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HomeMy WebLinkAboutOrd 3788 06/02/1987ORDINANCE NO. 3788 AN ORDINANCE AUTHORIZING THE ISSUANCE OF $4,725,000 GENERAL OBLIGATION BONDS, SERIES 1987B AND $425,000 GENERAL OBLIGATION BONDS, SERIES 1987C, OF THE VILLAGE OF MOUNT PROSPECT, ILLINOIS PASSED AND APPROVED BY THE PRESIDENT AND BOARD OF TRUSTEES THE 2nd DAY OF June , 1987. Published in pamphlet form by authority of the corporate authorities of the Village of Mount Prospect, Illinois, the 3rd day of June , 1987. ORDINANCE NO.3788 ORDINANCE AUTHORIZING THE ISSUANCE OF $4,725,000 GENERAL OBLIGATION BONDS, SERIES 1987B AND $425,000 GENERAL OBLIGATION BONDS, SERIES 1987C, 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 (i) the acqui- sition 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 "Public Works Pacility"), (ii) the purchase of a fire truck and data processing equipment (the "Equipment Purchases") and (iii) the acquisition of land, the construction of sidewalks, street lighting, land- scaping and related improvements within the Village's District No. 1 Tax Increment Redevelopment Project Area (the "Redevelop- ment Projects"). 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 B Bonds. To meet part of the estimated cost of the Public Works Facility described in Section 1 of this ordinance and the costs of issuance of the bonds authorized by this Section, there is hereby appropriated the sum of'$4,425,000. To meet part of the estimated cost of the Equipment Purchases described in Section 1 of this ordinance and the costs of issuance of the bonds autho- rized by this Section, there is hereby appropriated the sum of $300,000. For the purpose of financing said appropriations, general obligation bonds of the Village shall be issued and sold in an aggregate principal amount of $4,725,000, shall be desig- nated "General Obligation Bonds, Series 1987B" (the "Series B Bonds"), and shall be issuable in the denominations of $5,000 or any integral multiple thereof. The Series B Bonds shall be num- bered consecutively 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 Series B Bonds. Unless otherwise determined in the order to authenticate the Series B Bonds, each Series B Bond shall be dated as of the interest payment date next preceding the date of issuance there- of, except that (a) if such date of issuance shall be prior to the first interest payment date, said Series B Bond shall be dated as of June 1, 1987, (b) if such date of issuance shall be an interest payment date, said Series B Bond shall be dated as of such interest payment date, or (c) if interest due on said Series B Bond shall not have been paid in full, then notwithstanding any of the foregoing provisions, said Series B Bond shall be dated as of the date to which interest has been paid in full on said Series B Bond. The Series B Bonds shall mature on January 1 in each year shown in the following table in the respective princi- pal amount set forth opposite each such year and the Series B Bonds maturing in each such year shall bear interest at the re- spective rate per annum set forth opposite such year: -2- Year 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Principal Amount $100000 255000 220000 255000 325.000 335.000 350.000 365.000 355,000 250,000 265.000 170.000 250,000 195.000 215,000 280,000 300,000 240,000 Rate of Interest 6.60% 6.70 6.70 6.70 6.70 6.70 6.70 6.80 6.80 6.80 6.80 6.90 7.00 7.00 7.00 7.00 7.00 7.00 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 January 1, 1988 and semiannually thereafter on each January 1 and July 1 at the rates per annum herein determined. The principal of and premium, if any, on 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 -3- calendar month next preceding the applicable interest payment date. Interest on the Series B Bonds shall be paid by check or draft mailed to such registered owners at their addresses appear- ing on the registration books. The Series B Bonds maturing on or after January 1, 1999 shall be 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 January 1, 1998 and on any interest payment date thereafter, at a redemption price equal to the principal amount thereof to be redeemed plus, if such Series B Bond is to be redeemed during any year shown in the following table, the applicable redemption premium, expressed as a percentage of such principal amount, set forth opposite such year: Year of Redemption 1998 2 % 1999 1½ 2000 1 2001 In the event of the redemption of less than all the Series B 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 B Bond of such maturity a distinctive number for each $5,000 principal amount of such Series B 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 B Bonds to be redeemed. The Series B Bonds to be redeemed shall be the Series B Bonds to which were assigned numbers so selected; pro- Redemption Premium -4- vided that only so much of the principal amount of each Series B Bond shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. Notice of the redemption of Series B 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 Series B Bonds to be redeemed at their last addresses appearing on said registration books. The Series B Bonds or portions thereof spec- ified in said notice shall become due and payable at the applic- able redemption price on the redemption date therein designated, and if, on the redemption date, moneys for payment of the redemp- tion price of all the Series B 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 redemp- tion 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 