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HomeMy WebLinkAboutOrd 3782 05/19/1987ORDINANCE NO. 3782 AN ORDINANCE AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION BONDS, SERIES 1987A (CAPITAL APPRECIATION CITIZEN BONDS) OF THE VILLAGE OF MOUNT PROSPECT PASSED AND APPROVED BY THE PRESIDENT AND BOARD OF TRUSTEES THE 19th DAY OF May , 1987. Published in pamphlet form by authority of the corporate authorities of the Village of Mount Prospect, Illinois, the 20th day of May , 1987. ORDINANCE NO. 3782 ' ORDINANCE AuTHoRIZING THE ISSUANCE OF GENERA~ OBLIGATION BONDS, SERIES 1987A (CAPITAL APPRECIATION CITIZEN BONDS) TEE VILLAGE OF MOUNT PROSPECT, ILLINOIS OF 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 the acquisition and construction of a new public works facility to be located at Melas Park in the Village, including the acquisition of land as the site of the facility and the acquisition and installation of furnishings and equipment. The foregoing improvements or pur- poses 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 or purposes de- scribed in Section 1 of this ordinance and the costs of issuance of the bonds herein authorized, there is hereby appropriated the sum of $334,270.52. For the purpose of financing said appropria- tion, general obligation bonds of the Village are hereby authorized to be issued in an aggregate principal amount of not exceeding $334,270.52. The Bonds shall be designated "General Obligation Bonds, Series 1987A (Capital Appreciation Citizen Bonds)" and shall be issuable in maturity amounts of $1,000 or any integral multiple thereof. Bonds shall be numbered consecu- tively from 1 upwards in order of their issuance and may bear such identifying numbers or letters as shall be useful to facilitate the registration, transfer and exchange of bonds. Each bond shall be dated as of the date of its initial deliv- ery. Interest on the bonds shall be compounded semi-annually on January 1 and July 1 of each year, commencing July 1, 1987. The bonds shall mature on January 1 in each year shown in the follow- ing table in the respective maturity amount set forth opposite each such year and the bonds maturing in each such year shall have an original yield to maturity set forth opposite such year: Year Maturity Amount Original Yield toMaturity 2000 $125,000 6.80% 2001 47,000 6.90 2002 121,000 7.00 2003 112,000' 7.10 2004 66,000 7.15 2005 67,000 7.20 2006 151,000 7.25 2007 405,000 7.30 The maturity amount of the bonds shall be payable in lawful money of the United States of America upon presentation and surrender thereof at the office of the Village Treasurer, who is hereby appointed as bond registrar and paying agent for the bonds. -2- The bonds maturing on January 1, 2000 shall have an initial principal amount per $1,000 maturity amoun~ of $431.08 and the accreted value of each such bond as of each January 1 and July 1, shall be as follows: Date Accreted Value July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January 1987 1, 1988 1988 1, 1989 1989 1, 1990 1990 1, 1991 1991 1, 1992 1992 1, 1993 1993 1, 1994 1994 1, 1995 1995 1, 1996 1996 t, 1997 1997 1, 1998 1998 1, 1999 ~999 1, 2000 $ 433.52 448.26 463.50 479.26 495.55 512.40 529.82 547.83 566.46 585.72 605 63 626 22 647 51 669 53 692 29 715 83 740 17 765 34 791.36 818.27 846.09 874.86 904.61 935.37 967.17 1,000.00 -3- The bonds maturing on January 1, 2001 shall have an initial principal amount per $1,000 maturity amount Of $397.94 and the accreted value of each such bond as of each January 1 and July 1, shall be as follows: Date Accreted Value July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January 1987 1 1988 1988 1 1989 1989 1 1990 1990 1 1991 1991 1 1992 1992 1 1993 1993 1 1994 1994 1 1995 1995 1 1996 1996 1 1997 1997 1, 1998 1998 1, 1999 1999 1, 2000 2000 1, 2001 $ 400.23 414.04 428.32 443.10 458.39 474.20 490.56 507.48 524.99 543.10 561.84 581.22 601.27 622.01 643.47 665.67 688.64 712.40 736.98 762.41 788.71 815.92 844.07 873.19 903.32 934.48 966.72 1,000.00 -4- The bonds maturing on January 1, 2002 shall have an initial, principal amount per $1,000 maturity amoun~ ~f $366.63 and the accreted value of each such bond as of each January 1 and July 1, shall be as follows: Date Accreted Value