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HomeMy Public PortalAboutORD13474 w GIL119t:)RE & BELL, P.C. Draft-Ntivembcr 1492062 Document No. 105796\bond6rd3 ORDINANC UF C'1'1'?'U!+J!?1�1+EItS(.)N, �ti!lSSOURI PASSED NOVEL IBE,R 18, 2002 AUTHORIZING $5,555,000 SENVE RAGE SYSTEi1I REVENUE 13ONDS SERII�',S 2002 A: ti K J ORDINANCE NO. 1�f�l j� INDEX Title....................................................................................................................................1 Recitals.................................................................................................................... ..........I AIZ'I'IC'I,I? I DEFINITIONS Section 101. Definitions oI W)rds and'Fams .......................................................................................2 ARTICLE 11 AUTHORIZATION OF BONDS Section 201. Authol'I%ation of BQnds.....................................................................................................7 Section202, Description of Bonds........................................................................................................7 Section 203. Designation or Paying Agent............................................................................................5 Section 204. Method and Place of Payment of Bond s............................................................:........I.....8 Section 205. Registration,'I'ransfer and 1"whanvc of Bond s.................................................................9 Section 206. Execution,Authentication and Delivery of Bonds..........................................................10 Section 207, Mutilated, Destroyed, Lost and Stolen Bonds................................................................10 Section 205. Cancellation and Destruction ol'Bonds [.Ikon Payment..................................................11 Section 209. Prelimincuy and final Orficial Staten1cnt .......................................................................11 Section 210. Book-f:ntry Bonds, SCCIU'itics Depository......................................................................11 Section 211. Authorization of Continuing Disclosure Agrccnient ......................................................12 AR'I'IC1,E 111 REDEMPTION OF BONDS Section 301. Optional Redemption of Bonds ......................................................................................13 Section 302. Selection of Bonds to Be Redecnled...............................................................................13 Section 303. Notice and liflcct ofCall for Redemption ......................................................................14 AR'1'IC'IJ�; IV SEC'URI TY FOR BONDS Section 401. Security for Bonds..........................................................................................................1 S CREATION AND RATIFICATION OF FUNDS AND ACCOUNTS; DEPOSIT AND APPLICATION OF FOND PRO( EEDS Section 501. Establishment of Funds anc.1 Arannits.............'•,.••,.•.,•.,.".,...•..•,.'1.•.....,......,.,.,........,.....15 Section _502. Deposit of Band 1'rocQ:eds................................ .16 Section 503. Application of Moneys in they Project Fund....................................................................16 Y r Alt'1'1CLE VI APPLICATION OF IMVENUES Section601, Rcvcrnre Fund .................................................................................................................17 Section 602. Application of Moneys in I un(k and Acc(,unts..............................................................17 Section 603. Trans('er of bonds to Paying Agent ..................... ...........................................................20 Section 604. Payments Doc on Days other than Business Days..........................................................20 Section 605. Noilpi-csctitment of Bond s...............................................................................................20 Section 606. Application of Moncys in the Rchatc Fund....................................................................21 ARTICLE' V11 DEPOSIT AND INVESTMENT OF i\IONEYS Section 701. Deposit and Invextnumt of Moneys ................................................................................21 ARTICLE VIII GI:NFRAL COVEAANTS AND PROVISIONS Section 801. l;f'ticicnt and L?conontical Opera tion...............................................................................22 Section802, Rate Covcnant......................................... .......................................................................22 Section 803. Reasonable Charges 1,61-all 5erviccs...............................................................................22 Section 804, Corporate I?xistencc........................................................................................................22 Section 805. Rcstiriction; on Mortgage or Sal(, of System.................................................................. 23 Section 806. Insurance................. .23 Section 507. Books, Records and Accounts--.-.....--1 1.-...——I......—...............................................23 Section505. Annual Budgct................................................................................................................24 Section809. Annual Audit...................................................................................................................24 Section810. Right of Inspcction..........................................................................................................24 Section 811. PCrfl1►'matice of Duties and C ovenants............................................................................24 Section 812, Parity Bond Certification................................................................................................24 Section813. Tax Covenants.................................................................................................................25 A10](T.-F IN ADDITIONAL BONDS AND OBLIGATIONS Section 901. Senior Licit Bonds .................................................................................... .....................26 Section 902. Parity Bonds and Othcr Ohligations...............................................................................26 Section 903, Junior Lion Bonds and Olhcr Obligation s.......................................................................27 Section 904. Relitnding Bonds ............................................................................................................27 ARTICLE X DEFAULT AN'D REMEDIES Scction 1001. Acccleralion of'Maturity Upon )C,""t..........................................................................25 Section 1002. Other ltentc(lies........... ..................... .....................,.......................................................'8 Section 1003. Limitation on Rights of Bondowners. 28 Section 1004, Renlc(lie` Cumulative.....................................................................................................28 Section 1005. No Obligation to Levy T axcs..........................................................................................29 -ii- r Section 1006. Provisions Related to the Bond Insurer.... ...................................................................29 ARTICLE Xf I)EFEASANCE, Section1101. Defeasance........... . ......:................................ ............................ ............:...............29 . ARTICLE XII 1NIISCI LL,ANEOUS PROVISIONS Section1201, Amendment....................................................................................................................30 Section 1201 Notices, Consents and Other Instruments by I3ondowners.............................................31 Section1203, Reporting Requirements.................................................................................................32 Section1 204. Further Authority............................................................................................................32 Section1205. Sevcrability.....................................................................................................................32 Section1206. Governing Law ...............................................................................................................33 Section 1207. I:fl'cctivc Date............................................. ...................... ........... .................... ...33 Exhibit A-- Dorm of Bond Exhibit 13 -• Dorm of Letter of Representation 1?xilibit C - 1701.111 ol'COntilllling Disclosure Agreement -rll- BILL NO. 2002-105 SPONSOR: Vincent and Groner ORDINANCE NO../—.,' 4 1l AN ORDINANCE AUTHORIZING ' HF, ISSUANCE OF $5,555,0(1(1 PRINCIRM, AMOUNT OF SENVU?RAGE SYSTEM REVEMIE 13ONDS, SEIIIEN 2002, OF'1'111? CITY OF JhliFERSON, MISSOURI; PRESCRIBING 'fill": FOR11 AND DETAILS OF SAIL) BONDS AND TIIE COVENANTS AND AGRI?EMEINTS 7'O PROVIDE FOR THE, PAYMENT AND SECURITY 'I'llF,RF.OF; AND AUTI1011[ZING CERTAIN ACTIONS AN 1)DOCUM E,NTS AND PRESCRI III NG OTI IER MATTERS RI;L,A'1'1NG 'I'11I;R1,'I'O. WIIEREAS, the City ol'.Icllcrson, Missouri (tic "City"), is a home rule charter city and political subdivision t1111y organized and existing Underthe laws ol'thC SUItC 01'IV1 iSS0lIl'i,ant(pursuant to C'haptcr 250, RSMo (tile "Act"), now owns and operatCS a rcvCnuc producing scweragC Systcnl SCIA iug the City and its inhabitants and Others within its Service area (tile "System," as hereinafter!!lore I'ully defined); and WIIh;REAS,the City has no honds or other obligations outstanding payable from the Net Revenues (as hereinafter more fully delinc(l) of the Systcnl save ;uuf except the followin g: Series of Bonds Dated Anmuut Amount -- Issur_;1 (hltstandill Sewerage Sy;tcm Improvement and RClin ding 111101r0I S24,875,000 S24,875,000 RCVCIIUe Ronds (State Revolving Lunt) Program), Scrics 200113 W1II:REAS the 'il is authorized antler the provisions of•thc .pct to iSSUC ant( sell rCVCnue bonds C Y I Ibr the purpose ofproviding I•llntlS fill'Iltlr'CIMS►rlg. Constructing, CslCnding anti imprOving the Systcnl upon Obtaining the required voter approval and provided that the principal ofand intcrCSI on such rC -CnuC honds Shall he payable solely from the rCVCnucS tlCrivctl from the operation o1*tile SySICnl; and WHERI?AS, pursuant to such aulhurily, a spCCial bond CICCtion \Vas duly held in the Cily on November 7, 2000, on the question whClhCr to issuC the scwCr:lgc SySICnl rcVCnuC honds in the principal amount of$52,000,000 Cor the purpoSC of•improving ant( CxtCntling the City'; sewerage system, and it was Ibund and determined that a simple m:>.jority ol'thc qualified electors ol•Ihc City voting on the question had voted in 61\'01' ol'thC isSUancC of Said rCVCnuC honds for the purp(.)SC adol'CSaid, the Vote on Said quCstiOn having been 14,406 voles for said question to 2,657 votes against said quCStion: and 'WHE'REAS, 524,043,250 of the bonds So aUlhonzcd have hcretolore been issued, and the City proposes to iSSUC an additional 55.555,000 ofthC honds so authorized to providC funds liar said purpose(the "Project"), and WHEREAS, plans and specifications fin•the Project and an estimatc ofthc cost thcrcol•have been prepared anti made by a C'onSUltanl (,IS 11CI•Cina11erdeflned)to the City and the sanlc,uC hereby accepted ant( approved and are on file in the office ol*lhe City C'Icrk; ant( WIIERI?AS, it is hereby fi)und and determined that it is necessary and advisable and in the hest interest ol'the City and of Its inhabitants that revenue hollds he issued and secured ill the firrnl and manner as hereinafter provided to provide Funds for the Project; NOW$ 'I'llERI?hORE, BI? IT ENACTED BY '1'IIh, COUNCIL OF CITY 0F.IEFFEIRSON, MISSOURI,AS [FOLLOWS: ARTICLE DEFINITION'S Suction 101. Definitions of Words and Tvi'llls. hi addition to words 'Ind terms defined clscwhcl'C herein, the lollowinh capitalimd words and term" ati used 111 this Or(Inl;ulcC shall have the billowing meanings: "ACCOUnt:lllt" 111cans ;Ill ill(Irpcn(Ient CCrtllicd puhlie arcount;ult or frill of certllied public; accountants. "Act" means Chapter 250, RsNlo. "Arbitrage Instructions" means the Arhin-at;C In."Irucholl`, atlached as V\hil►it A to the City's Arbitrage C'ertilicate relating; to the Bonds, as the sane IIIJ I)e dll)cn(Irll or Sill plClucnted Ill aCCOrduncC with the provisions 111crcol'. "Aven,ge Annual Debt Service" means the ;1VCral1.- of the 1>ebt SCINICC RC(IllirenlCnts as COI1ll)UICd f01•the then currCnt ',Ill(( :111 RIWIC IiSCIII `cars. "Bond Cbtlntiel" means 01111me & Bell, 1'.I '., Hansa~ ('11y. NIISSOurl. or any other attorney or firm ofattorneys with a nationally recut lizCd standint, in the Held of, n11.o11cipal holed financing, selected by the City. "Bond Insurance Police" means the nlullieipal hoed ne\\ 1"r,ue insurance poli(-y issued by the 13011d lnsur(:r tIWt InIces pay II lei l (1l•priIIcip)II ill'an(I II)ICVC>,1 O1) 1h(• Iiurnls as provi(1Cd therein. "Bond Insurer" means Financial (41111-anty Insurance Company, a New York stock insurance C011lpally, orally successor divreto. "I 101111 P.1)'I11CIlt IMIC" 111CQIls ally dale Oil 1\'111C11 prllwilml of Or IlllCl('St (111 ally BOIId IS payable at the n1a1urity IhCreo('or un :lny Interest Payrrlent Date. "Boud Register" means the hoot::; fin• the rcg,lstr:ltion, translCl 1111(1 exchange of Bonds kept at the oil ice of the Paying Agent. "Boll(lowiler", "Ms-Iler" of "RCgiSICI'Cd 0ll'lll'1'" \Vh('ll IISCd 1l'1111 IC'Spect to ally Holld Ricans the Person in w)losC nano such Bond is registered on the Bond Register. 'Bonds" lllcans the Sewerage System RCvenov Bonds, Series 2002, ol'thc City, in the aggregate principal amotnit ol'S5,555,000, -authorized and issued pursuant to this Ord IMIlice. "Business Day" means ;l day, (111111' 111,111 ;► Saturday, Sunday o►• holiday, on which the Paying Agent is Scheduled in the normal course elf, its operations to be open to the public fin• Conduct of its banking operations. "Cede & Co." means Cede & Co., as nonlince name of'lilt Depository 'Trust Company, New York, New York, and any successor nonlinec with respect to the Bonds. "City" means the City ol'.Icl'Icrson, Missouri, and any successors or assigns, "Code" mauls the internal Reveuuc Code of 1980, as;upended, and the applicable regulations of the"Treasury Department proposal or promulgated thereunder. 'olislilt:ult" means an illdepelldc11t engineer or engineering 111111 halving a favorable reputation I'm shill and experience in the construction, lin;ulcing and operation ol'pllhlic utilities and the preparation of'rllanagcment studies and li11ancial li:asibllity studies in curnlcctloll therewith, sciccle(I by the City tin• the purpose of carrying out the duties Imposed on the Consult(ult by this Ordinance. "Debt Service Account" mans the Ikht Service Account tin Sewerage Sysicin Revenue Bonds, Series 2002, rrcated by Section 501 hereof. "Debt Service Regnirements" nlcans the aggreg;ltc principal paynxCnts (inciu(ling sche(luled mandatory redemption re(luircnlents) and interest payments on all Systcttl Revenue Bonds tier the period of lime tin• which calculated; provided, however, that I'm' purposes of calculating such amount, principal and interest shall he excluded 1i'0111 the lielerlllillati011 of Debt SCrvicc RecluirCII 11 s to the extent that such principal or interest is payahlc From amounts dcposiled in trust, escrowed or otherwise set aside file the payment thcrcol' with the Paying Agent or other commercial bank or trust company located in the State ol'Missuuri and having full trust powers;. "Debt Service ReserN•e Account" means the Dcht Service RcSel-ve ;Account for Sewerage System Revl'IIIIC Bonds, Sl'1'll's 2002, created by Section 501 hereof. "Debt Service Reserve Requirement" means the suns of S-11.1.:115.00. "Defaulted Interest" nu.;lns interest oll ;Illy Bond which is pay;lhle hill not paid un any Interest Payment Date. "Defeasalice Obligations" nlc;nls l.lnitcd State, (iovcrnlllcnt t)hllgations that arc not Subject to redemption in advance of their nulturity dates or other uhligations approved Ill wrilin}, by the Bond Insurer. "Depreciation and Replacement Accounl" mean; the account by that name ratified and confirmed by Section 501 hereof. "Depreciation and Replacement Accu lilt)1ation Re(Iuireruenl" means the suns of $500,000, including 111110(Irlls raltlil'ed to he accumulated in the Depreciation and Replaeenurlt Account pursuant to the ordinance of the City authorizing all other outstanding issues ol'Systenl Revenue Bonds. "h:xlleuses" means all wasollable and necessary expenses of operation, lllaintellallce ;111(1 repair of the System and keeping! the System u1 good repair and working order (other th;u1 interest paid oil System Revenue 13011ds 111(1 depreci;ltioll and amortization Charges during the period of detcrn»natiorl), n determined in accordance with generally aeceplcd 11ccou11ting principles, Including without limiting the generality of the Imcgoing, current maintenance charges, expenses ol• reasunahlc upkeep and repairs, Salaries, wages, costs of tnaltcr'lalls and supplies, Paying AgC111 lees Mid CXI)CINCS. atlllllall iltldik, pCr'I(►(he Consultant's reports, properly allocated share of charges Im insurance, life cost ol• purchased water, gas and power, if any, obligations (other than for borrowed money or (irr rents payable 1111dur capital leases) incurred in the ot•dinary course of'business, liabilities incurred by Cildorsc•nlent li►r•collection or deposit ol• checks or(!rafts received in the ordinary course orbusiness, shod-tern► indebledness Inclined and payable within a particular fiscal year, other obligations or Indehtc(lncss Incurred lirr the purpose of- leasing (pursuant to a true or operating ICIISC) cquiplltent, 11MLINs, i11vc1110ry or nlhcr perso11a1 property, and all other expenses incident to the operation of the Systc11l, but shall (',\Cluck all gen(:ral administrative expenses ol'tile City not related to the operattlo11 ol•tilt, Syste11l. "Insurance Consultant" nlcatts an i11dlvIdwil or limn srlccied bY the City and acceplahle to the Bond Insurer' qualihed to survey risks and to rccnrllrnc•rnl insurance eo►cra)re fur C11tincs cng;Igc(I in operations like those ol'thc SYSIC111 and havulg ;I f'i%orable replllatloll fur skull and cxpericnce in tuaking such surveys and rcco111111e11dations. "Interest I'avutenl Hate" ►scans the Sulictl NhItIritY ofan ulstal1111eIIt of interest 4111 arly (fond. ",1laturity" when reed \%'Ilf1 respect h► a11v HMO ►11e;111; the (tat(• 4111 c�hrch the principal ol•such 110110 hec•(►I11C5 (Itic '111(1 pa}'able '1s therein aril heron pr41N Ided, MkIl w' al Ihr `dated tilalu►ity 11I(•reof ur by call 161.IedeulpUun or ()there ise. Net ItOTHIles" 111c•a11s ;III Rc•V(•nue•, ;III I:�pcu.e