inter- est on such Series B Bonds or portions thereof shall cease to accrue and become payable. If there shall be drawn for redemp- tion less than all of a Series B Bond, the Village shall execute and the bond registrar shall authenticate and deliver, upon the surrender of such Series B Bonds, without charge to the owner thereof, for the unredeemed balance of the Series B Bond so sur- rendered, Series B 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 B Bond after notice of the redemption of all -5- or a portion thereof has been mailed. The bond registrar shall not be required to transfer or exchange any Series B 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 B Bond. Section 3. Authorization and Terms of Series C Bonds. To meet part of the estimated cost of the Redevelopment Projects described in SectiOn 1 of this ordinance and the costs of issuance of the bonds authorized by this Section, there is hereby appropriated the sum of $425,000. For the purpose of financing said appropriation, general obligation bonds of the Village shall be issued and sold in an aggregate principal amount of $425,000, shall be designated "General Obligation Bonds, Series 1987C" (the "Series C Bonds"), and shall be issuable in the denominations of $5,000 or any integral multiple thereof. Series C Bonds shall be numbered consecutively from 1 upwards in order of their issuance and may bear such identifying numbers or letters as shall be useful to facilitate the registration, trans- fer and exchange of Series C Bonds. Unless otherwise determined in the order to authenticate the Series C Bonds, each Series C Bond shall be dated as of the interest payment date next preced- ing the date of issuance thereof, except that (a) if such date of issuance shall be prior to the first interest payment date, said Series C Bond shall be dated as of June 1, 1987, (b) if such date of issuance shall be an interest payment date, said Series C Bond shall be dated as of such interest payment date, or (c) if inter- est due on said Series C Bond shall not have been paid in full, -6- then notwithstanding any of C Bond shall be dated as of paid in full on said Series the foregoing provisions, said Series the date to which interest has been C Bond. The Series C Bonds shall mature (without option of prior redemption) on January 1 in each year shown in the following table in the respective principal amount set forth opposite each such year and the Series C Bonds maturing in each such year shall bear interest at the respective rate per annum set Year forth opposite such year: Principal Amount Rate of Interest 1992 $90,000 1993 55,000 1994 55,000 1995 55,000 1996 55,000 1997 55,000 1998 60,000 6 70% 6 70 6 70 6 70 6 80 6 80 6 80 Each Series C 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 January 1, 1988 and semiannually thereafter on each January 1 and July 1 at the rates per annum herein determined. The principal of the Series C Bonds shall be payable in lawful money of the United States of America upon presentation and sur- render 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 C Bonds. Interest on the Series C 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 -7- 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 C Bonds shall be paid by check or draft mailed to such registered owners at their addresses appearing on the registration books. Section 4. Sale and Delivery. The sale of the Series B Bonds and the Series C Bonds (herein collectively called the "1987 Bonds") to Harris Trust and Savings Bank & Associates, as purchaser, at a price of $5,150,098.75 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 1987 Bonds is hereby approved. The Village President, Village Clerk and other offi- cials 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 1987 Bonds, including the proper execution and delivery of the 1987 Bonds and the official statement upon payment of the full purchase price of the 1987 Bonds. Section 5. Execution and Authentication. Each 1987 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. -8- In case any officer whose signature, or a facsimile of whose signature, shall appear on any 1987 Bond shall cease to hold such office before the issuance of the 1987 Bond, such 1987 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 1987 Bond had not ceased to hold such office. Any 1987 Bond may be signed, sealed or attested on be- half 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 1987 Bond such person may not have held such office. No recourse shall be had for the payment of any 1987 Bonds against any officer who executes the 1987 Bonds. Each 1987 Bond shall bear thereon a certificate of authentication executed manually by the bond registrar. No 1987 Bond shall be entitled to any right or benefit under this ordi- nance 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 Registry. The 1987 Bonds shall be negotiable, subject to the provisions for regis- tration of transfer contained herein. Each 1987 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 satis- factory to the bond registrar and duly executed by the registered -9- owner or his duly authorized attorney. Upon the surrender for transfer of any such 1987 Bond, the Village shall execute and the bond registrar shall authenticate and deliver a new 1987 Bond or Bonds registered in the name of the transferee, of the same aggregate principal amount, series, maturity and interest rate as the surrendered 1987 Bond. 1987 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 1987 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 