860 LTGO PSB BOND
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~CITY OF YELM, WASHINGTON
lIMITED TAX GENERAL:OBLIGATION BONDS, 2006 ' '
", :ORDINANCE.NO. 860
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" AN 'ORDINANCE of .the ~ity' of Yelm, "Washington, 'providing for,
the issuance and sale c;>f limited' tax general obligation bonds of
the City in the principai amount of $4;675,000 to provide funds
, for a new public safety building and municipal ,machinery and
, equipment; prQviding the, date, forni., terms and maturities of said
bonds; deemil,lg final a preliminary official st~tement; providing
for the d~spositionoftheproceeds of sale; ,and approving the sale
of such bonds.
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APPROVED ON OCTOBER 24, 2006 '
PREPARED BY:
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, : PRESTON GA TES & ELLIS LLP "
Seattle, Washington
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Section 1.
Section 2.
Section 3.
. Section 4.
Section 5.
CITY OF YELM \
. ORDINANCE NO. 860
. TABLE. OF CONTENTS*
Pa'ge
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Definitions......... .............0...... .'..:....................... ...........:. '.' .....:.... ..,..:.. ~... ~. ~... :'.. .:... .'... ........1
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. 'TheProj ect ....... ................. ~...: ....~... ',' .... ;.:.:.... :.... ....; ....~. '," ~.'..... H' .~... ....... ....... ':'0 '.':~' ..... ~.5 ...,'
Authorization of Bonds and Bond Details ....<..:.............;...........................,...,'....:...;..6 .
Re'gistration, Exchange and Payments ...:.....~ :............... .~:: ~..'....: ..:... ..,.........:. ........;.:.. ...6 .
.' Redemption an~Purchase.. .... .....;.~.. ....'.... ....:...... .~....... ..:.......... .:: ...... .:.... ...~... .......:...11
Section. 6.. Form of BOnds ..................... ...... ..... ... ........ .;............... ...:. ..........: .... ............ ...:. ......... ... .15
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Section? . Execution of Bonds .................................... .........'.. ...... ........:~;.. ....... ~.......................; 18 \
Section 8. '.. Ta~ Covenants; Special Designation ................:.::..:...:...............~....;......,'i...........:~:.)9
. Section 9: . Bond Fund an4 Provision/or Tax Levy'Payments~....................:....w......,:.............20
Section 10. · Defeasance..... ........... .......... .,............. ..;.. .'. ................ H'........ ............ ..... ~...............:.. .'.21
Section 11..' 'Sale, of Bonds .. ...:.'....... ...:'..................... ................. ~.......... ..... ..........:..........................22'
Section .12. Bond Insurance....................... ........;....................................;... ............................. .23
Section'13~
. Section 14.
, . Section .15.
. Section 16.
. ,SeGtion 1 7-:
.' Und~rtaking~? Provide Ongoing Discios~re .::.~.:......:.;.~....~~.:..................:..........~....29'..
.'~roJectFund and Applicati?~of~roceeds ~fB.onds ..~.~...................................;..:...33 ,
Lost, Stolen or Destroyed Bonds.. ...'.;........,........: ..:...:........w ........ ...........................33
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..Sev~rability ,":" ............:...o...:...:..;.........: ~... .'....... .~....... ...:....:.....:...... .~........: ..u.. .:.::...33.;
. '. Effective Date. ......................... ..... i................. ........ .:'............~................ .:'.......::.. .::.;. .34'
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, *': This Table ofCont~nts is provided for convenience only and is not a part. of this ordinance," .
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ORDINANCE NO. 860
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,AN ORDINANCE of the City of Yelm, Washington, providing for ,
, the issuance and ~ale of limited tax general,obligation bonds of. '
the City in the principal amount- of $4,675,000 to provide funds',
, , for a new public safety' building and municipal machinery and '
, equipment; providing the date, form, terms 'and maturities of said',' ,
bonds; deeming final a preliminary official statement; providing'
for the disposition of the proceeds of sale; and approving the sale
of such bonds.
,,'WHEREAS, the City of Y el~, Washington (the "City',') is in need of a' new public safety,
, building a~d muni~ipal machinery and equipment (the "Project"); and .
", , 'WHEREAS,- the City is authorized by RCW ch. 35AAO 'to in~ur indebtedness and issue ",
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general obligation bonds in ~rde'r to finance public improvements; al!d
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WHEREAS, in order 'to, provide the funds required for the Project, the, City proposes'to
issue limited tax general obligation bonds in the principal amount of $4,675,000 (hereinafter
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defined as tp:e '~Bonds") al1d to authorize the saleofthe Bonds; and, '
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WHEREAS, the City has received the' offer' from Martin Nelson '& Co:, Inc., Seattle"
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Washington, to purchase the Bonds on'terms described in this ordinance and acceptable to this '
City Council;
NOW,' THEREFORE, THE. CITY" COUNCIL OF,' THE' ,CITY OF YELM,'
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'w ~SHINGTON, DO ORDAIN as follows:.,'
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,,' ,SeCtion L ' Definitions. ' As used inthis ordinance, the following words 'shall h~ve the
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" Beneficial()wner means any person that has' o'rshar~s th~ power, 'd'irectly or i~directly to
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make investmentdecisjons concerning 'ownership of any B~nds,(includ,ing persons holding'
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.. ,~onds through n9minees, depositories o~ other intermediaries). , '
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-,' . Bond Fund means the "Limited Tax General Obligation Bond Redemption Fund, 2006'"
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, " e'stablished pursuantto,Secti~n 9,ofthis ordinance. ',',
, Bond Insuran~e Po1icy~eans ~he, financial guar~nty insurance 'policy issued by the"
Insurer insuring the payinentwhen due 'of the principal of and Interest on the Bonds as provided)
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:.Bond Register,: JTleansthe registration booksid~ntifyjng ~he name, ,address and tax:.
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"'identification humber, of each Registered Owner of the Bonds, :mairitained pursuant to
Section 1~9(a) pfthe Code.._
Bonds 'means the $4,675,000 pnncipal amount ofthe~ity ofYelm,Wa~hington.Limited
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, T~x ~eneral O~ligation~'onds, 2006 issued pursuant to this ordinance for th~purpose of paYing'
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costs authorized by'Section 2 of this ordinance.
