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HomeMy WebLinkAboutOrd 3950 06/21/1988ORDINANCE NO. 3950 AN ORDINANCE AUTHORIZING THE ISSUANCE OF $350,000 SPECIAL SERVICE AREA NUMBER SIX UNLIMITED TAX BONDS OF THE VILLAGE OF MOUNT PROSPECT, ILLINOIS PASSED AND APPROVED BY THE PRESIDENT AND BOARD OF TRUSTEES T~E 21st DAY OF June , 1988. Published an pamphlet form by authority of the corporate authorities of the Village of Mount Prospect, Illinois, the 22nd day of June , 1988. TATE OF ILLINOIS ) ) SS. COUNTY OF COOK ) I, Stanley T. Kusper, Jr., Count~ ~lerk of Coqk ~ounty, Illinois, do hereby certify that on the ~ day of~ , 1988, there was filed in my office Ordinance No. ~9~O~ ~// of the Village of Mount Prospect, Illinois and entitled: - ORDINANCE AUTHORIZING THE ISSUANCE OF $350,000 SPECIAL SERVICE AREA NUMBER SIX UNLIMITED TAX BONDS OF THE VILLAGE OF MOUNT PROSPECT, ILLINOIS which ordinance levies taxes within the Village of Mount Prospect Special Service Area Number 6 in the Village of Mount Prospect for the years 1988 to 2002, inclusive, for the purpose of paying prin- cipal of and interest on the bonds described in said ordinance; and a copy of said ordinance has been deposited in the official files and records of my office. .WITNE$~ my official,signature and the seal of Cook County this ~ day of ~z~ , 1988. County C~rk of C~ok C~nty, Illinofs (SEAL) LG/be 5/31/88 ORDINANCE NO. 3950 ORDINANCE AUTHORIZING THE ISSUANCE OF $350,000 SPECIAL SERVICE AREA NUMBER SIX UNLIMITED TAX BONDS OF THE VILLAGE OF MOUNT PROSPECT, ILLINOIS BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, ILLINOIS, AS FOLLOWS: Section 1. Authority and Purpose. This ordinance is adopted pursuant to Section 6 of Article VII of the Illinois Con- stitution of 1970 and Chapter 120, Section 1301 et seq. of the Illinois Revised Statutes for the purpose of financing the improvement of roadways, ~torm sewers and sidewalks within the Village of Mount Prospect Special Service Area Number 6 (the "Special Service Area") established by Ordinance No. 3766, adopted by the President and Board of Trustees of the Village of Mount Prospect on April 8, 1987, and entitled: "An Ordinance Establish- ing Village of Mount Prospect Special Service Area Number 6". The foregoing improvements, all as more particularly described in said Ordinance No. 3766, are each hereby authorized to be made or undertaken by the Village of Mount Prospect, Illinois. Section 2. Authorization and Terms of Bonds. To meet part of the estimated cost of the improvements described in Section I of this ordinance, including capitalized interest to December 1, 1988 and the costs of issuance of the bonds herein authorized, there is hereby appropriated the sum of $350,000. For the purpose of financing said appropriation, special service area bonds of the Village shall be issued and sold in an aggregate principal amount of $350,000, shall be designated "Special Service Area Number Six Unlimited Tax Bonds", and shall be issuable in the denominations of $5,000 or any integral multiple thereof. Bonds ~hAll be numbered consecutively from 1 upwards in order of their issuanc~ and may bear such identifying numbers or letters as shall be useful to facilitate the registration, transfer and exchange of bonds. Unless otherwise determined in the order to authenticate the bonds, each bond shall be dated as of the interest payment date next preceding the date of issuance thereof, except that (a) if such date of issuance shall be prior to the first interest pay- ment date, said bond shall be dated as of July 1, 1988, (b) if such date of issuance shall be an interest payment date, said bond shall be dated as of such interest payment date, or (c) if inter- est due on said bond shall not have been paid in full, then not- withstanding any of the foregoing provisions, said bond shall be dated as of the date to which interest has been paid in full on said bond. The bonds shall mature on December i in each year shown in the following table in the respective principal amount set forth opposite each such year and the bonds maturing in each such year shall bear interest at the respective rate per annum set forth opposite such year: Principal Interest Principal Interest Year Amount Rate Year Amount Rate 1989 $10,000 6.00% 1998 1990 10,000 6.25 1999 1991 10,000 6.40 2000 1992 10,000 6.60 2001 1993 15,000 6.75 2002 1994 15,000 6.90 2003 1995 15,000 7.00 2004 1996 15,000 7.00 2005 1997 20,000 7.10 $20 000 25 000 25 000 30.000 30 000 30 000 35.000 35.000 7.20% 7.30 7.40 7.50 7.60 7.60 7.70 8.00 -2- Each bond shall bear interest from its date, computed on the basis of a 360 day year consisting of twelve 30 day months and ~ayable in lawful money of the United