n s e n t t o a n d a p p r o v e t h e a d o p t i o n 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 s u c h o r d i n a n c e o r o r d i n a n c e s s u p p l e m e n t a l h e r e t o o r a m e n d a t o r y
h e r e o f , a s s h a l l b e d e e m e d n e c e s s a r y o r d e s i r a b l e b y t h e C i t y f o r t h e p u r p o s e o f m o d i f y i n g , a l t e r i n g ,
a m e n d i n g , a d d i n g t o o r r e s c i n d i n g i n a n y p a r t i c u l a r a n y o f t h e t e r m s o r p r o v i s i o n s c o n t a i n e d i n t h i s
"
- 3 9 -
8 3 7 6 3 5 . 1
ordinance, or in any supplemental ordinance; provided, however, that nothing herein contained shall
permit or be construed as permitting:
(a) An extension of the maturity of the principal of or interest on, or any mandatory
sinking fund redemption date for, any Bond issued pursuant to this ordinance; or
(b) A reduction in the principal amount of any Bond or the redemption premium or the
rate of interest thereon; or
(c) The creation of a lien upon or a pledge of the revenues or Net Revenues of the sewage
works ranking prior to the pledge thereof created by this ordinance; or
(d) A preference or priority of any Bond or Bonds issued pursuant to this ordinance over
any other Bond or Bonds issued pursuant to the provisions of this ordinance; or
(e) A reduction in the aggregate principal amount of the Bonds required for consent to
such supplemental ordinance; or
(f) A reduction in the Reserve Requirement.
If the owners of not less than sixty -six and two- thirds percent (66 2/3 %) in aggregate
principal amount of the Bonds outstanding at the time of adoption of such supplemental ordinance
shall have consented to and approved the adoption thereof by written instrument to be maintained
on file in the office of the Clerk - Treasurer of the City, no owner of any Bond issued pursuant to this
ordinance shall have any right to obj ect to the adoption of such supplemental ordinance or to obj ect
to any of the terms and provisions contained therein or the operation thereof, or in any manner to
question the propriety of the adoption thereof, or to enjoin or restrain the Common Council of the
City from adopting the same, or from taking any action pursuant to the provisions thereof. Upon the
adoption of any supplemental ordinance pursuant to the provisions of this section, this ordinance
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" s h a l l b e , a n d s h a l l b e d e e m e d , m o d i f i e d a n d a m e n d e d i n a c c o r d a n c e t h e r e w i t h , a n d t h e r e s p e c t i v e
r i g h t s , d u t i e s a n d o b l i g a t i o n s u n d e r t h i s o r d i n a n c e o f t h e C i t y a n d a l l o w n e r s o f B o n d s t h e n
o u t s t a n d i n g , s h a l l t h e r e a f t e r b e d e t e r m i n e d , e x e r c i s e d a n d e n f o r c e d i n a c c o r d a n c e w i t h t h i s
o r d i n a n c e , s u b j e c t i n a l l r e s p e c t s t o s u c h m o d i f i c a t i o n s a n d a m e n d m e n t s . N o t w i t h s t a n d i n g a n y t h i n g
c o n t a i n e d i n t h e f o r e g o i n g 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 , t h e r i g h t s a n d o b l i g a t i o n s o f t h e C i t y a n d o f
t h e o w n e r s o f t h e B o n d s a u t h o r i z e d b y t h i s o r d i n a n c e , a n d t h e t e r m s a n d p r o v i s i o n s o f t h e B o n d s a n d
t h i s o r d i n a n c e , o r a n y s u p p l e m e n t a l o r a m e n d a t o r y o r d i n a n c e , m a y b e m o d i f i e d o r a l t e r e d i n a n y
r e s p e c t w i t h t h e c o n s e n t o f t h e C i t y a n d t h e c o n s e n t o f t h e o w n e r s o f a l l t h e B o n d s t h e n o u t s t a n d i n g .
S e c . 2 3 . I n v e s t m e n t o f F u n d s
( a ) 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 i n v e s t m o n e y s p u r s u a n t t o 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 a n d I C 5 - 1 - 1 4 - 3 ( s u b j e c t t o a p p l i c a b l e r e q u i r e m e n t s o f f e d e r a l l a w t o i n s u r e s u c h
" y i e l d i s t h e n c u r r e n t m a r k e t r a t e ) t o t h e e x t e n t n e c e s s a r y o r a d v i s a b l e t o p r e s e r v e t h e e x c l u s i o n f r o m
g r o s s i n c o m e o f i n t e r e s t o n t h e B o n d s a n d B A N S u n d e r f e d e r a l l a w .
