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HomeMy WebLinkAboutT4-84 4, t ORDINANCE NO. T-4-84 AN ORDINANCE providing for borrowing money and issuing bonds of the City of Elgin, Kane and Cook Counties, Illinois, to the amount of $1,925, 000 for paying the cost of constructing public improvements in the City, and providing for the levy and collection of a direct annual tax for the payment of the principal and in- terest of the bonds. * WHEREAS, the City of Elgin, Kane and Cook Counties, Illinois ( the "City" ) , has a population in excess of 25,000 as determined by the last official census, and accordingly pursuant to the provisions of the 1970 Constitution of the State of Illinois, and particularly Article VII, Section 6(a) thereof, the City is a home rule unit and as such may exercise any power or perform any function pertaining to its government and affairs , including, but not limited to, the power to tax and to incur debt; and WHEREAS, pursuant to the provisions of Sections 6(d) and 6(k) of said Article VII of said 1970 Constitution, the City has the power to incur debt payable from ad valorem tax receipts maturing within forty (40) years from the time it is incurred and without prior referendum approval; and WHEREAS, on the 23rd day of April, 1975, the City Council • of the City did adopt an ordinance determining the procedures to be followed in the borrowing of money for public purposes of the City and in evidence of such borrowing the issuing of full faith fik and credit bonds of the City without referendum approval, such ordinance being entitled: { At- ORDINANCE NO. G22-75 AN ORDINANCE establishing procedures to be followed by the City of Elgin, Kane and Cook Counties, Illinois, in issuing non-referendum general obligation bonds which ordinance was amended by Ordinance No. G14-80 adopted on January 28, 1980, by Ordinance No. 64-80 adopted on October 8, 1980 and by Ordinance No. G39-82 adopted on July 28, 1982 (Ordinance No. G22-75 as so amended being referred to hereinafter as the "Enabling Ordinance" ) ; and WHEREAS, it is deemed to be necessary, essential and in the best interests of the inhabitants of the City that the City construct street improvements and install traffic signals in the Northeastern part of the City and construct and acquire storm water improvements in the Otter Creek area to consist of necessary detention ponds and other storm water drainage facilities, all in accord with the plans and specifications therefor prepared by /IAi, ore✓ G!w?dirt is ILO W1&1 . and Of iy 04,111-..iaC'�w/� 0d0.4.4.144tfv and now on file in the office of the City Clerk and available for public inspection (the "Project" ), all at an estimated cost of 1, 4 Fero , which estimate includes the cost of constructing and acquiring such improvements , legal fees, engineering, administrative and other expenses incidental thereto; and WHEREAS, it is necessary that the Project be constructed in order to meet the needs of the inhabitants of the City, and it is necessary for that purpose that the sum of $1,925,000 be borrowed at this time and in evidence of such indebtedness full faith and credit bonds of the City (the "Bonds") be issued in the principal amount of $1,925,000 and that such indebtedness be -2- , I incurred without submitting the question of incurring such indebtedness to the electors of the City for their approval: NOW, THEREFORE, Be It Ordained by the City Council of the City of Elgin, Kane and Cook Counties, Illinois , as follows: Section 1 . Findings . That the City Council of the City hereby finds and determines that the borrowing of $1, 925,000 for the purpose of paying the cost of the Project is necessary for the welfare of the government and affairs of the City and that such borrowing is for a proper public purpose and is in the public interest . Section 2 . Authorization. That in order to raise the sum of $1, 925, 000 needed for the purpose of paying the cost of rthe Project, there be borrowed by, for and on behalf of the City the sum of $1, 925,000 and to evidence said loan the bonds of the City be issued. Each of the Bonds shall be designated "Corporate Purpose Bond, Series 1984," and become due serially on January 1 of each of the years, in the amounts and bear interest annually at the rates as follows : Year of Principal Rate of Maturity Amount Interest 1986 $ 75, 000 8. 00 % 1987 215, 000 8.25 % 1988 275, 000 8. 25 % 1989 375, 000 8. 40 % 1990 225, 000 8. 40 % 1991 250, 000 8.50 % 1992 100,000 8. 50 % 1993 100, 000 8.70 % 1994 150,000 8. 90 % 1995 160, 000 9. 