S8-97 _
CITY OF ELGIN
ORDINANCE NO. S8-97
AN ORDINANCE
PROVIDING FOR THE ISSUANCE OF $4 , 860 , 000 GENERAL OBLIGATION
CORPORATE PURPOSE BONDS, SERIES 1997A OF THE CITY OF ELGIN,
KANE AND COOK COUNTIES, AND PROVIDING FOR THE LEVY AND
COLLECTION OF A DIRECT ANNUAL TAX FOR THE PAYMENT OF THE
PRINCIPAL OF AND INTEREST ON SAID BONDS
ADOPTED BY THE
CITY COUNCIL OF THE
CITY OF ELGIN
ON THIS 14TH DAY OF MAY, 1997
Published in pamphlet form by
authority of the City Council of
the City of Elgin, Kane and Cook
Counties , Illinois , on this
16th day of May, 1997 .
is
STATE OF ILLINOIS
ss .
COUNTY OF KANE
CERTIFICATE
I , Dolonna Mecum, certify that I am the duly appointed
and acting municipal clerk of the City of Elgin, Cook and Kane
Counties, Illinois .
I further certify that on May 14 , 1997 , the Corporate
Authorities of such municipality passed and approved Ordinance
No. S5-97 , entitled An Ordinance Providing for the Issuance of
$4 , 860, 000 General Obligation Corporate Purpose Bonds, Series
1997A, of the City of Elgin, Kane and Cook Counties, and
�.. Providing for the Levy and Collection of a Direct Annual Tax for
the Payment of the Principal of and Interest on Said Bonds,
which provided by its terms that it should be published in
pamphlet form.
The pamphlet form of Ordinance No. S5-97 , including
the Ordinance and a cover sheet thereof, was prepared, and a
copy of such Ordinance was posted in the municipal building,
commencing on May 16 , 1997 , and continuing for at least ten
days thereafter. Copies of such Ordinance were also available
for public inspection upon request in the office of the
municipal clerk.
DATED at Elgin, Illinois, on May 16 , 1997 .
gi91471..."4_4014LCx.4*.---.
Municipal Clerk
(SEAL)
r
ORDINANCE NUMBER S8-97
AN ORDINANCE providing for the issuance of $4,860,000 General
Obligation Corporate Purpose Bonds, Series 1997A, 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 by virtue of its population, the City of Elgin, Kane and Cook Counties,
Illinois (the "City"), and pursuant to the provisions of Section 6 of Article VII of the
Constitution of the State of Illinois, the City is a home rule unit and 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, the City has the power to
incur debt payable from ad valorem property tax receipts or from any other lawful source
and maturing within 40 years from the time it is incurred without prior referendum
approval; and
WHEREAS on the 23rd day of April, 1975, the City Council of the City (the "City
Council") 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
elk
Ordinance No. 64-80 adopted on October 8, 1980, by Ordinance No. G39-82 adopted on
r
July 28, 1982 and by Ordinance No. G31-92 adopted on June 17, 1992 (Ordinance
No. G22-75 as so amended being referred to hereinafter as the "Enabling Ordinance"); and
WHEREAS the City Council has considered the needs of the City and has heretofore
determined and does hereby determine that it is advisable, necessary and in the best interests
of the City to construct various sewer system improvements and water system improvements
(all of such improvements to be the "Series 1997A Project"); and
WHEREAS the estimated cost to the City of the Series 1997A Project is the sum of
$4,860,000 plus any estimated available amount of interest earnings on said sum prior to its
expenditure; and
WHEREAS there are insufficient funds on hand and available to pay the costs of the
Series 1997A Project, and it is necessary for that purpose that a sum to pay such costs be
borrowed at this time, and in evidence of such indebtedness, General Obligation Corporate
Purpose Bonds of the City be issued in the principal amount of $4,860,000, more or less,
and that such indebtedness be incurred in accordance with the Act as hereinafter defined, and
without submitting the question of incurring such indebtedness to the electors of the City for
their approval; and
WHEREAS the City Council does hereby determine that it is advisable and in the best
interests of the City to borrow $4,860,000 at this time pursuant to the Act for the purpose of
paying the costs of the Series 1997A Project and, in evidence of such borrowing, issue its
full faith and credit bonds in the principal amount of$4,860,000;
r
-2-
r
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 and in accordance with the
Enabling Ordinance, as follows:
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
different meaning is intended:
"Act" means the Illinois Municipal Code, as supplemented and amended, the home rule
powers of the City under Section 6 of Article VII of the Illinois Constitution of 1970 and
the Enabling Ordinance adopted pursuant to such home rule powers; and, in the event of
conflict between the provisions of said code and home rule powers, the home rule powers
tek shall be deemed to supersede the provisions of said code.
