HomeMy WebLinkAboutOrd 4780 03/05/1996 ORDINANCE NO. 4780
AN ORDINANCE AUTHORIZING THE ISSUANCE OF $2,400,000 GENERAL
OBLIGATION BONDS, SERIES 1996A AND $750,000 GENERAL OBLIGATION
BONDS, SERIES 1996B, OF THE VILLAGE OF MOUNT PROSPECT, ILLINOIS .
Passed and approved by
the President and Board of Trustees
the 5th day of March ,1996
Published in pamphlet form
by authority of the corporate
authorities of the Village of
Mount Prospect, Illinois, the
5th day of March ,1996.
ORDINANCE NO. 4780
ORDINANCE AUTHORIZING THE ISSUANCE OF $2,400,000 GENERAL
OBLIGATION BONDS, SERIES 1996A AND $750,000 GENERAL
OBLIGATION BONDS, SERIES 1996B, 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 Constitution of 1970 for the purpose of financing
(1) flood control projects in the Village, including the See-Gwun/Milburn and the
See-Gwun/Golf areas of the Village (the "Flood Control Projects") at an estimated cost
of $1,700,000; (2) the following capital improvements (collectively, the "1996
General Improvements"): the replacement o:f the "Opticom" traffic signalization
system, at an estimated cost of $200,000; the improvement of Meias Park, at an
estimated cost of $300,000; and the acquisition of "Geo-Base" system software, at
an estimated cost of $200,000 and (3) the following Redevelopment Projects {the
"Redevelopment Projects") in the Village's District No. 1 Tax Increment
Redevelopment Project Area: downtown streetscape improvements; the facade and
buildout program; the senior center parking lot and the Central Avenue/Northwest
Highway improvements, at an aggregate estimated cost of 9750,000. The foregoing
improvements or purposes are each hereby authorized to be made or undertaken by
the Village of Mount Prospect, Illinois.
Section 2. Authorization and Terms of Series A Bonds. To meet part of the
estimated cost of the Flood Control Projects described in Section I of this ordinance,
there is hereby appropriated the sum of 91,700,000. To meet part of the estimated
cost of the 1996 General Improvements described in Section 1 of this ordinance,
there is hereby appropriated the sum bf 9700,000. Said appropriations are inclusive
of amounts required for the payment Of costs of issuance of the bonds authorized by
this Section.
For the purpose of financing said appropriations, general obligation bonds of the
Village shall be issued and sold in an aggregate principal amount of 92,400,000 and
shall be designated "General Obligation Bonds, Series 1996A" (the "Series A Bonds").
The Series A Bonds shall be issuable in the denominations of 95,000 or any integral
multiple thereof and may bear such identifying"~iumbers or letters as shall be useful
to facilitate the registration, transfer and exchange of Series A Bonds. Unless
otherwise determined in the order to authenticate the Series A Bonds, each Series A
Bond delivered upon the original issuanCe of the Series A Bonds shall be dated as of
March 1, 1996. Each Series A Bond thereafter issued upon any transfer or exchange
of Series A Bonds shall be dated so that no gain or loss of interest shall result from
such transfer or exchange. The Series A Bonds shall mature on December I in each
year shown in the following table in the respective principal amount set forth opposite
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each such year and the Series A 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
1997 $270,000 4.10% 2002 $170,000 4.20%
1998 280,000 4.10 2003 180,000 4.20
i 999 290,000 4.10 2004 190,000 4.20
2000 305,000 4.10 2005 195,000 4.30
2001 315,000 4 1/8 2006 205,000 4.30
Each Series A Bond shall bear' interest from its date, computed on the basis of
a 360 day year consisting of twelve 30 day months and payable in lawful money of
the United States of America on June 1, 1996 and semiannually thereafter on each
June I and December 1 at the rates per annum herein determined. The principal of
the Series A 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 Series
A Bonds. Interest on the Series A 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 purpose at the principal corporate trust office of the
bond registrar, as of the close of business on the 15th day of the calendar month next
preceding the applicable interest payment date. Interest on the Series A Bonds shall
be paid by wire transfer pursuant to an agreement between the Village and the
registered owner, or otherwise by check or draft mailed to such registered owners at
their addresses appearing on the registration bOoks.
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The Series A Bonds maturing on or after December 1, 2003 shall be subject to
redemption prior to maturity at the option of the Village and upon notice as herein
provided, in such principal amounts and from such maturities as determined by the
Village and by lot within a single maturity, on December 1, 2002 and on any date
thereafter, at a redemption price equal to the principal amount thereof to be
redeemed.