00 % -3- The Bonds shall be dated October 1, 1984, and shall also bear the date of authentication, shall be in fully registered form, shall be in denominations of $5, 000 each and authorized integral multiples thereof (but no single Bond shall represent installments of principal maturing on more than one date) and shall be numbered 1 and upward. The Bonds shall bear interest from their date or from the most recent interest payment date to which interest has been paid or duly provided for, until the principal amount of the Bonds is paid, such interest (computed upon the basis of a 360-day year of twelve 30-day months) being payable on the first day of July , 1985 and semi-annually thereafter on each January 1 and July 1 . Interest on each Bond shall be paid by check or draft of American National Bank and Trust Company of Chicago, Chicago, Illinois ( the "Bond Registrar" ) , payable upon presentation in lawful money of the United States of America, to the person in whose name such Bond is registered at the close of business on the 15th day of the month next preceding the interest payment date. The principal of the Bonds shall be payable in lawful money of the United States of America upon presentation at the corporate trust office of the Bond Registrar in Chicago, Illinois . The Bonds shall be signed by the facsimile signatures of the Mayor and Clerk of the City, and shall have affixed thereto or imprinted thereon the seal of the City and in case any officer whose signature shall appear on any Bond shall cease to be such officer before the delivery of such Bond, such signature shall -4- nevertheless be valid and sufficient for all purposes, the same as rif such officer had remained in office until delivery. All Bonds shall have thereon a certificate of authen- tication substantially in the form hereinafter set forth duly executed by the Bond Registrar as authenticating agent of the City and showing the date of authentication. No Bond shall be valid or obligatory for any purpose or be entitled to any security or benefit under this ordinance unless and until such certificate of authentication shall have been duly executed by the Bond Registrar by manual signature, and such certificate of authentication upon any such Bond shall be conclusive evidence that such Bond has been authenticated and delivered under this ordinance. The certificate of authentication on any Bond shall rbe deemed to have been executed by the Bond Registrar if signed by an authorized officer of the Bond Registrar, but it shall not be necessary that the same officer sign the certificate of authenti- cation on all of the Bonds issued hereunder. Section 3 . Registration of Bonds; Persons Treated as Owners . The City shall cause books ( the "Bond Register" ) for the registration and for the transfer of the Bonds as provided in this ordinance to be kept at the corporate trust office of the Bond Registrar in Chicago, Illinois, which is hereby constituted and appointed the registrar of the City . The City is authorized to pre- pare, and the Bond Registrar shall keep custody of, multiple Bond blanks executed by the City for use in the transfer and exchange of Bonds. Upon surrender for transfer of any Bond at the corporate trust office of the Bond Registrar in Chicago, Illinois, duly en- -5- dorsed by, or accompanied by a written instrument or instruments of transfer in form satisfactory to the Bond Registrar and duly executed by, the registered owner or his attorney duly authorized in writing, the City shall execute and the Bond Registrar shall authenticate, date and deliver in the name of the transferee or transferees a new fully registered Bond or Bonds of the same maturity of authorized denominations, for a like aggregate principal amount. Any fully registered Bond or Bonds may be exchanged at said office of the Bond Registrar for a like aggregate principal amount of Bond or Bonds of the same maturity of other authorized denominations . The execution by the City of any fully registered Bond shall constitute full and due authorization of such Bond and r, the Bond Registrar shall thereby be authorized to authenticate, date and deliver such Bond, provided, however, the principal amount of outstanding Bonds of each maturity authenticated by the Bond Registrar shall not exceed the authorized principal amount of Bonds for such maturity less previous retirements. The Bond Registrar shall not be required to transfer or exchange any Bond during the period beginning on the sixteenth ( 16th) day of the month next preceding any interest payment date on such Bond to and including the day preceding such interest payment date. The person in whose name any Bond shall be registered shall be deemed and regarded as the absolute owner thereof for all purposes, and payment of the principal of or interest on any Bond shall be made only to or upon the order of the registered owner thereof or his legal representative . All such payments -6- t shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid. No service charge shall be made for any transfer or exchange of Bonds, but the City or the Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any transfer or exchange of Bonds . Section 4. Redemption. Bonds due on or after January 1, 1992 are redeemable prior to maturity at the option of the City, in whole or in part, on January 1, 1991 or on any interest payment date thereafter, and if less than all of the outstanding Bonds are to be redeemed, the Bonds to be called shall be called in the inverse order of their maturities and if less than all of a single maturity is so redeemed then by lot within a maturity in the manner hereinafter provided, the Bonds to be redeemed at par plus accrued interest to the date fixed for redemption and a