T4-84 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-