"Bond" or "Bonds" means one or more, as applicable, of the $4,860,000 General
Obligation Corporate Purpose Bonds, Series 1997A, authorized to be issued by this
Ordinance.
"Bond Fund" means the Bond Fund established and defined in Section 16 of this
Ordinance.
"Bond Moneys" means the Pledged Taxes and any other moneys deposited into the
Bond Fund and investment income earned in the Bond Fund.
"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 LaSalle National Bank, 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.
-3-
"City Council" means the City Council of the City.
"County Clerks" means the County Clerks of The County of Kane and The County of
Cook, Illinois.
"Code" means the Internal Revenue Code of 1986.
"Ordinance" means this Ordinance, numbered as set forth on the title page hereof, and
passed by the City Council on the 14th day of May 1997.
"Paying Agent" means LaSalle National Bank, Chicago, Illinois, a bank having trust
powers, or a successor thereto or a successor designated as Paying Agent hereunder.
"Pledged Taxes" means the taxes levied on the taxable property within the City to pay
principal of and interest on the Bonds as made in Section 13 hereof.
"Series 1997A Project" means the City's various improvement projects as described
and defined as such in the preambles to this Ordinance.
"Tax-exempt" means, with respect to the Bonds, the status 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 determining the alternative minimum tax for
certain corporations, in computing the environmental tax imposed on certain corporations
and in computing the "branch profits tax" imposed on certain foreign corporations.
"Term Bonds" means Bonds subject to mandatory redemption by operation of the
Bond Fund and designated as term bonds herein.
Section 2. Incorporation of Preambles. The City Council hereby finds 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.
r
-4-
Section 3. Determination to Issue Bonds. It is necessary and in the best interests of
the City to construct the Series 1997A Project, 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 necessary for the welfare of the
government and affairs of the City, is for a proper public purpose or purposes and is in the
public interest, and is authorized pursuant to the Act; and these findings and determinations
shall be deemed conclusive.
Section 4. Bond Details. For the purpose of providing for such costs, there shall
be issued and sold the Bonds in the principal amount of $4,860,000. The Bonds shall each
be designated "General Obligation Corporate Purpose Bond, Series 1997A"; be dated
June 1, 1997 (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 $5,000 or integral
multiples thereof (but no single Bond shall represent principal maturing on more than one
date), shall be numbered consecutively in such fashion as shall be determined by the Bond
Registrar, and shall become due and payable (subject to right of prior redemption as
hereinafter set forth) on January 1 of the years and in the amounts and bearing interest at the
rates percent per annum as follows:
-5-
r
YEAR AMOUNT ($) RATE (%)
1998 110,000 4.875
1999 105,000 4.875
2000 105,000 4.90
2001 110,000 4.90
2002 120,000 4.90
2003 125,000 4.90
2004 130,000 4.90
2005 200,000 4.90
2006 210,000 4.95
2007 225,000 5.00
2008 330,000 5.00
2009 340,000 5.00
2010 350,000 5.10
2011 290,000 5.25
2012 310,000 5.30
2013 325,000 5.30
2014 340,000 5.35
2015 355,000 5.50
2016 380,000 5.50
2017 400,000 5.50
provided, however, that pursuant to the terms of the contract for the sale of the Bonds,
confirmed in Section 15 of this Ordinance, those of the Bonds shown as due serially in the
above table (the "Table") in the years 2015 and 2016 shall be Term Bonds coming due in the
year 2017, having a schedule of mandatory redemptions (and a resultant final maturity
amount in the year such Term Bond becomes due) for the years and in the amounts as is set
forth in the Table.