premium of two percent (2%) of the principal amount of the Bonds so called for redemption. The Bonds shall be redeemed only in the principal amount of $5, 000 each and integral multiples thereof. In the event of the redemption of less than all the Bonds of like maturity the aggregate principal amount thereof to be redeemed shall be $5,000 or an integral multiple thereof and the Bond Registrar shall assign to each Bond of such maturity a distinctive number for each $5,000 principal amount of such Bond and shall select by lot from the numbers so assigned as many numbers as, allocating $5,000 to each number, shall equal the principal amount of such Bonds to -7- r be redeemed . The Bonds to be redeemed shall be the Bonds to which were assigned numbers so selected; provided that only so much of the principal amount of each Bond shall be redeemed as shall equal $5,000 for each number assigned to it and so selected . The City shall, at least forty-five (45) days prior to the redemption date (unless a shorter time period shall be satisfactory to the Bond Registrar) , notify the Bond Registrar of such redemption date and of the principal amount of Bonds to be redeemed. For purposes of any redemption of less than all of the outstanding Bonds of a single maturity, the particular Bonds or portions of Bonds to be redeemed shall be selected not more than sixty (60) days prior to the redemption date by the Bond Registrar. The Bond Registrar shall promptly notify the City in writing of the Bonds or portions of Bonds selected for redemption and, in the case of any Bond selected for partial redemption, the principal amount thereof to be redeemed . Unless waived by any holder of Bonds to be redeemed, notice of the call for any such redemption shall be given by the Bond Registrar on behalf of the City by mailing the redemption notice by registered or certified mail at least thirty (30) days and not more than sixty (60) days prior to the date fixed for redemption to the registered owner of the Bond or Bonds to be redeemed at the address shown on the Bond Register or at such other address as is furnished in writing by such registered owner to the Bond Registrar. r -8- All notices of redemption shall state: (I (1) the redemption date, ( (2 ) the redemption price, (3 ) if less than all outstanding Bonds are to be redeemed, the identification (and, in the case of partial redemp- tion, the respective principal amounts ) of the Bonds to be redeemed, (4 ) that on the redemption date the redemption price will become due and payable upon each such Bond or portion thereof called for redemption, and that interest thereon shall cease to accrue from and after said date, and (5 ) the place where such bonds are to be surrendered for payment of the redemption price, which place of payment shall be the principal corporate trust office of the Bond Registrar . Prior to any redemption date, the City shall deposit with the Bond Registrar an amount of money sufficient to pay the redemption price of all the Bonds or portions of Bonds which are to be redeemed on that date. Notice of redemption having been given as aforesaid, the Bonds or portions of Bonds so to be redeemed shall , on the redemption date, become due and payable at the redemption price therein specified , and from and after such date (unless the City shall default in the payment of the redemption price) such Bonds or portions of Bonds shall cease to bear interest. Upon surrender of such Bonds for redemption in accordance with said notice, such Bonds shall be paid by the Bond Registrar at the redemption price. Installments of interest due on or prior to the redemption date shall be payable as herein provided for payment of interest. Upon surrender for any partial redemption of any Bonds, there shall be prepared for the registered holder a new Bond or Bonds rof the same rate of interest and maturity in the amount of the unpaid principal. -9- If any Bond or portion of Bond called for redemption rshall not be so paid upon surrender thereof for redemption, the principal shall, until paid, bear interest from the redemption date at the rate borne by the Bond or portion of Bond so called for redemption. All Bonds which have been redeemed shall be cancelled and destroyed by the Bond Registrar and shall not be reissued. Section 5 . Form of Bond. The Bonds shall be prepared in compliance with the National Standard Specifications for Fully Registered Municipal Securities prepared by the American National Standards Institute and shall be in substantially the following form; provided, however, that if the text of the Bond is to be printed in its entirety on the front side of the Bond, then paragraph [2] and the legend, "See Reverse Side for Additional Provisions" , shall be omitted and paragraphs [6] through [10] shall be inserted immediately after paragraph [1]: -10- (Form of Bond - Front Side) REGISTERED REGISTERED NO. $ UNITED STATES OF AMERICA STATE OF ILLINOIS COUNTIES OF KANE AND COOK CITY OF ELGIN CORPORATE PURPOSE BOND, SERIES 1984 :See Reverse Side: :for Additional : :Provisions • Interest Maturity Dated Rate: % Date : January 1 , Date : October 1, 1984 CUSIP