HomeMy Public PortalAbout1994-06 Bondsi
ORDINANCE NO. 1994 -6
An Ordinance of the City of Greencastle authorizing the issuance of sewage
works revenue bonds for the purpose of providing funds to pay the cost of certain
additions, extensions and improvements to the municipal sewage works of said
City, providing for the safeguarding of thg interests of the owners of said bonds,
other matters connected therewith, including the issuance of notes in anticipation
of bonds, and repealing ordinances inconsistent herewith
WHEREAS, the City of Greencastle, Indiana (the "City ") has heretofore established,
constructed and financed a municipal sewage works and now owns and operates the sewage
works pursuant to IC 36 -9 -23, and other applicable laws; and
WHEREAS, the Common Council of the City now finds that certain improvements,
additions and extensions to said works are necessary; and that plans, specifications and estimates
have been prepared and filed by the engineers employed by the City for the construction of said
i improvements and extensions, as more fully described on Exhibit A attached hereto (the
"Project "), which plans and specifications have been or will be approved by said Common
Council and by all governmental authorities having jurisdiction, including, particularly, the
Indiana Department of Environmental Management; and
WHEREAS, the City has obtained engineer's estimates of the costs for the construction
of said Project; that on the basis of said estimates, the maximum estimated cost of the Project,
as defined in IC 36 -9 -23 and IC 36 -9 -1, including incidental expenses, is in the amount of
$1,975,000; and
WHEREAS, the Common Council finds that a Department of Commerce grant in the
estimated amount of $335,000 will be available to apply toward the Project and that the
remainder of the cost of the Project should be financed by the issuance of sewage works revenue
" b o n d s , p a y a b l e s o l e l y o u t o f t h e N e t R e v e n u e s , a s h e r e i n a f t e r d e f i n e d , o f t h e C i t y ' s s e w a g e
w o r k s , a n d , i f n e c e s s a r y , b o n d a n t i c i p a t i o n n o t e s ( " B A N s " ) ; a n d
W H E R E A S , t h e C i t y h a s h e r e t o f o r e i s s u e d c e r t a i n S e w a g e W o r k s R e f u n d i n g R e v e n u e
B o n d s o f 1 9 9 1 , d a t e d F e b r u a r y 1 , 1 9 9 1 ( " 1 9 9 1 , B o n d s " ) , n o w o u t s t a n d i n g i n t h e a m o u n t o f
$ 6 7 5 , 0 0 0 , a n d m a t u r i n g a n n u a l l y o v e r a p e r i o d e n d i n g J a n u a r y 1 , 2 0 0 1 , w h i c h 1 9 9 1 B o n d s
c o n s t i t u t e a f i r s t c h a r g e u p o n t h e N e t R e v e n u e s o f t h e s e w a g e w o r k s ; a n d
W H E R E A S , t h e o r d i n a n c e a u t h o r i z i n g t h e i s s u a n c e o f t h e n o w o u t s t a n d i n g 1 9 9 1 B o n d s
p e r m i t s t h e i s s u a n c e o f a d d i t i o n a l b o n d s r a n k i n g o n a p a r i t y w i t h s a i d 1 9 9 1 B o n d s p r o v i d e d t h a t
c e r t a i n c o n d i t i o n s c a n b e m e t , a n d t h e C i t y f i n d s t h a t t h e f i n a n c e s o f s a i d s e w a g e w o r k s w i l l
e n a b l e t h e C i t y t o m e e t t h e c o n d i t i o n s f o r t h e i s s u a n c e o f a d d i t i o n a l p a r i t y b o n d s a n d t h a t ,
a c c o r d i n g l y , t h e r e v e n u e b o n d s a u t h o r i z e d h e r e i n s h a l l c o n s t i t u t e a f i r s t c h a r g e o n t h e N e t
" R e v e n u e s o f t h e s e w a g e w o r k s o n a p a r i t y w i t h t h e n o w o u t s t a n d i n g 1 9 9 1 B o n d s ; a n d
W H E R E A S , t h e b o n d s t o b e i s s u e d p u r s u a n t t o t h i s o r d i n a n c e a r e t o b e i s s u e d s u b j e c t
t o t h e p r o v i s i o n s o f t h e l a w s o f t h e S t a t e o f I n d i a n a , i n c l u d i n g , w i t h o u t l i m i t a t i o n , I C 3 6 - 9 - 2 3 ,
a s i n e f f e c t o n t h e i s s u e d a t e o f t h e b o n d s i s s u e d h e r e u n d e r ( t h e " A c t " ) , a n d t h e t e r m s a n d
r e s t r i c t i o n s o f t h i s o r d i n a n c e ; a n d
W H E R E A S , t h e C i t y d e s i r e s t o a u t h o r i z e t h e i s s u a n c e o f B A N s h e r e u n d e r , i f n e c e s s a r y ,
p a y a b l e s o l e l y f r o m t h e p r o c e e d s o f t h e s e w a g e w o r k s r e v e n u e b o n d s i s s u e d t o f i n a n c e t h e
a f o r e m e n t i o n e d c o s t s o f t h e P r o j e c t a n d t o a u t h o r i z e t h e r e f u n d i n g o f s a i d B A N s , i f i s s u e d ; a n d
W H E R E A S , t h e C o m m o n C o u n c i l n o w f i n d s t h a t a l l c o n d i t i o n s p r e c e d e n t t o t h e a d o p t i o n
o f a n o r d i n a n c e a u t h o r i z i n g t h e i s s u a n c e o f r e v e n u e b o n d s a n d B A N s h a v e b e e n c o m p l i e d w i t h
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 A c t ;
"
D - 2
" N O W T H E R E F O R E , B E I T O R D A I N E D B Y T H E C O M M O N C O U N C I L O F T H E
C I T Y O F G R E E N C A S T L E T H A T :
S e c . 1 . I s s u a n c e o f B o n d s T h e C i t y p r o c e e d w i t h t h e c o n s t r u c t i o n o f t h e P r o j e c t i n
a c c o r d a n c e w i t h t h e c o s t e s t i m a t e s , a n d t h e p l a n s a p d s p e c i f i c a t i o n s h e r e t o f o r e p r e p a r e d a n d f i l e d
b y t h e c o n s u l t i n g e n g i n e e r s e m p l o y e d b y t h e C i t y , w h i c h c o s t e s t i m a t e s , p l a n s a n d s p e c i f i c a t i o n s
a r e b y r e f e r e n c e m a d e a p a r t o f t h i s o r d i n a n c e a s f u l l y a s i f t h e s a m e w e r e a t t a c h e d h e r e t o a n d
i n c o r p o r a t e d h e r e i n a n d t w o c o p i e s o f w h i c h a r e n o w 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
o f t h e C i t y a n d a r e o p e n f o r p u b l i c i n s p e c t i o n p u r s u a n t t o I C 3 6 - 1 - 5 - 4 , t h a t t h e c o s t o f
c o n s t r u c t i o n o f s a i d P r o j e c t s h a l l n o t e x c e e d t h e s u m o f $ 1 , 9 7 5 , 0 0 0 , p l u s i n v e s t m e n t e a r n i n g s
o n t h e b o n d a n d B A N p r o c e e d s , w i t h o u t f u r t h e r a u t h o r i z a t i o n f r o m t h i s C o m m o n C o u n c i l . T h e
t e r m s " s e w a g e w o r k s , " " s e w a g e w o r k s s y s t e m , " " s y s t e m , " " w o r k s , " a n d o t h e r l i k e t e r m s w h e r e
" u s e d i n t h i s o r d i n a n c e s h a l l b e c o n s t r u e d t o m e a n a n d i n c l u d e t h e e x i s t i n g s e w a g e w o r k s s y s t e m
a n d a l l r e a l e s t a t e a n d e q u i p m e n t u s e d i n c o n n e c t i o n t h e r e w i t h a n d a p p u r t e n a n c e s t h e r e t o , a n d
a l l e x t e n s i o n s , a d d i t i o n s , a n d i m p r o v e m e n t s t h e r e t o a n d r e p l a c e m e n t s t h e r e o f n o w o r a t a n y t i m e
h e r e a f t e r c o n s t r u c t e d o r a c q u i r e d . T h e P r o j e c t s h a l l b e c o n s t r u c t e d i n a c c o r d a n c e w i t h t h e p l a n s
a n d s p e c i f i c a t i o n s h e r e t o f o r e m e n t i o n e d , w h i c h p l a n s a n d s p e c i f i c a t i o n s a r e h e r e b y a p p r o v e d .
S a i d P r o j e c t s h a l l b e c o n s t r u c t e d a n d t h e b o n d s h e r e i n a u t h o r i z e d s h a l l b e i s s u e d p u r s u a n t t o a n d
i n a c c o r d a n c e w i t h t h e A c t .
S e c . 2 . ( a ) T h e C i t y s h a l l i s s u e , i f n e c e s s a r y , i t s B A N S f o r t h e p u r p o s e o f p r o c u r i n g
i n t e r i m f i n a n c i n g t o a p p l y t o t h e c o s t o f s a i d P r o j e c t . T h e C i t y s h a l l i s s u e i t s B A N S i n a n
a m o u n t n o t t o e x c e e d O n e M i l l i o n S i x H u n d r e d S i x t y T h o u s a n d D o l l a r s ( $ 1 , 6 6 0 , 0 0 0 ) t o b e
d e s i g n a t e d " S e w a g e W o r k s B o n d A n t i c i p a t i o n N o t e s . " S a i d B A N S s h a l l b e n u m b e r e d
0
D - 3
® consecutively from I upward, shall be in multiples of $1,000, shall be dated as of the date of
delivery thereof, and shall bear interest at a rate not to exceed 7% per annum (the exact rate or
rates to be determined through negotiations with the purchaser of the BANS) payable upon
maturity. The BANS will mature one year after their date of delivery. The BANS are subject
to renewal or extension at an interest rate or rates not to exceed 7% per annum (the exact rate
or rates to be negotiated with the purchaser of the BANS). The term of the BANS and all
renewal BANS may not exceed five years from the date of delivery of the initial BANS. The
BANS shall be registered in the name of the purchasers thereof.
The BANS shall be issued pursuant to IC 5- 1.5 -8 -6.1 if sold to the Indiana Bond Bank
or pursuant to IC 5- 1 -14 -5 if sold to any other purchaser. The principal of and interest on the
BANS shall be payable solely from the issuance of revenue bonds pursuant to and in the manner
• prescribed by the Act. The revenue bonds will be payable solely out of and constitute a first
charge against the Net Revenues (herein defined as gross revenues of the sewage works of the
City after deduction only for the payment of the reasonable expenses of operation, repair and
maintenance) of the sewage works of the City, on a parity with the 1991 Bonds.
(b) The City shall issue its "Sewage Works Revenue Bonds of 199_, to be completed
with the year in which the bonds are issued (the "Bonds ") in an aggregate principal amount not
to exceed $1,660,000 for the purpose of procuring funds to be applied on the cost of the Project,
the payment of costs of issuance, refunding the BANS, if issued, and all other costs related to
the Project.
The Bonds shall be sold at a price not less than 98.5% of the par value thereof, shall be
issued in the denomination of Five Thousand Dollars ($5,000) each or integral multiples thereof,
D -4
" n u m b e r e d c o n s e c u t i v e l y f r o m 1 u p w a r d , d a t e d a s o f t h e f i r s t d a y o f t h e m o n t h i n w h i c h t h e y a r e
s o l d a n d s h a l l b e a r i n t e r e s t a t a r a t e o r r a t e s n o t e x c e e d i n g 8 . 5 % p e r a n n u m ( t h e e x a c t r a t e o r
r a t e s t o b e d e t e r m i n e d b y b i d d i n g ) p a y a b l e s e m i a n n u a l l y o n J a n u a r y I a n d J u l y I i n e a c h y e a r .
c o m m e n c i n g o n J a n u a r y 1 , 1 9 9 5 . T h e B o n d s s h a l l m a t u r e a n n u a l l y . o r s h a l l b e s u b j e c t t o
m a n d a t o r y s i n k i n g f u n d r e d e m p t i o n i f t e r m b o n d s a r e i s s u e d , o n J a n u a r y 1 o f e a c h y e a r ,
c o m m e n c i n g o n J a n u a r y 1 , 1 9 9 5 a n d e n d i n g n o l a t e r t h a n J a n u a r y 1 , 2 0 2 0 a n d i n s u c h a m o u n t s
a s w i l l r e s u l t i n a s l e v e l a n n u a l d e b t s e r v i c e a s p r a c t i c a b l e w i t h 5 5 , 0 0 0 d e n o m i n a t i o n s a n d t a k i n g
i n t o a c c o u n t t h e a n n u a l d e b t s e r v i c e r e q u i r e m e n t s o f t h e 1 9 9 1 B o n d s .