Op(raliun and Mainterance ;lccuunt 1111•'111 ; t(u• ;IeVunul Iw th;Il Hann• ralll'u•d ;Intl ronl•umed by Section .501 hcleof. "Ordir►ance" 111cans till-, ( ) drt1c111ee as Irunl tilde to Iunc• ;une11dcd in accord;utrc with the terrlls hereof. "Outsta ildilig", when used \%1111 reli"lc11cc to B011d,1, Ire;uts, T1 ol' :111 particular dal(: of deteril III latloll, all fiollds therctuli►rc IS'Aled ;111(1 dellccrcd helcundrr, eWcp' the 16110wi11)l liunds: (a) Bon(Is lhcictufurc ea11relled b�' the Aj!,,c111 or drhvercd to the I'a ing Agent Im-cancellatlow (h) Bonds dct-mc•d to In: paid ill ;ICrordmice w Ilh tllc provislons of Section 1101 hcrcol`, and (e) Bonds ill exchan)r,e 1'or or m lieu of«hich othe► Bonds have bowl legistcred '1nO do l i vcre(I I k•rer 11dC1 "Parity Bonds" means the I'►evlously ls�.Iwd Parity Itonck x11(1 any addllio11al bl►II(IS or other obligations hereafter issued or uleurred pursuant to Section 902 hereof and standing uu a pnrily and equalitywith the Bonds with respect to the payment ol, prineipa! and interest From the Net Revenues of the System. "Parity Ordivanees" memIS the Previously Issued 1'arit • Ordin•I11ce urt(1 the ()rdinance or ordinances under which any additional Parity Bonds are hcrc;llter issued pursuant to Section 902 hercol•, _.:I. "I'at•ticil►sllIs" means those financial institutions tin• whorl the Sectintles I)cpository cflccts hook-entry transkn-s and pledges (1l'see tit itICS deposited with the SccIIriIit's I)eposilory, as such listing! of Participants exists at tile time of such rctcrcncc. "I'llying Agent" mc;uls U.S. Bank, N.A., tit. Louts, Missortrl,and any successors and assigns. "Permitted Investulents" means any of the ('ollowing secilritics and obligations, if' and to the extent till' same are at the tin : legal for investment of d.c moneys held in the funds and accounts listed ill Section 501 hereol'; (a) t Initi'd ~tall:, c iM crttulcut ( ►hli►;;Inuns; (h) ce•tlfl •;Ifc,, ol* dcposit or tittle delx,",lls, whcthcr IWe ,'01lahlc lit nunncg�utiahle, issued by ;lily bank or trust company mpaniied ladder tilt- law" ol'the I)ailed !Males or ;Illy slate, provided that such CCflllieatCS of dcpoSit or tittle deposits sh;lll he either (I) continuously and 11111y inslu�c(I by the Fcdcr;ll I)cposit Insurance ( 'orporaUoll, or (2) continuously ;Ind holly secllrcd by United States ( iovernmeut ()hligahons WhICh s11;111 have' ;I market V•1111e, rx.'hlslVe of iccrllcd interest, at all tittles at lead c(liml to the principal tunounl of Such ccltlficah-s of dc•hosil or time (Icdx,sits; and (c) any other securities or ulvesttnc'n►s Iha► are hm 1,111 for the investment of moneys held in such funds or acroutttS under the IawS ol,the ~late cot'1'lls,oln 1. "Person" ttncans any tl;ltural pCI-Soli, corlunatlorl, parittcr:,lnll, lirnl, )milt vcttitltc, ;lssocl hon, joint-Stock colllp;llly, trust, ll1llllcoI'plll;lte(1 (Irg!;11111;111(lll. OF 1!oV(•r11111('II( of ally a)"clley or political subdivision Ihercol'or other 1)ub1ic hod',', "Pre'iousiy Issued Parity IloIIIIS" means the uu(Standin), tiystenl I111provVillcnl and hefnnding Revenue 110MIS (~late RL'V0IVIIIo4 fund i'rnitraln}, SCrle,, 200111, des,'rihcd Ill the Iteeltals to this ()rdillanec. "Previously IssIIvd Parity ()I'(Iii1;111Ce" nlc: II', tllc ()IdillancC No. I ;?Q' of lit- ( 'toy pa�,sc(I (m )clohcr a 1, 2001, roller which tic Illeviollsiy Issued Parity Ilonds Julve been Ismiud. "Project" me'll]", in111rovul), and cxtctt(1tt)g� tilt ('liy's ,OreraVc r,ystcttl. "Project Fund" nne;uls the fund by th;lt name crcatcd by Sectioll 501 hereof. "I'll rchase Price" 111ran.s the principal amount (11' tilt- Bonds le,,�, a discount of $5,475,209.55, together with accrued interest thercoll to the' date of(Icltccry and payrncnt. "I'll reh;tser" n)cuns II'S, Bancorp Piper .I;IlVray Inc., K.,lllswl City, Nhs:, ouri, the original purchaser ol'the Bonds, "Itehalc !unto" means the fund by that nano referred to in Section 501 hereof. "Record dale" for the interest payable on ;Illy Interest Payttucnt I bite means the 15th day (whether or not a Business I)ay) of the calendar rlu)nth next preceolil g Such Intcresl I';lynlcul OlIto:. -5- Redemption Date" when used wllh respect Io :Illy Itond to he re(lecrlled nle:tlls Illy date Fixed for such redemption pursuant to the terms of'this Ordinance. "Redemption III-ice" when used with respect to ally liolld to be redecnut Invalls the price at which such frond is to ile redeemed pursuant to the ll't'IIiS of this Ordinance, inuludinf; file applicable redemption premium, if any, but cxciu(iinf, insG111nlcnts of Interest whose Stated M.11111-rty is on or hdore the Redemption Date. "Replacement Bonds" means lton(is isSlle(I to the hencficial owners of the Bonds in accordance with Section 210(1►) hctrol'. "Representation better" shall mean the Rcilrescnl:llron I.ellcr from the City to lilt. Securities i)epositor,y with respect (o the Bonds, substanlialiy III Iluc 1;01,111 attadwd to this (1r(hnanc(, :I1,; Exhibit it. "Revenue Fund" me:ills the Punt; by lhal mane ratified and cuni'Irnled by Sectioll 501 hereof. "Revenues" means all income and revenues derlved from the uwncrshlp and 0pclation of, the System, including investment and rental income, nct proceeds fro(n busincs!; interruption insurance, sales tax rcvemlcs which have been annur(lly appropriated by the 01}1 or which are limited solely to file payment of improvements to or expenses of [Ile System, and arty anultlnts deposited ill escrow in connection wilh rile acquisition, collstmelloll, willo(Ir11119, rcnovallol) an(I c(fuippinp 01'System lbcilitiCs to be applied (hiring the period ()I'deICI'lllillatlon to pay interest on Sysk•Ill kCVenuc linlldS, hilt exClu(ling a11y ilr'(►IItS 01' InssCS oil lilt' early extitlgtllshnlcnt of(febt or on the sale or other disposition, not in the ordinary course of )usillk"S, of invt.stnx•nt!, M. fixed n'capital a„e15, eeurlh(. I p( tilt ry nu•an , nutlally. I b1, I ell( It I Ira. t 1100 ,illy. New York, New York, and its successors and assigns. "Special Record Date” un;In; the (talc Fixed by the Paving Agent pursmnt to Section 20.1 hcrcol' for the payment ol'I let auited 1111cre..►. "Stated 1III(II IN", when used willl rc,pecl to :111y liolld 0'. :illy instaihncnt 01' intcresl Ihrrcon 111earls the (late specifle(I ill such Bond and Ihls (4dirlalwe as the fl;(.,d date on which the principal ol'such Bond or such installment of,nllrrrsl is title anti payahlc- "Surphls ,Account" dear; Ole account by that ImInc ratilit-d anti Coll 111- u•d by Section 501 Itercol'. "System" Illuans the entire m:wCmIx plaint anti s'ystcln owned and operated by tilt• City filr the collection, treatment and disposal ol'scwaf c, to scr<<e lilt' nccds of the City and its inh:lhitants (uui others, including all :lppurfcn(nlccs and fnciiitles connected therL-With 01, 1'eh'It1nf; ticrclo, tof;ethcr with all extensions, improvements. addilions and ellhu e u•nls fhercto hcrcahel. made or acquired by the City. "System Revenue Bonds" means collectively the konds and :Ili other rcvCmle bollds or other obligations which are payahlc 0111 of, or SCClll'ed by an ;merest in, lilt- Net Revenues of the System. "Ifilited Stales Government ent Obligatlolls" Illcilw> boluk, notes, certificates (11 IndChICdlICSS, treasury bills or other securities constituting direct obligations of, or obi the principal of 'Intl interest on which are fully and unctm(Iilionally f,uaranteed as to full and timely payment by, the United States of America, inclu(lillg evidences of a direct ownership interest in future interest or principal -0- payments cite obligations issued or guaranteed by the I nitcd States of America (including the interest component ofobligations ofthc Resolution Funding (:'orporalion). "Valuation Date" means the first business clay ol'cach fiscal year of the Systen►. ARTICLE Il AU'I'IIOI IZA'I'ION OF BONDS Section 201. Authorization of Itonds. 'There is hcrcby autho►•izcd and cfircetecl to be issued a series of bonds of the City, dcstgnatcd "Sewerage Systcm Revenue Bonds, Scrics 2002," in the principal unuxu►t ol'$5,555,000 (the "Botuts") 161. the purpose of providing, Irtrrds li►r'the Project. Section 202. Description of Bonds. 'I he lionds shall consist ol*Fully registered bonds without coupons, numbered li-om 1 ul►ward, in denominations of $5,11110 m any integral multiple thereof. The Bonds, as originally issued or issued upon tr;rnsfcr, exchange or suhstitutiorr, shall he substantially in the Ibrm set firth in Exhibit A attached hereto, and shall be Suhjccl to regisUation, transfer and exchange as provided in Section 205 hereof. 'I he Bonds shall he data! November 1, 2002, shall become duc in the amounts on the Stated N'tat►.a•ities (subicet to redemption prior to Statcd A4alurity as provided in Article Ill hereof), and shall hear interest at file rates pl'r' annun►, as follows: SERIAL BONDS Staled rllalurih, Principal Annual Ralle November 1 ,!mount of Interest 2003 S 1 85,000 3.000'„ 2004 190,000 3.0 00'!,;, 2005 200,000 :3.0011",i, 2006 200,000 2.3 50"„ 2007 2011,000 2.650"f, 2008 225,000 2.90111 rb 2009 220,000 3.f 001,1,, 2010 225,000 3,350';(, 2011 235,000 3 500'%, 2012 240,000 3.600"lo 2013 250,000 3.750'%, 2014 260,000 3.875"4, 2015 270,000 4.I00%, 2016 250,000 4.200%, 2017 295,000 4.300%, 1019 300,000 4,4001 „ 2019 325,000 41.500'%, 2020 335,000 4.65111X, 2021 350,(10(1 4,750';, 2022 770,000 4.750(X, file Bonds shall hear interest a1 the above-specified rates (computed on the hasis of a 360-clay ycttr of twelve 30-flay months) from the dated date thereof of from the most recent 1111CICS1 Pa�'mcnt Date -7- to which interest hats horn paid or dolly provided fur, payable semi;lnntlrllly on i,'hy I and Nowillbet I ill Inch year, heginning on May I, 2003. Section 203. I)esigilatiun of Paying Agent. IJ.S. Itank, N.A., tit. Louis, Missouri, is hereby designatctl as the City's Paying Agent for (lie payment of principal of and interest on the Bonds and as bond registrar with respect to the registration, lransiQlr ;lnti exchange of Bonds (herein called the "Paying Agent"), "I']]e ('fly will at all tilixs maintain a hivill)t Agrrlt nlechilf; the yualificatlons herein described for the prl'lin-rnance ol,file duties IICrcurl(ICr. The ('ity reserves the right to appoint a Successor Paying Agent by (1) filing witil the Paving Agent then Ilciforming silch function a certified Cnpy of the proceeding's giving notice of the termination of Stich Paying Alvelil and appolllilllt! a Sticcussor, and (2) causing noticc Ili'tile appointment of'tile Successor Paying Agent to be pivot by I'ust Class nlilll to each Bortdowilcr. fhc Paying Agent may resign upon giving written notice b"; Furst class 111:111 to the ( 'ity aid the Iiorlclowilers not less than 00 days prior to the date such resignalion is to take Cflirl. No resignalton or removal of•thc Paying Agent shall become effective 1111111 a successor hN bCCil appointed ;uld has acccptCd IhC duties of the Paying Agent. The Mond Insurer shall be furnished with \Vliuen nnllc•e of the rCSlgrlatlon or rcnu►Val of the Paying Agent and the appointment of,iily successor thereto. livery Paying Agent nppoiltCd herCll11dC1' shad at all tones be if Coll llllet'Cial bulking association M'Corporation or trust colllpaily located in the State of iMissnurl organised and i1 good Standing alld doing IMSlreati under the laws of the I Inited States of, America or of the SIatc of NlissomI and sub ect to supervision or Cxanlinatioll bV federal or stale rcgtil;ltory lift hnrlty. 0 fhc Paving Agent shall be paid ils Ices aild cxpcnscs Inr ttti scryiccs ill conllection herewith, which fceS anti expenSeS s]]ail he paid as other I'.xpcnSCS are pawl. Scetion 2041. Method and Plitce of Payment fit' Roods.. 1 he principal nr Redemption I'rice of and interest on the Bonds shall be payable in any ruin or currcncy of 111.• t)nerd tilates nI';\nlet'ica that, on the respeclive dates ol'puynit•nl iherCOl', IS Icgal ICrldcr for the paynicni ol'pIINIC and private debts. The principal or Rccicrl)plion 1'111_c OI'Carh hood shall be pald at Millurlty fly check or draft to the PCI'SOIl in whose mole such Bond Is Wl,�I lerc(1 on the Bond ltc,;lstcr at t]]c N•Ialtirity lhercOf, upon presentation and surrender of such Bond at ihC• principal corporate trill oi,l'lcc of,the Paying Agcni. The Inter;t payable on each Bond On any 11110 -St I'aynit.-nl 1)alC S]]a11 be paid to the Rcgislercd Chvncr of such 13011d aS shown on the Bond Reltlsier at the close of business on the Record Date fin' such interest by check or draft mailed by the Paying Agent In such Registered (.)�yrer 11 the address shown on the 13011d Register OI', in the Ca.;e of'an interest payment to any RCglSICITd ()wncr ol',;500.000 or more in aggrcgatC pt'illClpa) 11111011111 of hoods, by electronic tralnsiur to such Rrgistcrcd t)walrt' neon written notice signal by such Registered Owner and g,ivcll to the Payllip,, Agent not less than 15 clays prior to the Record Date IUt'StlCll i[IM-eSl, COmtaining the electronic tnitlslcr iustructiotls meluding the hailk (which shall he in the continental Hililed States), address, ABA routing nuriber and aiccoulil number to which such Registered Owner wishes to 11a1'C such translir diI'CCtCd. Notwithstanding the li►rcgoing provisions of this `section, ant` DefallItcd Interest \vitll respect to any Bond shall Cease to be payable to the kgjslCred Owner of silt;]] liond on t]]e RICVanl RCCOrd Date and shall he payable to the Registered Owner 1n whose naultt, such Bond is registered at l]]r close of business on the Special Record I)atC li►r the payment 01' SCteh 1)Cla1,11lcd hlterrst, wlltCll Special Record 1),IIC shall be I'i.\Cd as hcreinakcr specified in this paragraph. The city shall notify the Paying Agent in _ti_ writing of' the amount of* DuClaulled interest proposed to he lurid cm each Bond and the date Of the proposed payment (whicll dote shall he at least 30 days after receipt ol'such notice by the Paying Agent) and shall deposit with file Paying Agent at the time Of' such notice an amount of money equal to the nggro:gate amount proposed to he paid in respect of such I)ClaullCd IIiICre51 or shall make arrangements satislhctory to the Paying Agent tin- such deposit prior to the slate of the proposed payment. following receipt of such finals the Paying Agent shall fix a Special Record I)atc Cur the payment of such Defaulted Interest which shall be not more than 15 nor less than 10 days prior to the date of the proposed p;►ymcnt. The Paying Agent shall promptly notify the City of such Sl)(cial RCCOrd I)ate and, in the namc and at the expense ol'the City, shall cause notice of the proposed payment ol'such I h•I•aultcd Interest and the Spcei;Il Record Date therefor to be mailed, by first class mail, postage prcpaid, to cacti Registered Owner of a Bond entitled to such notice at the address ol'such Regisferc(I Mncr as it appears on the Hottd Register not less than 10 days prior to such SpCCial Record Date. The Paying Agent shall keep a record Of payment of prnlClpal surd RCdet;►ption PI'iCC ol' and interest on all Bonds and shall upon the written rcClucst of 111C Cify ,1I ;rllnnally 1,01-ward a Copy or summary 01'such records to the City. Section 205. Registration, Trantifer and I?xCh;nlgt' nl' Bonds. The Otv Covenants that, as long, as ally of'the Bo11ds remain On(Sla11d111t!, it \VIII Cause the Bund Re�!ISICI to he kept at the office of' the Paying Agent fin• the regisfralinn, U•anslcr and cxchangC of Bonds as heleil'i pMVILICd. I:r.rch Bond when issued shall he registered in the namc ol'the owner thcreofon tl►e Bond Register, Bonds Inay be translirred and exchanged only oil file Bend RCgrstCr as 1VOVILIM Ill this SCCtian. l 1port surrender of any Bond at tlhc principal pay ntcnt of1•iCC 01'the I'a�ing, Ae,Cnt, Ill(! Paying Agent shall transfer or exchange such Bond tin• a new Bond or Bonds in ;111y aufhorir.ed delunninalion Of the sarrle Stated 11;111.1rity and in the same aggregate principal arrumunf as dlc- Itond that was presented lire translcr or exchange, Bonds presented lire transfer or Cxchange shall he accompanied by a Wriltcn instrument or i list runu•nts of t•;mslcr or authoriraton for exchange. Ill a I01-11.1 and With guarantCC of slgnalurc salisl,Iclory to the Paying Agent, duly CxCCUtCd by the Rrg1�.1Cm(I (hVIK-1- thCrcof or by the RC ISM.Cd (hvilcr's duly authorized agent. In all Cases in which the prlcilege ol' tanslcrrurg ur Cxchangnlg Bundy i; excrCl:;ed, the Paying Age111 shall authcnUcnle and dClic•C;' BOnd5 in accordance wIlh the provisions of this Ordinance. The City Shall pay the fins and expense; of'the Paying Agerrt for the rCgislration, tanslcr and cxChangC Of' 13011(Is provided for by this Ordinance and the cost of printing n rcatiomrblC supply of registered bond blanks. Any additional costs or Ices that might he incurred in lire secon(lary nuu'kct, other 111,111 Ices of the Paying Agent, are the responsibility (11'tile Registered Owners of the Bonds. In the event any Registered Owner Bills to provide a correct taxpayer identification number lO the Paying Agent, file Paying Agent may make a charge against such Registered OwnCr s1.I1116Cnt to pay any j1,0vcrruncn1al ehargC rcCluired to be lurid as a result of such li►ilurC. In compliance with Section 3400 of the Cole, such ainount may be df.ductcd by the Paying Agent from amounts otherwise payable to such Registered Owner hereunder or under the Bonds. The City and the Paying Agent shall not be required (a) to register the transfer or exchange of any Bond 111cr notice Cailing such Bond or portion thereof'lie• I'Cdcmplion has hCCIl given or (111611" the period of Iifleen days next preceding the first mailing of Such notice of redemption, or (h) to register the lransfel' or exchange of any Bond during a period beginning at the opening of husiuess on the day after receiving written notice fi•or11 the ('ily of its intent to pay Ih:laullCd 1111cresl and ending at the close of husiness on the date fixed tin'the payment of Dul"aullcd Interest pursuant to Section 201 hereof. -9- Hic City and the Paying Agent may dectll and Ural the Person ill whose n;ullc any Bolld is registered in the Bond RegistCr;IS the ahsolutC owner Of'tiurh Bond, whether such Bond is overdue or not, fin• the purpose of receiving payment of, or on account of', the llrinCipal of RCdetllpli0n PI'ICC of and interest on said Bond and fill- 1111 Other purposes. All payments SO made to any such Registered Owner or upon the Registered Owner's order shall be valid and Cflcctlr;li to satisfy and discharge the liability upon such Bond to the extent of the sunl or sums tits paid, and rn•illlrr the ('ity nor the Paying Agent shall be of ected by any notice to the contrary. At reasonahic tJrlleS WId undcr reasonahlr rCgulationS cstahliSlICd hV the hlying Agent, the Bond Register may be inspected and copied by the hegistcred Owners of 10 Or ►nOrC in principal amount of the Bonds OICII Outstandinf, or any (Irsignaled r•eprescntailve of Such Registered ()tuners whOSC au11101-ity is evidenced to the satisillction of the Paying Agent. Section 206. ENCCIllion, ,luthcntication and Deliven. of Bond~. Fach ul, the Bonds, 111Cludulg any Bonds issued in Cxc11a11ge Or aS suhSlitution li,r tbt• Bonds initially delivered, shall he Signed by the manual or filesinlile signature ofthe Nlayor, attested by the manual Or faCsi►rldc signature of the City ('leek, and shall have the official seal of the City affixed thereto or imprinted thereon. In case any ot1iecr whose signature appears on any Bond ceases to he such of,icer helilrr the delivery ol'such Bond, such signature shall nevertheless he valid and SufIiCICnt for all purp0scs, aS if suCll person bad remained in ol*licc until delivery. Any Bond may he sifnletl by SUCK Ill 'St)IlS who al the ❑Chia) tulle Of tllC execution of Such Bond shall be the proper uf7iecrS to Mgll stle11 Bon,l ❑1!110111:11 at the date Of SIICll 13011d Such pCrSons play not 11;IVC hCCII such OI'fiecrS. ,Flic Mayor and ('it) Clerk are herchy atltllorved anti directed to prcl•,are and execute the Bonds ® as herein specified, and when duly Cxrcuted, to deliver the Bonds 1.0 111e Paying AlLmit lily aulhenticati0n. The BondS shall ha\e endorSCd 111CIVO11 a certificate of allthe•nlIcallon substantially in the form set 1i,1.111 in Exhibit A attached hereto, which shall be nl;unlally Cxeeuled by 1111 a111101icc•cl sif;nalory of lhC hlyillg Af lit, but it shall 1101. be necessary that the Sanlc Signatory sif�,n the CClrtifi ,1.