Registered Owner: Principal Amount: [1] KNOW ALL MEN BY THESE PRESENTS, that the City of Elgin, Kane and Cook Counties, Illinois ( the "City") , hereby acknow- ledges itself to owe and for value received promises to pay to the Registered Owner identified above, or registered assigns as hereinafter provided, on the Maturity Date identified above (unless redeemed earlier as hereinafter provided) , the Principal Amount identified above and to pay interest (computed on the basis of a 360-day year of twelve 30-day months ) on such Principal Amount from the date of this Bond or from the most recent interest rpayment date to which interest has been paid at the Interest Rate per annum set forth above on July 1, 1985 and semi-annually -11- thereafter on each January 1 and July 1 until said Principal rAmount is paid . The principal of this Bond is payable in lawful money of the United States of America at the corporate trust office of American National Bank and Trust Company of Chicago, in Chicago, Illinois, as bond registrar and paying agent ( the "Bond Registrar") . Payment of the installments of interest shall be made to the Registered Owner hereof as shown on the registration books of the City maintained by the Bond Registrar at the close of business on the 15th day of the month next preceding each interest payment date and shall be paid by check or draft of the Bond Registrar, payable upon presentation in lawful money of the United States of America, mailed to the address of such Registered Owner as it a :pears on such registration books or at such other (I address furnished in writing by such Registered Owner to the Bond Registrar. For the prompt payment of this Bond, both principal and interest at maturity, the full faith, credit and resources of the City are hereby irrevocably pledged . [2] Reference is hereby made to the further provisions of this Bond set forth on the reverse hereof and such further provisions shall for all purposes have the same effect as if set forth at this place. [3] It is hereby certified and recited that all acts, conditions and things required by the Constitution and laws of the State of Illinois, and including the procedures established by the City ordinance for the exercise of its home rule powers conferred by Section 6 of Article VII of said Constitution of the State of Illinois in issuing its full faith and credit bonds • -12- payable from ad valorem property tax receipts without prior referendum approval , to exist or to be done precedent to and in the issuance of this bond, have existed and have been properly done, happened and been performed in regular and due form and time as required by law; that the indebtedness of the City, how- soever evidenced and incurred , does not exceed any constitutional or statutory limitation, and that provision has been made for the collection of a direct annual tax, in addition to all other taxes, on all of the taxable property in the City sufficient to pay the interest hereon as the same falls due and also to pay and discharge the principal hereof at maturity . [14 ] This Bond shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been signed by the Bond Registrar. [5] IN WITNESS WHEREOF, the City of Elgin, Kane and Cook Counties, Illinois , by its City Council, has caused the City seal to be affixed hereto or imprinted hereon and this Bond to be signed by the duly authorized facsimile signatures of the Mayor and Clerk of the City, all as of the Dated Date identified above. (Facsimile Signature) Mayor (Facsimile Signature) City Clerk (SEAL) r -13- Date of Authentication: , CERTIFICATE Bond Registrar and Paying Agent: OF American National Bank and Trust AUTHENTICATION Company of Chicago This Bond is one of the Bonds described in the Bond Ordinance and is one of the Corporate Purpose Bonds, Series 1984 of the City of Elgin, Kane and Cook Counties, Illinois. American National Bank and Trust Company of Chicago as Bond Registrar By (Manual Signature) Authorized Officer [Form of Bond - Reverse Side] City of Elgin Kane and Cook Counties, Illinois Corporate Purpose Bond, Series 1984 [6] This Bond is one of a series of Bonds issued by the City for the purpose of paying the cost of acquiring and constructing public improvements in and for the City, pursuant to and in all respects in compliance with the provisions of an ordinance adopted by the City Council of the City establishing the procedures for issuing full faith and credit non-referendum bonds, and an ordinance authorizing the issuance of this Bond and the series of which it forms a part, duly published and now in full force and effect r ( the "Bond Ordinance") . -14- [7] This Bond is transferable by the registered holder hereof in person or by his attorney duly authorized in writing at the corporate trust office of the Bond Registrar in Chicago, Illinois , but only in the manner, subject to the limitations and upon payment of the charges provided in the Bond Ordinance, and upon surrender and cancellation of this Bond. Upon such transfer a new Bond or Bonds of authorized denominations of the same maturity and for the same aggregate principal amount will be issued to the