HomeMy WebLinkAboutOrd 5301 01/21/2003ORDINANCE NO. 5301
AN ORDINANCE AUTHORIZING THE ISSUANCE OF $12,235,000
GENERAL OBLIGATION BONDS, SERIES 2003, OF
THE VILLAGE OF MOUNT PROSPECT, ILLINOIS
Passed and approved by
the President and Board of Trustees
the 21st day of January, 2003
Published in pamphlet form by
authority of the corporate
authorities of the Village of
Mount Prospect, Illinois, the
22nd day of January, 2003
ORDINANCE NO.
ORDINANCE AUTHORIZING THE ISSUANCE OF $12,235,000 GENERAL
OBLIGATION BONDS, SERIES 2003, 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, Purpose and Findings, This ordinance is adopted pursuant
to and under the authority of Section 6 of Article VII of the Illinois Constitution of 1970 for
the purpose of financing a portion of the costs of planning, design and construction of a
new Village Hall and Community Center to be located at the north-east corner of Main
Street and Busse Avenue and of a multi-level parking garage to be located adjacent to the
Village Hall and Community Center, including the improvement of Fire Station No. 12,
demolition and site work and Village Hall furnishings and equipment. The total estimated
cost of these improvements is $17,483,391. The foregoing improvements or purposes are
each authorized to be made or undertaken by the Village of Mount Prospect, Illinois.
S~cfion 2: Authorization' and Terms of Bonds. The sum of $12,235,000 is
appropriated to meet part of the estimated cost of the improvements or purposes described
in Section'1 of this ordinance. Said estimated cost is inclusive of the cost of issuance of
the bonds herein authorized. Pursuant to the home rule powers of the Village to incur debt
payable from ad valorem property tax receipts and for the purpose of financing said
appropriation, general obligation bonds of the Village are authorized to be issued and sold
ih an aggregate prinbi'pal' amount of $12,235,000, and Shall be designated "General
Obligation Bonds, Series 2003."
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 bonds. Unless otherwise determined in the order
to authenticate the bonds, each bond delivered upon the original issuance of the bonds
shall be dated as of February 1, 2003. Each bond thereafter issued upon any transfer,
exchange or replacement of bonds shall be dated so that no gain or loss of interest shall
result from such transfer, exchange or replacement.
The bonds shall mature on December 1 in each year shown in the following table
in the respective principal amount set forth opposite each such year and the bonds
maturing in each such year shall bear interest at the respective rate per annum set forth
opposite such year:
Principal Interest Principal Interest
Year Amount Rate Year Amount Rate
2003 $505,000 3.250% 2013 $595,000 4.000%
2004 440,000 3.250 2014 615,000 4.000
2005 450,000 3.250 2015 645,000 4.125
2006 465,000 3.250 2016 670,000 4.250
2007 480,000 3.250 2017 700,000 4.375
2008 495,000 3.250 2018 730,000 4.500
2009 510,000 3.500 2019 765,000 4.500
2010 530,000 3.500 2020 800,000 4.625
2011 5~0,000 31750 2021 840,000 4.750
2042 570,000 4.000 2022 880;000 4;750
Each 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 1,2003 and semiannually thereafter on each June I and December 1
at the rates per annum herein determined.
The principal of the bonds shall be payable in lawful money of the United States of
America upon presentation and surrender thereof at the principal corporate trust office of
Bank One, National Association, in the City of Chicago, Illinois, which is hereby appointed
as bond registrar and paying agent for the bonds. Interest on the bonds shall be payable
on each interest payment date to the registered owners of record thereof appearing on the
registration books maintained by the Village for such 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 bonds shall be
paid by check or draft mailed to such registered owners at their addresses appearing on
the registration books or by wire transfer pursuant to an agreement by and between the
Village and the registered owner.
The bonds maturing on or after December 1, 2012 shall be subject to redemption
prior to maturity at the option of the Village and upon notice as herein provided, in such
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princip~al am~unfs and from such maturities as the Village Shall dete~ine and by 10t'within
a single maturity, on June 1,2012 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 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 bond of such maturity a distinctive
number for each $5,000 principal amount of such bond and shall select by lot from the
numbers so assigned as many numbers as, at $5,000 for each number, shall equal the
principal amount of such bonds to be redeemed. The bonds to be redeemed shall be the
bonds to which were assigned numbers so selected; provided that only so much of the
principal amount of each bond shall be redeemed as shall equal $5,000 for each number
assigned to it and so selected.
