HomeMy WebLinkAbout92-179 CERTIFICATION OF MINUTES RELATING TO
$480,000 GENERAL OBLIGATION EQUIPMENT CERTIFICATES OF
• INDEBTEDNESS, SERIES 1992E
Issuer: City of Lakeville, Minnesota
Governing Body: City Council
Kind., date, time and place of meeting: A s= .cia1 meeting
held Monday, October 26, 1,992, at a~:00 o'clock P.M., at the City
Hall, Lakeville, Minnesota. 8
Members present: Duane Zaun, Patrick Harvey, Lynette Mulvihill,
Wenceslaus Ruhmann and Elizabeth Sindt
Members absent: None
Documents Attached:
Minutes of said meeting (including):
RESOLUTION NO. 92-179
RESOLUTION AUTHORIZING ISSUANCE, AWARDING SALE,
PRESCRIBING THE FORM AND DETAILS AND PROVIDING FOR THE
PAYMENT OF $480,000 GENERAL OBLIGATION EQUIPMENT
CERTIFICATES OF INDEBTEDNESS, SERIES 1992E
I, the undersigned, being the duly qualified and acting
recording officer of the public corporation issuing the bonds
referred to in the title of this certificate, certify that the
documents attached hereto, as described above, have been carefully
compared with the original records of said corporation in my legal
custody, from which they have been transcribed; that said
documents are a correct and complete transcript of the minutes of
a meeting of the governing body of said corporation, .and correct
and complete copies of all resolutions and other actions taken and
of all documents approved by the governing body at said meeting,
so far as they relate to said bonds; and that said meeting was
duly held by the governing body at the time and place and was
attended-throughout by the members indicated. above, pur-suant to
call and notice of such meeting given as required by law.
~~WITNESS my hand officially as such recording officer
this day of October, 1992.
d~
City Cler
The Clerk reported that sealed bids had been
received at or prior to the time stated in the Terms of Proposal,
and the bids having been opened, publicly read and considered,
were all found to conform to the Terms of Proposal, and the
highest and best bid of each bidder was found to be as follows:
(See next page)
•
S P R I N G ST E D 12o South sixth street
Suite 2507
PUBLIC FINANCE ADVISORS Minneapolis; MN 55402-1800
(612) .333-9177
Fax: (612) 349-5230
Home Office
85 East Seventh Place 16655 West Bluemound Road
Suite 100 Suite 290
Saint Paul, MN 55101-2143 Brookfield, WI 53005-5935
(612) 223-3000 (414) 782-8222
Fax: (612) 223.3002 Fax: (414) 782-2904
6800 College Boulevard
Suite 600
Overland Park, KS 66211-1533
(913) 345-8062
Fax: (913) 345-1770
1800K Street NW
Suite 831
Washington, DC 20006-2200
(202) 466-3344
Fax: (202) 223-1362
6480,000
CITY OF LAKEVILLE, MINNESOTA
GENERAL OBLIGATION EQUIPMENT CERTIFICATES OF INDEBTEDNESS, SERIES 1992E
AWARD: NORWEST INVESTMENT SERVICES, INC.
FBS INVESTMENT SERVICES, INC.
And Associates
- In Association Wiith -
PIPER JAFFRAY INC.-
And Associates.
SALE: October 26, 1992 Moody's Rating: A
Interest Net Interest True Inter®st
Bidder Rates Price Cost Rate
NORWEST INVESTMENT SERVICES, INC. 3.25% 1993 $477,120.00. $62,370.00 4.2218%
FBS INVESTMENT SERVICES,. INC. 3.40% 1994
Dougherty, Dawkins, Strand. & 3.70% 1995
Bigelow, Incorporated 4.20% 1996
American National Bank Saint Paul 4.40% 1997
Wachovia Bank of North Carolina, N.A.
- In Association With -
PIPER JAFFRAY INC.
Craig-Hallum, Incorporated
John G. Kinnard & Company Incorporated
These Cert'rficates are being reoffered at par.
