HomeMy Public PortalAbout1996-02 Bonds0
ORDINANCE NO. 1996 -2
ORDINANCE AUTHORIZING THE CITY OF GREENCASTLE TO ISSUE
UP TO $8,300,000 OF ITS VARIABLE RATE INDUSTRIAL
DEVELOPMENT REVENUE BONDS, SERIES 1996 (CROWN EQUIPMENT
CORPORATION PROJECT) AND APPROVING OTHER ACTIONS IN
RESPECT THERETO
WHEREAS, the Greencastle Economic Development
Commission (the "Commission ") has rendered its Project Report for
the Crown Equipment Corporation Project (the "Report ") regarding
the financing of proposed economic development facilities through
the issuance by the City of Greencastle, a municipal corporation
organized and validly existing under the laws of the State of
Indiana (the "Issuer "), of its Variable Rate Industrial
Development Revenue Bonds, Series 1996 (Crown Equipment
Corporation Project) in the aggregate principal amount of up to
$8,300,000 (the "Bonds ") for the benefit of Crown Equipment
Corporation, an Ohio corporation (the "Company "); and
WHEREAS, the Report has been sent to the Greencastle
o Plan Commission for comment; and
WHEREAS, the Commission conducted a public hearing on
January 17, 1996, and adopted a resolution on January 17, 1996,
which Resolution has been transmitted hereto, finding that the
financing of certain economic development facilities of the
Company complies with the provisions of Indiana Code, Title 36,
Article 7, Chapters 11.9 and 12 (the "Act ") and that such
financing will be of benefit to the health and welfare of the
Issuer and its citizens; and
WHEREAS, the Commission has heretofore approved and
recommended the adoption of this form of Ordinance by this Common
Council, has considered the issue of adverse competitive effect
and has approved the forms of and has transmitted for approval by
the Common Council the Loan Agreement, the Note, the Trust
Indenture, the Bonds, the Placement Agreement and the Preliminary
Private Placement Memorandum for the Bonds;
NOW THEREFORE, BE IT ORDAINED by the Common Council of
the City of Greencastle, Indiana (the "Governing Body "):
Section 1. Definitions In addition to the words and
terms elsewhere defined in this Ordinance and used herein as
defined words and terms, all capitalized words and terms as used
in this Ordinance shall have the meanings assigned to such words
® and terms in the Indenture or in the Loan Agreement herein
authorized, unless the context or use clearly indicates another
or different meaning or intent.
. Any reference herein to the Issuer, to the Governing
Body, or to any officers thereof, shall include any entity which
succeeds to its or their functions, duties or responsibilities
pursuant to or by operation of law. Any reference to a section
or provision of the Indiana Constitution or the Act or to a
section, provision or chapter of the Indiana Code shall include
such section or provision or chapter as from time to time
amended, modified, revised, supplemented, or superseded;
provided, however, that no such change in the Constitution or
laws (a) shall alter the obligation to pay the Revenues in the
amounts and manner, at the times, and from the sources provided
in the Ordinance and the Indenture, except as otherwise herein
permitted or (b) shall be deemed applicable by reason of this
provision if such change would in any way constitute an
impairment of the rights of the Issuer or the Company under the
Loan Agreement or the Indenture.
Unless the context shall otherwise indicate, words
importing the singular number shall include the plural number,
and vice versa, and the terms "hereof ", "hereby ", "hereto ",
"hereunder ", and similar terms, mean this Ordinance and the
Indenture.
Section 2. Determinations of Governing Bcdv The
Governing Body hereby finds and determines that (a) the financing
. of the economic development facilities referred to in the Loan
Agreement approved by the Commission and presented to the
Governing Body, the issuance of the Bonds, the loan of the
proceeds of the Bonds to the Company for the financing of the
acquisition, construction, installing, equipping, furnishing and
renovation of such facilities, the payment of the Bonds by the
payments of the Company under the Loan Agreement and Note
(subject to credit as provided in the Loan Agreement for payments
made pursuant to draws on the Letter of Credit), and the securing
of the Bonds by the Trust Indenture and the Letter of Credit
complies with the provisions and the purposes of the Act and will
be of benefit to the health and welfare of the Issuer and its
citizens and complies with the Act, (b) such economic development
facilities consist of an existing building located at 2600 State
Road 240 East, Greencastle, Indiana to be renovated by the
Company and manufacturing equipment to be acquired by the Company
and installed in such building, which are to be owned and
operated by the Company and used for the manufacture of lift
trucks (the "Project "), and (c) at the public hearing held by the
Commission, the Commission considered whether the Project would
have an adverse competitive effect on any similar facilities
located in or near the Issuer, and subsequently found, based on
special findings of fact set forth in the Resolution transmitted
hereto, that the Project would not have an adverse competitive
effect.