July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January 1987 1, 1988 1988 1, 1989 1989 1, 1990 1990 1, 1991 1991 1, 1992 1992 1, 1993 1993 1, 1994 1994 1, 1995 1995 1, 1996 1996 1, 1997 1997 1, 1998 1998 1, 1999 1999 1, 2000 2000 1, 2001 2001 1, 2002 368 77 381 68 395 04 408 87 423 18 437 99 453.32 469.19 485.61 502.61 520.20 538.41 557.25 576.75 596.94 617.83 639.45 661.83 684.99 708.96 733.77 759.45 786.03 813.54 842.01 871.48 901.98 933.55 966.22 1,000.00 -5- The bonds maturing on January 1, 2003 shall have an initial principal amount per $1,000 maturity amoun~ of $337.14 and the accreted value of each such bond as of each January 1 and July 1, shall be as follows: Date Accreted Value July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January 1987 1 1988 1988 1 1989 1989 1 1990 1990 1 1991 1991 1 1992 1992 1 1993 1993 1, 1994 1994 1, 1995 1995 1, 1996 1996 1, 1997 1997 1, 1998 1998 1, 1999 1999 1, 2000 2000 1, 2001 2001 1, 2002 2002 t, 2003 $ 339.13 351.17 363.64 376.55 389.92 403.76 418.09 432.93 448.30 464.21 480.69 497.75 515.42 533.72 552.67 572.29 592.61 613.65 635.43 657.99 681.35 705.54 730.59 756.53 783.39 811.20 840.00 869.82 900.70 932.67 965.78 1,000.00 -6- The bonds maturing on January 1, 2004 shall have an initial principal amount per $1,000 maturity amount ~f $311.92 and the accreted value of each such bond as of each January 1 and July 1, shall be as follows: Date Accreted Value July 1, 1987 $ 313.78 January 1, 1988 325.00 July 1, 1988 336.62 January 1, 1989 348.65 July 1, 1989 361.11 January 1, 1990 374.02 July 1, 1990 387.39 January 1, 1991 401.24 July 1, 1991 415.58 January 1, 1992 430.44 July 1, 1992 445.83 January t, 1993 461.77 July 1, 1993 478.28 January 1, 1994 495.38 July 1, 1994 513.09 January 1, 1995 53L. 43 July 1, 1995 550.43 January 1, 1996 570.11 July 1, 1996 590.49 January 1, 1997 611.60 July 1, 1997 633.46 January 1, 1998 656.11 July 1, 1998 679.57 January 1, 1999 703.86 July 1, 1999 729.02 January 1, 2000 755.08 July 1, 2000 782.07 January 1, 2001 810.03 July 1, 2001 838.99 January 1, 2002 868.98 July 1, 2002 900.05 January 1, 2003 932.23 July 1, 2003 965.56 January 1, 2004 1,000.00 -7- The bonds maturing on January 1, 2005 shall have an initial principal amount per $1,000 maturity amount Of $288.30 and the accreted value of each such bond as of each January 1 and July 1, shall be as follows: Date Accreted Value July 1, 1987 $ 290.03 January 1, 1988 300.47 July 1, 1988 311.29 January 1, 1989 322.50 July 1, 1989 334.11 January 1, 1990 346.14 July 1, 1990 358.60 January 1, 1991 371.51 July 1, 1991 384.88 January 1, 1992 398.74 July 1, 1992 413.09 January 1, 1993 427.96 July 1, 1993 443.37 January 1, 1994 459.33 July 1, 1994 475.87 January 1, 1995 493.00 July 1, 1995 510.75 January 1, 1996 529.14 July 1, 1996 548.19 January 1, 1997 567.92 July 1, 1997 588.37 January 1, 1998 609.55 July 1, 1998 631.49 January 1, 1999 654.22 July 1, 1999 677.77 January 1, 2000 702.17 July 1, 2000 727.45 January 1, 2001 753.64 July 1, 2001 780.77 January 1, 2002 808.88 July 1, 2002 838.00 January 1, 2003 868.17 July 1, 2003 899.42 January 1, 2004 931.80 July 1, 2004 965.34 January 1, 2005 1,000.00 -8- The bonds maturing on January 1, 2006 shall have an initial principal amount per $1,000 maturity amount Of $266.21 and the accreted value of each such bond as of each January 1 and July 1, shall be as follows: Date Accreted Value July 1, January July 1, January July 1, January July 1, January July 1 January July 1 January July 1 January July 1 January July 1 January July 1 January July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January 1987 1, 1988 1988 1, 1989 1989 1, 1990 1990 1, 1991 1991 1, 1992 1992 1, 1993 1993 1, 1994 1994 1, 1995 1995 1, 1996 1996 1, 1997 1997 1, 1998 1998 1, 1999 1999 1, 2000 2000 1 2001 2001 1 2002 2002 1 2003 2003 1 2004 2004 1 2005 2005 1 2006 $ 267.82 277.53 287.59 298.02 308.82 320.01 331.61 343.63 356.09 369.00 382.38 396.24 410.60 425.48 440 90 456 88 473 44 490 60 508 38 526 81 545 91 565 70 586 21 607 46 629 48 652 30 675.95 700.45 725.84 752.15 779.42 807.67 836.95 867.29 898.73 931.31 965.07 1,000.00 -9- The bonds maturing on January 1, 2007 shall have an initial principal amount per $1,000 maturity amoun~ of $245.58 and the accreted value of each