(C Of;IUthCI10C anon ()If Al Of IhC Bonds 111,11. may hC iSSiICd ll(TCUnder at any one little. NO Bond Shall he entitled 1.0 any SCCUrity Or IMICflt under this Ordina11CC 01- hr �Nlld Or 01)11111:001-y! I01- any purpO:;e unlCS,, 1111.1 until such eertilicatc 01'authrntiC,1111 ,11 Ilan hCCII dilly Cxccutrd by 111e I'ayinf; Ap.cnl. SUCK CxeCUtCd CCI'611 atC of'aul11rntic❑lion upon any Bond shall be conClusivC cv►dcncC that Such Bond has peen duly authrnl►C IICd and delivCI-Cd undcr this 01- hli,MCC. Upon aut11rntlCatioll, the Paying Agent shall tlClivcr the HOMIS 10 or upon the OrclCI' of t11C Pnl'ChaSCI o1't11C BOMIS 111)011 payment Of't11e Purchase Pr'ICC 10 the ('ity. Section 207. Itilutilated, Destroyed, Los( and Stolen Bonds. 11' (a) any mutilated Bond is Surlcndered tO the Paying Agent or the Paying, Agent receives evidence tO its satisfaction of, the destruction, loss or theft 0f'any Bond, and (b) thcre is delivcred to 111e City and the Plying Agent Such security or indemnity as play he required by the Paying Agent, then, in the ahscncc of'notice to the City and the Paying Agent that such Bond haS bCCll acquired by a hOMI fidC purchasCr. the City s11a11 CXCCUtc and the Paying Agent shall autllclltic lte and deliver, in exe111ulgC for Or in lieu of any such mutilated, destroyed, lost or stolen Bond, a new Bond of the same `dated [Maturity and of like tenor mid principal anlount. If ally such Illutil,ItCd, (1estroyed, lost or stolen Bond has hCCOI11C 01• is al)OUI to bCCOI1IC duC atld payable, the Paying Agent, in its discretion 111ay pay Such Bond instead OI del►vernig a new Bond, Upon the issuance of any new Bond under Illk SCCli011, the City 0l- the Paying Agent may require the payment by the Registered (honer of"I Stun Sufliciellt t0 cover any tax 0l- other gover11111clital Charge -10- that relay he imposed ill relation thereto and ally other expenses (including Ilit Iccs and expenses elf the Paying Agent) connected thcicwith. ?very new Bond issued pursuant to Ibis SCC0011 Shall ConslitlltC ;l I'Clllacemenl ell' the prior obligation of'the Cily, and shall be entitled to all the benefits ol•Ihls OrdinanCC equally and ratably with all other Outstanding Bonds. Section 208. ('ancellatiou and Destruction of Bonds upon Payment. All Bonds dial have been paid o►• r•Cdccnlcd or that otherwise have been Surrendered to the 1';lyurg, Agent, either at or before iYiaturity, shall be cancelled by the Paying Agent inurn•diatcly upon the payment, redemption and Sw•reudCr thcrcol' to the Paying Agent and subsequently desUoyed on accorolalic•e with the customary practices of' tile Paying Agent. '('lie Paying Agent shall cxeculc a certificate in duplicate describing the Bonds so cancelled and shall file an executed counterpart ol'sueh eertifrcaty with the City. Section 209. Preliminary and Final Official Statenlel►t. The I'rchminary 01'1icial Slatcnient dated November 8, 2002, is hereby ratified and approved, and the final Oliicial Statement is hereby authorized and app►•0VCd by supplementing, ;unending and complctnlg the Preliminary Official Statement, with such changes and additions thereto as are necessary to cooli1•111 to and dcscrihc the transaction. 'file Mayor of the C:'ity is hereby authorized to execute the final Official Statement aS SO SupplcnlCnted, amended and completed, and the use and public distr•iblitioll of Idle (Klicial Statement by the Purchaser in connection with the rcoflcring of the Bonds is hereby authorized. 'I he proper ol'licials of the City are hereby authorized to CxecutC and dCliVCI• a CCrtilicate pertaining, to such 011'ieial StatenlCnt as I1resC►•ihcd therein, dated as ol'the dale ol'paynlcnt liar and delivery ol'thc Bonds. For the purpose ol'Cnahltng the Purchaser to comply wilh the requirements of Rule 15c2-12(h)(1) of* the Securities and I:xch;uigC Commission, the ( 'Ity hereby deem', the 1111'ornrltioll regarding the City contained in the Preliminary Official Statement to he "final" as 01'its date, except din• the onikSion ol'SLICII inlilrnlation as is permitted by RuIC I5e2-12(h)( I ), and the appluprinte oltieers of 1110 City are hereby authorized, il'rrqucslCd, to provide the I'urchnscr a ICtICr ur Certrlie;ltu11 to Such c11ed and to ;II C such other 1IC1i0nS or CxCCUIC SL1Ch other clocunicnts as such ()(freer~ Ill their l'C&Wmahlc .lodgment dUCIll necessary to enable the Purchaser to comply with the reclunCHICilt of sorb Rllil'. The City agrees to proviLIC to the PLIrChaSCI' withIll Seven I)IISHlesti days of the date of,the sale of (lie Bonds Sufficient copies of* the 1111,11 01'icial Statement to cnablC the I'Inchaser lu Comply with the t•CquircniCnts ol• RuiC 15c2-12(b)(4) of the SCCIII'itICS and FXCIIM11W ('onloliS,;iom ;uul with the r•cquircinents of Rule (3-32 0l'lhC Municipal SCCUritiCS Rulcmaking Board. Section 210. Book-Entry Bonds; Securities Depository. (a) `fire Bonds shall initially be registered to ('CdC & ('o., the 11 0 111 1 11CC lilr the SCCLIr•iliCS Depository, and no bcnc(icial o\Vncr \VIII rcccivC CCrtilicates rCprescntinp; lhcir respective interests in the Bonds, except in the event the Paying Agent issues RCplaCerllent BOMIS as providCd in SLII)SCChQ11 (b) hCreol. It is anticipated that during the M-Ill of lhC Bonds, the Securities Depository will make book- entry transfers atllong Its Participants and receive and t•ansmil payment of principal of', pl'Cllillllll, If any, and interesl oil, file Bonds lei the Participants until and unless the Paying Agent aulhCnticatCS and delivers Replacement Bo11ds Ill till.' bCIlef vial owners as described in subsection (h). (b) (I) if the City determines (A) that the SM11-111CS Depository is unablC to properly discharge its responsibilities, or (13) that the Securities UCpository is no IongCr qualified 10 act aS a securities depository and registered clearing agency uno.ICI' the SCCIII-ItICS and lixchange Act of' 1934, as -II- amended, or (C) that the continuation ofa hook-entry system to the CxClusiotl of,Iny BOMIS beillg iSSUed to any Owner other than Cede & Co. is no longer in the hest interests of the bcncficial owlias of* the Bonds, or (2) if the Paying Agent receives written notice front Participants having interests 111 not less than 501A of the Bonds Outstanding, is shown oil the records of the SCCLII'itiCS Depository(,111(1 certified to such effect by the SCCIII-itieS Uclwsitory), that the continuation ofa hook-entry system to the exclusion of any Bonds being issued to ',Illy Owrler other than Cede & Co. is no longer in the hest interests of the beneficial owners ol'thc Bonds, then the Paying Agent shall notify the t WIM's of such dCICr-nlinali011 or such notice and of the availability of-certi(icatcs to Owners rc(iuCSting the same, and the Paying Agent shall register in the name of and authenticate and deliver Replacement Bonds to the beneficial owners Or their nominees in principal amounts representing the interest of each, making site)) ad•justnlcnts as it play find necessary or appr'opr'iate as to accrued interest and previous calls ror re dcnllp(ron, provided, that in the case ofa determination under (1)(A) or (1)(13) o('this subsection (h), the City, with the consent of the Paying Afmil, may select a successor securities depository in accordance with Section 210(c) hereof to effect hook-entry transfers. ill such event, all references to the Securities Depository herein shall relate to the period of time when at least one Boned is registered in the nanlC of the SCClll'iliCS Dcpositot•y or its IlllllllllCe, t.I11011 lhC ItiSIIaIICe (1f Ilc'plaCC'tllellt Bonds, all rc:fi rcnces herein to ohhgations imposed upon or to be performed by the Securities i:)Cpnsitoly shall be IICCI11Cd to be ilnlposed upon and pet lornled by the Paying Agent, to the extent applicable with respect to sue)) Repl ICCrncnt Bonds. 11' the SCClll•ilieS Depository resigns and the City, the Paying Agent or Owners arc uriahlC to locate a (Itialifted successor of the Sectu-itics Depository in accordance with Section 2111(,) hercol', then the Paying Agent shall authenticate and cause delivery of Replaccnient Bonds to Owners, as provided herein. The Paying Agent may rely on infiornlalion from the Securities Depository and its Participants as to the names and addresses of and principal amounts held by tilt beneficial owners o('tile Bolids. "I he cost oil prirltirig, registration, authentication and delivery of RCplacelllcnl Bonds shall he paid for by the (,"ity. S � i ' I) pos or y i esl gt s is unable to property discharge its (c) In the event the cc,lllUc. cl It � � t,n , { { y b responsibilities, or is no longer qualified to act !IS a Sccuritics depository and registered clearing agency under the Securities and i".xchange Act of I934, as anlendC(l, (lie 011 ' nlay appoint a successor Sccuritics Depository provided the Paying Agent and the City r"Cive written evidcncc with respcct to the ability of the successor Securities Depository to discharge its responsibililiCS. Any such successor Sccuritics DCpository Sllall be ',I Sccuritics depository which is a rCgistCrcd clC;1HIl e �tgCncy urldcr the Sccuritics and Fxchalgc Act of' 1934, as amended, or other applicable Statule oi' regulation that opCratCS a sceuriticS depository upon reasonable and customary ',cents. The Payinl; Agerlt upon its receipt ofa Boned or Bonds rot, cancellation shall cause the dclivcry of Bonds to the s1lCCCSsor Smirilies Depository in appropriate denomination's and Form as provided herein. (d) The CxeCUtion and dclivcry of'the Representation letter to D'ITC by tilt Mayor in the form attached hereto as Exhibit B with Such changes. omissionS, insertions and revisions as the Mayor shall decal advisable, is hereby authoriiCd, and CxCCUtion of the RCpresCntation I.etcr by file Mayor shall be conclusive evidence of such approval. 'I'lle Representation Letter shall set filet)) certain matters with respect to, among other things. notices, consents and approvals by Registered Owners of'the Bonds and beneficial Owners and payments On the Bonds. The Paying Agent shall have thou same rights with respect to its 201011S thCl'elindCl-as It has with respcct to its actions under (his 01-dirlalcc. Section 211. Authorization of Continuing Disclosure Agreement. The City is hereby malll)tized to enter into the Colltllllling DISCIOSIIrc Agrecnient, ill suhstantinlly the lin-m attached to this Ordinance and marked Exhibit C, and the i\layilr and City C'Icrk J c lICrcby audlorixcd 01111 diI•CCICd to execute the C011llnlllllg DiSCIOSnrc Agrcenie It with such changes therein as Stich ol•licials play decal appropriate, flit'and (nil behalf of and as the act and deed of'the City. -12- 1 A[t'I'iCLE 111 REDEMPTION Ole BONDS Section 301. Optional Redemption of Bonds. (a) Optional Redemption ht, C'itj% At the option of the City, Bonds o►• portions thereof' maturing on November 1, 2012, and thereafter Ilia`' he Crilled for redemption and payment ilrior to the Stated Maturity thercof on November 1, 2011, and therealicr ill whole or in part at tiny time ill such rinlotults Cor each Staled Maturity as shall be determined by the City at the Redemption price of 100'%, of the principal amount thereof, plus accrual interest thereon to the Redcnlplinn DMC. (It) Isxtrnurdinrrrt, Redemption bt' C'ill,. At the opliml of the ('lt)', the liunds or portions thereol' maturing on or after Novenlher I, 2006, may he called lin' redemption and payment prior to the Slated Maturity Ihercofon November 1, '2005, and thercaller in whole or ill pelt al ally tilue at the Redemption Price of 100`%, of the principal anuxu)t thereof, plus accrual interest thelvon to [fie Rcdunlptiein Date, to the extent the City ref"mances all or any portion of the Inipl-mcnlcnts financed w1t11 the Bonds under the Nflssouri Leverage State Water Pollution Control Revolving; Fund. Section 302. Selection of Bonds to Be Redeemed. (a) The Paying Agent shall call Bonds for and paynicnt and shall give notice of such redemption as herein provided upon rcccipt by the Ptlying Agent at least 45 clays prior to the ® RedCirlption I)ate ol'wrltten lllstt1lCIIUIIS from the City ,pccil•ying the 1)rinelpal amount. Statal NhIturities, Redemption Date and Redemption Prices of the Bonds to he c,aliCd tin• redemption. If any 13011ds arc rel'ullded more than 90 clays in advance ofsuch RCdcniplion D;Itc. ally escrow agreement entered into by the City in connection with such refunding shall provide 111:11 such written inS1111Ctions to the Paying Agent shall he given by the escrow agent oil behalf ol' the City not Ics, titan 45 days prior to the Redemption Datc. The Paying Agent may in its discretion waive such notice period so long as the notice requirements set forth in Section 303 are met. (h) Bonds shall be redeemed only in the princlp;ll ;unoilrit of 55,000 or any integral nutltiple IhCrcol'. Bonds of less than a full Stated raturity shall he ;Clcctccl by the I'ayn1,; :lgcnt in S5,000 units of principal :rnulunt in such eyuitaNC nrullrcr as the I'ayin};1lttcnt niay cletcl'111111c. (C) In the case of a partial redemption of Bolld, at the limit Outstanding ill detloilllllat1011s greater than $5,000, then for all purposes in connection with such redemption each $5,000 of face value shall be treated as though it were a separate Bond of the dcnomina0on of 55,000. If it is determined that one or more, but not all, of the 55,000 units of face value represented by any Bond are selected for redemption, then upon notice of intention to ralecnl such 55,0()0 unit or units, the Registered Owner of such 130111.1 or the Rcgiste-Cd Owner's duly authoriicd agent shall pl-CSetlt and surrender tiuch Bond to the Paying Agent (1) for payment of the Redemption Ili-ice and illt l.C.�l to the Redemption Date of such $5,000 unit or units of lace value called 1161- redemption. and (2) 161. exchange, without charge to the Registered Owner thereof', for a new Bond or Bonds of the aggregate principal amount of the unredeemed portion of the principal alllotlnt Ot AICIi Bond. II the Registered Owner of any such Bond tails to present such Bond to the Paying; Agent file paynicnt and exchange as aforesaid, such 13011d shall, ncverthclCSS, become clue and payable on the Redemption Datc to the extcnl ol'the 55,000 unit or units of fact value called ror redemption (and to that extent only). -13- Section 303. Notice and Effect of Call for (Redemption. Unless waived by ,lily Registered Owner o1'Bonds to be redeemed, ol,icial notice of any rcdcnlption shall be g!ivcn by the Paying Agent on behalf'of'tile City by mailing; a copy of an of lcial rcdcnlption notice by firsl class mail at (cast 30 days prior to the Redemption Date to the PllrChaSCI' of the Bonds and each Registered Owner of the Bonds to be rcdccnlcd at the address shown on the Bond Register. All official notices of rcdcnlption shall he dated and shall contain the fi►llmo.ing information: (a) the Redemption Date, (b) the Redemption Price, (c) if less than all Outstanding Bonds of a maturity are to he rcdccnlcd, the identification nuillbcr, Stated Maturity, and, in the CW,c of partial rcdcnlption of any Bonds, the respcctfve principal anlcnults ol'Ihc Bundy to he recleeIlIC& (d) a statement that on the Redemption Date the Redemption Price will become due and payable upon each such Bond or portion thereof called for redemption and that interest thereon shall cease to accrue Irorll and after the I.edenlption Date-, allot (e) the place where such 13011ds are to he surrendered filr payment ol'the Redemption Price, which shall be the principal corporate uflicc ofthe PaVint Agx111. ['he failure ofany Registered Owner to reeelve notice t,iven as bl'I'etOfOrC providedl or any (lefccl therein :;hall not invalidate ally wdempllorl. Prior to any Redemption Date, the City shall deposit wow the Pa}ing; ,11th an amount of numey suffic;icrlt to pay the Redemption Price of all the Bonds or portions of Bonds that are to he redeemed on that(late. Official notice of redemption having been given as ali►re.said, the Bonds or portions of'Bonds to be redeemed shall become due and payable on the Redemption Hate nt the Rc(lemption Price therein specified, ;.Intl fi•onl and alter the Redemption Date (unless the City dela(rlts in the payment of the Redemption Price) such Bonds or portion of Bonds shall cease to hear intcrest. Itpon surrender of such Bonds for redemption in accordance with such noticc, the Redenll)Ifon Price of such Bonds shall be paid by the Paying;Agent. Installments of'interest due on or prior to the Redemption Date shall be payable as herein provided For payment of intcrest. Upon surrender (irr any partial rcdcnlption of' lily Bond, there shall be prepared Im the Registered Owner a new Bond or Bonds of the sane Stated Maturity in the amount ol'the unpaid principal as provided lurem. All Bonds that have been redeemed shall be cancelled and destroyed by the Paying Agent as provided herein and shall not he reissued. The Paying Agcnt is also directed to comply with ;Illy mandatory standards established by the Securities and Exchange Commission