BBI: 6.53
Average Maturity: 3.08 Years
Councilmember Ruhmann introduced the following
resolution and moved its adoption:
RESOLUTION AUTHORIZING ISSUANCE, AWARDING SALE,
PRESCRIBING THE FORM AND DETAILS AND PROVIDING FOR THE
PAYMENT OF $480,000 GENERAL OBLIGATION EQUIPMENT
CERTIFICATES. OF INDEBTEDNESS, SERIES 1992E
BE IT RESOLVED by the City Council of the City of
Lakeville, Minnesota (the Issuer), as follows.:
Section 1. }1Lthnri nation and Sale.
(a) This Council, by its Resolution No. 92-164 adopted
September 21, 1992, authorized the issuance and sale of $480,000
General Obligation Equipment Certificates of Indebtedness, Series
1992E (the Obligations) of the Issuer to finance the costs of
acquiring certain items of capital equipment as described in
Resolution No. 92-.164.
(b) Sealed bids presented in conformity with the Terms
of Proposal .have been received and considered in accordance with
Resolution No. 92-164. The most favorable bid received is that of
Norwest Investment Serv-ices, Incorporated
in .MinneapolisMinnesota (the Purchaser), to purchase
the Obligations at a price of $477,120 plus accrued interest
on all Bonds to the day of delivery and payment, on the further
terms and conditions hereinafter set forth.
{c) The sale of the Obligations is hereby awarded to
the Purchaser and the Mayor and City Clerk are hereby authorized
and directed to execute a contract on behalf of the Issuer for the
sale of the Obligations in accordance with the terms of the bid.
The good faith deposit of the Purchaser shall be retained by the
Issuer until the Obligations have been delivered, and shall be
deducted from the purchase price paid at settlement.
Section 2. Bond Terms: Regj,stration: Execution and
D 7iy ry.
2.01. IssLance of Obligations, All acts, conditions
and things which are required. by the Constitution and laws of the
State of Minnesota to be done, to exist,. to happen and to be
performed precedent to and in the valid_issuance of the
Obligations having been done, now existing, having happened and
having been performed, it is now necessary for the City Council to
establish the form and terms of the Obligations, to provide
security therefor and to issue the Obligations forthwith.
2..02. MatLrities• Interest Rates• Denominations and
Payment, The -0bligations shall be .originally dated as of December
1, 1992, shall be in denominations of $5,000 or any integral
multiple thereof,. of single maturities, shall mature on December 1
in .the years and amounts stated below, without option of prior
payment, and shall bear interest from date of issue until paid at
the annual rates set forth opposite such years and amounts, as
follows:
Year Interest Rate
1993 $ 90,000 3.25$
1994 90,000 - 3.40
1995 95,000 3.70
1996 100,000 4.20
1997 105,000 4.40
The Obligations shall be issuable only in fully registered form.
The interest thereon and, upon surrender of each Obligation at the
principal office of the Registrar described herein, the principal
amount thereof, shall be payable by check or draft issued by the
Registrar described herein.
2.03. Da s and Tn r_st Payment Dates. Each
Obligation shall bear a date of original issue of December 1,
1992. Upon the initial delivery of the Obligations pursuant to
Section 2..07, and upon any subsequent transfer or exchange
pursuant to Section 2.06, the date of authentication shall be
noted on each Obligation so delivered, exchanged or transferred.
Interest on the Obligations shall be payable on each June 1 and
December 1, commencing June 1, 1993, to the owners of record
thereof as of the close of business on the fifteenth day of the
immediately preceding month, whether or not such day zs a business
day.
2.04. edemnton. The Obligations shall not be subject
to prepayment prior to their stated maturities..
2.05. Anr~ointment of Initial Registrar. The Issuer
hereby appoints First Trust National Association
in Saint Paul Minnesota Minnesota as the initial_
bond registrar, transfer agent and paying agent tthe Registrar)
for the Obligations. The Mayor and City Clerk are authorized to
execute and deliver, on behalf. of the Issuer, a contract with the
Registrar. Upon merger or consolidation of the Registrar with
another corporation, if the resulting corporation is a bank or
trust company authorized by law to conduct such business, such
corporation shall be authorized to act as successor Registrar.