States of America on December l, 1988 and semiannually thereafter on each June 1 and December 1 at the rates per annum herein determined. The prin- cipal of the bonds shall be payable in lawful money of the United States of America upon presentation and surrender thereof at the principal corporate trust office of American National Bank and Trust Company of Chicago, in the City of Chicago, Illinois, which is hereby appointed as bond registrar and paying agent for the bonds. Interest on the bonds shall be payable on each interest payment date to the registered owners of record thereof appearing on the registration books maintained by the Village for such pur- pose at the principal corporate trust office of the bond regis- trar, as of the close of business on the 15th day of the calendar month next preceding the applicable interest payment date. Inter- est on the bond~ shall be pai~ by check or draft mailed to such registered owner~ a~ their addresses appearing on the registration books. The bonds maturing on or after December 1, 1999 shall be subject to redemption prior to maturity at the option of the Vil- lage and upon notice as herein provided, in inverse order of matu- rity and by lot within a single maturity, on December 1, 1998 and on any interest payment date thereafter, at a redemption price equal to the principal amount thereof to be redeemed. -3- In the event of the redemption of less than all the bonds of like maturity, the aggregate principal amount thereof to ~ redeemed shall be $5,000 or an integral multiple thereof and the bond registrar shall assign to each bond of such maturity a distinctive number for each $5,000 principal amount of such bond and shall select by lot from the numbers so assigned as many num- bers as, at $5,000 for each number, shall equal the principal amount of such bonds to be redeemed. The bonds to be redeemed shall be the bonds to which were assigned numbers so selected; provided that only so much of the principal amount of each bond shall be redeemed as shall equal $5,000 for each number assigned to it an~ so selected. Notice of the redemption of bonds shall be mailed not less than 30 days nor more than 60 days prior to the date fixed for such redemption to the registered owners of bonds to be redeemed at their last addresses appearing on said registration books. The bonds or portions thereof specified in said notice shall become due and payable at the applicable redemption price on the redemption date therein designated, and if, on the redemption date, moneys for payment of the redemption price of all the bonds or portions thereof to be redeemed, together with interest to the redemption date, shall be available for such payment on said date, and if notice of redemption shall have been mailed as aforesaid (and notwithstanding any defect therein or the lack of actual r~c~ipt thereof by any registered owner) then from and after the redemption date interest on such bonds or portions thereof shall cease to accrue and become payable. If there shall be drawn for -4- redemption less than all of a bond, the Village shall execute and the bond registrar shall authenticate and deliver, upon the sur- render of such bond, without charge to the owner thereof, for the u~r~deemed balance of the bond so surrendered, bonds of like matu- rity and of the denomination of $5,000 or any integral multiple thereof. The bond registrar shall not be required to transfer or exchange any bond after notice of the redemption of all or a por- tion thereof ha~ been mailed. The bond registrar shall not be required to transfer or exchange any bond during a period of 15 days next preceding the mailing of a notice of redemption which could designate for redemption all or a portion of such bond. Section 3. Sale and Delivery. The sale of the bonds to First National Bank of Mount Prospect, as purchaser, at a price of $350,000 and accrued interest from their date to the date of delivery and payment therefor, is hereby ratified and confirmed. The official statement prepared with respect to the bonds is hereby approved. The Village President, Village Clerk and other officials of the Village are hereby authorized and directed to do and per- form, or cause to be done or performed for or on behalf of the Village each and every thing necessary for the issuance of the bonds, including the proper execution and delivery of the bonds and the official statement upon payment of the full purchase price Of the bonds. Section 4. Execution and Authentication. Each bond shall be executed in the name of the Village by the manual or -5- authorized facsimile signature of its Village President and the corporate seal of the Village, or a facsimile thereof, shall be thereunto affixed