HomeMy Public PortalAboutOrd. 721 - Issuance & Sale of LID #4 BondsORDINANCE NO. 721
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF McCALL, IDAHO,
AUTHORIZING THE ISSUANCE AND SALE OF LOCAL IMPROVEMENT DISTRICT
NO. 4 BONDS; SPECIFYING THE DATE, FORM, INTEREST RATE,
REGISTRATION, AND MATURITIES OF THE BONDS; ESTABLISHING A BOND
FUND, INTEREST FUND, AND RESERVE FUND; AUTHORIZING THE SALE OF
THE BONDS AT PRIVATE SALE; PROVIDING COVENANTS; PROVIDING FOR
RELATED MATTERS; AND PROVIDING AN EFFECTIVE DATE
WHEREAS, the City Council (the "Council") of the City of
McCall, Valley County, Idaho (the "City"), has heretofore, by
Ordinance No. 720, adopted on January 22, 1998, adopted and
confirmed the assessment roll in the total amount of $567,530.78
and provided for the issuance of local improvement district bonds
for Local Improvement District No. 4 ("L.I.D. No. 4") to pay the
costs of water system and public street improvements, together
with the expenses incident to the project or to the issuance of
bonds; and
WHEREAS, the sumof$223,724.43 of the confirmed assessment
roll for L.I.D. No. 4 was prepaid or otherwise credited during
the thirty (30) day prepayment period permitted by law for the
payment of assessments without penalty or interest, leaving
unpaid assessments, including the amount necessary for a reserve
fund for the local improvement district bonds, in the amount of
$343,806.35; and
WHEREAS, the Council desires to issue and sell bonds of
L.I.D. No. 4 in the principal amount of $343,806.35 in order to
pay the remaining costs and expenses of the improvements and to
fund a debt service reserve fund as additional security for the
bonds; and
WHEREAS, the City is authorized to sell local improvement
district bonds at private sale and has received an offer to
purchase such bonds, and the Council desires to sell the bonds in
accordance with such offer.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF McCALL, IDAHO, as follows:
Section 1: BONDS AUTHORIZED
Local Improvement District No. 4 Bonds (the "Bonds") in the
principal amount of $343,806.35 are hereby authorized to be
issued, sold, and delivered. The Bonds are issued in the prin-
cipal amount of the assessable portion of the cost of effecting
the above -described local improvements, including the contract
price and the cost and expenses of engineering, legal, and all
other costs incidental to said improvements, including the costs
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of issuance of the Bonds, publications, interim financing, and
the cost of establishing a reserve fund for the Bonds.
Section 2: DESCRIPTION OF BONDS
The Bonds shall be dated March 19, 1998, shall be in the
aggregate principal amount of $343,806.35, and shall be issued,
sold and delivered at par plus accrued interest to their date of
delivery, as hereinafter set forth. The Bonds shall be in
denominations of $1,000, or any integral multiple thereof, except
Bonds maturing on March 19, 1999, which may be in a different
denomination. The Bonds shall be registered as to both principal
and interest, shall be numbered separately in the manner and with
any additional designation as the Bond Registrar deems necessary,
shall bear interest, payable annually on March 19 of each year,
commencing March 19, 1999, from their date at the following rates
of interest, and shall mature serially on March 19 in the
following years and the following amounts:
Maturity Date
March 19, 1999
March 19, 2000
March 19, 2001
March 19, 2002
March 19, 2003
March 19, 2004
March 19, 2005
March 19, 2006
March 19, 2007
March 19, 2008
Principal Amount Interest Rate
$25,806.35
28,000.00
30,000.00
31,000.00
33,000.00
35,000.00
37,000.00
39,000.00
41,000.00
44,000.00
6.000
6.00
6.00
6.00
6.00
6.00
6.00
6.00
6.00
6.00
Both principal of and interest on the Bonds shall be fully paid
within ten (10) years from their date. The Bonds shall be
substantially in the form as set forth in Exhibit "A" attached
hereto and by reference made a part hereof.
Section 3: EXECUTION
Without unreasonable delay, the City shall cause the Bonds
to be prepared, executed, authenticated, and delivered, which
Bonds may be lithographed or printed with engraved or litho-
graphed borders, or may be in typewritten form. The Bonds shall
be signed by the Mayor, countersigned by the City Treasurer, and
attested by the City Clerk, and the official seal of the City
shall be impressed thereon. Such signatures shall be effective
so long as any Bonds are outstanding, irrespective of the fact
that any of the persons holding such offices may no longer be in
office prior to the issuance of any Bonds herein authorized.
Bonds bearing the signatures of such officers shall be valid when
delivered in accordance with the terms of this Ordinance. Any
Bond may also be signed and attested on behalf of the City by
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such persons as at the actual date of execution of such Bond
J shall be the proper officers of the City, although at the
original date of such Bond such persons shall not have been such
officers of the City.
Until the bonds are prepared, the City may, if deemed
necessary by the Mayor, utilize a temporary bond or bonds which
shall be typewritten, and which shall be delivered to the
purchaser of the Bonds in lieu of definitive bonds, subject to
the same provisions, limitations, and conditions as the Bonds.
The temporary bonds shall be dated as of the date of the Bonds,
shall be in the aggregate principal amount of $343,806.35, shall
be numbered T-1 and consecutively thereafter, shall be
substantially of the tenor of the Bonds, but with such omissions,
insertions, and variations as may be appropriate to temporary
bonds, and shall be manually signed by the Mayor, the City
Treasurer, and the City Clerk, and shall have the seal of the
City impressed thereon.
Section 4: PLACE AND MANNER OF PAYMENT
Both principal of and interest on the Bonds shall be payable
in lawful money of the United States of America. Payment of each
installment of interest on the Bonds shall be made on its annual
due date by check or draft of the Bond Registrar (hereinafter
defined) mailed to the registered owners thereof, or assigns, at
the address appearing on the registration books for L.I.D. No. 4
maintained by the Bond Registrar (the "Bond Register") as of the
close of business on the fifteenth day of the month preceding
each interest payment date. Principal of the Bonds shall be
payable upon presentation and surrender of the Bonds by the
registered owners thereof at the office of the Bond Registrar, on
or after the date of maturity or prior redemption.
Section 5: BOND REGISTRAR
The City Treasurer is hereby appointed as bond registrar,
transfer agent, and paying agent for the Bonds, and is herein
referred to as the "Bond Registrar." The Bond Registrar shall
keep, or cause to be kept, at his office, sufficient books for
the registration and transfer of the Bonds.