•
-2-
" S e c t i o n 3 . F i n a n c i n g A g r e e m e n t T h e s u b s t a n t i a l l y
f i n a l f o r m s o f t h e L o a n A g r e e m e n t , t h e N o t e , t h e T r u s t I n d e n t u r e ,
t h e B o n d s , t h e P l a c e m e n t A g r e e m e n t a n d t h e P r e l i m i n a r y P r i v a t e
P l a c e m e n t M e m o r a n d u m f o r t h e B o n d s , a n d t h e f i n a n c i n g
c o n t e m p l a t e d t h e r e b y , a p p r o v e d b y t h e C o m m i s s i o n a r e h e r e b y
a p p r o v e d ( h e r e i n c o l l e c t i v e l y r e f e r r e d t o a s t h e " F i n a n c i n g
A g r e e m e n t " r e f e r r e d t o i n t h e A c t ) . I n a c c o r d a n c e w i t h S e c t i o n
3 6 - 1 - 5 - 4 o f t h e I n d i a n a C o d e , t w o c o p i e s o f t h e F i n a n c i n g
A g r e e m e n t a r e o n f i l e i n t h e o f f i c e o f t h e C l e r k - T r e a s u r e r f o r
p u b l i c i n s p e c t i o n .
S e c t i o n 4 . A u t h o r i z a t i o n a n d T e r m s o f B o n d s I t i s
h e r e b y d e t e r m i n e d t o b e n e c e s s a r y t o , a n d t h e I s s u e r s h a l l ,
i s s u e , s e l l a n d d e l i v e r , a s p r o v i d e d a n d a u t h o r i z e d h e r e i n a n d
p u r s u a n t t o t h e a u t h o r i t y o f t h e A c t , t h e B o n d s i n a n a g g r e g a t e
p r i n c i p a l a m o u n t n o t t o e x c e e d $ 8 , 3 0 0 , 0 0 0 f o r t h e . p u r p o s e o f
a s s i s t i n g t h e C o m p a n y i n f i n a n c i n g a c q u i s i t i o n , c o n s t r u c t i o n ,
i n s t a l l i n g , e q u i p p i n g , f u r n i s h i n g a n d r e n o v a t i o n o f t h e P r o j e c t .
T h e B o n d s s h a l l b e d e s i g n a t e d " V a r i a b l e R a t e I n d u s t r i a l
D e v e l o p m e n t R e v e n u e B o n d s , S e r i e s 1 9 9 6 ( C r o w n E q u i p m e n t
C o r p o r a t i o n P r o j e c t ) " .
T h e B o n d s s h a l l b e i s s u e d i n f u l l y - r e g i s t e r e d f o r m a n d
s h a l l b e e x c h a n g e a b l e a n d t r a n s f e r a b l e i n t h e m a n n e r a n d o n t h e
t e r m s p r o v i d e d i n t h e I n d e n t u r e . B o n d s s h a l l b e i n t h e
" d e n o m i n a t i o n s a n d s h a l l b e n u m b e r e d a s p r o v i d e d i n t h e I n d e n t u r e .
