S13-91 ORDINANCE NUMBER S13-91
AN ORDINANCE providing for the issuance of $5,920,000
General Obligation Refunding Bonds, Series 1991A, of
the City of Elgin, Kane and Cook Counties, Illinois,
and providing for the levy and collection of a direct
annual tax for the payment of the principal of and
interest on said 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 said Section 6 of
Article VII of the 1970 Constitution, the City has the power to
incur debt payable from ad valorem tax receipts maturing within
40 years from the time it is incurred and without prior refer-
endum 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 and credit bonds of the City without
referendum approval, such ordinance being entitled:
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 the City has heretofore issued the following
outstanding and validly subsisting and unpaid general obligation
corporate purpose bonds :
rh General Obligation Parking Bonds, Series 1980A
$2,600 ,000 Series 1980A Bonds , issued on November 20 ,
1980 ; bearing a dated date of November 1, 1980; of which
$1, 650 , 000 are still Outstanding due serially on January 1 of the
years and in the amounts and bearing interest at the rates
percent per annum as follows :
Year Amount ( $ ) Rate ( % )
1992 150 ,000 8 . 00
1993 150 , 000 8 . 00
1994 150 ,000 8 . 00
1995 150 ,000 8 . 00
1996 150 , 000 8 . 25
1997 150 ,000 8 . 25
1998 150 , 000 8 . 25
1999 200 , 000 8 .75
2000 200 , 000 8 .75
2001 200 , 000 9 . 00
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Series 1980A Bonds due on or after January 1 , 1994, are
redeemable on July 1, 1993 (or any interest payment date
thereafter ) at the redemption price of par plus a premium of 1/2
of 1% of the principal amount of each bond being redeemed for
each interest payment date subsequent to the date of redemption,
up to and including the maturity date of such bond ( such premium
not to exceed 3% of the principal amount of such bond) plus
accrued interest;
Corporate Purpose Bonds, Series 1984
$1, 925,000 Series 1984 Bonds , issued on October 1,
1984; bearing a dated date of October 1, 1984; of which $510,000
are still Outstanding due serially on January 1 of the years and
in the amounts and bearing interest at the rates percent per
annum as follows:
Year Amount ( $ ) Rate ( %)
1992 100,000 8 . 50
1993 100 ,000 8 .70
1994 150 ,000 8 .90
1995 160 , 000 9 . 00
Series 1984 Bonds due on or after January 1, 1992, are redeemable
on January 1, 1991 (or any interest payment date thereafter) at
the redemption price of par plus a premium of 2% of the principal
amount plus accrued interest ;
General Obligation Corporate Purpose Bonds, Series 1985
$4 , 300,000 Series 1985 Bonds, issued on December 16 ,
1985; bearing a dated date of December 1, 1985; of which
$4, 300 ,000 are still Outstanding due serially on January 1 of the
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years and in the amounts and bearing interest at the rates
percent per annum as follows :
Year Amount ( $ ) Rate ( % )
1992 50 , 000 9 . 50
1993 50 , 000 9 . 50
1994 75, 000 9 . 50
1995 100 , 000 9 . 50
1996 125 , 000 7 . 50
1997 150, 000 7 . 60
1998 200, 000 7 .70
1999 275,000 7 . 80
2000 350, 000 7 . 90
2001 450 ,000 8 . 00
2002 525,000 8 . 10
2003 600,000 8 . 20
2004 650,000 8 . 25
2005 700,000 8 . 30
Series 1985 Bonds due on or after January 1, 1996, are redeemable
on January 1, 1995 (or any interest payment date thereafter) at
the redemption price of par plus accrued interest; all of which
bear interest at higher rates than those currently available in
the bond markets, and may be advance refunded for net debt
service savings; and
WHEREAS pursuant to its home rule powers, the City is
authorized to issue general obligation bonds to accomplish such
refunding ( the "Refunding" ) and it is deemed necessary and desir-
able to provide for the issuance of not to exceed $5 ,920 , 000
principal amount general obligation bonds for such purpose and
also for expenses incidental to the Refunding;
NOW THEREFORE Be It Ordained by the City Council of the
City of Elgin, Kane and Cook Counties, Illinois, in the exercise
of its home rule powers, as follows :
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Section 1. Definitions
In addition to such other words and terms used and
defined in this ordinance, the following words and terms used in
this ordinance shall have the following meanings , unless , in
either case, the context or use clearly indicates another or dif-
ferent meaning is intended:
"Act" means the Illinois Municipal Code, as supple-
mented and amended, and the home rule powers of the City under
Section 6 of Article VII of the Illinois Constitution of 1970 .
In the event of conflict between the provisions of said code and
home rule powers, the home rule powers shall be deemed to super-
sede the provisions of said code.
"Bond" or "Bonds" means one or more, as applicable, of
the not to exceed $5, 920, 000 General Obligation Refunding Bonds,
Series 1991A, authorized to be issued by this Ordinance.
"Bond Register" means the books of the City kept by the
Bond Registrar to evidence the registration and transfer of the
Bonds.
"Bond Registrar" means American National Bank and Trust
Company of Chicago, Chicago, Illinois, a bank having trust
powers, or a successor thereto or a successor designated as bond
registrar hereunder .
"City" means the City of Elgin, Kane and Cook Counties,
Illinois .