In the event of the redemption of less than all the Series A Bonds of like
maturity, the aggregate principal amount thereof to be redeemed shall be $5,000 or
an integral multiple thereof and the bond registrar, shall assign to each Series A Bond
of such maturity a distinctive number for each $ 5,000 principal amount of such Series
A Bond and shall select by lot from the numbers so assigned as many numbers as, at
$5,000 for each number, shall equal the principal amount of such Series A Bonds to
be redeemed. The Series A Bond~ to be redeemed shall be the Series A Bonds to
which were assigned numbers so selected; provided that only so much of the principal
amount of each Series A Bond shall be redeemed as shall equal $5,000 for each
number assigned to it and so selected.
Notice of the redemption of Series A Bonds shall be mailed not less than 30
days nor more than 60 days prior to the da~'e fixed for such redemption to the
registered owners of Series A Bonds to be redeemed at their last addresses appearing
on said registration books. The Series A Bonds or portions thereof specified in said
notice shall become due and payable at the applicable redemption price on the
redemption date therein designated, an~l if, on the redemption date, moneys for
payment of the redemption price of all the Series A Bonds or portions thereof to be
redeemed, together with interest to the redemption date, shall be available for such
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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
registered owner) then from and after the redemption date interest on such Series A
Bonds or portions thereof shall cease to accrue and become payable. If there shall be
drawn for redemption less than all of a Series A Bond, the Village shall execute and
the bond registrar shall authenticate and deliver, upon the surrender of such Series A
Bond, without charge to the owner thereof, in exchange for the unredeemed balance
of the Series A Bond so surrendered, Series A Bonds of like maturity and of the
denomination of $5,000 or any integral multiple thereof.
The bond registrar shall not be required to transfer or exchange any Series A
Bond after notice of the redemption of all or a portion thereof has been mailed. The
bond registrar shall not be required to transfer or exchange any series A 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 Series A Bond.
Section 3. Authorization and Terms of Series B Bonds. To meet part of the
estimated cost of the Redevelopment Projects described in Section I of this
ordinance, there is hereby appropriated the sum of $750,000. Said appropriation is
inclusive of amounts required for'the payment of costs of issuance of the bonds
authorized by this Section.
For the purpose of financing said appropriation, general obligation bonds of the
Village shall be issued and sold in an aggregate principal amount of $750,000 and
shall be designated "General Obligation Bonds, Series 1996B" (the "Series B Bonds").
Series B Bonds shall be issuable in the denominations of $5,000 or any integral
multiple thereof and may bear such identifying numbers or letters as shall be useful
to facilitate the registration, transfer and exchange of Series B Bonds. Unless
otherwise determined in the order to authenticate the Series B Bonds, each Series B
Bond delivered upon the original issuance of the Series B Bonds shall be dated as of
March 1, 1996. Each Series B Bond thereafter issued upon any transfer or exchange
of Series B Bonds shall be dated so that no gain or loss of interest shall result from
such transfer or exchange. The Series B Bonds shall mature (without option of prior
redemption) on December 1 in each year shown in the following table in the
respective pr'incipal amount set forth opposite each such year and the Series B 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 Bate Year Amount Rate
1997 $100,000 4.10% 2000 $125,000 4.10%
1998 100,000 4.10 2001 150,000 4 1/8
1999 125,000 4.10 2002 150,000 4.20
Each Series B Bond shall bear interest from its date, computed on the basis of
a 360 day year consisting of twelve 30 day months and payable in lawful money of
the United States of America on June 1, 1996 and semiannually thereafter on each
June I and December I at the rates per annum herein determined. The principal of
the Series B 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 Series
B Bonds. Interest on the Series B 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 purpose at the principal corporate trust office of the
bond registrar, as of the close of business on the 15th day of the calendar month next
preceding the applicable interest payment date. Interest on the Series B Bonds shall
be paid by wire transfer pursuant to an agreement between the Viii:age and the
registered owners, or otherwise by check or draft mailed to such registered owners
at their addresses appearing on the registration books.
Section 4. Sale and Delivery. The Series A Bonds and the Series B Bonds
(herein collectively called the "1996 Bonds") are hereby sold to Harris Trust and
Savings Bank, as purchaser, at a price of $3,127,559.55 and accrued interest from
their date to the date of delivery and payment therefor. The Official Statement
prepared with respect to the 1996 Bonds is approved and "deemed final" as of its
date for purposes of Securities and Exchange Commission Rule 15(c)2-12
promulgated under the Securities Act of 1934.