The Bonds may be transferred only upon the books for the
registration and transfer of Bonds, upon the surrender thereof at
the office of the Bond Registrar, together with a form of
transfer duly executed by the Registered Owner or his attorney
duly authorized in writing substantially in the form set forth in
the form of Bond referred to in Section 3 hereof. Upon the
transfer of any Bond, there shall be issued in the name of the
transferee or transferees a new fully registered Bond of the same
denomination, maturity, and interest rate as the surrendered
Bond. The new Bond shall bear the same date as the date of the
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surrendered Bond, but shall bear interest from the immediately
preceding interest payment date to which interest has been paid
or duly provided for. This section is intended to provide for a
system of registration as provided by Title 57, Chapter 9, Idaho
Code.
The Bond Registrar shall not be required to exchange or
transfer any Bond within fifteen (15) days of an interest payment
date or, in the case of any redemption of Bonds, within fifteen
(15) days of the redemption date.
Section 6: REDEMPTION
The City reserves the right to redeem any or all of the
Bonds on any payment date whenever the City Treasurer has
sufficient funds available in the Bond Fund and Interest Fund (as
defined in Section 7 hereof) to pay the principal of and accrued
interest on one or more of the Bonds, over and above the amounts
necessary to pay currently maturing installments of principal and
interest.
In the case of redemption of fewer than all of the outstand-
ing Bonds, Bonds to be redeemed shall be selected by the Bond
Registrar by lot, and shall, insofar as can be done taking into
consideration the denominations of the outstanding bonds,
represent an equal amount of Bonds from each maturity outstanding
at the time of redemption. The decision of the Bond Registrar in
selecting the Bonds for retirement shall be conclusive in the
absence of fraud.
Portions of any Bond of a denomination of more than $1,000
may be redeemed. The portion of any Bond of a denomination of
more than $1,000 to be redeemed shall be in the principal amount
of $1,000 or any integral multiple of $1,000, and in selecting
portions of such Bonds for redemption, the Bond Registrar will
treat each such Bond as representing that number of Bonds of
$1,000 denomination which is obtained by dividing the principal
amount of each Bond by $1,000.
Notice of any intended redemption shall be given not less
than thirty (30) nor more than sixty (60) days prior to the
redemption date by first class mail, postage prepaid, to the
registered owner of any Bond to be redeemed at the address
appearing on the Bond Register. The requirements of this
Ordinance shall be deemed to be complied with when notice is
mailed as herein provided, regardless of whether or not it is
actually received by the owner of such Bond. Interest on all of
such Bonds so called for redemption shall cease to accrue on the
date fixed for redemption unless such Bond or Bonds so called for
redemption are not redeemed upon presentation made pursuant to
such call.
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Section 7: BOND FUND AND INTEREST FUND
The City Treasurer is hereby authorized and empowered, and
it shall be his duty, to receive and collect for L.I.D. No. 4 all
assessments levied on property within L.I.D. No. 4 to pay the
costs of said improvements, the installments thereof, the
interest thereon, and any penalties accrued, and to pay and
disburse such payments to the person or persons lawfully entitled
to receive the same, in accordance with the laws of the State of
Idaho and all ordinances and resolutions of the City.
A11 moneys constituting payment of principal of the unpaid
installments of assessments for L.I.D. No. 4 shall be deposited
into a special fund, designated "City of McCall Local Improvement
District No. 4 Bond Fund" (the "Bond Fund"), which is hereby
created, and shall be used and applied for the purpose of paying
the principal of the Bonds herein authorized and for no other
purpose whatsoever, and as security for such payment the Bond
Fund is hereby pledged.
A11 moneys constituting payment of interest on the unpaid
installments of assessments for L.I.D. No. 4 shall be deposited
into a special fund designated "City of McCall Local Improvement
District No. 4 Interest Fund" (the "Interest Fund"), which is
hereby created, and shall be used and applied for the purpose of
paying the interest on the Bonds herein authorized and for no
other purpose whatsoever, and as security for such payment the
Interest Fund is hereby pledged.
Both principal of and interest on the Bonds are payable only
out of said Bond Fund and Interest Fund, and, if necessary, out
of the Local Improvement District No. 4 Reserve Fund, hereinafter
created, and not otherwise.
Moneys in the Bond Fund and Interest Fund for L.I.D. No. 4
shall be deposited in such bank or banks as are designated as
depositories of public moneys for the funds of the City under the
depository laws of the State of Idaho for the deposit of public
funds or investments as provided by law. Interest received on
such funds to be deposited or invested shall be placed to the
credit of the fund from which it was earned.
Section 8: RESERVE FUND
A. For the purpose of further securing the payment of the
principal of and interest on the Bonds, there is hereby created a
special fund, separate and apart from any other funds of the City
and of L.I.D. No. 4, designated the "City of McCall Local
Improvement District No. 4 Reserve Fund" (the "Reserve Fund"),
which shall be maintained by the City Treasurer so long as any
Bonds remain outstanding. There shall be transferred from the
proceeds of the Bonds to the Reserve Fund a sum equal to
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$31,255.12, which shall be maintained as a trust fund for the
benefit of the owners of the Bonds and which shall be used solely
for the purposes set forth in paragraph B of this section.
B. Whenever, on any principal and interest payment date,
there are insufficient moneys in either the Bond Fund or the
Interest Fund to make the payments of principal or interest then
due, the amount of any such deficiency shall be withdrawn from
the Reserve Fund and transferred to the Bond Fund or Interest
Fund, or both such Funds, in the amounts required, together with
other moneys in such Funds, to make the payments of principal and
interest then due. The amounts so withdrawn shall be restored to
the Reserve Fund from payments of the delinquent assessments
until the amount of the Reserve Requirement has been restored.
Whenever the amount in the Reserve Fund is insufficient to meet
claims for principal and interest against the Reserve Fund, the
Council may appropriate funds from other legally available
sources to cover such deficiency, as provided by Section 50-1771,
Idaho Code.
C. Moneys in the Reserve Fund may be deposited or invested
in the same manner as other funds of the City. All interest or
investment earnings shall be deposited into the Bond Fund.
D. In the event that, on any principal and interest
payment date, the Reserve Fund balance exceeds ten percent (100)
of the principal amount of the Bonds outstanding, the City shall
transfer to the Bond Fund the amount in excess of ten percent
(100) of the principal amount of the Bonds outstanding. Upon
such transfer, the City shall credit each person paying his or
her assessments in installments, whose prior installment payments
have been paid, by the proportionate amount that his or her
payments bear to the total payments of persons entitled to a
credit hereunder. The total credited to a person shall not
exceed the portion of such person's assessment attributable to
the Reserve Fund.