"° "City Council" means the City Council of the City.
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"Code" means the Internal Revenue Code of 1986 .
"Debt Service Fund" means the Debt Service Fund estab-
lished and defined in Section 13 of this Ordinance.
"Ordinance" means this Ordinance, numbered S13-91 , and
passed by the City Council on the 14th day of August , 1991.
"Paying Agent" means American National Bank and Trust
Company of Chicago, Chicago, Illinois, a bank having trust
powers, or a successor thereto or a successor designated as pay-
ing agent hereunder .
"Pledged Taxes" means the taxes levied on the taxable
property within the corporate limits of the City to pay principal
of and interest on the Bonds as provided in Section 10 hereof.
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"Prior Bonds" means the bonds of the City described and
defined as such in the preambles hereto.
"Rebate Fund" means the Rebate Fund authorized to be
established and as defined in Section 13 of this Ordinance.
"Refunding" means the refunding of certain maturities
of the Prior Bonds from proceeds of the Bonds and such other
lawfully available funds of the City as necessary.
"Tax-exempt" means, with respect to the Bonds, the sta-
tus of interest paid and received thereon as not includible in
the gross income of the owners thereof under the Code for federal
income tax purposes except to the extent that such interest will
be taken into account in computing an adjustment used in deter-
mining the alternative minimum tax for certain corporations , in
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computing the environmental tax imposed on certain corporations
and in computing the "branch profits tax" imposed on certain for-
eign corporations.
Section 2. Incorporation of Preambles
The City Council hereby find that all of the recitals
contained in the preambles to this ordinance are true, correct
and complete and does incorporate them into this ordinance by
this reference.
Section 3 . Determination To Issue Bonds
It is necessary and in the best interests of the City
to provide for the Refunding to achieve net debt service savings,
to pay all related costs and expenses incidental thereto, and to
borrow money and issue the Bonds for such purposes. It is hereby
found and determined that such borrowing of money is for a proper
public purpose or purposes and is in the public interest, and is
authorized by Article VII , Section 6 of the Illinois Constitu-
tion.
Section 4. Bond Details
There shall be issued and sold the Bonds in the aggre-
gate principal amount of not to exceed $5 ,920,000 . The Bonds
shall each be designated "General Obligation Refunding Bond,
Series 1991A" ; be dated August 1, 1991 ( the "Dated Date" ) ; and
shall also bear the date of authentication thereof. The Bonds
shall be in fully registered form, shall be in denominations of
$5, 000 or integral multiples thereof (but no single Bond shall
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represent principal maturing on more than one date) , shall be
numbered consecutively in such fashion as shall be determined by
the Bond Registrar , and shall mature serially on January 1 of the
years and in the amounts and bearing interest at the rates
percent per annum as follows ( subject to the right of prior
redemption hereinafter stated) :
Year Amount ( $ ) Rate ( % ) Year Amount ( $ ) Rate ( % )
1992 90,000 5 . 00 1999 515, 000 6 . 15
1993 55, 000 5 . 30 2000 585, 000 6 . 25
1994 205, 000 5 . 50 2001 675 , 000 6 . 40
1995 365, 000 5 . 65 2002 540, 000 6 . 45
1996 200 , 000 5 . 85 2003 610, 000 6 . 50
1997 350,000 5 . 95 2004 650,000 6 . 55
1998 395, 000 6 .05 2005 685,000 6 . 60
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The Bonds shall bear interest from the later of their
Dated Date as herein provided or from the most recent interest
payment date to which interest has been paid or duly provided
for, until the principal amount of such Bond is paid or duly pro-
vided for , such interest (computed upon the basis of a 360-day
year of twelve 30-day months) being payable on January 1 and
July 1 of each year , commencing on January 1, 1992. Interest on
each Bond shall be paid by check or draft of the Paying Agent,
payable upon presentation thereof 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 and
redemption premium, if any, due on the Bonds shall be payable in
lawful money of the United States of America upon presentation
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thereof at the principal corporate trust office of the Paying
Agent in the City of Chicago, Illinois , or at successor Paying
Agent and locality.
Section 5. Execution; Authentication
The Bonds shall be executed on behalf of the City by
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the manual or duly authorized facsimile signature of its Mayor
and attested by the manual or duly authorized facsimile signature
of its City Clerk , as they may determine, and shall have
impressed or imprinted thereon the corporate seal or facsimile
thereof of the City. In case any such officer whose signature
shall appear on any Bond shall cease to be such officer before
the delivery of such Bond, such signature shall nevertheless be
valid and sufficient for all purposes , the same as if such offi-
cer had remained in office until delivery. All Bonds shall have
thereon a certificate of authentication, substantially in the
form hereinafter set forth, duly executed by the Bond Registrar
as authenticating agent of the City and showing the date of au-
thentication. 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 authen-
ticated and delivered under this ordinance. The certificate of
authentication on any Bond shall be deemed to have been executed
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by it if signed by an authorized officer of the Bond Registrar,
but it shall not be necessary that the same officer sign the cer-
tificate of authentication on all of the Bonds issued hereunder .
Section 6. Optional Redemption
The Bonds due on or after January 1 , 2002 , are subject
to redemption prior to maturity at the option of the City, from
any available funds, in whole or in part on any date on or after
January 1 , 2001, and if in part, in any order of maturity as
selected by the City, and if less than an entire maturity, in
integral multiples of $5 , 000 , selected by lot by the Bond
Registrar as hereinafter provided, at the redemption price of par
plus accrued interest to the date fixed for redemption.