Notice of the redemption of bonds shall be mailed not less than 30 days nor more
than 60 days prior to the date fixed for such redemption to the registered owners of bonds
to be redeemed at their last addresses appearing on said registration books: The bonds
or portions thereof specified in said notice shall become due and payable at the applicable
redemption price on the redemption date therein designated, and if, on the redemption
date, moneys for payment of the redemption pdce 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. If there shall be drawn for
redemption less than all of a bond, the Village shall execute and the bond registrar shall
authenticate and deliver, upon the surrender of such bond, without charge to the owner
thereof, in exchange for the unredeemed balance of the bond so surrendered, bonds of
like maturity and of the denomination of $5,000 or any integral multiple thereof.
The bond registrar sha 'not be required to transfer or exchange any 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 bond during a period of 15 days next
preceding the mailing ora n0fice of redemPtion that could designate for redemption all Or
a portion of such bond.
Section 3. Sale and Delivery. The bonds are sold to Salomon Smith Barney, Inc.,
as purchaser, at a price of $12,149,548.49 and accrued interest from their date to the date
of delivery and payment therefor. The Official Statement prepared with respect to the
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 Exchange Act of
1934.
The Village President, Village Clerk and other officials of the Village are 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:
Section 4. Execution and Authentication. Each bond shall be executed in the
name of the Village bythe 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 bythe manual or authorized facsimile signature
of its Village Clerk.
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In case any officer whose signature, or a facsimile ofwhose 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 thereof, appears on such bond had not ceased to hold such office.
Any bond may be signed, sealed or attested on behalf of the Village by any person who,
on the date of such act, shall hold the proper office, notwithstanding that at the date of
such bond such person may not have held such office. No recourse shall be had for the
payment of any bonds against any officer who executes the bonds.
Each bond shall bear thereon a certificate of authentication executed manually by
the bond registrar. No bond shall be entitled to any right or benefit under this ordinance
or shall be valid or obligatory for any purpose until such certificate of authentication shall
have been duly executed by the bond registrar.
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 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 bond, the Village shall execute and the bond registrar shall authenticate and deliver
a new bond or bonds registered in the name of the transferee, of the same aggregate
principal amount, maturity and interest rate as the surrendered bond. Bonds. upon
surrender thereof 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
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attorney duly authOrized in writing, may be exchanged for an equal aggregate principal
amount of bonds of the same maturity and interest rate and of the denominations of $5,000
or any integral multiple thereof.
For every such exchange or registration of transfer of bonds, the Village or the bond
registrar may make a charge sufficient for the reimbursement of 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 {uch 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 Replacement Act shall govern the replacement of lost,
destroyed or defaced bonds.
The Village and the bond registrar may deem and treat the person in whose name
any bond shall be registered upon the registration books as the absolute owner of such
bond, whether such 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 bond to the extent of the
sum or sums so paid, and neither the Village nor the bond registrar shall be affected by
any notice to the contrary.
Section 6. 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 bonds.
The 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 bonds and the interest thereon, without limitation as to rate or amount.
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Section 7: Form of Bonds, The bondS Shall be issued as fu iY reg §(ered bond§
and shall be in substantially the following form, the blanks to be appropriately completed
when the bonds are printed:
No.
INTEREST RATE
.%
REGISTERED OWNER:
PRINCIPAL AMOUNT:
· United States of America
State .of Illinois
County of Cook
VILLAGE OF MOUNT PROSPECT
GENERAL OBLIGATION BOND,
SERIES 2003
MATURITY DATE
December 1, 20__
CEDE & CO.
DATED DATE
Februa~ 1,2003
CUSIP
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 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, 2003 and semiannually thereafter on June 1 and December 1 in each year until
the principal amount shall have been paid, to the registered owner of record hereof as of
the 15th day of the calendar month next preceding such interest I~ayment date, by wire
transfer pursuant to an agreement by and between the Village and the registered owner,
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or otherwise by check or draft mailed to the registered owner 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 Bank One, National Association, 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 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
$12,235,000, 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 January 21, 2003 and
entitled: "Ordinance Authorizing the Issuance of $12,235,000 General Obligation Bonds,
Series 2003, of the Village of Mount Prospect, Illinois."
