HomeMy Public PortalAboutRES-CC-2003-23Moab, Utah
October 14, 2003
The City Council of the City of Moab, Grand County, Utah (the "Issuer"), met m
regular session on October 14, 2003, at its regular meeting place in Moab, Utah, at 7 00
p m with the following members present
Dave Saknson Mayor
Gregg W Stuck' Councilmember
Kirstin Peterson Councilmember
Rob Sweeten Councilmember
Jeffery Davis Councilmember
Kyle D Bailey Councilmember
Also present
Rachel Ellison City Recorder
Absent
After the meeting had been duly called to order and after other matters not
pertinent to this resolution had been discussed, the City Recorder presented to the
Council a Certificate of Compliance With Open Meeting Law with respect to this
October 14, 2003 meeting, a copy of which is attached hereto as Exhibit A
The City Recorder notified the City Council that the Notice of Public Heanng and
Bonds to Be Issued calling a public heanng on October 14, 2003, at 7 00 p m at the City
offices m Moab, Utah, to receive input from the public with respect to the issuance by the
Issuer of its Sales Tax Revenue Bonds, Senes 2003 in an amount not to exceed
$2,050,000 (the "Scnes 2003 Bonds"), had been published in the Times Independent, a
newspaper of general circulation in the Issuer, said notice having been published two
times, once dunng each week for two consecutive weeks, the first publication being not
less than fourteen (14) days pnor to October 14, 2003, and that the affidavits of
publishing said Notice with a copy of the Notice as published were duly filed m the City
Recorder's office, and that a copy of the resolution authonzing said Notices have been on
file in the City Recorder's office dunng all regular office hours from September 23, 2003,
for the exammation of any interested parties
UT_DOCS_A #1139393 v2
PUBLIC HEARING
Thereafter, the Mayor of the Issuer announced the commencement of the public
hearing pursuant to the published Notice of Public Heanng and Bonds to Be Issued An
invitation to speak was extended to any person wishing to be heard concerning the Senes
2003 Bonds The City Council then heard from the following persons whose comments
arc bnefly summarized below
See attached Schedule 2 for Public Heanng Minutes
The public heanng was then closed and the City Council determined that fewer
than the required amount of wntten petitions of register voters had been filed and
considered the issuance of the Senes 2003 Bonds
UT DOCS_A #1139393 v2 2
Thereupon, the following resolution was introduced in wntten form, discussed in
full, and pursuant to motion made by Councilmember Davis and seconded by
Councilmember Sweeten , adopted by the following vote
AYE
NAY
Councilmember Bailey
Councilmember Davis
Councilmember Peterson
Councilmember Stucki
Councilmember Sweeten
UT DOCS A #1139393 v2 3
RESOLUTION NO
23-2003
A RESOLUTION AUTHORIZING THE ISSUANCE AND
CONFIRMING THE SALE OF SALES TAX REVENUE BONDS,
SERIES 2003 IN AN AGGREGATE PRINCIPAL AMOUNT OF
S2,050,000 (THE "SERIES 2003 BONDS") OF THE CITY OF
MOAB, GRAND COUNTY, UTAH (THE "ISSUER"), FOR THE
PURPOSE OF FINANCING THE RENOVATION OF AN
EXISTING BUILDING TO SERVE AS THE NEW CITY HALL
AND RELATED IMPROVEMENTS AND PAYING THE COSTS
OF ISSUNG SAID SERIES 2003 BONDS, PRESCRIBNG THE
FORM OF THE SERIES 2003 BONDS TO BE ISSUED, THE
TERMS AND CONDITIONS OF ISSUANCE AND
RETIREMENT AND THE SECURITY THEREFOR, PROVIDING
FOR THE COLLECTION, HANDLING AND DISPOSITION OF
CERTAIN SALES TAX REVENUES OF THE ISSUER PLEDGED
FOR THE PAYMENT OF SAID BONDS, AUTHORIZING THE
TAKING OF ALL OTHER ACTIONS NECESSARY TO THE
CONSUMMATION OF THE TRANS ACTIONS
CONTEMPLATED BY THIS BOND RESOLUTION, AND
RELATED MATTERS
WHEREAS, the Utah Municipal Bond Act, Title 11, Chapter 14, Utah Code
Annotated 1953, as amended, authonzes the issuance of nonvoted excise tax revenue
bonds payable solely from the excise tax revenues of cities, towns or counties, levied and
collected by the said govemment entity or levied by the State of Utah and rebated
pursuant to law, and
WHEREAS, the City Council (the "City Council") of the City of Moab, Grand
County, Utah (the "Issuer"), desires to renovate an existing building to serve as a new
city hall and related improvements (the "Project), the cost thereof to be paid, through the
issuance of its Sales Tax Revenue Bonds, Series 2003 (the "Senes 2003 Bonds"), and
WHEREAS, based upon the information available to the Issuer, the excise taxes
of the Issuer to be pledged will produce sufficient Revenues (as herein defined) to pay the
debt service on the Senes 2003 Bonds, and
WHEREAS, the Series 2003 Bonds and all bonds issued on a panty therewith
shall not at any one time exceed an amount for which the average annual installments of
principal and Interest will exceed 80% of the Issuer's Revenues, as defined herein, from
the collection or rebate of Sales Tax revenues received by the Issuer dunng its fiscal year
immediately preceding the fiscal year in which this Resolution is adopted, and
WHEREAS, the State of Utah acting through the Permanent Community Impact
Fund Board (the "Community Impact Board") has offered to purchase the Senes 2003
Bonds at par in the total pnncipal amount of $2,050,000 and bearing Interest at the rate of
two and one-half percent (2 5%) per annum on the unpaid pnncipal amount thereof, and
UT_DOCS_A #1139393 v2 4
WHEREAS, the Issuer desires to accept the offer of the Community Impact
Board and to confirm the sale of the Series 2003 Bonds to the Community Impact Board
NOW, THEREFORE, it is hereby resolved by the City Council of the City of
Moab, Grand County, Utah, as follows
UT_DOCS_A #1139393 v2 5
ARTICLE I
DEFINITIONS
Section 1 1 Definitions As used in this Resolution, the following teens shall
have the following meanings unless the context otherwise clearly indicates
"Annual Debt Service" means the total requirement of pnncipal, interest and
premium payments, if any, to be paid by the Issuer during any Sinking Fund Year on the
Issuer's outstanding Series 2003 Bonds or other forms of indebtedness issued on a panty
with the Series 2003 Bonds
"Average Annual Debt Service" means the sum total of the Annual Debt Service
for all Sinking Fund Years divided by the total number of Sinking Fund Years dunng
which any of the Serves 2003 Bonds will remain outstanding
"Bondholder," "Registered Owner" or "Owner" means the registered owner of
any bonds herein authonzed
"Business Day" means a day on which banking business is transacted, but not
including any day on which banks are authonzed to be closed within the boundanes of
the Issuer
"Community Impact Board" means the State of Utah Permanent Community
Impact Fund Board, or any successor thereof
"Code" means the Internal Revenue Code of 1986, as amended
"Dated Date" means the initial delivery date of the Senes 2003 Bonds
"Default" and "Event of Default" mean with respect to any default or event of
default under this Resolution any occurrence or event specified in and defined by Section
51 hereof
"Depository Bank" means a "Qualified Depository' as defined in the State Money
Management Act of 1974, Title 51, Chapter 7, Utah Code Annotated, 1953, as amended,
selected by the Issuer to receive deposits for the Revenue Fund as herein descnbed, the
deposits of which Bank shall be insured by the Federal Deposit Insurance Corporation
"Escrow Account" means an account to be held in escrow by the Escrow Agent
pursuant to the Escrow Agreement, said account to be used for the purpose of depositing
the proceeds of the sale of the Senes 2003 Bonds and accounting for said proceeds
pursuant to the terms of the Escrow Agreement
"Escrow Agent" means the Utah State Treasurer, Salt Lake City, Utah, who shall
so act pursuant to the terms of the Escrow Agreement
UT_DOCS_A #1139393 v2 6
"Escrow Agreement" means the agreement entered into among the Issuer, the
Community Impact Board and the Escrow Agent on the date of delivery of the Senes
2003 Bonds
"Exchange Bonds" means the fully registered Senes 2003 Bonds issued in
substantially the form set forth m Exhibit C, in exchange for the State Bonds representing
the Senes 2003 Bonds or in exchange for other Exchange Bonds, in the denomination of
$1,000 or any integral multiple thereof
"Fully Registered Bond" means any single Fully Registered Bond in the
denomination(s) equal to the aggregate pnncipal amount of the applicable Senes 2003
Bonds authorized herein
"Governing Body" means the City Council of the Issuer
"Issuer" means the City of Moab, Grand County, Utah, or any successor entity
"Paying Agent" means the person or persons authonzed by the Issuer to pay the
pnncipal of and interest on the Senes 2003 Bonds on behalf of the Issuer The initial
paying agent for the Senes 2003 Bonds is the City Recorder of the Issuer
"Project" means the renovation of an existing building to serve as the new city
hall and related improvements
"Registrar" means the person or persons authonzed by the Issuer to maintain the
registration books with respect to the Senes 2003 Bonds on behalf of the Issuer The
initial Registrar for the Senes 2003 Bonds is the City Recorder of the Issuer
"Resolution" means collectively this resolution adopted by the Issuer on
October 14, 2003, authonzing the sale and issuance of Senes 2003 Bonds, as from time
to time amended and supplemented, and the parameters resolution adopted by the Issuer
on September 23, 2003
"Revenues" means 100% of the Local Sales and Use Taxes received by the Issuer
pursuant to Title 59, Chapter 12, Part 2, Utah Code Annotated 1953, as amended, as
authonzed by the Issuer's Ordinance No 90-04 adopted by the Issuer on March 20, 1990
"Senes 2003 Bonds" means Issuer's Sales Tax Revenue Bonds, Senes 2003 in the
total pnncipal amount of $2,050,000 beanng interest at two and one-half percent (2 5%)
per annum on the unpaid pnncipal amount
"Sinking Fund Year" means the 12-month penod beginning July 1 of each year
and ending June 30 of the following year, except that the first Sinking Fund Year will
begin on the delivery date of the Senes 2003 Bonds and will end on the following June
30