A l l o r a p o r t i o n o f t h e B o n d s m a y b e i s s u e d a s o n e o r m o r e t e r m b o n d s , u p o n e l e c t i o n
o f t h e s u c c e s s f u l b i d d e r . S u c h t e r m b o n d s s h a l l h a v e a s t a t e d m a t u r i t y o r m a t u r i t i e s o f J a n u a r y
1 , i n t h e y e a r s a s d e t e r m i n e d b y t h e s u c c e s s f u l b i d d e r , b u t i n n o e v e n t l a t e r t h a n t h e l a s t s e r i a l
" m a t u r i t y d a t e o f t h e b o n d s a s d e t e r m i n e d i n t h e a b o v e p a r a g r a p h . T h e t e r m 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 s i n k i n g f u n d r e d e m p t i o n a n d f i n a l p a y m e n t ( s ) a t m a t u r i t y a t 1 0 0 % o f t h e
p r i n c i p a l a m o u n t t h e r e o f , p l u s a c c r u e d i n t e r e s t t o t h e r e d e m p t i o n d a t e , o n p r i n c i p a l p a y m e n t
d a t e s w h i c h a r e h e r e i n a f t e r d e t e r m i n e d i n a c c o r d a n c e w i t h t h e a b o v e p a r a g r a p h .
S e c . 3 . R e g i s t r a r a n d P a y i n g A u n t T h e C l e r k - T r e a s u r e r i s h e r e b v a u t h o r i z e d t o
c o n t r a c t w i t h a q u a l i f i e d f i n a n c i a l i n s t i t u t i o n t o s e r v e a s R e g i s t r a r a n d P a v i n g A g e n t f o r t h e
B o n d s ( t h e " R e g i s t r a r " o r " P a y i n g A g e n t " ) . T h e R e g i s t r a r i s h e r e b y c h a r g e d w i t h t h e
r e s p o n s i b i l i t y o f a u t h e n t i c a t i n g t h e B o n d s . T h e C l e r k - T r e a s u r e r i s h e r e b y a u t h o r i z e d t o e n t e r
i n t o s u c h a g r e e m e n t s o r u n d e r s t a n d i n g s w i t h t h e R e g i s t r a r a s w i l l e n a b l e t h e i n s t i t u t i o n t o
p e r f o r m t h e s e r v i c e s r e q u i r e d o f a r e g i s t r a r a n d p a y i n g a g e n t . T h e C l e r k - T r e a s u r e r i s f u r t h e r
a u t h o r i z e d t o p a y s u c h f e e s a s t h e R e g i s t r a r m a y c h a r g e f o r t h e s e r v i c e s i t p r o v i d e s a s R e g i s t r a r
0
M D M D F 9 . W ? 5 - 5 -
" a n d P a y i n g A g e n t a n d s u c h f e e s m a y b e p a i d f r o m t h e S e w a g e W o r k s S i n k i n g F u n d e s t a b l i s h e d
t o p a y t h e p r i n c i p a l o f a n d i n t e r e s t o n t h e B o n d s a s f i s c a l a g e n c y c h a r g e s . A s t o t h e B A N S , t h e
C l e r k - T r e a s u r e r s h a l l s e r v e a s R e g i s t r a r a n d P a y i n g A g e n t a n d i s h e r e b y c h a r g e d w i t h t h e d u t i e s
o f R e g i s t r a r a n d P a y i n g A g e n t .
T h e p r i n c i p a l o f t h e B o n d s s h a l l b e p a y a b l e a t t h e p r i n c i p a l c o r p o r a t e t r u s t o f f i c e o f t h e
P a y i n g A g e n t . A l l p a y m e n t s o f i n t e r e s t o n t h e B o n d s s h a l l b e p a i d b y c h e c k , m a i l e d o n e
b u s i n e s s d a y p r i o r t o t h e i n t e r e s t p a y m e n t d a t e t o t h e r e g i s t e r e d o w n e r s t h e r e o f a s t h e n a m e s
a p p e a r a s o f t h e f i f t e e n t h d a y o f t h e m o n t h p r e c e d i n g t h e i n t e r e s t p a y m e n t d a t e ( t h e " R e c o r d
D a t e " ) a n d a t t h e a d d r e s s e s a s t h e y a p p e a r o n t h e r e g i s t r a t i o n b o o k s k e p t b y t h e R e g i s t r a r o r a t
s u c h o t h e r a d d r e s s a s i s p r o v i d e d t o t h e P a y i n g A g e n t i n w r i t i n g b y s u c h r e g i s t e r e d o w n e r . A l l
p a y m e n t s o n t h e B o n d s s h a l l b e m a d e i n a n y 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 o n t h e d a t e o f s u c h p a y m e n t , s h a l l b e 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 .
E a c h B o n d s h a l l b e t r a n s f e r a b l e o r e x c h a n g e a b l e o n l y u p o n t h e b o o k s o f t h e C i t y k e p t
f o r t h a t p u r p o s e a t t h e 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 R e g i s t r a r b y t h e r e g i s t e r e d o w n e r
i n p e r s o n , o r b y i t s a t t o r n e y d u l y a u t h o r i z e d i n w r i t i n g , u p o n s u r r e n d e r o f s u c h B o n d t o g e t h e r
w i t h a w r i t t e n i n s t r u m e n t o f t r a n s f e r o r e x c h a n g e s a t i s f a c t o r y t o t h e R e g i s t r a r d u l y e x e c u t e d b y
t h e r e g i s t e r e d o w n e r , o r i t s a t t o r n e y d u l y a u t h o r i z e d i n w r i t i n g , a n d t h e r e u p o n a n e w f u l l y
r e g i s t e r e d B o n d o r B o n d s i n a n a u t h o r i z e d a g g r e g a t e p r i n c i p a l a m o u n t a n d o f t h e s a m e m a t u r i t y .
s h a l l b e e x e c u t e d a n d d e l i v e r e d i n t h e n a m e o f t h e t r a n s f e r e e o r t r a n s f e r e e s o r t h e r e g i s t e r e d
o w n e r , a s t h e c a s e m a y b e , i n e x c h a n g e t h e r e f o r . T h e c o s t s o f s u c h 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 b o r n e b y t h e C i t y e x c e p t f o r a n y t a x o r g o v e r n m e n t a l c h a r g e r e q u i r e d t o b e p a i d w i t h r e s p e c t
"
r D M D F s . w r s - 6 -
" t o t h e t r a n s f e r o r e x c h a n g e , w h i c h t a x e s o r g o v e r n m e n t a l c h a r g e s a r e p a y a b l e b y t h e p e r s o n
r e q u e s t i n g s u c h t r a n s f e r o r e x c h a n g e . T h e C i t y , R e g i s t r a r a n d P a v i n g A g e n t f o r t h e B o n d s m a y
t r e a t a n d c o n s i d e r t h e p e r s o n i n w h o s e n a m e s u c h B o n d s a r e r e g i s t e r e d a s t h e a b s o l u t e o w n e r
t h e r e o f f o r a l l p u r p o s e s i n c l u d i n g f o r t h e p u r p o s e o f r e c e i v i n g p a y m e n t o f , o r o n a c c o u n t o f . t h e
p r i n c i p a l t h e r e o f a n d i n t e r e s t d u e t h e r e o n .
T h e R e g i s t r a r a n d P a v i n g A g e n t m a y a t a n y t i m e r e s i g n a s R e g i s t r a r a n d P a y i n g A g e n t
u p o n g i v i n g 3 0 d a y s ' n o t i c e i n w r i t i n g t o t h e C i t y a n d b y f i r s t c l a s s m a i l t o e a c h r e g i s t e r e d
o w n e r o f t h e B o n d s t h e n o u t s t a n d i n g , a n d s u c h r e s i g n a t i o n w i l l t a k e e f f e c t a t t h e e n d o f s u c h 3 0
d a y p e r i o d o r u p o n t h e e a r l i e r a p p o i n t m e n t o f a s u c c e s s o r r e g i s t r a r a n d p a v i n g a g e n t b y t h e C i t y .
A n y s u c h n o t i c e t o t h e C i t y m a y b e s e r v e d p e r s o n a l l y o r s e n t b y r e g i s t e r e d m a i l . T h e R e g i s t r a r
a n d P a v i n g A g e n t m a y b e r e m o v e d a t a n y t i m e a s R e g i s t r a r a n d P a y i n g A g e n t b y t h e C i t y , i n
" w h i c h e v e n t t h e C i t y m a y a p p o i n t a s u c c e s s o r r e g i s t r a r a n d p a y i n g a g e n t . T h e C i t y s h a l l n o t i f y
e a c h r e g i s t e r e d o w n e r o f t h e B o n d s t h e n o u t s t a n d i n g b y f i r s t c l a s s m a i l o f t h e r e m o v a l o f t h e
R e g i s t r a r a n d P a v i n g A g e n t . N o t i c e s t o t h e r e g i s t e r e d o w n e r s o f t h e B o n d s s h a l l b e d e e m e d t o
b e g i v e n w h e n m a i l e d b y f i r s t c l a s s m a i l t o t h e a d d r e s s e s o f s u c h r e g i s t e r e d o w n e r s a s t h e v
a p p e a r o n t h e r e g i s t r a t i o n b o o k s k e p t b y t h e R e g i s t r a r .
U p o n t h e a p p o i n t m e n t o f a n v s u c c e s s o r r e g i s t r a r a n d p a v i n g a g e n t b y t h e C i t y , t h e C l e r k -
T r e a s u r e r i s a u t h o r i z e d a n d d i r e c t e d t o e n t e r i n t o s u c h a g r e e m e n t s a n d u n d e r s t a n d i n g s w i t h s u c h
s u c c e s s o r r e g i s t r a r a n d p a y i n g a g e n t a s w i l l e n a b l e t h e i n s t i t u t i o n t o p e r f o r m t h e s e r v i c e s
r e q u i r e d o f a r e g i s t r a r a n d p a y i n g a g e n t f o r t h e B o n d s . T h e C l e r k - T r e a s u r e r i s f u r t h e r
a u t h o r i z e d t o p a y s u c h f e e s a s t h e s u c c e s s o r r e g i s t r a r a n d p a v i n g a g e n t m a y c h a r g e f o r t h e
s e r v i c e s i t p r o v i d e s a s r e g i s t r a r a n d p a v i n g a g e n t a n d s u c h f e e s m a y b e p a i d f r o m t h e S e w a g e
0
I D D M D F 9 . W P 5 - 7 -
" W o r k s S i n k i n g F u n d c o n t i n u e d i n S e c t i o n 1 5 h e r e o f . A n y p r e d e c e s s o r r e g i s t r a r a n d p a y i n g
a g e n t s h a l l d e l i v e r a l l o f t h e B o n d s a n d a n y c a s h o r i n v e s t m e n t s i n i t s p o s s e s s i o n w i t h r e s p e c t
t h e r e t o , t o g e t h e r w i t h t h e r e g i s t r a t i o n b o o k s , t o t h e s u c c e s s o r r e g i s t r a r a n d p a y i n g a g e n t .