The bonds of such series maturing on or after December 1, 2012 are subject to
redemption prior to matudty at the option of the Village and upon notice as herein provided,
in such principal amounts and from such maturities as the Village shall determine and by
lot within a single maturity, on June 1, 2012 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 pdce on the redemption date therein designated, and if, on the redemption
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date, moneysfor payment of the redemptio~n~pfiCe 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 bYthe 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
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 rate and of any of such
authorized denominations. The Village or the Bond Registrar may make a charge sufficient
for the reimbursement of 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.
Th is 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.
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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 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 affixed or otherwise
reproduced hereon and attested by the manual or facsimile signature of its Village Clerk.
Dated: February 1, 2003
VILLAGE OF MOUNT PROSPECT
Village President
Attest:
CERTIFICATE OF AUTHENTICATION
This bond is one of the General
Obligation Bonds, Series 2003, described
in the within mentioned Ordinance.
BANK ONE, NATIONAL ASSOCIATION,
as Bond Registrar
By
Authorized Signer
Village Clerk
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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 8. Levy and Extension of Taxes. For thepurpose of providing the money
required to pay the interest on the bonds when and as the same falls due and to pay and
discharge the principal thereof as the same shall mature, there is hereby levied upon all
the taxable property in the Village, in each year while any of the bonds shall be
outstanding, a direct annual tax sufficient for that purpose in addition to all other taxes, as
follows:
Tax LevyYear
A Tax Sufficient to Produce
2002 $915,036.46
2003 915,631.25
2004 911,331.25
2005 911,706.25
2006 911,593.75
2007 910,993.75
2008 909,906.25
2009 912,056.25
2010 913,506.25
2011 912,881.25
2012 915,081.25
2013 911,281.25
2014 916,681.25
2015 915,075.00
2016 916,600.00
2017 915,975.00
2018 918,125.00
2019 918,700.00
2020 921,700.00
2021 921,800.00
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
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with the Count), 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 2002 to 2021, 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 purposes for said years are levied and collected
arl~, when collected; such taxes shall be used for the purpose of paying the princiPal of
and interest on the bonds herein authorized as the same become due and payable.
Section 9, Debt Service Fund. Moneys dedved from taxes herein levied are
appropriated and set aside for the purpose of paying principal of and interest on the bonds
when and as the same come due. All of such moneys, and all other moneys to be used
for the payment of the principal of and interest on the bonds, shall be deposited in the
"2003 Debt Service Fund", which is hereby established asa special fund of the Village and
shall be administered as a bona fide debt service fund under the Internal Revenue Code
of 1986. All accrued interest received upon the issuance of the bonds shall be deposited
in the 2003 Debt Service Fund.
The moneys deposited or to be deposited into the 2003 Debt Service Fund,
including the tax receipts derived from the taxes levied pursuant to this ordinance, are
pledged as secudty for the payment of the principal of and interest on the bonds. The
pledge is made pursuant to Section 13 of the Local Government Debt Reform Act and shall
be valid and binding from the date of issuance of the bonds. All such tax receipts and the
moneys held in the 2003 Debt Service Fund shall immediately be subject to the lien of
such pledge without any physical delivery or further act and the lien of such pledge shall
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be valid and binding as against all parties having claims of any kind in tort, contract o~'
otherwise against the Village irrespective of whether such parties have notice thereof.
Section 10. Bond Proceeds Fund. All of the proceeds of sale of the bonds
(exclusive of accrued interest) shall be deposited in the "2003 Bond Proceeds Fund", which
is hereby established as a special fund of the Village. Moneys in the 2003 Bond Proceeds
Fund shall be used for the improvements or 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 if 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 bonds.
Section 11. Investment Regulations. No investment shall be made of any
moneys in the 2003 Debt Service Fund or the 2003 Bond Proceeds Fund except in
accordance with the tax covenants set forth in Section 12 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 Village Treasurer 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.