Each Bond shall bear interest from the later of its 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 provided 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, 1998. Interest on each Bond
shall be paid by check or draft of the Paying Agent, payable upon presentation thereof in
-6-
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 applicable Record Date (the "Record Date"), and
mailed to the registered owner of the Bond as shown in the Bond Registrar or at such other
address furnished in writing by such Registered Owner. The Record Date shall be the 15th
day of the month preceding any regular or other interest payment date occurring on the first
day of any month and 15 days preceding any interest payment date occasioned by the
redemption of Bonds on other than the first day of a month. The principal of or redemption
price due on the Bonds shall be payable in lawful money of the United States of America
upon presentation 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 S. 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 as
provided in Section 4 hereof, and the ownership of each such Bond shall be registered in the
Bond Register in the name of Cede & Co., or any successor thereto ("Cede"), as nominee of
The Depository Trust Company, New York, New York, and its successors and assigns
("DTC"). All of the outstanding Bonds shall be registered in the Bond Register in the name
of Cede, as nominee of DTC, except as hereinafter provided. The Mayor, Treasurer and
Clerk of the City are hereby authorized to execute and deliver on behalf of the City such
letters to or agreements with DTC 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").
With respect to the Bonds registered in the Bond Register in the name of Cede, as
nominee of DTC, the City and the Bond Registrar shall have no responsibility or obligation
rbk
to any broker-dealer, bank or other financial institution for which DTC holds Bonds from
-7-
time to time as securities depository (each such broker-dealer, bank or other financial
institution being referred to herein as a "DTC Participant") or to any person on behalf of
whom such a DTC 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 DTC, Cede or any DTC
Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any DTC
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 DTC 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 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 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 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 certificate evidencing the obligation of the City to make
payments of principal and interest with respect to any Bond. Upon delivery by DTC to the
Irk
Bond Registrar of written notice to the effect that DTC has determined to substitute a new
-8-
r
nominee in place of Cede, the name "Cede" in this Ordinance shall refer to such new
nominee of DTC.
In the event that (i) the City determines that DTC is incapable of discharging its
responsibilities described herein and in the Representation Letter, (ii) the agreement among
the City, the Bond Registrar and DTC 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 DTC and DTC Participants of the availability through DTC of Bond certificates and
the Bonds shall no longer be restricted to being registered in the Bond Register in the name
of Cede, as nominee of DTC. At the time, the City may determine that the Bonds shall be
registered in the name of and deposited with such other depository operating a global 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 global book-entry system, then the Bonds may be
registered in whatever name or names registered owners of Bonds transferring or
exchanging Bonds shall designate, in accordance with the provisions of Section 11 hereof.
Notwithstanding any other provision of this Ordinance to the contrary, so long as any
Bond is registered in the name of Cede, as nominee of DTC, 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 6. Execution; Authentication. The Bonds shall be executed on behalf of
the City by 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
-9-
r
such officer before the delivery of such Bond, such signature shall nevertheless be valid and
sufficient for all purposes, the same as if such officer 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 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 be deemed to have been executed by it if
signed by an authorized officer of the Bond Registrar, but it shall not be necessary that the
same officer sign the certificate of authentication on all of the Bonds issued hereunder.
Section 7. Term Bonds, Mandatory Redemption and Covenants. Those of the
Bonds denominated Term Bonds are subject to mandatory redemption by operation of the
Bond Fund at a price of par and accrued interest, without premium, on January 1 of the
years and in the amounts set forth in Section 4 above by reference to the Table in such
section.
The City covenants that it will redeem Term Bonds pursuant to the mandatory
redemption requirement for such Term Bonds. Proper provision for mandatory redemption
having been made, the City covenants that the Term Bonds so selected for redemption shall
be payable as at maturity, and taxes shall be levied and collected as provided herein
accordingly.
Section 8. Optional Redemption. Those of the Bonds due on or after January 1,
elk
2006, are subject to redemption prior to maturity at the option of the City, from any
-10-
r
available funds, in whole or in part, on any date on or after January 1, 2005, 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 9. Term Bonds Purchase or Redemption. If the City redeems pursuant to
optional redemption as hereinabove provided or purchases Term Bonds of any maturity and
cancels the same from Bond Moneys as hereinafter described, then an amount equal to the
principal amount of Term Bonds so redeemed or purchased shall be deducted from the
mandatory redemption requirements provided for Term Bonds of such maturity, first, in the
current year of such requirement, until the requirement for the current year has been fully
met, and then in any order of such Term Bonds as due at maturity or subject to mandatory
redemption in any year, as the City shall determine. If the City redeems pursuant to
optional redemption or purchases Term Bonds of any maturity and cancels the same from
moneys other than Bond Moneys, then an amount equal to the principal amount of Term
Bonds so redeemed or purchased shall be deducted from the amount of such Term Bonds as
due at maturity or subject to mandatory redemption requirement in any year, as the City
shall determine.