T h e B o n d s i n i t i a l l y d e l i v e r e d o r i s s u e d p r i o r t o t h e f i r s t
B u s i n e s s D a y o f A p r i l , 1 9 9 6 s h a l l b e d a t e d t h e d a t e o f o r i g i n a l
i s s u a n c e a n d f i r s t a u t h e n t i c a t i o n a n d d e l i v e r y o f t h e B o n d s
a g a i n s t p a y m e n t t h e r e f o r ( t h e " I s s u e D a t e " ) . B o n d s i s s u e d o n o r
s u b s e q u e n t t o t h e f i r s t B u s i n e s s D a y o f A p r i l , 1 9 9 6 s h a l l b e
d a t e d a s o f t h e I n t e r e s t P a y m e n t D a t e n e x t p r e c e d i n g t h e d a t e o f
a u t h e n t i c a t i o n t h e r e o f , u n l e s s s u c h d a t e o f a u t h e n t i c a t i o n s h a l l
b e a n I n t e r e s t P a y m e n t D a t e t o w h i c h i n t e r e s t o n t h e B o n d s h a s
b e e n p a i d i n f u l l o r d u l y p r o v i d e d f o r , i n w h i c h c a s e t h e y s h a l l
b e d a t e d a s o f s u c h d a t e o f a u t h e n t i c a t i o n ; p r o v i d e d t h a t i f , a s
s h o w n b y t h e r e c o r d s o f t h e P a y i n g A g e n t , i n t e r e s t o n t h e B o n d s
s h a l l b e i n d e f a u l t , B o n d s i s s u e d i n e x c h a n g e f o r B o n d s
s u r r e n d e r e d f o r t r a n s f e r o r e x c h a n g e s h a l l b e d a t e d a s o f t h e
d a t e t o w h i c h i n t e r e s t h a s b e e n p a i d i n f u l l o n t h e B o n d s o r , i f
n o i n t e r e s t h a s b e e n p a i d o n t h e B o n d s , t h e I s s u e D a t e o f t h e
B o n d s .
T h e p r i n c i p a l o f a n d i n t e r e s t o n t h e B o n d s s h a l l m a t u r e
( n o t l a t e r t h a n 3 0 y e a r s f r o m t h e d a t e o f i s s u e ) a n d b e c o m e
p a y a b l e , t h e B o n d s s h a l l b e s u b j e c t t o m a n d a t o r y p u r c h a s e o r
p u r c h a s e o n d e m a n d b y t h e o w n e r t h e r e o f , s h a l l b e s u b j e c t t o
o p t i o n a l a n d m a n d a t o r y r e d e m p t i o n a n d s h a l l b e s u b j e c t t o
c o n v e r s i o n o f t h e i n t e r e s t r a t e t h e r e o n f r o m t h e V a r i a b l e W e e k l y
R a t e t o t h e F i x e d R a t e , a l l i n a c c o r d a n c e w i t h t h e p r o v i s i o n s o f
" t h e I n d e n t u r e . I n n o e v e n t s h a l l t h e V a r i a b l e W e e k l y R a t e f o r
a n y W e e k l y R a t e P e r i o d e x c e e d 1 2 % p e r a n n u m
M M
" T h e p r i n c i p a l a n d r e d e m p t i o n p r i c e o f a n y B o n d s h a l l b e
p a y a b l e a t t h e p r i n c i p a l c o r p o r a t e t r u s t o f f i c e o f t h e T r u s t e e o r
t h e P a y i n g A g e n t , a n d i n t e r e s t o n B o n d s s h a l l b e p a y a b l e b y c h e c k
m a i l e d t o t h e a d d r e s s o f t h e p e r s o n e n t i t l e d t h e r e t o a s s u c h
a d d r e s s s h a l l a p p e a r i n t h e B o n d R e g i s t e r o r a s o t h e r w i s e
p r o v i d e d i n t h e I n d e n t u r e .
T h e B o n d s s h a l l b e e x e c u t e d b y t h e m a n u a l o r f a c s i m i l e
s i g n a t u r e o f t h e M a y o r o f t h e I s s u e r , a n d t h e s e a l o f t h e I s s u e r
o r a f a c s i m i l e t h e r e o f s h a l l b e a f f i x e d , i m p r i n t e d , l i t h o g r a p h e d
o r r e p r o d u c e d t h e r e o n a n d s h a l l b e a t t e s t e d b y t h e m a n u a l o r
f a c s i m i l e s i g n a t u r e o f t h e C l e r k - T r e a s u r e r o f t h e I s s u e r ( t h e
" F i s c a l O f f i c e r " ) . B o n d s e x e c u t e d a s a b o v e p r o v i d e d m a y b e
i s s u e d a n d s h a l l , u p o n r e q u e s t o f t h e I s s u e r , b e a u t h e n t i c a t e d b y
t h e T r u s t e e o r t h e P a y i n g A g e n t , n o t w i t h s t a n d i n g t h a t a n y o f f i c e r
s i g n i n g s u c h B o n d s o r w h o s e f a c s i m i l e s i g n a t u r e a p p e a r s t h e r e o n
s h a l l h a v e c e a s e d t o h o l d o f f i c e a t t h e t i m e o f i s s u a n c e o r
a u t h e n t i c a t i o n o r s h a l l n o t h a v e h e l d o f f i c e a t t h e I s s u e D a t e
t h e r e o f .