I n t e r e s t o n t h e B o n d s s h a l l b e p a y a b l e f r o m t h e 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
h a s b e e n p a i d n e x t p r e c e d i n g t h e a u t h e n t i c a t i o n d a t e o f t h e B o n d s u n l e s s t h e B o n d s a r e
a u t h e n t i c a t e d a f t e r t h e R e c o r d D a t e a n d o n o r b e f o r e s u c h i n t e r e s t p a y m e n t d a t e i n w h i c h c a s e
t h e y s h a l l b e a r i n t e r e s t f r o m s u c h i n t e r e s t p a y m e n t d a t e , o r u n l e s s t h e B o n d s a r e a u t h e n t i c a t e d
o n o r b e f o r e t h e R e c o r d D a t e p r e c e d i n g t h e f i r s t i n t e r e s t p a y m e n t d a t e , i n w h i c h c a s e t h e y s h a l l
b e a r i n t e r e s t f r o m t h e o r i g i n a l d a t e u n t i l t h e p r i n c i p a l s h a l l b e f u l l y p a i d .
S e c . 4 . R e d e m p t i o n o f B A N S a n d B o n d s ( a ) T h e B A N S a r e p r e p a y a b l e b y t h e C i t y ,
i n w h o l e o r i n p a r t , a t a n y t i m e u p o n 7 d a y s ' n o t i c e t o t h e o w n e r o f t h e B A N S w i t h o u t a n y
" p r e m i u m .
( b ) T h e B o n d s o f t h i s i s s u e m a t u r i n g o n a n d a f t e r J a n u a r y 1 , 2 0 0 6 , a r e r e d e e m a b l e a t
t h e o p t i o n o f t h e C i t y o n J a n u a r y 1 , 2 0 0 5 , o r a n y d a t e t h e r e a f t e r , o n t h i r t y ( 3 0 ) d a y s ' n o t i c e .
i n w h o l e o r i n p a r t , i n i n v e r s e o r d e r o f m a t u r i t y a n d b y l o t w i t h i n a m a t u r i t y , a t f a c e v a l u e .
t o g e t h e r w i t h t h e f o l l o w i n g p r e m i u m s :
2 % i f r e d e e m e d o n J a n u a r y 1 , 2 0 0 5 , o r t h e r e a f t e r
o n o r b e f o r e D e c e m b e r 3 1 , 2 0 0 5 ;
1 % i f r e d e e m e d o n J a n u a r y 1 , 2 0 0 6 , o r t h e r e a f t e r
o n o r b e f o r e D e c e m b e r 3 1 , 2 0 0 6 ;
0 % i f r e d e e m e d o n J a n u a r y 1 , 2 0 0 7 , o r t h e r e a f t e r
p r i o r t o m a t u r i t y ;
p l u s a c c r u e d i n t e r e s t t o t h e d a t e f i x e d f o r r e d e m p t i o n .
( c ) I f a n y B o n d i s i s s u e d a s a t e r m b o n d , t h e P a y i n g A g e n t s h a l l c r e d i t a g a i n s t t h e
" m a n d a t o r y s i n k i n g f u n d r e q u i r e m e n t f o r t h e B o n d s m a t u r i n g a s t e r m b o n d s , a n d c o r r e s p o n d i n g
I D M D F 9 . W P 5 - 8 -
" m a n d a t o r y r e d e m p t i o n o b l i g a t i o n , i n t h e o r d e r d e t e r m i n e d b y t h e C i t y , a n y B o n d s m a t u r i n g a s
t e r m b o n d s w h i c h h a v e p r e v i o u s l y b e e n r e d e e m e d ( o t h e r w i s e t h a n a s a r e s u l t o f a p r e v i o u s
m a n d a t o r y r e d e m p t i o n r e q u i r e m e n t ) o r d e l i v e r e d t o t h e R e g i s t r a r f o r c a n c e l l a t i o n o r p u r c h a s e d
f o r c a n c e l l a t i o n b y t h e P a y i n g A g e n t a n d n o t t h e r e t o f o r e a p p l i e d a s a c r e d i t a g a i n s t a n y
r e d e m p t i o n o b l i g a t i o n . E a c h B o n d m a t u r i n g a s a t e r m b o n d s o d e l i v e r e d o r c a n c e l l e d s h a l l b e
c r e d i t e d b y t h e P a y i n g A g e n t a t 1 0 0 % o f t h e p r i n c i p a l a m o u n t t h e r e o f a g a i n s t t h e m a n d a t o r y
s i n k i n g f u n d o b l i g a t i o n o n s u c h m a n d a t o r y s i n k i n g f u n d d a t e , a n d a n y e x c e s s o f s u c h a m o u n t
s h a l l b e c r e d i t e d o n f u t u r e r e d e m p t i o n o b l i g a t i o n s , a n d t h e p r i n c i p a l a m o u n t o f t h e B o n d s t o b e
r e d e e m e d b y o p e r a t i o n o f t h e m a n d a t o r y s i n k i n g f u n d r e q u i r e m e n t s h a l l b e a c c o r d i n g l y r e d u c e d :
p r o v i d e d , h o w e v e r , t h e P a y i n g A g e n t s h a l l c r e d i t o n l y s u c h B o n d s m a t u r i n g a s t e r m b o n d s t o
t h e e x t e n t r e c e i v e d o n o r b e f o r e f o r t y - t i v e ( 4 5 ) d a y s p r e c e d i n g t h e a p p l i c a b l e m a n d a t o r y
" r e d e m p t i o n d a t e a s s t a t e d a b o v e .
E a c h F i v e T h o u s a n d D o l l a r s ( $ 5 , 0 0 0 ) p r i n c i p a l a m o u n t s h a l l b e c o n s i d e r e d a s e p a r a t e
b o n d f o r p u r p o s e s o f 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 . I f s o m e B o n d s a r e t o b e r e d e e m e d
b y o p t i o n a l r e d e m p t i o n a n d m a n d a t o r y s i n k i n g f u n d r e d e m p t i o n o n t h e s a m e d a t e , t h e R e g i s t r a r
s h a l l s e l e c t b y l o t t h e B o n d s f o r o p t i o n a l r e d e m p t i o n b e f o r e s e l e c t i n g t h e B o n d s b y l o t f o r t h e
m a n d a t o r y s i n k i n g f u n d r e d e m p t i o n .
( d ) I n e i t h e r c a s e , n o t i c e o f s u c h r e d e m p t i o n s h a l l b e g i v e n a t l e a s t t h i r t y ( 3 0 ) d a y s p r i o r
t o t h e d a t e f i x e d f o r r e d e m p t i o n b y m a i l u n l e s s t h e n o t i c e i s w a i v e d b y t h e r e g i s t e r e d o w n e r o f
a B o n d . S u c h n o t i c e s h a l l b e m a i l e d t o t h e a d d r e s s o f t h e r e g i s t e r e d o w n e r s a s s h o w n o n t h e
r e g i s t r a t i o n r e c o r d s o f t h e C i t y a s o f t h e d a t e w h i c h i s f o r t y - f i v e ( 4 5 ) d a y s p r i o r t o s u c h
r e d e m p t i o n d a t e . T h e n o t i c e s h a l l s p e c i f y t h e d a t e a n d p l a c e o f r e d e m p t i o n a n d s u f f i c i e n t
r D D 0 8 D P 9 . W P 5 - 9 -
identification of the Bonds called for redemption. The place of redemption shall be determined
by the City. Interest on the Bonds so called for redemption shall cease on the redemption date
fixed in such notice if sufficient funds are available at the principal office of the Paying Agent
to pay the redemption price on the date so named. Coincidentally with the payment of the
redemption price, the Bonds so called for redemption shall be surrendered for cancellation.
Sec. 5. Execution and Neeotiability Each of the BANs and Bonds shall be executed
in the name of the City by the manual or facsimile signature of the Mayor and attested by the
manual or facsimile signature of its Clerk - Treasurer, and the seal of the City shall be affixed.
imprinted or impressed to or on each of the BANS and Bonds manually, by facsimile or anv
other means; and these officials. by the execution of a Signature and No Litigation Certificate.
shall adopt as and for their own proper signatures the facsimile signatures appearing on the
• Bonds or BANS. In case any officer whose signature or facsimile signature appears on the
Bonds or BANS shall cease to be such officer before the delivery of the Bonds or BANS, the
signature of such officer shall nevertheless be valid and sufficient for all purposes the same as
if such officer had remained in office until such deliverv.
The BANs and Bonds shall have all of the qualities and incidents of negotiable
instruments under the laws of the State of Indiana, subject to the provisions for registration
herein.
The Bonds shall also be authenticated by the manual signature of the Registrar, and no
Bond shall be valid or become obligatory for any purpose until the certificate of authentication
thereon has been so executed.
IDD09DF9.WP3 - 10-
Sec. 6. Form of Bonds The form and tenor of the Bonds shall be substantially as
follows, all blanks to be filled in properly prior to delivery;
UNITED STATES OF AMERICA
STATE OF INDIANA COUNTY OF PUTNAM
Interest Maturity Original Authentication
Rate Date Date Date CUSIP
CITY OF GREENCASTLE
SEWAGE WORKS REVENUE
BOND OF 199
40
REGISTERED OWNER:
PRINCIPAL SUM:
The City of Greencastle, in Putnam County, State of Indiana, for value received, hereby
promises to pay to the Registered Owner named above or registered assigns, solely out of the
special revenue fund hereinafter referred to, the Principal Sum set forth above on the Maturity
Date set forth above (unless this bond be subject to and be called for redemption prior to
maturity as hereinafter provided), and to pay interest hereon at the Interest Rate per annum
stated above from the interest payment date to which interest has been paid next preceding the
Authentication Date of this bond unless this bond is authenticated after the fifteenth day of the
month preceding an interest payment date and on or before such interest payment date in which
case it shall bear interest from such interest payment date or unless this bond is authenticated
on or before December 15, 1994, in which case it shall bear interest from the Original Date,
until the principal is paid, which interest is payable semiannually on the first days of January
and July in each year, beginning on January 1, 1995.
The principal of this bond is payable at the principal office of
(the "Registrar" or "Paying Agent "), in the City of
Indiana. All payments of interest on this bond shall be paid by check, mailed
one business day prior to the interest payment date to the registered owner hereof as of the
fifteenth day of the month preceding such interest payment date at the address as it appears on
the registration books kept by the Registrar or at such other address as is provided to the Paying
• Agent in writing by the registered owner. All payments on the bond shall be made in any coin
mo08oF9.wr5 - 11 -
® or currency of the United States of America, which on the dates of such payment, shall be legal
tender for the payment of public and private debts.
THE CITY SHALL NOT BE OBLIGATED TO PAY THIS BOND OR THE INTEREST
HEREON EXCEPT FROM THE HEREINAFTER DESCRIBED SPECIAL FUND, AND
NEITHER THIS BOND NOR THE ISSUE OF WHICH IT IS A PART SHALL IN ANY
RESPECT CONSTITUTE A CORPORATE INDEBTEDNESS OF THE CITY WITHIN THE
PROVISIONS AND LIMITATIONS OF THE CONSTITUTION OF THE STATE OF
INDIANA.
The City has designated the bonds as qualified tax- exempt bonds to qualify the bonds for
the $10,000,000 exception from the provisions of Section 265(b)(3) of the Internal Revenue
Code of 1986 relating to the disallowance of the deduction for interest expense allocable to tax -
exempt obligations.
The terms and provisions of this bond are continued on the reverse side hereof and such
terms and provisions shall for all purposes have the same effect as though fully set forth at this
place.
It is hereby certified arid recited that all acts, conditions and things required to be done
precedent to and in the execution, issuance and delivery of this bond have been done and
performed in regular and due form as provided by law.
This bond shall not be valid or become obligatory for any purpose until the certificate
of authentication hereon shall have been executed by an authorized representative of the
Registrar.