transferee in exchange therefor. [8] Bonds maturing on or after January 1 , 1992 are redeemable prior to maturity at the option of the City, in whole or in part on January 1, 1991 or on any interest payment date thereafter, and if less than all of the outstanding Bonds are to be redeemed, the Bonds to be called shall be called in inverse order of their maturity and if less than all of a single maturity is so redeemed, then by lot within a maturity in the manner hereinafter provided, the Bonds to be redeemed at par plus accrued interest to the date fixed for redemption and premium of two percent (2%) of the principal amount of any Bond so called for redemption. Bonds shall be redeemed only in the principal amount of $5, 000 each and integral multiples thereof. In the event of the redemption of less than all of the Bonds of like maturity, the aggregate principal amount thereof to be redeemed shall be $5, 000 or an integral multiple thereof and the Bond Registrar shall assign to each Bond of such maturity a distinctive number for each $5, 000 principal amount of such Bond and shall select by lot from the numbers so assigned as many numbers as, allocating $5, 000 to each -15- number, shall equal the principal amount of such Bonds to be redeemed . The Bonds to be redeemed shall be the Bonds to which were assigned numbers so selected; provided that only so much of the principal amount of each Bond shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. Notice of any such redemption shall be sent by registered or certified mail not less than thirty ( 30) days nor more than sixty (60) days prior to the date fixed for redemption to the Registered Owner of each Bond to be redeemed at the address shown on the registration books of the City maintained by the Bond Registrar or at such other address as is furnished in writing by such Registered Owner to the Bond Registrar. When so called for redemption, this Bond will cease to bear interest on the specified redemption date, provided funds for redemption are on deposit at the place of payment at that time . [9] The Bonds are issued in fully registered form in the denomination of $5,000 each or authorized integral multiples thereof. This Bond may be exchanged at the corporate trust office of the Bond Registrar in Chicago, Illinois for a like aggregate principal amount of Bonds of the same maturity of other authorized denominations, upon the terms set forth in the Bond Ordinance. [10] The City and the Bond Registrar may deem and treat the registered holder hereof as the absolute owner hereof for the purpose of receiving payment of or on account of prin- cipal hereof and interest due hereon and for all other purposes and neither the City nor the Bond Registrar shall be affected by any notice to the contrary. -16- (ASSIGNMENT) FOR VALUE RECEIVED, the undersigned sells , assigns and transfers unto (Name and Address of Assignee) the within Bond and does hereby irrevocably constitute and appoint attorney to transfer the said Bond on the books kept for registra- tion thereof with full power of substitution in the premises . Dated : Signature guaranteed: NOTICE: The signature to this assignment must correspond with the name of the registered owner as it appears upon the face of the within Bond in every particular, without alteration or enlargement or any change whatever. rh Section 6 . Tax Levy. That for the purpose of providing funds required to pay the interest on the Bonds promptly when and as the same falls due and to pay and discharge the principal thereof at maturity, there be and there is hereby levied upon all the taxable property within the City a direct annual tax sufficient for that purpose, and that there be and there is hereby levied on all the taxable property in the City, in addition to all other taxes, the following direct annual tax, to-wit: For the Year A Tax Sufficient to Produce the Sum of 1984 $278, 781. 25 for interest and principal up to and including January 1, 1986 1985 $372, 025. 00 for interest and principal 1986 $414, 287. 50 for interest and principal 1987 $491, 600. 00 for interest and principal 1988 $310 ,100.00 for interest and principal 1989 $316, 200.00 for interest and principal 1990 $144, 950. 00 for interest and principal 1991 $136, 450. 00 for interest and principal 1992 $177, 750. 00 for interest and principal 1993 $174, 400. 00 for interest and principal -17- That interest or principal coming due at a time when there are insufficient funds on hand to pay the same be paid promptly when due from current funds on hand in advance of the collection of the taxes herein levied, and when said taxes shall have been collected, reimbursement shall be made to the said funds in the amounts thus advanced. The City covenants and agrees with the purchasers and the holders of the Bonds that so long as any of the Bonds remain outstanding, the City will take no action or fail to take any action which in any way would adversely affect the ability of the City to levy and collect the taxes herein levied. The City and its officers will comply with all present and future applicable laws in order to assure that such takes will be levied, extended