Section 9:
The sale of
Graham, of Boise,
Section 10:
SALE OF BONDS
the Bonds to Chester W. Graham and Anna N.
Idaho, is hereby approved.
PUBLICATION OF ORDINANCE
Pursuant to Idaho Code Section 50-1727, this Ordinance shall
be published once in the official newspaper of the City. No
contest or proceeding to question the validity or legality of
this Ordinance or of the Bonds authorized hereby shall be brought
in any court by any person for any cause whatsoever after the
expiration of thirty (30) days from the publication of this
Ordinance, and after such time the validity, legality, and
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regularity of this Ordinance and the Bonds authorized hereby
shall be conclusively presumed.
Section 11: COVENANTS OF THE CITY
The City further covenants and agrees:
A. In accordance with Section 149(a) of the Internal
Revenue Code of 1986, as amended (the "Code"), the Bonds shall be
issued and remain in fully registered form in order that interest
thereon be excluded from gross income of the owners of the Bonds
for federal income tax purposes. The City covenants and agrees
that it will take no action to permit the Bonds to be issued in,
or converted to, bearer or coupon form.
B. The Bonds are hereby designated as "qualified
tax-exempt obligations" within the meaning and for the purposes
of Section 265(b)(3) of the Code, and the City does not
reasonably anticipate that it will designate more than
$10,000,000, including the Bonds, as qualified tax-exempt
obligations during the calendar year 1998.
C. None of the proceeds of the Bonds will be used directly
or indirectly (i) to make or finance loans to persons or (ii) in
any trade or business carried on by any person (other than use as
a member of the general public). For purposes of the preceding
sentence, the term "person" does not include a government unit
other than the United States or any agency or instrumentality
thereof, and the term "trade or business" means any activity
carried on by a person other than a natural person. The City
further covenants and agrees to take no action which would cause
the Bonds to be "private activity bonds," nor will it omit to
take any action necessary to prevent the Bonds from becoming
"private activity bonds," within the meaning of Section 141 of
the Code.
.D. The City has general taxing powers. The Bonds are not
"private activity bonds" within the meaning of Section 141 of the
Code. 95% or more of then net proceeds of the Bonds are to be
used for the local governmental activities of the City. The City
has no subordinate entities. The City has not issued, and has no
present expectation of issuing, tax-exempt obligations in
calendar year 1998 in a face amount which exceeds $5,000,000.
Accordingly, under Section 148 (f)(4)(D) of the Code, the City is
not required to pay rebates to the United States under Section
148(f) of the Code.
E. The Mayor, City Clerk, and City Treasurer, or any one
of such officials, as may be appropriate, are each hereby
authorized and directed to execute, on behalf of the City, such
certificate or certificates as shall be necessary to establish
that the Bonds are not "arbitrage bonds" within the meaning of
Page 7
Section 148 of the Code and the Treasury Regulations promulgated
thereunder, and to establish that interest on the Bonds is not
and will not become includable in the gross income of the owners
of the Bonds under the Code and applicable regulations. The City
covenants and agrees that no use will be made of the proceeds of
the Bonds, or any funds of the City which may, pursuant to
Section 148 of the Code and applicable regulations, be deemed to
be proceeds of the Bonds, which would cause the Bonds to be
"arbitrage bonds" within the meaning of Section 148 of the Code.
The City further covenants to comply throughout the term of the
Bonds with the requirements of Section 148 of the Code and the
regulations promulgated thereunder in order to prevent the Bonds
from becoming "arbitrage bonds."
F. The City will comply with the information reporting
requirements of Section 149(e) of the Code.
G. None of the proceeds of the Bonds will be used to
reimburse the City for capital expenditures made prior to the
date of delivery of the Bonds unless the City, not later than 60
days after the payment of such expenditure, shall have adopted an
official intent resolution as provided by Section 1.150-2 of the
Treasury Regulations.
Section 12: FURTHER AUTHORITY
The Mayor, City Clerk, and City Treasurer, or any of such
officers, as may be appropriate to the circumstances, are hereby
authorized to execute, on behalf of the City, such receipts,
certifications, and other documents as may be necessary or
appropriate to effect the issuance, sale, and delivery of the
Bonds.
Section 13: EFFECTIVE DATE
This Ordinance shall take effect and be in force immediately
upon its passage and approval.
DATED this 12th day of March, 1998.
CITY OF MCCALL
Valley County, Idaho
BY
Mayor
ATTEST:
City Clerk
( S E A L )
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REGISTERED
NO.
INTEREST RATE
UNITED STATES OF AMERICA
STATE OF IDAHO
COUNTY OF VALLEY
REGISTERED
CITY OF McCALL
LOCAL IMPROVEMENT DISTRICT NO. 4 BOND
MATURITY DATE DATED DATE
6.0% March 19, 1998
REGISTERED OWNER:
PRINCIPAL AMOUNT: DOLLARS
THE CITY OF McCALL, Valley County, Idaho (the "City"), for
value received, promises to pay from the "City of McCall Local
Improvement District No. 4 Bond Fund" (the "Bond Fund") created
by Ordinance No. 721, adopted on March 12, 1998 (the "Bond
Ordinance"), to the registered owner identified above, or
registered assigns, on the maturity date specified above, the
principal sum indicated above, and to pay interest thereon from
the "City of McCall Local Improvement District No. 4 Interest
Fund" (the "Interest Fund") created by the Bond Ordinance, from
March 19, 1998, or the most recent date to which interest has
been paid or duly provided for, at the rate per annum specified
above, payable on March 19, 1999, and annually thereafter on the
19th day of March of each year until the date of maturity or
prior redemption of this Bond. Both principal and interest are
payable only out of said Bond Fund and Interest Fund, and, if
necessary, from the Local Improvement District No. 4 Reserve Fund
of the City, and not otherwise.
Both principal of and interest on this Bond are payable in
lawful money of the United States of America, to the registered
owner hereof, whose name and address shall appear on the
registration books of the City (the "Bond Register") maintained
by the City Treasurer (the "Bond Registrar"). Interest shall be
paid to the registered owner whose name appears on the Bond
Register as of the close of business on the fifteenth day of the
month preceding the interest payment date, and shall be paid by
check or draft of the Bond Registrar mailed to such registered
owner on the due date, at the address appearing on the Bond
Register, or such other address as may be furnished in writing by
Page 1 - EXHIBIT "A"
such registered owner to the Bond Registrar. Principal shall be
paid to the registered owner upon presentation and surrender of
this Bond at the office of the Bond Registrar, on or after the
date of maturity or prior redemption.