T h e p r i n c i p a l , r e d e m p t i o n p r i c e o r p u r c h a s e p r i c e o f
a n d i n t e r e s t o n t h e B o n d s s h a l l b e p a i d i n a n y c o i n o r c u r r e n c y
o f t h e U n i t e d S t a t e s o f A m e r i c a w h i c h , a t t h e t i m e o f p a y m e n t , i s
l e g a l t e n d e r f o r t h e p a y m e n t o f p u b l i c a n d p r i v a t e d e b t s .
" N o t i c e o f c a l l f o r r e d e m p t i o n o f B o n d s s h a l l b e g i v e n
i n t h e m a n n e r p r o v i d e d i n t h e I n d e n t u r e . O n t h e r e d e m p t i o n d a t e
o f B o n d s c a l l e d f o r r e d e m p t i o n , t h e r e d e m p t i o n p r i c e w i l l b e c o m e
d u e a n d p a y a b l e u p o n e a c h s u c h B o n d o r p o r t i o n t h e r e o f c a l l e d f o r
r e d e m p t i o n , a n d i n t e r e s t t h e r e o n s h a l l c e a s e t o a c c r u e f r o m a n d
a f t e r s a i d d a t e .
S e c t i o n 5 . S e c u r i t y P l e d g e d f o r B o n d s A s p r o v i d e d
h e r e i n , t h e B o n d s s h a l l b e e q u a l l y a n d r a t a b l y p a y a b l e s o l e l y
f r o m t h e R e v e n u e s a n d s e c u r e d b y a p l e d g e o f a n d l i e n o n ( a ) t h e
L o a n A g r e e m e n t a n d t h e N o t e a n d a l l r i g h t , t i t l e a n d i n t e r e s t
( b u t n o t t h e o b l i g a t i o n s ) o f t h e I s s u e r u n d e r a n d p u r s u a n t t o t h e
t e r m s t h e r e o f , a l l p a y m e n t s , r e v e n u e s , r e n t s a n d r e c e i p t s
r e c e i v a b l e b y t h e I s s u e r t h e r e u n d e r ( e x c e p t a m o u n t s p a y a b l e t o
t h e I s s u e r t h e r e u n d e r w i t h r e s p e c t t o f e e s , e x p e n s e s a n d
i n d e m n i f i c a t i o n ) , a n d ( b ) a l l o f t h e r i g h t , t i t l e a n d i n t e r e s t o f
t h e I s s u e r i n a n d t o a l l F u n d s ( o t h e r t h a n t h e A r b i t r a g e R e b a t e
F u n d ) a n d A c c o u n t s e s t a b l i s h e d u n d e r t h i s I n d e n t u r e a n d a l l
m o n e y s a n d i n v e s t m e n t s n o w o r h e r e a f t e r h e l d t h e r e i n a n d a l l
f u t u r e a n d p r e s e n t R e v e n u e s ; a n d a n y t h i n g i n t h e F i n a n c i n g
A g r e e m e n t t o t h e c o n t r a r y n o t w i t h s t a n d i n g , t h e B o n d s s h a l l n e v e r
c o n s t i t u t e a g e n e r a l o b l i g a t i o n o f , a n i n d e b t e d n e s s o f , o r a
c h a r g e a g a i n s t t h e g e n e r a l c r e d i t o f t h e I s s u e r , n o r a r e t h e
B o n d s p a y a b l e i n a n y m a n n e r f r o m r e v e n u e s r a i s e d b y t a x a t i o n , b u t
s u c h B o n d s a r e p a y a b l e s o l e l y f r o m t h e R e v e n u e s a n d t h e B o n d s
s h a l l c o n t a i n o n t h e f a c e t h e r e o f a s t a t e m e n t t o t h a t e f f e c t .
Section G. Source of Payment - Bond Fund As provided
in the Financing Agreement, the Bonds shall be payable from
moneys on deposit in the Bond Fund, including draws under the
Letter of Credit and payments made by the Company to the Trustee
of the principal of, premium, if any, and interest on the Note.