"State" means the State of Utah
UT_DOCS_A #1139393 v2 7
"State Bonds" means the fully registered Senes 2003 Bonds issued 1n
substantially the form set forth m Exlublt B m the denominations equal to the aggregate
pnncipal amount of the Senes 2003 Bonds
UT DOCS A #1139393 v2 8
ARTICLE II
ISSUANCE OF SERIES 2003 BONDS
Section 2 l Pnncipal Amount, Designation, Senes and Interest Rate The
Senes 2003 Bonds are hereby authonzed for issuance for the purpose of providmg funds
to (i) renovate the Project, and (n) pay costs incurred in connection with the issuance of
the Senes 2003 Bonds The Senes 2003 Bonds shall be limited to $2,050,000 in
aggregate pnncipal amount, shall be issued (i) if issued as a State Bond(s), in the form set
forth m Exhibit B and (n) if issued as Exchange Bonds, in the form set forth m Exhibit C,
m fully registered form and shall bear interest from October 1, 2004, at the rate of two
and one-half percent (2 5%) on the unpaid balance of the pnncipal sum If issued as
Exchange Bonds, the Senes 2003 Bonds shall be in the denomination of $1,000 or any
integral multiple thereof The Senes 2003 Bonds shall be numbered from one (1)
consecutively upward in order of delivery by the Registrar The Senes 2003 Bonds shall
be designated as, and shall be distinguished from the bonds of all other senes by the title,
"The City of Moab, Grand County, Utah Sales Tax Revenue Bonds, Senes 2003"
Section 2 2 Date and Matunties The Senes 2003 Bonds shall be dated as of
their date of delivery, shall be in the denomination of $1,000 or any integral multiple
thereof, and shall be paid as provided in this Section 2 2 The Senes 2003 Bonds shall be
initially issued as a single fully registered State Bond
Except as provided in the next succeeding paragraph, pnncipal payments, whether
at matunty or by redemption, shall be payable upon presentation of the applicable Senes
2003 Bond at the offices of the Paying Agent for endorsement or surrender, or of any
successor Paying Agent Payment of interest shall be made to the Registered Owner
thereof and shall be paid by check or draft mailed to the Registered Owner thereof at his
address as it appears on the registration books of the Issuer maintained by the Registrar or
at such other address as is famished to the Registrar in wnting by such Registered
Owner All payments shall be made in any coin or currency which on the date of
payment is legal tender for the payment of debts due the United States of Amenca
So long as the Community Impact Board is the Registered Owner of the Senes
2003 Bonds, payments of pnncipal and interest shall be made by check or draft and
mailed to the Community Impact Board as the Registered Owner at the address shown on
the registration books maintained by the City Recorder
The Issuer shall make the pnncipal payments stated for each year, together with
accrued but unpaid interest, on the total pnncipal sum outstanding with interest accruing
from October 1, 2004, payable beginning October 1, 2005, and continuing on each
October 1 thereafter until the total pnncipal sum shall be paid in full, as follows
UT_DOCS_A #1139393 J2 9
October 1 Pnnclpal Matunng October 1 Pnncipal Matunng
2005 $60,000 2018 $83,000
2006 62,000 2019 85,000
2007 63,000 2020 87,000
2008 65,000 2021 89,000
2009 66,000 2022 91,000
2010 68,000 2023 94,000
2011 70,000 2024 96,000
2012 71,000 2025 98,000
2013 73,000 2026 100,000
2014 75,000 2027 103,000
2015 77,000 2028 106,000
2016 79,000 2029 108,000
2017 81,000
Section 2 3 Optional Redemption and Redemption Pnces Each pnncipal
payment of the Senes 2003 Bond 1s subject to prepayment and redemption at any time, in
whole or 1n part (if m part, in integral multiples of $1,000), at the election of the Issuer, in
inverse order of the pnncipal payment dates thereof, and by lot selected by the Issuer if
less than all of the Senes 2003 Bonds of a particular pnncipal payment date are to be
redeemed, upon notice as provided in Section 2 4 hereof with respect to Exchange Bonds,
and upon at least thirty (30) days' pnor wntten notice of the amount of prepayment and
the date scheduled for prepayment to the Community Impact Board with respect to the
Senes 2003 Bonds, and at a redemption pnce equal to 100% of the pnnemal amount to
be prepaid or redeemed, plus accrued interest, if any, to the date of redemption
Section 2 4 Notice of Redemption for Exchange Bonds
(a) In the event any of the Exchange Bonds are to be redeemed, the
Registrar shall cause notice to be given as provided in this Section 2 4 Notice of
such redemption shall be mailed by first class mail, postage prepaid, to all
Registered owners of Exchange Bonds to be redeemed at their addresses as they
appear on the registration books of the Registrar at least thirty (30) days but not
more than forty-five (45) days pnor to the date fixed for redemption Such notice
shall state the following information
0) the complete official name of the Exchange Bonds,
including serves, to be redeemed, the identification numbers of the
Exchange Bonds being redeemed,
(n) any other descriptive information needed to identify
accurately the Exchange Bonds being redeemed, including, but not limited
to, the ongmal issue date of such Exchange Bonds,
UT_DOCS A #1139393 v2 10
(m) in the case of partial redemption of any Exchange Bonds,
the respective pnncipal amounts thereof to be redeemed,
(iv) the date of mailing of redemption notices and the
redemption date,
(v) the redemption pnce,
(vi) that on the redemption date the redemption pnce will
become due and payable upon each such Exchange Bond or portion
thereof called for redemption, and
(vn) the place where such Exchange Bonds are to be
surrendered for payment of the redemption pnce, designating the name
and address of the redemption agent with the name of a contact person and
telephone number
(b) Upon the payment of the redemption pnce of Exchange Bonds
being redeemed, each check or other transfer of funds issued for such purpose
shall identify the Exchange Bonds being redeemed with the proceeds of such
check or other transfer
(c) The Registrar shall not give notice of such a redemption until there
are on deposit with the Paying Agent sufficient funds for the payment of the
redemption pnce
Notice of redemption shall be given, not more than forty-five (45) days
nor less than thirty (30) days pnor to the redemption date, to registered owners of
the Exchange Bonds, or portions thereof, to be redeemed A second notice of
redemption shall be given, not later than ninety (90) days subsequent to the
redemption date, to registered owners of Exchange Bonds or portions thereof
redeemed but who failed to deliver Senes 2003 Bonds for redemption pnor to the
60th day following such redemption date Any notice mailed shall be
conclusively presumed to have been duly given, whether or not the Registered
Owner of such Series 2003 Bonds receives the notice Receipt of such notice,
shall not be a condition precedent to such redemption, and failure so to receive
any such notice by any of such registered owners shall not affect the validity of
the proceedings for the redemption of the Senes 2003 Bonds
In case any Exchange Bond is to be redeemed in part only, the notice of
redemption which relates to such Exchange Bond shall state also that on or after
the redemption date, upon surrender of such Senes 2003 Bond, a new Senes 2003
Bond in principal amount equal to the unredeemed portion of such Senes 2003
Bond will be issued
Section 2 5 Execution and Delivery of the Senes 2003 Bonds The Mayor is
hereby authonzed to execute by manual or facsimile signature the Senes 2003 Bonds and
the City Recorder to countersign by manual or facsimile signature the Senes 2003 Bonds
UT_DOCS_A #1139393 v2 1 1
and to have impnnted, engraved, lithographed, stamped or otherwise placed on the Senes
2003 Bonds the official seal of the Issuer The City Recorder is hereby authonzed to
deliver to the Community Impact Board the Senes 2003 Bonds upon payment to the
Issuer of the proceeds of the Senes 2003 Bonds
Section 2 6 Delinquent Payment Payments of pnncipal and/or interest on the
Senes 2003 Bonds which are delinquent from the due date thereof shall draw interest at
the rate of eighteen percent (18%) per annum on the delmquent payment from said due
date until paid in full
Section 2 7 Exchange of Senes 2003 Bonds As long as the Community
Impact Board is the sole Registered Owner of the Senes 2003 Bonds, the Senes 2003
Bonds shall be issued only as the Senes 2003 Bonds in the form prescnbed in Exhibit B
It is recognized that the Community Impact Board may sell or otherwise transfer the
Senes 2003 Bonds pursuant to the provisions of the State Financing Consolidation Act,
Title 63, Chapter 65, Utah Code Annotated 1953, as amended, or otherwise In the event
the Community Impact Board determines to sell or otherwise transfer all or a portion of
the Senes 2003 Bonds pursuant to the State Financing Consolidation Act, or otherwise,
the Senes 2003 Bonds shall be exchanged at the office of the Paying Agent for a like
aggregate pnncipal amount of Exchange Bonds in accordance with the provisions of this
Section 2 7 and Section 3 1 hereof Exchange Bonds may thereafter be exchanged from
time to time for other Exchange Bonds in accordance with Section 3 1 hereof Any
Senes 2003 Bond, or any portion thereof, which is sold or otherwise transferred or
liquidated by the Community Impact Board pursuant to the State Financing
Consolidation Act, or otherwise, shall be in the form of an Exchange Bond prescnbed in
Exhibit C, and shall be executed pursuant to authonzation contained in Section 2 5
hereof Each pnncipal payment on the Senes 2003 Bonds not previously paid or
cancelled shall be represented by an equivalent pnncipal amount of Exchange Bonds, in
authonzed denominations, and of like matunty The Issuer and its officers shall execute
and deliver such documents and perform such acts as may reasonably be required by the
Issuer to accomplish the exchange of the Senes 2003 Bonds for Exchange Bonds,
provided that the Community Impact Board shall pay or cause to be paid all costs and