Section 10. Redemption Procedure. For a mandatory redemption of Term Bonds,
the Bond Registrar shall proceed without further authorization or direction to provide for
such redemption. For optional redemptions, the City shall, at least 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 maturities and principal
amounts of Bonds to be redeemed. In the event of an optional redemption of less than all of
a given maturity of Term Bonds, the City shall also notify the Bond Registrar of the
-11-
allocation of the amount to be redeemed to the mandatory redemption requirements for such
Term Bonds. 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, however, 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 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.
k
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 registered or certified 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 Registrar.
All official notices of redemption shall include the full name of the Bonds to be
redeemed and at least the information as follows:
(a) the redemption date;
(b) the redemption price;
elk
-12-
(c) if less than all of the outstanding Bonds of a particular 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 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
(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 interest. 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. Waivers of notice by registered owners shall be filed with the Bond
-13-
Registrar, but such filing shall not be a condition precedent to the validity of any action
g g p Y Y
taken in reliance upon such waiver.
Upon surrender of such Bonds for redemption in accordance 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 same rate of interest in the
amount of the unpaid principal.
If any Bond or portion of a 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.
In addition to the foregoing notice, further notice shall be given by the Bond Registrar
on behalf of the City as set out below, but no defect in said further notice nor any failure to
give all or any portion of such further notice shall in any manner defeat the effectiveness of
a call for redemption if notice thereof is given as above prescribed.
Each further notice of redemption given hereunder shall contain the information
required above for an official notice of redemption plus (a) the CUSIP numbers of all
Bonds being redeemed; (b) the date of issue of the Bonds as originally issued; (c) -the rate
of interest borne by each Bond being redeemed; (d) the maturity date of each Bond being
redeemed; and (e) any other descriptive information needed to identify accurately the Bonds
being redeemed.
-14-
r
Each further notice of redemption shall be sent at least 35 days before the redemption
date by registered or certified mail or overnight delivery service to all registered securities
depositories then in the business of holding substantial amounts of obligations of types
comprising the Bonds (such depositories now including The Depository Trust Company of
New York, New York, and Depository Trust Company of Philadelphia, Pennsylvania) and
to one or more national information services, chosen in the discretion of the Bond Registrar,
that disseminate notice of redemption of obligations such as the Bonds.
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.
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 and published.
Section 11. Registration and Exchange or Transfer 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 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
-15-
r
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 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 Record Date for an interest payment 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 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, that 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 liability upon such Bond to the extent of the sum or sums so paid.
-16-
r
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 12. Form of Bond. The Bonds shall be in substantially the form hereinafter
set forth; provided, however, that if the text of the Bonds is to be printed in its entirety on
the front side of the Bonds, then the second paragraph on the front side and the legend "See
Reverse Side for Additional Provisions" shall be omitted and the text of paragraphs set forth
for the reverse side shall be inserted immediately after the first paragraph.
elk
t
-17-
[Form of Bond - Front Side]
REGISTERED REGISTERED
NO. $
UNITED STATES OF AMERICA
STATE OF ILLINOIS
THE COUNTIES OF KANE AND COOK
CITY OF ELGIN
GENERAL OBLIGATION CORPORATE PURPOSE BOND, SERIES 1997A
See Reverse Side for
Additional Provisions.
Interest Maturity Dated
Rate: Date: January 1, Date: June 1, 1997 CUSIP:
Registered Owner: CEDE& CO.
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 hereinafter
stated), 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 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, 1998, until said Principal Amount is paid or duly provided for. The principal of
or redemption price on this Bond is payable in lawful money of the United States of
America upon presentation hereof at the principal corporate trust office of LaSalle National
Bank, in the City of Chicago, Illinois, as paying agent (the "Paying Agent"). Payment of
el Ilk interest shall be made to the Registered Owner hereof as shown on the registration books of
-18-
r
the City maintained by LaSalle National Bank, in the City of Chicago, Illinois, as bond
registrar (the "Bond Registrar"), at the close of business on the applicable Record Date (the
"Record Date"). The Record Date shall be the 15th day of the month preceding any regular
or other interest payment date occurring on the first day of any month and 15 days
preceding any interest payment date occasioned by the redemption of Bonds on other than
the first day of a month. Interest shall be paid by check or draft of the Paying Agent,
payable upon presentation 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, or as
otherwise agreed by the City and Cede & Co., as nominee, or successor, for so long as this
Bond is held by The Depository Trust Company, New York, New York, the depository, or
nominee, in book-entry only form as provided for same.