The Company shall make payments of principal and interest under
the Loan Agreement and the Note sufficient to provide for payment
of principal of and interest on the Bonds as and when they become
due and upon the redemption of the Bonds at any time upon the
request of the Company, the Company shall make a payment equal to
the proposed principal payment, premium, if any, and interest due
on the applicable date of redemption of the Bonds. Such payments
are to be paid by the Company directly to the Trustee for the
account of the Issuer and deposited in the General Account of the
Bond Fund. The Company shall be entitled to receive a current
credit against its obligation to make such payments as provided
in the Loan Agreement for payments made pursuant to draws on the
Letter of Credit.
The Issuer hereby covenants and agrees that so long as
any of the Bonds are outstanding it will deposit, or cause to be
deposited, in the Bond Fund, Revenues sufficient in time and
amount to pay the principal of, premium, if any, and interest on
the Bonds as the same become due and payable, and to this end the
Issuer covenants and agrees that, so long as any Bonds are
. outstanding, it will cooperate with the Trustee in the Trustee's
enforcement of the Financing Agreement, and that, should there be
an event of default under the Financing Agreement, the Issuer
shall fully cooperate with the Trustee and with the Bondholders
to protect fully the rights and security of the Bondholders
hereunder. Nothing herein shall be construed as requiring the
Issuer to use or apply to the payment of principal of, premium,
if any, and interest on the Bonds any funds or revenues from any
source other than Revenues.
The Issuer covenants and agrees, whenever the moneys
and investments in the Bond Fund (or otherwise held by the
Trustee for such purpose) are sufficient in amount to redeem all
of the Bonds then outstanding and to pay interest to accrue
thereon to the date or dates of such redemption, to take and
cause to be taken, at the direction of the Company and the
Trustee, the necessary steps to redeem all of said Bonds on the
next succeeding redemption date or dates for which the required
notice of call for redemption may be given.
Section 7. Covenants of Issuer In addition to other
covenants of the Issuer in this Ordinance and the Indenture
contained, the Issuer further covenants and agrees as follows:
(a) Payment of Bond Service Charges The Issuer will,
solely from Revenues, pay or cause to be paid the principal of,
5--M
" p r e m i u m , i f a n y , a n d i n t e r e s t o n e a c h a n d a l l B o n d s o n t h e d a t e s ,
a t t h e p l a c e s a n d i n t h e m a n n e r p r o v i d e d h e r e i n , i n t h e
F i n a n c i n g A g r e e m e n t .
( b ) P e r f o r m a n c e o f C o v e n a n t s , A u t h o r i t y a n d A c t i o n s
T h e I s s u e r w i l l a t a l l t i m e s f a i t h f u l l y o b s e r v e a n d p e r f o r m a l l
a g r e e m e n t s , c o v e n a n t s , u n d e r t a k i n g s , s t i p u l a t i o n s a n d p r o v i s i o n s
c o n t a i n e d i n t h e d o c u m e n t s c o n s t i t u t i n g t h e F i n a n c i n g A g r e e m e n t
a n d i n a n y a n d e v e r y B o n d e x e c u t e d , a u t h e n t i c a t e d a n d d e l i v e r e d
u n d e r t h e I n d e n t u r e , a n d i n a l l p r o c e e d i n g s o f t h e I s s u e r
p e r t a i n i n g t o s u c h d o c u m e n t s a n d t h e B o n d s . T h e I s s u e r w a r r a n t s
a n d c o v e n a n t s t h a t i t i s , a n d u p o n d e l i v e r y o f t h e B o n d s w i l l b e ,
d u l y a u t h o r i z e d b y t h e C o n s t i t u t i o n a n d l a w s o f t h e S t a t e ,
i n c l u d i n g p a r t i c u l a r l y a n d w i t h o u t l i m i t a t i o n t h e A c t , t o i s s u e
t h e B o n d s a n d t o e x e c u t e t h e d o c u m e n t s c o n s t i t u t i n g F i n a n c i n g
A g r e e m e n t t o w h i c h i t i s a p a r t y , t o p r o v i d e t h e s e c u r i t y f o r