The Village President, Village Clerk and other officials of the Village are hereby
authorized and directed to do and perform, or cause to be done or performed for or
on behalf of the Village each and every thing necessary for the issuance of the 1996
Bonds, including the proper execution and delivery of the 1996 Bonds.
Section 5. Execution and Authentication. Each 1996 Bond shall be executed
in the name of the Village by the manual or 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 1996 Bond shall cease to hold such office before the issuance of the
1996 Bond, such 1996 Bond shall nevertheless be valid and sufficient for all
purposes, the same as if the person whose signature, or a facsimile thereof, appears
on such 1996 Bond had not ceased to hold such office. Any 1996 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, notwithstanding that at the date of such 1996
Bond such person may not have held such office. No recourse shall be had for the
payment of any 1996 Bonds against any officer who executes the 1996 Bonds.
Each 1996 Bond shall bear thereon a certificate of authentication executed
manually by the bond registrar. No 1996 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 registrar.
Section 6. Transfer, Exchange and ~e~istry. The 1996 I~onds shall be
negotiable, subject to the provisions for registration of transfer contained herein. Each
1996 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 registrar, bY
the registered owner thereof in person or by his attorney 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 1996 Bond, the Village shall
execute and the bond registrar shall authenticate and deliver a new 1996 Bond or
Bonds registered in the name of the transferee, of the same aggregate principal
amount, series, maturity and interest rate as the surrendered 1996 Bond. 1996
Bonds, upon surrender thereof at the principal corporate trust office of the bond
registrar, with a written instrument'satisfactory to the bond registrar, duly executed
by the registered owner or his attorney duly authorized in writing, may be exchanged
for an equal aggregate principal amount of 1996 Bonds of the same series, maturity
and interest rate and of the denominations of $5,000 or any integral multiple thereof.
For every such exchange or registration of transfer of 1996 Bonds, the Village
or the bond registrar may make a charge sufficient to reimburse it for any tax, fee or
other governmental charge required to be paid with respect to such exchange or
transfer, which sum or sums shall be paid by the person requesting such exchange or
transfer as a condition precedent to the exercise of the pr!vilege of making such
exchange or transfer. No other charge shall be made for the privilege of making such
transfer or exchange. The provisions of the Illinois Bond Replacement Act shall
govern the replacement of lost, destroyed or defaced 1996 Bonds.
The Village and the bond registrar may deem and treat the person in whose
name any 1996 Bond shall be registered upon the registration books as the absolute
owner of such 1996 Bond, whether Such 1996 Bond shall be overdue or not, for the
purpose of receiving payment of, or on account of, the principal of or interest thereon
and for all 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 1996 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 7. Bond Registrar. T~'Village covenants that it shall at all times retain
a bond registrar with respect to'the 1996 Bonds, that it will maintain at the
designated office of such bond registrar a place where 1996 Bonds may be presented
for payment and registration of transfer or exchange and that it shall require that the
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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 the 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 1996 Bond, and by such execution the bond registrar shall be deemed to have
certified to the Village that it has al! requisit, e' power to accept, and has accepted such
duties and obligations not only with respect to the 1996 Bond so authenticated but
with respect to all the 1996 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 own
negligence or default. The bond registrar shall, however, be resp(~nsible for any
representation in its certificate of authentication on the 1996 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 conservator 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 1996 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 Manhat~an,~:ity and State
of New York.
Section 8. General Obligations. The full faith and credit of the Village are
hereby irrevocably pledged to the punctual payment of the principal of and interest on
the 1996 Bonds. The 1996 Bonds shall be direct and general obligations of the
Village, and the Village shall be obligated to levy ad valorem taxes upon all the taxable
property in the Village for the payment of the 1996 Bonds and the interest thereon,
without limitation as to rate or amount.
Section 9. Form of Series A Bonds. The Series A Bonds shall be issued as fully
registered bonds and shall be in substantially the following form, the blanks to be
appropriately completed when the Series A Bonds are printed:
No.
United States of America
State of Illinois
County of Cook
VILLAGE OF MOUNT PROSPECT
GENERAL OBLIGATION BOND,
SERIE,S 1996A :
INTEREST RATE MATURITY DATE DATED DATE CUSIP
· % December 1, March 1, 1996
REGISTERED OWNER: Cede & Co.