IN WITNESS WHEREOF, the City of Greencastle, in Putnam County, Indiana, has
caused this bond to be executed in its corporate name by the manual or facsimile signature of
the Mayor, its corporate seal to be hereunto affixed, imprinted or impressed by any means and
attested manually or by facsimile by its Clerk- Treasurer.
CITY OF GREENCASTLE, INDIANA
M
Mayor
[SEAL]
Attest:
IDMDe9.wr5 - 12 -
" C l e r k - T r e a s u r e r
R E G I S T R A R ' S C E R T I F I C A T E O F A U T H E N T I C A T I O N
T h i s b o n d i s o n e o f t h e b o n d s d e s c r i b e d i n t h e w i t h i n - m e n t i o n e d O r d i n a n c e .
a s R e g i s t r a r
C
A u t h o r i z e d R e p r e s e n t a t i v e
( T o b e p r i n t e d o n R e v e r s e S i d e )
T h i s b o n d i s o n e o f a n a u t h o r i z e d i s s u e o f b o n d s o f t h e C i t y o f G r e e n c a s t l e , o f l i k e d a t e ,
t e n o r a n d e f f e c t , e x c e p t a s t o r a t e s o f i n t e r e s t a n d d a t e s o f m a t u r i t y ; a g g r e g a t i n g
D o l l a r s ( $ ) ; n u m b e r e d c o n s e c u t i v e l y f r o m
O 1 u p ; i s s u e d f o r t h e p u r p o s e o f p r o v i d i n g f u n d s t o b e a p p l i e d o n t h e c o s t o f a d d i t i o n s , e x t e n s i o n s
a n d i m p r o v e m e n t s t o t h e C i t y ' s s e w a g e w o r k s ( t h e " P r o j e c t " ) , [ f u n d i n g a r e s e r v e f o r t h e B o n d s , ]
[ t o r e f u n d i n t e r i m n o t e s i s s u e d i n a n t i c i p a t i o n o f t h e B o n d s ] a n d t o p a y i s s u a n c e e x p e n s e s . T h i s
b o n d i s i s s u e d p u r s u a n t t o a n O r d i n a n c e a d o p t e d b y t h e C o m m o n C o u n c i l o f s a i d C i t y o n t h e
d a y o f 1 9 9 _ , e n t i t l e d " A n O r d i n a n c e o f t h e C i t y o f G r e e n c a s t l e a u t h o r i z i n g
t h e i s s u a n c e o f s e w a g e w o r k s r e v e n u e b o n d s f o r t h e p u r p o s e o f p r o v i d i n g f u n d s t o p a y t h e c o s t
o f c e r t a i n a d d i t i o n s , e x t e n s i o n s a n d i m p r o v e m e n t s t o t h e m u n i c i p a l s e w a g e w o r k s o f s a i d C i t y ,
p r o v i d i n g f o r t h e s a f e g u a r d i n g o f t h e i n t e r e s t s o f t h e o w n e r s o f s a i d b o n d s , o t h e r m a t t e r s
c o n n e c t e d t h e r e w i t h , i n c l u d i n g t h e i s s u a n c e o f n o t e s i n a n t i c i p a t i o n o f b o n d s , a n d r e p e a l i n g
o r d i n a n c e s i n c o n s i s t e n t h e r e w i t h " ( t h e " O r d i n a n c e " ) , a n d i n a c c o r d a n c e w i t h t h e p r o v i s i o n s o f
I n d i a n a l a w , i n c l u d i n g w i t h o u t l i m i t a t i o n I n d i a n a C o d e 3 6 - 9 - 2 3 a s i n e f f e c t o n t h e d a t e o f
d e l i v e r y o f t h e b o n d s o f t h i s i s s u e ( t h e " A c t " ) , t h e p r o c e e d s o f w h i c h b o n d s a r e t o b e a p p l i e d
t o t h e c o s t s o f t h e P r o j e c t , [ t h e p a y m e n t o f n o t e s i s s u e d i n a n t i c i p a t i o n o f t h e b o n d s , ] [ f u n d i n g
a r e s e r v e ] a n d e x p e n s e s i n c u r r e d i n c o n n e c t i o n t h e r e w i t h .
P u r s u a n t t o t h e p r o v i s i o n s o f t h e A c t a n d t h e O r d i n a n c e , t h e p r i n c i p a l o f a n d i n t e r e s t o n
t h i s b o n d a n d a l l o t h e r b o n d s o f s a i d i s s u e , a n d a n y b o n d s h e r e a f t e r i s s u e d o n a p a n t y t h e r e w i t h
a r e p a y a b l e s o l e l y f r o m t h e S e w a g e W o r k s S i n k i n g F u n d c o n t i n u e d b y t h e O r d i n a n c e ( t h e
" S i n k i n g F u n d " ) t o b e p r o v i d e d f r o m t h e N e t R e v e n u e s ( h e r e i n d e f i n e d a s t h e g r o s s r e v e n u e s
o f t h e s e w a g e w o r k s o f t h e C i t y a f t e r d e d u c t i o n o n l y f o r t h e p a y m e n t o f t h e r e a s o n a b l e e x p e n s e s
o f o p e r a t i o n , r e p a i r a n d m a i n t e n a n c e ) o f t h e s e w a g e w o r k s o f t h e C i t y . T h e p a y m e n t o f t h i s
b o n d r a n k s o n a p a n t y w i t h t h e p a y m e n t o f t h e 1 9 9 1 B o n d s ( a s d e f i n e d i n t h e O r d i n a n c e ) .
F
L J
m D 0 8 1 ) M P S - 1 3 -
® The City of Greencastle irrevocably pledges the entire Net Revenues of the sewage works
to the prompt payment of the principal of and interest on the bonds authorized by the Ordinance,
of which this is one, and any bonds ranking on a parity therewith, including the 1991 Bonds,
to the extent necessary for that purpose, and covenants that it will cause to be fixed, maintained
and collected such rates and charges for services rendered by the utility as are sufficient in each
year for the payment of the proper and reasonable expenses of operation, repair and maintenance
of the sewage works and for the payment of the sums required to be paid into the Sinking Fund
under the provisions of the Act and the Ordinance. If the City or the proper officers thereof
shall fail or refuse to so fix, maintain and collect such rates or charges, or if there be a default
in the payment of the interest on or principal of this bond, the owner of this bond shall have all
of the rights and remedies provided for in the Act, including the right to have a receiver
appointed to administer the works and to charge and collect rates sufficient to provide for the
payment of this bond and the interest hereon.
The City of Greencastle further covenants that it will set aside and pay into its Sinking
Fund monthly, as available, or more often if necessary, a sufficient amount of the Net Revenues
of the works for payment of (a) the interest on all bonds which by their terms are payable from
the revenues of the sewage works, as such interest shall fall due, (b) the necessary fiscal agencv
charges for paying bonds and interest, (c) the principal of all bonds which by their terms are
payable from the revenues of the sewage works, as such principal shall fall due, and (d) an
additional amount as a margin of safety to maintain the debt service reserve required by the
Ordinance. Such required payments shall constitute a first charge upon all the Net Revenues of
0 the sewage works on a parity with the aforementioned 1991 Bonds.
The bonds of this issue maturing on and after January 1, 2006, are redeemable at the
option of the City on January 1, 2005, or any date thereafter, on thirty (30) days' notice, in
whole or in part, in inverse order of maturity and by lot within a maturity, at face value,
together with the following premiums:
2 % if redeemed on January 1, 2005, or thereafter
on or before December 31, 2005;
1% if redeemed on January 1, 2006, or thereafter
on or before December 31, 2006;
0% if redeemed on January 1, 2007, or thereafter
prior to maturity;
plus accrued interest to the date fixed for redemption.
[The bonds maturing on January 1, _ are subject to mandatory sinking fund
redemption prior to maturity, at a redemption price equal to the principal amount thereof plus
accrued interest, on January 1 in the years and amounts set forth below:
Year Amount
WD08DF9.WP5 - 14-
*
* Final Maturity]
Each Five Thousand Dollars ($5,000) principal amount shall be considered a separate
bond for purposes of optional [and mandatory] redemption. [If some bonds are to be redeemed
by optional redemption and mandatory sinking fund redemption on the same date, the Registrar
shall select by lot the bonds for optional redemption before selecting the bonds by lot for the
mandatory sinking fund redemption.]
Notice of such redemption shall be mailed to the address of the registered owner as
shown on the registration records of the City, as of the date which is forty -five (45) days prior
to such redemption date, not less than thirty (30) days prior to the date fixed for redemption
unless the notice is waived by the registered owner of this bond. The notice shall specify the
date and place of redemption and sufficient identification of the bonds called for redemption.
The place of redemption may be determined by the City. Interest on the bonds so called for
redemption shall cease on the redemption date fixed in such notice if sufficient funds are
available at the place of redemption to pay the redemption price on the date so named.
If this bond shall not be presented for payment or redemption on the date fixed therefor,
the City may deposit in trust with its depository bank an amount sufficient to pay such bond or
the redemption price, as the case may be, and thereafter the registered owner shall look only to
the funds so deposited in trust with said bank for payment and the City shall have no further
obligation or liability in respect thereto.
This bond is transferable or exchangeable only upon the books of the City kept for that
purpose at the principal corporate trust office of the Registrar by the registered owner hereof in
person, or by his attorney duly authorized in writing, upon surrender of this bond together with
a written instrument of transfer or exchange satisfactory to the Registrar duly executed by the
registered owner, or his attorney duly authorized in writing, and thereupon a new fully
registered bond or bonds in an authorized aggregate principal amount and of the same maturity,
shall be executed and delivered in the name of the transferee or transferees or to the registered
owner, as the case may be, in exchange therefor. This bond may be transferred without cost
to the registered owner except for any tax or governmental charge required to be paid with
respect to the transfer. The City, the Registrar, the Paying Agent and any other registrar or
paying agent for this bond may treat and consider the person in whose name this bond is
registered as the absolute owner hereof for all purposes including for the purpose of receiving
payment of, or on account of, the principal hereof and interest due hereon.
This bond is subject to defeasance prior to redemption or payment as provided in the
Ordinance referred to herein. THE OWNER OF THIS BOND, BY THE ACCEPTANCE
HEREOF, HEREBY AGREES TO ALL THE TERMS AND PROVISIONS CONTAINED IN
THE ORDINANCE. The Ordinance may be amended without the consent of the owners of the
mn08oe9.wr5 - 15 -
e bonds as provided in the Ordinance if the Common Council determines, in its sole discretion,
that the amendment shall not adversely affect the rights of any of the owners of the bonds.
The bonds maturing in any one year are issuable only in fully registered form in the
denomination of $5,000 or any integral multiple thereof.
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto
this bond and all rights thereunder, and hereby
irrevocably constitutes and appoints , attorney, to transfer the
within bond in the books kept for the registration thereof with full power of substitution in the
premises.
Dated:
E
NOTICE: ignature(s) must be
guaranteed by an eligible guarantor
institution participating in a Securities
Transfer Association recognized
signature guarantee program.
NOTICE: T e signature to this assignment
must correspond with the name as it appears
on the face of the within bond in every
particular, without alteration or enlargement or
any change whatsoever.
-16-
Sec. 7. Authorization for Preparation and Sale of the BANS and the Bonds• Insurance
The Clerk - Treasurer is hereby authorized and directed to have the BANs and the Bonds
prepared, and the Mayor and Clerk- Treasurer are hereby authorized and directed to execute and
attest the BANS and the Bonds in the form and manner provided herein. The Clerk- Treasurer
is hereby authorized and directed to deliver the BANS and the Bonds to the respective purchasers
thereof. At the time of delivery of the BANS and the Bonds, the Clerk- Treasurer shall collect
the full amount which the respective purchasers have agreed to pay therefor, which amount shall
not be less than 99.5% of the face value of said BANS and 98.5% of the face value of said
Bonds, as the case may be. The Bonds, when fully paid for and delivered to the purchaser, shall
be the binding special revenue obligations of the City payable out of the Net Revenues of the
sewage works, on a parity with the 1991 Bonds. The proper officers of the City are hereby
directed to sell the Bonds, to draw all proper and necessary warrants, and to do whatever acts
and things which may be necessary to carry out the provisions of this ordinance. Distribution
of an Official Statement prepared by H. J. Umbaugh & Associates on behalf of the City, is
hereby authorized and approved and the Mayor and Clerk - Treasurer are authorized and directed
to execute the Official Statement on behalf of the City in a form consistent with this ordinance.