The Issuer agrees to pay the reasonable and customary charges of
the Registrar for the services performed. The Issuer reserves the
right to remove the Registrar upon thirty days' notice and upon.
the appointment of a successor Registrar, in which event the
predecessor Registrar shall deliver all cash and Obligations. in
its possession to the successor Registrar and shall deliver the
bond register to the successor Registrar.
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its possession. to the successor Registrar and shall deliver the
bond register to the successor Registrar.
2.06. ,Rggistration. .The. effect of registration and the
rights and duties of the Issuer and the Registrar with respect -
thereto shall be as follows:
(a) u~q;s~r~. The Registrar shall keep at its
principal corporate trust office a bond register in which the
Registrar shall provide for the registration of ownership of
Obligations and the registration of transfers and exchanges
of Obligations entitled to be registered, transferred or
exchanged.
(b) Tranafer of Obligations, .Upon surrender for
transfer of any Obligation duly endorsed by the registered
owner thereof or accompanied by a written instrument. of
transfer, in form satisfactory to the Registrar, duly
executed by the registered owner thereof or by an attorney
duly authorized by the registered owner in writing, the
Registrar shall authenticate and deliver, in the name of the
designated transferee or transferees, one or more new
Obligations of a like aggregate principal amount and
maturity, as requested by the transferor.. The Registrar may,.
however, close the books for registration of any transfer
after the fifteenth day of the month preceding each interest
• .payment date and until such interest payment date.
(c) Exchange of Obligations, Whenever any
Obligations are surrendered by the registered owner for
exchange the Registrar shall authenticate and deliver one or
more new Obligations of a like. aggregate principal amount and
maturity, as requested by the registered owner or the owner's
attorney in writing.
(d) can_ tla ,on. All Obligations surrendered upon
any transfer or exchange shall be promptly cancelled by the.
Registrar and thereafter disposed of as directed by the
Issuer.
(e) S rover or Unauthorized Transfer. When any
Obligation. is presented to the Registrar for transfer, the
Registrar may refuse to transfer the same until it is
satisfied that the endorsement on such Obligation or separate
instrument of transfer is valid and genuine and that the
requested transfer is legally authorized. The Registrar
shall incur no liability for the refusal, in good faith, to
make transfers which it, in .its judgment, deems improper or
unauthorized.
(f) P~,rsons Deemed Owners. The Issuer and the
Registrar may treat the person in whose name any Obligation
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is at any time registered in the bond register as the.
absolute owner of the Obligation, whether the Obligation
shall be overdue or not, for the purpose of receiving payment
of or on account of, the principal of and interest on the
Obligation and for all other purposes; and all payments made
to any registered owner or upon the owner's order shall be
valid and effectual to satisfy and discharge. the liability
upon Obligation to the. extent of the sum or sums so paid.
(g) Taxea. Fees and charges. For every transfer or
.exchange of Obligations (except for an exchange upon a
partial redemption of an Obligation), the Registrar may
impose a charge-upon the owner thereof sufficient to
reimburse the Registrar for any tax, fee or other
governmental charge required to be paid with respect to such
transfer or exchange..
(h) MLtilated, Lost Stolen or Destroyed
QjZj~gations, In case any Obligation shall become mutilated
or be destroyed, stolen or lost, the Registrar shall deliver
a new Obligation of like amount, number, maturity date and
tenor in exchange and substitution for and upon cancellation
of any such mutilated Obligation or in lieu. of and in
substitution for any Obligation destroyed, stolen or lost,
upon the payment of the reasonable expenses and charges of
the Registrar in connection therewith; and, in the case of a
• Obligation destroyed,' stolen or lost, upon filing with the
Registrar of evidence satisfactory to it that the Obligation
was. destroyed, stolen or lost, and of the ownership thereof,
and upon furnishing to the Registrar of an appropriate bond
or indemnity in form, substance and amount satisfactory to
it, in which both the Issuer and the Registrar shall be named
as obligees. All Obligations so surrendered to the Registrar
shall be cancelled by it and evidence of .such cancellation
shall be given to the Issuer. If the mutilated, destroyed,
stolen or lost Obligation has already matured or been called
for redemption in accordance with its terms it shall not be
necessary to issue a new Obligation prior to payment.