and collected as provided herein. Section 7 . Filing of Ordinance. That forthwith as soon as this ordinance becomes effective, a copy hereof certified by the Clerk of the City, shall be filed with the County Clerks of Kane and Cook Counties, Illinois, and said County Clerks shall, in and for each of the years 1984 to 1993, inclusive, ascertain the rate per cent required to produce the aggregate tax hereinbefore provided to be levied in said years, and said County Clerks shall extend the same for collection on the tax books in connection with other taxes levied in said years, in and by the City for general corporate purposes of the City, and in said years such annual tax shall be levied and collected by the City in like manner as taxes for general corporate purposes for said years are levied and collected, and in addition to and in excess of all other taxes. -18- Section 8 . Sale of Bonds. That forthwith after this ordinance has become effective as provided by law, the Bonds shall be executed and delivered to the Treasurer of the City and be by him delivered to The First National Bank of Chicago, the purchaser thereof, upon receipt of the purchase price therefor, same to be the par value of the Bonds plus accrued interest to date of delivery, and a premium of $94. 00. That the contract for the sale of the Bonds heretofore entered into, be and is in all respects ratified, approved and confirmed, it being hereby found and determined that said contract is in the best interests of the City, and that no person holding an office of the City, either by election or appoint- ment, is in any manner interested, either directly or indirectly, in his own name or the name of any other person, association, trust or corporation, in said contract for the purchase of the Bonds. Section 9 . Project Fund; Bond Fund. From the amounts received upon the sale of the Bonds, principal proceeds in the amount of $1, 925, 000 shall be deposited into the "Project Fund" (the "Project Fund") , hereby created, and disbursements shall be made from the Project Fund only for the purposes for which the Bonds are being issued, as set forth in the preceding text , in- cluding expenses of issuance of the Bonds or otherwise incidental to the Bonds or the Project, and for which such principal proceeds are hereby appropriated. Accrued interest, and premium, if any, shall be and are hereby appropriated for the purpose of paying the interest due on the Bonds up to and including July 1, 1985 and, to that end, is hereby ordered deposited into the "Corporate Purpose -19- Bonds, Series 1984 Bond Fund" (the "Bond Fund"), which fund shall be the fund for the payment of principal of and interest on the Bonds. Taxes received for the payment of the Bonds shall be deposited into the Bond Fund and used solely and only for paying the Bonds. Interest received from deposits in the Bond Fund shall be retained in the Bond Fund for payment of the principal or interest on the Bonds on the interest payment date next after such interest is received. Section 10. Non-Arbitrage. The City Council hereby represents and certifies as follows with respect to the Bonds : (a) The City has heretofore incurred, or within six months after delivery of the Bonds expects to incur, substantial binding obligations with respect to the Project to be paid for with money received from the sale of the Bonds , said binding obligations comprising binding contracts for work on the Project in not less than the amount of $ Joe 000_ 07 , such sum being not less than 2-1/2% of that portion of the Project to be financed with proceeds of the Bonds . (b) Over $ /4700 Oft ~ of the money derived from the sale of t Bonds and deposited in the Project Fund will be expended on or before Steps 3e , 1944, for the purpose of paying the cost of the Project, said date being within three years following the date of issue of the Bonds . (c) All of the principal proceeds of the Bonds will be used, needed and expended for the purpose of paying the cost of the Project. (d) Work on the Project is expected to proceed with due diligence to completion. (e) No portion of the acquisitions or improve- ments constituting a part of the Project has been or is expected to be sold or otherwise disposed of in whole or in material part prior to the last maturity of the Bonds. "Material part" means (i ) land, or (ii) any improvement, or (iii) personal property or fixtures in excess of that which is expected to be sold, traded in or discarded upon wearing out or becoming obsolete. -20- (f) The City will receive par plus accrued interest and $ ' 4' ' premium from the sale of the Bonds . Accrued interest and premium are to be deposited in the Bond Fund to pay interest coming due on the Bonds up to and including July 1, 1985. (g) Except for the Bond Fund, the City has not created or established, and will not create or establish, any sinking fund, reserve fund or any other similar fund to provide for the payment of the Bonds . The Bond Fund has been established and will be funded in a manner primarily to achieve a proper matching of revenues and debt service, and will be depleted at least annually to an