other charges incident to such exchange and the Issuer shall have no obligation to pay
any such costs or charges
UT_DOCS A#1139393v2 12
ARTICLE III
REGISTRATION, PAYMENT, AND FLOW OF FUNDS
Section 3 1 Execution of and Registration of Senes 2003 Bonds, Persons
Treated as Owners The Senes 2003 Bonds shall be signed by the Issuer and the Issuer
shall cause books for the registration and for the transfer of the Senes 2003 Bonds to be
kept by the City Recorder who is hereby appointed the Registrar of the Issuer with
respect to the Series 2003 Bonds Any Senes 2003 Bond may, in accordance with its
terns, be transferred only upon the registration books kept by the Registrar, by the person
in whose name it is registered, in person or by lus duly authonzed attorney, upon
surrender of such Senes 2003 Bond for cancellation, accompanied by delivery of a
wntten instrument of transfer in a form approved by the Registrar, duly executed No
transfer shall be effective until entered on the registration books kept by the Registrar
Upon surrender for transfer of any Senes 2003 Bond duly endorsed by, or accompamed
by a wntten instrument or instruments of transfer in fonn satisfactory to the Registrar and
duly executed by, the Registered Owner or his attorney duly authonzed in wnting, the
Issuer shall execute and deliver in the name of the transferee or transferees, a new Senes
2003 Bond or Bonds of the same matunty and senes for a like aggregate pnncipal
amount as the Senes 2003 Bond surrendered for transfer Senes 2003 Bonds may be
exchanged at the office of the Registrar for a like aggregate pnncipal amount of Senes
2003 Bonds of the same series or other authonzed denominations and the same matunty
The execution by the Issuer of any Senes 2003 Bond of any authonzed denomination
shall constitute full and due authonzation of such denomination, and the Registrar shall
thereby be authorized to deliver such Senes 2003 Bond The Registrar shall not be
required to transfer or exchange any Exchange Bond at any time following the mailing of
notice calling such Senes 2003 Bond for redemption
Senes 2003 Bonds surrendered for payment, redemption or exchange, shall be
promptly cancelled and destroyed by the Issuer
The Issuer, the Registrar and the Paying Agent may treat and consider the person
in whose name each Senes 2003 Bond is registered on the registration books kept by the
Registrar as the holder and absolute owner thereof for the purpose of receiving payment
of, or on account of, the principal or redemption puce thereof and for all other purposes
whatsoever, and neither the Issuer, nor the Registrar nor the Paying Agent shall be
affected by any notice to the contrary Payment of any Senes 2003 Bond shall be made
only to or upon order of the Registered Owner thereof or his legal representative, but
such registration may be changed as heremabove provided All such payments shall be
valid and effectual to satisfy and discharge the liability upon such Senes 2003 Bond to
the extent of the sum or sums so paid
The Issuer may require the payment by the Registered Owner requesting
exchange or transfer of Senes 2003 Bonds of any tax or other governmental charge and
any service charge which are required to be paid with respect to such exchange or
transfer and such charges shall be paid before such new Senes 2003 Bond shall be
delivered
UT_DOCS A #1139393 v2 13
Section 3 2 Deposit of Bond Proceeds The proceeds from the sale of the
Senes 2003 Bonds shall be deposited upon delivery in the Escrow Account and shall be
disbursed pursuant to the provisions of the Escrow Agreement All monies deposited in
the Escrow Account shall be used solely for the purpose of defraying all or a portion of
the costs of the Project including the payment of costs of issuance of the Senes 2003
Bonds Any unexpended balance of the proceeds from the sale of the Senes 2003 Bonds
remaining in the Escrow Account after completion of the Project shall be paid
immediately into the "City of Moab, Utah Sales Tax Revenue Bond Sinlung Fund
Account," hereinafter referred to herem as the "Sinking Fund" established hereunder, and
shall be used only for the prepayment of the Senes 2003 Bonds Pnncipal and interest
last to become due shall be prepaid fast, and in the event less than all of the pnncipal
amount of the Senes 2003 Bonds matunng on the last due date are to be redeemed, the
Issuer shall by lot select those Senes 2003 Bonds to be prepaid Proceeds from the sale
of the Senes 2003 Bonds on deposit in the Escrow Account may, at the discretion of the
Issuer, be Invested by the Escrow Agent as provided in the Escrow Agreement
Followmg the transfer of unexpended funds from the Escrow Account to the Bond
Account, the Escrow Account will be closed
Section 3 3 The Senes 2003 Bonds Constttute Special Limited Obligations
Notwithstanding anything in this Bond Resolution elsewhere contained, the pnncipal and
interest on the Senes 2003 Bonds shall be payable out of 100% of the Revenues, and in
no event shall the Senes 2003 Bonds be deemed or construed to be a general
indebtedness of the Issuer or payable from any funds of the Issuer other than Revenues
The Issuer may, in its sole discretion, but without obligation and subject to the
Constitution, laws, and budgetary requirements of the State of Utah, make available
properly budgeted and legally available funds to defray any insufficiency of Revenues to
pay the Senes 2003 Bonds, provided however, the Issuer has not covenanted and cannot
covenant to make said funds available and has not pledged any of such funds for such
purpose
Section 3 4 Flow of Funds for the Senes 2003 Bonds From and after the
earlier of the delivery date of the Senes 2003 Bonds, and until all the Senes 2003 Bonds
have been fully paid, the Revenues shall be set aside into the City of Moab Sales Tax
Revenue Fund (the "Revenue Fund"), established hereunder, to be held by the Depository
Bank The Issuer will thereafter make accounting allocations of the funds deposited in
said Revenue Fund for the followmg purposes and in the following pnonty
(a) Revenues m the Revenue Fund shall be allocated to the Sinking
Fund established hereunder
(i) Of the amounts allocated to the Sinking Fund there shall be
allocated the following amounts to a subaccount established on the books
of the Issuer known as the "Bond Account" such amounts as will assure,
to the extent of the availability of Revenues, the prompt payment of the
pnncipal and interest on the Senes 2003 Bonds and all bonds issued on a
panty therewith, as shall become due The amount to be so set aside with
UT DOCS_A #1139393 v2 14
respect to the Senes 2003 Bonds shall, as nearly as may be practicable, be
set aside and allocated to the Bond Account monthly, on or before the
tenth day of each month, beginning October 10, 2004, and shall equal 1/12
of the Interest next falling due on the Senes 2003 Bonds and 1/12 of the
amount of the pnncipal on the payment next due on the Senes 2003
Bonds, and
(n) Of the amounts allocated to the Sinking Fund after there
shall have been allocated the amounts required to be allocated under (i)
above, there shall be allocated monthly payments of S1,553 plus such
amount as may be required to meet any monthly installment to the Reserve
Account called the Reserve Account—Senes 2003 not theretofore made In
whole or in part, such allocation shall continue until there shall have been
accumulated in the Reserve Account—Senes 2003 an amount equal to
$111,750 Amounts allocated to the Reserve Account - Senes 2003 shall
be used to pay the pnncipal and interest falling due on the Senes 2003
Bonds at any time when there are insufficient funds In the Bond Account
to pay the same, but pending such use may be invested as hereafter
provided When the Reserve Account - Senes 2003 has been accumulated
as in this paragraph provided, no further allocations to said Reserve
Account need be made unless payments from said Reserve Account has
reduced below the amounts required by this paragraph, in which event
allocations shall be resumed until such deficiency has been remedied, and
(b) All remaining funds, If any, In the Revenue Fund after all of the
payments required to be made into the Bond Account and Reserve Account
referenced herein have been made, may be used by the Issuer for any lawful
purpose
(c) If at any time, the Revenues of the Issuer shall be Insufficient to
make any payment to any of the above funds or accounts on the date or dates
specified, the Issuer shall make good the amount of such deficiency by making
additional payments out of the first available Revenues thereafter received by the
Issuer
Section 3 5 Investment of Funds Any funds allocated to the Bond Account
and the Reserve Account may, at the discretion of the Issuer, be Invested in accordance
with the State Money Management Act All income denved from the investment of the
funds Of the Bond Account shall be maintained In said funds and disbursed along with the
other moneys on deposit therein as herein provided All Income denved from the
Investment of the Reserve Account shall at the end of each Sinking Fund Year be
transferred by the Issuer to the Bond Account so long as the Reserve Account-Senes
2003 has funds equaling $111,750 Should the Reserve Account—Senes 2003 have less
than $111,750, then said Income shall be maintained In the Reserve Account—Senes 2003
until total deposits In the Account equals S111,750 There shall not be required to be In
the Bond Account and the Reserve Account at any time more than the total amount
required to pay the total pnnclpal outstanding of the Senes 2003 Bonds Whenever the
UT DOCS A X1139393 Nt 15
money in the Bond Account and the Reserve Account equal the total pnnelpal amount of
the Senes 2003 Bonds, the money m said Account shall be used to prepay all of such
Bonds
UT_DOCS_A #1139393 v2 16
ARTICLE IV
GENERAL COVENANTS
Section 4 1 General Covenants The Issuer hereby covenants and agrees with
each and every holder of the Senes 2003 Bonds issued hereunder the followmg