p a y m e n t o f t h e p r i n c i p a l o f , p r e m i u m , i f a n y , a n d i n t e r e s t o n t h e
B o n d s i n t h e m a n n e r a n d t o t h e e x t e n t h e r e i n a n d i n t h e I n d e n t u r e
s e t f o r t h ; t h a t a l l a c t i o n s o n i t s p a r t f o r t h e i s s u a n c e o f t h e
B o n d s a n d e x e c u t i o n a n d d e l i v e r y o f t h e d o c u m e n t s c o n s t i t u t i n g
F i n a n c i n g A g r e e m e n t t o w h i c h i t i s a p a r t y h a v e b e e n o r w i l l b e
d u l y a n d e f f e c t i v e l y t a k e n ; a n d t h a t t h e B o n d s i n t h e h a n d s o f
t h e h o l d e r s t h e r e o f w i l l b e v a l i d a n d e n f o r c e a b l e s p e c i a l
o b l i g a t i o n s o f t h e I s s u e r a c c o r d i n g t o t h e t e r m s t h e r e o f . E a c h
p r o v i s i o n o f t h e d o c u m e n t s c o n s t i t u t i n g F i n a n c i n g A g r e e m e n t t o
S w h i c h i t i s a p a r t y i s b i n d i n g u p o n e a c h s u c h o f f i c e r o f t h e
I s s u e r a s m a y f r o m t i m e t o t i m e h a v e t h e a u t h o r i t y u n d e r l a w t o
t a k e s u c h a c t i o n s a s m a y b e n e c e s s a r y t o p e r f o r m a l l o r a n y p a r t
o f t h e d u t i e s r e q u i r e d b y s u c h p r o v i s i o n ; a n d e a c h d u t y o f t h e
I s s u e r a n d o f i t s o f f i c e r s u n d e r t a k e n p u r s u a n t t o s u c h
p r o c e e d i n g s f o r t h e B o n d s i s e s t a b l i s h e d a s a d u t y o f t h e I s s u e r
a n d o f e a c h s u c h o f f i c e r h a v i n g a u t h o r i t y t o p e r f o r m s u c h d u t y .
( c ) R e v e n u e s E x c e p t a s o t h e r w i s e p r o v i d e d i n t h e
F i n a n c i n g A g r e e m e n t , t h e I s s u e r w i l l n o t c r e a t e o r s u f f e r t o b e
c r e a t e d a n y d e b t , l i e n , c h a r g e o r e n c u m b r a n c e u p o n t h e R e v e n u e s ,
o r m a k e a n y p l e d g e o r a s s i g n m e n t t h e r e o f , i n c l u d i n g t h e m o n e y s i n
t h e B o n d F u n d a n d C o n s t r u c t i o n F u n d , o t h e r t h a n t h e p l e d g e a n d
a s s i g n m e n t t h e r e o f u n d e r t h e F i n a n c i n g A g r e e m e n t .
( d ) R i g h t s u n d e r F i n a n c i n g A g r e e m e n t T h e T r u s t e e , i n
i t s n a m e , s h a l l , f o r a n d o n b e h a l f o f t h e B o n d h o l d e r s , e n f o r c e
a l l r i g h t s o f t h e I s s u e r a n d a l l o b l i g a t i o n s o f t h e C o m p a n y u n d e r
a n d p u r s u a n t t o t h e F i n a n c i n g A g r e e m e n t , w h e t h e r o r n o t t h e
I s s u e r i s i n d e f a u l t o f t h e p u r s u i t o r e n f o r c e m e n t o f s u c h r i g h t s
a n d o b l i g a t i o n s .
( e ) M a i n t e n a n c e o f F i n a n c i n g A g r e e m e n t T h e I s s u e r
s h a l l d o a l l t h i n g s a n d t a k e a l l a c t i o n s o n i t s p a r t n e c e s s a r y t o
c o m p l y w i t h t h e o b l i g a t i o n s , d u t i e s a n d r e s p o n s i b i l i t i e s o n t h e
p a r t o f t h e I s s u e r u n d e r t h e F i n a n c i n g A g r e e m e n t , a n d w i l l t a k e
4 0 a l l a c t i o n s w i t h i n i t s a u t h o r i t y t o m a i n t a i n t h e F i n a n c i n g
Agreement in effect in accordance with the terms thereof and to
enforce and protect the rights of the Issuer thereunder,
including actions at law and in equity, as may be appropriate.
(f) Arbitrage Provisions The Issuer shall require
the Company to restrict the use of the proceeds of the Bonds in
such manner and to such extent, if any, as may be necessary,
after taking into account reasonable expectations at the time the
Bonds are delivered to the original purchasers of the Bonds, so
that they will not constitute "arbitrage bonds" under Section 148
of the Internal Revenue Code of 1986, as amended (the "Code ").