or otherwise reproduced thereon and attested by the manual or authorized facsimile signature of its Village Clerk. In case any officer whose signature, or a facsimile of whose signature, shall appear on any bond shall cease to hold such office before the issuance of the bond, such bond shall neverthe- less be valid and sufficient for all purposes, the same as if the person whose signature, or a facsimile thereof, appears on such bond had not ceased to hold such office. Any bond may be signed, sealed or attested on behalf of the Village by any person who, on the date of such act, shall hold the proper office, notwithstand- ing that at the date of such bond such person may not have held such office. No recourse shall be had for the payment of any bonds against any officer who executes the bonds. Each bond shall bear thereon a certificate of authenti- cation executed manually by the bond registrar. No bond shall be entitled to any right or benefit under this ordinance or shall be valid or obligatory of any purpose until such certificate of authentication shall have been duly executed by the bond regis- trar. Section 5. shall be negotiable, Transfer, Exchange and Registry. The bonds subject to the provisions for registration of transfer contained herein. Each bond shall be transferable only upon the registration books maintained by the Village for that purpose at the principal corporate trust office of the bond regis- trar; by the registered owner thereof in person or by his attorney -6- duly authorized in writing, upon surrender thereof together with a written instrument of transfer satisfactory to the bond registrar and duly executed by the registered owner or his duly authorized attorney. Upon the surrender for transfer of any such bond, the Village shall execute and the bond registrar shall authenticate and deliver a new bond or bonds registered in the name of the transferee, of the same aggregate principal amount, maturity and interest rate as the surrendered bond. Bonds, upon surrender thereof ~t the principal corporate trust office of the bond regis- trar, with a written instrument Satisfactory to the bond regis- trar, duly executed by the registered owner or his attorney duly authorized in writing, may be exchanged for an equal aggregate principal amount of bonds of the same maturity and interest rate and of the denomlnatlons of $5,000 or any integral multiple there- of. Fo~ ~ery such exshange or registration of transfer of bonds, the Village or the bond registrar may make a charge suffi- cient to reimburse it for any tax, fee or other governmental charge required to be paid with respect to such exchange or trans- fer, which sum or sums shall be paid by the person requesting such exchange or transfer as a condition precedent to the exercise of the privilege of making such exchange or transfer. No other charge shall be made for the ~rivilege of making such transfer or exchange. The provisions of the Illinois Bond Replacement Act shall govern the replacement of lost, destroyed or defaced bonds. The Village and the bond registrar may deem and treat the person in whose name any bond shall be registered upon the -7- registration books as the absolute owner of such bond, whether such bond shall be overdue or not, for the purpose of receiving p~yment of, or on account of, the principal of or interest thereon and ~or ~11 other purposes whatsoever, and all such payments so made to any such registered owner or upon his order shall be valid and effectual to satisfy and discharge the liability upon such bond to the extent of the sum or sums so paid, and neither the Village nor the bond registrar shall be affected by any notice to the contrary. Section 6. Bond Registrar. The Village covenants that it shall at all times retain a bond registrar with respect to the bonds, that it Bill ~aintain at the designated office of such bond registrar a place where bonds may be presented for payment and registration of transfer or e~change and that it shall require that the bond registrar maintain proper registration books and perform the other duties and obligations imposed upon it by this ordinance in a manner consistent with the standards, customs and practices of th~ municipal securities business. The bond registrar shall signify its acceptance of the duties and obligations imposed upon it by this ordinance by executing the certificate of authentication on any bond, and by such execution the bond registrar shall be deemed to have certi- fied to the Village that it has all requisite power to accept, and has accepted such duties and obligations not only with respect to the bond so authenticated but with respect to all the bonds. The bond registrar is the agent of the Village