Section 7. Redemption Procedure
The City shall, at least 45 days prior to the redemp-
tion 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 of each maturity to be
redeemed. For purposes of any redemption of less than all of the
Bonds of a single maturity, the particular Bonds or portions of
Bonds to be redeemed shall be selected by lot not more than 60
days prior to the redemption date by the Bond Registrar for the
Bonds of such maturity by such method of lottery as the Bond
Registrar shall deem fair and appropriate; provided, that such
lottery shall provide for the selection for redemption of Bonds
or portions thereof so that any $5, 000 Bond or $5,000 portion of
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a Bond shall be as likely to be called for redemption as any
other such $5,000 Bond or $5 , 000 portion.
The Bond Registrar shall promptly notify the City and
the Paying Agent 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 the registered owner of Bonds to be
redeemed, official notice of any such redemption shall be given
by the Bond Registrar on behalf of the City by mailing the
redemption notice by first class mail not less than 30 days and
not more than 60 days prior to the date fixed for redemption to
each 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 Regis-
trar .
All official notices of redemption shall include the
name of the Bonds and at least the information as follows :
(a) the redemption date;
(b) the redemption price, including premium ( if any) ;
(c) if less than all of the outstanding Bonds of a parti-
cular maturity are to be redeemed, the identification (and, in
the case of partial redemption of Bonds within such maturity, the
respective principal amounts) of the Bonds to be redeemed;
(d) a statement that on the redemption date the redemption
eft price will become due and payable upon each such Bond or portion
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thereof called for redemption and that interest thereon shall
cease to accrue from and after said date; and
(e) 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 Paying Agent .
Prior to any redemption date, the City shall deposit
with the Paying Agent 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.
Official 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 inter-
est. Neither the failure to mail such redemption notice, nor any
defect in any notice so mailed, to any particular registered
owner of a Bond, shall affect the sufficiency of such notice with
respect to other registered owners. Notice having been properly
given, failure of a registered owner of a Bond to receive such
notice shall not be deemed to invalidate, limit or delay the
effect of the notice or redemption action described in the
notice. Such notice may be waived in writing by a registered
owner of a Bond entitled to receive such notice, either before or
after the event, and such waiver shall be the equivalent of such
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notice. Waivers of notice by registered owners shall be filed
with the Bond Registrar , but such filing shall not be a condition
precedent to the validity of any action taken in reliance upon
such waiver .
Upon surrender of such Bonds for redemption in accor-
dance with said notice, such Bonds shall be paid by the Paying
Agent at the redemption price. The procedure for the payment of
interest due as part of the redemption price shall be as herein
provided for payment of interest otherwise due. Upon surrender
for any partial redemption of any Bond, there shall be prepared
for the registered owner a new Bond or Bonds of like tenor , of
authorized denominations, of the same maturity, and bearing the
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same rate of interest in the amount of the unpaid principal .
If any Bond or portion of Bond called for redemption
shall not be so paid upon surrender thereof for redemption, the
principal shall , until paid or duly provided for , 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.
Upon the payment of the redemption price of Bonds being
redeemed, each check or other transfer of funds issued for such
purpose shall bear the CUSIP number identifying, by issue and
maturity, the Bonds being redeemed with the proceeds of such
check or other transfer .
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As part of their respective duties hereunder , the Bond
Registrar and Paying Agent shall prepare and forward to the City
a statement as to notice given with respect to each redemption
together with copies of the notices as mailed.
Section 8. Registration of Bonds; Persons Treated as
Owners
A. General . 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 principal
corporate trust office of the Bond Registrar in the City of
Chicago, Illinois, which is hereby constituted and appointed the
registrar of the City for the Bonds. The City is authorized to
prepare, and the Bond Registrar or such other agent as the City
may designate shall keep custody of, multiple Bond blanks
executed by the City for use in the transfer and exchange of
Bonds.
Any Bond may be transferred or exchanged, but only in
the manner , subject to the limitations, and upon payment of the
charges as set forth in this ordinance. Upon surrender for
transfer or exchange of any Bond at the principal corporate trust
office of the Bond Registrar , duly endorsed by or accompanied by
a written instrument or instruments of transfer or exchange in
form satisfactory to the Bond Registrar and duly executed by the
registered owner or an attorney for such owner duly authorized in
writing, the City shall execute and the Bond Registrar shall
authenticate, date and deliver in the name of the transferee or
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transferees or, in the case of an exchange, the registered owner,
a new fully registered Bond or Bonds of like tenor , of the same
maturity, bearing the same interest rate, of authorized denomina-
tions, for a like aggregate principal amount .
The Bond Registrar shall not be required to transfer or
exchange any Bond during the period from the close of business on
the 15th day of the calendar month preceding an interest payment
date on the Bonds to the opening of business on such interest
payment date or during the period of 15 days preceding the giving
of notice of redemption of Bonds or to transfer or exchange any
Bond all or a portion of which has been called for redemption.
The execution by the City of any fully registered Bond
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shall constitute full and due authorization of such Bond, and the
Bond Registrar shall thereby be authorized to authenticate, date
and deliver such Bond; provided, however , the principal amount of
Bonds of each maturity authenticated by the Bond Registrar shall
not at any one time exceed the authorized principal amount of
Bonds for such maturity less the amount of such Bonds which have
been paid.