(a) While any of the Senes 2003 Bonds remain outstandmg and
unpaid, any resolution or other enactment of the Governing Body of the Issuer,
applying the Revenues for the payment of the Senes 2003 Bonds shall be
irrevocable until the Senes 2003 Bonds have been paid in full, and shall not be
subject to amendment or modification in any manner which would impair the
nghts of the holders of the Senes 2003 Bonds or wluch would in any way
jeopardize the timely payment of pnncipal when due
(b) The average annual installments of pnnc►pal and interest on the
Senes 2003 Bonds and any bonds issued on a panty will not at any one time
exceed 80% of the total amount of the total with Revenues received by the Issuer
dunng the Smiting Fund Year Immediately preceding the Smkmg Fund Year to
wluch this Bond Resolution Is adopted
(c) So long as any Senes 2003 Bonds remain outstanding, proper
books of record and account will be kept by the Issuer separate and apart from all
other records and accounts, showing complete And correct entries of all
transactions relatmg to the receipt and use of the Revenues Each Bondholder or
any duly authonzed agent or agents of such holder shall have the nght at all
reasonable times to inspect all records, accounts and data relating thereto Except
as otherwise provided herein, the Issuer further agrees that It will witlun one
hundred eighty (180) days following the close of each Sinking Fund Year cause
an audit of such books and accounts to be made by an independent fine of
certified public accountants, showing the receipts and disbursements for account
of Revenues, and that such audit will be available for Inspection by the
Bondholder, provided, however, dunng such penods of time as the Community
Impact Board Is the Registered Owner of the State Bonds, each such audit will be
supplied to the Commumty Impact Board as soon as completed without pnor
request therefor by the Community Impact Board Each such audit, In addition to
whatever matters may be thought proper by the accountant to be included therein,
shall include the following
(i) A statement in detail of the income and expenditures of
Revenues for such Sinking Fund Year,
(n) A balance sheet as of the end of such Sinking Fund Year,
(m) The accountant's comments regarding the manner in which
the Issuer has tamed out the requirements of this Bond Resolution, and
the accountant's recommendations for any change or improvement, and
UT_DOCS A *1139393 v2
17
(iv) An analysis of all funds and accounts created in this Bond
Resolution, setting out all deposits and disbursements made dunng the
Sinking Fund Year and the amount in each fund or account at the end of
the Striking Fund Year
The Bondholder may, upon wntten request from the Issuer setting forth
the reasons why a certified audit is not necessary or is impractical, waive the audit
requirements for any particular Sinking Fund Year set forth in this Subsechon
4 1(c), provided, however, that such waiver shall not apply to the reporting
requirements of the Issuer set forth in Subsection 4 l(e) herein
(d) In addition to the reporting requirements set forth in Subsection
41(c) above, the Issuer shall submit to the Community Impact Board within one
hundred eighty (180) days following the close of each Sinking Fund Year, a
summary report substantially in the form as provided by the Community Impact
Board to the Issuer upon purchase of the Senes 2003 Bonds
If a Bondholder is other than the Commumty Impact Board, the Issuer
agrees to furnish a copy of such information to such Bondholder at its request
after the close of each Sinking Fund Year Any Bondholder shall have the nght to
discuss with the accountant compiling such information the contents thereof and
to ask for such addihonal information as it may reasonably require
(e) Upon request, the Issuer will furnish to the Bondholder financial
statements and other information relating to the issuer and its Revenues as it may
from time to time reasonably require
(f) The Issuer will carry insurance, including, but not limited to,
workmen's compensation insurance and public liability insurance, in such
amounts and to such extent as is normally camed by similar governmental
enhhes
(g) The Bondholder shall have the nght at all reasonable times to
inspect the Project, and all records, accounts and data of the Issuer relating
thereto, and upon request, the Issuer will furnish to it financial statements and
other information relating to the Issuer and the Project as it may from time to time
reasonably require
(h) Every officer, agent or employee of the Issuer having custody or
control of any of the Revenues or of the proceeds of the Senes 2003 Bonds shall
be bonded by a responsible corporate surety in an amount not less than twice the
maximum annual debt service for the Senes 2003 Bonds
(i) The Issuer shall commence and complete the acquisition and
construction of the Project with all practical dispatch and will cause all
construction to be effected in a sound and economical manner
UT_DOCS_A #1139393 v2 18
(1) The Issuer will from time to time duly pay and discharge or cause
to be paid all taxes, assessments and other governmental charges, if any, lawfully
imposed upon the Project or any part thereof or upon the Revenues, as well as any
lawful claims for labor, matenals or supplies which if unpaid might by law
become a lien or charge upon the PrQlect or the Revenues or any part thereof or
which might impair the security of the Senes 2003 Bonds, except when the issuer
in good faith contests its liability to pay the same
(k) All payments falling due on the Senes 2003 Bonds shall be made
to the Bondholder thereof at par and all charges made by the Depository Bank for
its services shall be paid by the Issuer
(1) The Issuer will mamtam its corporate identity, will make no
attempt to cause its corporate existence to be abolished and will resist all attempts
by other municipal corporations to annex all or any part of the temtory now or
hereafter m the Issuer or served by the Project
(m) The Issuer will file or cause to be filed with the Internal Revenue
Service Center, Ogden, Utah 84201, on or before the fifteenth day of the second
calendar month after the close of the calendar quarter in which the Senes 2003
Bonds are issued, a Form 8038-G, Information Return for Tax -Exempt
Governmental Bond Issues, with respect to the Senes 2003 Bonds
(n) The Issuer further covenants and agrees to and for the benefit of
the registered owners of the Senes 2003 Bonds that the Issuer (i) will not take any
action that would cause interest on the Senes 2003 Bonds to become includible in
gross income for purposes of federal income taxation, (n) will not omit to take or
cause to be taken, in timely manner, any action, which omission would cause the
interest on the Senes 2003 Bonds to become includible in gross income for
purposes of federal income taxation and (m) will, to the extent possible, comply
with any other requirements of federal tax law applicable to the Senes 2003
Bonds in order to preserve the exclusion from gross income for purposes of
federal income taxation of interest on such Senes 2003 Bonds
(o) The Mayor and City Recorder of the issuer are hereby authonzed
and directed to execute such certificates as shall be necessary to establish that the
Senes 2003 Bond is not an "arbitrage bond" within the meaning of Section 148 of
the Code and the regulations promulgated or proposed in relation thereto The
Issuer covenants and certifies to and for the benefit of the Registered Owners of
the Senes 2003 Bonds that no use will be made of the proceeds from the issue and
sale of the Senes 2003 Bonds, or any funds or accounts of the Issuer which may
be deemed to be gross proceeds of the Series 2003 Bonds, pursuant to Section 148
of the Code and applicable regulations (proposed or promulgated) which use, if it
had been reasonably expected on the date of issuance of the Senes 2003 Bonds,
would have caused the Senes 2003 Bonds to be classified as "arbitrage bonds"
within the meaning of Section 148 of the Code Pursnant to this covenant, the
Issuer obligates itself to comply throughout the term of the Senes 2003 Bonds
UT_DOCS_A #1139393 J2
19
with the requirements of Section 148 of the Code and the regulations proposed or
promulgated with respect thereto
Sechon 4 2 Covenant of State of Utah In accordance with Sechon 11-14-
17 5(3), Utah Code Annotated 1953, as amended, the State of Utah hereby pledges and
agrees with the owners of the Senes 2003 Bonds that it will not alter, impair or limit the
Revenues m a manner that reduces the amounts to be rebated to the Issuer which are
devoted or pledged herein until the Senes 2003 Bonds, together with applicable interest,
are fully met and discharged, provided, however, that notlung shall preclude such
alteration, impairment or limitahon if and when adequate provision shall be made by law
for the protection of the holders of the Senes 2003 Bonds
Sechon 4 3 Additional Indebtedness Senes 2003 Bonds No additional
indebtedness, bonds or notes of the Issuer payable on a pnonty supenor to the Senes
2003 Bonds out of the Revenues shall be created or incurred by the Issuer without the
pnor wntten consent of all holders of the Senes 2003 Bonds Furthermore, the Senes
2003 Bonds shall not be entitled to any pnonty one over the other in application of the
Revenues, regardless of the time or times of their issuance, it bemg the intention of the
Issuer that there shall be no pnonty among the Senes 2003 Bonds authorized to be issued
pursuant to this Bond Resoluhon regardless of the fact that they may be actually issued
and delivered at different times It is expressly agreed and covenanted that the Issuer will
not hereafter issue any bonds or obligations payable from the Revenues, or any part
thereof, or which constitutes a lien on such Revenues until all Senes 2003 Bonds have
been paid in full unless such additional bonds are issued in such manner that they are in
all respects subordinate to the Senes 2003 Bonds
The provisions of the foregoing paragraph are subject to the following two