( b ) T h e C l e r k - T r e a s u r e r s h a l l k e e p f u l l a n d a c c u r a t e r e c o r d s o f i n v e s t m e n t e a r n i n g s a n d
i n c o m e f r o m m o n e y s h e l d i n t h e f u n d s a n d a c c o u n t s c r e a t e d o r r e f e r e n c e d h e r e i n . I n o r d e r t o c o m p l y
w i t h t h e p r o v i s i o n s o f t h e o r d i n a n c e , 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 e m p l o y
c o n s u l t a n t s o r a t t o r n e y s f r o m t i m e t o t i m e t o a d v i s e t h e C i t y a s t o r e q u i r e m e n t s o f f e d e r a l l a w t o
p r e s e r v e t h e t a x e x c l u s i o n . T h e C l e r k - T r e a s u r e r m a y p a y a n y f e e s a s o p e r a t i o n e x p e n s e s o f t h e
s e w a g e w o r k s .
S e c . 2 4 . T a x C o v e n a n t s I n o r d e r t o p r e s e r v e t h e e x c l u s i o n o f i n t e r e s t o n t h e B o n d s a n d
B A N S f r o m g r o s s i n c o m e f o r f e d e r a l t a x p u r p o s e s u n d e r S e c t i o n 1 0 3 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 e x i s t i n g o n t h e d a t e o f i s s u a n c e o f t h e B o n d s o r B A N S , a s t h e c a s e m a y b e ( t h e " C o d e " ) ,
i s
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8 3 7 6 3 5 . 1
® and as an inducement to purchasers of the Bonds and BANS, the City represents, covenants and
agrees that:
(a) The sewage works 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 BANS or property financed by the Bond or BAN 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 or BAN proceeds or will have any
actual or beneficial use of such 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 or BANS, as the case may be. If the City enters into a management
contract for the sewage works, the terms of the contract will comply with IRS Revenue Procedure
97 -13, as it may be amended, supplemented or superseded for 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 or BANS, as the case may be.
(b) No more than 10% of the principal of or interest on the Bonds or BANS is (under the
terms of the Bonds or BANs, 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
is
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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 or BAN proceeds will be loaned to any person or entity
other than another state or local governmental unit. No more than 5% of the Bond or BAN proceeds
will be transferred, directly or indirectly, or deemed transferred to a nongovernmental person in any
manner that would in substance constitute a loan of the Bond or BAN proceeds.
(d) The City reasonably expects, as of the date hereof, that the Bonds and BANS 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 or BANs, as the case may
be.
(e) No more than 5% of the proceeds of the Bonds or BANS 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 government 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
or BANs that would result in the loss of the exclusion from gross income for federal tax purposes
on the Bonds or BANS 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 or BANS to be treated as private activity
bonds under Section 141 of the Code.
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" ( g ) I t s h a l l b e n o t a n e v e n t o f d e f a u l t u n d e r t h i s o r d i n a n c e i f t h e i n t e r e s t o n a n y B o n d o r
B A N i s n o t e x c l u d a b l e f r o m g r o s s i n c o m e f o r f e d e r a l t a x p u r p o s e s o r o t h e r w i s e p u r s u a n t t o a n y
p r o v i s i o n o f t h e C o d e w h i c h i s n o t c u r r e n t l y i n e f f e c t a n d i n e x i s t e n c e o n t h e d a t e o f i s s u a n c e o f t h e
B o n d s o r B A N S , a s t h e c a s e m a y b e .
( h ) T h e s e c o v e n a n t s a r e b a s e d s o l e l y o n c u r r e n t l a w i n e f f e c t a n d i n e x i s t e n c e o n t h e d a t e
o f d e l i v e r y o f s u c h B o n d s o r B A N S , a s t h e c a s e m a y b e .
( i ) T h e C i t y r e p r e s e n t s t h a t i t w i l l r e b a t e a n y a r b i t r a g e p r o f i t s t o t h e U n i t e d S t a t e s o f
A m e r i c a i n a c c o r d a n c e w i t h t h e C o d e .