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Bond Year- means each one~year perio~ that ends on !he dat.e selected by the ',City. " The " ,
first and last, Bond Years may be short periods. If no day is 'selected by the City before the earlier
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of the final maturity date of the Bonds or the date' that isfivey~ilfs afte~ the date of issuanc~ of '
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, the Bonds; Bond "Years end on each ~iversary o~ the date' of issue ~nd on the final maturitydate
of th~ Bonds.
: City ,means the, City of, Yelm, Washingtol!, a' rriunicip~l ,corporatio~ of the" State of
w ashington~
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Code means the' Internal R~venue' Code of 1986, as amended, and. shall inClude" all ,
applicable regulations and rulings relating thereto. .
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C011imissioll.mean~ the Securities and Exchange Commission.,
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Council ,means ,the City Council as 'thege~eral' legislative authority of the City; as the'
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: s.ame.shall be dulyand regularly constituted from time to time,
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P:\CMW\CMW7BR '10/24/06
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, DTC means Th~ Depository Trust Company, New York"New York, a limited purpose
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, 't~st company o'rganized ul!-der ~the laws of the State of New Y ~rk, as depository lor- the Bonds,
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Go,:ernment Obligation~means those obligations now or hereafter 'defined as such in
chapter 39.53 RCW.
,Insurer'means Ambac Assurance Corporation, ,a Wisconsin-domiciled stock insurance
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'~ company, or any successor thereto or assigrlee ,thereof, as issuer oia Bond Insurance 'Policy for
. the Bonds.
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'Lette~ of Representations means the blanket issuer letter of representatiorts from the City',
" to DTC.,
MSRB ,means the Municipal Securities Rulemaking Board or any successor to its '
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, Net Proceeds, wh~n used with reference with the Bonds, means th.e principaramount of ' :
the Bonds, plus, accrued interest and original issue premium, ifany,' and less original issue
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NRMSIR means a nationally recognized municipal securities .information repository.
- 'Private Person means any natural, pers?n' , engaged' in ,a 't~ade ?f business or any trust,
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estate,. partnership, association, ?ompany or corporation.
Private Person Use means the use of property in a trade or business by a Private,p'erson if
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,'such use is, other than as' a memberofthe,generalpublic. Private Perso'n Use includes ownership
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of the. property by' thePri vat~,' P~rson as well" as o~he~ arrangements that transie~' to the Pri'~ate ' '
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, , Pe,' rs~n the"actual o~ beneficial use of the property (such as alease;'inanag~ment orincenti\re
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payrnenteontract or other special arrangement) in such a manner as to'set the Private Person
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apart from the, general public.' Use of property as' a member of the general public includes .
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attendance by the Priv~te P,erson at 'municipal' meetings 'or busihess ren,talof p~operty to' "the'
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, private'Person on a day-to-day, basis if the rental paid by such Private Person is the same as the'
, rental paid ,by any Private Person who desires to rent the property. ,Use,ofprop~rty by n?nprofit,
" community groupsor community recreational groups is not treated:as PrivatePerson Use ifsu~h
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,use is incldental to the goverrrrnental uses of property, the property is made available for such use
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by all such community groups 'on an equal basis and such community groups are charged only a '
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,de minimis fee to' cover custodial expenses. '
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Project means the acquisitIon, constructio~ ~nd equipping of a public safety building' arid'
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the acquisition of niunicipalmachinery and equIpment.
Project Fund 'means the Municipal Building' Fund authorized' to be ,established 'by
Section 140fthis ordinance. ' ,
Registere1 O.wnermeans the person named as the registered owner of a Bond in 'the Bond '
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~egister: For'so long 'as the Bonds are held in book-entry only form, ~TC shall be deemed tq be
, 'the, sole Registered Owner. ' '
, , 'Regist~ar means, initially, the fiscal agency of the State of Washingtol}, for' the purposes
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,of registeririg. and authenticating the ~Ohds, maintaining th~ Bond Register,. effecting transfer 'of'
'ownership of the Bonds and paying interest on and ,principal' of the Bonds.
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, Rule lTleans theCo!llmission's Rule 15c~~ 12 under the Securities Exchange 'Act. of 1934;
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;, ,as the sanie may be amended from time to time.
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,SID means a state, informatiotidepositoryfor the 'State of Washington.
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'Treasu~er means th~"dulyqualified,' appointed and acting'Clerk-T'reasurer of the City or '
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anyotherofficer wh6succee~s to the duties now delegated to,that offtce:--
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P:\CMW\CMW7BR " ,'10124106.
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, U~tderwriterme,ansMartin Nelson & Ca., Inc." Seattle,W ashing~on. '
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Ruies of Interpretation. In this ardinance, unless the'.contextather'Wise requires:
"(a)' ,The t~rms '~hereby," "hereaf,''''''here~a,'' "herein, "hereunder" and any 'similar
, terms, as used in this ordinance, refer to this ardinance as a'whale and 'nat to. any particular
article, se~tian" subdivisian oiclause her~af,and the term "hereafter" 'shall mean after, and the
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, term "heretafare'; shall mean befare, tlie date af this ardina,nce; "
(b) Words of t~e masculine gender shall mean and include carrelativewards of the, '
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feminine and neuter genders and wards imparting the singular numb~r shall mean and include
, th~ plural number arid vice versa;
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Words importing persans shall include firms, assaciatians, partner~hips (in~luding
, li~ited,partner~hips), trusts, corp:arations ,and ather legal entities,'1ncluding p~blic 'b~dies, ~s well'
.as natural.persans;
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. (d), Any headings preceding the text af the several articles' and sectians .of this
,ordinance, and .any table af cantents ar marginal not~s appen,ded'to capies hereaf,shall be solely
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'. for canvenieJ?~e ~freference'and shall not C'onstitute a part of this ord.inanqe, norshail they affect ",
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': its meaning,canstruction or effect; ,
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" to. the correspanding (lrticles"s~ctians, subdivisions or elauseshereaf.
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(f)' ~ords importing the singular numberinciude ,the plural number, and vice versa. '
Sectian 2.
The Praiect. Praceeds of the Bondswillbe used to. acquire, construct and
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, equip a public. safety building a~d t6 acqulr~ municipal ~achinery ,and eq~ipment( copective'ly, . .