exceptions
(1) The Senes 2003 Bonds or any part thereof may be refunded The
refunding bonds so issued shall enjoy alien on the Revenues on a panty with the
Senes 2003 Bonds except that if fewer than all of the Senes 2003 Bonds
outstanding at the time are so refunded, no refunding bonds shall bear interest at a
rate higher or mature at a date earlier than the corresponding Senes 2003 Bond
refunded thereby without the consent of the owners and holders of all of the
unrefunded Senes 2003 Bonds In all other respects, refunding bonds may be
secured m such manner and may be payable from such sources and be subject to
other terms and provisions that may be provided in the resolution authonzing their
issuance Refunding bonds may be exchanged with the consent of the
Bondholder for not less than a like pnncipal amount of the Senes 2003 Bonds
authonzed to be refunded, may be sold or may be exchanged in part or sold in
part If sold, the proceeds of the sale not required for the payment of expenses
shall be used to refund that portion of the Senes 2003 Bonds refunded
(2) Additional bonds may be issued on a panty with the Senes 2003
Bonds herein authonzed if all of the following conditions are met at the time of
the issuance of such additional bonds (herein referred to as "Panty Bonds")
UT_DOCS_A #1139393 v2 20
(i) The Issuer's Revenues in the Sinking Fund Year preceding
the year in which the Panty Bonds are to be issued were 125% of the
average Annual Debt Service on all of the Senes 2003 Bonds and Panty
Bonds then outstanding and the Panty Bonds so proposed to be issued
(n) All payments required by the this Bond Resolution to be
made into the Sinking Fund must have been made in full and there must be
in each reserve fund the full amount required by this Bond Resolution to
be accumulated therem
(m) The Panty Bonds must be payable as to pnncipal on
October 1 of each year in which pnncipal falls due
(iv) The proceedings authonzing such Panty Bonds must raise
the amount to which the reserve funds shall be accumulated to an amount
no less than the highest future Annual Debt Service of all Senes 2003
Bonds and Panty Bonds then outstandmg and the Panty Bonds so
proposed to be issued and must require the accumulation of such amount
in the reserve account to be accomplished within six (6) years after
delivery of such Panty Bonds
Section 4 4 Arbitrage Rebate Exemption for Small Issuer The Issuer hereby
certifies for the purpose of qualifying for the exception contained in Section 148(f)(4)(D)
of the Code from the requirement to rebate arbitrage earnings from investment of
proceeds of the Senes 2003 Bonds (the "Rebate Exemption") as follows
(a) The Senes 2003 Bonds are issued by the Issuer which has general
taxing powers
(b) Neither the Senes 2003 Bonds, nor any portion thereof is a pnvate
activity bond as defined in Section 141 of the Code ("Pnvate Activity Bond")
(c) Ninety-five percent (95%) or more of the net proceeds of the
Series 2003 Bonds are to be used for local govemment activities of the Issuer (or
of a governmental unit, the junsdiction of which is entirely witlun the junsdiction
of the Issuer)
(d) Neither the Issuer nor any aggregated issuer has issued or is
reasonably expected to issue any tax-exempt bonds in excess of $5,000,000 other
than Pnvate Activity Bonds (as those terms are used in Section 148(f)(4)(D) of
the Code) dunng calendar year 2003
For purposes of this Section 4 4, "aggregated issuer" means any entity which (a)
issues obligations on behalf of the Issuer, (b) denves its issuing authonty from the Issuer,
or (c) is subject to substantial control by the Issuer
UT_DOCS A #1139393 v2 21
The Issuer hereby represents that it has not created, does not intend to create, and
does not expect to benefit from any entity fonned or availed of to avoid the purposes of
Section 148(f)(4)(D)(I ) of the Code
Accordingly, the Issuer will qualify for the Rebate Exemption granted to small
governmental units under Section 148(f)(4)(D) of the Code, and the Issuer shall be
treated as meeting the requirements of Paragraphs (2) and (3) of Sechon 148(f) of the
Code relatmg to the required rebate of arbitrage earnings to the United States with respect
to the Senes 2003 Bonds
Section 4 5 Bank Designation For purposes of and in accordance with Section
265 of the Code, the Issuer has designated the Senes 2003 Bonds, as an issue qualifying
for the exception for certain qualified tax-exempt obligations to the rule denymg banks
and other financial institutions 100% of the deduction for interest expenses which is
allocable to tax-exempt interest The Issuer reasonably anticipates that the total amount
of tax-exempt obligations (other than obligations descnbed in Section 265(b)(3)(C)(n) of
the Code) which will be issued by the Issuer and by any aggregated issuer dunng
calendar year 2003 will not exceed $10,000,000 For purposes of this Section,
"aggregated issuer" means any entity which, (1) issues obligations on behalf of the Issuer,
(n) denves its issuing authonty from the Issuer, or (mt) is directly or indirectly controlled
by the Issuer within the meaning of Treasury Regulation Section 1 150-1(e) The Issuer
hereby represents that (a) it has not created and does not intend to create and does not
expect to benefit from any entity formed or availed of to avoid the purposes of Section
265(b)(3)(C) or (D) of the Code and (b) the total amount of obligations so designated by
the Issuer and all aggregated issuers for the calendar year 2003 does not exceed
$10,000,000
UT DOCS_A #1139393 v2
22
ARTICLE V
MISCELLANEOUS
Section 5 1 Default and Remedies Failure of the Issuer to perform any
covenant or requirement of the Issuer under this Bond Resolution within thirty (30) days
after having been notified m wnting by a Bondholder of such failure, shall constitute an
event of default hereunder and shall allow each Bondholder to take the following
enforcement remedies
(a) The Bondholder may require the Issuer to pay an interest penalty
equal to eighteen percent (18%) per annum of the outstanding pnncipal amount
on the Senes 2003 Bonds, said interest penalty to accrue from the date of the
notice of the Bondholder to the Issuer referenced heremabove until the default is
cured by the Issuer Said interest penalty shall be paid on each succeeding
payment date until the default is cured by the Issuer
(b) The Bondholder may appoint a trustee bank to act as a receiver of
the Revenues for purposes of applying said Revenues toward the Revenue
allocations required in Section 3 4 herein and in general, protecting and enforcing
each Bondholder's nghts thereto, m which case, all administrative costs of the
trustee bank in performing said function shall be paid by the Issuer
No remedy conferred herein is intended to be exclusive of any other remedy, but
each and every such remedy shall be cumulative and shall be in addition to any other
remedy given to each Bondholder hereunder or now or hereafter existing at law or in
equity or by statute No delay or omission to exercise any nght, power or remedy
accruing upon a default shall impair any such nght, power or remedy or shall be
construed to be a waiver of any default or acquiescence therein, and every such nght,
power or remedy may be exercised from time to time as may be deemed expedient
Section 5 2 Amendments to Bond Resolution Provisions of tlus Bond
Resolution shall constitute a contract between the Issuer and the Bondholder, and after
the issuance of the Senes 2003 Bonds, no change, vanation or alteration of any kind in
the provisions of this Bond Resolution shall be made in any manner until such time as all
of the Senes 2003 Bonds have been paid in full except as hereinafter provided
The Bondholders shall have the nght from time to time to consent to and approve
the adoption by the Issuer of resolutions modifying or amending any of the terms or
provisions contained in this Bond Resolution in the manner and to the extent set out
below
Whenever the Issuer shall propose to amend or modify this Bond Resolution
under the provisions of this section, it shall cause notice of the proposed amendment to be
sent to all Bondholders of all Senes 2003 Bonds then outstanding Such notice shall
bnefly set forth the nature of the proposed amendment and shall state that a copy of the
proposed amendatory resolution is on file in the office of the City Recorder for public
UT_DOCS_A #1139393 v2 23
inspection Should a Bondholder consent to the proposed amendment to this Bond
Resolution, it shall submit to the Issuer a wntten instrument which shall refer to the
proposed amendatory resolution descnbed in said notice and shall specifically consent to
and approve the adoption thereof Upon receipt of Bondholder consents representing at
least 75% of the pnnctpal of Senes 2003 Bonds outstanding, the governing body of the
Issuer may adopt said amendatory resolution, and it shall become effective, provided,
however, that nothing in this Section 5 2 shall permit or be construed as pennittmg (a) an
extension of the stated matunty or reduction in the pnnctpal amount of, or reduction in
the rate of or extension of the time of paying of interest, without the consent of the
Bondholder of such Series 2003 Bonds, or (b) a reduction in the amount or extension of
the time of any payment required by any Fund or account established hereunder without
the consent of the Bondholders of all the Senes 2003 Bonds which would be affected by
the action to be taken, or (c) a reduction in the aforesaid aggregate pnnctpal amount of
Senes 2003 Bonds, the Bondholders of which are required to consent to any such waiver
or a mandatory resolution, or (d) affect the nghts of the Bondholders of less than all
Senes 2003 Bonds then outstanding, without the consent of the Bondholders of all the
Senes 2003 Bonds at the time outstanding which would be affected by the action to be
taken
If a Bondholder at the hme of the adoption of such amendatory resolution shall
have consented to and approved the adoption thereof as herein provided, said Bondholder