PRINCIPAL AMOUNT:
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 to the registered owner of this bond,
or registered assigns, the principal amount specified above on the maturity date
specified above, and to pay interest on such principal amount from the date hereof at
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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 the United States
of America on June 1, 1996 and semiannually thereafter on the first days of June and
December in each year until the principal amount shall have been paid, by wire
transfer pursuant to an agreement between the Village and the registered owner, or
otherwise by check or draft mailed to the registered owner of record hereof as of the
1§th 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 purpose at the principal corporate trust office of American National Bank and
Trust Company of Chicago, in the City of Chicago, Illinois, as bond registrar or its
successor (the "Bond Registrar"). This bond, as to principal when due, will be payable
in lawful money of the United States of America upon presentation and surrender of
this bond at the principal corporate ~Ust office of the Bond Registrar. The full faith
and credit of the Village are irrev0cabl~ pledged for the punctual payment of the
principal of and interest on this bond according to its terms.
This bond is one of a series of bonds issued in the aggregate principal amount
of 92,400,000, which are authorized and issued under and pursuant to Section 6 of
Article VII of the Illinois Constitution of 1970 and under and in accordance with an
ordinance adopted by the President and Board of Trustees of the Village on March 5,
1996 and entitled: "Ordinance Authorizing the Issuance of 92,400,000 General
Obligation Bonds, Series 1996A and 9750,000 General Obligation Bonds, Series
1996B, of the Village of Mount Prospect, Illinois."
The bonds of such series maturing on or after December 1, 2003 are subject
to redemption prior to maturity at the option of the Village and upon notice as herein
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provided, in such principal amounts and from such maturities as determined by the
Village and by lot within a single maturity, on December 1, 2002 and on any date
thereafter, at a redemption price equal to the principal amount thereof to be
redeemed.
Notice of the redemption of bondS will 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 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 registered owner) then from and after the
redemption date interest on such bonds or portions thereof shall cease ko accrue and
become payable.
This bond is transferable only u'Pon such registration books by the registered
owner hereof in person, or by his att0rn~y duly authorized in writing, upon surrender
hereof at the principal corporate ~rust office of the Bond Registrar together with a
written instrument of transfer satisfactory to the Bond Registrar duly executed by the
registered owner or by his duly authorized attorney, and thereupon a new registered
bond or bonds, in the authorized denominations of 85,000 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 therefor. In like manner, this bond
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may be exchanged for an equal 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 reimburse 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 Registrar may treat and consider
the person in whose name this bond is registered as the absolute owner hereof for the
purpose of receiving 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 a~d 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 indebtedness of the Village is within every debt or other limit prescribed by
law.
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IN WITNESS WHEREOF, the Village of Mount Prospect has caused this bond
to be executed in its name and on its behalf by the 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 facsimile
signature of its Village Clerk.
Dated: March 1, 1996
VILLAGE OF MOUNT PROSPECT
Village President
... Attest:
Village Clerk
CERTIFICATE OF AUTHENTICATION
This bond is one of the General
Obligation Bonds, Series 1996A,
described in the within mentioned
Ordinance.
AMERICAN NATIONAL BANK AND
TRUST COMPANY OF CHICAGO,
as Bond Registrar
By
Authorized Signer
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ASSIGNMENT
For value received the undersigned sells, assigns and transfers 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:
Section 10. Form of Series B Bonds. The Series B Bonds shall be issued as
fully registered bonds and shall be in substantially the following form, the blanks to
be appropriately completed when the Series B Bonds are printed:
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United States of America
State of Illinois
County of Cook
VILLAGE OF MOUNT PROSPECT
GENERAL OBLIGATION BOND,
SERIES 1996B
INTEREST RATE MATURITY DATE DATED DATE CUSIP
% December 1, March 1, 1996
REGISTERED OWNER: Cede & Co.
PRINCIPAL AMOUNT:
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 to the registered owner of this bond,
or registered assigns, the principal amount specified above on the maturiW date
specified above, and to pay interest on such principal amount from the date hereof at
the interest rate per annum specified above, comouted on the basis of a 360 day year
consisting of twelve 30 day months and payable in lawful money of the United States
of America on June 1,1996 and semiannually thereafter on the first days of June and
December in each year until the principal amount shall have been paid, by wire
transfer pursuant to an agreement between the Village and the registered owner, or
otherwise 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 purpose at the principal corporate trust office of American National Bank and
Trust Company of Chicago, in the City of Chicago, Illinois, as bond registrar or its
successor (the "Bond Registrar"). This bond, asto principal when due, will be payable
in lawful money of the United States of America upon presentation and surrender of
this bond at the principal corporate trust office of the Bond Registrar. The full faith
and credit of the Village are irrevocably pledged for the punctual payment of the
principal of and interest on this bond according to its terms.