(i) Authenticatinq~gent. The Registrar is hereby
.designated authenticating agent for the Obligations, within
the meaning of Minnesota Statutes, Section 475.55,
Subdivision 1, as amended.
2.07. FxecLtion, ALthentication and Delivery, The
Obligations shall. be prepared under the direction of the Clerk and
shall be executed on behalf of the Issuer by the signatures of the
Mayor and the City Clerk,. provided that the signatures may be
printed, engraved or lithographed facsimiles of the originals. In
.case any officer whose signature or a facsimile of whose signature
shall. appear on the Obligations shall cease to be such officer
before the delivery of any Obligation, such signature or facsimile
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shall nevertheless be valid and sufficient for all purposes, the
same as if he had remained in office until delivery.
Notwithstanding such execution, no Obligation shall be valid or
obligatory for any purpose or entitled to any security or benefit
under this Resolution unless and until a certificate of
authentication on the Obligation has been duly. executed by the
manual signature of an authorized representative of the Registrar.
Certificates of authentication on different. Obligations need not
be signed by the. same representative. The executed certificate of
authentication on .each Obligation shall be conclusive evidence.
that it has been authenticated and delivered under this
Resolution. When the Obligations have been prepared, executed and
authenticated, the Clerk shall deliver them to the Purchaser upon
gayment of the purchase price in accordance with the contract of
sale heretofore executed, and the Purchaser shall not be obligated
to see to the application of the purchase price.
2.08. Form of Obligations. The Obligations shall be
prepared in substantially the following form:
_5_
[Face of the Obligations]
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF DAKOTA
CITY OF LAKEVILLE
GENERAL OBLIGATION EQUIPMENT CERTIFICATE OF INDEBTEDNESS,
SERIES 1992E
Interest Rate Maturity Date Date of Original Issue CUSIP No.
December 1, 1992
REGISTERED OWNER:
PRINCIPAL AMOUNT:
FOR VALUE RECEIVED, the City of Lakeville, County of
Dakota, Minnesota (the Issuer), acknowledges itself to be
indebted and for value received hereby promises to pay to the
registered owner specified above, or registered assigns, the
principal sum specified above on the maturity date specified
abovey without option of prior payment, and. to pay interest
thereon from the date hereof at the annual rate specified above,
payable on .June 1 and December l in each year, commencing June 1,
• 1993, to the person in whose name this Obligation is registered at
the close of business on the fifteenth day (whether or not a
business day) of the immediately preceding month. The interest
hereon and,. upon presentation and surrender hereof, the principal
hereof are payable in lawful money of the United States of .America
by check or draft by ,
in , , as Registrar and Paying..Agent (the
Registrar), or its designated successor under the Resolution.
described herein. For the prompt and full payment of such-
principal and interest as the same respectively become. due, the
full faith, credit and taxing powers of the Issuer have been and
are hereby irrevocably pledged.
Additional provisions of this Obligation are contained on
the reverse hereof and such provisions shall for all purposes have
.the same effect as though fully set forth hereon.
This Obligation shall not be valid or become obligatory
for any purpose or be entitled to any security or benefit under
the Resolution until the Certificate of Authentication .hereon
shall have been executed by the Registrar by manual signature of
one of its authorized representatives.
IN WITNESS WHEREOF, the City of Lakeville, County of
Dakota, Minnesota, by its City Council, has caused this Obligation
• to be executed on its behalf by the printed facsimile signatures
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of its Mayor and City Clerk, and has caused this Obligation to be
• dated as of .the date set forth below.