such bond as of each January 1 and July 1, shall be as follows: Date Accreted Value July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January July !, January July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January July 1, January 1987 1 1988 1988 1 1989 1989 1 1990 1990 1 1991 1991 1 1992 1992 1 1993 1993 1 1994 1994 1 1995 1995 1 1996 1996 1 1997 1997 1, 1998 1998 1, 1999 1999 1, 2000 2000 1, 2001 2001 1, 2002 2002 1, 2003 2003 1, 2004 2004 1, 2005 2005 1, 2006 2006 1, 2007 $ 247.07 256.09 265.44 275.13 285.17 295.58 306.37 317.55 329.14 341.15 353.61 366.51 379.89 393.76 408.13 423.03 438.47 454.47 471.06 488.25 506.07 524.54 543.69 563.54 584.10 605.42 627.52 650.43 674.17 698.77 724.28 750.72 778.12 806.52 835.96 866.47 898.09 930.87 964.85 1,000.00 Section 3. Sale and Delivery. The bonds shall be sold directly to individual investors by subscription in accordance -10- with the forms and procedures established by the Finance Depart- ment of the Village. Each bond shall be sold at a p~ice per $1,000 maturity amount equal to the initial principal amount of such bond. Authority is hereby delegated to the Village Presi- dent to determine the principal amount of bonds to be sold, which shall not exceed the $334,270.52 principal amount of bonds autho- rized by this ordinance, and the maturity amount of the bonds of each maturity which shall not exceed the respective maturity amounts determined in this section. The official statement pre- pared 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 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 bonds, including the proper execution and delivery of the bonds and the official statement upon payment of the full pur- chase price of each bond. Section 4. Execution and Authentication. The bonds 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 bond shall cease to hold such office before the issuance of the bond, such bond shall nevertheless be valid and sufficient for all purposes, the same as if the person whose signature, or a facsimile t~e~eof, 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, not- withstanding 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. Section 5. Transfer, Exchange and Registry. The bonds shall be negotiable, 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 office of the Village Treasurer, acting as 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 bond, the Village shall execute and deliver a new bond or bonds registered in the name of the transferee, of the same aggregate maturity amount and maturity as the surrendered bond. Bonds, upon surrender thereof at the office of the bond regis- trar, 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 aggre- gate maturity amount of bonds of the same maturity and of the maturity amount of $1,000 or any integral multiple thereof'. -12- For every such exchange or registration of transfer of bonds, the Village 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 privilege of making such exchange or transfer. No other charge shall be made for the privilege of making such transfer or exchange. The pro- visions of the Illinois Bond Replacement Act shall govern the replacement of lost, destroyed or defaced bonds. The Village may deem and treat the person in whose name any bond shall be registered upon the registration books as the absolute owner of such bond, whether such bond shall'be overdue or not, for the purpose of receiving payment 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 bond to the extent of the sum or sums so paid, and the Village shall not be affected by any notice to the contrary. Section 6. Bond Registration. The Village covenants that it shall at all times maintain at the office of the bond registrar a place where bonds may be presented for registration of transfer or exchange and that it shall maintain proper regis- tration books and perform the other duties and obligations imposed upon it by this ordinance. Section 7. General Obligations. The full faith and credit of the Village are hereby irrevocably pledged to the -13- punctual payment of the bonds. The bonds shall be direct and general obligations of the Village, and the Villag~ Shall be obligated to levy ad valorem taxes upon all the taxable property in the Village for the