and then ill efl'cct lilt processing! redemptions 01' municipal securities, failure to comply with such standards shall not al,lcct or invalidate the rcdcnlption orally Bond. I-.or so long as the SCCIn'It.ies Depository is ell cting, book-entry transfers of the Bonds, the Paying Agent shall provide the notices specified in this Section to the Sectlrftics I)epository. It is expected that the Securities Depository shall, in turn, notify its Participants and that the Participants, in turn, will notify or cause to be notified the benclicial owners. Any failure oil the part of the Securities I)epository or a -14- Participant,or fidItire oil the part ol'a nominee of a hencIicial owner of a Bond (having been mailed notice From the Paying Agent, the Securities Depository, a Participant or otherwise) to notify the benclicial Ownerol'the Bond so aflccted, shall not.al'I cc t the validity oI'tile redemption of such Bond. ARTICLE, 11' Sh:C[II ITN' FOR BONDS Section 401. Security for Bonds. The Bonds shall be special obligations of the City payable solely from, and secured as to the paynlcnt of'principal and interest by a pledge of', the Net Rcvcnucs of the System, and the City hereby pledges said Net Revenues to the payment ol'the principal ol'and interest on the Bonds. The Bonds shall not be or constitute tI general obligation of the City, nor shall they conslit►Itc an indcbtcchless of the City within the meaning of any constitutional or statutory provision, limitation or restriction, and the• taxing power of the City is not pledged to the payment of the Bonds either as to principal or intcrest. The covellallts and agreements of the City contained hcrcin and in the Bonds shall be fill the equal benefit, protection and security of the legal Owllet'S of ally or all of the BOI1tIS, all of which Bonds s11a11 be of equal rank and without prcfi:rencc or priority of one Bond over ally other Bond ill the application of'the funds hcrcin pledged to the paynlcnt of the principal of'and the interest on the Bonds, or otherwise, except as to rate of intcrest, Stated Maturity and right olrcdemption prior to Stated Maturity as provided in this Ordinance. The Bonds shall stand on a parity and be equally and ratably secured with respect to the payment of principal and interest front the Net Rcvcmlcs of the System and in all other respects with any Parity Bonds. The Bonds shall not have any priority with respect to the payment of principal or interest from said Net Revenues or otherwise over Parity Bonds and Parity Bonds shall not have any priority with respect to the payment of principal or interest from said Net kevctities or otherwise over the Bonds. ARTICLE V CREATION AND RX11 ICATION OF FUNDS AND ACCOUNTS; DEPOSIT AND APPLICATION OF BOND PROCEEDS Section 501. Establishment of 1,'unds and Accounts. '['here arc hereby created or ratified and ordered to be established and maintained in the treasury of she City the 1i011owing separate funds and accounts to be known respectively as the: (a) Sewerage System 2002 Project fund (tile "Project Fund"), (b) Sewerage Systcnl Revenue Fund (tile "[revenue Fund"). (c) Sewerage System Operation and Maintenance Account (tile "Operation and Maintenance Account"). (d) Debt Scrvicc Aee(llllll lilt Sewerage System ltcvcnue Bonds, Series 2002 (tile "Debt Service Account"). -15- (c) Debt Service Reserve Account Im Sewerage System Rcvcntic Bonds, Series 2002 (tile "Debt Service Reserve Account"). (f) Replacement Account (the "Depreciation and Replacement Account"). (g) St:wcragt: System Surplus Account (the "Surplus Account"). (h) Rebate Fund lo►'Scweragc System Reventc Bonds, Sevres 2002 (the "Rehate Fund"). In addition to the ftnlds and accounts described above, the fo110%0ng funds and accounts are held by a trustee with respect to the Previously Issued Parity Fonds tinder a Bond Indenture; (1) Reserve Account (thc "200113 Reserve Account"). (2) Debt Service Account (file "2001 B Debt Service ACCOLIM"). (3) Principal Account (the "200113 Principal Account"), (4) Interest Account (the "2001 B Interest Account"). 'I'hc ftnlds and accounts rcicrred to in this Section shall hr maintained and administered by file City solely for the purposes and in the manner as provided in the Act and in this Ordinance and in the Previously Issued parity Ordinance so long as any ol, the Bonds or the Previously Issued Parity Bonds remain outstanding within the meaning of this Ordinance ant said Previously Issued Parity Ordinance, respectively. Section 502. Deposit of Bond Proceeds. The net proceeds received front the sale of the Bonds, including any prenliullt or accrued interest thereon, shall be deposited simultaneously with the delivery ol'thc Bonds, as follows: (a) Any prentiunt on the Bonds and any anlourit reeclved on account of accrued interest on the Bonds shall he paid and credited to the Debt Service Account and applied in accordance with Section 602 hercol'. (b) An amount eyual to the Debt Service Reserve Itcduirerltcnt shall he paid and credited to the Debt Service Reserve Account and applied in accordance with Section 602 hereof. (c) The remaining balance of the proceeds of the Bonds shall be deposited in the Project Fund and applied in accordance with Section 503 hercol'. Section 503. Application of Moneys in (lie Project Fund. E'xcepl as olherwise provided in this Ordinance, moneys in the Project Fund shall be used solely for the purpose of(a) paying file cost of the Project as hcreinbcforc provided, in accordance with the plans and specifications therelilr prepared by the City's Consultant for the Project, as heretofore approved by the Council of the City and on file in the office of the City Clerk, i►1Cllidlllg ally alterations in or amendments to said plans and specifications deemed advisable by file Consultant and approved by file Council of the City, and (b) paying the costs and cxpcnses incident to file issua►l .' of the Bonds. Withdrawals front the Project fund shall be made only when authorized b y the Council and only J > y Y on duly authorized and excepted warrants or vouchers thcrelor accompanied by a certificate executed by -16- the Consultant that SLICII paylllCnt iS bClllg Made for a purpose within the scope of this Ordinance and that the artiounl of such payment represents only the contract price of the property, equipment, labor, materials or service being paid for Or, if such payment is not being; madc pursuant to an Cxpress contract, that such payment is not ill excess of the reasonable value thereof. Nothing hercillbel'Ore contained shall prevent the payment out of the Project Fund of all costs and expenses incident to the issuance of the Bonds "and interest accruing on the Bonds (luring the pCriod of acquisition and construction of the Project" or withdrawals of sums tin• investlrlent or rcinvcstillent purposes rnlder tilt terns of-this Ordinance without a certificate front the Consultant. Upon completion of the Project as hereinhefure provided, ally surplus 111011CYS renlalrllllg ill the Project Fund and not required fur the payment of unpaid costs thereof shall be deposited in the Debt Service ACCOUIlt. ARTICLE V11 APPLICATION OF ILEVENVES Section 601. Revenue Fund. The ('11), covenants and agcre,, that front and after the delivery of the Bonds, and continuing as 101111, as any of the Bonds rcnulin Uotstanding; hereunder, all of the Remities shall as and when received be paid and deposited into file RCVCnuC fund unless OthcrwisC specifically provided by this Ordinance. Said Revenues shall be Wgl_CUUtrd and kept separate and apart From all other nloncys, I'CVCnucs, funds and accounts of,the i.'ity and shall not be conullin,gled with any OthCr 111011CyS, I-CVCnucs, ('ands and accounts of the City. '['lie Rcvcime Fund shall be administered and ® applied solely for the l)Llrl)OSCS and Ill the nlallllcl. provided ill tills OrdIll;ITICC. Section 602. Application of Moneys in h'unds and Accounts. 1'hc ('ity covenants and agrees that fironl and after the delivery of the Bonds and Continuing so long as any of the Bonds shall remain Outstanding, it will administer and allocate all of'the ilu)11evs then held in the Revenue Fund as lullows: (a) Operation and 11fairrlerr till Ce Account. On the first clay of each month. there Shall be paid alld CrCditCd to the Operation and Mailltellalice Account an 11110LIllt SLItIIChCrlt to pay the estimated Expenses (luring; the Cnsuillg, nwnlh. All 11110LIIIIS paid anti credited to the Operation and Maintcnance Account shall be expcn(lCCI and used by the City solely for the purpose of'paying the l".xpellses Or the System. (h) Debt See-ice Account. On the 25'1' clay of each 11101101, there shall next be paid and credited to the Dcbt Service Account, to the extent necessary to inect oil each Bond Payment Date the payment ofall inlcrest on and principal ol'thc Bonds, the following! stalls: (I) 13cg;iruling with the first of said deposits and continuing on the first (day or each 111011111 thereafter to and including,April 25, 2003, :111 equal prn rcrlu pOrti011 Of the alliount 0f'Intel-cst becoming(IUC Oil the Bonds Oil May I, 2003; and thcrealler, beginning on May 25, 2003, and continuing on the 25'1' clay of each month theroaflcr so long as any of the Bonds shall remain outstanding; and unpaid, an amount not Icss than 1/6 of the amount of interest that will I)CCOML: due 011 the Bonds On the next SUCCCCding llItCrCSl Payment Date; and (2) Beginning with the Iirst Of said deposits and continuing oil the 25"' flay of each rnonth thereafter to an(1 including, October 25, 2001, all C(lual pro RIM portion 01' -17- the 1111OL1111 of 1)1'Illcll),)) I)CCOnling clue on the Bonds on Novcrnber I, 2003; and thereafter, beginning on November 25, 2003, ;Ind continuing on the first day of each month thereafter So long as any of the Bonds shall remain outstanding and unpaid, an amount not less than 1/12 of the amount of principal that will I)CCOille due on the 13onds Oil the next sucCCCdin}; Matu►ity, The amounts rcquircd to be paid and credited to the Debt Service Account pursuant to this Section shall be so paid at the same time and of a parity with the amounts at the tinie rcquircd to be paid and credited to the debt service accounts established for the payment of principal and interest.on Parity Bonds under the provisions of the Parity Ordinances. Any amounts deposited in the Debt Scrvice ACCOLInt aS accrued interest in accordance with Section 502 hereof shall be credited against the C'ity'.s payment oblig pions as set forth in subsection (b)(1) of this Section. If at any tulle the moneys in the RCVCnuC Fund arc insufficient to make in full the payments and credits at the time rcquircd to be tllaLlC to the Debt Service Account and to the debt service accounts established to pay till.' principal of and interest on any Parity Bonds, the available moneys in the RCVCnuC Fund shall, unless OthcrwisC directed by the Previously Issued Parity Ordinance, be dividdcd anong such debt scrvicc accounts in proportion to the respective principal amounts of said series of bonds at the lime uul;tondling which are payable fi•onl the nloncys in said debt 5Ci•1'iCC aCCOIIntS. :111 aniounls paid and credited to the Debt Service Account shall be expended and used by the City 161. tine sole purpose Of'paying the interest on and principal of the Bonds as and when the same I)C'CO111C due on Cacti Bond Payment Date. (c) Dchl Yet-viee Reset-ve Account. So long as the Debt Service Reserve AccOLInt aggregates the Debt Service Reserve Requirement, no paynlentS into said Account shall be rcquircd, but if' the City shall Cver be require) to Cxpcnd and use a part of the nloncys in said Account for file purpose herein authorized arld such CxpenditurC shall reduce the amount of said ACCOLInt bClO\1' the DCbt SCI•VICC I"CSCI•VC RCCluircnlcllt, the City sha11, on the first day of each ►month, deposit all available moneys into said Account until said Account shall again aggregate the Debt Service Reserve Requirement. ► xccpt as hereinafter provided in this section, nloncys in the Debt Service RCSCI•VC ACCOLInt shall be expended and used by the City solely to prevent any default in the payment of'interest oil or principal of the Bonds oil any Bond Payment Late if the moneys in the Debt Service Account are insufficient to pay the interest on or principal of said Bonds as they I)Ce)111e CILIC. The amounts required to be paid aid credited to the Debt Service Reserve Account I)La•SLlallt to this SCCIIOii Shall be So pail{ at the same (line and on a parity with the amounts at the time rcquircd to be paid and credited to the debt scrvicc reserve accounts established for Parity Bonds under the provisions of'tile Parity Ordinances. If at any time the nloncys in the RCVCnuC Fund) arc 1liSLIff1CICllt to make in Cull the payillents aIld credits at t1C time I•Cgill•Cd to be made to t1C Debt Service Reserve ACCOLIIit 111(1 to the debt scrvicc IesCrvC accounts established to protect the payment of any Parity Bonds, the available moneys in the RevCIlLIC i''und shall, unless otherwise directed by the PreViouSly issued Parity Ordinance, be divided anu)ng such debt service reserve accounts ill proportion to the -IS- respective principal amounts of said series of hands at the time outstanding which are payable From the moneys in such debt service reserve acculults. Moneys in the Debt Service Reserve Account may be used to call the Bonds for redemption and payment prior to their Stated Maturity, provided all of the Bonds at the time Outstanding are called for payment and funds are available to pay the same according.to their terms. Moneys in the Debt Service Reserve ACCOL111t shall be used to pay and retire the last Outstanding Bonds unless such Bonds and all interest thereon are otherwise paid. Any amounts in the Debt Service Reserve Account ill excess ol'the Dcht Service. RCSCI-VC Requirenlerlt On any Valuation Date shall be transt'errcd (i) during the period of acquisition Orld construction of the Project, to the Project fund, and (ii) after the Project has been completed and fully paid for, to the iZCVC11LIC mend. (d) Depreciation and Rephice rent Ac count. 'there shall next be paid and credited to the Depreciation and Replacenent Account, oil the first day of Cach 111011th, the SLIM of$ ,000 each month (including any amounts at the time required to be paid and credited to said Account under the provisions of the PrCViously Issued Parity Ordinance) until said Account shall aggregate the Depreciation and Replacement Accumulation RCgllircillent so long as any of' the Bonds remain Outstanding. liXccpt as hereinafter provided in Section 603, moneys in the Depreciation and Replacement ACCOIIM shall be expCmdcll and Used by the City, if no other i'Ui1dS are available therefor, Solely 1101' the pUl'pOSC Of Illaking unusual or CXtraordinary replacements and repairs in and to the System as may be necessary to keep the System in good repair and working order and to 'ISSLII*C the C011tillLICd CIICCOVC and Cfficient operation 111Crcot', 111CILIdirlg i'CplaCillg or repairing portions of the System or major items of any plant or C(Iuipnlent which either have been fully depreciated and arc worn out or have become obsolete, inefficient or uneconomical. No moneys in said Account shall be used lbr the purpose of extending or enlarging the System. Auer the Depreciation and Replacement Account aggregates the 1_)epreciatloll and Replacement ACCLlmlllat►on Requirement, no Further paylllents into said Account .Shall be required, belt if the City Cvcr Cxpcnds and uses a part Ol'the moneys in said Account for its authorized purposes and SLICK CXl1CiIdltLlr'C rCdUCCS the amount of said ACCOIInt below the I)Cprecial.iOn and RCplacement ACCLIIiiIllat1011 Requirement, tied tile City shall wsun1C and C011t111UC said I11011tllly pay111CIltS 1ntO said Account until said Account shall again aggregate the Depreciation and Replacement ACCUmulati011 RCgLlircmlCllt. (e) Surplus Account. After all payments cold Credits rCLluircd at the til11C l0 be illade under the provisions of' the Foregoing paragraphs of this Section have been made, all moneys remaining in the RCMUIC fund shall be paid and credited to 1110 Surplus Account. Moneys in the Surplus Account may be expended and used for the lollowing purposes as determined by the Council Ofthe City; (1) Paying Expenses of the System t0 the extent that may be necessary after the application of'tile moneys held in the Operation and Maintenance ACCOLlrlt under the provisions ol'paragraph (a) of*this Section; (2) Paying the cost of extending, enlarging or improving the System; (3) Preventing delaull in, anticipating payments into or increasing the amounts in the debt service accounts or debt service reserve accounts for System Revenue Bonds or the Depreciation and Replacement Account, of (lily one of them, said payments made to prevent default to be made 111 the order prescribed ill this Section 602 -19- ® of this Ordinance or in the applicable sections 01' 0rduulnces authorising additional System RCVC11LIC Bonds 11C1'CaftCr issued, or establishing or increasing the amount 01 any debt service account or debt service reserve account created by the City for the paylllcilt of any additional Systcrll RcvcmiC Bonds; or (4) Calling, re(ICennng and paying prior to Stated Maturity, or, at the option Of'the City, purchasing in the open nlarkct at the best price obtainable not cxcceding the rcdemption price (if' any bonds arc callable), the Bonds or any other System Revenue Bonds, including principal, interest and r'e(IClllpt1011 111•eillil1111, if any; or (5) Any other lawful purpose in connection with the operation of'the System and benelitting the System. So long as any of the Bonds remain Outstanding, no nIOIWVS (lerived 11'0111 the OpCr Iti011 of the System Shall be diverted to the general gOVCI'IlillClltal or municipal fillllctlons Of the City. (f) ncfcienet' ol'Ptipitents into Funds and Accounts. [fat any tine the Revenues shall be insufficient to make any payment cell the date or dates hercinbcf'ore specilied, the City will make good the anunult of such dcficicncy by slaking additional payments or credits out of the first available Revenues therealtcr received by the City, such payments and credits being illade and applied in the order hcreinbefore specified in this Section. Section 603. 