Date of Authentication:
CITY OF LAKEVILLE, MINNESOTA
Attest: (facsimile) (facsimile)
Clerk Mayor
CERTIFICATE OF AUTHENTICATION _
This is one of the Obligations .delivered pursuant to the
Resolution. mentioned within..
as Registrar
By
Authorized Representative
[Reverse. of the Obligations]
This Obligation is one of an issue in the aggregate
principal amount of 5480,000, all of like date and tenor, except
as to maturity date, interest rate and denomination issued
pursuant. to a resolution adopted by the _City Council on October
26, 1992 (the Resolution), to finance the costs of acquisition of
.capital equipment,. and is issued pursuant to and in full
conformity with the Constitution and laws of the State of
Minnesota thereunto enabling, including Minnesota Statutes,..
Section 412.301 and Chapter 475. The Obligations are issuable
only in fully registered form, in denominations of 55,000 or any
integral multiple thereof, of single .maturities.
As provided in .the Resolution and subject to•certain
limitations set forth therein, this Obligation is.transferable:
upon .the books of the Issuer at the. principal office of the _
Registrar, by the. registered owner hereof in person or by the
owner's attorney duly authorized in writing upon surrender hereof
together with a written instrument of transfer satisfactory to the
Registrar, duly executed by the registered owner or the owner's
attorney, and may also be surrendered in exchange for Obligations
of other authorized denominations. Upon such transfer or exchange.
the Issuer will cause a new Obligation or Obligations to be issued
in the name. of the transfereeor registered owner, of the.. same
aggregate principal. amount, bearing interest at the same rate and
maturing on the same date, subject to reimbursement for any tax,
fee_or governmental charge required to be paid with respect to
such transfer or exchange.
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The Obligations .have been designated as "qualified tax-
• exempt. obligations" pursuant to Section 265(b)(3) of the Internal.
Revenue Code of 1986.
The Issuer and the Registrar may deem and treat the
person in .whose name this Obligation is registered as the absolute
owner hereof, whether. this .Obligation is overdue or not, for the
purpose of receiving payment and for all other purposes, and
neither the Zssuer nor the Registrar shall be affected by any
notice to the contrary.
IT IS HEREBY CERTIFIED, RECITED, ,COVENANTED AND AGREED
that all acts, conditions and things required by the Constitution
and laws of the State of Minnesota to be done, to exist, to happen.
and to be performed preliminary to and in the issuance of this
Obligation in order to make it a valid and binding general
obligation of the Issuer in accordance with its terms,. have been'
done, do exist, have happened and have been performed as so
required; that, prior to the issuance hereof, the City Council has
levied ad valorem taxes on all taxable property in the Issuer,
which taxes will be collectible for the years and in amounts
sufficient to produce sums not less than five percent in excess of
the principal of and interest on the Obligations when-due, and has
appropriated such taxes to its Series 1992E Equipment Certificate
Sinking Fund for the payment of such principal amd interest; that
if necessary for payment of such principal and interest,
additional ad valorem taxes are required to be .levied upon all
taxable property in the Issuer, without limitation as to rate or
amount; and that the issuance of this Obligation, together with
all other indebtedness of the Issuer outstanding on the date
hereof and on the date of its actual issuance and delivery, does
not cause the indebtedness of the Issuer to exceed any
constitutional or statutory limitation of indebtedness.
Form of certificate to be printed on the reverse side of each
Obligation, following a full copy of the legal opinion:
We certify .that the. above is a full, true. and correct
copy of the legal opinion rendered by Bond Counsel: on the issue of
Obligations of the City of Lakeville, County of Dakota, Minnesota,
which includes the within Obligation, dated as of the date of
original delivery of and payment for the Obligations.
Attest: tfacsimile) (facsimile)
Clerk Mayor
The following abbreviations, when used in the inscription
on the face of this Bond, shall be construed as though they were
written out in full according to applicable laws. or regulations:
•
.g_
TEN COM as tenants UTMA as Custodian for
• in common (Gust) (Minor)
under Uniform Transfers to Minors Act
TEN ENT as tenants (State)
by entireties
JT TEN --as joint tenants
with right of
survivorship and
not as tenants in
common
.Additional abbreviations may also be used though not in the
above List.