payment of the bonds, without limitation as to rate or amount. Section 8. Form of Bonds. The bonds shall be issued as fully registered bonds and shall be in substantially the fol- the lowing form, the blanks to be appropriately completed when bonds are printed: MATURITY DATE United States of America State of Illinois County of Cook VILLAGE OF MOUNT PROSPECT GENERAL OBLIGATION BOND, SERIES 1987A (CAPITAL APPRECIATION CITIZEN BONDS) ,PRINCIPAL AMOUNT APPROXIMATE MATURITY AMOUNT YIELD TO MATURITY REGISTERED OWNER: 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 re- ceived hereby promises to pay to the Registered Owner hereof, or registered assigns, on the maturity date specified above, the maturity amount set forth above. This bond will be payable in lawful money of the United States of America upon presentation and surrender of this bond at the office of the Village Trea- surer. The full faith and credit of the Village are irrevocably pledged for the punctual payment of this bond according to its terms. -14- This bond is one of a series of bonds issued in an aggregate principal amount not exceeding $334,270.~2; which are all of like tenor except as to maturity and yield to maturity and 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 May 19, 1987 and entitled: "Ordinance Authorizing the Issuance of General Obligation Bonds, Series 1987A (Capital Appreciation Citizen Bonds) of the Village of Mount Prospect, Illinois." The accreted value through each of the dates specified with respect to each $1,000 maturity amount of this bond is shown on the Table of Accreted Values appearing on the reverse side of this bond. This bond is transferable only upon the registration books of the Village kept by the Village Treasurer, acting as bond registrar, by the registered owner hereof in person, or by his attorney duly authorized in writing, upon surrender hereof at the office of the Village Treasurer, together with a written instrument of transfer satisfactory to the Village Treasurer duly executed by the registered owner or by his duly authorized attorney, and thereupon a new registered bond or bonds, in the authorized maturity amounts of $1,000 or any integral multiple thereof and of the same aggregate maturity amount and maturity as this bond shall be issued to.the transferee in exchange there- for. In like manner, this bond may be exchanged for an equal aggregate maturity amount of bonds of the same maturity and of -15- any of such authorized maturity amounts. The Village 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 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 amounts due hereon and for all other pur- poses whatsoever. 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 in- debtedness of the Village is within every debt or other limit prescribed by law. -16- 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 af- fixed or otherwise reproduced hereon and attested by the manual or facsimile signature of its Village Clerk. Dated: VILLAGE OF MOUNT PROSPECT Village President Attest: Village Clerk 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: -17- Section 9. Levy and Extension of Taxes. For the purpose of providing the money required to pay the'bonds as the same shall mature, there is hereby levied upon all the taxable property in the Village, a purpose in addition to all Tax Levy Year 1998 1999 2000 2001 2002 2003 2004 2005 direct annual tax sufficient for that other taxes, as follows: A Tax Sufficient to Produce $125,000 47~000 121~000 112,000 66,000 67,000 151,000 405,000 Bonds maturing at any time when there shall be insuffi- cient 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 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 1998 to 2005, 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 in like manner as taxes for general corporate -18- purposes collected, paying the payable. Section 10. Debt Service Fund. for said years are levied and collected and, when such taxes shall be used solely for the-purpose of bonds herein authorized as the same become due and Moneys derived from taxes herein levied are appropriated and set aside for the sole purpose of paying 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 bonds, shall be deposited in the "1987A 