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.
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, including the authorizing Act, 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
constitutional or statutory or other lawful 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.
-19-
r
THE CITY HAS DESIGNATED THIS BOND AS A"QUALIFIED TAX-EXEMPT OBLIGATION"
PURSUANT TO SECTION 265(b)(3) OF THE INTERNAL REVENUE CODE OF 1986.
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 facsimile signature of
its City Clerk and its corporate seal or a facsimile thereof to be impressed or reproduced
hereon, all as appearing hereon and as of the Dated Date identified above.
Mayor, City of Elgin
NI TEST: Kane and Cook Counties, Illinois
City Clerk, City of Elgin
Kane and Cook Counties, Illinois
[SEAL]
r
-20-
Date of Authentication:
CERTIFICATE OF AUTHENTICATION
This Bond is one of the Bonds described in the within-mentioned Ordinance and is one
of the General Obligation Corporate Purpose Bonds, Series 1997A, having a Dated Date of
June 1, 1997, of the City of Elgin, Kane and Cook Counties, Illinois.
LASALLE NATIONAL BANK, as Bond Registrar
By
Authorized Officer
Bond Registrar and Paying Agent:
LASALLE NATIONAL BANK
Chicago, Illinois
-21-
[Form of Bond - Reverse Side]
This bond is one of a series of bonds (the "Bonds") in the aggregate principal amount
of $4,860,000 issued by the City for the purpose of paying the costs of the Series 1997A
Project and of paying expenses incidental thereto, all as described and defined in the
ordinance authorizing the Bonds (the "Ordinance"), pursuant 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, superseded, by the powers
of the City as a home rule unit under the provisions of Section 6 of Article VII of the
Illinois Constitution of 1970 (such code and powers being the "Act"), and with the
Ordinance, which has been duly passed by the City Council of the City, approved by the
Mayor, and published, in all respects as by law required.
Subject to the provisions relating to this Bond remaining in book-entry only form, 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 transfer
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 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 Record Date for an interest payment to the opening
of business on such interest payment date or during the period of 15 days preceding the
-22-
•
r
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 may be subject to mandatory and optional redemption, and the holder of
this Bond shall refer to the provisions of the Ordinance for the terms and provision for
notice of redemption.
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 purposes, and the City,
the Bond Registrar and the Paying Agent shall not be affected by any notice to the contrary.
-23-
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto
Here insert Social Security Number,
Employer Identification Number or
other Identifying Number
(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 registration thereof with full
power of substitution in the premises.
Dated:
Signature guaranteed:
NOTICE: The signature to this transfer and 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.
rk
-24-
r
Section 13. 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 and as subject to mandatory redemption, 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 hereby levied on all
of the taxable property in the City, in addition to all other taxes, the following direct annual
taxes (the Pledged Taxes as hereinabove defined):
FOR THE YEAR A TAX SUFFICIENT TO PRODUCE THE DOLLAR SUM OF:
1997 $351,318.76 for interest and principal up to and
including January 1, 1999
1998 $346,200.00 for interest and principal
1999 $346,055.00 for interest and principal
2000 $350,665.00 for interest and principal
2001 $349,785.00 for interest and principal
2002 $348,660.00 for interest and principal
2003 $412,290.00 for interest and principal
2004 $412,490.00 for interest and principal
2005 $417,095.00 for interest and principal
2006 $510,845.00 for interest and principal
2007 $504,345.00 for interest and principal
2008 $497,345.00 for interest and principal
2009 $419,495.00 for interest and principal
2010 $424,270.00 for interest and principal
2011 $422,840.00 for interest and principal
2012 $420,615.00 for interest and principal
2013 $417,425.00 for interest and principal
2014 $422,900.00 for interest and principal
2015 $422,000.00 for interest and principal
The Pledged Taxes and other moneys (excepting proceeds of the Bonds) on deposit
(collectively, the "Bond Moneys") in the Bond Fund shall be applied to pay principal of and
interest on the Bonds as follows:
-25-
r
A. Bond Moneys shall be applied to the payment of interest when due and
principal or redemption price when due at maturity or as redeemed pursuant to
mandatory redemption from the Bond Fund, or
B. On or before October 10 in each calendar year preceding a January 1
mandatory redemption date in the successive calendar year, Bond Moneys up to the
amount of the redemption requirement on such mandatory redemption date plus
interest due on Term Bonds on such date may be applied (1) to the purchase of Term
Bonds of the maturity for which such mandatory redemption requirement was
established at prices (including commissions and charges, if any) not exceeding par
and accrued interest to such January 1 or (2) to the redemption of such Bonds,
without premium, pursuant to optional redemption provisions applicable thereto.