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, the "Project") and to. pay costs of issuance of the Bands.
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Sectian 3. Autharizatian af Bands and Band Details. Far the purpase af praviding
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funds tor th~ .Projec~and to. 'pay castsaf issuance, the City shall issue its limited tax general ..
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abligatian bands in the. aggregate principal amount,af $4,675,000. . The bands shall be general
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...()blig~tians of the City; shall be designated "City?'fYelm, 'Wa~hington'Limited Tax General
(jbligation Bonds, 2006'~' (the. "Bands"); shall :be 'dated as af the date af their "initial' delivery;
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shall' be fully registered as to. both principal and interest,.shap be in thedenominatian af$5,000'.. . .'
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. 'each or any integral multiple thereaf '~ithin a maturity, prayide~ that no.. Band shall r~present
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mare than' anematurity, shallbe numbered separately iIi such manner ,and with any additianal .
designatian as the Re'gistra~. de'ems ,pecessary far 'pu!"Pases 'af ide~tificatian', and shall bear
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::.' interest from 'their date payable an the first days "of each June and December, commencing 'on:' .
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June 1, 2007. The/Bo~ds shall mature in the following' years an~' in the' fallawing am,qunts,.
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bea~ng int"erest' at the follQ~ing rat6s:
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MatuntyDates.
(December 1)
2007
2008 .
20Q9.
.2010
2011
'. 2014
2015
2016
,2017
'2018 :
2021. .
.2026
Principal Amounts
'$ '.150,000
165~000 .
.175,000 '
180,000
185,0~0
.595,000
'215,000 .
225,000
230,000 .
240,000
780,000
.' ,1,535,000
.' Interest Rates'
4.00%'
4.00
, 4.00
4.00
4.00.. .
3.70".
3.75
3.80.
. 3.85'
3.90
4.'00'
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., Sectian 4...' . . R~~dstratian.Exchange and Payments., .
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(a). , Regi~rrq.~/Bond .Register.,.The. City hereby specifies and '-ldapts the sys~em of
regis.tratio~l app,raved by the Washington State Finance Cammittee :from timeta time t~ough the
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. P;ICMWICMW7BR '. '. 10/24/06
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,appointment' of state fiscal agencies. The City sh,all cause a bond 're,gister: to be maintained by the '
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Registrar., So, long as any Bonds remain 'outstanding, the Registrar shall make' all necessary
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provisions to permit the exchange or registration 'or transfer, of Bonds, at its principal <corporate
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trust office. The Registrar may be re~oved' at 'any time,at the option of the Treasurer upon prior ..
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notice to' the Registrar and a' successor Registrar appointed by the Treasurer. " No resignation or '
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, ,r~m~'yal o'f the' Registrar shall b,e effective until a success~r shall have been appointed and until '
the successor Registrar shall have accepted the d~ties of the Registrar hereunder. ' Th~ Registrar
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'is~uthori;zed; 6~ behalf of the City, to' authenticate and deliver Bonds transferred or exchanged in
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"a~~ordance with the provisions of such Bonds ,and, this ordinance and to' carry out all of the
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" represeritations c;ontained in the Certificate of Authentication of the Bonds: '
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(b) "RegisteredOwnership. TheCity'and the Registrar, each in its discretion, may'
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deem and treat ,the, Registered Owner of each Bon,~as the absolute owner then::offor all purposes
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" (except as provided in Section 13 of this ordinance),' and neither the' City nor the Registr~r, shall '
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. be affected by,any'notIce tothe cOI1trary: Payment of a:ny such Bond shall: be 'made only as'
, des~ribed in Section 4(h)he~eof, but 'suc!I Boridmay be transferred as herein provided." All 'such
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payments made as described' in Section4(h) shall be vali~ 'and, shall' s.ati,sfy arid discharge the
, liability ofth~'City upon such Bond to t~eextentoft~e amount' or amo,unt~ so paid.
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. ,(c) " ,DTC1cceptancelLetters ,of Representatlons. ,The Bonds ,initially 'shall be held in'
""ful1y"immobiliz~d fo~by riTC acting as depository. to induceI?TCto accept the Bonds as
, 'eligible for, deposit af DTC, th~ City ha~ executedan.d delivered to DTC a Blanket Issuer Letter
of Representations~ N~ither',the City nor the Registrar ,will haveanyresponsibillty or obligation'
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, t6 DT~p~~icipa~ts or thepersolls for ~hom they'act as'nominees (of. any successor depository)'
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w,ith respect to the Bonds in respect of the accuracy of anyrecords maintained: by DTC (or any.
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'. 'Suc~essor depository) or ~ny DTC part{cipant,' the payment by DTC. (or a,ny su'ccessor depo~itory).
. . or any DTe participant of any amount. iIi respect of the' principal of or intere~t on'B?nds, any
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notice which. is, permitted or ,required to ~e given to Registered Owne~s under .this ordip.ance.'.
'(except stich notices a's shall/be requixedto be given by the Cityto the Registraror to' DTC. (or .'
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'. . . any successor depository)), ,ot arty' consent given or other action taken byDTC (or any successor
. ciepository)as the Registered Ow~er. For so, long as any Bonds are held in fully-immobilized.'
. form hereunder, . DTC or ,,its suCcessor depository shall be deemed. to be. the .Re~istered Owner for.
. all purposes hereunder, and all ~eferencesherein to the Registered Owners. shall mean. I?TC (or
. any successor depository) 6~ its' nomi,nee, and shall not meari the owners of any beneficial interest.
in.such Bonds. .'
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.'" .If any Bond shall' be dulypre~ented for payint:nt and funds have notbeen duly provided,
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.: by the, City on. ~uch applicflble date, th~niriterest shallcontiIlue to accrue thereafter on the unpaid.
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pril!cipal thereof at th~ rate stated on suc~ Bond'unti~ it,is paid.
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(d); . Use of Depository.
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'. (1)- The. Bonds. shall ber.egistered initially in'the name of "Cede&' Co.'~, a's.
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.. nominee of nTC; with one Bond maturing on each. of thci. maturity dates for the. Bonds in a'
.denomination colTesponding to' the total principal therein designated to mature on such date.', .