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. Section 11. Bond Proceeds Fund. of sale of the bonds shall be deposited in Ail of the proceeds the "1987A Bond Proceeds Fund" which is hereby established as a special fund of the Village. Moneys in the 1987A 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 Village Clerk an opinion of a nationally recognized bond counsel to the effect that such reappropriation will not adverse- ly affect the exemption from federal on the bonds. Section 12. lishes a special fund, the event that income taxation of interest Rebate Fund. The Village hereby estab- designated as the "1987A Rebate Fund." In the Village shall invest moneys in the 1987A Bond Proceeds Fund or the 1987A Debt Service Fund in any investments which generate income that must be rebated or paid to the United States of America pursuant to Section 148(f) of the Internal Revenue Code of 1986, such income shall be deposited annually, within 10 days after the anniversary date of the date of issuance and delivery of the bonds, in the 1987A Rebate Fund. Moneys in the 1987A 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 Revenue Code of 1986 and are here- by appropriated and set aside for such purpose. ~Moneys in the 1987A Rebate Fund may be reappropriated and used for other pur- poses. No such reappropriation and use shall relieve the Village of its obligation to make payments to the United States of America as required by Section 148(f) of the Internal Revenue Code of 1986. Section 13. Investment Regulations. No investment shall be made of any moneys in the 1987A Debt Service Fund, the 1987A Bond Proceeds Fund or the 1987A Rebate Fund except in accordance with the tax covenants set forth in Section 14 of this ordinance. Except as required by Section 12 of this ordinance, all income derived from such investments in respect of moneys or securities in anyFu.nd 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 -20- Public Debt. The Village Manager and agents designated by him are hereby authorized to submit, on behalf of the 9itlage, sub- scriptions for such United States Treasury Securities and to request redemption 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 which interest on such bond is subject on the date of original issuance thereof. The Village shall not permit any of the proceeds of the bonds, or any facilities financed with such proceeds, to be used in any manner that would cause any 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 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 America; 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 (which opinion may be given in reliance upon a ruling or rulings of the Internal Revenue Ser- -21- vice) 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 Village and all subordinate entities of the Village during 1987 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 1987. 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 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, regardless of the time or times of their issuance, shall be of equal rank without preference, priority or distinction of any of -22- he 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 bonds and to the extent that the provisions of this ordinance conflict with the provi- sions 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 reason, the invalidity or unen- forceability of such section, paragraph or provision shall not affect any of the remaining 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 "Mount Prospect Herald," a newspaper of general circulation in Said notice shall be in substantially the following the Village. form: "Public Notice Notice is hereby given that on May 19, 1987, the President and Board of Trustees of the Village of Mount Prospect, Illinois adopted an ordinance entitled: "Ordinance Authorizing the Issuance of General Obligation Bonds, Series 1987A (Capital Appreqiation Citizen 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" -23- Section become effective in the manner provided by law. Adopted this 19th day of May, 1987 by roll call follows: 18. Effective Date. This ordinance shall vote as Ayes: Arthur, Farley, Floros, Murauskis, Van ~e~, Wattenberg Nays: None ( SEAL ) Attest: Village Clerk Approved: May 19, , 1987 -24-