The Mayor and Clerk- Treasurer are hereby authorized to designate the Official Statement as
"nearly final" for purposes of Rule 15c2 -12 promulgated by the Securities and Exchange
Commission.
In the event the financial advisor to the City certifies to the City that it would be
economically advantageous for the City to obtain a municipal bond insurance policy for the
® Bonds, the City hereby authorizes the purchase of such an insurance policy. The acquisition of
MD08DF9.WP5 - 17 -
a municipal bond insurance policy is hereby deemed economically advantageous in the event the
difference between the present value cost of (a) the total debt service on the Bonds if issued
without municipal bond insurance and (b) the total debt service on the Bonds if issued with
municipal bond insurance, is greater than the cost of the premium on the municipal bond
insurance policy.
Sec. 8. Bond Sale Notice Prior to the sale of said Bonds, the Clerk- Treasurer shall
cause to be published either (i) a notice of bond sale in the Greencastle Banner - Graphic the only
newspaper published in the City of Greencastle, Indiana, two times, at least one week apart, the
First publication made at least fifteen (15) days before the date of the sale and the second
publication being made at least three (3) days before the date of the sale, or (ii) a notice of intent
to sell in the Greencastle Banner- Graphic and The Indianapolis Commercial all in accordance
® with IC 5 -1 -11 and IC 5 -3 -1. A notice of sale may also be published one time in The
Indianapolis Commercial and a summary notice may also be published in The Bond Buyer in
New York, New York. The notice shall state the character and amount of the Bonds, the
maximum rate of interest thereon, the terms and conditions upon which bids will be received and
the sale made, and such other information as the Clerk - Treasurer and the attorneys employed
by the City shall deem advisable and any summary notice may contain any information deemed
so advisable. The notice may provide, among other things, that each bid shall be accompanied
by a certified or cashier's check or a financial surety bond in an amount equal to I% of the
principal amount of the Bonds described in the notice to guarantee performance on the part of
the bidder. If a financial surety bond is used, it must be from an insurance company licensed
to issue such bond in the State of Indiana, and such bond must be submitted to the City prior
L
MMDP9.WP3 - 18 -
" t o t h e o p e n i n g o f t h e b i d s . T h e f i n a n c i a l s u r e t y b o n d m u s t i d e n t i f y e a c h b i d d e r w h o s e g o o d f a i t h
d e p o s i t i s g u a r a n t e e d b y s u c h f i n a n c i a l s u r e t y b o n d . I f t h e B o n d s a r e a w a r d e d t o a b i d d e r
u t i l i z i n g a f i n a n c i a l s u r e t y b o n d , t h e n t h a t p u r c h a s e r i s r e q u i r e d t o s u b m i t t o t h e C i t y a c e r t i f i e d
o r c a s h i e r ' s c h e c k ( o r w i r e t r a n s f e r s u c h a m o u n t a s i n s t r u c t e d b y t h e C i t y ) n o t l a t e r t h a n 3 : 3 0
p . m . ( G r e e n c a s t l e T i m e ) o n t h e n e x t b u s i n e s s d a y f o l l o w i n g t h e a w a r d . I n t h e e v e n t t h e
s u c c e s s f u l b i d d e r s h a l l f a i l o r r e f u s e t o a c c e p t d e l i v e r y o f t h e B o n d s a n d p a y f o r t h e s a m e a s
s o o n a s t h e B o n d s a r e r e a d y f o r d e l i v e r y , o r a t t h e t i m e f i x e d i n t h e n o t i c e o f s a l e , t h e n s a i d
c h e c k a n d t h e p r o c e e d s t h e r e o f s h a l l b e t h e p r o p e r t y o f t h e C i t y a n d s h a l l b e c o n s i d e r e d a s i t s
l i q u i d a t e d d a m a g e s o n a c c o u n t o f s u c h d e f a u l t . B i d d e r s f o r s a i d B o n d s w i l l b e r e q u i r e d t o n a m e
t h e r a t e o r r a t e s o f i n t e r e s t w h i c h t h e B o n d s a r e t o b e a r , n o t e x c e e d i n g t h e m a x i m u m r a t e
h e r e i n b e f o r e f i x e d , a n d s u c h i n t e r e s t r a t e o r r a t e s s h a l l b e i n m u l t i p l e s o f o n e - e i g h t ( 1 / 8 ) o r o n e -
t w e n t i e t h ( 1 / 2 0 ) o f o n e p e r c e n t ( 1 % ) . T h e r a t e b i d o n a m a t u r i t y s h a l l b e e q u a l t o o r g r e a t e r
t h a n t h e r a t e b i d o n t h e i m m e d i a t e l y p r e c e d i n g m a t u r i t y . N o c o n d i t i o n a l b i d o r b i d f o r l e s s t h a n
9 8 . 5 % o f t h 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 c o n s i d e r e d . T h e o p i n i o n o f I c e M i l l e r D o n a d i o
& R y a n , b o n d c o u n s e l o f I n d i a n a p o l i s , I n d i a n a , a p p r o v i n g t h e l e g a l i t y o f s a i d B o n d s , w i l l b e
f u r n i s h e d t o t h e p u r c h a s e r a t t h e e x p e n s e o f t h e C i t y .
T h e B o n d s s h a l l b e a w a r d e d b y t h e C l e r k - T r e a s u r e r t o t h e b e s t b i d d e r w h o h a s s u b m i t t e d
h i s b i d i n a c c o r d a n c e w i t h t h e t e r m s o f t h i s o r d i n a n c e , I C 5 - 1 - 1 1 a n d t h e n o t i c e o f s a l e . T h e
b e s t b i d d e r w i l l b e t h e o n e w h o o f f e r s t h e l o w e s t n e t i n t e r e s t c o s t t o t h e C i t y , t o b e d e t e r m i n e d
b y c o m p u t i n g t h e t o t a l i n t e r e s t o n a l l o f t h e B o n d s t o t h e i r m a t u r i t i e s a n d a d d i n g t h e r e t o t h e
d i s c o u n t b i d , i f a n y , a n d d e d u c t i n g t h e p r e m i u m b i d , i f a n y . T h e r i g h t t o r e j e c t a n y a n d a l l b i d s
s h a l l b e r e s e r v e d . I f a n a c c e p t a b l e b i d i s n o t r e c e i v e d o n t h e d a t e o f s a l e , t h e s a l e m a y b e
O
I D M D F 9 . W P 5 - 1 9 -
® continued from day to day thereafter without further advertisement for a period of thirty (30)
days, during which time no bid which is lower than the best bid received at the time of the
advertised sale will be considered.
Sec. 9. Use of Proceeds and Costs of Issuance The proceeds from the sale of the
Bonds, to the extent not used to refund BANS, and BAN proceeds shall be deposited in a bank
or banks which are legally designated depositories for the funds of the City, in a special account
or accounts to be designated as "City of Greencastle, Sewage Works Construction Account" (the
"Construction Account "). All funds deposited to the credit of the Sewage Works Sinking Fund
or the Construction Account shall be deposited, held, secured or invested in accordance with the
laws of the State of Indiana relating to the depositing, holding, securing or investing of public
funds, including particularly IC 5 -13, as amended and supplemental. The funds in the
Construction Account shall be expended only for the purpose of paying the cost of the Project,
refunding the BANS, if issued, or as otherwise required by the Act or for the expenses of
issuance of the Bonds. The cost of obtaining the legal services of Ice Miller Donadio & Ryan,
shall be considered as a part of the cost of the Project on account of which the BANS and Bonds
are issued. Any balance or balances remaining unexpended in such special account or accounts
after completion of the Project, which are not required to meet unpaid obligations incurred in
connection with such Project, shall either (1) be paid into the Sinking Fund and used solely for
the purposes of said Sinking Fund or (2) be used for the same purpose or type of project for
which the Bonds were originally issued, all in accordance with IC 5 -1 -13, as amended and
supplemented.
mo08nF9.WP5 -20 -
Sec. 10. Accrued Interest The accrued interest received at the time of delivery of the
Bonds, if any, and premium, if any, shall be deposited in the Sewage Works Sinking Fund
continued in Section 15.
Sec. 11. Financial Records and Accounts The City shall keep proper records and books
of account, separate from all of its other records and accounts, in which complete and correct
entries shall be made showing all revenues received on account of the operation of the sewage
works and all disbursements made therefrom and all transactions relating to the utility. There
shall be furnished to the insurer, if any, and, upon request, to any owner of the Bonds, within
thirty (30) days of their receipt by the City, the most recent audited financial statements of the
utility prepared by the State Board of Accounts. Copies of all such statements and reports shall
be kept on file in the office of the Clerk- Treasurer. Any owner of the Bonds shall have the right
® at all reasonable times to inspect the sewage works system and the records, accounts and data
of the Citv.
Sec. 12. Pledge of Net Revenues The interest on and the principal of the Bonds issued
pursuant to the provisions of this ordinance, and any bonds hereafter issued on a parity
therewith, shall constitute a first charge on all the Net Revenues, on a parity with the 1991
Bonds, and such Net Revenues are hereby irrevocably pledged to the payment of the interest on
and principal of such Bonds, to the extent necessary for that purpose.
Sec. 13. Revenue Fund All revenues derived from the operation of the sewage works
and from the collection of sewer rates and charges shall be deposited in the Revenue Fund,
hereby continued, and segregated and deposited as set forth in this ordinance. Of these revenues
the proper and reasonable expenses of operation, repair and maintenance of the works shall be
r�
MDD8DF9.%P5 - 21 -
paid, the principal and interest of all bonds and fiscal agency charges of registrars or paying
agents shall be paid, and the costs of replacements. extensions. additions and improvements shall
be paid.
Sec. 14. Operation and Maintenance Fund There is hereby continued a fund known as
the "Operation and Maintenance Fund ". On the last day of each calendar month. revenues of
the sewage works shall be transferred from the Revenue Fund to the Operation and Maintenance
Fund. The balance maintained in this Fund shall be sufficient to pay the expenses of operation.
repair and maintenance for the then next succeeding two calendar months. The moneys credited
to this Fund shall be used for the payment of the reasonable and proper operation, repair and
maintenance expenses of the sewage works on a day -to -day basis. Any monies in said Fund may
be transferred to the Sewage Works Sinking Fund if necessary to prevent a default in the
® payment of principal of or interest on the outstanding bonds of the sewage works.
Sec. 15. Sewage Works Sinking Fund (a) There is hereby continued a special fund
designated the "Sewage Works Sinking Fund" (herein, "Sewage Works Sinking Fund" or
"Sinking Fund ") for the payment of the principal of and interest on all outstanding revenue
bonds which by their terms are payable from the Net Revenues of the sewage works and the
payment of any fiscal agency charges in connection with the payment of bonds. There shall be
set aside and deposited in the Sinking Fund, as available, and as hereinafter provided, a
sufficient amount of the Net Revenues of the sewage works to meet the requirements of the Bond
and Interest Account and Reserve Account hereby continued in the Sinking Fund. Such
payments shall continue until the balances in the Bond and Interest Account and the Reserve
IDMDFV.vms - 22 -
Account equal the principal of and interest on all of the then outstanding bonds of the sewage
works to their final maturity.