'Registered'ownership of,such.~mmobilizedBonds,or any portions thereof, may not thereafter be .
tninsferted except. (A) to any 's~ccess'or ofDTC or ~ts ?omi~ee, pro~ided that any such successor'
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. shall be quaiified under'anyapplicabl~ laws t~ provide theservi~eproposed to be provid~d! byit; ....
(B) to any substitute depository appoi~t'ed by the Treasurer pursuant tosubs~cti~n(2) below' or. . '
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,suchsubstitutedepository'~ successor; or (C) to any person as provided in s~bsection (4) b'elow.'
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(2)' , 'Upon the resi~ationof DTC, or its successor (or any ~ubstitute ':dep,ository ,
or jts s,uc~essor) ~om its funchons as depository or a determination by the Treasurer to '
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disc,ontinue the system of book entry transfers through DTC or its successor, (or anys.ubstit~te '
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de~ository' or its successor), the Treasurer may hereafter appoint a substitute depository. 'Any ,
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such substitute depository shall he qualified 'under any applicable: hlWSto provide the services
,proposed to be provided by it. '
,(3) " In'the case of any transfer pursuant to clause (A) or (B) of subsection d)
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above; the Registrarshall, upon receipt of all outstanding, Bonds, tog-ether with a written request
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: ",of the 'Treasurer, issue a single new Bond for each maturity then outstanding, ,registered in the
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name of such, successor or, such substitute depository, or their nominees, as the case may be, all
as specified in such written request of the Treasurer.
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, ',' (4), ,In the event that (A) DTC or its ,suc~esso:r'(orsubsiitute depository o~ its,"
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-successor) re~ign~ from its functions as depository, and no substitute depository can be o?tained"
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, or (:8) the Treasurer d~terinin~s that it is in the b~st 'interest of the beneficialown~rs of the Bonds,
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. that such owners be able to o'btain the Bonds in the, form of certificat~s,ihe ownership of such
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'Boilds may then be transferred to, anyperson or entity as herein provided', and shall no longer be
,held in'fully~imIhobi1ized form. The Treasurer shall deliver ~ written request to the Registrar;
, ~ '. . . < '. ': _ " u.. . ,
- . "' n :..'. " , . , '
, , : ... together with a. supply of definitive Bonds, t6 issue Bondsas herein provided in anyauthorlz'ed.'
. . . ., . . .
'. ,
. , . .
, ,denominat,ion. Upon receipt by the Registrar. of all then. outstanding Bonds together with' a
" " . ,,' ,
. ." . '. " . . , .
. .
. . . . , , .
. '.' .' "". .
''':,ritten request 'of the ,Tieasurerto the Registrar, new Bonds sh, all.be i,sslied in the, appropriate'
, , ,
,-I . '
. "'" .
denam'inations and registered in' the names of such persons as are' requested in' such :wiitten :, '
, '. . -
, , ,
, request.
. .: ~,
, -9-
, P:\CMW\CMW7BR ,,' 1'0124/06
, .
(e) "RegistrC!tion of Transfer ofOw~ership or Exchange;Changejn'Denominations.
. The'tnlnsfer of any Bond may be registered and Bonds may be ,exchanged, but ~o transfer of any"
.;
. . . .,'.
" '
. . . . .
, "
'su~h ,Bond shall be valid unless it is surrendered to the' Registrarwith the assignment form'
, ,
, ,'appearing ?n such Bond duly ,executed by the Registered Owner or such Registered Owner's duly,
-. . .
authorized agent in a manner satisffJ,ctory to the Registrar. Upon such surrender, the Registrar,
, ,
shall cap.cel the surrendered Bond. and shall authenticate' and deliyer,' without charge 'to the
'. ' ..
, "
~egistered Owner or, transferee therefor, a new Bond (or Bonds at the opti?n of the new'
, "
. ~\ j . . ' , " . ' . , ' .
RegisteredOwner)of'the same date, maturity and interest rate and for the' same aggregate"
~ ; .
. , '. . , . " :,.
, ,
principal amount in any authorized denomination, naming as Registered Owner the person or'
'.. , ". ' ,
persons listed as the assignee, on the assigiunent formd appearing oIithesurrender~d. Bond, in
, ,
, . - .
. . . ' ,
.' , . .
exchange for such' surrendered and, cancelled Bond. Any Bond may be, surrendered to the
,(, ' ,,','
, ,
,Reg~s~~ar and exchanged, without charge, for an 'equal aggregate, princip'aI~h1ount of Bonds of :
. - . .
'. . . '.
, , ,
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., . ,
'. . , .'
the s,ame date,' maturity and interest rafe, in any authorized denominat~on. ,The ':R..egistrar shalinof "
, '
. . , "
be' obligated to register the transfer or to. exchange any Bond during the ,,15 days preceding any .
",' :inter~st p~yment or prindpal payment date any such BO,nd is to be redeemed~,
, ,
, , '
, ,
(f) Registrar's Ownership, of Bonds., The Registrar may, become' the Registered,',"
,Owl).er of ~ny. Bc>ndwith the' same rights it would have if it- were not the Registrar, ,and 'tothe '
e'xtent. permitted by law, may act as depos~tory for and permitany of its office~s or dire~tors to'
. . ' .' '., . .
aetas member 'pf, orin any other capacity with'respect to, any comm, ittee formed to protect the
, ,
, ,
, ,
. right' of the Registered Owners of Bonds. ,
(g) 'Registration Coyenan~. The<City ,~ovenartts that,. uIltil all Bonds have 'been '
surrend~red and can~eled, it will maintain a system for recor~ing the. ownership of each Bond
. . '.
, , ,
, ' ,
. . ,. .
that complies'w,ith theprovisi,ons of Se~ti~~ 149.ofthe Cocle. "
-10-
P:ICMWICMW7BR
10/24/06
.' )
'.f; ','
(h). Place and J:4edium of Payment. Both principal of and ,interest on the Bond?, shall
, ,
,'be pay~ble in lawful ?1on~yof the United States of America. Intt?rest on 'the Bonds shall be
calculated on the basis of a year of ;360 ~ays and t\Velve 30-day months. For so long as all Bond,s
'are in fully immobilized form, paYments' of principal 'and interest thereon shall be made, as: '
. .:' . , . . .' , . .