shall not have any nght or interest to object to the adoption of such amendatory
resolution or to object to any of the terms or provision therein contained or to the
operation thereof or to enjoin or restrain the Issuer from taking any action pursuant to the
provisions thereof Any consent given by a Bondholder pursuant to the provisions of this
section shall be conclusive and binding upon all successive Bondholders
The fact and date of the execution of any instrument under the provisions of this
section may be proved by the certificate of any officer in any jurisdiction who by the laws
thereof is authonzed to take acknowledgments of deeds within such junsdiction, that the
person sigmng such instrument acknowledged before him the execution thereof, or may
be proved by an affidavit of a witness to such execution sworn to before such officer
Section 5 3 Maintenance of Proceedings A certified copy of this Bond
Resolution and every amendatory or supplemental ordinance or resolution shall be kept
on file m the office of the City Recorder where it shall be made available for inspection
by any Bondholder or lus agent Upon payment of the reasonable cost of preparing the
same, a certified copy of this Bond Resolution, any amendatory or supplemental
ordinance or resolution will be furnished to any Bondholder The Bondholders may, by
suit, action, mandamus, injunction or other proceedings, either at law or in equity,
enforce or compel performance of all duties and obligations required by this Bond
Resolution to be done or performed by the Issuer Nothing contained herein, however,
shall be construed as imposing on the Issuer any duty or obligation to levy any tax either
to pay the pnnctpal of or interest on the Senes 2003 Bonds authorized herein or to meet
any obligation contained herein concerning the Senes 2003 Bonds
UT_DOCS_A #1139393 v2 24
Section 5 4 Defeasance of the Series 2003 Bonds If the Issuer shall pay or
cause to be paid, or there shall be otherwise paid or provision for payment made to the
Registered Owner of the Senes 2003 Bonds for the payments due or to become due
thereon at the times and in the manner stipulated therem, then the first lien pledge of the
Revenues under this Bond Resolution and any and all estate, nght, title and interest in
and to any of the funds and accounts created hereunder (except moneys or securities held
by a Depository Bank for the payment of the Senes 2003 Bonds) shall be cancelled and
discharged
Any Senes 2003 Bond shall be deemed to be paid within the meaning of this
section when payment of the Senes 2003 Bonds (whether such due date be by reason of
matunty or upon prepayment or redemption as provided herein) shall have been made in
accordance with the terms thereof At such time as the Senes 2003 Bonds shall be
deemed to be paid hereunder, they shall no longer be secured by or entitled to the benefits
hereof (except with respect to the moneys and secunttes held by a Depository Bank for
the payment of the Senes 2003 Bonds)
Section 5 5 Sale of Senes 2003 Bonds Approved The sale of the Senes 2003
Bonds to the Community Impact Board, at par, is hereby ratified, confirmed and
approved
Section 5 6 Bondholders not Responsible The Bondholders shall not be
responsible for any liabilities incurred by the Issuer in the acquisition or construction of
the Project
Section 5 7 Notice of Senes 2003 Bonds to be Issued In accordance with the
provisions of the Utah Municipal Bond Act, Title II, Chapter 14, Utah Code Annotated,
1953, as amended, the Issuer has designated the Times Independent as the official
newspaper of the Issuer authonzed to publish legal notices for the Issuer, and in
accordance with Title 11, Chapter 14, Utah Code Annotated, 1953, as amended, the City
Recorder has caused a "Notice of Public Heanng and Bonds to be Issued" calling a
public hearing to receive input from the public with respect to the issuance of the Senes
2003 Bonds and providing notice of bonds to be issued to be published once a week for
two consecutive weeks to the Times Independent, a newspaper havmg general circulation
1n the Issuer with the first publication being not less than 14 days before the public
heanng and has caused a copy of this Bond Resolution to be kept on file 1n the office of
the City Recorder of the Issuer for public examination dunng regular business hours for
at least tlurty (30) days from and after the last publication thereof Such notice is hereby
reaffirmed and approved
Section 5 8 Additional Certificates, Documents, and Other Papers The
appropnate officials of the Issuer, and each of them, are hereby authonzed and directed to
execute and deliver for and on behalf of the Issuer any or all additional certificates,
documents, and other papers and to perform all other acts they may deem necessary or
appropnate in order to implement and carry out the matters authonzed in this Bond
Resolution and the documents authonzed and approved herein
UT DOCS_A #1139393 v2
25
Section 5 9 Severability If any section, paragraph, clause or provision of this
Bond Resolution shall be held to be invalid or unenforceable for any reason, the
invalidity or unenforceabillty of such sechon, paragraph, clause or provision shall not
affect any of the remaimng provisions of this Bond Resolution It is hereby declared by
the governing body of the Issuer that it is the intention of the Issuer by the adoption of
this Bond Resolution to comply in all respects with the provisions of the Utah Municipal
Bond Act, Title 11, Chapter 14, Utah Code Annotated, 1953, as amended
Section 5 10 Resolutions in Conflict All resolutions or parts thereof in conflict
with the provisions of this Bond Resolution are, to the extent of such conflict, hereby
repealed
Section 5 11 Effective Date of Resolution This Resolution shall take effect
immediately upon its approval and adoption
ATTEST
City Recorder
(SEAL)
UT_DOCS A #1139393 v2 26
(Here follows business not pertinent to the above )
Pursuant to motion duly made and seconded, the City Council adjourned
0
GbdX41L
Mayor
ATTEST
City Recorder
(SEAL)
UT_DOCS_A #1139393 J2 27
STATE OF UTAH
)
ss
COUNTY OF GRAND )
I, Rachel Ellison, the duly qualified and acting City Recorder of the City of Moab
City, Utah (the "Issuer"), do hereby certify according to the records of the Issuer's City
Council (the "Council") in my possession that the foregoing constitutes a true, correct
and complete copy of the minutes of the regular meeting of the Council held on
October 14, 2003 as it pertains to a resolution adopted by the Council at said meeting,
including the Resolution, as said minutes and Resolution are officially of record in my
possession
IN WITNESS WHEREOF, I have hereunto subscnbed my signature and
impressed hereon the official seal of the Issuer this October 14, 2003
City Recorder
(SEAL)
UT_DOCS A #1139393 v2 28
EXHIBIT A
CERTIFICATE OF COMPLIANCE WITH
OPEN MEETING LAW
I, Rachel Ellison, the undersigned City Recorder of City of Moab City, Grand
County, Utah (the "Issuer"), do hereby certify, according to the records of the Issuer in
my official possession, and upon my own knowledge and belief, that in accordance with
the requirements of Section 52-4-6(2), Utah Code Annotated 1953, as amended, I gave
not less than twenty-four (24) hours public notice of the agenda, date, time and place of
the October 14, 2003 public meeting held by the Issuer as follows
(a) By causing a Notice, to the form attached hereto as Schedule "1,"
to be posted at the principal offices of the Issuer on October 10 , 2003, at
least twenty-four (24) hours pnor to the convening of the meeting, said Notice
having continuously remained so posted and available for public inspection until
the completion of the meeting, and
(b) By causing a copy of such Notice, to the form attached hereto as
Schedule "1," to be delivered to the Times Independent on October 10 ,
2003, at least twenty-four (24) hours pnor to the convening of the meeting
IN WITNESS WHEREOF, I have hereunto subscribed my official signature this
October 14, 2003
„,,Q,,,,o
OVA na,.
City Recorder
(SEAL)
UT DOCS A #1139393 v2 A-1
City of Moab
115 Wan 200 South
Moab Utan 84532
Main Number (435) 258 5121
Fax slumber (435) 259-4135
SCHEDULE 1
NOTICE OF MEETING
City of Moab — Regular Counal Meeting
City Council Chambers 115 West 200 South
Tuesday October 14 2003 at 7 00 p m
GYTY O�
MOAB
i 30 p a PRE COUNCIL WORKSHOP
7 00 p an REGULAR CITY COUNCIL MEETING
Call to Order Pledge to Flag
SECTION 1 APPROVAL OF MINUTES
1 1 September 23 2003
SECTION 2 CITIZENS TO BE HEARD
SECTION 3 DEPARTMENTAL UPDATES
3 I Planning Department
3 2 Public Works Department
3 3 Police Department
SECTION 4 PUBLIC HEARING (Approximately 7 30 PM)
4 1 A Public Heanng on Proposed Resolution N23 2003
- A Resolution Authorizing the Issuance of Sales
Tax Revenue Bonds and Confirming the Sale of
Sales Tax Revenue Bonds (See Resolution for
complete language)
4 2 A Public Heanng on Proposed Ordinance N 2003 09
An Ordinance of The Governing Body of Moab
Annexing Property to the City of Moab Located at
Approximately 400 East and Highway 191
SECTION 5
NEW RUMNESS
5 1 Approval of Change Order N2 for the Moonstone
Gallen/ Project
5 2 Approval of Proposed Resolution N23 2003 - A
Resolution Authonzing the Issuance of Sales Tax
Revenue Bonds and Confirming the Sale of Sales
Tax Retenue Bonds (See Resolution for complete
language)
5 3 Approval of Proposed Resolution N24 2003 - A
Resolution Establishing the Street Performer Permit
Fee
5 4 Request for Allocatton of Funds for an Animal
Control Facility
SECTION i READING OF CORRESPONDENCE
SECTION 7 ADMINISTRATIVE REPORTS
SECTION II GOAL UPDATE
SECTION ! MAYOR AND COUNCIL REPORTS
SECTION 10 PAY THE BILLS AGAINST THE CITY OF MOAR
SECTION 11 EXECUTIVE SESSION
I I I Discussion Regarding the Lease Purchase or
Exchange of Real Property
SECTION 12 ADJOURNMENT
In aomallante oath Me Ametluns with DhaYdlties Act Individuals needing !pedal
accommedatiens during this meeting should notify the Recorder's Office at 115 West 200 Swill
Moab Utah 14532 sae phone (435) 251-5121 at lean three (3) wnrldng days toner to the meeting.