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
shall be valid and effectual to satisfy and discharge the lia-
bility upon such Bond to the extent of the sum or sums so paid.
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No service charge shall be made to any registered owner
of Bonds 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 .
B. Global Book-Entry System. The Bonds shall be
initially issued in the form of a separate single fully
registered Bond for each of the maturities of the Bonds
determined as described in Section 4 hereof . Upon initial
issuance, the ownership of each such Bond shall be registered in
the Bond Register in the name of Kray & Co. , or any successor
thereto, as nominee of the Midwest Securities Trust Company,
Chicago, Illinois, and its successors and assigns ( "MSTC" ) . All
of the outstanding Bonds shall be registered in the Bond Register
in the name of Kray & Co. , as nominee of MSTC, except as
hereinafter provided. The Mayor , City Clerk and City Treasurer
are each authorized to execute and deliver on behalf of the City
such letters to or agreements with MSTC and the Bond Registrar as
shall be necessary to effectuate such book-entry system (any such
letter or agreement being referred to herein as the
"Representation Letter" ) , which Representation Letter may provide
for the payment of principal of or interest on the Bonds by wire
transfer .
With respect to Bonds registered in the Bond Register
in the name of Kray & Co. , as nominee of MSTC, the City and the
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Bond Registrar shall have no responsibility or obligation to any
broker-dealer , bank or other financial institution for which MSTC
holds Bonds from time to time as securities depository (each such
broker-dealer , bank or other financial institution being referred
to herein as a "MSTC Participant" ) or to any person on behalf of
whom such a MSTC Participant holds an interest in the Bonds .
Without limiting the immediately preceding sentence, the City and
the Bond Registrar shall have no responsibility or obligation
with respect to ( i ) the accuracy of the records of MSTC, Kray &
Co. or any MSTC Participant with respect to any ownership
interest in the Bonds, ( ii ) the delivery to any MSTC Participant
or any other person, other than a registered owner of a Bond as
shown in the Bond Register , of any notice with respect to the
Bonds, including any notice of redemption, or ( iii ) the payment
to any MSTC Participant or any other person, other than a
registered owner of a Bond as shown in the Bond Register , of any
amount with respect to the principal of or interest on the
Bonds. The City and the Bond Registrar may treat and consider
the person in whose name each Bond is registered in the Bond
Register as the holder and absolute owner of such Bond for the
purpose of payment of principal and interest with respect to such
Bond, for the purpose of giving notices of redemption and other
matters with respect to such Bond, for the purpose of registering
transfers with respect to such Bond, and for all other purposes
whatsoever . The Bond Registrar shall pay all principal of and
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interest on the Bonds only to or upon the order of the respective
registered owners of the Bonds , as shown in the Bond Register, or
their respective attorneys duly authorized in writing, and all
such payments shall be valid and effective to fully satisfy and
discharge the City ' s obligations with respect to payment of the
principal of and interest on the Bonds to the extent of the sum
or sums so paid. No person other than a registered owner of a
Bond as shown in the Bond Register shall receive a Bond certifi-
cate evidencing the obligation of the City to make payments of
principal and interest with respect to any Bond. Upon delivery
by MSTC to the Bond Registrar of written notice to the effect
that MSTC has determined to substitute a new nominee in place of
Kray & Co. , and subject to the provisions of this Section 8 with
respect to the payment of interest to the registered owners of
Bonds at the close of business on the 15th day of the month next
preceding the applicable interest payment date, the name "Kray &
Co. " in this Ordinance shall refer to such new nominee of MSTC.
In the event that ( i ) the City determines that MSTC is
incapable of discharging its responsibilities described herein
and in the Representation Letter , ( ii) the agreement among the
City, the Bond Registrar and MSTC evidenced by the Representation
Letter shall be terminated for any reason or ( iii) the City
determines that it is in the best interests of the beneficial
owners of the Bonds that they be able to obtain certificated
(." Bonds, the City shall notify MSTC and MSTC Participants of the
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availability through MSTC of Bond certificates and the Bonds
shall no longer be restricted to being registered in the Bond
Register in the name of Kray & Co. , as nominee of MSTC. At that
time, the City may determine that the Bonds shall be registered
in the name of and deposited with such other depository operating
a universal book-entry system, as may be acceptable to the City,
or such depository' s agent or designee, and if the City does not
select such alternate universal book-entry system, then the Bonds
may be registered in whatever name or names the registered owners
of Bonds transferring or exchanging Bonds shall designate, in
accordance with the provisions of Section 6 hereof .
Notwithstanding any other provision of this Ordinance
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to the contrary, so long as any Bond is registered in the name of
Kray & Co. , as nominee of MSTC, all payments with respect to
principal of and interest on such Bond and all notices with
respect to such Bond shall be made and given, respectively, in
the manner provided in the Representation Letter .
Section 9. Form of Bond
The Bonds shall be in substantially the form herein-
after set forth; provided, however , that if the text of the Bond
is to be printed in its entirety on the front side of the Bond,
then the second paragraph of the front side of the Bond and the
legend "See Reverse Side for Additional Provisions" shall be
omitted and paragraphs on the reverse side of the Bond shall be
inserted immediately after the first paragraph on the front side.