, '
provided in accord~ncewiththe operational, a~angements of DTC referred}o ,in the Letter of ·
" .. ,'.. ,
, " . ,
the Bonds shall be yaidby check or draft mailed to' tIfe Registered ,Owners at the' addresses for' '
,such Registered Owners appearing 'on the Bond Register 'on the. fifteenth day. of the month
. ',', ' ", .' " '
, preceding the intere'st payment date, or upon the written request of a Registered' Owner of more
. . . '.,
th~m $1',000,000 ot Bonds (~~ceived by the Registrar at least IS ,'days prior to the applicable'
. " .
, :.payment date), 'suchpayment shall be made by the Registrar by wire tr'ansfer to the aC~~:)1int'" '
, , ,
" ,
'within the continental United States designated by the R~gistered Qwne~. Principal 'of the' Bonds '
~hal1 be payable'~pon presentation and'surrender of such Bonds by the Register~dOwners:~tthe'
\ r .~
'principal office of th~ Registrar.
, ,
Section 5.', '. Redemption and Purchase.'
, .
',(a)' 'OptionatRed~mption.. T4e Bondsn,iaturing on or prior to Decemper 1,'2016 are, '
, , ,
, not subject to redemption prior to their scheduledmaturiti~s. Th~ Bonds maturing on and after
'\ , . . . .
'December 1,2017 are s~bject to redemption a~,theoption9fthe ~ity'in whok, or in part oriany',
, ", dat~ 'on or after D~6e?Iber 1, 2016 (?nd if in part, with maturities tO,be ,selected by the City) aLa
. . . '. , .
. ~ I
" pric'e of par plus a~cruedinterest, if any, to the date o'f ~edemption. ',1,'
, '\
(b) ~andatoryRe4emption. ',Unless 'previo:usly'r,edeemed pursuant t? the for,egoing',
optionaL redemption :prOVlSlons, the 'Bonds maturing on December 1, 2014: are ,subj'ect to,'"
'-~ , ,
-11-
, P:ICMWICMW7BR ' 1.0/24/06 '
mandatory .redemption at a price of par plus accrued interest to the date of redemption in the
\ . . . .
. .
':following .years in the following principal amounts':.
Year
Amount
2012.
2013
2014*'
.
$ 190,000.
200,000
205,000
* MntUrity.
. . ,
, 'Unless previously, redeemed pursuant to ~he foregoing optional. redemption provisions~
" " '. ., ....
'. . '. . ,
. " .
" the Bonds maturing on December .1,' 202 rare subj ect to mandatory redemption ata price of par
plus accrued interest to the date of redemption in the follo~ing years' in the following prinCipal " .
", amounts:.'
Year'
, . Amount
_/
2019
2020
2021 ~ '
$ 250,000
. 260,000
.,270,000
. .*' Matutity.
. '.'.'.' , '. .
,'.Unless previo':lsly:redeenied pursuant to,' the foregoing optional.. redemption provisioJ;1s,
. . . ..... . .
the Bonds maturing on Decemb,er 1, 2026 are subject to mandatory redemption :at a pric~ of par " . :'
. . .'. -
, plus. a~crUed in~erest to ,the date of redemption in ~he following years in the',following prinCipal .-
, . , t
. amounts:.
{ ,
" .
. Year
Amount
. 2022
2023
2024
2025'
2026*
* ' Maturity.
i'
$ 280,000
. .' '295,000'
305,000 .'
320,000. '
. 335,000
.... ~12~
i.
P:\CMW\CMVV7BR . 10124/06
;;:.
(
\ '
,(c) .
" ,
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'. '. . .
, ,
Purchase of Bonds for Retir~ment. ,The City reserves the right to purchase any ,of' '
',the'Bonds offered to the City at any pIjce deem~d reasonable to the Treasurer~
, (d)' ' Selection' of Bonds for Redemption. If Bonds' are called for optional redemption,
. >'",. ,
, . . '.
, . .
,the series and, ,maturities of Bonds to be redeemed shall be selec'ted by the City. If any Bonds, to' '
Y'. l,'
'b~ redeemed ( opt~onal or mandatory) then are held in book-entl)'~only' form,- the selection of
. ' ,
'.,' . . ". .
, , ,
~,Bonds to be redeemed within a. m'aturity shall be made in accordance ,with: the operatiQnal '
r " , ' ' , , .
arrangements then'in 'effect at DTC. ' If the' ~onds to be redeeIped.are no longer held in
, . . . '.
. . . .' '
'book-entry-'orily foim,'th.e seiection of such Bopds to beredeemed shall be made in the following'
'. manner. If, the' City redeems at any. one time' few~r than' all of the Bonds ,having, the sq~e
, n~atuIjty date, the 'partic.ulat Bonds or portions of Bonds and maturity to be redeemed shall. be,
"\
seleCt~d by lot utiliz~ng a. random selection process reasonably determined by the 'Registrar} in
. '
'increments of $5',000. In the cas,e of a Bond of maturity ina denominationgreat~r than '$5,000-"
the City and Registrar shall treat each Bond of that maturity as repr~senting s'uch number-of' .
. .' .
. , .' . '. . " '. . '.
,separate Bonds each of the denomination of $5,000 as is obtained by dividing the actual principal'
. , . . ...
'. . .. .' . .
amount of slich Bond of that maturity by $5,000. In the event that only a portion' of the prinCipal'
. " "'.
'" sum of a Bond i,S redeemed, llponsurrender of such Bond at the'principaloffice bfthe Registrar' "
, thereshall'pe issued to the Re~istered Owner, without charge' ther~for, for the' then~unredeemed :
, balance, of the prin~ipal.su~ thereof a Bond ()r, at the option of the Registered ,Owuer,Bonds' of
" lik:e maturity and interest rate in al1Y of the denominations h~rein authorized. .