This bond is one of a series of bonds issued in the aggregate principal amount
of $750,000, which are authorized and issued under and pursuant to Section 6 of
Article VII of the Illinois Constitution of 1970 and under and in accordance with an
ordinance adopted by the President and Board of Trustees of the Village on March 5,
1996 and entitled: "Ordinance Authorizing the' Issuance of $2,400,000 General
Obligation Bonds, Series 1996A and $750,000 General Obligation Bonds, Series
1996B, of the Village of Mount Prospect, illinois.- This bond is issued in accordance
with the provisions of the Tax Increment Allocation Redevelopment Act, 65 Illinois
Compiled Statutes 5/11-74.4, for the purpose of financing redevelopment project
costs.
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
written instrument of transfer satisfactory to the Bond Registrar duly executed by the
registered owner or by his duly authorized attorney, and thereupon a new registered
bond or bonds, in the authorized denominations of $5,000 or any integral multiple
thereof and of the same aggregate p~incipal amount, maturity and interest rate as this
bond shall be issued to the transferee in exchange therefor. In like manner, this bond
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may be exchanged for an equal 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 reimburse 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 Registrar may treat and consider
the person in whose name this bond is registered as the absolute owner hereof for the
purpose of receiving 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 indebtedness of the Villag~ is within every debt or other limit prescribed by
law.
IN WITNESS WHEREOF, the Village of Mount Prospect has caused this bond
to be executed in its name and on its behalf 'by the 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 facsimile
signature of its Village Clerk.
Dated: March 1, 1996
VILLAGE OF MOUNT PROSPECT
Village President
Attest:
Village Clerk
CERTIFICATE OF AUTHENTICATION
This bond is one of the General
Obligation Bonds, Series 1996B,
described in the within mentioned
Ordinance.
AMERICAN NATIONAL BANK AND
TRUST COMPANY OF CHICAGO,
as Bond Registrar
By.
. Authorized Signer
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ASSIGNMENT
For value received the undersigned sells, assigns and transfers 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:
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Section 11. Levy and Extension of Taxes. For the purpose of providing the
money required to pay the interest on the 1996 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 Village, in each year while any of the
1996 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
1996 $500 756.25
1997 495 586.25
1998 515 006.25
1999 512 991.25
2000 530 361.25
2001 ..... 366 180.00
2002 212 740.00
2003 215 180.00
2004 212 200.00
2005 213 815.00
Interest or 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 with the CounW 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 1996 to 2005, inclusive, and to extend the same
for collection on the tax books in 'connection with other taxes levied in said years, in
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and by the Village for general corporate purposes of the Village, and in said years such
annual tax shall be levied and collected 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 1996
Bonds herein authorized as the same become due and payable.
Section 12. Redevelopment Project Costs. The costs of the Redevelopment
Projects constitute Redevelopment Project Costs as defined in the Tax Increment
Allocation Redevelopment Act, 65 Illinois Compiled Statutes 5/11-74.4 (the
"Redevelopment Act") and as described in the Redevelopment Plan of the Village
approved by an ordinance adopted by the President and Board of Trustees of the
Village on August 20, 1985 and entitled: "An Ordinance Approving the Tax
Increment Redevelopment Plan and Redevelopment Project for the District No. 1
Redevelopment Project Area in the Village of Mount Prospect, Illinois." Pursuant to
the Redevelopment Act, the proceeds of sale of the Series B Bonds are hereby
pledged to pay such Redevelopment Project Costs.
Section 13. Debt Service Fund. Money~' derived from taxes herein levied are
appropriated and set aside for the sole purpose of paying principal of and interest on
the 1996 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 1996
Bonds, shall be deposited in the "1996 Debt Service Fund" (the "1996 Debt Service
Fund") which is hereby established 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. The Village may establish separate accounts within the 1996 Debt Service
Fund for each series of the 1996 Bonds. All accrued interest received upon the
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issuance of the 1996 Bonds shall be deposited in the 1996 Debt Service Fund.
Concurrently with the issuance of the 1996 Bonds, the Village shall deposit in the
1996 Debt Service Fund, an amount of money which, together with such accrued
interest, shall be sufficient to provide for the payment of the interest due on the 1996
Bonds on June 1, 1996 and December 1, 1996.
Section 14. Bond Proceeds Fund. All of the proceeds of sale of the Series A
Bonds (exclusive of accrued interest to be deposited in the 1996 Debt Service Fund)
shall be deposited in the "1996 Bond Proceeds Fund", which is hereby established as
a special fund of the Village. Series A Bond proceeds and the investment earnings
thereon shall be used for financing the Flood Control Projects and the 1996 General
Improvements as specified in Section I of this'ordinance and for the payment of costs
of issuance of the Series A Bonds, but may hereafter be reappropriated and used for
other purposes.