't'ransf'er of Funds to Paying Agent. "1'he Finance Director or other a1.1thu►ize(1 officer of'tile City is hereby authorized and directed to withdraw from the Debt Service Account, and, to the extent necessary to prevent a defiault in the payment of either principal of or interest oil the I3011ds, Iron the Debt Scrvice Reserve Account, the Surplus Account and the Depreciation and Replacement Account as provided in Section 602 hel'COl', sums suflicicnt to IWIV the principal of and interest on the Bonds as and when the sanic hCCOn1C due on any 13011(1 Paynlcnt Date, and to Iorward such sums to th-' Paying Agent in a manner which ensures the Paying Agent will have available fiends in such arnounts on or before the Business Day ininiecl►ately prCCCdinf; each 13011d Payment Datc. If, through lapse of tulle, or Otherwise, the Registered Owners of Bonds shall no longer be entitled to enforce payment of their obligations, it shall be the fluty of the Paying Agent loi•thwith to return said funds to the City as provided in Section 605 hereof. All moneys deposited with the Paying Agent shall be deemed to be deposited in accordance with and subject to all ofthc provisions contained in this Ordinance. Section 604. Payments Due on Days other than Business Days. In any case where a Bond Payment Date is not a BLISI11CSS Day, then payment of principal, Redemption Price or intcrest need not be illade oil such Bond Payment Date belt may be illade oil the i1CXt SLICCCcding BLISillCSS Day with the sa1I1C fierce and cltect as it'made on such Bond Payment Date, and no interest shall accrue file the period after such Bond Payment Date, Section 605. Nonpresentnlent of Bonds. In the event any Bond shall not he presented for payment when the principal thcrcof becomes due at Maturity, it' fund.i sul7icicnt to pay such Bond shall have been made available to the Paying Agent all liability of the City to the Registered Owner thcrcof•for the payment of such Bond shall lortlnvith cease, determine and be completely discharged, and thereupon it shall be the ditty of'the Paying Agent to hold Such funds, without liability lilt interest thereon, for the benclit of the Registered Owner of such Bond, who shall therealtcr be restrictCd cXClusivcly to SLich funds for ,lily claim ofwhatever nature on his part under this Ordinance or on, or with respect to, said Bond. II' any Bond is not presented 1'01.payment within four years following the date when suCII Bond becornes Clue at Maturity, the Paying Agent shall repay to the City without liability for interest thereon the fiends -20- therctollore held by it lilr payment of Stich Bond, anti such Bond shall, subject to the defcnsc of ally applicable statute of limitation, thereafter he an unsecured obligation of the City, and the Registered Owner thereof shall be entitled to look only to the City for payment, and then only to the extent of the amount so repaid to it by the raying Agent, and the City shall not be liable fin• any interest thereon and shall not he regarded as a trustee ol'such nloncy. Section 606. Application of 1lMoneys in the Rebate Fund. (a) There shall be deposited in the RCbalc Fund such onunrntS as arc rcquircd to be deposited therein pursuant to the Arbitrage instructions. All nloncy in the Rebate Fund shall be held in trust, to the extent required to satisfy file Rebate Amount (as defined in the Arbitlagc lnSlr'L1ClionS), 101-payment to the United States of America, and neither 'he 0ty nor the Registered Owner of any Bond shall have any rights in or claim to such nloncy. All anunnits deposited 11110 or on deposit in the Rebate Fund shall be governed by this Section and the Arbitrage instructiow;. (b) The City shall periodically determine the rchatablc arbitrage colder Section 14(f) of tilt; Code in accordance with the Arbitlage Instructions, and the City shall make payments to the United States Government at the tinges and in the amounts determined under tile, Arbitrage instructions. Any funds remaining in the Rebate Fund after redcnlptroll and payment of all of the Bonds and the interest thereon and paynlcnt and satisfaction of any Rebate Anunult, or provision nlndc therefor, shall be released to the City. (c) Notwithstanding any other provision ol'this 01.(1111anCe, including in particular Article Xf hereof, the obligation to pay rcbatable arbitrage to the United States and to comply with all other requirements of this Scctioll and the/\1'1)ilrtagC Instructions shall survive the defeasance or payment in full of,the Bonds. ARTICLE Vill DEPOSIT AND iNVES'I'MFIN'I• OF iNit)NEYS Section 701. Deposit and investment ol',Moneys. (a) Moneys in each of the funds and accounts crcatcd by and rcicrred to in this 0i'dinanee shall be deposited in a bank or banks or other legally permitted financial illStitutions located in the State Of MiSSOIII'i that are members of the Federal Deposit Insurance Corporation. All such deposits shall be continuously and adequately scoured by the banks of lmancicll institutions holding such deposits as provided by the laws of the State of Nlissouri. (b) N4011CYS held in any fund or account rcfi;rred to in this Ordinance may be invested in Permitted Investments; provided, however, that no such invesuncnt Shall be made for a period extending longer than the date when the moneys i►lvcsted play be needed For the purpose fm• which Such fund or account was created. All earnings on any investments held in any fund or accoiult Shall accrue to and become a part of such fund or account; provided that at all times that the balance oil hared in the Debt. Service Reserve kCeollilt is equal to or greater than the Debt Service Reserve Requirement, all earnings on investments held in the Dcbl Service Reserve Account, and any amount in said Account in excess of • the Debt Service Reserve Requirement, shall be paid and credited to tilt 1'rojcct I"utld, or, if the Project iS complete, to the Debt Service Account. Ill Cleler'Mining the allioullt held ill any fund or account under any of the provisions of this Ordinance, obligations shall be valued at the lower of tic cost or the market value -21- thereof, provided, however, that investments held ill the I)chl Service Reserve Account ~hall be valued at market value only. If and when the amount held in any Iluul or account shall he in execsS 01'tile amount required by the provisions of this Ordinance, the City Sh;►Il direct that such excess be paid and credited to the Revenue Fund. (c) So long as any 01'tile Previously Issued Parity Bolids remain outstanding and unpaid, ally investments made pursuant to this Section shall he subject to any 1'CSII'iCtiotIS in the Previously Issued Parity Ordinancc with respect to the funds and accounts created or ratil-wd by and referred to in the Previously Issued Parity Ordinance. ARTIC'I A., Vl II ('EN FAZALCOVI?NAY SAND PROVISIONS '['lie Ctty covenants and agrees with each of the Registered Owners of the Bonds that so loaf as any of*tile Bonds remain Outstanding it will comply with each of file follownig covenants: Section 801. 1?fficient and Economical Operation. 'fhc City will continuously own and will operate the Syslen► as a rcvcnue producing System in an el'licicnt and economical manner and will keep and maintain the sank in stood repair and working order, The ('tty will establish and maintain such rules and regulations f61. the use of the System as may he necessary to assure 11laxirnu11l utilization and most el'ficicr►t operation ofllic System. ® Section 802. Rate Covenant. The City will lix. c.;tahlish, nlain'iain and collect such rateS and charges Itlr the use and serviccS furnished by or throe;11h the SyStonl as will produce Rcvenucs suf'fi, lent to (a) pay the Expenses of*tile System: (b) pay the principal ofwld interest on the Bonds as and when the Satte become due; and (c) cnahlc the City to have in each fiscal year Net Revenues not less than 110',4- of the amount required to be paid in such fiscal year on account of holh 111-i11cipt►I ofall(l interest on all S)'stenl Revenue Bonds at the time outstanding; and (d) provide reasonahle ;u►d adequate reserves tier the poynunt of the Bonds and the interest thereon and for the protection and hl'11C111 of'the System as provided in the Bond 01-dinance. The City will require the prol►pt pa1•IUC11f of acruunts 161' service re1141ercd by 01' through the System '111(1 will promptly take whatever action is legally permissible to 110 r011ect delinquent charges. The City will, fiolll dill( to link as often its neccss;uy, in aecord;u►cc with and subject to applicahlc legal rcgttircnlcr►ts. revise the rateS and charges alin•esaid in such nwnner as ns►y he necessat.y or proper so that the Net RcvcnucS will he suflicicnt to cover the obligattonS of the t 'ity under this Section and otherwise tntdcr the provisions of this Ordinance. Section 803. Reasonable C'harg!es for all Services. Nonc of the facilities or services provided by the System will he furnished to alb' user (cxceptirtg the City itself) without a reasonable charge being; made therelor. 11' the RCVCIIIICS arc at any litlll' insul•ticienl to pay the Expenses of the System and also to pay all interest on and principal ol•the Bonds as and when the sane become due., then the City will thereafter pay inlo the Re1'CIIC I"tald a lair and reasonable payment in accordance with effective applicable rates and charges for all use and scrviccs 1tn-nished to the City by file System, and such payments will continue So long; as the same Illy be necessary in order to prcvcnt or reduce the amount of any def;nllt ill the payment of the interest on or principal of(lie Bonds. Section 804. Corporate Existence. The City will maintain its corporate identity and existence so long; as any of the Bonds remain Outstanding. unless anolhcr body corp►.lrate and politic by operation 01' law Suceceds to the powers, privileges, rights, liabilities, disabilities and duties of the City -22- and is obligated by law to comply with the terms and provisions of this Ordinance without materially adversely affecting at any time the pl•ivileges and rights of any 0WtlC1•of any()utstandint; Bond. Section 805. Restrictions on Mortgage or Sale of System. 'I he Cily will not mortgage, pledge or otherwise encumber the System orally hart thereof, nor will it sell, lease or otherwise dispose of the System or any material part thereof; provided, however, the City play (a) sell at fair market v,doc any portion of the System which shall have been replaced by other similar property of at (Cast equal value, or which shall cease to be necessary for the efficient operation of the System, and ill the event of'sale, tilt City will apply the proceeds to either(I) redemption of Outstanding Bonds in accordance with the provisions governing redemptloll of Bonds in advance of Stated Maturity, or (2) replacement of the property so disposed of by other property the Revenues of which shall lie i►lcorporatcd into the System as hcreinbcfin•c provided; (b) cease to operate, abandon or olhcl-wisc dispose of' any property which has become obsolete, nonproductive or othel•wiSC umlS,,bIC to the IdVamtagV ol'tile City: or (c) [ease, (1) as lessor, any real or personal property which is unused or unimproved, or which has become obsolete, nonproductive or otherwise unusablC lu the adVantal;C of the City, or which is being aCquircd as a part of a Iease/purchase financing fin. the acquisition and/or Improvement of such property; and/or(2) as lessee, with an option of the City to purchase, any real or personal property for the extension and improvement of the System. I'roperty hcing ICa,Cd as ICSSOr and/Or ICSSCc pursuant to this subparagraph (c) shall not he treated as part of the System for purposes of Ibis Section 805 and may lie mortgaged, plCdgCd or OtIlCrwiSC encumbered. Section 806. Insurance. The ('It-, well carry and u1au11am insurance with respect to the System and its operations against Casualties, Contingencies and risks (inCluding but not hl'llilCd to propCl•ty and Casualty, lire and extended coVCl',lgC insurance upon all of the properties forming a part ofthe System insofar as the sank arc of an insurable nature, IMINIC liability insurancC, business interruption insurance, worker's compensation and CmlployCC dishonCSly insurance), such insurance to be of the character and COVC1•agC and in such alllollillS as would normally he CarrlCd by Other nitaucipallticS ol• public; CntitiCS engaged in similar activities of CunlparablC size and Similarly SltuatCd. In the CVCnt of loss or danlagC, the City, with reasonable dispatch, will use the proCCCds of SuCII insurance in recolls1ructing and replacing the property damaged or destroyed, or in paying the claims on account of Which such procccds werC received, or it' such I•CCOIIStRJC1iol'1 or rCplaccnlCnt is unnCCCSSary or inlpraCtinhlc, then the City well pay and (ICposit the IWOCCCdS of such iI1SUraI-ICC into the RCVCI1lIC Fund. The City will annually review the insurance it maintains with respect to the System to clCtcrnlinC that such insur,lnCC is Customary and adequate to protect its property and operations. The. City may elect to be SClf-insw•Cd for all 01' any part of the 101-Cgoing rCquirenlentS if (i) the City am1ua11y obtanls a written evaluation with respect to such sell-insurance prog.anl from ,m 111S1lraI1CC Consultant, (ii) the evaluation is to the cllcct that the sell-II1Slll•,111CC pl•Ogffalll IS actuarially Sotllld, (lit) UIIICSS the (Nalllati011 SUIWS that Well I'C5CI•VCS al•C llot necessary, (he City deposits and maintains adequato rCSCI.1'CS for file SCII-IIIS1117II1CC 111'ogl',1111 With a Corporate ll•tIS1CC, who nlay be the Paying, A cnt, and (iv) in the case of workers' compensation, adequate reserves created by the City lilr such sell=insuralice program are deposited and maintained ill such amount and manner as are acceptallle to the State of Missouri. The ('ity shall pay any Ices charged by such Insurance Consultant and any expenses incurred in connection therewith, The Cost of all insurance Obtained ptlrsuaflt to the requirements of this SCCtioll shall he paid as all FXI1CI1SC hilt of till' RCVcmucs. • Section 807. Books Records said Accounts. The C'it y will install and maintain proper hooks I records and accounts (cntirCly separate from ,111 other records and accounts of'tile City) in which complete -23- and correct entries will be made of all dealings and transactions of or in relation to the System. Such accounts shall show the illllotant of Itcvcnues of the System, the: application of such Revenues, and all financial transactions in connection therewith. Said books shall be kept by the City according to standard accounting practices as applicable to the operation of Facilities comparable to the System. Section 808. Annual Budget. Prior to the conlnacncemcnt of each ;fiscal year, the City will cause to be prepared and IIiCd with file City Clerk a budget setting firth the estimated receipts and expenditures of the System for file next succcc(ling Ilseal year. Section 809. Annual Audit. Annually, promptly al'tcr the end of the fiscal year, the City will cause an audit Of'tile System to be made 161. the preceding fiscal year by an Accountant to be employed 101- that purpose and paid froill the Revenues. Said annual audit s11311 covca in reasonable detail the operation of the System clurirlg such Ilscal year. Within 30 clays after the completion ol'cach such audit, a copy thereof shall be filed in the office of the City Clerk, and a duplicate copy of said audit shall be 111161c(1 to the Purchaser of the Bonds. Such audits shall at all times during the usual business hours he open to the examination and inspection by any taxpayer, ally user of the services of the System, any Registered Owner of any of the Bonds, or by anyone acting for Or on behalf of such taxpayer', user or Registered Owner. A copy of any such audit will, upon request and upon receipt by the City of payment of the reasonable cost of'prcparing and mailing the saute, be sent to any Bondowner or prospective Bondowner. As soon as possible after the completion of lllc annual audit. the governing body of the City shall review such audit, and if any audit shall disclose that proper provision has not been rllade for all of the requirements of this Ordinance, the City will promptly cure such delicicncy and will promptly proceed to increase the rates and charges to be charged (or the use and Services furnished by the System as may be necessary to adequately l)rovide G)r such requirements. Section 810. Right of inspection. "I'hc PllrehaSCr of the Bonds or any Registered Owner or Owners of 10'XI of the principal a►llount of the Bonds then 0Utst3auling shall have the right at all reasonable times to inspect the System and all records, .accounts and data rclatillf thereto, and shall he furnished all such itll'ormation concerning the System and the operation thereof which the Purchaser or such Registered Owner or Owucrs may reasonably request. Section 81 1. Performance of Duties and Covenants. The City will faithfully and punctually perform all duties, covenants and obligations with respect to the operation of till' System now or hereafter imposed upon the City by the constitution and laws of the State of Missout'i and by the provisions of this Ordinance. Section 812. Parity Bond Certification. The City hereby represents and covenants that the Bonds directed to be issued by this Ordinance are so issued in full compliance with the restrictions and conditions upon which the City may issue additional bonds payable out of the Net Revenues of the System and which stand on a parity with the Previously Issued Parity BollciS now outstanding, as set forth and contained in the Previously Issued Parity Ordinance, and that the Bonds herein directed to be issued are so issued in all respects on a parity and equality with tile. Previously Issued Parity Bonds now outstanding. -24- Section 813. Tax Covenants. (a) The City covenants and agrees that(1) it will Comply with all applicable provisions of the Code, including Sections 103 and 141 through 150, necessary to maintain the exclusion from IC(Ci'al gross income of the interest on file Bonds and (2) it will not use or pernlit the use of any proceeds of Bonds or any other Finds of the City, nor take or pernlit any other action, or fail to take lily action, if any such action or tailurC to take action would adversely affect the exclusion froril federal gross income ot'the interest on the Bonds. The City will also paSS such other ordinaIICCS or resolutions and take such other actions as may be necessary to comply with the Code and with all other applicable future law in order to enSUrc that the interest on the Bonds will renwin excluded from federal gross income, to the extent any SIICIi aCtiOIIS Carl be taken by the City. (b) File City covenants and agrees that (1) it will use the proceeds of the Bonds as soon as practicable liar the purposeS fin• which the Bonds are issued, and (2) it will not invest or directly or indirectly use or permit the use of any proceeds of the Bonds or any other funds of the City in any ittanner, of take or oinif to take ally action, that would ciluse the Bonds to be "aibitralge