, ,
, .' ,
(e)' Notice of Redemption. . Written notice of:anyredemption of Bonds prior ~o
. . ,. . ' . . r) '. ' . , . " "
, , .. (, . ' " ,... ", ' "
. maturity.shalI be given by the Registniron behalf of the City by first class mail; postage prepaid; ,,'
"not less tban 30'days nor 'more than' 69 days 'before the date fixed for redemption to" tlle . '
"" ;
,. " . . '. ,
,~~gistered, Ow~ers 'of Bonds that are to be redeemed at'their last addresses' shown on the' Bond'" ~
-13-
P:\CMW\CMV)/7BR,
10/24/06 '
~:
Register. ' ,ThIS requirement shall' be deemed complied with, when' notice IS mailed to the
,Registei-edO~l1ers at their last addre'sses shown on the Bond Regi~ter, whether, or., not' such'
, ,
" . .
notice IS actually received by the Registered Owners.
So long as the Bonds are in book-entry only, form, notice of rede?1pti~nShall be, given to
, ,
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Beneficial Owner~ of Bonds to be redeetp.ed' in accordance with the operatibnalai-rangeinent~
' ,
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, , ,
then in eff~ct at DTC, and neIther ,the City nor the Registrar shall be obligated or 'responsible to ,
confirmtnat any notice of r~demptiort is, in fact, provided to Ben~ficial O\Vners. "
" ' ' , ' . ' < '." .
, Each riotice of redemption prepared and given, by the Registrar to Registered Owners of'
. . .' - , ' " . <" - ,
, ,Bonds shall contain the following information: (1) the redemption date, (2) the redemption price,
, '~ '
. .. .'.
,,: (~) if fewer'than all outstanding Bonds areto be redeemed; the identification by maturity and
).'
senes (and, in the cas~ ,of partial redemption" the principal ' amounts) of the Bonds to be,'
, '. .
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,', redeemed, '(4) that (unless the ~otice of redemption is a conditional, notice, in which case the,
" ,1
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. -. . ."
, n~tice shall, state that' interest shall cease to accrue:from 'th~ date' fixed for, redemption{f and to ' "
. ,. ,
th~ extent th~t ,funds have been provided to ,the Registrar' for: the redemption of Bonds) on .the- " "
, , , -
" '.~ate fix~d for redemption the redemption price ,will become due and payable: upon, each Bond or ..
p'ortion call~d for redemption, and that interest shall cease to: accrue from' .the date fixed 'for
" . ' _ J .
~ . . - . '. -
"redemption,'(5}that thy Bonds:areto be surrendered for payment a~ the,prihcipaloffice oi the
Registrar, (6) ~he CUSIP numbers of all Bonds: being redeemed, (7) the dated ',date of the Bonds
- - .'..
being redeemed~ (8) the rate' of interest for ~ach' 'Bond being redeemed, (9) the d~te 9.f the notice,'
, '
, and (10). any othe~ infotmation'deemednecessary by the Registra; to igentifY'the Bonds being
, "redeemed.'
- -14.:-
, P:\Cf.v1W\CMW7BR ~ -10/24106
,-\
, , , 0
, '
, ~' , ,. , . ,
Upon the paymeI?-t of the redemption price of Bonds being redeemed, eac~ check or othe'f ,
) ,
, . '.
transfer of funds i'ssued fors.uch purpose shall- bear .the CUSIP' number identifying; by i,ssue a~d
" "
, ", , "
,l"l1~tturity, the l?onds being redeemed with the proceeds of such check or other transfer.'
- .' , "
'. '. 0 . . " .',' .' .
(t), " effect ~f R'ede'!lption. Notice of an optional redemption may be co~ditional Q.pon
, ' ,
.the conditions set forth. in set forth in the', redemption notice. Unless' the City has revoked a ,
, notice: of redemption '(or unless 'the' City provided, a conditional notice' al1d ~he 'conditions' for, '
,,' redemption set forth therein are not, satisfied), the City shall transfer to the Regi~trar amounts,'
.. " . "
" ,
, ,
,that~ in addition'to other money, if any;. held by the Registrar. for such purpose, will be sufficient
,I,
, . . ,
' , '
,", - . .. '., ' .
to redeem, on the'da~e fixed for redemption~ all the Bonds to be redeemed: If and to the extent
, ,
., "
" tl1at funds have been provided to the Registrar for the redemption o.f Bonds then such Bonds shall,'
become due, and pay~ble on the date fixed: for redemption and interest on such Bond shall ~ease
to' accrue from and after such date.
(g)
, A;n~ndme~t of Notice Provisiohs.~ ,The'foregoingnotice,' provisions of this sectIon" '
'. ,
, .
· -including but-not limited to the inf9nnation to be incl~ded i,rt redemption, noti'ce~ 'and the persbn~, '
, , .
'designated,to receive notices; maybe, amend~d by additions, deletions a~d changes to maintain'
, ,
compliance with. duly promulgated reguhltions and r.ecommendations regarding notices of
redemption of municipal securities.' '
Section 6. ,
Form of Bonds. The Bonds shall be insubstantially the following form:
. " ,
, ,
" ,
STATEMENT OF INSURANCE,"
, ,
,Finan~ial Guaranty Insurance 'Policy, No. (the' "Poli~y"): with: respect to
'payments due for principal of and interest on this bond has :been issued by Ambac"
Assurance Corporatio'n ("Ambac Assurance").' The Policy has been delivered to -The,
BankofNew York, New Yor~, New Y,?rk, as 'the Illsu~ance Trustee under said Policy and
", will behd'ct ~ysuch Illsurance Trustee, or any successor insurance trustee. The Policy is,
on file and available for i~spection at the principal office of the Insurance Trustee and a.
, '~o'py ,thereof maybe, secured from Ambac Assurance or the msurance Trustee., All '
~15-
P:\CMW\CMW713R ',10/24/06
(to
, ,
. '
. . , . " .
< , - .
payments requi~ed to. be made under the Palicy shall be made 'in accordance with the'
, ,provisions thereof. The owner of this bond, acknowledges and consents to the
subr()gation rights of Ambac Assurance as more fully set forth in the Policy.,
'UNITED STATES 'OF AMERICA
NO.
$
. '
, STATEOF,WASHINGTON'
, ,
CITY OF YELM, WASHJNGTON
LIMITED TAX GENERAL OBLIGATION BOND, 2006 ,
INTEREST RATE: %'
, REGISTERED OWNER:
· , PRINCIPAL AMOUNT:
MATURITY DATE:
CEDE & CO. "
CUSIP NO.:
, ,
. . . . . . . '. .