All of the proceeds of sale of the' Series B Bonds (exclusive of accrued interest
to be deposited in the 1996 Debt S~vice Fund) shall be deposited in the 1996 Bond
Proceeds Fund. Series B Bond proceeds and'the investment earnings thereon shall be
used for the payment of Redevelopment Project Costs as specified in Section 1 of this
ordinance and for the payment of costs of issuance of the Series B Bonds, but may
hereafter be reappropriated and used for other purposes.
Before any reappropriation shall be made as permitted by this Section, there
shall be filed with the Village Clerk an opinion ~;[ ~'nationally recog~i~'e~'bond counsel
to the effect that such reappropriation is permitted under Illinois law and will not
adversely affect the exclusion from gross income for federal income tax purposes of
interest on the 1996 Bonds.
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Section 15. Tax Allocation Fund. The Special Tax Allocation Fund for District
No. 1 Tax Increment Redevelopment Project Area (the "Tax Allocation Fund")
established pursuant to an ordinance adopted by the President and Board of Trustees
of the Village on August 20, 1985 and entitled "An Ordinance Adopting Tax
Increment Financing for the District No. I Tax increment Redevelopment Project Area
in the Village of Mount Prospect, Illinois" shall be maintained and administered by the
Village in accordance with the provisions of the Redevelopment Act.
Moneys held in the Tax Allocation Fund and the taxes and other moneys to be
deposited therein pursuant to the Act are hereby pledged for the payment of
Redevelopment Project Costs and as security for the payment of the Series B Bonds
on a parity with the prior pledge of such moneys as security for the payment of the
Village's General Obligation Bonds, Series 1987C; General Obligation Bonds, Series
1987D; General Obligation Bonds~ Series 1991B; General Obligation Bonds, Series
1992B; General Obligation Bonds, Series 1993A; and General Obligation Bonds, Series
1994B. Nothing herein contained shall restrict the power of the Village to pledge
such moneys and taxes for the benefit and security of the holders of additional bonds
issued pursuant to the Act; to subordinate existing pledges of such moneys or to alter
the use and distribution of moneys in the Tax Allocation Fund to the extent such
alteration shall be made in furtherance of the purposes of the Act and the
Redevelopment Plan. Moneys held'i~, the Tax Allocation Fund that are to be used for
the payment of the principal of and interest on the Series B Bonds may be deposited
in the 1996 Debt Service Fund, and upon such deposit such moneys shall be used
solely for the payment of such principal and interest.
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Section 16. Investment Regulations. No investment shall be made of any
moneys in the 1996 Debt Service Fund or the 1996 Bond Proceeds Fund except in
accordance with the tax covenants set forth in Section 17 of this ordinance. All
income derived from such investments in respect of moneys or securities in any Fund
shall be 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 may
be invested in United States Treasury Securities, State and Local Government Series,
pursuant to the regulations of the United States Treasury Department, Bureau of
Public Debt, or in any tax-exempt bond that is not an "investment property" within
the meaning of Section 148(b)(2) of the Internal Revenue Code of 1986. The Finance
Director of the Village and agents designated by him are hereby authorized to submit,
on behalf of the Village, subscriptions for such United States Treasury Securities and
to request redemption of such United States Treasury Securities.
Section 17. Tax Covenants. The Village shall not take, or omit to take, any
action lawful and within its power t0 '~ake, which action or omission would cause
interest on any 1996 Bond to become subject to federal income taxes in addition to
federal income taxes to which interest on such 1996 Bond is subject on the date of
original issuance thereof.
The Village shall not permit any of the proceeds of the 1996 Bonds, or any
facilities financed with such proceeds, to be used in any manner that WOuld cause any
1996 Bond to constitute a "private 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 1996 Bonds or other
moneys to be invested in any manner that would cause any 1996 Bond to constitute
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an "arbitrage bond" within the meaning of Section 148 of the Internal Revenue Code
of 1986 or a "hedge bond" within the meaning of Section 149(g) 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 America.
Section 18. Bank Qualified Designation. The Village hereby designates the
1996 Bonds as "qualified tax-exempt obligations" as defined in Section 265(b)(3)(B)
of the Internal Revenue Code of 1986. The Village represents that the reasonably
anticipated amount of tax-exempt obligations that are required to be taken into
account for the purpose of Section 265(b)(3)(C) of the Code and will be issued by or
on behalf of the Village and all subordinate entities of the Village during 1996 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
1996. For purposes of the two preceding sentences, the term "tax-exempt
obligations" includes "qualified 501 (c)(3) bonds" (as defined in the Section 145 of the
Internal Revenue Code of 1986) but does not include other "private activity bonds"
(as defined in Section 141 of the Internal Revenue Code of 1986).