Section 50-1723, Idaho Code, reads as follows:
"LIABILITY OF MUNICIPALITY. The holder of any bond,
issued under the authority of this code, shall have no
claim therefor against the municipality by which the
same is issued, except to the extent of the funds
created and received by assessments against the
property within any local improvement district as
herein provided and to the extent of the local
improvement guarantee fund which may be established by
any such municipality under the provisions of this
code, but the municipality shall be held responsible
for the lawful levy of all special taxes or assessments
herein provided and for the faithful accounting of
settlements and payments of the special taxes and
assessments levied for the payment of the bonds as
herein provided. The owners and holders of such bonds
shall be entitled to complete enforcement of all
assessments made for the payment of such bonds. A copy
of this section shall be plainly written, printed or
engraved on the face of each bond so issued."
This Bond is one of a duly authorized issue of Bonds of like
date, interest rate, tenor, and effect, except for variations
required to state numbers, denominations, and maturities,
aggregating $343,806.35.
The City Council of the City, as the agent for Local
Improvement District No. 4, created by Ordinance No. 668, adopted
on July 28, 1994, has caused this Bond to be issued in the name
of the City as a Bond of said Local Improvement District, said
Bond, or the proceeds thereof, to be applied in payment of
certain public improvements described in the Bond Ordinance.
Payment of the principal of and interest on this Bond is to
be borne by owners of property within the above local improvement
district from special assessments levied upon all property
benefited by the improvements made therein. The registered owner
of this Bond shall look only to the Bond Fund and Interest Fund,
and, if necessary, to the Local Improvement District No. 4
Reserve Fund, created by the Bond Ordinance, for the payment of
either the principal of or the interest on this Bond. The
principal sum of this Bond shall be payable from the Bond Fund,
which is pledged solely for the payment of the principal of the
Bonds of the issue of which this is one and consisting of all
moneys constituting the payment of principal of assessments
unpaid at the time of the issuance of this Bond. Interest hereon
shall be payable from the Interest Fund, which is pledged for the
Page 2 - EXHIBIT "A"
payment of the interest on the Bonds of the issue of which this
is one, and consisting of all moneys constituting the payment of
interest on assessments unpaid at the time of the issuance of
this Bond. Both Funds have been created by the Bond Ordinance.
In the event said Bond Fund and Interest Fund shall be
insufficient to pay the Bonds and the interest thereon as they
become due, the deficiency shall be paid out of the City of
McCall Local Improvement District No. 4 Reserve Fund.
This Bond is issued pursuant to and in full compliance with
the Constitution and statutes of the State of Idaho, particularly
Title 50, Chapter 17, Idaho Code, and with the Bond Ordinance.
This Bond is transferable by the registered owner hereof or
his attorney duly authorized in writing at the office of the Bond
Registrar upon surrender of this Bond accompanied by a duly
executed instrument of transfer in the form attached hereto and
with guaranty of signature satisfactory to the Bond Registrar,
subject to such reasonable regulations as the Bond Registrar may
prescribe and upon payment of any tax, fee, or other governmental
charge incident to such transfer. Upon any such transfer, there
shall be issued in the name of the transferee a new fully regis-
tered Bond or Bonds of authorized denominations, of the same
maturity and interest rate, and for the same aggregate principal
amount as this Bond. The person in whose name this Bond is
registered shall be deemed the owner hereof for all purposes, and
neither the City nor the Bond Registrar shall be affected by any
notice to the contrary.
The City has reserved the right to redeem the Bonds on any
payment date whenever the City Treasurer has sufficient funds
available in the Bond Fund and Interest Fund, over and above the
amounts necessary to pay currently maturing installments of
principal and interest.
If fewer than all of the outstanding Bonds are to be
redeemed, Bonds to be redeemed are to be selected by the Bond
Registrar by lot, and shall, insofar as can be done taking into
consideration the denominations of the outstanding Bonds,
represent an equal amount of Bonds from each maturity outstanding
at the time of redemption. The decision of the Bond Registrar in
selecting the Bonds for retirement will be conclusive.
Portions of any Bond of a denomination of more than $1,000
may be redeemed. The Portion of any Bond of a denomination of
more than $1,000 to be redeemed shall be in the principal amount
of $1,000 or any integral multiple of $1,000, and in selecting
portions of such Bonds for redemption, the Bond Registrar will
treat each such Bond as representing that number of Bonds of
$1,000 denomination which is obtained by dividing the principal
amount of each Bond by $1,000.
Page 3 - EXHIBIT "A"
Notice of any intended redemption shall be given not less
than thirty (30) nor more than sixty (60) days prior to the
redemption date by first class mail, postage prepaid, to the
registered owner of any Bond to be redeemed at the address
appearing on the Bond Register. The requirements of the Bond
Ordinance shall be deemed to be complied with when notice is
mailed as herein provided, regardless of whether or not it is
actually received by the owner of any Bond. Interest on all of
such Bonds so called for redemption shall cease to accrue on the
date fixed for redemption unless such Bond or Bonds so called for
redemption are not redeemed upon presentation made pursuant to
such call.
The assessments authorized by the confirmed assessment roll
in Local Improvement District No. 4 are a lien upon the property
assessed and have been pledged to pay the principal of and
interest on the Bonds of this issue, pursuant to Chapter 17,
Title 50, Idaho Code, the Local Improvement District Code of
Idaho, and pursuant also to the ordinances and resolutions of the
City.
IT IS HEREBY CERTIFIED, RECITED, AND DECLARED that all acts
and things required by the Constitution and statutes of the State
of Idaho and the ordinances and resolutions of the City to exist,
to happen, and to be performed precedent to and in the issuance
of this Bond and the issue of which it forms a part, necessary to
constitute the same legal, binding, and valid special obligations
of Local Improvement District No. 4, in accordance with the tenor
and terms of said Bonds, have existed, have happened, and have
been performed in due time, form, and manner; and that the
aforesaid special assessments have been legally levied and that
this Bond and the other Bonds of this issue do not exceed the
amount of unpaid assessments.
IN WITNESS WHEREOF, the City of McCall, Valley County,
Idaho, acting through its City Council, has caused this Local
Improvement District No. 4 Bond to be signed by its Mayor,
countersigned by the City Treasurer, and attested by the City
Clerk, and the official seal of the City to be impressed hereon,
as of this 19th day of March, 1998.
CITY OF MCCALL
Valley County, Idaho
By
Mayor
Countersigned:
ATTEST:
City Clerk
[ S E A L ]
Page 4 - EXHIBIT "A"
Treasurer
The following abbreviations, when used in the inscription on
the face of this Bond, shall be construed as though they were
written out in full according to applicable laws or regulations:
TEN COM as tenants UNIF TRFS MIN ACT Custodian....
in common (Cust) (Minor)
TEN ENT as tenants under Uniform Transfer to Minors
by the entireties Act
(State)
JT TEN -- as joint tenants
with right of
survivorship and
not as tenants
in common
Additional abbreviations may also be used although not in
the above list.