The City of Yelm" Washington '(the '''City''), hereby acknawledges itself to owe and far
value received promises to,pay to the Registered Owner identified above,' or registered assigns,
onJhe Ma~urity Date 'i<ientified abave, the Principal Amount indicated, above ,arid' to pay'interest
thereon from November 8, 2006,',ar the mo.st recent'date to. which interest has been paid or duly
provided foruntilpaymertt of this bond at the Interest Rate 'set forth above, payable'semiannually ,
,on the first days of each June'and December,co,mmencing June 1; 2007. , Both principal of and
interest on tl).is b?nd are pay?bh~ in lawful money of .the United States .of America., The fiscal'
agency of the State of Washingtbn has been appointed by the City as the authenticating agent,
paying agent and registrar for thebonds of this issue (the "Registrar'} For'so long' as the bonds" "
, of thIS issue are held i~ fully immobilized form, payments of principal and interest thereon shal~
be rriadeas provided in accordance with the operational arrangements of The Depository Trust
Campany ("DIC") referred to in the Blanket Issuer Letter .of "Representations (~he ,"Letter of,
Representations") from the City to DTC~ ' , ' , ,
. .' . - , ,
" ' T~e bonds of this" issue are issued' under, and in accordance with the provisions' of the;
Constitution and applicable, statutes of the State of Washington and, Ordinan~e No. 860 duly
, passe~by the ,City Council on October 24,2006 (the "Bond Ordinance")., ,Capitalized terms used : "
J , in this b~nd have the' meanings given such terms in the' Bond Ordinance.,
. . . ..
' , ,
. . . . . , . . , .
,',,: This 'bond shall no(,be valid or become obliga.tory fOI: any purpose or beentit1e~ to any
security or benefit'underthe Bond Ordinance until the Certificat~of Authentication hereon shall
: have been manually signed by-or on behalfo,fthe Registrflror its duly designated 'agent. ','
I ". . .
~J . .
" , ,This bond is' one of an authorized i.ssue of bonds of like date, tenor, rate of interest. and ;,
'date,' of "maturity, except 'as to. number and amount 'in the 'aggregate principal' amounrot'
" $4,67 5,000, ~nd is .is~ued pursu~ntto the Band, Ordinance for providing funds, for, the acquisition ' .
, 'j
" , -16-
P:\CMW\CMW7BR
10/24/06
. . - . .
'9-nd construction of a public 'safety building and' acquire munic'ipalmachinery and equipment and
, t6 pay costs of issuance~
. ,. .
, , '
. . . . '.',
, ,
The bonds of this issue' are subj ect to ,optional and mandatory redemption prior to their,
, " stated maturities as stated in the BoncfOrdinance. ' ,
'. . .
The City hereby irrevocably covenants and agrees with the owner of this bond' that it will
'include'in its 'annual budget and levy taxes annu:~lly, within and as a part of the tax levy
, permitted to cities without. a vote of the electorate, upon all the property subject to taxation in
, amount~ sufficient, together with other money legally available therefor, to pay the principal of
, and in,terest on this,bond a,s the same shall become due. The full faith, credit and resources of the'
, ,
City are hereby irrevocably ,pledged for the annual le~y and collection of, such taxes and the'
',prompt, payment of such princjpal and iriterest. ' ,
. ~ .
, ' ,
The City hereby designates the' bonds of this: issue 'as '~qualified tax~exempt obligations"
for investment by financial institutions under Section 265(b) 6fthe'qode>
" ,
',', ' The pledgeor tax levies fat p~ymen~ of principal of and interest on the bonds may be "
" discharged prior to maturity of the bonds by making provision for the payment thereof on the
, terms and conditions set forth in the Bond Ordinance.
, " ',., I~ is hereby certified that aU ac~s, co~diti~ns and things required by the' Constitution and'
'statutes of :the State of W~shington to exist, to have happened, been done and performed
, .. :. precedent to and in the issuance, of this bond have happened, been done aI?d' perforined and that '
the issuance of this bond and the bonds of this issue does not violate any constitutio~al, statutory
, or other limitation upon the an:ount of bonded indebtedness that, the City may incur. ;.
. , . . ,
. , .' '
, ' IN WITNESS WHE{~.EOF, the City of Yelm has caused this bond t()be SIgned by thy,
, , ': ~mahual or facsimile signature of its Mayor and attested by the'manual or facsimile signature of
its Clerk-Treasurer,' and the seal of the' City to be impressed or imprinted hereon, as of this 8th
day?fNovember, 2006.~
, '0(,
> "'., .
CITY OF YELM, WASHINGTON
(SEAL)
Islfacsimile or manua:l signatur~
,",Mayor, '
, : \
. Attest:
, ,
Is/ facsimile or manual signature
: City Clerk-Treasurer,
The Registrar's Certificate of Authenti~atiQn 'On the Bonds shall be in' substantially the:
, JollowingJorm:
. . .,(
-17..: .
, .P:\CMW\CMW7BR
,10/24/06
. ~~
CERTIFICATE OF AUTHENTICATION.
. .
, . This bond is .one of the bonds described in the within-~entioned Bond Ordinance'and is .
.Qne of the Limited Tax General Obligation Bonds,2006 of the City ofYelm, W, 'ashington, dated
~ .~ Novepiber 8~ 2006. "
WASHINGTON STATE FISCAL '
AGENCY, as Registrar
By'
.' .
.Sectio'n 7.
. . . ,
'. ,
. 'Execution of Bonds. , The 'Bonds shall be ex~cuted on p,ehalf of the City'
.. . .
'. '.
' ,
,withthemanualor'facsi~il~ signatures of the Mayor and Treasurer, and the seal of the City shall ~
. be ,impressed, imprinted Or oth~rwise reproduced thereon.
Only such . Bonds. as shall bear, thereon a Certificate bf AuthenticatIon, In ,the form'
. hereinbefore recited~ ~anually executed' by the Re.gistr~r, shallbe'v,alid or obligatory. for: any
.. . . .' , .
. purpose or entitled to the benefits of this ordipance. .Such Certificate of Authentication shall be
. , ,
conclusive. evidence that the Bonds so authenticated have been duly executed, authenticated and ..
'. . . .