honds" within the meaning of Section 148(x) of the C'odc. (c) The City covena ill:; that it will pay or provide I'or the payment from tinle to time of all rebatable arbitrage to the United ;Mates pursuant to Section 148(t) of the Code and the Arbitrage Instructions. THS covenant Shall Survive payltlent in dill or dcfcasancc of the Bonds. The Arbitrage Instructions play be anlended or rcplaced if, in the opinion of Bond Co1111SC1, Such anlendIllClIt or replacement will not adversely 11111CO the cxelusiom li•ont federal gross income of the interest Oil the Bonds. d The City COVCnants Ihat it Will not use ally portion of the proceeds of the Bonds including any i►lvestnlent income Caf'i1Cd oil SIICh I)MCCCIIS, directly or indircCtly, ill a nnauuler that would cause ally Bond to be a "private activity bond" within the rneaning ol'Scction 141 ot'the Code. (c) The City hereby designates the Bonds as "qualified tax-cxC iIII)t obligationS" aS dCtiiICd in Section 265(b)(3) ol'the ('odc. in addition, the City hereby represents that: (1) the aggregate Bice amount ul' all tax-exempt obligations (other than private: activity bonds which are not "qualified 501(c)(3) bonds") which will be issued by the: City (and all Subordinate entities thereof) daring the calendar year ill which the Bonds are issued is lint reasonably expected to exceed `1;10,000,000, anil (2) the City (including all subordinate entities thereof) will not issue more than $10,000,000 of tax-exempt bonds (including the BoildS, but excluding private activity bonds which are not qualified 501(c)(3) bOIldS) during the calendar year in which the Bonds are issued, without first obtaining an opinion of Bond Counsel that the designation ot'the Flonds as "qualified tax-exempt obligations" will not be adversely affected. The Mayor is hereby authorized to take such other action as may be necessary to make effective the designation in tills Subsection. (g) The Foregoing covenants shall remain in full furcc and effect notwilhstanding the dcfcasancc of the Bonds pursuant to Article Xi of' this Ordinance or any other provision of this Ordinance, until the final N'taturity of all HOMIS OutStanding. -25- ARTICLE,, I\ ADDITIONAL BONDS AND OBLIGATIONS Section 901. Senior Lien Bonds. The City covenants and agrees that so long as ally of file Bonds remain Outstanding, the City will not issue any additional bonds or incur or assullle any other debt Obligations appearing as liabilities on the balance sheet of the System fill. the payment of moneys determined in accordance with generally accepted accounting principles consistently applied, including capital leases as defined by generally acc(•ptcd accounting prutciples, payable out of the Net Revenues of the System or any part thel'col'which arc superior to the 11011(Is. Section 902. Parity Bonds and Other Obligations. The City covenants and agrees that so long as any of the Bon(IS remain OLIklallding, it gill not issue any additional bonds or otll(.•r long-term obligations payable out of the Net Revenues of'tile Sysicnl or any part thereof which Stand on a parity of c(luality with the Bonds ("Parity Bonds") unless the 161lowing, Conditions are nlct: (11) The City shall not be in default in the paynlCnl of principal of or intCrest on any Bonds (►I' ally Panty Bonds at the t1111C O(IlStall(hllg Ol' Ill Ill,'Ihing any payment at tlw0 tulle IC(Itlll'Cd to be made i►lto the rcspCCtive flllldS and accounts erCatcd by and rclerred to in this Ordinance or any Parity Ordinance Im Parity Bonds at the tinge outstanding (unless such additional revenue bonds or obligations are being issued to provide fllll(IS to cure such delaultl; alld (11) L;itherol,tile 1611mving: (l) The avcrat,c annual Net Rcvennes for the twn Il;eal y cars unrne(hatcly preceding the issuance of additional honds shall have hCen C(.lual to at least 1 10'54, of the Average Annual Debt �CI'ViCC fog- ,111 SystCnl RC\'ellllC Bonds of the City, including the additional honds proposed to be issued. Interest to be paid on any SRF I'rogranl Bonds (as dCfiIICd in the Previously Issued Parity Ordinance) nuly he reduced by the SRI Subsidy(as defined in the PreviouSly Issued Parity (4(161;111ce), i f arty. In (Iciernlining the Net RCVCI1lICS Ior the two preceding fiscal years 1,01. the purpose of this subsection, the City may obtain an Accountant or a Consultant to adjust said Net Revenues lily the two preceding fiscal yru s by adding thereto, in the event the City shall have made any increase in rates liar the use and scrviceS of the SySlCtll and such increase shall not have hCCII in effect during all ol* the two fiscal years ulurlCdullCly preceding the issuance of additional bonds, the amount, 'IS estinlatc(I by the Accountant or Consultant, of the additional Net Revenues which would have resulted front the operation of the System during said two preceding fiscal years had such rate increase been in effect for the entire period. (2) The projected Nct Revenues filr the two fiscal years immediately following the fiscal yCar in which the improvenlcnls to the System, the cost of which is being lin(uleed by such additional bonds, arc to be placed in commercial operation, as dCtCI'IlllllCd b)' a C.'onSUltant, shall be equal to at least 110"'0 ol'the A\crage Annual Debt SCI'VICe liar ;Ili System Revenue Bon(IS of the City, including the additlonlll bonds proposed to he issued in SIICCCCding fiscal years lilllowing the ConuncrlCenlCnt of Commercial operation of the inlprovCnlCntS. llltCI'CSl to be paid on any SRI: I'rogranl Bonds play be reduCCd by the SRF Subsidy, II' any. In (Ie C1111inin1; the pr(,jeCted Net RC1'CI1(ICS list' the purpose of this stlhseetion 902(b)(2), .(i) average annual sales tax -26- revenllcs appropriated to and uscd lur the Systcnl IS Shown in 0U. tW0 most recent annual audits for fiscal years preceding the issuance of additional bonds shall be used to (ICternrine the anntlal sales lax revenues projected to he appropriated to and uscd fur the system, and (ii) tile, Consultant may adjust said projections by adding thereto any estimated increase. in Net Revenues resulting from any increase or increases in rates for the use and SCrvicCS of the Systcnl duly made by the City which shall he in eflect for the period of such Ilrojrctions and which, in file opinion of file Consultant, are economically feasible and reasonably considered necessary based on ilrojcemi operalions of the system, Additional sewerage system revcnuc hands of the City iSSllel under the conditions set (irrlh in this Section shall stand on a parity with the Bonds and shall enjoy complete equality of lien on and claim against the Net RCVCnucs with the Bonds, and the City nuly make equal provision For paying said bonds and the interest thereon out of the Revenue Fund and play likewise provide fin• the• Creation of reasonable debt service accounts and debt service reserve accounts for the payment of such additional bonds and the interest thereon out of moneys in the Revenue I'uild, Section 903. Junior Lien Bonds and Other Obligations. Nothing in this Section contained shall prohibit or restrict the right of the City to issue al.lditionll revenue. bonds o►- other revenue obligations lilr any lawtill purpose in connection with the operation of the Systcnl and to provide that the principal of alld Interest on said revenue bonds or obligations shall be palyable out ol'the Net Revenues of the System, provided at the time of the issuanCC of such additional revcnuc bonds or ohligatioris the City shall not be ill default in the pCrlin•nlalice of ally covenant or agreement contained in this Ordinance (unless such additionrl rCVenuC hands or obligationS arc hcing issued to provide funds to eurc such default), and provided Ila'lhcr that such additional revenue bonds or obligations shall be junior and subordinate to the Bonds so that 11 It ally tilnc the City shall be in defalllt Ill paying either interest Oil of principal of the Bonds. or if the City shall he in detain► in making any payments required to be made by it under the provisions of'paragraphs (a), (b) and (c), (d) and (c) of Section 602 ol'this Ordinance, the City shall slake no payments ol'cllher I IlICipai ofor iotcrCSt on said junior and subordinate l'CVClllll' hands or obligations until Said det'ault or defaults be cured. In the event of' the issuance of any such jullior and subordinate i'CVelllie bonds or c,blittatiorls, the 01i ', suhjeCt to I11C provisions ai'orcsuid, play make provision for paying the principal ol'and Where>l on surd rCVCnue hondS or f01' peeing said obligations out ofnloncys in the Revenue Fund. Section 904. Refunding Bonds. The Pity shall have the right, without conlplyirlg with the provisions of Section 902 hereol', to refund any of the Bonds under the provisions of any law then available, and the refunding; bonds so issued shall clijoy complete equality of pledge with any o(' the Bonds that are not reRuuded, if any, uglorl the Net ReVeltllcS of'tile System; provided, however, than ifonly a portion of the Bonds are I'CfunelCd said if squid HOMIS arc rcfirrldcd in such IM11111C1' 111x1 the aggregate amount of principal and interest scheduled to hCC011le due on the refunding bonds ill any fiscal year (taking into account SCIMIule(d mandatory redemptions) cxcced:. the aggregate amount of principal and interest scheduled to become due on the rcl'undCd Binds in said fiscal year(taking into account scheduled mandatory redemptions), Ihcn said ltollcls slay he refunded without complying with the provisions of Section 902 hereof only by and with the writteal consent of the Registered Owners of a majority in principal atllowlt of the I�milds not refunded. -27- AR•i'IC E X 1)E AULT AND REMEDIES S Section 1001. Acceleration of Niaturity Upon Default. The City covenants and agrees that if it defaults in the payment of the principal of or interest oil any of the Bonds as the same shall become due on any Bond Payment Date, or if the City or its governing body or ,illy of the officers, agents or employees thereof fail or refuse to comply with any of the provisions of this Ordinance or of' the constitution or statutes of the State of Missouri, and such default continues Im a period of 60 days after written notice specifying such default has been given to the City by the Registered Owner of any Bond then Outstanding, then, at ally time thcreaficr•and while such default continua, the Registered Owner's of 25% in principal amount of the Bonds then Outstanding may, by written notice to the City filed in the office of the City Clerk or delivered in person to said City Clerk, declare the principal of all Bolds then Outstanding to be clue and payable ininledlately, and upon any such declaration given as aforesaid, all of said Bonds shall become and be immediately clue and payable, anything in this Ordinance or in the Bonds contained to the contrary notwithstanding. 'phis provision, 1101VCVe1', is sub,ject to the condition that if at any time after the principal o1 said Clutstandi►lg Bonds has been so declared to be duc and payable, all an-cars of interest upon all of said Bonds, except interest accrued but not yet due on such Bonds, and all arrears of principal upon all of said Bonds has been paid in full and all other cicfaults, if any, by the City under the provisions of this Ordinance and under the provisions ell' the stalulcs 01' the State of Missouri have been cured, then and in every such case the Registered Owners of a majority in principal anlollnt of the Bonds then Outstanding, by written notice to the City given as hcreinbcforc specified, may rescind and annul such declaration and its con,cqucnces, but no such rescission or armuln►cnt shall extend to or affect any subsequent default or impair any rights consequent thereon. Section 1002. Other Remedies. The l)rOViSi011S of this Ordt nance includin LI the covenants and agreements herein contained, shall constit►►le a contract betwmi the City and the Registered Owners of the Bonds, and the Registered Owner or Owners of not less than 1 Y,"O in principal anu►unt of the Bonds at the time Outstanding shall have the right for the equal bcnCfit and protection of all Registered Owners of i3onds similarly situated: (a) by nxlrulanrtrs or other suit, action or IlrOcrcxlings at law or in ccfuity to cnforce the rights 01' such Registered Owner or Owners against the City and its officers, agcnts and employees, and to require and conlpci dutieS anti obligations rcqu►r•ed by Ilse provisions of this Ordinance or by the constitution and laws of the State of Missouri; (b) by suit, action or other pr•occcdings in cifuity or at law to require the City, its officers, agents and enlployces to account as if'they were the trustees c,f an express trust; and (c) by suit, action or other pt•ocealings in equity or at law to enjoin any aets or things which may be unlawful or in violation of the rights of the Registered Owners ofthc Bonds. Section 1003. Limitation on Rights of Boudwivners. No one or more Bondowners secured hereby shall have any right in any manner whatever by his or their action to affect, disturb or prejudice the security granted and provided for herein, or to enforce any right hereunder, except in the manner herein provided, and all proceedings at law or in equity shall he instituted, had and maintained fur the equal bench,of all Rcgistcrcd Owners ol•such Outstanding Bonds, iSection 1004. Remedies ('umulative. No remedy conferred herein upon the Bondowners is intended to be exclusive ofany other remedy, but each such remedy shall be cumulative and in addition to -28- every other remedy and may be exercised without exhausting and \without regard to any other renledy conferred herein, No waiver ol'any default or breach of'duty o►'contract by the Registered Owner of any Bond shall extend to or- affect tiny suhSCgllCnt (IClallt Or bl'CaCll of duty or contract or shall impair any rights or remedies consequent thereon. No delay or omission of any Bondowner to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to he a waiver of any such default or acquiescence tllcecin. I:VCry substantive right and every remedy conferred upon the Registered Owners of the Bonds by this Ordinance may he cnfbrecd and exercised front time to time and as open as may be (Ice111ed expedient. if any suit, action or proceedings taken by any Bondowner on account of ally default or to enforce any right or exercise any remedy has been discontinued or abandoned f'or any reason, or shall have been determined adversely to such Bondowner, then, and in every such case, the City and the Registered Owners of the Bonds shall he restored to their lbrnler positions and rights hereunder, respectiv(.,ly, and all rights, remedies, powers and duties of the Bondowncrs shall continue as if no such suit,action or other proceedings had been brought or taken. Section 1005. No Obligation to Levy 'faxes. Nothing contained in this Ordinance shall be construed as imposing on the City any duty or obligation to ICV)' any taxes either to meet any obligation ineurrCd herein or to pay (lie principal of or interest on the Bonds. Section 1006. Provisions Relating to the Bond Insurer. (a) In the event of a default in the payment of principal of of Interest oil the Bonds, if no other funds are available under this Ordinance for such purpose, 111011CYS in the Project fund shall be used to pay principal of and interest on the Bonds. (b) in determining whether if payment (Iefault has occurred or whether a payment on the Bonds has been made, no CffCCt shall be giVC11 to paylllClltS Under the Bond IIiS(INII1CC Polley. ® O Ally accelera t ion of t h c Bonds s and any annulment thcrcol shall he subfcct to the priof \\litter consent of the Bond Insurer (if the Bond Insurer has not failed to comply with its payment obligations under the Bond Insurance Policy). (d) The City shall give the BOIi(I insurer inli edlate notice of arty payment default and shall give notice of any other default known to the City within 30 days of the City's knowledge thereof. (C) For all ptll'pOSCS Of the pl'OVISIOIIs of this Ordltl ince governing CVCI1tS Of(ICfallll and remedies, except the giving of notice to Bon(iu\wnerS, the Bond Ii)S111-e1' shall be deemed to he the sole owner of the Bonds for so long as it has not failed to comply with its paynlCnt obligations under the Bond IllSlll'anCC Policy, (f) the Bond Insurer shall be included as a party in interest and as a party entitled to (i) notify the City or any applicable receiver of the occurrence of all CVCllt of (IClault and (ii) request a receiver to intervene in judicial proceedings that af•fcct the Bonds of the security therel'or. A receiver shall be required to accept notice ofdefault Ciro the Boni Insurer. Alt'i'I(ILL XI DE' EASANCE Section 1101. Defeas+ulce. When any or all ol'the Bonds or the interest payments thereon shall have been paid and discharged, then lilt requirements contained in this Ordinance and the pledge of Net Revenues n1adC hereunder and all other rights granted hereby shall terminate with respect to the Bonds or -29- interest payments so paid and discharged. Bonds or the interest payments thereon shall be deemed to have been paid and discharged within the nlealling of this Ordinance if there has been deposited with the Paying Agent or other contrrlercial bank or trust company located in the State of Missouri and having full trust powers, at or prior to the Stated Maturity or Redemption Date of said Bonds or the interest payments thereon, in trust tier and irrevocably appropriated thereto, moneys and/or Dcfeasance Obligations which, together with the interest to be earned thereon, will be sufficient for the payment of the principal or Redemption price of said lionds, and/or interest to accrue on such Bonds to the Stated Maturity or Redemption Date, as the case play he, 01- ifdefiullt in such payment shall have occurred on such date, then to the date of the tender of such payments; provided, however, that if any such Bonds shall be redeemed prior to the Stated Maturity thereof, (i) the City shall have elected to redeem such Bonds, and (2) either notice of such redemption shall have been given, or the City shall have given irrevocable instructions, or shall have provided for all escrow agent to give irrevocable instructions, to the Paying Agent to redeem such Bonds in compliance with Section 302(x) of this Ordinance. Any moneys and Defeasance Obligations that at any tinge shall be deposited with (lie Paying Agent or other commercial bank or trust company by or on behalf of the City, tier the purpose of paying and discharging any of the Bonds or the interest payments thereon, shall be and are hereby assigned, transferred and set over to the Paying Agent or other bank or trust company in trust for