Upon the purchase or redemption of Term Bonds of any maturity pursuant to this
paragraph (B), an amount equal to the principal amount of such Bonds or applicable
portion thereof so purchased or redeemed shall be deducted from the next mandatory
redemption requirement thereafter to become due on such Bonds and any excess over
the amount of such requirement shall be deducted from the future requirement for
such Bonds as the City shall determine.
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, reimbursement shall be made to said funds in the
amount so advanced. 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
-26-
r,.
City to levy and collect the foregoing tax levy. The City and its officers will comply with
all present and future applicable laws in order to assure that the Pledged Taxes may be
levied, extended and collected as provided herein and deposited into the Bond Fund.
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 Bond 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 in a timely manner to
effect such abatement.
Section 14. Filing with County Clerks. Promptly, as soon as this Ordinance
e"' becomes effective, a copy hereof, certified by the City Clerk of the City, shall be filed with
the County Clerks; and the County Clerks shall in and for each of the years 1997 to 2015,
inclusive, ascertain the rate percent required to produce the aggregate tax hereinbefore
provided to be levied in each of said years; and the 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 and for and on behalf of 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.
Section 15. Sale of Bonds. The Bonds shall be executed as in this Ordinance
provided as soon after the passage hereof as may be, shall be deposited with the City
Treasurer, and shall be by the Treasurer delivered to the purchasers thereof, namely, Smith
Barney, Inc., Chicago, Illinois (the "Purchasers"), upon payment of the purchase price
-27-
p
agreed upon, the same being not less than $4,826,888.50 plus accrued interest to date of
delivery. The contract for the sale of the Bonds to the Purchasers, heretofore entered into,
is hereby in all respects approved and confirmed, and the officer(s) of the City designated
therein are authorized and directed to execute the agreement on behalf of the City, it being
hereby declared that no person holding any office of the City, either by election or
appointment, 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 for the sale
of the Bonds to the Purchasers.
The distribution by the Purchasers of the Preliminary Official Statement relating to
the Bonds, dated April 24, 1997, is hereby in all respects ratified, authorized and approved,
and the proposed use by the Purchaser of an Official Statement (in substantially the form of
the Preliminary Official Statement but with appropriate variations to reflect the final terms
of the Bonds) is hereby authorized and approved.
Such officer or officers of the City as are designated therein are hereby authorized to
execute and deliver the Official Statement on behalf of the City.
Section 16. Creation of Funds and Appropriations.
A. There is hereby created the "General Obligation Corporate Purpose Bonds,
Series 1997A, Bond Fund" (the "Bond Fund"), which shall be the fund for the payment of
principal of and interest on the Bonds.
B. The Pledged Taxes shall either be deposited into the Bond 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 Bond 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 Bond Fund shall be retained in the Bond Fund for payment
t
-28-
of the p P rind al 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 Bond Fund to
other funds of the City, as described in the preceding sentence.
C. Accrued interest on the Bonds plus the remaining principal proceeds of the
Bonds shall be set aside in a separate fund, hereby created, and designated as the "Series
1997A Project Fund" (the "Project Fund"), hereby created as the fund to provide for the
receipt and disbursement of proceeds of the Bonds for the Series 1997A Project and to pay
''" costs of issuance of the Bonds. Alternatively, the Treasurer may allocate such remaining
proceeds to one or more related project funds of the City already in existence; provided,
however, that this shall not relieve the Treasurer of the duty to account for the proceeds as
herein provided. (Any such one or more funds shall also be referred to hereinafter,
collectively, as the "Project Fund".) The City Council reserves the right, as it becomes
necessary from time to time, to revise the list of expenditures hereinabove set forth, to
change priorities, to revise cost allocations between expenditures and to substitute projects,
in order to meet current needs of the City; subject, however, to the tax covenants set forth
herein.
Section 17. 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 conclusion, the City
certifies, represents and covenants as follows:
-29-
A. None of the proceeds of the Bonds is to be used, directly or indirectly, in
any trade or business carried on by any person other than a state or local
governmental unit.