Page 5 - EXHIBIT "A"
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sells, assigns
and transfers unto
Name of Transferee:
Address:
Tax Identification No.
the within Bond and hereby irrevocably constitutes and appoints
of
to transfer said Bond on the books kept for registration thereof
with full power of substitution in the premises.
Dated:
Registered Owner
NOTE: The signature on this
Assignment must correspond with the
name of the registered owner as it
appears upon the face of the within
Bond in every particular, without
alteration or enlargement or any
change whatever.
SIGNATURE GUARANTEED:
Bank, Trust Company or Member
Firm of the New York Stock
Exchange
Authorized Officer
Page 6 - EXHIBIT "A"
Publisher's Affidavit of Publication
STATE OF IDAHO
.SS
County of Valley
I, Leslie S. Freyer, being duly sworn and say, I am the receptionist of
The Central Idaho Star -News, a weekly newspaper published at McCall, in the
County of Valley, State of Idaho; that said newspaper is in general circulation
in the county of aforesaid and is a legal newspaper, that the LEGAL NOTICE, a
copy of which is enclosed hereto and is a part hereof, was published in said
newspaper once a week for one week in the regular and entire issue of every
number there of during the period of time of publication, and was published in
the newspaper proper and not in a supplement; and that publication of such
notice began March 19, 1998 and ended March 19, 1998.
Subscribed a e thh the March 19, 1998.
STATE OF HO
COUNTY OF VALLEY
On this 19th day of March, in the year of 1998, before me, a Notary
Public, personally appeared Leslie S. Freyer, known or identified to me to be
the person whose name subscribed to the within instrument, and being by me
first duly sworn, declared that the statements therein are true, and acknowl-
edged to me that she executed the same.
Tdm Grote
Notary Public for Idaho
Residing at McCall, Idaho
Commission Expires: 1999
r
wi
t.n iva utwuwy uwy aaut(riuou ui wuuug sup- .„01 Uus;Urdinance or, of the Bonds authorized
:stantially in the. form,set. forth, in.theforttl'oft hereby'; shall 'bebreught in any. court, by any.
t,;Bond referred.t 3:hereof:,Upogthe r;petsonfor any ensewhatsoeverafter theevi-
ltransfer of any; and there shall be issued m the , rahon;of thirty„(30) da, publication
':,
:name the:: transferee othransfereek:Vriewe of• thislprdinance,and.,after.such_"time the .1..
• 9fully,registered Bond of •the'same ddu enona validity;aegality and;,regularity of this Ordi; -
`tionm ,'•aturity; and`interest`gate:�aSitther��nanceandtheBondsauthorizedherebyshallbe. `
'' surrendered Bond.The neWpgong shall bearthe ijepnclustvelym 'presued4W;A :
same date as the date of the surrendered Bond' 0.:t Section 11; COVENANTS OF THE CITY •
but: Sliall. bear -interest • from' the; immediately ,P AJ Tlidgty further covenants and .agrees:
i;r'-E ra°,'ORDINANCE,N0.:721T�", .t preceding interest payment date towhichmter ifa ! r A..InaccordancewtthSection l49(a)ofthe •
ANORDINANCEOFTHECITY- UN g.est has been paid or duly provided for This,i, Internal.Revenue.Code of �1986 as"amended
C1L1 OF THE CITY: OF McCALL, IDAHO; section is intended to provide for a'system;of.;:: (the: "Code :),•the'Bonds9hall be• issued .and
AUTHORIZIN�SUANCE *AND; registration asprovidedbyTitle 57'Chapter9� irematn`in4iilly registered forin;i i order'that
'.Idaho Code- '• a ?interestthereenbeexeludedfrom SALE OF'LOCA�:�'IMPltOVEMENT;DIS , � d`- gross income
• TRICT,NO..4 BONDS; SPECIFYING -THE. ; " The Bond Registrar Shall not ,eregairedto,Y` ofthe"ownersOfthe:Bondsfor-federai,!neon*
•DATE,:FORM,.ITITEREST, RATE,. REGIS- exchange or transfer. any.•Bond within%fifteen `' .tax' purposes.'''.Ttie City covenants and agrees •
TRATION,f AND MATURITIES ' OF' THE (15) days of an interest payment date or; in the" that it will take no action to permit the Bonds to
BONDS; ESTABLISHING.A BOND FUND," case of any redemption ofBonds, within fifteen `'f,.'beissued'in;orc`onvertedte;beareeorcoupon,
. INTEREST FUND; AND RESERVE FUND; (15) days of the redemption date, i form:' ' r ' ' ' °
AUTHORIZING THESALE OFTHE BONDS Section 6: REDEMPTION: - , . S.'The' Bonds are hereby designated as -
AT PRIVATE SALE; PROVIDING COV- : • The City reserves the right to redeem any or •"qualified tax-exempt :obligations" within the
ENANTS; PROVIDING FOR 'RELATED all of the Bonds on any payment date whenever .•. meaning and • for • the purposes • of .; • Section
MATTERS; AND PROVIDING AN EFFEC- the City Treasurer , has sufficient funds avail,265(b)(3) of the,Code, and the City does not
• TIVE DATE able in the Bond'Fund and Interest Fund (as :. reasonably anticipate' that it will . designate
' . WHEREAS, the City Council (the "Conn-
ed") defined in Section 7 hereof) to pay the principal .more _than $10,000,000,1ncluding the Bonds; .
ed" of'the Cityof McCall, Valle County', . •of and accrued interest on one or more of the .' as qualified tax-exempt obligations during the
Bonds, over and above the amounts necessary •• .`calendaryear 1998: Idaho (he "City"), has heretoforeyby Ord- to a current) maturing installments of rin- •:" C, None Of the proceeds of the. Bonds will
; nance No. 720, adopted on January 22, 1998, pay y g P
a adopted;and confirmed dieassessment roll •in • . cipal and interest. ' > ei - ;, i; 4' used. directlyor indirectly (i) to ,make or.
the tgtal;amountof $567,530:78 and provided ; '' ' In the case_of redemplion'of fewer than all ; ;finance loans toyperspns or (li) m anyi trade er .