the respOCtivC RCgislC►rd OwllClS of such Bonds, and such moneys shall be and arc hereby irrevocably appropriated to the payment and discharge thereof. All moneys and Deleasancc Obligations deposited with the Paying Agent or other bank or trust company shall be deemed to be deposited in a000rdanCe with and subject to all of the provisions contained in this Ordinance. In the event of an advance retUndilig, the City shall cause to be delivered a verification report of an independent nationally recognized certified public accountant. ARTICLE, X11 ,liISCELLA,1`EOUS PROVISIONS Section 1201. Amendments. The rights and duties of' the City and the Bondowncrs, and the terms and provisions ol'the Bond,.' Or of this Ordinance, may he ar►lended or modified at any time in ally respect by ordinance of the City with t.hc prior written consent of the Bond insurer and the written consent of the Registered Owners of not less than a majority in principal amount of the Bonds then Outstanding, such Consent to be evidenced by all instrument or instrullielllS CXCCU1Cd by such Registered Owners and duly acknowledged or proved Ill the nlallner Of a deed to he ITCOrdC(l, 111(1 S►ICIi instrument or instruments shall be filed with the City Clerk, but no such modification Or alteration shall; (a) CXtend the maturity of any paylllenl of'principal of ink--rest due upon any Bond; (b) effect a reduction in 1.11c alllOUllt which the City is required to pay by way of principal of or interest on any Bond; (c) permit the creation of a lien on the Net Revenues of the System prior or equal to the lien of the Bonds or Parity Bonds; (d) permit preference or priority of any 1.1011ds over llny 01110' Bonds; or (e) reduce the lcreenta ge in principal amount o1' Bonds required for the written } b } } I consent to any modification of alteration Of the provisions of this Ordinance. -30- Ally provision of the Bonds or of this (hfinance clay, howuer, be amended or modified by ordimulce duly adopled by the govelIIIIIp, hotly ol'the City at any Bolt in any respect with the prior written consent of fill, Bond lnsillt'r surd the \wrilh n C011SCnt of Ibc krgistered Owners of all of the Bonds at the Innt"( 111standing. Without notwc to Ill Ihr cow vilt of ally liondowners, but with (lie prior written consent of the 11011d M'ut'er, flit' ( 'Ily nlriy antt'od of stlpplrllicill Ihr Ordinslncc li►►• the purpose of curing any formal del,rct, omission, inrollsisIt'ney or anlbl)�ulty II►t'rerll or ill connection with any other change therein which IS 1101 llhllrli;llly aclwerst' to Ow Inlrrrsts of lilt' liondo wucrr;. F.wcry anlrncinlew of nlodilwallon of lot' Ill owislon' ill' the Bonds or of this Ordinance to which the \written eonSrllt of* tilt' Bolido\wnrr•, is )�,Iwrn, ;I" ,lbnwr provided, shall he expressed ill an ordinance lms.wd by tilt' gowrrnlng both' of Ihr ( 'itv u100101111, or supplementing the provisions of this Ordinance Mid shall be devilled to hr a pill( of lilt,, Ordlnnntt'. Any and all modifications made in the manner hcivinabove provl,lvd 'lulll not bt't'olnr rlfrcAl\ . 1111th Ihrlr hits been filed with the City Clerk a copy of the ordinant't' of for ( 'lly Ilvivnl provided lin, (1111y cvInbird, as well as proofofany required consent to Stich nlodlflriltion by lilt. iterl%ft-wd O\wncr of Ihr Bondi Own Oul,lauding. It shall not be necessary to note on any oflhr ()n{slan(hn)t Bolids loly wk-wiwc 111 ,rich atm-ndment or modilic,ation. A certified copy ol' every such anu'tld.tioly of mid ii rrrrlifit'd copy of' this Ordinance shall be nlildc availilble lot. ills) rt'lioll by Illy kcvlI dcic•d ( h\orI of mi\ Bond or it prospective purchaser or owner of ally Itorld alithorvrd by 1111', ( )rd11lancv, ;Intl 111,(111 pit}nit'nl of lilt' Irasonahlc cost of pl'eparitlg the sanu', a t't'rlilit'd copy of;Illy �,ticll ;11nt•nd;IlolY of snplrlenn iii;il procceditips or ol'tIiis Ordinance will be sent by (lit- ('ily ( 'It'll. In ;nly sltrli livildomit'l (tI plw,pv, ll\c Hondowic.r. The t'il ' shnll Ilnnr•h to lilt' P mil p AI-t-111 ;1 co 1. of ;111 • allwildillcM to the Bonds or this OrdlllallCC nladr hrrt'uudt't \%hic•il a1f,t t, lilt' dmirr', r,r nbhl'nnon', of 11It' Pilyim,, Agent under this OI'dinnlirt'. Aliv 1'aillip l)!vIu'w Own 1111111, ilu' lit ilk Iilll'.1 heel\t' Ilt,llt'r ill, r;lcl) alilclldlllclll and (1 copy thert'ofaf It'asl IS day." ml n(1\Mwv tit'it,. t',xt-tltlon ill ,t(Iollnon I hr Bond lIl'L'I't'l' shall he provided with a full Ininscripl ofall Iu(Irrrdlu) :, Icl;tunl� W fill' r\rcnuon o1 ;Inv sin h anlrndnit'nt or sullplcnu.nt. Section I:02, loticrN, Umilwill., lin(I (tiller I list r'un1vill" by Bondm lIvI.S. Any notice, consent, rrg11rsf, dlrcution, ilppim;(l, oblt'diom (if uthcr In•,Uuluent w(Itilred 11v till"; Ordinance to be Si1:lIC(I and eXec'lllUtl 11)' Ibe liololo\wlrt•r', 1114' b(' 111 ,Inl' IiUtllht'I of t•u11cl1lrt'lll \wrllings of silllilal- tenor kind nla,y he signed or rxrelut'd by ',11th Bomdo\\ors•, Ill In'Ison or Ily ;lf"rnl ;Ippomllud ill writing. Proof of 1110 execution ofany such 11I'Irunlr11t or u) tilt' \truth)" ;Ippolmin)". ;illy such ngrnl and of the ownership of Bonds (except li►r lilt' w;silcnlot'nf till o\wnrl',hlp tIf a Bowl a'. p1m ldc it for 111 Ibr lilrin of Bond set Birth in lit,\hibit A herelo), if made in Illy follmwml), 1111111110. >Jlall Ilk, ',ufflcirnl for ally of file purposes of this Ordinance, alld ''ihall he conchisivc ill f0voi tit tilt' ( 'ity imd lilt, haying Agent \wllh 1't-pa 'd to ally ilctloll taken, suflt.rcd or ontllled midri illy 'iuvh ilv,II ilwilt, Il;inirls (a) Tilt, lint and dale of tilt, t'xrr11lforl by ally prr�,o11 (11'ally 'uch instrument nlay be pr'11\•ed h.N' a Ct.'I'llfll'illt' of ally 01flt't'l ill ill)\' .1111r;dirlinn \who 11y lit\\' has po\wci 111 take acknowlcd),nlcnis \w1lhin stick jill I-Alctioll Ihal Ihr prltio11 .1),nulil 'uc'h insilmiuont acknowledged befol'1. slich t►fflet'r lilt, (1vi.1111011 lilt')C01, (11 11w ill 1'1(1;1\II III ;tilt \\11lit'Y, Ill atli'll cXecilllon. ! (b) 'Ilse klt:l 01 omivlr,hlp of Bonds, the immilllt of anlimlits, miller;; and other identification of Bond.', ;ind Cllr daft. Ill boldilly the sallir tillilll br prowrd by Ihr Bond Register. .i I In determining whether the Registered Owners of the requisite principal amount of Bonds Outstanding have given any request,dentarld,authorization,direction, notice,consent or waiver under this Ordinance, Bonds owned by the City shall lie disregarded and deemed not to lie Outstanding under this Ordinance,except that, in determining whether the Bonclowners shall be protected in relying upon any such request,demand,authorization,direct ion,notice,consent or waiver,only Bonds which the Bondowners know to be so owned shall be so disregarded. Notwilhstanding the lbregoing, Bonds so owned which have been pledged in good faith shall not be clisregarcicd as aforesaid il'the pledgee establishes to the satisfiaction ofthe Bondowners the pledgee's right so to let with respect to such Bonds and that the pledgee is not the City. Section 1203. Reporting Requirements. The Holld lnsurcr shall he provided with the Hollowing information: (a) Notice ofany drawing upon or dclicicrrry due to market fluctuation in the anuxlnl in the Debt Service Reserve Acc:oUlll. (b) Notice of the redemption of ally of the Bonds ot.oI ally ;rdvance refunding • f,the Bonds, including the principal amount. maturities and (_'USIP number~ Ihcrcol'. (c) Notice ofany material events pursuant to Rule 15c2-12 under the Securities lixchange Act of 1934. (d) Such additional inliornurtion as the hoed Insurer may reasonably rcduesl frO time to time. The notice addresses for the Bond Insurer and the Fiscal Agent under the Bond Insurance Policy are as follows: Financial Guaranty Insurance t:'onrpany 125 Park Avenue New York, New York 10017 Attention: Risk Management Stat Street Bank and 'Trust Company, N.A. 61 Broadway New York, New York 10006 Attention: Corporate Trust Department Section 1204. Further Authority. The 0(11I e' 01'(11C City. including the Mayan and City Clerk, shall be,and they hereby arc,autllorizecl and directed to execute all documents and take such actions as they may deem necessary or advisable in order to carry out and pCI-fornl the purposes of this Ordinance and to make ministerial alterations,changes of additions in the l'oregoing agreements,statements, instruments and other documents lierein approved, authorized and eonlirnrcd which they rrcry apprrove and the execution or taking ot'such action shall be conclusive evidence of such necessity or advisability. Section 1205. Severability. 11'any section or other part ol'this Ordinance,whether large ol•small, shall for any reason be held invalid,the invalidity thereol'shall not all'uct the validity ol'the other provisiolls of'this Ordinance. -32- Section 1206. Governing Law. This Ordinance shall be governed exclusively by and constructed in accordance with the applicable laws of the State of Missouri. Section 1207. Effective Date. This Ordinance shall take effect and be in full force from and after its passage by the Council and approval by the Mayor. PASSED by the Council of the City ofJefferson, Missouri,and APPROVED by the Mayor this 181" day of November, 2002. Passed: �' /f�" ,%;!r% Approve: ,ZIL-- residing Officer Mayor ATTEST: APPROVE-J) AS TO FORM: City Clerk �' City Cot elor (SEAL) -33- 1:\1 1 1131'1'�1 TO ORDINANCE FORE OF BOND EXCEPT AS OTIiERNViSE; PROVIDED IN TIiEI ORDiNANCE. (DESCRiBED HEREiN), 1.1115 GLOBAL, BOND MAY BE TRANSFERRED, IN WHOLE BUT NOT IN PART, ONLY TO ANOTHER NOMINEE OED TEIF. SECURITIES DEPOSITORYY (DES( REBF,1) iEERF,IN) OR TO A SUCCESSOR SECURITIES DEPOSITORY Olt 'T'O A NO11TNEE OF A SUCCF,SSOR SECURITIES DEE'OSTTO1tY. UNITED STATES OFAMERICA STATE? OF;INEISSOIWI Registered Registered No. S CI'E'l'UE JE?hF1:RSO,N`, ;MISSOURi SEINVERAGE. SYS"T'EJi REIVEN11E BOND SERIES 2002 Interest Rate, i hOurity Date Dated Date CEtS1P NlllIm'r November 1, 2002 472556 REGISTERED ONVNER: CEDE &c CO. PRINCIPAL AMOUNT: DOLLARS TiEE CiTY OI'.IEFi I?RSON, ,NIISSo IIRI, a home rule charter cite and a political subdivision of the State Of Missouri (the "City"'), Ibr Value 1'CCCiVed, 1lC:rcby promises to pay to the Registcred Owner shown above, or registered assigns, but solely frnnl the source and in the manner herein specified, the Principal Amount shown above on the Maturity Date Shown ahOVC, unless called for rCdemption prior to said Maturity Date, and to pay interest thereon. but SOICly front the source and in the manner herein specified, at the Interest Rate per annual shown above (Conll)lltCd Oil file basis oI a 360-Clay year of twelve 30-day months) from the Dated i)ate shown above or from the most recent Interest Payment Date to which interest has been paid of (1ui)' providCd fi r, payable scnliunnually on May 1 and November 1 in each year, beginning on May 1, 2003, until SIM] Principal A►llount has been paid. The Principal Amount or Redemption trice of this Bond shall be paid at Maturity or upon earlier redemption by check or draft to the Person in whose name this Bond is registered at the Maturity or Redemption Date thereof, upon presentation and surrender of this Bond at the principal payment U.S. BANK, N.A., St. Louis, Missouri (the "Paying Agent"). The interest payable on this Bond on any Interest Payment Date shall be paid to the Person ill whose natile this Bond is registered on the Bond Register at the close of business on the Record DatC 101' SLICK ill1er'CSt (being the 15th da)', whether of not a Business Day, of the calendar month next preceding the Interest Payment F)atc) by check or drall mailed by the ® Paying Agent to such Registered Owner at the address shown on the Bond Register or, in the case of an interest payment to any Registered Owner of~500,000 or more in aggregate principal amount of Bonds, by electronic transfer to such Registered Owner upon written notice signed by such Registered Owncr and given to the Paying Agent not less than i5 days prior to the RCCOrd Date 101' SUCK interest Containing the electronic transfer InStRICtions including the hang: (which shall be in the continental United States), address, A13A routing nnliber and account nunlber to whreh Such Registered Owner wishes to have such transfer directed. This Bond is one of a duly authorized series of bonds of the City designated "Sewerage System Revenue Bonds, Series 2002," aggregating the principal amount of.55,555,000 (the "Bonds"), issued by the City for the purpose of improving and extending the City's sewerage system (said sewerage system, together with all fixture improvements and extensions thereto hcreafler constructed or acquired by the City, being herein called the "Systcril"), under the authority of and in fill compliance with the Constitution and laws of the State of Missouri, including pa►'ticularly Chapter 250, IZSMo, and pursuant to an election duly held in the City and an ordinance duly passed by the COlncil of the City (herein called the "Ordinance"). Capitalized terms used 11CPCIII and not othcrwisC dcfinc(I herein shall have the nicanings assigned to such terms in the Ordinance. At the option of the City, Bonds or portion, thereof IllatUrIng on November 1, 2012, and thereafter may be called for rcdcnlption and payment ilriOr to maturity on November I, 2011, and thereafter in whole or in part at any time in such amounts [in• cash maturity as shall be dCtCl'111i11Cd by the City (Bonds of less than a }till maturity to be selected in tlu1161)ICS of S5,000 principal a111011nt 111 SLICii equitable planner as the Paying Agent shall designate) at the Redemption Price of 100% of the principal amount thereof, plus accrued interest thereon to the Redemption Date. At the option of the City, Bonds or p01'tl(li1S tI1Cr'COf illatLlr'lllg (111 or after November 1, 2006, may be called for redemption and payment prior to the Stated lklaturity thereof on November 1, 2005, and thereafter in whole or in part at any tinge at the Redemption Price of I oo(/,, of the principal alllOLlllt thereof, plus accrued interest thereon to the Redemption Date, to the extent the City refinances all or any portion of'tile Improvements financed with the Bonds under the Missouri Leverage Stale Water Pollution Control Revolving hind. Notice of'redemption, unless waived, is to be given by the Paying Agent by mailing an official redemption notice by first class mail at least 30 days prior to the Redemption Date, to the original Purchaser of the Bonds and to each Registered Owner of each of'the Bonds to be redeemed at tile. address shown on the Bond Register. Notice of redemption having been given as afimresaid, tile Bonds or portions of Bonds to be redeemed shall, on the Redemption Datc, become due and payable at the Redemption Price therein speciried, and }groin and after such date (unless the City defaults in the payment of the Redemption Price) such Bonds or portions of Bonds shall cease to bear interest. The Bonds are being issued by means of a book-entry system with no physical distribution of bond certificates to be made except as provided in the Ordinance. One Bond certificate with respect to each date on which the Bonds are stated to mature, registered in file nominee rlallic of the SCCLIritiCS Depository, is being issued and required to be deposited with the Securities Depository and in-lnlobilized in its custody. The book-entry system will evidence IlositionS held in the Bonds by the Securities Depository's participants, beneficial ownership of the Bonds in authorized denominations being evidenced in the records of such participants. 'Transfers Of ownership shall be effected oil the records of the Sccuritics Depository and its participants pursuant to rules and procedures established by the Securities Depository and its participants. The City and the [',,lying Agent will recognize the "SeCllritiCS Depository nominee, while the registered owner of this Bond, as the owner of this Bond for all purposes, 111C111d111g (1) payments of principal or, and I'C(IC'llpl1011 prCllllillll, if any, and Interest oil, this Bond, (ii) notices and (iii) voling. Transfers of principal, interest and any redemption premium paynicntS to • participants of the Securities Depository, and transfers of'principal, interest and any redemption premium payments to beneficial owners of the Bonds by particip(ults of the Secm'ities Depository will be the responsibility of such participants and other nominees of such beneficial owners. The City and the Paying Agent will not be responsible or liable for such transfers of payments or fin• maintaining, supervising or reviewing the records maintained by the Securities Depository, the Sccuritics I:)cpository nonlincc, its participants or pcl'sons acting through such participants. While the Sccuritics Depository nonlincc is the owner of this Bond, notwithstanding the provision hereinabove contained, payments of principal of and interest oil this Bond shall be made ill accordance with existing arrangements among the City, the Paying Agent and the Securities Depository. EXCEPT AS OTHERWISE PROVIDEID iN THE,, ORDINANCI?, THIS GLOBAL. BONI) MAV BE TRANSFERRED, IN 1VHOLEI BUT NOT iN PART, ONLY TO ANOTHER NOMINEE OF THE SECURITIE'S DEPOSiTOR), (m I,() A SUCC:I?SSOR SECURITH,:S DEPOSITORY Olt TO A NOiXIINEE Oh A SUCCESSOR SECURITIES ES DEPOSI'T'ORY. 