1987 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 request- ing 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 provisions of the Illinois Bond Re- placement Act shall govern the replacement of lost, destroyed or defaced 1987 Bonds. The Village and the bond registrar may deem and treat the person in whose name any 1987 Bond shall be registered upon the registration books as the absolute owner of such 1987 Bond, -10- whether such 1987 Bond shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of, premium, if any, 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 1987 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. The Village covenants that it shall at all times retain a bond registrar with respect to the 1987 Bonds, that it will maintain at the designated office of such bond registrar a place where 1987 Bonds may be presented for payment and registration of transfer or exchange and that it shall require that the bond registrar maintain proper registra- tion books and perform the other duties and obligations imposed upon it by this ordinance in a manner consistent with the stand- ards, 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 exe- cuting the certificate of authentication on any 1987 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 re- spect to the 1987 Bond so authenticated but with respect to all the 1987 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 regis- -11- trar shall, however, be responsible for any representation in its certificate of authentication on the 1987 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 ap- pointment made by it to each registered owner of 1987 Bonds with- in 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 8. General Obligations. The full faith and credit of the Village are hereby irrevocably pledged to the puncU tual payment of the principal of and interest on the 1987 Bonds. The 1987 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 1987 Bonds and the interest thereon, without limitation as to rate or amount. -12- Section 9. Form of Series B Bonds. The Series B Bonds shall be issued as fully registered bonds and shall be in sub- stantially the following form, the blanks to be appropriately completed when the Series B Bonds are printed: United States of America State of Illinois County of Cook VILLAGE OF MOUNT PROSPECT GENERAL OBLIGATION BOND, SERIES 1987B 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 re- ceived hereby promises to pay to the regis- tered owner hereof, or registered assigns, the principal sum of 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 the United States of America on January 1, 1988 and semiannually thereafter on the first days of January and July 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 pre- ceding such interest payment date, at the address of Such owner appearing on the registration books maintained by the Village for -13- 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 and premium, if any, when due, will be payable in lawful money of the United States of America upon presentation and surrender of this bond at the prin- cipal 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 $4,725,000, 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 pursu- ant 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 June 2, 1987 and entitled: "O~dinance Authorizing the Issuance of $4,725,000 General Obligation Bonds, Series 1987B and $425,000 General Obli- gation Bonds, Series 1987C, of the Village of Mount Prospect, Illinois." The bonds 1, 1999 are subject of such series maturing on or after January 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 January 1, 1998 and on any interest payment date thereafter, at a redemp- tion price equal to the principal amount thereof to be redeemed -14- plus, if such bond is to be redeemed during any year shown in the following table, the applicable redemption premium, expressed as a percentage of such principal amount, set forth opposite such year: Year of Redemption Redemption Premium 1998 2 % 1999 1½ 2000 1 200i ½ 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 re- demption 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 redemp- tion 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 to accrue and become payable. This bond is transferable only upon such registration books by the registered owner hereof in person, or by his attor- ney 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 -15- 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 principal amount, maturity and interest rate as this bond shall be issued to the transferee in exchange therefor. In like manner, this bond may be exchanged for'an equal aggregate principal amount of bonds of the same maturity and interest denominations. The Village or charge sufficient to reimburse rate and of any of such authorized the Bond Registrar may make a it for any tax, fee or other gov- ernmental 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, premium, if any, and interest due hereon and for all other pur- poses 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 -16- onds 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. 