Section 19. Continuing Disclosure. For the benefit of the beneficial owners of
the 1996 Bonds, the Village covenants and agrees to provide an annual report
containing certain financial information and operating data relating to the Village and
to provide notices of the occurrence ~ certain enumerated events, if material.
The annual report shall be filed with each Nationally Recognized Municipal
Securities Information Repository and with the Illinois state information depository, if
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any, within 180 days after the close of the Village's fiscal year. The information to
be contained in the annual report shall consist of the annual audited financial
statement of the Village and such additional information as noted .in the Official
Statement under the caption "Continuing Disclosure." Each annual audited financial
statement will conform to generally accepted accounting principles applicable to
governmental units and will be prepared in accordance with standards of the
Governmental Accounting Standards .Board. If the audited financial statement is not
available, then an unaudited financial statement shall be included in the annual report
and the audited financial statement shall be filed within 30 days after it becomes
available.
The Village also covenants and agrees, for the benefit of the beneficial owners
of the 1996 Bonds, to provide timely notice to the Municipal Securities Rulemaking
Board and to the Illinois state information dep~3sitory, if any, of any failure of the
Village to file any such annual report within the 180 day period and of the occurrence
of any of the following events with respect to the 1996 Bonds, if material: (1)
principal and interest payment delinqUencies; (2) non-payment related defaults; (3)
unscheduled draws on debt service reserves reflecting financial difficulties; (4)
unscheduled draws on credit enhancements reflecting financial difficulties; (5)
substitution of credit or liquidity providers, or their failure to perform; (6) adverse tax
opinions or events affecting the tax-exempt status of the 1996 Bonds; (7)
modifications to rights of bondholders; (8) 1996 Bond calls; (9) defeasances; (10)
release, substitution or sale of property securing repayment of the 1996 Bonds; and
(11) rating changes.
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It is found and determined that the Village has agreed to the undertakings
contained in this Section in order to assist participating underwriters of the 1996
Bonds and brokers, dealers and municipal securities dealers in complying with
Securities and Exchange Commission Rule 15c2-12(b)(5) promulgated under the
Securities Exchange Act of 1934. The chief financial officer of the Village is
authorized and directed to do and perform, or cause to be done or performed, for or
on behalf of the Village, each and every thing necessary to accomplish the
undertakings of the Village contained in this Section for so long as Rule 15c2-12(b)(5)
is applicable to the 1996 Bonds and the Village remains an "obligated person" under
the Rule with respect to the 1996 Bonds.
The undertakings contained in this Section may be amended by the Village upon
a change in circumstances that arises fr~m a change in legal requirements, change in
law, or change in the identity, natUre or Status of the obligated person, or type of
business conducted, provided that (a) the undertaking, as amended, would have
complied with the requirements of' Rule 15(c)2-12(b)(5) at the time of the primary
offering, after taking into account any amendments or interpretations of the Rule, as
well as any change in circumstances and (b) in the opinion of nationally recognized
bond counsel selected by the Village, the amendment does not materially impair the
interests of the beneficial owners of the 1996 Bonds.
Section :~0. Defeasance and Payment of 1996 Bonds. (A) If the Village shall
pay or cause to be paid to the registered'~wners of the 1996 Bonds, the principal and
interest due or to become due thereon, at the times and in the manner stipulated
therein and in this ordinance, then the pledge of taxes, securities and funds hereby
pledged and the covenants, agreements and other obligations of the Village to the
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registered owners and the beneficial owners of the 1996 Bonds shall be discharged
and satisfied.
(B) Any 1996 Bonds or interest installments appertaining thereto, whether
at or prior to the maturity or the redemption date of such 1996 Bonds, shall be
deemed to have been paid within the meaning of paragraph (A) of this Section if (1)
in case any such 1996 Bonds are to be redeemed prior to the maturity thereof, there
shall have been taken all action nece~s.~..ry to call. such 1996 Bonds for redemption and
notice of such redemption shall have been duly given or provision shall have been
made for the giving of such notice, and (2) there shall have been deposited in trust
with a bank, trust company or national banking association acting as fiduciary for
such purpose either (i) moneys in an amount which shall be sufficient, or (ii) "Federal
Obligations" as defined in paragraph (C) of this Section, the principal of and the
interest on which when due will prOvide moneys which, together with any moneys on
deposit with such fiduciary at the same time for such purpose, shall be sufficient, to
pay when due the principal of and interest due and to become due on said 1996
Bonds on and prior to the applicable redemption date or maturity date thereof.