ASSIGNMENT
For value received, the undersigned hereby sells,
assigns and. transfers unto the
.within Bond and all rights thereunder, and does hereby irrevocably
constitute and appoint attorney to
transfer the said Bond on the books kept for registration of the
within Bond,-with full power of substitution in the premises.
Dated:
• NOTICE: The assignor's signature
to this assignment must correspond
with the name as it appears upon
the face of the within Bond in
every particular, without
alteration or enlargement or any
change whatsoever.
Signature Guaranteed:
Signature(s) must be guaranteed by a commercial bank or trust
.company or by a brokerage firm having a membership in one of the
.major stock. exchanges..
PLEASE INSERT SOCIAL SECURITY OR OTHER. IDENTIFYING NUMBER OF
ASSIGNEE:
_g_
Section 3. ,SPr; ~ 1 92E Equipment -ertificate Sinking
E1lIIS1. So long as any of the Obligations are outstanding and any prin-
. cipal of or interest thereon unpaid, the Finance Director shall maintain
a .separate debt service fund on the official books and records of
the Issuer to be known as the Series 1992E Equipment Certificate
Sinking Fund (the Sinking Fund), and the principal of and interest
on the Obligations shall be payable from the Sinking Fund.. .The
Issuer irrevocably appropriates to the Sinking Fund (a) any amount.
in excess of $476,400 received from the Purchaser; (b) all taxes
levied and collected in accordance with this Resolution; and (c)
all other moneys as shall be appropriated by the City Council to
the Sinking Fund from time_to time.' If .the balance in the Sinking
Fund is at any time insufficient to pay all interest and principal
then due on all Obligations payable therefrom, the payment. shall
be made from any fund of the Issuer which is available for that
purpose, subject to reimbursement from the Sinking Fund when the
balance therein is sufficient, and the City Council covenants and
agrees that it will each year levy a sufficient amount of ad
valorem taxes to take care of any accumulated or anticipated
deficiency, which levy-is not subject to any constitutional or
statutory limitation.
Section 4. p_1_?dge of Taxing Powers. For the prompt and
full payment of the principal of and interest on the Obligations
as such payments respectively become due, the full faith, credit
and unlimited taxing powers of the Issuer shall be and are hereby
irrevocably pledged. In order to produce aggregate amounts not
less than 5o in excess of the amount needed to meet when due the
principal and interest payments on the. Obligations, ad valorem
taxes are hereby levied on all taxable property in the Issuer.
The taxes are to be levied and collected in the following years
and amounts:
:.Levy Collection
Year Year Amount
1992 1993 $113,.736
.1993 1994 110,665
1994 1995 112,702
1995 1996 114,261
1996 1997 115,101
The taxes shall be irrepealable as long as any of the Obligations
are outstanding and unpaid, provided that the Issuer reserves the
right and power to reduce the tax levies in accordance with the
provisions of Minnesota Statutes, Section 475.61..
Section 5. Defeasance. When all of the .Obligations
have been discharged as provided in this section, all pledges,
covenants and other rights granted by this Resolution to the
holders of the Obligations shall cease. The Issuer may discharge
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its obligations with respect to any Obligations which are due on
any date by depositing with the Registrar on or before that date a
sum sufficient for the payment thereof in full; or, if any
Obligation should not be paid when due, it may nevertheless be
discharged by depositing with the Registrar a sum sufficient for
the .payment thereof in full with interest accrued from the due
date to the date of such deposit. The Issuer. may also at any time
discharge ..its obligations .with respect to any Obligations, subject
to the provisions of law now or hereafter authorizing and
regulating such action, by depositing irrevocably in escrow, with
a bank qualified by law as an escrow agent for this purpose, cash
or securities which are authorized by law to be so deposited,
bearing interest payable at such time and at such rates and
maturing or callable at the holder's option on such dates as shall
be required to pay all principal and interest to become due
thereon to maturity.
Section 6. Registration of Obligations. The Clerk is
hereby authorized and directed. to file a certified. copy of this
Resolution with the County Auditor of Dakota County, together with
such additional ..information as the Auditor may require, and to
obtain from the Auditor a certificate that the Obligations have
been duly entered upon the Auditor's bond register and the taxes
required by law for the payment of the Obligations have. been
levied.