(b) Bond and Interest Account There is hereby continued, within the Sinking Fund.
the Bond and Interest Account. There shall be credited on the last day of each calendar month
from the Revenue Fund to the Bond and Interest Account an amount of the Net Revenues equal
to (i) at least one -sixth (1/6) of the interest on all then outstanding bonds payable on the then
next succeeding interest payment date and (ii) at least one - twelfth (1/12) of the principal of all
then outstanding bonds payable on the then next succeeding principal payment date, until the
amount of interest and principal payable on the then next succeeding respective interest and
principal payment dates shall have been so credited. There shall similarly be credited to the
account any amount necessary to pay the bank fiscal agency charges for paying interest on
® outstanding bonds as the same become payable. The City shall, from the sums deposited in the
Sinking Fund and credited to the Bond and Interest Account, remit promptly to the registered
owner or to the bank fiscal agency sufficient moneys to pay the interest and principal on the due
dates thereof together with the amount of bank fiscal agency charges.
(c) Reserve .Account There is hereby continued, within the Sinking Fund, the
Reserve Account. On the date of delivery of the Bonds, funds on hand of the sewage works,
proceeds of the Bonds, or a combination thereof may be deposited into the Reserve Account.
The initial deposit shall cause the aggregate balance in the Reserve Account to equal but not
exceed the least of (i) maximum annual debt service on the Bonds and the 1991 Bonds. (ii)
125% of average annual debt service on the Bonds and the 1991 Bonds or (iii) 10% of the
proceeds of the Bonds and the 1991 Bonds ( "Reserve Requirement "). If no initial deposit is
moosuF9.wr5 - 23 -
" m a d e o r t h e i n i t i a l d e p o s i t d o e s n o t c a u s e t h e R e s e r v e A c c o u n t t o e q u a l t h e R e s e r v e
R e q u i r e m e n t , t h e C i t y s h a l l d e p o s i t a s u m o f N e t R e v e n u e s i n t o t h e R e s e r v e A c c o u n t o n t h e l a s t
d a y o f e a c h c a l e n d a r m o n t h u n t i l t h e b a l a n c e t h e r e i n d o e s e q u a l t h e R e s e r v e R e q u i r e m e n t . T h e
m o n t h l y d e p o s i t s s h a l l b e e q u a l i n a m o u n t a n d s u f f i c i e n t t o a c c u m u l a t e t h e R e s e r v e R e q u i r e m e n t
w i t h i n f i v e y e a r s o f t h e d a t e o f d e l i v e r y o f t h e B o n d s . T h e R e s e r v e A c c o u n t s h a l l c o n s t i t u t e t h e
m a r g i n f o r s a f e t y a n d p r o t e c t i o n a g a i n s t d e f a u l t i n t h e p a y m e n t o f 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 a n d t h e 1 9 9 1 B o n d s , a n d t h e m o n e y s i n t h e R e s e r v e A c c o u n t s h a l l b e u s e d t o p a y
c u r r e n t p r i n c i p a l a n d i n t e r e s t o n t h e B o n d s a n d t h e 1 9 9 1 B o n d s t o t h e e x t e n t t h a t m o n e y s i n t h e
B o n d a n d I n t e r e s t A c c o u n t a r e i n s u f f i c i e n t f o r t h a t p u r p o s e . A n y d e f i c i e n c y i n t h e b a l a n c e
m a i n t a i n e d i n t h e R e s e r v e A c c o u n t s h a l l b e m a d e u p f r o m t h e n e x t a v a i l a b l e N e t R e v e n u e s
r e m a i n i n g a f t e r c r e d i t s i n t o t h e B o n d a n d I n t e r e s t A c c o u n t . A n y m o n e y s i n t h e R e s e r v e A c c o u n t
" i n e x c e s s o f t h e R e s e r v e R e q u i r e m e n t s h a l l e i t h e r b e t r a n s f e r r e d t o t h e S e w a g e W o r k s
I m p r o v e m e n t F u n d o r b e u s e d f o r t h e p u r c h a s e o f o u t s t a n d i n g b o n d s o r i n s t a l l m e n t s o f p r i n c i p a l
o f f u l l y r e g i s t e r e d B o n d s o r 1 9 9 1 B o n d s a t a p r i c e n o t e x c e e d i n g p a r a n d a c c r u e d i n t e r e s t .
S e e . 1 6 . S e w a g e W o r k s I m p r o v e m e n t F u n d T h e r e i s h e r e b y c o n t i n u e d a s p e c i a l f u n d
d e s i g n a t e d t h e " S e w a g e W o r k s I m p r o v e m e n t F u n d " . A n v e x c e s s r e v e n u e s m a y b e t r a n s f e r r e d
o r c r e d i t e d f r o m t h e R e v e n u e F u n d t o t h e S e w a g e W o r k s I m p r o v e m e n t F u n d , a n d s a i d F u n d
s h a l l b e u s e d f o r i m p r o v e m e n t s , r e p l a c e m e n t s , a d d i t i o n s a n d e x t e n s i o n s o f t h e s e w a g e w o r k s .
M o n e y s i n t h e S e w a g e W o r k s I m p r o v e m e n t F u n d s h a l l b e t r a n s f e r r e d t o t h e S e w a g e W o r k s
S i n k i n g F u n d i f n e c e s s a r y t o p r e v e n t a d e f a u l t i n t h e p a y m e n t o f 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
t h e n o u t s t a n d i n g B o n d s o r 1 9 9 1 B o n d s o r , i f n e c e s s a r y , t o e l i m i n a t e a n y d e f i c i e n c i e s i n c r e d i t s
t o o r m i n i m u m b a l a n c e i n t h e R e s e r v e A c c o u n t o f t h e S e w a g e W o r k s S i n k i n g F u n d o r m a y b e
0
m u o a o r v . w r s - 2 4 -
0 transferred to the Operation and Maintenance Fund to meet unforeseen contingencies in the
operation, repair and maintenance of the sewage works.
Sec. 17. Maintenance of Funds The Sinking Fund shall be deposited in and maintained
as a separate account or accounts from all other accounts of the City. The Operation and
Maintenance Fund and the Improvement Fund may be maintained in a single account, or
accounts, but such account, or accounts, shall likewise be maintained separate and apart from
all other accounts of the City and apart from the Sinking Fund account or accounts. All moneys
deposited in the accounts shall be deposited, held and secured as public funds in accordance with
the public depository laws of the State of Indiana; provided that moneys therein may be invested
in obligations in accordance with the applicable laws, including particularly Indiana Code. Title
5, Article 13, as amended or supplemented, and in the event of such investment the income
therefrom shall become a pan of the funds invested and shall be used only as provided in this
ordinance.
Sec. 18. Defeasance of the Bonds If, when the Bonds or a portion thereof shall have
become due and payable in accordance with their terms or shall have been duly called for
redemption or irrevocable instructions to call the Bonds or a portion thereof for redemption shall
have been given, and the whole amount of the principal and the interest and the premium, if
any, so due and payable upon all of the Bonds or a portion thereof then outstanding shall be
paid; or (i) cash (insured at all times by the Federal Deposit Insurance Corporation or otherwise
collateralized with obligations described in (ii) below), or (ii) direct obligations of (including
obligations issued or held in book entry form on the books of) the Department of the Treasury
of the United States of America, the principal of and the interest on which when due will
11
1DMDF9.WP5 - 25 -
provide sufficient moneys for such purpose, shall be held in trust for such purpose, and
provision shall also be made for paying all fees and expenses for the redemption, then and in
that case the Bonds or any designated portion thereof issued hereunder shall no longer be
deemed outstanding or entitled to the pledge of the Net Revenues of the City's sewage works.
Sec. 19. Rate Covenant The City covenants and agrees that it will establish and
maintain just and equitable rates or charges for the use of and the service rendered by the works,
to be paid by the owner of each and every lot, parcel of real estate or building that is connected
with and uses said sewage works by or through any part of the sewage system of the City, or
that in any way uses or is served by such works: that such rates or charges shall be sufficient
in each year for the payment of the proper and reasonable expenses of operation, repair and
maintenance of the works, and for the payment of the sums required to be paid into the Sinking
Fund by the Act and this ordinance. Such rates or charges shall, if necessary, be changed and
readjusted from time to time so that the revenues therefrom shall always be sufficient to meet
the expenses of operation, repair and maintenance of the sewage works and the requirements of
the Sinking Fund. The rates or charges so established shall apply to any and all use of such
works by and service rendered to the City and all departments thereof, and shall be paid by the
City or the various departments thereof as the charges accrue.
Sec. 20. Additional Bond Provisions The City reserves the right to authorize and issue
additional BANs at any time ranking on a parity with the BANS. The City reserves the right
to authorize and issue additional bonds payable out of the Net Revenues of its sewage works
ranking on a parity with the Bonds for the purpose of financing the cost of future additions.
IDD08DF9.WP5 - 26 -
® extensions and improvements to its sewage works, or to refund obligations, subject to the
following conditions:
(a) All required payments into the Sinking Fund shall have been made in accordance
with the provisions of this ordinance, and the interest on and principal of all bonds payable from
the Net Revenues of the sewage works shall have been paid in accordance with their terms.
(b) The Net Revenues of the sewage works in the fiscal year immediately preceding
the issuance of any such bonds ranking on a parity with the Bonds shall be not less than one
hundred twenty-five percent (125 %) of the maximum annual interest and principal requirements
of the then outstanding bonds and the additional parity bonds proposed to be issued; or, prior
to the issuance of the parity bonds the sewage rates and charges shall be increased sufficiently
so that the increased rates and charges applied to the previous year's operations would have
® produced Net Revenues for said year equal to not less than one hundred twenty -five percent
(125 %) of the maximum annual interest and principal requirements of all bonds payable from
the revenues of the sewage works, including the additional panty bonds proposed to be issued.
For purposes of this subsection, the records of the sewage works shall be analyzed and
all showings prepared by a certified public accountant employed by the City for that purpose.
(c) The interest on the additional parity bonds shall be payable semiannually on the
first days of January and July and the principal on, or mandatory sinking fund redemptions for,
the additional panty bonds shall be payable annually on the first day of January.
Sec. 21. Further Covenants of the City: Maintenance Insurance Pledge Not To
Encumber, Subordinate Indebtedness. and Contract with Bondholders For the purpose of
EDMDV9.we5 -27 -
® further safeguarding the interests of the owners of the BANS and the Bonds. it is hereby
specifically provided as follows:
(a) All contracts let by the City in connection with the construction of the Project
shall be let after due advertisement as required by the laws of the State of Indiana, and all
contractors shall be required to furnish surety bonds in an amount equal to 100% of the amount
of such contracts, to insure the completion of said contracts in accordance with their terms, and
such contractors shall also be required to carry such employers' liability and public liability
insurance as are required under the laws of the State of Indiana in the case of public contracts,
and shall be governed in all respects by the laws of the State of Indiana relating to public
contracts.
(b) The Project shall be constructed under plans and specifications approved by a
competent engineer designated by the City. All estimates for work done or material furnished
shall first be checked by the engineer and approved by the City.
(c) So long as any of the Bonds and BANS are outstanding, the Citv shall at all times
maintain the sewage works system in good condition, and operate the same in an efficient
manner and at a reasonable cost.
(d) So long as any of the Bonds and BANS are outstanding, the City shall maintain
insurance on the insurable parts of the system, of a kind and in an amount such as is usually
carried by private corporations engaged in a similar type of business. All insurance shall be
placed with responsible insurance companies qualified to do business under the laws of the state
of Indiana.
E
mnoaDes.wrs - 28 -
As an alternative to maintaining such insurance, the City may maintain a self - insurance
program with catastrophic or similar coverage so long as such program meets the requirements
of any applicable laws or regulations and is maintained in a manner consistent with programs
maintained by similarly situated municipalities.
All insurance or self - insurance proceeds shall be used either in replacing or restoring the
property destroyed or damaged, or shall be deposited in the Sinking Fund.
(e) So long as any of the BANS and Bonds are outstanding, the City shall not
mortgage, pledge or otherwise encumber the property and plant of its sewage works system, or
any pan thereof, and shall not sell, lease or otherwise dispose of any pan of the same, excepting
only such machinery, equipment or other property as may be replaced, or shall no longer be
necessary for use in connection with said utility.