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: CERTIFICATE OF AUTHENTICATION This bond is one of the General Obligation Bonds, Series 1987B, described in the within mentioned Ordinance. AMERICAN NATIONAL BANK AND TRUST COMPANY OF CHICAGO, as Bond Registrar Village Clerk By Authorized Officer -17- For value transfers unto ASSIGNMENT received the undersigned sells, assigns and 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 Guaranfee: INTEREST RATE Section 10. Form of Series C Bonds. The Series C 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 C Bonds are printed: United States of America State of Illinois County of Cook VILLAGE OF MOUNT PROSPECT GENERAL OBLIGATION BOND, SERIES 1987C 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 re- ceived hereby promises to pay to the regis- -18- tered owner hereof, or registered assigns, the principal sum of 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 the United States of America on January 1, 1988 and semiannually thereafter on the first days of January and July 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 pre- ceding 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 pay- able in lawful money of the United States of America upon presen- tation 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 $425,000, which are all of like tenor except as to date, maturity 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 under and in -19- accordance with an ordinance adopted by the President and Board of Trustees of the Village on June 2, 1987 and entitled: "Ordi- nance Authorizing the Issuance of $4,725,000 General Obligation Bonds, Series 1987B and $425,000 General Obligation Bonds, Series 1987C, of the Village of Mount Prospect, Illinois." This bond is issued for the purpose of financing redevelopment project costs in accordance with the Tax Increment Allocation Redevelopment Act, as amended, constituting Division 74.4 of Article 11 of the Illinois Municipal Code. This bond is transferable only upon such registration books by the registered owner hereof in person, or by his attor- ney 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 principal amount, maturity and interest rate as this bond shall be issued to the transferee in exchange therefor. In like manner, this bond may be exchanged for an equal aggregate principal amount of bonds of the same maturity and interest denominations. The Village or charge sufficient to reimburse rate and of any of such authorized the Bond Registrar may make a it for any tax, fee or other gov- ernmental 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 -20- 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 in- debtedness of the Village is within every debt or other limit prescribed by law. -21- IN WITNESS Wq{EREOF, 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: CERTIFICATE OF AUTHENTICATION This bond is one of the General Obligation Bonds, Series 1987C, described in the within mentioned Ordinance. AMERICAN NATIONAL BANK AND TRUST COMPANY OF CHICAGO, as Bond Registrar By Authorized Officer Village Clerk -22- ASSIGNMENT For value received the undersigned sells, transfers unto assigns and 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 11. Levy and Extension of Taxes. For the pur- pose of providing the money required to pay the interest on the 1987 Bonds when and as the same falls due and to pay and dis- charge 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 1987 Bonds shall be outstanding, a direct annual tax sufficient for that purpose in addition to all other taxes, as follows: -23- Tax Levy Year A Tax Sufficient to Produce 1987 $655,963.75 1988 599,535.00 1989 547,450.00 1990 657,710.00 1991 669,595.00 1992 654,135.00 1993 643,005.00 1994 630,870.00 1995 592,310.00 1996 464,430.00 1997 398,350.00 1998 285,330.00 1999 353,600.00 2000 281,100.00 2001 287,450.00 2002 337,400.00 2003 337,800.00 2004 256,800.00 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 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 1987 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 in like manner as taxes for general corporate pur- -24- poses for said years are levied and collected and, when col- lected, such taxes shall be used solely for the purpose of paying the principal of and interest on the 1987 as the same become due and payable. Section 12. Debt Service Fund. Bonds herein authorized Moneys derived from taxes herein levied are appropriated and set aside for the sole purpose of paying principal of and interest on the 1987 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 inter- est on the 1987 Bonds, shall be deposited in the "1987B and C Debt Service Fund" (the "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 Debt Service Fund for each series of the 1987 Bonds. All accrued interest received upon the issuance of the 1987 Bonds shall be deposited in the Debt Service Fund. Concur- rently with the issuance of the 1987 Bonds, the Village shall deposit in the Debt Service Fund, from sources other than 1987 Bond proceeds, an amount of money which, together with such accrued interest, shall be sufficient to provide for the payment of the interest due on the 1987 Bonds on January 1, 1988. Section 13. Bond Proceeds Fund. All of the proceeds of sale of the Series B Bonds (exclusive of accrued interest) shall be deposited in the "1987B Bond Proceeds Fund" which is hereby established as a special fund of the Village. Moneys in the 1987B Bond Proceeds Fund shall be used for financing the -25- Public Works Facility and the Equipment Purchases as specified in Section 1 of this ordinance and for the payment of costs of issu- ance of the Series B 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 adversely affect the exemption from federal income taxation of interest on the 1987 Bonds. Section 14. Redevelopment Costs. The costs of the Redevelopment Projects constitute Redevelopment Project Costs as defined in the Tax Increment Allocation Redevelopment Act, as amended, constituting Division 74.4 of Article 11 of the Illinois Municipal Code (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 C Bonds are hereby pledged to pay such Redevelopment Project Costs and such proceeds shall not be reappropriated for any other purpose unless there shall have been filed with the Village Clerk an opinion of nationally recognized bond counsel to the effect that such reappropriation will not adversely affect the exemption from federal income taxation of interest on the 1987 Bonds. -26- 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. 