for the,issuance of local improvement district of the outstanding': Bonds,::Bonds••to ••be re ;business;carned,on , „any person .(otherthan
bondsi for I (cal' Improvement District No. 4, deemed shall be selected by the Bond Registrar : ;' use'asreinember.' of the'general: public)41 For
L I. '`"No." 4") to. a the costs • of water: by lot, and'shall; insofar1as can be done' taking ` purposes;of •the;preceding sentence;^:'the: term
(', '' pay into consideration the;denominations of: the'-::. " erson" does�not'include A' overnment unit
system and public street improvements, to- P g .
getherwith the expenses incident to the project outstanding bonds; represent equal amount other thanthe:U'nited;'States or any'agency or
or;to the issuance of bonds; and •of Bonds from each maturity outstanding at the.`;' • instruitentality':thereof;.and the. term "trade or
' •
I '.`WHEREAS;thesumof$223,724.43bfthe. time of redemption:'':TThe decision of the.Bond,'.'.' businesst:means.anMetivity,carried'on;by a
confirmed assessment roll for L.I.D. No.4 was• . > Registrar in selecting the Bonds, for retirement "'person other thana natural. "person. The City..
reaid ed assessment
credited Burin the thin shall be conclusive in.the absence; of fraud r + f ]•further. covenants and agrees to take no action.
prep day, ditd during
b law .•' ;,Portions of any Bond.of a denominatiogof if',which; would Oause41ie lends to be:•, private
f 0) day, p riod permitted
• '. more:than $1,000,rnay, be redeemed;•The por "activity`.bonds; `tYnerlwill it omit to.take any.
• ( y' -tion of any Bond' of. a denomination.ofmore :action+necessa +to reV Cthe,Boiids,frotm . (*interest, leaving unpaid assessments, includ- rY P p�
than $1,000:icKbe;,redeemed shall be anrthe becoming"'pnvateractivuy b"onds,l Wjth,n the:.
ing the amount.necessary for a reserve fund for :
the localiimproyeinent district bonds in,the. Principallamountcof,$1,000 ,ranysintegral,r mean'ngofSechon 14i1oftheC�olle,.,r r
amounfof•$343,806 5 and=;'7 y;r , [ ,r' multiple of$1,000,andinselecting portionsof i;,t 1D"I•Iie00114gener it4ifigpowefs The.
':" WHEREAS, the Council"desires to issue such Bonds for redemption, theBondRegistrar Bonds^arenot.�'pt vate'actiVity'bonds"within'
and sell bonds' of L.I.D: No.4`in the principal: • will treat each such Bond as representing that;, the'nieaningofSection. 141'oftheCode: 95%or;'
amount:of'$343,806.351;in order •to•pay the number ofBonds of$1,000denomination which • more (fthen bet proceedsoftheBonds are tobe
is obtained by dividing the principal amount of,..: ";used for the local governmental activities of the. remaining costs and expenses of the improve-
ments and to fund a debtservice reserve fund as .each Bond by$I,000:-• '<d.,. City: The City has no subordinate entities. The
additional security for the bonds; and • Notice of any intended redemption shall be . City has not issued,:and has no present expec-.
! WHEREAS; the City.is.authorized to sell
given not'less than. thirty (30) nor more, than •:. .•tation;of issuing,`tax-exempt; obligations in
localimprovementdistrictbondsatprivatesale. sixty,(60),days.priortothe redemption date by,'._:,calendar year :1998,.in a,face amount .which
• and has;.received :an offer, to•.purchase such . first class mail, postage prepaid, to the regis-, • } exceeds �$5,000,090.:Accordingly, under. Sec-
bonds,and the Council desires to sell the bonds_ tered owner of any Bond to be redeemed at the tion• 148' (f)(4)(D)of the Code, the City is not
in accordance with. such offer.,,;•' '[: "'•address appearing onthe•BondRegister:The't'):7equirec• ru+pay`rebatesto°the'UnitedStates
r�°NOW;'fEiEREFORE;BETTORDAINED'r'•�uirementsofthis Ordinance shall be deemed ituoderSection148(0.4,the Code. _• ;:+t
' "BYTHECITY COUNCILOFTHECITYOF'r'i to; be complied with •when notice is mailed as,14 I j,. E.fThe•Iylayor, City: Clerk; and .City Trea-
McCALL `IDAHO, as follows: s ri i • �' 1 ,yherein provided...regardless of whether not it surer, oeany one (£;such officials; as may be
i Sectiona:BONDSAUTHORI7ED• ' isactuallyreceivedbythe ownerofsuch•Bond tappropriate; are each hereby authorized and
F { Local7mprovement`District'No.4:Bonds�i :Interest -on all;oG"such;Bondstsacalledrforiniiirected:toexeeute;ombehalfofthe.City,such,:
'(thB• fBonds1J,in"the;•principal.amount:,of', fadedemption.shall;cease toEaccrue, op;,,the date �certificate,e,r,certificates.'as hall;be;necessaryii
- $343,806.35 are hereby authorized to be is- fixed for redemption unlessSuch BondorBonds °"' to establish that the Bonds are not i'arbitrage
sued,$old, anddelivered.TheBondsareissued so called forredemption are not redeemed upon • bonds" within the meaning of Section 148 of
_ in the principal amount of the assessable por= Presentation made pursuant to such call. the Code and the• Treasury Regulations' pro-,
tionofhecostofeffectin theabove described Section 7:,BOND ,FUND AND„INTER-,. •,mulgated thereunder; and to establish that
g EST FUND' ;;"•!'.: ,' i !: t:,.' •'':`:' '' ti'' i'' '' ':•, interest on the Bonds is not and will not become ^.localimprovements,includingthecontract mice •,.,The City,Treasurerlis'•herebyiauthorized ';includable in the rossincomeoftheownersof r. and{hecostandexpettsesofengirteering,leg• al, ,. and ;em Wered;iand,rt •shall:be ,his.dut , to.., the Bonds under he. Code and applicableregu;
& .1•and t ll:oth udmg the er 'costs, incidental
s said
a r the receive and collect for L:I.D.;No.',4 all assess r :: lations::The City,,covenants, and agrees'that no
E;; Bondsfpubhcations; interim financing, and the_ z ments levied on propertiwithin LLD: No 4 to use•wiII be'made of the'preeeeds of the Bonds; ,
Ursuant to.