Check our welslle (or updates at swao maabab erg
UT_DOCS A 41139393 v2
A-2
SCHEDULE
PUBLIC HEARING MINUTES
MOAB CITY COUNCIL
REGULAR MEETING
October 14, 2003
The Moab City Council held their Regular Meeting on the above date in REGULAR MEETING &
the Council Chambers of Moab City Offices, located at 115 West 200 ATTENDANCE
South, Moab, Utah Mayor David L Sakrison called the Pre -Council
Workshop to order at 6 30 PM
Mayor Saknson called the Regular City Council Meeting to order at
7 00 PM and Citizen Dan Stenta led in the Pledge of Allegiance Also in
attendance were Councilmembers Gregg Stuck', Kyle Bailey, Rob
Sweeten, Kirsten Peterson and Jeffrey Davis, City Manager Donna
Metzler, City Recorder/Assistant City Manager Rachel Ellison, Public
Works Director Brent Williams, Planning and Community Developrnent
Director David Olsen, City Attorney Chris McAnany, City Treasurer
Jennie Ross and Police Chief Mike Navarre
Mayor Salcnson opened a Public Hearing on Proposed Resolution #23-
2003 — A Resolution Authorizing the Issuance of Sales Tax Revenue
Bonds, and Confirming the Sale of Sales Tax Revenue Bonds at 7 34
PM
Jason Burningham of Lewis, Young, Robertson & Burningham, and
Incorporated distnbuted a final pncing summary for the Series 2003
Sales Tax Revenue Bonds for the City Hall Project and bnefly described
the detailed sections of the document
No public comment was given
Mayor Sakrison closed the public heanng at 7 41 PM
October 14, 2003
UT DOCS A N1131393 J2 A-3
PUBLIC HEARING OPENED
PUBLIC HEARING CLOSED
EXHIBIT B
FORM OF STATE BONDS
UNITED STATES OF AMERICA
STATE OF UTAH
COUNTY OF GRAND
CITY OF MOAB CITY
SALES TAX REVENUE BOND
SERIES 2003
$2,050,000
THIS BOND HAS BEEN DESIGNATED BY THE ISSUER FOR PURPOSES OF THE
EXCEPTION CONTAINED IN SECTION 265(b)(3) OF THE INTERNAL REVENUE
CODE OF 1986, AS AMENDED, RELATING TO THE DEDUCTIBILITY OF A
FINANCIAL INSTITUTION'S INTEREST EXPENSE ALLOCABLE TO TAX-
EXEMPT INTEREST
The City of Moab, Grand County, Utah (the "Issuer"), a political subdtvtsion and
body politic of the State of Utah, acknowledges itself indebted and for value received
hereby promises to pay, but solely m the manner and from the revenues and sources
hereinafter provided, to the registered owner hereof of registered assigns, the pnncipal
amount of $2,050,000, together with interest accruing on the unpaid pnncipal balance
from October 1, 2004, at the rate of two and one-half percent (2 1/2% per annum
(calculated on the basis of a year of 360 days compnsed of twelve 30-day months),
payable annually on October 1 of each year, beginning October 1, 2005 Pnncipal
together with accrued but unpaid interest, shall be payable in registered installments on
October 1 of each of the years as set forth in the following Payment Schedule
PAYMENT SCHEDULE
October 1 Pnncipal Matunng October I Pnncipal Matunng
2005 $60,000 2018 $83,000
2006 62,000 2019 85,000
2007 63,000 2020 87,000
2008 65,000 2021 89,000
2009 66,000 2022 91,000
2010 68,000 2023 94,000
2011 70,000 2024 96,000
2012 71,000 2025 98,000
2013 73,000 2026 100,000
2014 75,000 2027 103,000
2015 77,000 2028 106,000
2016 79,000 2029 108,000
2017 81,000
UT DOCS A #11311393 v2 B-1
Except as provided in the next succeeding paragraph, pnncipal payments, whether
at matunty or by redemption, shall be payable upon surrender of this Bond at the offices
of the Paying Agent, or of any successor Paying Agent Payments of interest shall be
made to the Registered Owner thereof and shall be paid by check or draft mailed to the
Registered Owner thereof at his address as it appears on the registration books of the
Issuer maintained by the Registrar, or at such other address as is furnished to the
Registrar in wnting by such Registered Owner
As long as the State of Utah Permanent Community Impact Fund Board (the
"Commumty Impact Board") is the registered holder of this Bond, installment payments
of pnncipal and interest shall be made by check or draft marled to the Community Impact
Board as the registered holder at the address shown on the registration books maintained
by the Registrar
If any installment payment of Bond pnncipal or interest is not paid when due and
payable, the Issuer shall pay interest on the delinquent installment at the rate of eighteen
percent (18%) per annum from said due date until paid All payments shall be made in
any corn or currency which on the date of payment is legal tender for the payment of
debts due the United States of Amenca All payments shall be applied first to interest, if
any, and then to pnncipal
This Bond is payable solely from a special fund designated "City of Moab, Grand
County, Utah Sales Tax Revenue Bond Sinking Fund", into which fund and into a reserve
therefor, to the extent necessary to assure prompt payment of this Bond, shall be pledged
100% of the Issuer's Revenues (as defined herein), all as more fully descnbed and
provided in the Bond Resolution
This Bond is issued pursuant to (i) a parameters resolution adopted on September
23, 2003, and the bond resolution adopted on October 14, 2003 (collectively, the "Bond
Resolution"), and (n) the Utah Municipal Bond Act, Title 11, Chapter 14, Utah Code
Annotated, 1953, as amended, for the purpose of financing the renovation of an existing
building to serve as the new city hall and other related improvements and paying costs of
issuance of the Bonds This Bond is a special limited obligation of the Issuer payable
solely from the Issuer's Local Sales and Use Taxes received by the Issuer pursuant to
Title 59, Chapter 12, Part 2, Utah Code Annotated 1953, as amended (the "Revenues")
and does not constitute an indebtedness of the Issuer within the meaning of any state
constitutional or statutory limitation In no event shall this Bond be deemed or construed
to be a general obligation indebtedness of the issuer or payable from any funds of the
Issuer other than the Issuer's Revenues
As provided in the Bond Resolution, bonds, notes and other obligations may be
issued from time to time in one or more senes in vanous pnncipal amounts, may mature
at different times, may bear interest at different rates and may otherwise vary as provided
irnthe Bond Resolution, and the aggregate pnncipal amount of such bonds, notes and
other obligations which may be issued is not limited This Bond and all other bonds,
notes and other obligations issued and to be issued under the Bond Resolution on a panty
with this Bond are and will be equally and ratably secured by the pledge and covenants
UT DOCS_A #1139393 v2 B-2
made therein, except as otherwise expressly provided or permitted in or pursuant to the
Bond Resolution
The issuance of this Bond shall not, directly, indirectly or contmgently, obligate
the Issuer or any agency, instrumentality or political subdivision thereof to levy any form
of ad valorem taxation therefor or to make any appropriation for its payment
This Bond is subject to prepayment and redemption at any time, m whole or in
part (if in part, in integral multiples of $1,000), at the election of the Issuer in inverse
order of the due date of the pnncipal installments hereof and by lot selected by the Issuer
if less than all Bonds of a particular due date are to be redeemed, upon notice given as
hereinafter set forth, at a redemption pnce equal to the pnncipal amount to be so prepaid
Notice of redemption shall be mailed by the Issuer, postage prepaid, not less than
thirty (30) days pnor to the date fixed for prepayment, to the registered owner of this
Bond addressed to such owner at its address appeanng on the registration books
maintained by the Issuer
Subject to the provisions of the Bond Resolution, the Bonds are issuable in fully
registered form, without coupons, in denomination equal to the pnncipal amount of the
bonds or, upon exchange, in the denomination of $1,000 and any integral multiple
thereof
The Issuer covenants and agrees that so long as this Bond remains outstanding, it
will cause to be collected and accounted for sufficient Revenues as will at all times be
sufficient to pay promptly the pnncipal of and interest on this Bond and the issue of
which it forms a part and to make all payments required to be made into the Bond Fund,
and to carry out all the requirements of the Bond Resolution
IN ACCORDANCE WITH SECTION 11-14-17 5(3), UTAH CODE
ANNOTATED 1953, AS AMENDED, THE STATE OF UTAH HEREBY PLEDGES
AND AGREES WITH THE HOLDERS OF THE BONDS THAT IT WILL NOT
ALTER, IMPAIR OR LIMIT THE EXCISE TAXES IN A MANNER THAT REDUCES
THE AMOUNTS TO BE REBATED TO THE ISSUER WHICH ARE DEVOTED OR
PLEDGED AS AUTHORIZED IN SECTION 11-14-17 5, UTAH CODE ANNOTATED
1953, AS AMENDED, UNTIL THE BONDS, TOGETHER WITH APPLICABLE
INTEREST THEREON, ARE FULLY MET AND DISCHARGED, PROVIDED,
HOWEVER, THAT NOTHING SHALL PRECLUDE SUCH ALTERATION,
IMPAIRMENT OR LIMITATION IF AND WHEN ADEQUATE PROVISION SHALL
BE MADE BY LAW FOR PROTECTION OF THE HOLDERS OF THE BONDS
To the extent and in the respects permitted by the Bond Resolution, the Bond
Resolution may be modified or amended by action on behalf of the Issuer taken in the
manner and subject to the conditions and exceptions prescnbed in the Bond Resolution
The holder or owner of this Bond shall have no nght to enforce the provisions of the
Bond Resolution or to institute action to enforce the pledge or covenants made therein or
to take any action with respect to an event of default under the Bond Resolution or to
UT DOCS A #1139393 v2 B-3
institute, appear m, or defend any suit or other proceeding with respect thereto, except as
provided in the Bond Resolution
This Bond shall be registered in the name of the initial purchaser and any
subsequent purchasers in an appropnate book in the office of the City Recorder of the
Issuer, who shall be the Registrar This Bond is transferable only by notation upon said
book by the registered owner hereof in person or by his attorney duly authonzed in
wntmg, by the surrender of this Bond, together with a wntten instrument of transfer
satisfactory to the Issuer, duly executed by the registered owner or his attorney duly
authonzed in wnting, thereupon, this Bond shall be delivered to and registered in the
name of the transferee
It is hereby declared that all acts, conditions and things required to exist, happen
and be performed precedent to and in the issuance of this Bond have existed, have
happened and have been performed in regular and due time, form and manner as required