and shall not be liable in connection with the performance of its duties except for its -8- own negligence or default. The bond registrar shall, however, be responsible for any representation in its certificate of authenti- cation on the bonds. The Village may remove the bond registrar at any time. In case at any time the bond registrar shall resign or shall be removed or shall become incapable of acting, or shall be adjudged a bankrupt or insolvent, or if a receiver, liquidator or conserva- tor of the bond registrar, or of its property, shall be appointed, or if any public officer shall take charge or control of the bond registrar or of its property or affairs, the Village covenants and agrees that it will thereupon appoint a successor bond registrar. The Village shall mail notice of any such appointment made by it to each registered owner of bonds within twenty days after such appointment. Any bond registrar appointed under the provisions of this Section shall be a bank, trust company or national banking association maintaining its principal corporate trust office in the State of Illinois, the City of St. Louis, Missouri or the Borough of Manhattan, City and State of New York. Section 7. Ad Valorem Tax Bonds. The bonds shall be obligations of the Village payable solely from ad valorem taxes levied without limitation as to rate or amount upon all the taxable property in the Special Service Area. Section 8. Form of Bonds. The bonds shall be issued as fully registered bonds and shall be in substantially the following form, the blanks to be appropriately completed when the bonds are printed: -9- United States of America State of Illinois County of Cook VILLAGE OF MOUNT PROSPECT SPECIAL SERVICE AREA NUMBER SIX UNLIMITED TAX BOND INTEREST RATE MATURITY DATE The VILLAGE OF MOUNT PROSPECT, a municipal corporation and a home rule unit of the State of Illinois situate in the County of Cook, acknowledges itself indebted and for value received hereby promises to pay, solely from the source herein described, to registered owner hereof, of the or registered assigns, the principal sum Dollars on the maturity date specified above, and to pay interest on such principal sum from the date hereof at the interest rate per annum specified above, computed on the basis of a 360 day year consisting of twelve 30 day months and payable in lawful money of th~ United States of America on December l, 1988 and semiannually thereafter on June 1 and December 1 in each year until the principal sum shall have been paid, by check or draft mailed to the registered owner of record hereof as of the 15th day of the calendar month next preceding such interest payment date, at the address of such owner appearing on the registration books maintained by the Village for,such pur- pose at the prin6ipal corporate trust office of American National Bank and Trust Company of Chicago, in the city of Chicago, -10- Illinois, as bond registrar or its successor (the "Bond Regis- trar''). This bond, as to principal when due, will be payable in l~Qful ~oney of the United States of America upon presentation and surrender of this bond at the principal corporate trust office of the Bond Registrar. This bond is one of a series of bonds issued in the aggregate principal amount of $350,000, which are all of like tenor except as to date, maturity, option of redemption and rate of interest and which are authorized and issued under and pursuant to Section 6 of Article VII of the Illinois Constitution of 1970, and Chapter 120, Section 1301 et seq. of the Illinois Revised Stat~te~ and under and in acc6rdance with an ordinance adopted by the President a~d Board of Trustees of the Village on June 21, 1988 and entitled: "Ordinance Authorizing the Issuance of $350,000 Special Service Area Number Six Unlimited Tax Bonds of the Village of Mount Prospect, Illinois." All of th~ bonds of ~aid series are payable solely from ad valorem taxes to be levled without limitation as to rate or amount upon the taxable property in that area of the Village designated as the "Village of Mount Prospect Special Service Area 6" pursuant to an ordinance adopted by the President and Board of Trustees of the Village on April 8, 1987. The bonds of such ~e~i~s maturing on or after December l, 1999 are subject to redemption prior to maturity at the option of the Village and upon notice as herein provided, in inverse order of maturity and by lot within a single maturity, on December 1, 1998 and on any interest payment date thereafter, at a -11- redemption price equal to the principal amount thereof to be redeemed. Notice of the redemption of bonds will be mailed not l~ss than 30 days nor more than 60 days prior to the date fixed for such redemption