® (f) Except as otherwise specifically provided in Section 20 of this ordinance, so long
as any of the Bonds are outstanding, no additional bonds or other obligations pledging any
portion of the revenues of the system shall be authorized, issued or executed by the City, except
such as shall be made junior and subordinate in all respects to the Bonds, unless ail of the Bonds
are redeemed or defeased coincidentally with the delivery of such additional bonds or other
obligations.
(g) The City shall take all actions or proceedings necessary and proper, to the extent
permitted by law, to require connection of all property where liquid and solid waste, sewage,
night soil or industrial waste is produced with available sanitary sewers. The City shall, insofar
as possible, and to the extent permitted by law, cause all such sanitary sewers to be connected
with said sewage works.
Ld
mooanrs.wrs -29 -
® (h) The provisions of this ordinance shall constitute a contract by and between the
City and the owners of the Bonds and BANS herein authorized. all the terms of which shall be
enforceable by anv bondholder by any and all appropriate proceedings in law or in equity. After
the issuance of the Bonds and BANS, this ordinance shall not be repealed, amended or modified
in any respect which will adversely affect the rights or interests of the owners of the Bonds and
BANS, nor shall the Common Council or any other body of the City adopt any law, ordinance
or resolution in anv way adversely affecting the rights of such owners so long as any of the
Bonds and BANS, or the interest thereon, remain outstanding or unpaid. Except in the case of
changes described in Section 22(a) -(f), this ordinance may be amended, however, without the
consent of the owners of the Bonds or BANS, if the Common Council determines, in its sole
discretion, that such amendment would not adversely affect the owners of the Bonds or BANS.
® (i) The provisions of this ordinance shall be construed to create a trust in the
proceeds of the sale of the Bonds and BANS herein authorized for the uses and purposes herein
set forth, and the owners of the Bonds and BANS shall retain a lien on such proceeds until the
same are applied in accordance with the provisions of this ordinance and said governing Act.
The provisions of this ordinance shall also be construed to create a trust in the Net Revenues
herein directed to be set apart and paid into the Sinking Fund for the uses and purposes of that
Fund as in this ordinance set forth. The owners of the Bonds shall have all the rights, remedies
and privileges set forth in the provisions of the governing Act, including the right to have a
receiver appointed to administer the sewage works in the event the City shall fail or refuse to
fix and collect sufficient rates and charges for those purposes, or shall fail or refuse to operate
MMDF9.wv5 - 30 -
and maintain said system and to apply properly the revenues derived from the operation thereof,
or if there be a default in the payment of the interest on or principal of the Bonds.
Sec. 22. Amendments with Consent of Bondholders Subject to the terms and provisions
contained in this section, and not otherwise, the owners of not less than sixty -six and two - thirds
percent (66 2/3 %) in aggregate principal amount of the Bonds issued pursuant to this ordinance
and then outstanding shall have the right from time to time, to consent to and approve the
adoption by the Common Council of the City of such ordinance or ordinances supplemental
hereto or amendatory hereof, as shall be deemed necessary or desirable by the City for the
purpose of modifying, altering, amending, adding to or rescinding in any particular anv of the
terms or provisions contained in this ordinance, or in any supplemental ordinance; provided.
however, that nothing herein contained shall permit or be construed as permitting:
® (a) An extension of the maturity of the principal of or interest on, or any mandatory
sinking fund redemption date for, anv Bond issued pursuant to this ordinance; or
(b) A reduction in the principal amount of any Bond or the redemption premium or
the rate of interest thereon: or
(c) The creation of a lien upon or a pledge of the revenues or Net Revenues of the
sewage works ranking prior to the pledge thereof created by this ordinance; or
(d) A preference or priority of any Bond or Bonds issued pursuant to this ordinance
over anv other Bond or Bonds issued pursuant to the provisions of this ordinance; or
(e) A reduction in the aggregate principal amount of the Bonds required for consent
to such supplemental ordinance; or
(f) A reduction in the Reserve Requirement.
LI
mo09oF9.wv5 - 31 -
If the owners of not less than sixty -six and two- thirds percent (66 2/3%) in aggregate
principal amount of the Bonds outstanding at the time of adoption of such supplemental
ordinance shall have consented to and approved the adoption thereof by written instrument to
be maintained on file in the office of the Clerk - Treasurer of the City, no owner of anv Bond
issued pursuant to this ordinance shall have any right to object to the adoption of such
supplemental ordinance or to object to any of the terms and provisions contained therein or the
operation thereof, or in any manner to question the propriety of the adoption thereof, or to
enjoin or restrain the Common Council of the City from adopting the same, or from taking any
action pursuant to the provisions thereof. Upon the adoption of any supplemental ordinance
pursuant to the provisions of this section, this ordinance shall be, and shall be deemed, modified
and amended in accordance therewith, and the respective rights, duties and obligations under this
O ordinance of the City and all owners of Bonds then outstanding, shall thereafter be determined,
exercised and enforced in accordance with this ordinance, subject in all respects to such
modifications and amendments. Notwithstanding anything contained in the foregoing provisions
of this ordinance, the rights and obligations of the City and of the owners of the Bonds
authorized by this ordinance, and the terms and provisions of the Bonds and this ordinance, or
any supplemental or amendatory ordinance, may be modified or altered in any respect with the
consent of the City and the consent of the owners of all the Bonds then outstanding.
Sec. 23. Investment of Funds
(a) The Clerk- Treasurer is hereby authorized to invest moneys pursuant to the
provisions of this ordinance and IC 5- 1 -14 -3 (subject to applicable requirements of federal law
•
WI)08DF9.WP5 - 32 -
" t o i n s u r e s u c h y i e l d i s t h e n c u r r e n t m a r k e t r a t e ) t o t h e e x t e n t n e c e s s a r y o r a d v i s a b l e t o p r e s e r v e
t h e e x c l u s i o n f r o m g r o s s i n c o m e o f i n t e r e s t o n t h e B o n d s a n d B A N S u n d e r f e d e r a l l a w .
( b ) T h e C l e r k - T r e a s u r e r s h a l l k e e p f u l l a n d a c c u r a t e r e c o r d s o f i n v e s t m e n t e a r n i n g s
a n d i n c o m e f r o m m o n e y s h e l d i n t h e f u n d s a n d a c c o u n t s c r e a t e d o r r e f e r e n c e d h e r e i n . I n o r d e r
t o c o m p l y w i t h t h e p r o v i s i o n s o f t h e o r d i n a n c e , t h e C l e r k - T r e a s u r e r i s h e r e b y a u t h o r i z e d a n d
d i r e c t e d t o e m p l o y c o n s u l t a n t s o r a t t o r n e y s f r o m t i m e t o t i m e t o a d v i s e t h e C i t y a s t o
r e q u i r e m e n t s o f f e d e r a l l l a w t o p r e s e r v e t h e t a x e x c l u s i o n . T h e C l e r k - T r e a s u r e r m a y p a y a n y
f e e s a s o p e r a t i o n e x p e n s e s o f t h e s e w a g e w o r k s .
S e c . 2 4 . T a x C o v e n a n t s I n o r d e r t o p r e s e r v e t h e e x c l u s i o n o f i n t e r e s t o n t h e B o n d s a n d
B A N s f r o m g r o s s i n c o m e f o r f e d e r a l t a x p u r p o s e s u n d e r S e c t i o n 1 0 3 o f t h e I n t e r n a l R e v e n u e
C o d e o f 1 9 8 6 a s e x i s t i n g o n t h e d a t e o f i s s u a n c e o f t h e B o n d s a n d B A N S , a s t h e c a s e m a y b e
� ( t h e " C o d e " ) a n d a s a n i n d u c e m e n t t o p u r c h a s e r s o f t h e B o n d s a n d B A N S , t h e C i t y r e p r e s e n t s ,
c o v e n a n t s a n d a g r e e s t h a t :
( a ) N o p e r s o n o r e n t i t y o t h e r t h a n t h e C i t y o r a n o t h e r s t a t e o r l o c a l g o v e r n m e n t a l u n i t
w i l l u s e p r o c e e d s o f t h e B o n d s o r B A N S o r p r o p e r t y f i n a n c e d b y t h e B o n d o r B A N p r o c e e d s
o t h e r t h a n a s a m e m b e r o f t h e g e n e r a l p u b l i c . N o p e r s o n o r e n t i t y o t h e r t h a n t h e C i t y o r a n o t h e r
s t a t e o r l o c a l g o v e r n m e n t a l u n i t w i l l o w n p r o p e r t y f i n a n c e d b y B o n d o r B A N p r o c e e d s o r w i l l
h a v e a n y a c t u a l o r b e n e f i c i a l u s e o f s u c h p r o p e r t y p u r s u a n t t o a l e a s e , a m a n a g e m e n t o r
i n c e n t i v e p a y m e n t c o n t r a c t , a r r a n g e m e n t s s u c h a s t a k e - o r - p a y o r o u t p u t c o n t r a c t s o r a n y o t h e r
t y p e o f a r r a n g e m e n t t h a t d i f f e r e n t i a t e s t h a t p e r s o n ' s o r e n t i t y ' s u s e o f s u c h p r o p e r t y f r o m u s e
b y t h e g e n e r a l p u b l i c .
I D D W D e v . w r s - 3 3 -
" ( b ) N o p o r t i o n o f t h e p r i n c i p a l o f o r i n t e r e s t o n t h e B o n d s o r B A N S i s ( u n d e r t h e
t e r m s o f t h e B o n d s , B A N S , t h i s o r d i n a n c e o r a n y u n d e r l y i n g a r r a n g e m e n t ) , d i r e c t l y o r i n d i r e c t i v ,
s e c u r e d b y a n i n t e r e s t i n p r o p e r t y u s e d o r t o b e u s e d f o r a n y p r i v a t e b u s i n e s s u s e o r p a y m e n t s
i n r e s p e c t o f a n y p r i v a t e b u s i n e s s u s e o r p a y m e n t s i n r e s p e c t o f s u c h p r o p e r t y o r t o b e d e r i v e d
f r o m p a y m e n t s ( w h e t h e r o r n o t t o t h e C i t y ) i n r e s p e c t o f s u c h p r o p e r t y o r b o r r o w e d m o n e y u s e d
o r t o b e u s e d f o r a p r i v a t e b u s i n e s s u s e .
( c ) N o B o n d o r B A N p r o c e e d s w i l l b e l o a n e d t o a n y p e r s o n o r e n t i t y o t h e r t h a n
a n o t h e r s t a t e o r l o c a l g o v e r n m e n t a l u n i t . N o B o n d o r B A N p r o c e e d s w i l l b e t r a n s f e r r e d , d i r e c t l y
o r i n d i r e c t l y , o r d e e m e d t r a n s f e r r e d t o a n o n g o v e r n m e n t a l p e r s o n i n a n y m a n n e r t h a t w o u l d i n
s u b s t a n c e c o n s t i t u t e a l o a n o f t h e B o n d o r B A N p r o c e e d s .
( d ) T h e C i t y w i l l n o t t a k e a n y a c t i o n n o r f a i l t o t a k e a n y a c t i o n w i t h r e s p e c t t o t h e
" B o n d s o r B A N t h a t w o u l d r e s u l t i n t h e l o s s o f t h e e x c l u s i o n f r o m g r o s s i n c o m e f o r f e d e r a l t a x
p u r p o s e s o n t h e B o n d s o r B A N S p u r s u a n t t o S e c t i o n 1 0 3 o f t h e C o d e , n o r w i l l t h e C i t y a c t i n
a n y o t h e r m a n n e r 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 s u c h e x c l u s i o n .
( e ) I t s h a l l b e n o t a n e v e n t o f d e f a u l t u n d e r t h i s o r d i n a n c e i f t h e i n t e r e s t o n a n y B o n d
i s n o t e x c l u d a b l e f r o m g r o s s i n c o m e f o r f e d e r a l t a x p u r p o s e s o r o t h e r w i s e p u r s u a n t t o a n y
p r o v i s i o n o f t h e C o d e w h i c h i s n o t c u r r e n t l y i n e f f e c t a n d i n e x i s t e n c e o n t h e d a t e o f i s s u a n c e
o f t h e B o n d s o r B A N S , a s t h e c a s e m a y b e .