t c onds " estabhshmgi a; feserve fundy;,for the ' maenttse thereofosta of ,- the interest rhereonh and any �Secuon l'48 of he Cotids'Of the d and'appl may,
ble egula
•
f.�tSection`2 DESCRIPTION OFBONDS•
Itf Penalties accrued,::'and,to;pay and disburse;tions; be, deetned.tobe;proceeds;ofthe •Bonds; 4
r. �'-'• ,Bonds•shall be dated March• • 19 ;1998 . ,.such payments to,the person.,or p• ersons law ;:which *could cause the Bonds to be"arbitrage i
t„shall beg' the_ag'gregate •
• pnneipal •,Amount •off`.:fullyentitledtoreceivethesame'ivaccordance `bonds-;within'the,ineanin•'gbf Section.l48 of ;
•a$343,• 8061r35;'fand shall _be issued;.sold and ;with.the laws:of theStatd`of:Idaho ,and all the Code:The'Cityfurthercovenantstocomply
lAlelivered,at pariplus.acerued.interest te:their ,, . . nces and resolutions Of the City.:' rt s ahroughouC''the'iterm•of the' Bonds' with the
date•ofd• • - ..ash• • • • er•: ••••�The•';31Allmoneysconstitutingpaymentofpnnct requirements:of.,Section`148or the Code and
Bends shall,be in denornmations,of $ I,000 er Pal of the.unpaid instailments;of assessments the regulations -promulgated thereunderin' or=
• any integral multiple thC�rfof?exceptiBonds;
for L1111No,4shall bedepositedmt(`aspecial jper!to,prevent'the flop dsI•frontbecoming
maturing on March iletit 99;:w.eic ma be s , fund; designated'"City) of;McCall Local Im arbitrage bonds l't' ?'. "f 1,1e i ;
.a.differe,nt denominationi:The Bonds shall be provement' District +'No ",4 •Bond Fund" (the :t=� F:The• Cary will comply;Wuh the:informa-'' 1
registered as'.to>boh. principal... -and interest, "Bond Fund"); which isihereby' created and tionh-epOrtmg require.ments;of Sectiot. 49.(e)
shallbenumberedseparatelyigthemannerand', shall be used and•applied for the• purpose of :•-'of.theCode ti -j4; lr r
• with' any additional designation aman Bond . paying the principal of the Bonds herein autho;', 'j G None of the proceeds of the Bonds will
• with'arardeemsnal dsagnatielbe••thear andrest, rized and for no other purpese whatsoever, 'and ' be used to reimburse the City forcapitalexpen
a able annually_on March al of each ear,•• . as security for such payment the Bond Fund is ditures made, prior to the date of delivery of the
rjgomrrtbgeintMsoh 19 19951'•from;theirdate'" tte[ebypledgedl t ; *ler,,9s >:}u;,;i::a r Bonds unless the.,City, not ,latec:hag60,days;•
ar_he:.fot►otv,pg 7ates of«interest =and shall •'NAll moneys eenstitoting:payment of rater ,,after the.,paymentlibf Such ;expenditure; shall.
mature; serial) `on March'19'in'the followm 1 '; est;on the unpaid:installments;of "assessments " hage,adopted ;;aq .official':'intent resolution'as
years `. and :Ythe :Ae.11ow,ing ::;amounts':' .fort.LD:No.45hallbedeposited.intoaspecial :' provided:by`Sectton'l 150 2 of the Treasury •
)vaturity Date"' Principal Amt, Interest Rate,. fund designated •t`City.'of McCall • Local Im Regulations :• q ' ''" ' '• '{'
.'! March 19, 1999::::$25;806.35:; 6.009b .:.•:• provement District•No:4.InterestFund'.! (the• .°'cSeetion • 12:,FURTHER AUTHORITY' • •
• '"ti+March'19 2000 ;'`• 28,000.00• ' 6.00 Interest Fund"),'Which is hereby created and • 4 +TheIvIayor,City Clerk; and:CityTreasurer,
t`(r•,March 19 20011i± !90,000.00 i 6.00. shall be •used and Applied for :the•,purpose of .or any,of,such'offtcers, as maybe appropriate
, P-t March,19,1002' ''' 31,000.00 OM" ° . paying the interest on'the Bonds herein 'autha . ;,te the circumstandes,-are'herebyauthorized'to
' `if:`March'19;2003r_r,33,000.00_<'6:00.++- rizedand for neotherpurposeWhatsoever, 'and execute:on:behalEofthe''Citysuch'reeeipts,:;
9• "'Mareli 19; 2004, 'i 35,000.00 `' '6.00 ' as security for such payment the Interest Fund .certifications, and.other .ocuments.as_may be •
` s: a"c March.19 2005 • '; 37,000.00 .6.00 ' is hereby pledged.', ' ' :'' .:'. necessary or appropriate to effect the tssuance
4i;:;March;19 2006 ' i 39,000.00 ' 6.00' : Both principal of and interest on the�Bonds �'�+ 'sale"and,deliVery.of the -•Bends '1 Writ :. i (+ ;
S: March 19,2007.' 41,000.00 ••6.00, are payable only,ggtof,Said.Bcind Fund•and Section'13:;EFFECTIVE•DATE.;.,ri
<<, March'19.2008 ':> 44,000.00+1`6.00 . iInterest Fund;.and, if necessary,. out of the ,'" k:This,,Ordinance shall take effect and beln
"l +.Both principal of and interest odthe Bonds '.kcal Improvement, District •No.;:4 Reserve force immediately upon its.passage and ap-
shall be fully paid within ten (10) years from Fund, hereinafter created; and not otherwise .'proval ta7 a •• . : ^• t}.
their date:: The Bonds shall be substantial] in'�' .; Moneys in the Bond' Fund. and Interest DATED•this 12th day of March, 1998 r
the. form as set forth in'Exhibit`•"A" attached Fund for L.I.D.No:4shall bedeposited insu' ch CITY OFMcCALL,VaIleyCounty,ldaho. '
hereto and by reference made a part hereof.;'_' .bank or banks as aredesignated as depositories ' ,' By Mayor;I(irk';Einier 5rATTEST: nines :
::, .to an - .. -... ;nfmall it mnnavc en.; tha r.,n„aft,. 04.......te- .L, v.....i.:--__.ne._: n,_ , L .,.,,•n C: ..:a .:.:. 1 .. .:.. .