to the registered owners of bonds to be redeemed at their last addresses appearing on such registration books. The bonds or portions thereof specified in said notice shall become due and payable at the applicable redemption price on the redemption date therein designated, and if, on the redemption date, moneys for payment of the redemption price of all the bonds or portions thereof to be redeemed, together with interest to the redemption date, shall be available for such payment on said date, and if notice of redemption shall have been mailed as aforesaid (and notwithstanding any defect therein or the lack of actual receipt thereof by any reglstered owner) then from and after the redemption date interest on such bonds or portions thereof shall cease to accrue and become payable. This bond is transferable only upon such registration books by the registered owner hereof in person, or by his attorney duly authorized in writing, upon surrender hereof at the principal corporate trust office of the Bond Registrar together with a writ- ten instrument of transfer satisfactory to the Bond Registrar duly executed by the registered owner or by his duly authorized attor- ney, and thereupon a new registered bond or bonds, in the author- ized denominations of $5,000 or any integral multiple thereof and of the same aggregate principal amount, maturity and interest rate as this bond shall be issued to the transferee in exchange there- for. In like manner, this bond may be exchanged for an equal -12- aggregate principal amount of bonds of the same maturity and interest rate and of any of such authorized denominations. The village or the Bond Registrar may make a charge sufficient to relmburse it for any tax, fee or other governmental charge required to be paid with respect to the transfer or exchange of this bond. No other charge shall be made for the privilege of making such transfer or exchange. The Village and the Bond Regis- trar may treat and consider the person in whose name this bond is registered as the absolute owner hereof for the purpose of receiv- ing payment of, or on account of, the principal and interest due hereon and for all other purposes whatsoever. This bond shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been duly executed by the Bond Registrar. It is hereby certified, recited and declared that all acts, conditions and things required to be done, exist and be performed precedent to and in the issuance of this bond in order to make it a legal, valid and binding obligation of the Village have been done, exist and have been performed in regular and due time, form and manner as required by law, and that the series of bonds of which this bond is one, together with all other indebted- ness of the Village is within every debt or other limit prescribed by law. -13- IN WITNESS WHEREOF, the Village of Mount Prospect has caused this bond to be executed in its name and on its behalf by th~ manual or facsimile signature of its Village President, and its corporate seal, or a facsimile thereof, to be hereunto affixed or otherwise reproduced hereon and attested by the manual or fac- simile signature of its Village Clerk. Dated: VILLAGE OF MOUNT PROSPECT Village President Attest: CERTIFICATE OF AUTHENTICATION This bond is one of the Special Service Area Number Six Unlim- ited Tax Bonds, described in the within mentioned Ordinance. American National Bank and Trust Company of Chicago, as Bond Registrar Village Clerk By Authorized Officer -14- ASSIGNMENT For value received the undersigned sells, assigns and ransfers unto the within bond and hereby irrevocably constitutes and appoints attorney to transfer the said bond on the books kept for registration thereof, with full power of substitution in the premises. Dated Signature Guarantee: -15- Section 9. Levy and Extension of Taxes. For the purpose of providing the money required to pay the interest on the bonds when and as the same falls due and to pay and discharge the principal thereof as the same shall mature, there is hereby levied upon all the taxable property in the Special Service Area, in each year while any of the bonds shall be outstanding, a direct annual tax sufficient for that purpose in addition to all other taxes, as follows: Tax Levy Year A Tax Sufficient to Produce 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Interest $46,142.71 34,912.50 34,287.50 33,647.50 37,987.50 36,975.00 35,940.00 34,890.00 38,840.80 37,420.00 40,980.00 39,155.00 42,305.00 40,055.00 37,775.00 40,495.00 37,800.00 principal coming due at any time when there shall be insufficient funds on hand to pay the same shall be paid promptly when due from current funds on hand in advance of the collection of the taxes herein