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•
[Form of Bond - Front Side]
REGISTERED REGISTERED
NO. $
UNITED STATES OF AMERICA
STATE OF ILLINOIS
COUNTIES OF KANE AND COOK
CITY OF ELGIN
GENERAL OBLIGATION REFUNDING BOND
SERIES 1991A
See Reverse Side for
0. Additional Provisions.
Interest Maturity Dated
Rate: Date: Date: August 1, 1991 CUSIP_
Registered Owner :
Principal Amount Dollars
KNOW ALL PERSONS BY THESE PRESENTS that the City of
Elgin, Kane and Cook Counties, Illinois , a municipality, home
rule unit and political subdivision of the State of Illinois ( the
"City" ) , hereby acknowledges 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 ( subject to right of prior redemption as
000111k hereinafter stated) , the Principal Amount identified above and to
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pay interest (computed on the basis of a 360-day year of twelve
30-day months) on such Principal Amount from the later of the
Dated Date of this Bond identified above or from the most recent
interest payment date to which interest has been paid or duly
provided for , at the Interest Rate per annum identified above,
such interest to be payable on January 1 and July 1 of each year,
commencing January 1, 1992 , until the Principal Amount is paid or
duly provided for . The principal of and redemption premium, if
any, due on this Bond are payable in lawful money of the United
States of America upon presentation hereof at the principal
corporate trust office of American National Bank and Trust
Company of Chicago, in the City of Chicago, Illinois, as paying
agent ( the "Paying Agent" ) . Payment of interest shall be made to
the Registered Owner hereof as shown on the registration books of
the City maintained by American National Bank and Trust Company
of Chicago, in the City of Chicago, Illinois , as bond registrar
( the "Bond Registrar" ) , at the close of business on the 15th day
of the month next preceding the interest payment date and shall
be paid by check or draft of the Paying Agent , payable upon pre-
sentation in lawful money of the United States of America, mailed
to the address of such Registered Owner as it appears on such
registration books or at such other address furnished in writing
by such Registered Owner to the Bond Registrar .
Reference is hereby made to the further provisions of
this Bond set forth on the reverse hereof , and such further pro-
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visions shall for all purposes have the same effect as if set
forth at this place.
It is hereby certified and recited that all conditions,
acts and things required by the Constitution and Laws of the
State of Illinois 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, represented
by the Bonds , and including all other indebtedness of the City,
howsoever evidenced or incurred, does not exceed any constitu-
tional or statutory or other lawful limitation; and that provi-
rsion 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.
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 .
IN WITNESS WHEREOF the City of Elgin, Kane and Cook
Counties, Illinois , by its City Council, has caused this Bond to
be executed by the manual or duly authorized facsimile signature
of its Mayor and attested by the manual or duly authorized fac-
simile signature of its City Clerk and its corporate seal or a
r
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facsimile thereof to be impressed or reproduced hereon, all as
appearing hereon and as of the Dated Date identified above.
Mayor , City of Elgin
Kane and Cook Counties ,
Illinois
Attest :
City Clerk, City of Elgin
Kane and Cook Counties , Illinois
(SEAL)
Date of Authentication:
CERTIFICATE OF AUTHENTICATION
elk This Bond is one of the Bonds Bond Registrar and
described in the within mentioned Paying Agent:
Ordinance and is one of the General
Obligation Refunding Bonds , Series American National Bank
1991A, having a Dated Date of and Trust Company of
August 1, 1991, of the City of Chicago,
Elgin, Kane and Cook Counties, Chicago, Illinois
Illinois .
American National Bank and
Trust Company of Chicago
as Bond Registrar
By
Authorized Officer
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[Form of Bond - Reverse Side]
City of Elgin, Kane and Cook Counties, Illinois
General Obligation Refunding Bond, Series 1991A
This bond is one of a series of bonds ( the "Bonds" ) in
the aggregate principal amount of $5 , 920,000 issued by the City
for the purpose of a refunding of certain prior bonds, and of
paying expenses incidental thereto, all as described and defined
in the ordinance authorizing the Bonds ( the "Ordinance" ) , pur-
suant to and in all respects in compliance with the applicable
provisions of the Illinois Municipal Code, as supplemented and
amended, and as further supplemented and, where necessary, super-
seded, by the powers of the City as a home rule unit under the
provisions of Section 6 of Article VII of the Illinois Constitu-
tion of 1970 (such code and powers being the "Act" ) , with the
procedural ordinances of the City adopted in the exercise of its
home rule powers in issuing bonds without referendum and with the
Ordinance, which has been duly passed by the City Council, and
published, in all respects as by law required.
This Bond may be transferred or exchanged, but only in
the manner, subject to the limitations, and upon payment of the
charges as set forth in the Ordinance. Upon surrender for trans-
fer or exchange of this Bond at the principal corporate trust
office of the Bond Registrar in the City of Chicago, Illinois,
duly endorsed by or accompanied by a written instrument or
instruments of transfer or exchange in form satisfactory to the
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Bond Registrar and duly executed by the Registered Owner or an
attorney for such owner 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 or , in the
case of an exchange, the Registered Owner , a new fully registered
Bond or Bonds of like tenor , of the same maturity, bearing the
same interest rate, of authorized denominations, for a like
aggregate principal amount.