Section 7. Authentication of Transcript. The officers
• of the Issuer and the Auditor are hereby authorized and directed
to prepare and furnish to the Purchaser and to Dorsey & Whitney,
Bond Counsel, certified copies of all proceedings and records.
relating to the Obligations and such other affidavits,
certificates and information as may be required to show the facts
.relating to the legality and marketability of the Obligations, as
the same appear from the books and records in their custody and
control or as otherwise known to them, and all such certified
copies, affidavits and certificates, including any heretofore
furnished, shall be deemed representations of the Issuer as to the
correctness of all statements contained therein.
Section 8. Official. Statement, The Official Statement
relating to the Obligations, dated October 13, 1992, prepared and
delivered on behalf of the Issuer by Springsted Incorporated, is
hereby approved, and the officers of the Lssuer are hereby
authorized and directed to execute such certificates as may. be
appropriate concerning the accuracy, completeness and sufficiency.
thereof.
Section 9. Tax Covenant. The Issuer covenants and
agrees with the registered owners from time to time of the
Obligations herein authorized, that it will not take, or permit to
be taken by any of its officers, employee s. or agents, any action
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which would cause the interest payable on the Obligations to
become subject to taxation under the Internal Revenue Code of 1986
(the Code) and regulations issued thereunder, in effect at the
time of such action, and that it will take, or it will cause its
officers, employees or agents to take, all affirmative actions..
within its powers which may be necessary to insure that such
interest will not become subject to taxation under the Code and
applicable Treasury Regulations, as presently existing or as
hereafter amended and made applicable to the Obligations. The
Issuer represents and covenants that the proceeds of the
Obligations will be used to finance the acquisition and
installation of items of equipment to be owned and maintained by
the Issuer and used in its municipal operations. So long as the
Obligations are outstanding, the Issuer will not enter into any
lease, use agreement or other agreement or contract respecting
said equipment, or the security for the Obligations, which would
cause the Obligations to be considered "private activity bonds" or
"private loan bonds" pursuant to the provisions of Section 141 of
the Code.
Section 10. Arbitragr R
bat-r For purposes of .complying
with Section 148(f) of the Code and applicable regulations
relating to arbitrage rebate, the Issuer will (i) prepare or have
prepared a calculation of the rebatable arbitrage at the times and
in a manner consistent with the provisions of Section 148 and
..applicable regulations, (ii) pay to the United States Department
of the Treasury not later than 60 days after the end of each
• installment .computation date, an amount equal to at least 900 of
the rebatable arbitrage calculated as of the date of such
computation date (less any amount thereof previously paid) and not
later than 60 days after the final computation date, an amount
equal to 100 of the rebatable arbitrage (less any amount thereof
previously paid),. {iii). make each required payment to the Internal
Revenue Service Center, Philadelphia, Pennsylvania 19255, On or
before the date such .payment is due, accompanied by Internal
Revenue Service Form 8038-T (or in such other manner as may
hereinafter be specified in applicable regulations of the Internal
Revenue. Service),.: and (iv) retainrecords of the calculations
required by this Section 10 .until six years. after the final
computation date.
Section ll.2iialified Tax-Exempt Ob l,'gations. The City
Council hereby designates the Obligations as "qualified tax-exempt-
obligations" for purposes of Section 265{b)(3) of the Code
relating to the disallowance of interest expense for financia l
institutions, and hereby finds. that the reasonably anticipated
amount of qualified tax-exempt obligations (within the meaning of
Section 265(b)(3) of the Code) which will be issued by the Issuer
and all subordinate entities during calendar year 1992 does not
exceed $10,000,000.
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A
• Mayor
Attest:
City Clerk
The motion for the adoption of the foregoing resolution
was duly seconded by Councilmember Harvey and, upon
vote being. taken thereon, the following voted in favor thereof:
Zaun, Harvey, Mulvihill, Ruhmann, Sindt
and the following voted against the same: None
whereupon the resolution was declared duly passed and adopted.
•
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