levied; and when said taxes shall have been collected, reimbursement shall be made to the said funds in the amounts thus advanced. As soon as this ordinance becomes effective, a copy thereof certified by the Village Clerk, which certificate shall recite that this ordinance has been duly adopted, shall be filed -16- with the County Clerk of Cook County, Illinois, who is hereby directed to ascertain the rate per cent required to produce the aggregate tax hereinbefore provided to be levied in the years 1988 to 2004, inclusive, and to extend the same for collection on the tax books in connection with other taxes levied in said years, in and by the Village for general corporate purposes of the Village, and in said years such annual tax shall be levied and collected with respect to taxable property within the Special Service Area, in like manner as taxes for general corporate purposes for said years are levied and collected and, when collected, such taxes shall be used solely for the purpose of paying the principal of and interest on the bonds herein authorized as the same become due and payable. Section 10. Debt S~rvioe Fund. Moneys derived from taxes herein levied are appropriated and set aside for the sole purpose of paying principal of and interest on the bonds when and as the same come due. All of such moneys, and all other moneys to be used for the payment of the principal of and interest on the bonds, shall be deposited in the Special Service Area 1988 Debt Service Fund (the "1988 Debt Service Fund") which is hereby estab- lished as a special fund of the Village and shall be administered as a bona fide debt service fund under the Internal Revenue Code of 1986. A portion of the proceeds of sale of the bonds equal to the interest due on the bonds on December 1, 1988, shall be depos- ited in the 1988 Debt Service Fund. Section 11. Bond Proceeds Fund. All of the proceeds of sale of the bonds (exclusive of the amount deposited in the 1988 -17- Debt Service Fund pursuant to Section 10) shall be deposited in the Special Service Area 1988 Bond Proceeds Fund (the "1988 Bond P~o~ed~ Fund") which is hereby established as a special fund of the Village. Moneys in the 1988 Bond Proceeds Fund shall be used for the purposes specified in Section 1 of this ordinance and for the payment of costs of issuance of the bonds, but may hereafter be reappropriated and used for other purposes. Before any such reappropriation shall be made, there shall be filed with the Vil- lage Clerk an opinion of a nationally recognized bond counsel to the effect that such reappropriation will not adversely affect the exemption fr6m federal income taxation of interest on the bonds. Section 12~ Rebate Fund. The Village hereby estab- lishes a spe6ial fund, designated as the Special Service Area 1988 Rebate Fund (th~ "1988 Rebate Fund"). In the event that the Vil- lage shall invest moneys in the 1988 Bond Proceeds Fund or the 1988 Debt Service Fund in any investments which generate income that must be rebated or paid to the United States of America pur- suant to Section 148(f) of the Internal Revenue Code of 1986, such income shall be deposited annually, within 10 days after the anni- versary date of the date of issuance and delivery of the bonds, in the 1988 Rebate Fund. Moneys in the 1988 Rebate Fund shall be applied to pay such sums as are required to be paid to the United States of America pursuant to Section 148(f) of the Internal Reve- nue Code of 1986 and are hereby appropriated and set aside for such purpose. Moneys in the 1988 Rebate Fund may be reappropri- ated and used for other purposes. No such reappropriation and use shall relieve the Village of its obligation to make payments to -18- the United States of America as required by Section 148(f) of the Internal Revenue Code of 1986. Section 13. Investment Regulatlons. No investment shall be made of any moneys in the 1988 Debt Service Fund, the 1988 Bond Proceeds Fund or the 1988 Rebate Fund except in accor- dance with the tax covenants set forth in Section 14 of this ordi- nance. Except as required by Section 12 of this ordinance, all income derived ~rom such investments in respect of moneys or securities in any Fund shall ~ credited in each case to the Fund in which such moneys or securities are held. Any moneys in any Fund that are subject to investment yield restrictions m~y be invested in United States Treasury Secu- rities, State a~d Local Government Series, pursuant to the regula- tions of th~ United States Treasury Department, Bureau of Public Debt. The Finance Director and agents designated by him are hereby authorized to submit, on behalf of the Village, subscrip- tions f6r such Unlte~d States Treasury Securities and to request