'file Bonds arc issued in fully registered form in the dcnomination of $5,000 or any integral multiple thereof. This Bond may he exchanged at the office of* the Paying Agent for a like aggregate principal amount of Bonds of the sane maturity Of other authoriMl denominations upon the terms provided ill the Ordinance. .l his Bond is transferable by the Registered Owner llcrcof in person or by the Registered Owner's agent duly aLltIl01'iZCl1 ill Writing, at the office ol'the Paying Agent, but only in the manner. subject to the limitations and upon payment of the charges provided in the Ordinance and upon surrender and cancellation of*this Bond. Pile City shall pay all costs incurred in connection with the issuance, payll1Cnt and initial registration ofthc 13011lls and the cast ofa reasonable supply ofbond blanks." The Bonds are special obligations of'tile City payable solely f-Oill, and sccurcd as to the payment of'principal and interest by a pledge of, the Net RC\'CnUCS ol'the `.system, and the taxing power of the City ! is not pledged to the payment of the Bonds cither as to principal or interest. The Bonds shall not be or constitu a te general obligation ot'the City, nor shall they constitute an indcbtcdness of the City within the nlcanulg of ally constilu6011,11, statutory or charter provision, limitation or restriction. The L3onds stand on a parity and are equally and ratably secured will) respect to the paylimit of principal and interest from the Net RCVCIIUCS and in all other respects with an issue of Sewerage System Improvement and Refunding Revenue Bonds (State Revolving duel Program), Series 200113, of the City. dated November 1, 2001. Under the conditions set forth ill the Ordinance, the City has the right to issue additional parity bonds and other obligations payable lrom and secured by the Net Rcvcnucs; provided, however, that such additional bonds may be so issued Only in accordance with and subject to the covenants, conditions and restrictions relating thereto set lortll ill the Ordinance. "Ihe City hcrcbv covenants and agrees with the iZcgistcrcll Owner of this Bond that it will keep and perlorm all covenants and agreciiients contained ill the Ordinance, and will fix, establish, maintalll and collect such rates, fees and charges Im the use and services furnished by or through the System as will producC Rcvcnucs suflicicnt to pay the costs of operation and I11a ill tenalice of the System, pay the principal of and interest on the 130111I5 as and when file same hecornc duc, and provide reasonable and adequate reserve funds. Reference is made to the Ordinance tin• a description of the covenants and agreements made by the City with respect to the collection, segregation and application of 1110 Rcvcnucs of the System, the nature and extent of,the security of the Bonds, the rights, duties and obligations of tllc City with respect thereto, and the rights of the Registered Owners thereof. This Bond may be transfcrrcd or exchanged, as provided in the Ordinance, only on the Bond Resister kept for that pin-posc at the principal payment oflicc ol'the Paying Agent, upon surrender ol'this Bond together with a written instrument of transfer or exchange satisfactory to the Paving Agent duly executed by the Registered Owner or the Registered Owner's duly authorized agent, and thercupan a new Bond or Bonds in ally a1.10106Z.Cd delloilllllatloll having the sank Maturity Date and in the same aggregate principal amount shall be issued to the transferee in exchange thcrefbr as provided in the Ordinance and upon payment of the charges therein prescribed. The City and the Paying Agent may dcclll and treat the Person in whose name this Bond is registered on the Bond Register as the absolute owner hereof for the purpose of receiving payment of, or on account of', the principal or redemption price hereof and interest due hereon and for all other purposes and neither the District nor the Paying Agent shall be affected by any notice to the contrary. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Ordinance until the Certificate of Authentication hereon has been executed by the Paying Agent. IT IS IIEiIE13Y CERTIFIED AND DECLARED that all acts, conditions and things required to exist, happen and be performed precedent to and in the issuance of the Bonds have existed, happened and been performed in due time, form and manner as required by law, and that before the issuance of the Bonds, provision has been duly made fin• the collection and segregation of the Revenues of the System and for the application of the same as provided in the Ordinance. IN WITNESS WHEREOF, THE, CITY OF JEFFERSON, NIISSOURI, has executed this Bond by causing it to be signed by the manual or facsimile signature of its Mayor and attested by the manual or facsimile signature of its City ("'Ierk and its official seal to be affixed hereto or imprinted hereon. CER'T'IFICATE 0FA1J'1'IIENTICA'1'I0N CITY OFJEFFLRSON, MISSOURI This Bond is one of the Bonds ol'the issue described ►n the within-mentioned Ordinance. By: Mayor Registration Date: U.S. BANK, N.A., (S1;AI-) .Paying Agent A'I`ITGST: By: Authorized Signatory City Clerk S'IA'IIh9EN'f m INSURANCE a. r' 9 i ( t Y ( it : A y(! r t > it a tf 4 j AA7� ASSIGNMENT FOR VALUE: RECEIVED, 1,110 undersigned hereby sells,assigns and transfers UntO Print or Type Name,Address and Social Security Number or other Taxpayer IdcntiIic:ation Number of'1'ransfcrce the within Fond and all rights thereunder, and hereby irrevocably constitutes and appoints agent to transfer the within Bond on the Bond Register kept by the Paying Agent for the registration thereof', with full power of substitution in the premises. Dated: NOTICE: The signature to this assignment must correspond with the name of the Registered Owner as it appears upon the face of the within Bond in every particular. Signature Guaranteed By: (Name of' I'ligible Guarantor Institution as defined by SEC Rule 17 Ad-15 (17 CFR.240.17 Ad-15)) BY: r -- _ Title: ,t. LEGAI,OPINION The following is a true and correct copy of the approving legal opinion of Gilmore& Bell, RC., Bond Counsel,which was dated and issue([as of the elate oforiginal Issuance and delivery of the Bonds: G11. MORE & REL L, P.C. 2405 Grand Roulevard, Suite 1100 : Kansas City, IMissouri 64108-2521 (LEGAL OPINION OF BOND COUNSIiL) • t ti Y �i'0101 OF BOND COUNSI?LONINIONJ (Closing Date] City of'JeMcrson, Missouri U.S. Bancorp Piper Jaffi•ay Inc. Kansas City, Missouri Rc: $5,555,000 the City of .Icflcrson, Missouri, Scwcrage System Rcvenuc Bonds, Series 2002 Ladies and Gentlemen: We have acted as build colalsel In Connection With the ISSliancc by the City of'killerson, Missouri (tile "City") of the above-captioned Bonds (tile "Bonds"), pursuant to an Ordinance passed by the governing body ol'the City (the "Ordinance"). Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms In the Ordinance. We hnve examined the law and such certified proceedings and other docun'ICnis as we deem necessary to render this opinion. As to (lucstions of tact material to our opinion, we have relied upon the certified proceedings and other certifications of puhli0 officials furnished to us without undertaking to verify the same by independent investigation. Based upon the lOregaing, we are ol'the opinion, under existing law, as tullows: 1. The Bonds have been duly authorized, executed and delivered by the City and are valid and legally binding special obligations ol'the City, payable solely from the Net RevenalCS al'the System. The Bonds do not constitute general obligations ol'the City nor do they constitute an indebtedness of'tile City within tale nlcalling of any constitutional or statutory provision, limitation or restriction, and the taxing power of the City is not pledged to the payment of*tile Bonds. 2. The Ordinance has been duly passed by the City and constitutes a valid and legally binding obligation ol'the City enlurecable against the City. 3. The Bonds stand on a parity with respect to the payment of principal and interest and in all other respects with (i) an issue of Sewerage System Improvement and Refunding Revenue Bonds, Series 2001 B, ol'the City dated November 1, 2001, in the original principal amount of$24,875,000, 4, 'The interest on the Bonds (including .Illy original ►SSLIC discount properly allocable to an owner thereof) is excluded trout gross income fur federal and Missouri incorne tax purposes and is not an item of tax preference for purposes of the federal alternative minim urn tax unposed oil individuals and corporations. It should be noted, however, that Im the purpose of computing the alternative I111Illllll1l11 tar y . • 1 imposed on corporations (as defined for federal income tax purposes), such interest is taken into account in determining Adjusted current earnings. The opinions set forth in this paragraph are subject to the condition that the City comply with all requirements of'the internal Revenue Code of 1986, as amended (the "Code"), that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon . be, or continue to be, excluded from gross income for federal and Missouri income tax purposes. The City has covenanted to comply with each such requirement. Failure to comply with certain of such requirements may cause the inclusion of interest on the Bonds in gross income for federal and Missouri income tax purposes retroactive to the date of issuance of the Bonds. The Bonds arc "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Code, and, in the case of certain financial institutions (within the meaning of Section 265(b)(5) of the Code), a deduction is allowed for 80 percent of that portion of such financial institutions' interest expense allocable to interest on the Bonds. We express no opinion regarding other federal tax Consequences arising with respect to the Bonds. The rights of the owners of the Bonds and the enforceability of the Bonds and the Ordinance may be subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights heretofore or hereafter enacted to the extent applicable and their enforcement may be subject to the exercise Of jUdieal discretion in appropriate cases. Very truly yours, i z rx EXHIBIT B M TO.ORDINANCE f FORM OF LETTER Or REPRESENTATION 1 ^:i � r t � i :1 f _ i w iC CJ s' •t7 L+'Xi1[I3I'1'C TO OItDINANCr AGREEMENT FORM OF CONTINUING DISCLOSURE : ; Y f: ,t5 f AGREEMENT RELATING TO PAYING AGENCY, REGISTRAR AND TRANSFER AGENCY THIS AGREEMENT made this 26th day of November, 2002, by and between the City of Jefferson, MO, State of Missouri (the "Issuer") and U.S. Batik National Association (the "Agent"), an association duly organized and existing under the laws of the United States, WITNESSETH that the Issuer has by Official Statement adopted on November, 1 2002, authorized the issuance of$5,555,000 Sewerage System Revenue Bonds, Series 2002(the "Bonds"); and that the Issuer has designated the Agent as the paying agent, registrar and transfer agent for the Bonds. NOW THEREFORE, the Issuer and the Agent, each in consideration of the representations, covenants and agreements of the other as set forth herein, mutually represent, covenant and agree as follows: Section 1. Agent's Duties. 1.1. Registrar. 'file Agent shall keep at its principal corporate trust office a Bond Register in which the Registrar shall provide for the registration of ownership of the bonds and the registration of transfers and exchanges of the Bonds entitled to be registered, transferred or exchanged. 1.2. Transfer of Bonds. Upon surrender to the Agent for transfer of any Bond duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory to the Agent duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, together with a guarantee of the signature satisfactory to the Agent, the Agent shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a like aggregate principal amount and maturity, as requested by the transferer. The Agent may, however, close the books for registration of any transfer after the 15th day of the month preceding each interest payment date and until such interest payment date. 1.3. Exchange of Bonds. Whenever any Bonds are surrendered to the Agent for exchange the Agent shall authenticate and deliver the Bonds which, under the authorizing resolution, the owner making the exchange is entitled to receive. 1.4. Cancellation. All obligations or coupons surrendered upon any transfer or exchange and unissued inventory at maturity shall be canceled by the Agent and a destroyed pursuant to Minnesota statutes 475,553, subd 2, unless otherwise directed by the Issuer. 1.5. Improper or Unauthorized Transfer. When any Bond is presented to the Agent for transfer, the Agent may refirsc to transfer the same until it is satisfied that the endorsement on such Bond or written instrument of transfer is valid and genuine and the requested transfer is legally authorized. The Agent shall incur no liability for the refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. 1.6. Persons Deemed Owners. The Agent shall treat the person in whose name any Bond is at any time registered in the Bond Register as the absolute owner of such Bond, whether such Bond shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on such Bond and for all other purposes, and all such payments so made to any such registered owner or upon his order shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid. 1.7. Taxes, Fees and Charges. For every transfer or exchange of Bonds the Agent may impose upon the owner thereof a charge sufficient to pay or reimburse the Agent for any tax, fee or other governmental charge required to be paid with respect to such transfer or exchange. 1.8. Mutilated, Lost, Stolen or Destroyed Bonds. In case any Bond shall become mutilated or be destroyed, stolen or lost, the Agent shall deliver a new Bond of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of any such mutilated Bond or in lieu of and in substitution for any such Bond destroyed, stolen or lost, upon the payment of the reasonable expenses and charges of the Agent in connection therewith; and, in the case of a Bond destroyed, stolen or lost, upon filing by the owner with the Agent of evidence satisfactory to it that such Bond was destroyed, stolen or lost, and of the ownership thereof, and upon furnishing to the Agent of an appropriate bond of indemnity in form, substance and amount as may be required by law and as is satisfactory to the Agent, in which bond the Issuer and the Agent shall be named as obligees. All Bonds so surrendered to the Agent shall be canceled by it and evidence of such cancellation shall be given to the Issuer. If the mutilated, destroyed, stolen or lost Bond has already matured or been called for redemption in accordance with its terms it shall not be necessary to issue a new Bond prior to payment, provided that the owner shall first provide the Agent with a bond of indemnity as set forth above, 1.9. Records, Statements, Payment of Interest and Princes. The Agent shall: (a) keep true and accurate accounts of the outstanding principal balance of the Bonds; • r (b) not less than thirty (30) days before the due date orally principal of or interest on the Bonds, seild a statement to the Issuer of the amount which will be required to pay the principal of and interest on the Bonds on such date; (c) pay such of the interest on the Bonds as is due on each stated interest payment date, with the funds received fl•onl the Issucr, by check or draft mailed, no later than tile interest payment (late, to the registered owners of the Bonds as of the close of business on the 1 5th day (whether or not a business (lay) of the preceding month, at their addresses as they appear on the Bond Register; if the Issuer provides the Agent with suf(icicllt funds to make such payment prior to any interest payment date, the Agent shall mail such checks or drafts at the close of business on the last business (lay preceding; such interest payment date; (d) pay such of the principal of the Bonds as is due on the stated payment dates, with the fiends received from the Issuer, upon p►•csentation of the Bonds for payment; (e) forthwith upon presentation and payment of the bonds cancel the same and retain and dispose of the same in the manner set forth in Section 1.4 hcreo t, and The Agent shall not be required to pay interest on any funds of the Issucr for any period during;which such funds are held by the Agent awaiting the presentation of the Bonds for payment. Any funds remaining; in the possession of the Agent f'or payincllt of the Bonds ® three (3) years afier the date for the payment thereof has expired shall, subject to any applicable escheat law, be returned to the Issuer upon demand. 1.10. Instructions from issuer. The Agent in respcct to ally hatter arising; ill connection with said agency, may apply to, and act under the instructions of, the l'i ►��'i' al.' fit' of the Issucr, and, in respect to any legal question arising i connection with said agency, play apply to, and act under the instructions of the L ► I"�! Cot' Vl I'L/' l.l 1. Delivery of Records to Issuer; Retention. The Agent may, from tinge to time at its discretion, deliver to the Issuer, for safekeeping or disposition by the Issuer in accordance with law, such records accumulated in the performance of its duties as it may deem expedient, and the Issuer assumes all responsibility for any failure thereafter to produce any paper, record or document so returned, if and when inquired. Section 2. Issuer's Duties. 2.1. Provision of the Executed Bonds. 'rhe .issuer shall provide the Agent with such executed Bonds as are required to issue the Bonds in exchange foe•or upon transfer Of outstanding Bonds. 2.2. Provision of Funds to pay Princi mt and Interest. The Issuer may pay the Agent for the interest and principal clue by check, however, the check must be received by the Agent for deposit no later than three business clays before the debt service payment date in order for the bondholder payments to be released on the payment date. In order to release checks a business day prior to paymcnt date, the check must be received by the Agent four business days prior to payment date. Check payments received from the Issuer after the deadline will result in bondholder payments being released after a three business day clearance. If the Issuer pays by wire, the wire should be sent to the Agent one (1) business day prior to the debt service paymcnt date. 2.3. Payment of Fees and Charges of Agent. The issuer shall pay to the Agent reasonable fees and charges for services performed hereunder in accordance with the Registrar's fee schedule in effect at the time of the service. The fees and charges of said Agent shall in no event become a charge against the fiends remitted by the Issuer for payment of principal and interest on the Bonds. 2.4. Failure to Provide Funds. If available limds needed for payment do not reach the Agent by any interest payment date, payment of items may be 1-crused and the Issuer may be charged for reasonable expenses incurred and extra service performed in accordance with the Agent's schedule in effect at the time of the payment date. 2.5. Indemnification. The Issuer shall indemnify and save the Agent harmless from and against any loss, cost, charge, expense,judgment or liability which it may incur in the exercise of its powers and duties hereunder and which are not due to its negligence or default. Section 3. Termination, Either party may terminate this agreement by written notice mailed to the other party at least thirty (30) clays prior to termination date, upon which event the Agent shall return all cash and Bonds in its possession to the Issuer Or its order and shall deliver the Bond Register to the Issuer or its order, and the Issuer shall pay any accn►ed and unpaid service charges to the Agent. IN WITNESS WHEREOF, the Issuer and the Agent have caused this -igrecnyent to be executed in their respective names by their duly authorized representatives, in two counterparts, each of which shall be deemed,in original. Aved ,FoiTt1` ity of Jefferson, 9 Gi"� State of Missouri City uh"selor By ,Its a (SEAL) By Its City Clei k U.S. BANK NA'1'10NAL ASSOCIATION Agent By Its "Assistant" Vice President /''