amount not in excess of one-twelfth the then current annual debt service on the Bonds . Money deposited in the Bond Fund will be spent within a 13-month period beginning on the date of deposit, and investment earnings in the Bond Fund will be spent within a one year period beginning on the date of receipt. ( h) The foregoing statements of expectation are based upon the following facts and estimates: (1 ) Amounts shown as to be received will be received pursuant to contract of sale. ( 2 ) Amounts paid or to be paid into various funds and accounts have been directed to be paid into said funds and accounts by authority hereof . (3 ) The anticipated dates of expenditure of money in the Project Fund derived from the sale of Bonds and the amount to be spent on or before such dates is based upon consultation with j 4, 'roe/ liA//04ev " '1&D tiny rt✓6•�ee4•4 -Mal, the architects/ engineers charged with responsible supervision of the Project. ( i ) To the best of the knowledge and belief of the City Council, there are no facts, estimates or circumstances that would materially change the conclusions and representations set out in this Section and the expectations hereinabove set out are reasonable. (j ) The City has not been notified of any listing or proposed listing of it by the Internal Revenue Service as a bond issuer whose arbitrage certifications may not be relied upon. -21- The City also certifies and further covenants with the purchasers and holders of the Bonds from time to time outstanding that so long as any of the Bonds remain outstanding, moneys on deposit in any fund or account in connection with the Bonds, whether or not such moneys were derived from the proceeds of the sale of the Bonds or from any other source, will not be used in a manner which will cause the Bonds to be "arbitrage bonds" within the meaning of Section 103(c) of the Internal Revenue Code of 1954, as amended (the "Code" ) , and any lawful regulations promulgated thereunder, including Treas . Reg. §§1 .103-13, 1 .103-14 and 1 .103-15 (1979) , as the same presently exist, or may from time to time hereafter be amended, supplemented or revised . The City reserves the right, however, to make any investment of such moneys permitted by state law, if, when and to the extent that said Section 103(c) or regulations promulgated thereunder shall be repealed or relaxed or shall be held void by final decision of a court of competent jurisdiction, but only if any investment made by virtue of such repeal, relaxation or decision would not, in the opinion of counsel of recognized competence in such matters, result in making the interest on the Bonds subject to federal income taxation. Section 11 . Registered Form. The City recognizes that Section 103(j ) of the Code requires the Bonds to be issued and to remain in fully registered form in order that interest thereon is exempt from federal income taxation under laws in force at the time the Bonds are delivered . In this connection, the City agrees that it will not take any action to permit the Bonds to be issued in, or converted into, bearer or coupon form. -22- . _ Section 12 . List of Bondholders . The Bond Registrar shall maintain a list of the names and addresses of the holders of all Bonds and upon any transfer shall add the name and address of the new Bondholder and eliminate the name and address of the transferor Bondholder. Section 13 . Duties of Bond Registrar. If requested by the Bond Registrar, the Mayor and Clerk of the City are authorized to execute the Bond Registrar' s standard form of agreement between the City and the Bond Registrar with respect to the obligations and duties of the Bond Registrar hereunder which may include the following: (a) to act as bond registrar, authenticating agent, paying agent and transfer agent as provided herein; (b) to maintain a list of Bondholders as set forth herein and to furnish such list to the City upon request, but otherwise to keep such list confidential; (c) to give notice of redemption of Bonds as provided herein; (d) to cancel and/or destroy Bonds which have been paid at maturity or upon earlier redemption or submitted for exchange or transfer; (e) to furnish the City at least annually a certificate with respect to Bonds cancelled and/or destroyed; and (f) to furnish the City at least annually an audit confirmation of Bonds paid, Bonds outstanding and payments made with respect to interest on the Bonds . Section 14 . Publication. That a full, true and complete copy of this ordinance be published within ten days after passage in .L i y Cd ut,,e . ,# 444 , being a newspaper published in and of general circulation within the City. -23- Section 15 . Repeal; Effective Date. That all ordinances, resolutions and orders, or parts thereof, in conflict herewith, are to the extent of such conflict, hereby repealed and this ordinance shall be in full force and effect upon its passage, approval and publication thereof as provided by law. Approved : s/ Richard L. Verbic Mayor, City of Elgin, Kane and Cook Counties, Illinois Adopted August 27 , , 1984 s/ Marie Yearman City Clerk, City of Elgin, Kane and Cook Counties, Illinois r -24-