The Bond Registrar shall not be required to transfer or
exchange any Bond during the period from the close of business on
the 15th day of the calendar month preceding an interest payment
date on the Bonds to the opening of business on such interest
payment date or during the period of 15 days preceding the giving
of notice of redemption of Bonds or to transfer or exchange any
Bond all or a portion of which has been called for redemption.
The Bonds due on or after January 1, 2002, are subject
to redemption prior to maturity, at the option of the City, from
any available funds , in whole or in part on any date on or after
January 1, 2001 , and if in part, in any order of maturity as
selected by the City, and if less than an entire maturity, in
integral multiples of $5 , 000 , selected by lot by the Bond
Registrar , at the redemption price of par plus accrued interest
to the date of redemption.
Unless waived by the Registered Owner of Bonds to be
redeemed, notice of any such redemption shall be given by the
Bond Registrar on behalf of the City by mailing the redemption
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notice by first class mail not less than 30 days and not more
than 60 days prior to the date fixed for redemption to each
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 Regis-
trar . Neither the failure to mail such redemption notice, nor
any defect in any notice so mailed, to any particular Registered
Owner of a Bond, shall affect the sufficiency of such notice with
respect to other Registered Owners . Notice having been properly
given, failure of a Registered Owner of a Bond to receive such
notice shall not be deemed to invalidate, limit or delay the
effect of the notice or redemption action described in the
notice. Such notice may be waived in writing by a Registered
Owner of a Bond entitled to receive such notice, either before or
after the event, and such waiver shall be the equivalent of such
notice.
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 surren-
der of such Bonds for redemption in accordance with said notice,
such Bonds shall be paid by the Bond Registrar at the redemption
price. The procedure for the payment of interest due as part of
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the redemption price shall be as herein provided for payment of
interest otherwise due. Upon surrender for any partial redemp-
tion of any Bond, there shall be prepared for the Registered
Owner a new Bond or Bonds of like tenor , of authorized denomina-
tions, of the same maturity, and bearing the same rate of inter-
est in the amount of the unpaid principal .
The City, the Bond Registrar and the Paying Agent may
deem and treat the Registered Owner hereof as the absolute owner
hereof for the purpose of receiving payment of or on account of
principal hereof and interest due hereon and for all other pur-
poses, and the City, the Bond Registrar and the Paying Agent
shall not be affected by any notice to the contrary.
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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
as attorney to transfer the said Bond on the books kept for regis-
tration 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 .
Section 10. Tax Levy
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
is hereby levied upon all of the taxable property within the
City, in the years for which any of the Bonds are outstanding, a
direct annual tax sufficient for that purpose; and there is here-
by levied on all of the taxable property in the City, in addition
to all other taxes, the following direct annual taxes ( the
Pledged Taxes) , to wit :
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For the Year A Tax Sufficient to Produce the Sum of :
1991 $663 ,866 . 25 for principal and interest up
to and including January 1,
1993
1992 $567 ,020 .00 for principal and interest
1993 $715 ,745 .00 for principal and interest
1994 $530 ,122 . 50 for principal and interest
1995 $668, 422 . 50 for principal and interest
1996 $692 , 597 . 50 for principal and interest
1997 $788 ,700 . 00 for principal and interest
1998 $827 ,027 . 50 for principal and interest
1999 $880 ,465 . 00 for principal and interest
2000 $702 , 265 . 00 for principal and interest
2001 $737 ,435 .00 for principal and interest
2002 $737 ,785 .00 for principal and interest
2003 $730 , 210 . 00 for principal and interest
Interest or principal coming due at any time when there
are insufficient funds on hand from the Pledged Taxes to pay the
same shall be paid promptly when due from current funds on hand
in advance of the collection of the Pledged Taxes herein levied;
and when the Pledged Taxes shall have been collected, reimburse-
ment shall be made to said funds in the amount so advanced.
Whenever other funds from any lawful source are made
available for the purpose of paying any principal of or interest
on the Bonds so as to enable the abatement of the taxes levied
herein for the payment of same, the City Council shall, by proper
proceedings, direct the deposit of such funds into the Debt
Service Fund and further shall direct the abatement of the taxes
by the amount so deposited. A certified copy or other
notification of any such proceedings abating taxes may then be
filed with the County Clerks of The Counties of Kane and Cook,
Illinois, in a timely manner to effect such abatement .
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The City covenants and agrees with the purchasers and
registered owners 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 foregoing tax levy. The City
and its officers will comply with all present and future appli-
cable laws in order to assure that the Pledged Taxes may be
levied, extended and collected as provided herein and deposited
into the Bond Fund.
Section 11. Filing with County Clerks
Promptly, as soon as this ordinance becomes effective,
a copy hereof, certified by the City Clerk of the City, shall be
filed with the County Clerks of The Counties of Kane and Cook ,
Illinois ; and each of said County Clerks shall in and for each of
the years 1991 to 2003, inclusive, ascertain the rate percent
required to produce the aggregate tax hereinbefore provided to be
levied in each of said years; and each of said County Clerks
shall ( to the extent said tax has not been abated as provided
herein) extend the same for collection on the tax books in con-
nection with any other taxes that may be 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
and for and on behalf of the City in like manner as provided by
law for the levy and collection of taxes for general corporate
purposes for said years , without limit as to either rate or
amount, and in addition to and in excess of all other taxes .