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 is 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 Series 1997A Project 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 Series 1997A Project as a result of (i) ownership or (ii) actual or
beneficial use pursuant to a lease, a management or incentive payment contract, or
(iii) any other arrangement.
Section 18. General Arbitrage Covenants. The City 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 to be paid for with money
received from the sale of the Bonds, said binding obligations comprising binding
contracts for the Series 1997A Project in not less than the amount of five percent of
the sale proceeds of the Bonds.
B. More than 85% of the proceeds of the Bonds will be expended on or
before June 1, 2000, for the purpose of paying the costs of the Series 1997A Project,
said date being within three years following the date of issue of the Bonds.
-30-
r
C. All of the principal proceeds of the Bonds, and investment earnings
thereon, will be used, needed and expended for the purpose of paying the costs of the
Series 1997A Project, including expenses incidental thereto.
D. Work on the Series 1997A Project is expected to proceed with due
diligence to completion.
E. 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 1/12th the
particular annual debt service on the Bonds. Money deposited into 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 or withdrawn from the Bond Fund within a
one-year period beginning on the date of receipt.
F. Amounts of money related to the Bonds required to be invested at a yield
not materially higher than the yield on the Bonds, as determined pursuant to such tax
certifications or agreements as the City officers may make in connection with the
issuance of the Bonds, shall be so invested; and appropriate City officers are hereby
authorized to make such investments.
G. The City has not been notified of any disqualification 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).
-31-
r
The City further certifies and covenants as follows with respect to the requirements of
Section 148(f) of the Code, relating to the rebate of "excess arbitrage profits" (the "Rebate
Requirement") to the United States:
H. Unless an applicable exception to the Rebate Requirement is available to
the City, the City will meet the Rebate Requirement.
I. Relating to applicable exceptions, the Treasurer or the Mayor is hereby
authorized to make such elections under the Code as either such officer shall deem
reasonable and in the best interests of the City. If such election may result in a
"penalty in lieu of rebate" as provided in the Code, and such penalty is incurred (the
"Penalty"), then the City shall pay such Penalty.
J. The officers of the City shall cause to be established, at such time and in
such manner as they may deem necessary or appropriate hereunder, a "General
Obligation Corporate Purpose Bonds, Series 1997A, Rebate [or Penalty, if applicable]
Fund" (the "Rebate Fund") for the Bonds, and such officers shall further, not less
frequently than annually, cause to be transferred to the Rebate Fund the amount
determined to be the accrued liability under the Rebate Requirement or Penalty. Said
officers shall cause to be paid to the U.S., without further order or direction from the
City Council, from time to time as required, amounts sufficient to meet the Rebate
Requirement or to pay the Penalty.
K. Interest earnings in the Project Fund and the Bond Fund are hereby
authorized to be transferred, without further order or direction from the City
Council, from time to time as required, to the Rebate Fund for the purposes herein
provided; and proceeds of the Bonds and other funds of the City are also hereby
authorized to be used to meet the Rebate Requirement or to pay the Penalty, but only
k
-32-
r
if necessary after application of investment earnings as aforesaid and only as
appropriated by the City Council.
The City also certifies and further covenants with the purchasers and registered
owners of the Bonds from time to time outstanding that 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 Code Section 148
and any lawful regulations promulgated thereunder, as the same presently exist or may from
time to time hereafter be amended, supplemented or revised.
Section 19. Registered Form. The City recognizes that Section 149 of the Code
requires 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 20. Further Tax Covenants. The City agrees to comply with all provisions
of the 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 representations, 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 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.
-33-
r
Section 21. Not Qualified Tax-exempt Obligations. The City recognizes the
provisions of Section 265(b)(3) of the Code which provide that a "qualified tax-exempt
obligation" as therein defined may be treated by certain financial institutions as if it were
acquired on August 7, 1986, for certain purposes. The City hereby designates the Bonds for
purposes of Section 265(b)(3) of the Code as a "qualified tax-exempt obligation" as provided
therein
In support of such designation, the City certifies, represents and covenants as follows:
A. The Bonds are not "private activity bonds" as defined in Section 141(a) of
the Code.
B. Including the Bonds, the City (including any entities subordinate thereto)
has not and does not reasonably expect to issue in excess of $10,000,000 in "qualified
tax-exempt obligations" (as such term is defined in the Code) during calendar year
1997.
C. Including the Bonds, not more than $10,000,000 of obligations issued by
the City (including any entities subordinate thereto) during calendar year 1997 have
been to date or will be designated by the City for purposes of said Section 265(b)(3).