The Fiscal Officer having responsibility with respect to the
issuance of the Bonds, is authorized and directed, alone or in
conjunction with any of the foregoing or with any other officer,
employee, consultant or agent of the Governing Body, or any
officer of the Company and upon receipt of satisfactory
indemnities, to give an appropriate certificate on behalf of the
Issuer, for inclusion in the transcript of proceedings for the
Bonds, setting forth the facts, estimates and circumstances and
reasonable expectations pertaining to said Section 148 of the
Code.
Section 8. Investment of Bond Fund, Construction Fund
and Rebate Fund Moneys in the Bond Fund, the Construction Fund
and the Arbitrage Rebate Fund shall be invested and reinvested by
• the Trustee in strict accordance with the provisions of the
Indenture and Agreement. Monies in the Arbitrage Rebate Fund
shall not constitute part of the Revenues and shall not be
subject to the lien of the Indenture.
Section 9. Financing Agreement and other Documents
The Mayor and the Fiscal Officer are hereby authorized and
directed to execute, attest, affix or imprint by any means the
seal of the Issuer to the documents constituting the Financing
Agreement approved herein on behalf of the Issuer and financing
statements, an IRS Form 8038, other assignments and any other
documents and instruments as are, in the opinion of bond counsel
to the Issuer, necessary to perfect the pledges set forth in the
Indenture and to consummate the transactions provided for in the
documents constituting the Financing Agreement. The Mayor and
the Fiscal Officer are hereby expressly authorized to approve any
modification or additions to the documents constituting the
Financing Agreement which take place after the date of this
Ordinance with the review and advice of bond counsel to the
Issuer, it being the express agreement of the Governing Body that
the Financing Agreement is in substantially final form as of the
date of this Ordinance. The approval of such modifications and
additions shall be conclusively evidenced by the execution and
attestation thereof and the affixing of the seal thereto or the
imprinting of the seal thereon; provided, however, that no such
change or addition shall change the maximum principal amount of,
• interest rate on or term of the Bonds as approved by the
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Governing Body by this Ordinance without further consideration by
the Governing Body. The signatures of the Mayor and the Clerk -
Treasurer on the Bonds may be either manual or facsimile
signatures. As provided in the Indenture, PNC Bank, Indiana,
Inc. is appointed as the initial Paying Agent and PNC Securities
Corp is appointed as Remarketing Advisor.
Section 10. Sale of Bonds; Private Placement
Memorandum The Bonds will be sold and awarded to the original
purchasers of the Bonds identified by PNC Brokerage Corp. (the
"Placement Advisor "), in accordance with the Placement Agreement,
at a purchase price of 1000 of the principal amount of the Bonds.
The Mayor and /or the Fiscal Officer are hereby
authorized and directed to make the necessary arrangements with
the original purchasers of the Bonds to establish the date,
location, procedure and conditions for delivery of the Bonds to
the original purchasers of the Bonds and to take all steps
necessary to effect due execution, authentication and delivery to
the original purchasers of the Bonds under the conditions of this
Ordinance and the Indenture.
It is determined by this Governing Body that the price
for and the terms of the Bonds, and the sale thereof, all as
provided in this Ordinance and the Indenture, are in the best
• interest of the Issuer and are in compliance with all legal
requirements. The use and distribution of the preliminary and
final Private Placement Memorandum in form substantially similar
to the Preliminary Private Placement Memorandum now on file with
the Issuer and any supplements thereto is authorized hereby.
The Issuer does not warrant or represent that any
information contained in the preliminary or final Private
Placement Memorandum, except the information contained under the
caption "The Issuer ", is true and correct in all material
respects or that such information, except as set forth above,
does not contain any untrue or misleading statement of a material
fact or omit to state any material fact necessary to be stated
therein in order to make the statements therein, in the light of
the circumstances under which they were made, not misleading.
Section 11. Election Under Section 144(a)(4) of the
Code The Issuer hereby elects that Section 144(a)(4) of the
Code shall apply to the Bonds and the Mayor or Fiscal Officer of
the Issuer is hereby authorized and directed to file evidence of
said election with any appropriate officer of the United States,
including the Secretary of the Treasury or his or her delegate,
and to take such other action as my be necessary to make
effective such election made herein.