0 ) T h e C i t y r e p r e s e n t s t h a t :
( 1 ) T h e B o n d s a n d t h e B A N S a r e n o t p r i v a t e a c t i v i t y b o n d s a s d e f i n e d i n S e c t i o n
1 4 1 o f t h e C o d e ;
" ( 2 ) T h e C i t y h e r e b y d e s i g n a t e s t h e B o n d s a n d t h e B A N 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 f o r p u r p o s e s o f S e c t i o n 2 6 5 ( b ) o f t h e C o d e ;
( 3 ) T h e r e a s o n a b l y a n t i c i p a t e d a m o u n t o f 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
( i n c l u d i n g q u a l i f i e d 5 0 1 ( c ) ( 3 ) o b l i g a t i o n s a n d t a x - e x e m p t l e a s e s b u t e x c l u d i n g o t h e r p r i v a t e
a c t i v i t y b o n d s ) w h i c h w i l l b e i s s u e d b y t h e C i t y , a n d a l l e n t i t i e s s u b o r d i n a t e t o t h e C i t y
d u r i n g 2 0 0 1 d o e s n o t e x c e e d $ 1 0 , 0 0 0 , 0 0 0 ; a n d
( 4 ) T h e C i t y w i l l n o t d e s i g n a t e m o r e t h a n $ 1 0 , 0 0 0 , 0 0 0 o f 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 d u r i n g 2 0 0 1 .
T h e r e f o r e , t h e B o n d s a n d t h e B A N S q u a l i f y f o r t h e e x c e p t i o n i n t h e C o d e f r o m 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 b y f i n a n c i a l i n s t i t u t i o n s o f 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
n e w l y a c q u i r e d t a x - e x e m p t o b l i g a t i o n s .
I S
8 3 7 6 3 5 . 1
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Sec. 25. Issuance of BANS (a) The City, having satisfied all the statutory requirements for
® the issuance of its Bonds, may elect to issue its BAN or BANS to a financial institution, the Indiana
Bond Bank or any other purchaser pursuant to a Bond Anticipation Note Purchase Agreement (the
"Purchase Agreement ") to be entered into between the City and the purchaser of the BAN or BANs.
The Common Council hereby authorizes the issuance and execution of the BAN or BANS in lieu of
initially issuing the Bonds to provide interim financing for the refunding or the Project until
permanent financing becomes available. It shall not be necessary for the City to repeat the
procedures for the issuance of its Bonds, as the procedures followed before the issuance of the BAN
or BANs are for all purposes sufficient to authorize the issuance of the Bonds and the use of the
proceeds to repay the BAN or BANS.
(b) The Mayor and the Clerk- Treasurer are hereby authorized and directed to execute a
® Purchase Agreement in such form or substance as they shall approve acting upon the advice of
counsel. The Mayor and the Clerk- Treasurer may also take such other actions or deliver such other
certificates as are necessary or desirable in connection with the issuance of the BANS or the Bonds
and the other documents needed for the financing as they deem necessary or desirable in connection
therewith.
Sec. 26. Noncompliance with Tax Covenants Notwithstanding any other provisions of this
ordinance, the covenants and authorizations contained in this ordinance (the "Tax Sections ") which
are designed to preserve the exclusion of interest on the Bonds and BANS from gross income under
federal law (the "Tax Exemption ") need not be complied with if the City receives an opinion of
nationally recognized bond counsel that any Tax Section is unnecessary to preserve the Tax
Exemption.
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® Sec. 27. Rates and Charges The estimate of the rates and charges of the sewage works are
set forth in Ordinance No. to be adopted on 2001. Said ordinance is
hereby incorporated herein by reference.
Sec. 28. Conflicting Ordinances All ordinances and parts of ordinances in conflict herewith
except the ordinance authorizing the 2000 Bonds, are hereby repealed, provided, however, that the
adoption of this ordinance shall (i) amend Section 17 of the 2000 Ordinance as described in Section
20 of this ordinance and (2) not adversely affect the owners. of the 2000 Bonds.
Sec. 29. Headings The headings or titles of the several sections shall be solely for
convenience of reference and shall not affect the meaning, construction or effect of this ordinance.
Sec. 30. Effective Date This ordinance shall be in full force and effect from and after its
passage and execution by the Mayor.
® Passed and adopted by the Common Council of the City of Greencastle this M day of
J1 12 � a _/__' 2001.
COMM COUNCIL
Bade -4
Presiding Of cer
Attu .
Clerk- Treasurer
E
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® Presented by me to the Mayor of the City of Greencastle this day of
2001 at ��a.m.
Clerk- Treasurer
Signed and approved by me, the Mayor of the City of Greencastle, this A day of t/Z -1-04/
2001 atL'4.m.
Mayor
I'
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EXHIBIT A
Waste Water Improvements Project
Description of Project
The project consists of supplemental funding for completing the construction of a new waste
water treatment plant and new sewer interceptor for the southeastern portion of the City and the
reduction of inflow and infiltration into the City's sewer system. The entire project is being
constructed in compliance with an Order to abate water pollution. The City shall proceed with
the acquisition, construction, installation and repairs for the project and shall enter into all
contracts necessary or appropriate for such purpose in conformity with and subject to the
requirements and conditions set forth in this Ordinance.