Section 22. Opinion of Counsel Exception. The City reserves the right to use or
invest moneys in connection with the Bonds in any manner, or to treat with or use the Series
1997A Project in any manner, notwithstanding the tax-related covenants set forth in
Sections 17 through 21 herein, provided, that it shall first have received an opinion from
an attorney or a firm of attorneys of nationally recognized standing as bond counsel to the
effect that such use or investment as contemplated is valid and proper under applicable law
and this Ordinance and that such use or investment will not adversely affect either the Tax-
exempt or "qualified tax-exempt obligation" status of the Bonds.
-34-
r
Section 23. Reimbursement. None of the proceeds of the Bonds will be used to pay,
directly or indirectly, in whole or in part, for expenditures for the Series 1997A Project that
have been paid prior to the passage of this Ordinance.
Section 24. Rights and Duties of Bond Registrar and Paying Agent. If requested by
the Bond Registrar or the Paying Agent, or both, any officer of the City is authorized to
execute standard forms of agreements between the City and the Bond Registrar or Paying
Agent with respect to the obligations and duties of the Bond Registrar or Paying Agent
hereunder. In addition to the terms of such agreements 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 provided herein;
(b) as to the Bond Registrar, 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 to the extent permitted by law;
(c) as to 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) as to the Bond Registrar, to furnish the City at least annually a certificate
with respect to Bonds cancelled and/or destroyed; and
(e) 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.
Section 25. Defeasance. Any Bond or Bonds which (a) are paid and cancelled,
(b) which have matured and for which sufficient sums been deposited with the Paying Agent
-35-
•
to pay all principal and interest due thereon, or (c) for which sufficient U.S. funds and
direct U.S. Treasury obligations have been deposited with the Paying Agent or similar
institution to pay, taking into account investment earnings on such obligations, all principal
of and interest on such Bond or Bonds when due at maturity or as called for redemption,
pursuant to an irrevocable escrow or trust agreement, shall cease to have any lien on or
right to receive or be paid from the Bond Moneys or Pledged Taxes hereunder and shall no
longer have the benefits of any covenant for the registered owners of outstanding Bonds as
set forth herein as such relates to lien and security of the outstanding Bonds. All covenants
relative to the Tax-exempt status of the Bonds; and payment, registration, transfer, and
exchange; are expressly continued for all Bonds whether outstanding Bonds or not.
Section 26. Continuing Disclosure Undertaking. The Mayor or the Treasurer of
the City is hereby authorized, empowered and directed to execute and deliver the Continuing
Disclosure Undertaking (the "Continuing Disclosure Undertaking") in substantially the same
form as now before the City Council, or with such changes therein as the individual
executing the Continuing Disclosure Undertaking on behalf of the City shall approve, the
official's execution thereof to constitute conclusive evidence of the approval of such changes.
When the Continuing Disclosure Undertaking is executed and delivered on behalf of the City
as herein provided, the Continuing Disclosure Undertaking will be binding on the City and
the officers, employees and agents of the City, and the officers, employees and agents of the
City are hereby authorized, empowered and directed to do all such acts and things and to
execute all such documents as may be necessary to carry out and comply with the provisions
of the Continuing Disclosure Undertaking as executed. Notwithstanding any other provision
of this Ordinance, the sole remedies for failure to comply with the Continuing Disclosure
Undertaking shall be the ability of the beneficial owner of any Bond to seek mandamus or
-36-
•
r
specific performance by court order, to cause the City to comply with its obligations under
the Continuing Disclosure Undertaking.
Section 27. Publication of Ordinance. A full, true and complete copy of this
Ordinance shall be published within ten days after passage in pamphlet form by authority of
the City Council.
felk
-37-
r
Section 28. Superseder and Effective Date. All ordinances, resolutions and orders,
or parts thereof, 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 Gavin, Gilliam, McKevitt, Schock,
Walters , Yearman, and Mayor Kelly
NAYS: None
ABSENT: Nnne
ADOPTED: May 14, 1997
APPROVED: May 14, 1997
/3,/e,"7/t--.
Mayor, City of Elgin
Kane and Cook Counties, Illinois
Recorded In City Records: May 14, 1997.
Published in pamphlet form by authority of the City Council on May 14, 1997.
AI"1'EST:
City Clerk, City of Elgin
Kane and Cook Counties, Illinois
[SEAL]
-38-