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Section 12. 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 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 13. Continuing Disclosure. For the benefit of the beneficial owners of
the 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 of 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 any,
within 210 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
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"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 bonds, to provide timely notice to the Municipal Securities Rulemaking Board and to
the Illinois state information depository, if any, of any failure of the Village to file any such
annual report within the 210 day period and of the occurrence of any of the following
events with respect to the 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 bonds;
(7) modifications to rights of bondholders; (8) bond calls; (9) defeasances; (10) release,
substitution or sale of property securing repayment of the bonds; and (11) rating changes.
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 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
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long as Rule 15c2-12(b)(5)is applicable to the bonds and the Village remains an "obligated
person" under the Rule with respect to the bonds.
The undertakings contained in this Section may be amended by the Village upon
a change in cimumstances that arises from 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
recluirernents 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 bonds.
Section 14. Bond Registrar. The Village covenants that it shall at all times retain
a bond registrar with respect to the bonds, that it will maintain at the designated office of
such bond registrar a place where bonds may be presented for payment and registration
of transfer or exchange and that it shall require that the bond registrar maintain proper
registration books and perform the other duties and obligations imposed upon the bond
registrar 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 bond, and
by such execution the bond registrar shall be deemed to have certified to the Village that
it has all requisite power to accept, and has accepted such duties and obligations not only
with respect to the bond so authenticated but with respect to all the bonds. The bond
registrar is the agent of the Village and shall not be liable in connection with the
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performance of its duties except for its own negligence or default. The bond registrarshall,
however, be responsible for any representation in its certificate of authentication on the
bonds.
The Village may remove the bond registrar at any time. In case at any time the
bond registrar shall resign or shall be removed or shall become incapable of acting, or shall
be adjudged a bankrupt or insolvent, or if a receiver, liquidator or conservator of the bond
registrar, or of its property, shall be appointed, or if any publib officer shall take charge or
control of the bond registrar or of its property or affairs, the Village covenants and agrees
that it will thereupon appoint a successor bond registrar. The Village shall mail notice of
any such appointment made by it to each registered owner of bonds within twenty days
after such appointment.
Section 15. Book-EntrySystem. Inordertoprovidefortheinitialissuanceofthe
bonds in a form that provides for a system of book-entry only transfers, the ownership of
one fully registered bond for each maturity, 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, as securities depository for the bonds. The Village Treasurer 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 shall appoint a successor securities depository to provide a system
of book-entry only transfers for the 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.
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The Village may terminate the system of book-entry only transfers for the bonds at
any time, by 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 bonds, bond
certificates in replacement of such beneficial owners' beneficial interests in the bonds, all
as shown in the records maintained by the securities depository.
Sectron 16. DefeasanCe and payment of Bonds. (A) If the Village §hall pay Or
cause to be paid to the registered owners of the 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 registered owners and
the beneficial owners of the bonds shall be discharged and satisfied.
(B) Any bonds or interest installments appertaining thereto, whether at or prior
to the maturity or the redemption date of such bonds, shall be deemed to have been paid
within the meaning of paragraph (A) of this Section if (1) in case any such bonds are to be
redeemed prior to the maturity thereof, there shall have been taken all action necessary
to call such 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
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 Amedca, (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 this paragraph, which are stripped
pursuant to programs of the Department of the Treasury of the United States of America,
or (iv) coupons or interest installments stripped from bonds of the Resolution Funding
Corporation.
Section 17. 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 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 bonds. All of the bonds,
regardless of the time or times of their issuance, shall be of equal rank without preference,
pdodty or distinction of any of the 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 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 reason, the invalidity or unenforceability of such
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Names
section, paragraph or provision shall not affect any of the remaining provisions of this
ordinance.
Section 18. 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 19. Effective Date. This ordinance shall become effective upon its
passage, approval and publication in pamphlet form.
Adopted this 21st day of January, 2003, by roll call vote as follows:
Ayes: Corcoran, Hoefert, Lohrstorfer, Skowron, Wilks
Absent: Farley
Nays: None
Approved: January 21, 2003
Mayor Pro. Te~
Published in pamphlet form: January 22, 2003
(sEAL)
Attest:
Village Clerk O.
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