1 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. The proceeds of sale of the Series C Bonds (other than amounts deposited in the Debt Service Fund) shall be deposited in a special account hereby established within the Tax Allocation Fund, designated as the 1987C Bond Proceeds Account. 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 C Bonds, but 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 in the Tax Allocation Fund which are to be used for the payment of the principal of and interest on the Series C Bonds may be deposited in the Debt Service Fund, and -27- upon such deposit such moneys shall be used solely for the payment of such principal and interest. Section 16. Rebate Fund. The Village hereby estab- lishes a special fund, designated as the "1987 Rebate Fund." In the event that the Village shall invest moneys in the 1987B Bond Proceeds Fund, the 1987C Bond Proceeds Account or the 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 1987 Bonds, in the 1987 Rebate Fund. Moneys in the 1987 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 hereby appropriated and set aside for such purpose. Moneys in the 1987 Rebate Fund may be reappro- priated and used for other purposes. 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 17. Investment Regulations. No investment shall be made of any moneys in the Debt Service Fund, the 1987B Bond Proceeds Fund, the 1987C Bond Proceeds Account or the 1987 Rebate Fund except in accordance with the tax covenants set forth in Section 18 of this ordinance. Except as required by Section 16 of this ordinance, all income derived from such investments in respect of moneys or securities in any Fund or Account shall be -28- credited in each case to the Fund or Account in which such moneys or securities are held. Any moneys in any Fund or Account 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. 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 18. 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 1987 Bond to become subject to federal income taxes in addition to federal income taxes to which interest on such 1987 Bond is sub- ject on the date of original issuance thereof. The Village shall not permit any of the proceeds of the 1987 Bonds, or any facilities financed with such proceeds, to be used in any manner that would cause any 1987 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 1987 Bonds or other moneys to be invested in any manner that would cause any 1987 Bond to constitute an "arbitrage bond" with- in the meaning of Section 148 of the Internal Revenue Code of 1986. -29- The Village shall comply with the provisions of Section 148(f) of the Internal Revenue Code of 1986 relating to the re- bate of certain investment earnings at periodic intervals to the United States of A~erica; 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 Service) to the effect that such compliance is not necessary to preserve the exemption from federal income taxes of interest on the 1987 Bonds. Section 19. Bank Qualified Bonds. Pursuant to Section 265(b)(3)(B)(ii) of the Internal Revenue Code of 1986, the Village hereby designates the 1987 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). -30- Section 20. Ordinance to Constitute a Contract. The provisions of this ordinance shall constitute a contract between the Village and the registered owners of the 1987 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 secu- rity of the owners of any and all of the 1987 Bonds. Ail of the 1987 Bonds, regardless of the time or times of their issuance, shall be of equal rank without preference, priority or distinc- tion of any of the 1987 Bonds over any other thereof except as expressly provided in or pursuant to this ordinance. This ordi- nance shall constitute full authority for the issuance of the 1987 Bonds and to the extent that the provisions of this ordi- nance 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 ordi- nance shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, para- graph or provision shall not affect any of the remaining provi- sions of this ordinance. Section 21. 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 the "MOunt Prospect Herald," a newspaper of general circulation in the Village. lowing form: Said notice shall be in substantially the fol- -31- Public Notice Notice is hereby given that on June 2, 1987, the President and Board of Trustees of the Village of Mount Prospect, Illinois adopted an ordinance entitled: "Ordinance Authorizing the Issuance of $4,725,000 General Obligation Bonds, Series 1987B and $425,000 General Obligation Bonds, Series 1987C, 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" Section 22. Effective Date. This ordinance shall become effective in the manner provided by law. Adopted this 2nd day of June call vote as follows: Ayes: Arthur, Farley, Flores, Murauskis, ~nGeem, Wattenbe~ , 1987 by roll Nays: None ( SEAL ) Attest: Village Clerk Approved: Village/President -32-