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Section 12. Sale of Bonds
The Bonds shall be executed as in this Ordinance pro-
vided as soon after the passage hereof as may be, shall be de-
posited with the City Treasurer , and shall be by the Treasurer
delivered to the purchaser thereof, namely, First Chicago Capital
Markets, Inc. , Chicago, Illinois , upon payment of the purchase
price agreed upon, the same being $5,884,620 . 10 plus accrued
interest to date of delivery. The contract for the sale of the
Bonds to the purchaser is hereby in all respects ratified, ap-
proved and confirmed, it being hereby declared that no person
holding any 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 such contract .
Section 13. Creation of Funds and Appropriations
Bond proceeds and other funds of the City as noted are
hereby appropriated as follows:
A. Accrued interest and premium, if any, on the Bonds
shall be and is hereby appropriated for the purpose of paying the
first interest due on the Bonds and to such end is hereby ordered
to be deposited into the "General Obligation Refunding Bonds,
Series 1991A, Debt Service Fund" ( the "Debt Service Fund" ) ,
hereby created, which shall be the fund for the payment of
principal of and interest on the Bonds .
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B. The Pledged Taxes shall either be deposited into
the Debt Service Fund and used solely and only for paying the
principal of and interest on the Bonds or be used to reimburse a
fund or account from which advances to the Debt Service Fund may
have been made to pay principal of or interest on the Bonds prior
to receipt of Pledged Taxes . Interest income or investment
profit earned in the Debt Service Fund shall be retained in the
Debt Service Fund for payment of the principal of or interest on
the Bonds on the interest payment date next after such interest
or profit is received or , to the extent lawful and as determined
by the City Council , transferred to such other fund as may be
determined. The City hereby pledges, as equal and ratable
security for the Bonds, all present and future proceeds of the
Pledged Taxes for the sole benefit of the registered owners of
the Bonds, subject to the reserved right of the City Council to
transfer certain interest income or investment profit earned in
the Debt Service Fund to other funds of the City, as described in
the preceding sentence.
C. The amount necessary of the proceeds of the Bonds
shall be deposited into a separate fund, hereby created, desig-
nated the "Expense Fund" to be used to pay expenses of issuance
of the Bonds. Disbursements from such fund shall be made from
time to time as necessary. Any excess in said fund shall be
deposited into the Debt Service Fund hereinafter created after
`" six months from the date of issuance of the Bonds .
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D. The sum necessary, together with such money in the
debt service funds for the Prior Bonds as may be advisable for
the purpose, shall be used to provide for the Refunding, and the
payment of such expenses as may be designed, pursuant to the
provisions of an Escrow Agreement with the Escrow Agent as is
designated, all in accordance with the provisions of an Escrow
Agreement , substantially in the form attached hereto as Exhibit A
to this Ordinance, made a part hereof by this reference, and
hereby approved; the officers appearing signatory to such Escrow
Agreement are hereby authorized and directed to execute same,
their execution to constitute conclusive proof of action in
accordance with this Ordinance, and approval of all completions
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or revisions necessary or appropriate to effect the Refunding.
There is hereby authorized to be created, when, as and
if needed, a "General Obligation Refunding Bonds Rebate Fund,
Series 1991A" ( the Rebate Fund) . The officers of the City
charged with meeting the covenants of the City relating to the
Tax-exempt status of the Bonds shall create such fund as needed
and make deposits from the Expense Fund, the Bond Fund or such
other fund as the City Council may designate, in such amounts as
may be proper to assure payment of rebate of "excess arbitrage
profits" on the Bonds to the United States .
Section 14. Not Private Activity Bonds
None of the Bonds is a "private activity bond" as
defined in Section 141 (a) of the Code. In support of such con-
clusion, the City certifies , represents and covenants as follows :
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A. None of the proceeds of the Bonds are to be used,
directly or indirectly, and none of the proceeds of the Prior
Bonds were used, directly or indirectly, in any trade or business
carried on by any person other than a state or local governmental
unit . The Prior Bonds were issued for the purpose, and the Prior
Bond proceeds were properly and fully expended for the purpose,
of paying the costs of capital improvements to the essential
governmental purpose systems of the City, including storm water
system improvements, street improvements, traffic signal
installation, parking systems and other public improvements
(collectively, such systems and improvements being the
rh "Infrastructure" ) .
B. No direct or indirect payments are to be made on
any Bond with respect to any private business use by any person
other than a state or local governmental unit.
C. None of the proceeds of the Bonds are to be used,
directly or indirectly, to make or finance loans to persons other
than a state or local governmental unit.
D. No user of the Infrastructure other than the City
or another governmental unit will use the same on any basis other
than the same basis as the general public; and no person other
than the City or another governmental unit will be a user of the
Infrastructure as a result of ( i ) ownership or ( ii ) actual or
beneficial use pursuant to a lease, a management or incentive
rulk payment contract, or ( iii ) any other arrangement.
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Section 15. General Arbitrage Covenants
The City represents and certifies as follows with re-
spect to the Bonds:
A. The City has not been notified of any disqualifi-
cation or proposed disqualification of it by the Commissioner of
the Internal Revenue Service as a bond issuer which may certify
bond issues under Treasury Regulations Section 1 .103-13 (a) ( 2)-
( ii) ( 1979 ) .