( f ) T h e s e c o v e n a n t s a r e b a s e d s o l e l y o n c u r r e n t l a w i n e f f e c t a n d i n e x i s t e n c e o n t h e
d a t e o f d e l i v e r y o f s u c h B o n d s a n d B A N S , a s t h e c a s e m a y b e .
( g ) T h e C i t y r e p r e s e n t s t h a t :
m D o e n F V . w r s - 3 4 -
" ( 1 ) T h e C i t y i s a g o v e r n m e n t a l u n i t w i t h g e n e r a l t a x i n g p o w e r s , w h i c h p o w e r s
i n c l u d e t h e p o w e r t o i m p o s e t a x e s o f g e n e r a l a p p l i c a b i l i t y t h a t , w h e n c o l l e c t e d , m a y b e
u s e d f o r t h e g e n e r a l p u r p o s e s o f t h e C i t y ;
( 2 ) T h e B A N s a n d t h e b o n d s a r e n o t p r i v a t e a c t i v i t y b o n d s a s d e f i n e d i n
S e c t i o n 1 4 1 o f t h e C o d e :
( 3 ) A t l e a s t 9 5 % o f t h e n e t p r o c e e d s o f t h e B A N S a n d b o n d s w i l l b e u s e d f o r
l o c a l g o v e r n m e n t a l a c t i v i t i e s o f t h e C i t y o r o f a g o v e r n m e n t a l u n i t , t h e j u r i s d i c t i o n o f
w h i c h i s e n t i r e l y w i t h i n t h e j u r i s d i c t i o n o f t h e C i t y ; a n d
( 4 ) T h e a g g r e g a t e f a c e a m o u n t o f a l l t a x - e x e m p t b o n d s ( o t h e r t h a n p r i v a t e
a c t i v i t y b o n d s ) i s s u e d b y t h e C i t y a n d a l l u n i t s s u b o r d i n a t e t o t h e C i t y , i n c l u d i n g o n -
b e h a l f - o f i s s u e r a n d s u b o r d i n a t e e n t i t i e s a s t h o s e t e r m s a r e d e f i n e d i n R e g u l a t i o n s S e c t i o n
"
1 . 1 4 8 - 8 ( c ) ( 2 ) , i s n o t r e a s o n a b l y e x p e c t e d t o e x c e e d $ 5 , 0 0 0 , 0 0 0 i n c a l e n d a r y e a r 1 9 9 4 .
( 5 ) T h e C i t y h a s n o t b e e n f o r m e d o r a v a i l e d o f t o o t h e r w i s e a v o i d t h e
p u r p o s e s o f t h e $ 5 , 0 0 0 . 0 0 0 s i z e l i m i t a t i o n .
T h e r e f o r e , t h e C i t y m e e t s t h e r e q u i r e m e n t s o f S e c t i o n 1 4 8 ( f ) ( 4 ) ( D ) o f t h e C o d e a n d w i l l
n o t h a v e t o r e b a t e a n y a r b i t r a g e p r o f i t s t o t h e U n i t e d S t a t e s .
( h ) T h e C i t y r e p r e s e n t s t h a t :
( i ) T h e B o n d s a n d B A N S a r e n o t p r i v a t e a c t i v i t y b o n d s a s d e f i n e d i n S e c t i o n
1 4 1 o f t h e C o d e :
( i i ) T h e C i t y h e r e b y d e s i g n a t e s t h e B o n d s a n d B A N S a s q u a l i f i e d t a x - e x e m p t
o b l i g a t i o n s f o r p u r p o s e s o f S e c t i o n 2 6 5 ( b ) o f t h e C o d e : a n d
e
i D o 0 8 o r 9 . w r 5 - 3 5 -
" ( i i i ) T h e r e a s o n a b l y a n t i c i p a t e d a m o u n t o f q u a l i f i e d t a x - e x e m p t o b l i g a t i o n s
( i n c l u d i n g q u a l i f i e d 5 0 1 ( c ) ( 3 ) o b l i g a t i o n s a n d t a x - e x e m p t l e a s e s b u t
e x c l u d i n g o t h e r p r i v a t e a c t i v i t y b o n d s ) w h i c h w i l l b e i s s u e d b y t h e C i t y ,
a n d a l l e n t i t i e s s u b o r d i n a t e t o t h e C i t y d u r i n g 1 9 9 4 d o e s n o t e x c e e d
' 1 1 1 1 1 1 1
( i v ) T h e C i t y w i l l n o t d e s i g n a t e m o r e t h a n $ 1 0 , 0 0 0 , 0 0 0 o f q u a l i f i e d t a x -
e x e m p t o b l i g a t i o n s d u r i n g 1 9 9 4 .
T h e r e f o r e , t h e B o n d s a n d B A N S q u a l i f y f o r t h e e x c e p t i o n i n t h e C o d e f r o m t h e
d i s a l l o w a n c e o f 1 0 0 % o f t h e d e d u c t i o n b y f i n a n c i a l i n s t i t u t i o n s o f i n t e r e s t e x p e n s e a l l o c a b l e t o
n e w l y a c q u i r e d t a x - e x e m p t o b l i g a t i o n s .
S e c . 2 5 . I s s u a n c e o f B A N S ( a ) T h e C i t y , h a v i n g s a t i s f i e d a l l t h e s t a t u t o r y r e q u i r e m e n t s
" f o r t h e i s s u a n c e o f i t s B o n d s , m a y e l e c t t o i s s u e i t s B A N o r B A N S t o a f i n a n c i a l i n s t i t u t i o n , t h e
I n d i a n a B o n d B a n k , o r t o a n y o t h e r p u r c h a s e r , p u r s u a n t t o a B o n d A n t i c i p a t i o n N o t e P u r c h a s e
A g r e e m e n t ( t h e " P u r c h a s e A g r e e m e n t " ) t o b e e n t e r e d i n t o b e t w e e n t h e C i t y a n d t h e p u r c h a s e r
o f t h e B A N o r B A N S . T h e C o m m o n C o u n c i l h e r e b y a u t h o r i z e s t h e i s s u a n c e a n d e x e c u t i o n o f
t h e B A N o r B A N S i n l i e u o f i n i t i a l l y i s s u i n g t h e B o n d s t o p r o v i d e i n t e r i m F i n a n c i n g f o r t h e
P r o j e c t u n t i l p e r m a n e n t f i n a n c i n g b e c o m e s a v a i l a b l e . I t s h a l l n o t b e n e c e s s a r y f o r t h e C i t y t o
r e p e a t t h e p r o c e d u r e s f o r t h e i s s u a n c e o f i t s B o n d s , a s t h e p r o c e d u r e s f o l l o w e d b e f o r e t h e
i s s u a n c e o f t h e B A N o r B A N S a r e f o r a l l p u r p o s e s s u f f i c i e n t t o a u t h o r i z e t h e i s s u a n c e o f t h e
B o n d s a n d t h e u s e o f t h e p r o c e e d s t o r e p a y t h e B A N o r B A N S .
( b ) T h e M a y o r a n d t h e C l e r k - T r e a s u r e r a r e h e r e b y a u t h o r i z e d a n d d i r e c t e d t o e x e c u t e a
P u r c h a s e A g r e e m e n t i n s u c h f o r m o r s u b s t a n c e a s t h e y s h a l l a p p r o v e a c t i n g u p o n t h e a d v i c e o f
C ��
M M D F 9 . w r 5 - 3 6 -
" c o u n s e l . T h e M a y o r a n d t h e C l e r i c - T r e a s u r e r m a y a l s o t a k e s u c h o t h e r a c t i o n s o r d e l i v e r s u c h
o t h e r c e r t i f i c a t e s a s a r e n e c e s s a r y o r d e s i r a b l e i n c o n n e c t i o n w i t h t h e i s s u a n c e o f t h e B A N S o r
t h e B o n d s a n d t h e o t h e r d o c u m e n t s n e e d e d f o r t h e f i n a n c i n g a s t h e y d e e m n e c e s s a r y o r d e s i r a b l e
t o c o n n e c t i o n t h e r e w i t h .
S e c . 2 6 . N o n c o m p l i a n c e w i t h T a x C o v e n a n t s N o t w i t h s t a n d i n g a n y o t h e r p r o v i s i o n s o f
t h i s o r d i n a n c e , t h e c o v e n a n t s a n d a u t h o r i z a t i o n s c o n t a i n e d i n t h i s o r d i n a n c e ( t h e " T a x S e c t i o n s " )
w h i c h a r e d e s i g n e d t o p r e s e r v e t h e e x c l u s i o n o f i n t e r e s t o n t h e B o n d s a n d B A N S f r o m g r o s s
i n c o m e u n d e r f e d e r a l l a w ( t h e " T a x E x e m p t i o n " ) n e e d n o t b e c o m p l i e d w i t h i f t h e C i t y r e c e i v e s
a n o p i n i o n o f n a t i o n a l l y r e c o g n i z e d b o n d c o u n s e l t h a t a n y T a x S e c t i o n i s u n n e c e s s a r y t o p r e s e r v e
t h e T a x E x e m p t i o n .
S e c . 2 7 . R a t e O r d i n a n c e T h e r a t e s a n d c h a r g e s o f t h e s e w a g e w o r k s a r e s e t f o r t h i n
" O r d i n a n c e N o . t o b e a d o p t e d o n J u l y 2 6 , 1 9 9 4 . S u c h o r d i n a n c e i s i n c o r p o r a t e d
h e r e i n b y r e f e r e n c e .
S e c . 2 8 . C o n f l i c t i n g O r d i n a n c e s A l l o r d i n a n c e s a n d p a n s o f o r d i n a n c e s i n c o n f l i c t
h e r e w i t h , e x c e p t t h e o r d i n a n c e a u t h o r i z i n g t h e 1 9 9 1 B o n d s . a r e h e r e b y r e p e a l e d ; p r o v i d e d .
h o w e v e r , t h a t t h i s o r d i n a n c e s h a l l n o t b e c o n s t r u e d a s a d v e r s e l y a f f e c t i n g t h e r i g h t s o f t h e
o w n e r s o f t h e 1 9 9 1 B o n d s .
S e c . 2 9 . H e a d i n g s T h e h e a d i n g s o r t i t l e s o f t h e s e v e r a l s e c t i o n s s h a l l b e s o l e l y f o r
c o n v e n i e n c e o f r e f e r e n c e a n d s h a l l n o t a f f e c t t h e m e a n i n g , c o n s t r u c t i o n o r e f f e c t o f t h i s
o r d i n a n c e .
S e c . 3 0 . 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 b e i n f u l l f o r c e a n d e f f e c t 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 M a y o r .
0
I 0 0 0 a o e v . w r s - 3 7 -
0
Passed and adopted by the Common Council of the City of Greencastle this I
1994.
Presented by me to the Mayor of the City of Greencastle this day of ck—�
e
1994 a4 1t ;Q.m.
COMMO OUNCIL /
Preffaing OffitIer
4 rx4reasurer '
Signed and approved by me. the Mayor of the City of Greencastle, this Ledav of _
1994 at�rt.
rDDO&DF9.WP5
Z.�0
Mavor
MINE
0
r 1
U
EXHIBIT A
Additions and improvements to the City's sewage works
consisting of approximately 6,650 lineal feet of 8" sanitary
sewers in the Foxridge subdivision; new headworks structure at
the wastewater treatment plant, upgrade and /or replacement of the
IBM, North Jackson, South Jackson and Swampy lift stations
replacement of approximately 1,000 lineal feet of 6 force main
for 5th Street - Industrial Park area, and abondoning an existing
lift station and construction of approximately 1,575 lineal feet
of 8 sanitary sewer at Heartland Automotive.
E