(C) As used in this-Section, the term "Federal Obligations" means (i) non-
callable, direct obligations of the United States of America, (ii) non-callable and non-
prepayable, direct obligations of any'agency of the United States of America, which
are unconditionally guaranteed by the United States of America as to full and timely
payment of principal and interest, (iii) non-callable, non-prepayable coupons or interest
installments from the securities described in clause (i) or clause (ii) of {his paragraph,
which are stripped pursuant to programs of the Department of the Treasury of the
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United States of America, or (iv) coupons or interest installments stripped from bonds
of the Resolution Funding Corporation.
Section 21. Book-Entry System. In order to provide for the initial issuance of
the 1996 Bonds in a form that provides for a system of book-entry only transfers, the
ownership of one fully registered bond for each maturity of each series of the 1996
Bonds, in the aggregate principal amount of such maturity, shall be registered in the
name of Cede & Co., as a nominee of The Depository Trust Company, New York,
New York, as securities depository for the 1996 Bonds. The Finance Director is
authorized to execute and deliver on behalf of the Village such letters to, or
agreements with, the securities depository as shall be necessary to effectuate such
book-entry system.
The Village may remove the securities depository at any time. In case at any
time the securities depository shall 'resign or shall be removed or shall become
incapable of acting, then the Village s~all appoint a successor securities depository to
provide a system of book-entry only transfers for the 1996 Bonds, by written notice
to the predecessor securities depository directing it to notify its participants (those
persons for whom the securities depository holds securities) of the appointment of a
successor securities depository.
The Village may terminate the system of book-entry only transfers for the 1996
Bonds at any time, b.y written notice to the securities depository directing it to notify
its participants of the availability of bond certificates. In such event, the Village shall
issue and the bond registrar shall authenticate, register and deliver to the beneficial
owners of the 1996 Bonds, bond certificates in replacement of such beneficial
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owners' beneficial interests in the 1996 Bonds, all as shown in the records maintained
by the securities depository.
Section 22. Ordinance to Constitute a Contract. The provisions of this
ordinance shall constitute a contract between the Village and the registered owners
of the 1996 Bonds. Any pledge made in this ordinance and the provisions, covenants
and agreements 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
1996 Bonds. All of the 1996 Bonds, regardless of the time or times of their issuance,
shall be of equal rank without preference, priority or distinction of any of the 1996
Bonds over any other thereof except as expressly provided in or pursuant to this
ordinance. This ordinance shall constitute full authority for the issuance of the 1996
Bonds and to the extent that the provisions of this ordinance confliCt with the
provisions of any other ordinance or resolution of the Village, the provisions of this
ordinance shall control. If any section, paragraph or provision of this ordinance shall
be held to be invalid or unenforceable for any re~(~n, the invalidity or unenforceability
of such section, paragraph or provision shall not affect any of the remaining provisions
of this ordinance.
Section 23. Publication. 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.
Section 24. Effective Date. This ordinance shall become effective upon its
passage, approval and publication in pamphlet form in the manner provided by law.
CERTIFICATE
I, Carol A. Fields, Village Clerk of the Village of Mount Prospect, Illinois, hereby
certify that the foregoing ordinance entitled: "Ordinance Authorizing the Issuance of
$2,400,000 General Obligation Bonds, Series 1996A and $750,000 General
Obligation Bonds, Series 1996B, of the Village of Mount Prospec{, Illinois," is a true
copy of an original ordinance which was duly adopted by the recorded affirmative
votes of a majority of the members of the President and Board of Trustees of the
Village at a meeting thereof, which was duly called and held at 8:00 13.m. on March
§, 1996, in the Board Room at the Public Safety Building, and at which a quorum was
present and acting throughout, and that said copy has been compared by me with the
original ordinance signed by the Village President on March 5, 1996, and thereafter
published in pamphlet form on March 6, 1996, and recorded in the Ordinance Book
of the Village and that it is a correct transcript thereof and of the whole of said
ordinance, and that said ordinance has not been altered, amended, repealed or
revoked, but is in full force and effect.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of
the Village this ~'~/ day of March, 1996.
Village Clerk
(SEAL)
mDOCUMENT #: CHGO05A (58516-00019-5) 225771.2:DATE:O3/O5/56/TIME:12:44.
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Adopted this 5th day of March, 1996, by roll call vote as follows:
Ayes: Clowes, Corcoran, Skowron, Wilks, Farley
Abstain: Hendricks, Hoefert
Nays: None
L-~Village Presid'ent' Y ~
Published in pamphlet form: March 6, 1996
(SEAL)
Village Clerk
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