B. Moneys on deposit in any fund or account in con-
nection 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
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to be "arbitrage bonds" within the meaning of Code Section 148
and any lawful regulations promulgated thereunder , including
Treasury Regulations Sections 1 . 103-13 , 1 . 103-14 and 1. 103-15
( 1979 ) as the same presently exist or may from time to time here-
after be amended, supplemented or revised.
Section 16. Arbitrage Rebate
The City recognizes that the provisions of Section 148
of the Code require a rebate to the United States in certain
circumstances. The proceeds of the Bonds shall be subject to
such rebate; provided, however , that proceeds of the Bonds on
deposit in the escrow account under the escrow agreement, as
hereinabove described in Section 13 , shall be invested at a yield
e'" not in excess of the yield on the Bonds, so no rebate is expected
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with respect thereto; investments of Bond proceeds in the expense
fund hereinabove created are not expected to provide excess arbi-
trage profits due to the short duration prior to disbursement ,
but these investments will be reviewed for applicability of
rebate; and moneys in the Debt Service Fund (a bona fide debt
service fund) are not subject to rebate.
Section 17. Registered Form
The City recognizes that Section 149 of the Code re-
quires the Bonds to be issued and to remain in fully registered
form in order to be and remain Tax-exempt. 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.
Section 18. Further Tax Covenants
The City agrees to comply with all provisions of the
present Code which, if not complied with by the City, would cause
the Bonds not to be Tax-exempt . In furtherance of the foregoing
provisions, but without limiting their generality, the City
agrees : (a) through its officers, to make such further specific
covenants, representations as shall be truthful, and assurances
as may be necessary or advisable; (b) to comply with all repre-
sentations, covenants and assurances contained in certificates or
agreements as may be prepared by counsel approving the Bonds ; ( c)
to consult with such counsel and to comply with such advice as
may be given; (d) to file such forms, statements and supporting
documents as may be required and in a timely manner ; and (e) if
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deemed necessary or advisable by its officers , to employ and pay
fiscal agents , financial advisors , attorneys and other persons to
assist the City in such compliance.
Section 19 . Opinion of Counsel Exception
The City reserves the right to use or invest moneys in
connection with the Bonds in any manner , notwithstanding the
representations and covenants in Sections 14 through 18 herein,
provided it shall first have received an opinion from an attorney
or a firm of attorneys of nationally recognized standing in
matters pertaining to Tax-exempt bonds to the effect that use or
investment of such moneys as contemplated will not result in loss
or impairment of Tax-exempt status for the Bonds.
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Section 20. Taxes Previously Levied
The taxes previously levied to pay principal of and
interest on the Prior Bonds , to the extent such principal and
interest is provided for from the escrow account under the escrow
agreement as hereinabove described in Section 13 , shall be
abated. The filing of a certificate of abatement with the County
Clerks of the Counties of Kane and Cook, Illinois, as hereinabove
provided shall constitute authority and direction for said County
Clerks to make such abatement.
Section 21. Rights and Duties of Bond Registrar
If requested by the Bond Registrar and Paying Agent,
any officer of the City is authorized to execute the Bond Regis-
'"` trar ' s and Paying Agent ' s standard form of agreement between the
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City and the Bond Registrar and Paying Agent with respect to the
obligations and duties of the Bond Registrar and Paying Agent
hereunder . In addition to the terms of such agreement or agree-
ments and subject to modification thereby, the Bond Registrar and
Paying Agent by acceptance of duties hereunder agree:
(a) to act as bond registrar , paying agent, authenticating
agent, and transfer agent as respectively provided herein;
(b) for the Bond Registrar , to maintain a list of Bondhol-
ders as set forth herein and to furnish such list to the City
upon request, but otherwise to keep such list confidential to the
extent permitted by law;
(c) for the Bond Registrar , to cancel and/or destroy Bonds
which have been paid at maturity or upon redemption or submitted
for exchange or transfer ;
(d) for the Bond Registrar , to furnish the City at least
annually a certificate with respect to Bonds cancelled and/or
destroyed; and
(e) for the Bond Registrar , 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 .
The City Clerk of the City is hereby directed to file a
certified copy of this ordinance with the Bond Registrar and the
Paying Agent .
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Section 22. Publication of Ordinance
A full, true and complete copy of this Ordinance shall
be published within ten days after passage in the Daily
Courier-News, being a newspaper published in and of general
circulation within the City.
Section 23. Superseder and Effective Date
All ordinances, resolutions and orders, or parts there-
of, in conflict herewith, are to the extent of such conflict
hereby superseded; and this Ordinance shall be in full force and
effect immediately upon its passage, approval and publication.
AYES: Councilmembers Dan Fox, Susan Moylan, Cheryl Popple,
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John Walters, Marie Yearman and Mayor VanDeVoorde.
NAYS: None.
ABSENT: Councilmember Robert Gilliam.
ADOPTED: August 14 , 1991
APPROV' : August 14 , 1991
.I
Mayor ,/ity of Elgin
Kane and Cook Counties, Illinois
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RECORDED In City Records : August 15 , 1991.
PUBLISHED in the Daily Courier-News by authority of the City
Council on August 25 , 1991 .
Attest :
City Clerk, ity of Elgin
Kane and Cook Counties, Illinois
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