Section 12. Approval Pursuant to Section 147(f) of the
. Code The issuance of the Bonds by the Issuer for the benefit of
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" t h e C o m p a n y i n t h e p r i n c i p a l a m o u n t o f u p t o $ 8 , 3 0 0 , 0 0 0 t o a s s i s t
t h e C o m p a n y i n t h e f i n a n c i n g o f t h e a c q u i s i t i o n , c o n s t r u c t i o n ,
i n s t a l l i n g , e q u i p p i n g , f u r n i s h i n g a n d r e n o v a t i o n o f t h e P r o j e c t
i s h e r e b y a p p r o v e d b y t h e G o v e r n i n g B o d y o f t h e I s s u e r t o t h e
e x t e n t r e q u i r e d b y S e c t i o n 1 4 7 ( f ) o f t h e C o d e , a f t e r t h e h o l d i n g
o f a p u b l i c h e a r i n g b y t h e C o m m i s s i o n o n b e h a l f o f t h e I s s u e r
w i t h r e s p e c t t o s u c h f i n a n c i n g a n d t h e P r o j e c t o n J a n u a r y 1 7 ,
1 9 9 6 , a n d u p o n m a k i n g t h e f o l l o w i n g f i n d i n g s :
( a ) t h e P r o j e c t c o n s i s t s o f t h e a c q u i s i t i o n o f a n
e x i s t i n g 1 8 1 , 0 0 0 s q u a r e f o o t b u i l d i n g a n d t h e e q u i p p i n g ,
f u r n i s h i n g a n d r e n o v a t i o n t h e r e o f , t o b e u s e d f o r t h e
m a n u f a c t u r e o f l i f t t r u c k s ;
( b ) t h e m a x i m u m a g g r e g a t e f a c e a m o u n t o f t h e B o n d s
w i l l b e $ 8 , 3 0 0 , 0 0 0 ;
( c ) t h e i n i t i a l o w n e r o f t h e P r o j e c t w i l l b e t h e
C o m p a n y ; a n d
( d ) t h e P r o j e c t w i l l b e l o c a t e d a t 2 6 0 0 S t a t e R o a d 2 4 0
E a s t , G r e e n c a s t l e , I n d i a n a .
S e c t i o n 1 3 . B i n d i n g C o n t r a c t T h e P r o v i s i o n s o f t h i s
O r d i n a n c e a n d t h e T r u s t I n d e n t u r e s e c u r i n g t h e B o n d s s h a l l
" c o n s t i t u t e a c o n t r a c t b i n d i n g b e t w e e n t h e I s s u e r a n d t h e h o l d e r s
o f t h e B o n d s , a n d a f t e r t h e i s s u a n c e o f t h e B o n d s , t h i s O r d i n a n c e
s h a l l n o t b e r e p e a l e d o r a m e n d e d i n a n y r e s p e c t w h i c h w o u l d
a d v e r s e l y a f f e c t t h e r i g h t s o f s u c h h o l d e r s s o l o n g a s a n y o f t h e
B o n d s o r t h e i n t e r e s t t h e r e o n r e m a i n s u n p a i d .
S e c t i o n 1 4 . E f f e c t i v e D a t e T h i s O r d i n a n c e s h a l l t a k e
e f f e c t a n d b e i n f u l l f o r c e f r o m a n d a f t e r i t s p a s s a g e a n d
s i g n i n g b y t h e P r e s i d i n g O f f i c e r . 4 / ��
P A S S E D A N D A D O P T E D t h i s / ��� d a y o f / ��, u _ c C ��Z 1 9 9 6 .
J
N a n c y A I M i c h a e l , M a y o r
A t t e s t :
P a m e l a J o n e s , / C l e - k - T r e a s u r e r
"
" P r e s e n t e d b y m e t o t h e M a y o r o f t h e C i t y o f
G r e e n c a s t l e , I n d i a n a o n a i i . i ? 1 9 9 6 , a t t h e h o u r o f
P . M . % /
P a m e l a J o n e s ' , C ��, P r k - T r e a s u r e r
A p p r o v e d b y m e t h i s ���� d a y o f / / , L ( d . ��L , 1 9 9 6 .
x ' d . ( e I / w t
N a n c y A . j i c h a e l , M a y o r '
A t t e s t :
P a m e l a J o n e s , / C e r k - T r e a s u r e r
"
C R 0 5 9 4 4 . 1 - 1 E
"
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