by law, that the amount of this Bond does not exceed any limitation prescnbed by the
Constitution or statutes of the State of Utah, that the Issuer's Revenues have been
pledged and that an amount therefrom will be set aside into a special fund by the Issuer
sufficient for the prompt payment of this Bond and all bonds issued on a panty with this
Bond, if any, and that said Revenues are not pledged, hypothecated or anticipated in any
way other than by the issue of this Bond and all bonds issued on a panty with this Bond,
if any
IN TESTIMONY WHEREOF, the Issuer has caused this Bond to be signed by its
Mayor and counterstgned by its City Recorder under the corporate seal of said Issuer this
, 2003
/s/ (Do Not Sign)
Mayor
Countersigned
/s/ (Do Not Sum)
City Recorder
(SEAL)
UT_DOCS A X1139393 Vt B-4
REGISTRATION CERTIFICATE
(No wnting to be placed herein except by
the Bond Registrar)
Date of
Registration Name of Registered Owner Signature of Bond Registrar
State of Utah Permanent
Community Impact Fund Board
UT DOGS A NJ 139393 J2 B-5
EXHIBIT "C"
FORM OF EXCHANGE BOND
UNITED STATES OF AMERICA
STATE OF UTAH
COUNTY OF GRAND
CITY OF MOAB CITY
SALES TAX REVENUE BONDS, SERIES 2003
THIS BOND HAS BEEN DESIGNATED BY THE ISSUER FOR PURPOSES OF THE
EXCEPTION CONTAINED IN SECTION 265(b)(3) OF THE INTERNAL REVENUE
CODE OF 1986, AS AMENDED, RELATING TO THE DEDUCTIBILITY OF A
FINANCIAL INSTITUTION'S INTEREST EXPENSE ALLOCABLE TO TAX-
EXEMPT INTEREST
INTEREST RATE MATURITY DATE ISSUE DATE
Registered Owner
Pnncipal Amount Dollars
City of Moab City, Grand County, Utah (the "Issuer"), a political subdivision and
body politic of the State of Utah, acknowledges itself indebted and for value received
hereby promises to pay, but solely in the manner and from the revenues and sources
hereinafter provided, to the Registered Owner identified above, or registered assigns, on
the Matunty Date specified above, upon presentation and surrender thereof, the Principal
Amount identified above Interest at the Interest Rate specified above on the Pnncipal
Amount hereof (calculated on the basis of a year of 360 days compnsed of twelve 30-day
months) shall be payable by check or draft mailed by the City Recorder of the Issuer (the
"Paying Agent") to the Registered Owner hereof beginning October 1, 200_ and on each
October 1 thereafter until this Bond is paid in full Pnncipal and redemption pnce of this
Bond shall be payable upon presentation of this Bond to the Paying Agent, or its
successor as such paying agent, for payment at matunty
If this Bond or any installment of interest hereon is not paid when due and
payable, the Issuer shall pay interest on the unpaid amount at the rate of eighteen percent
(18%) per annum from the due date thereof until patd in full
This Bond is one of an authonzed issue of bonds of like date, term and effect
except as to matunty, in the aggregate principal amount of
Dollars ($ ), issued in exchange for the conversion of the Issuer's Sales Tax
UT_DOCS A #1139393 d2
Revenue Bond, Senes 2003, in the total pnncipal sum of $2,050,000, authonzed by the
Bond Resolution adopted on October 14, 2003, and parameters resolution adopted
September 23, 2003 (the "Parameters Resolution") This Bond and the issue of Bonds of
which it is a part is issued pursuant to (i) the Bond Resolution and Parameters Resolution,
and (11) the Utah Mumcipal Bond Act, Title 11, Chapter 14, Utah Code Annotated, 1953,
as amended, for the purpose of financing the renovation of an existing buildmg to serve
as the new city hall and related improvements and costs of issuance of the Bonds This
Bond is a special limited obligation of the Issuer payable solely from the Issuer's Local
Sales and Use Taxes received by the Issuer pursuant to Title 59, Chapter 12, Part 2, Utah
Code Annotated 1953, as amended (the "Revenues") and does not constitute an
indebtedness of the Issuer within the meaning of any state conshtutional or statutory
limitation In no event shall this Bond be deemed or construed to be a general obligation
indebtedness of the Issuer or payable from any funds of the Issuer other than the Issuer's
Revenues
As provided m the Bond Resolution, bonds, notes and other obligations may be
issued from time to tune in one or more senes in various pnncipal amounts, may mature
at different times, may bear interest at different rates and may otherwise vary as provided
in the Bond Resoluhon, and the aggregate pnncipal amount of such bonds, notes and
other obligations which may be issued is not limited This Bond and all other bonds,
notes and other obligations issued and to be issued under the Bond Resolution on a panty
with this Bond are and will be equally and ratably secured by the pledge and covenants
made therem, except as otherwise expressly provided or permitted in or pursuant to the
Bond Resolution
The issuance of this Bond shall not, directly, indirectly or contingently, obligate
the Issuer or any agency, instrumentality or political subdivision thereof to levy any form
of ad valorem taxation therefor or to make any appropnation for its payment
The Bonds are subject to redemption pnor to matunty at any time, in whole or in
part (if in part, m integral multiples of $1,000), at the election of the Issuer in inverse
order of matunty and by lot within each matunty if less than the full amount is redeemed,
upon not less than thirty (30) days' nor more than forty-five (45) days' prior notice, at a
redemption pnce equal to 100% of the pnncipal amount of each Bond to be redeemed
Notice of redemption shall be mailed by the Issuer, postage prepaid, to the registered
owners of said Bonds addressed to such owners at their address appeanng on the
registration books maintained by the Issuer
Subject to the provisions of the Bond Resolution, the Senes 2003 Bonds (as
defined in the Bond Resolution) are issuable in fully registered form, without coupons, in
denomination equal to the pnncipal amount of the bonds or, upon exchange, in the
denomination of $1,000 or any integral multiple thereof
The Issuer covenants and agrees that so long as this Bond remains outstanding, it
will cause to be collected and accounted for sufficient Revenues as defined in the Bond
Resolution as will at all times be sufficient to pay promptly the pnncipal of and interest
on this Bond and the issue of which it forms a part and to make all payments required to
UT_DOCS A #1139393 J2
be made into the Bond Fund, and to cant' out all the requirements of the Bond
Resolution
IN ACCORDANCE WITH SECTION 11-14-17 5(3), UTAH CODE
ANNOTATED 1953, AS AMENDED, THE STATE OF UTAH HEREBY PLEDGES
AND AGREES WITH THE HOLDERS OF THE BONDS THAT IT WILL NOT
ALTER, IMPAIR OR LIMIT THE EXCISE TAXES IN A MANNER THAT REDUCES
THE AMOUNTS TO BE REBATED TO THE ISSUER WHICH ARE DEVOTED OR
PLEDGED AS AUTHORIZED IN SECTION 11-14-17 5, UTAH CODE ANNOTATED
1953, AS AMENDED, UNTIL THE BONDS, TOGETHER WITH APPLICABLE
INTEREST THEREON, ARE FULLY MET AND DISCHARGED, PROVIDED,
HOWEVER, THAT NOTHING SHALL PRECLUDE SUCH ALTERATION,
IMPAIRMENT OR LIMITATION IF AND WHEN ADEQUATE PROVISION SHALL
BE MADE BY LAW FOR PROTECTION OF THE HOLDERS OF THE BONDS
To the extent and in the respects permitted by the Bond Resolution, the Bond
Resolution may be modified or amended by action on behalf of the Issuer taken in the
manner and subject to the conditions and exceptions prescnbed in the Bond Resolution
The Registered Owner of this Bond shall have no nght to enforce the provisions of the
Bond Resolution or to institute action to enforce the pledge or covenants made therein or
to take any action with respect to an event of default under the Bond Resolution or to
institute, appear in, or defend any suit or other proceeding with respect thereto, except as
provided in the Bond Resolution
This Bond 1s transferable by the registered holder hereof in person or by his
attorney duly authonzed 1n writing at the office of the City Recorder (the "Registrar") in
the City of Moab, Utah, but only in the manner, subject to the limitations and upon
payment of the charges provided in the Bond Resolution and upon surrender and
cancellation of this Bond Upon such transfer a new registered Bond or Bonds of the
same senes and the same matunty and of authonzed denomination or denominations for
the same aggregate pnncipal amount will be issued to the transferee in exchange therefor
It is hereby certified, recited and declared that all conditions, acts and things
essential to the validity of this Bond and the issue of which 1t fors a part do exist, have
happened and have been done, and that every requirement of law affecting the issue
hereof has been duly complied with, that this Bond and the issue of which 1t fors a part
does not exceed any limitation prescribed by the Constitution and laws of the State of
Utah, that one hundred percent (100%) of the Issuer's Revenues, have been pledged and
will be set aside into said special fund by the Issuer to be used for the payment of this
Bond and the Issue of which 1t fors a part and all bonds issued on a panty with this
Bond, if any, and that said Revenues are not pledged, hypothecated or anticipated in any
way other than by the issue of Senes 2003 Bonds of which this Bond 1s one and all bonds
issued on a panty with this Bond, if any
UT_DOCS A #1139393 v2
IN WITNESS WHEREOF, the Issuer has caused this Bond to be signed by its
Mayor and countersigned by its City Recorder with the seal of said Issuer affixed, all as
of , 2003
/s/ Do Not Sign)
Mayor
Countersigned
/s/ (Do Not Sign)
City Recorder
(SEAL)
UT DOCS_A #1139393 v2
ASSIGNMENT
FOR VALUE RECEIVED, , the undersigned,
hereby sells, assigns and transfers unto
(Tax Identification or Social
Security No ) the within Bond and all nghts thereunder and hereby
irrevocably constitutes and appoints attorney to transfer the
within Bond on the books kept for registration thereof, with full power of substitution in
the premises
DATED
NOTICE The signature to this assignment
must correspond with the name as it appears
on the face of this Bond in every particular,
without alteration or enlargement or any
change whatever
Signature Guaranteed
THE SIGNATURE(S) SHOULD BE
GUARANTEED BY AN ELIGIBLE
GUARANTOR INSTITUTION (BANKS,
STOCKBROKERS, SAVINGS AND
LOAN ASSOCIATIONS AND CREDIT
UNIONS WITH MEMBERSHIP IN AN
APPROVED SIGNATURE GUARANTEE
MEDALLION PROGRAM), PURSUANT
TO S E C RULE 17Ad-15
UT_DOCS_A N1139393 v2