red6mption of such United states Treasury Securities. Section 14. Tax Covenants. The Village shall not take, or omit to take, any action lawful and within its power to take, which action or omission would cause interest on any bond to become subject to federal income taxes in addition to federal income taxes to whi6h interest on such bond is subject on the date of original issuance thereof. T~h~ Village shall not hermit any of the proceeds of the bond~, Or any fa6ilities financed with such proceeds, to be used in any manner that ~ould cause any bond to constitute a "private -19- activity bond" within the meaning of Section 141 of the Internal Revenue Code of 1986. The Village shall not permit any of the proceeds of the bonds or other moneys to be invested in any manner that would cause any bond to constitute an "arbitrage bond" within the mean- ing of Section 148 of the Internal Revenue Code of 1986. The Village shall comply with the provisions of Section 148(f) of the Internal Revenue Code of 1986 relating to the rebate of certain investment earnings at periodic intervals to the United States of Ameri6a; provided, however, that compliance with such provisions shall not be required to the extent that there shall have been filed with the Village Clerk an opinion of nationally recognized bond counsel to the effect that such compliance is not necessary to preserve the exemption from federal income taxes of interest on the bonds. Section 15. Bank Qualified Bonds. Pursuant to Section 265(b)(3) (B) (ii) of the Internal Revenue Code of 1986, the Village hereby designates the bonds as "qualified tax-exempt obligations" as defined in Section 265(b) (3) of the Internal Revenue Code of 1986. The Village represents that the reasonably anticipated amount of tax-exempt obligations that will be issued by the Vil- lage and all subordinate entities of the Village during 1988 does not exceed $10,000,000. The Village covenants that it will not designate and issue more than $10,000,000 aggregate principal amount of tax-exempt obligations in 1988. For purposes of the two preceding sentences, the term "tax-exempt obligations" includes 'qualified 501(c) (3) bonds" (~s defined in the Section 145 of the -20- Internal Revenue Code of 1986) but does not include other "private activity bonds" (as defined in Section 141 of the Internal Revenue ~ode of 1986). Beotion 16. Ordinance to Constitute a Contract. The provisions of this ordinance shall constitute a contract between the Village and the registered owners of the bonds. Any pledge made in this ordinance and the provisions, covenants and agree- ments herein set forth to be performed by or on behalf of the Village shall be for the equal benefit, protection and security of the owners of any and all of the bonds. All of the bonds, regard- less of the time or times of their issuance, shall be of equal rank without preference, priority or distinction of any of the bonds over any 6ther thereof except as expressly provided in or pursuant to this ordinance. This ordinance shall constitute full authority for the issuance of the bonds and to the extent that the provisions of this ordinanc~ ~onflict with the provisions of any other ordinance or resolution of the Village, the provisions of this ordinance shall control. If any section, paragraph or provi- sion of this ordinance shall be held to be invalid or unenforce- able for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any of the re- maining provisions of this ordinance. Section 17. Publication and Notice. The Village Clerk is hereby authorized and directed to publish this ordinance in pamphlet form and to file copies thereof for public inspection in her office. The Village Clerk is hereby authorized and directed to cause notice of adoption of this ordinance to be published in -21- he "Mount Prospect Herald," a newspaper of general circulation in the Village. Said notice shall be in substantially the following form: "Public Notice Notice is hereby given that on June 21, 1988, the Presi- dent and Board of Trustees of the Village of Mount Prospect, Illinois adopted an ordinance entitled: "Ordinance Authorizing the Issuance of~$350,000 Special Service Area Number Six Unlimited Tax Bonds of the Village of Mount Prospect, Illinois," and that copies of said ordinance are on file and available for public inspection at the office of the Village Clerk of the Village of Mount Prospect. By /s/ Carol A. Fields Village Clerk" Se~tlon ~S. Effective Date. This ordinance shall become effectiv~ in the manner provided by law. Adopted this 21st d~y of June, 1988 by roll call vote as follows: Ayes: ARTHUR, FARLEY, FLOROS, MURAUSKIS, VAN GEEM WATTENBERG Nays: NONE (SEAL) Approved: Villag~ President -22-