" f o r m . T h e B o n d s s h a l l b e s i g n e d b y t h e M a y o r , ' " ' ` ' " ' ` ^ " 4 ; , ? ; u i ` 1
C o u n t e r s i g n e d b y t h e C i t y l r e a s u r e r , - a n d a t - " ; , f i " . A . F o r t h e p u r p o s e o f { u t t t i e r " ' s e c t F t i n g t h e . t e s t e d b y k t h e C i t y C I e r R , a n d t h e o f f i c i a l s e a l o f p a y m e n t o f t h e p r i n c i p a l o f a n d i n t e r e s t o n t h e
t h e _ C i t y , s h a l l - b d i m p r e s s e d . I t h e r e o n . S u c h " : o t t i e r f t i n d t p f t h e - :
` B o n d s , t h e r e i s h e r e b y ; c n t a t e d a s p e C i a l ; f u n d ,
B o n d s a c r e o u t s t t a n d i n g ' b e - ' e f f e c t i v e
r r r e s p e c t i v e o f t h e f a c t
, : : C i t s e p a r a t e
? n d o f L . I . D . N o 4 a r t f r o m a d e s i e r i t e d , t h e . T C i t y " t h a t a n y o f t h e ` p e r s o n s ` h o l d i n g s u c h o f f i c e s : : ; ; o f M c C a l l L o c a l I m p r o v e m e n t D i s t r i c t : N o : 4 '
m a y n o l o n g e r b e i n o f f i c e p r i o r t o t h e i s s u a n c e r R e s e r v e F u n d : ' ( t h e " R e s e r v e F u n d " ) ; ; w h i c h - o f a n y B o n d s h e r e i n a u t h o r i z e d : B o n d s b e a r i n g s h a l l b e m a i n t a i n e d b y : : t h e : C i t y . " T r e a s u r e r ; s o . c ' t h e s i g n a t u r e s o f s u e l f o f f i c e r s s h a l l ' b e v a l i d ' , ' ; ; l o n g a s a n y B o n d s r e m a i n o u t s t a n d i n g ; T h e r e w h e n d e l i v e r e 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 , : s h a l l b e ' t r a n s f e r r e d f r o m t h e p r o c e e d s o f t h e - .
: ' t h i s O r d i n a n c e . A n y B o n d m a y a l s o b e s i g n e d . ' ' , ; B o n d s ' t o t h e : . " R e s e r v e ' F u n d ' a s u m e q u a l t o ' ; '
; , . a n d . a t t e s t e d " o n b e h a l f " o f : t h e . C i t y ' b y s u c h . : $ 3 l ' , 2 5 5 . 1 2 ; w h i c h , s h i l l , b e r m a i n t a i n e d ! a s ' a ; ,
' p e r s o n s a s a t t h e a c t u a l s d a t e o f " e x e c u t i o n o f t r u s t ' f u n d f o r t h e b e n e f i t o f t h e , o w n e r s o f t h e . . .
' s u c h ' B o n d s h a l l b e t h e ' p r o p e r ` o f f i c e r s o f t h e " B o n d s ' a n d ' w h i c h ' ' , s h a l l b e ' u s e d . s o l e l y f o r t h e . . ( .
C i t y ; a l t h o u g h a t t h e o r i g i n a l d a t e o f " s u c h B o n d , p u r p o s e s s e t f o r t h : i n ' p a r a g r a p h . B . o f , t h i s . s e e r t
' S u c h p e r s o n s s h a l l n o t h a v e b e e n s u c h o f f i c e r s , t 1 O D I
" . t h e C i t : " ' . r . B . W h e n e v e r o n a n y , p r i n c i p a l a n d i n t e r e s t
) u , a " . , ,
' ' " " U n t i l t h e b o n d s a r e p r e p a r e d , t h e C i t y m a y , , : p a y m e n t d a t e ; t h e r e a r e i n s u f f i c i e n t m o n e y s , i n ' a i f d e e m e d n e c e s s a r y ' b y ; t h e M a y o r ; _ u t i l i z e , a ' , e i t h e r ; t h e B o n d F u n d o r . t h e " , I n t e r e s t F u n d t o ' ' t e m p o r a r y b o n d o r b o n d s w h i c h s h a l l b e t y p e - " m a k e t h e p a y m e n t s o f p r i n c i p a l o r i n t e r e s t t h e n _ w r i t n ; a n d w h i c h ' s h a l l , b e d e l i v e r e d t o ' t h e d u e ` t h e a m o u n t o f a n y s u c h d e f i e i e n c y s h a l l b e ,
. , p u r c h a s e r ' o f t h e B o n d s i n ' h e w ' O f f d e f i n i t i v e ' " w i t h d r a w n f r o m t h e R e s e r v e F u n d ` : a n d t r a n s - ; L
b o n d s ; s u b j e c t t o t h e s a m e p r o v i s i o n s , l i m i t a f e r r e d . t o t h e " B o n d F u n d , o r " I n t e r e s t F u n d , . . o r '
l i o n s ; , a n d ' c o n d i t i o n s ' a s . t h e B o n d s : T h e b o t h " s u c h - F u n d s , : i n t h e a m o u n t s . r e q u i r e d ,
" t e m p o r a r y b o n d s s h a l l b e d a t e d a s o f t h e d a t e o f t o g e t h e r w i t h o t h e r m o n e y s i n ' s u c h F u n d s ; t o ,
t h e B o n d s , s h a l l b e i n t h e a g g r e g a t e p r i n c i p a l m a k e t h e p a y m e n t s o f p r i n c i p a l a n d i n t e r e s t "
a m o u n t o f $ 3 4 3 , 8 0 6 . 3 5 , s h a l l b e n u m b e r e d T - t h e n d u e . T h e a m o u n t s s o w i t h d r a w n s h a l l b e
" I , " a n d : ' c o n s e c u t i v e l y , ' t h e r e a f t e r ; ' s h a l l b e r e s t o r e d t o t h e R e s e r v e F u n d f r o m p a y m e n t s o f f
s u b s t a n t i a l l y o f t h e t e n o r o f t h e B o n d s , b u t w i t h t h e d e l i n q u e n t a s s e s s m e n t s u n t i l t h e a m o u n t o f _ . .
; s u c h + o m i s s i o n s l m s e r t i o n s ; a n d ? v a r i a t i o n s a s t h e R e s e r v e R e q u i r e m e n t . h a s b e e n . , r e s t o r e d m a y t b e a p p r o p r i a t e c i t e m p o r a r y ' b o n d s ; a n d " W h e n e v e r t h e a m o u n t ' i n t h e R e s e r v e F u n d r s W
s h a l l b e m a n u a l l y S i g n e d b y t h e M a y o r , t h e C i t y ' . , ' i n s u f f i c i e n t ' t o } m e e t c l a i m s f o r p r i n c i p a l a n d " . i T r e a s u r e r ; a n d t h e C i t y : C l e r k ; ' a n d h a y e ' : y
i n t e r e s t a g a i n s 6 t h e , R e s e r y e F u n d ; a h e C o u n e i T t h e S e a l o f t h e ` C i t y i m p r e s s e d t h e r e o n ` . : : i ; , m a y : : " a p p r o p r i a t e , f u n d s f r o m o t h e r - l e g a l l y ' I
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