"delivered hereunder and ate entitled to'the benefits of this ordinance: , '
. " ,
Ih case either of the officers who shall have executed the Bonds' shali cease' to be ,an ...'
. . . .
' officer' or officers ~f the Gity before the Bonds so signed shall have been authenticated or
, . .
. '. , . .
'. . . . ,
. Q~li ve~ed by the Registrar,o~ issued by the City, such Bonds may nevertheless be authenti~ated,. .
. '. ,j" . , .
" ,
. delivered and Issued and uponsuch authentication, deliveryand issuance,shall be as .binding
, , . . . ~
upon the Cjty as though those ~ho signed the same had contiimedto be such officers of the City.
. "
, ,.
, Any Bond may be signed and: attested on behalf of the City by such persons' who. at the, date'of
,t~e actual' execution' of such Bond, , are. the ,pr~pe~. officers of the City, although at the o~ginal'
: date 'of such Bond any such person shall not have been such officer ofthe'City:
-18-
, : P:\CMW\CMvY7BR . 10/24/Q6
". . ~.
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"-
. (.
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, j ,
Section 8.
Tax Covenants~ 'Special Designatian.
(a) . Arbitrage Covenant.'. Th~ City hereby cavenants that it will' nat mak~any ,.use af"
...J
. the' pr~~eeds of sale 'af the Bands ~r any ather funds aJ the City which may ,be deemed to. be
, .
. .
. '. ," .
. , .
'. praceeds of such. Bon~s,pursuarit tQ" Sectian 148' af the Cad'e and applicable. regulations'
" . . thereun:d~r~hichwill cause the Borlds to. he "arbitrage bands" within the me~ning ~f said section
, . . " '. ' . .
., . . . .'.", ' . . - , '" .' . .
'and regulations: The City will complyw~th the ~equirements af Section 148 of the Co. de (or any
. . . .' .
. successar pravisian thereaf applicable to. the Bands) and the applica1?le regulatiansthereul1der '
'~ . .
, I . " .'
} .
. thraughaut the term of the Bands.
. .
. . .'
. - . ~'.', . ,
'.(b) ,.' Priva.te Person Use Limitation for Bonds. . The City caven~nts that for as longas
, the Bands are outstanding, it will nat permit: .
'. .
. .
, '. .
'(1) .' Mo~~ than 10% af the Net Proceeds of the' Bands to. be allacated to any
, ", Private Person Use; and'
. (",
(2)
Mare ',than 10%, of the princlp~l ar interest p~yrrients. an the'BaI1:dS ,~n a. . .
. . - .
Bond Year to. be directly or indirectly:. (A) secured by any interest in praperty used or to. b~ used'.
. . : .
". "for any Private Person Use: 'ar sec1+red by payments in' respect af prap'erty used or to be used far
( ,
. . ~ . . .' .' . . . ",. . .
. 'any Pri~ate Person Use, or (B) derived 'from payments (whether ar: natmad.e to., the City) i~, .~
1 '. .' ~. .' . . . '" ,.', . .
,
. . . . .
. -
: 'respect of property, or':borrowed money, used ar, to. be us.ed far any PriyatePersan Use:' "
"The City Jurther cavenants that,-if: .
~. , .,: . '.. . \
'. '(3)-' . More than, five percent ,of the NetPraceeds ,of 'the l3. onds,q are' alloc~ble~o
. ,
. .
. .
anyPrivate Person Use; and . .
. .
'(4) , Mar~ than five pe~c~nt of the principal 0; ipte~~st payments 6h ~he Bonds .:'-
I;'
. in a Band, Year are (under the term~afthis ardinance or anyun~~rlying arrang~ment) directly or,
. ..
'indirectly: . (A).?ecufed by any interest in praperty used o~ to. be used for any' Pri.va~e P~rson Use,,:
. . ~
-19- "
. .
, I,.'
P:ICMWICMW7BR' . ..... '10124/0'6"
. .... > ., .'
" . , , ,,,\., . . - . ' , "
" or secured 'by payments irirespect of property used or to be ~sed fot any Private Person' Use, of
',' :"(B) derived from payments (whether or not made t.o the City) inrespect ofpr~perty, of:borrowed
!Doney, us~d ot to be used for any Private Yerson ~se, then:, (i) anyPrivat~,Pers.on 'Use of the'
, ,
, "
, , ,
, ,
. .. .
-projects, described' in subsection (3) hereof or ,Private Person Use ,payments described in
. . . . ., -', .
subsectlon (4) ~ereof ,that is in excess of. the, 'five percent limitations 'described in 'such
'"'subsection.s (3) ~r (4) will be' for ,a Private Person Use'that is related to the ~tate orl~cal
'governmental use of the projects financed or r~financed with Bond'proceeds, and (ii) an~ Private
. . . .
. . ',. . '." .' . > . . . .
, Person Use will not exceed the amourit of Net Proceeds'ofthe Bond,S used for the stitte'or)ocal
,.', gove~ental use portion of the projects to which the ~rivate Person Use of such portion of such'
, ,
projects relates. '. The ,City fuithe~covenants that it will comply with any limitations on the use 'Of
" . the 'proj ects by other than state and .loc~l gov~mmenial users that are Ileces~ary, i~ the opini,oii .of '::
, ' ' '. . . "', : . . . '.
its. b:ond counsel, to pr~sefve the tax exemption ,of the interest on the Bonds. T, ,he covenants' of
, . . . .' .
, , . ,
, . thi~ seGtion are specified '-s~lely t.o assure the continued exe~ptio~ fr:om regular income taxa~i~n "
....': ". " ,.: " . 1.
" , '. of the interest 'on the Bonds.
"(c), Designatio~.', The' ~City hereby designates theB~nds as "qualified tax.,e.xempt
" ,'obligations"for purchase by ~nancial instit~tio~s.pursuant to Section 265(b )(3) ?fthe Code. The
"City: doesno,t anticipate that it will Issue more ,'than $16~~OO,OOO,in qtial~fied tax-exempt
" ,
" ; obligati?nsduring '2006~ .
-.' . . , '
, Bond Fund and Provision for Tax Levy Payments.' There is hereby created . .
, Section ;9.
iiJ 'the ;offi~e 'of t~e Trea~urer a special, fund to be, drawn up()n , for: the purpose' ofp~ying the
, , . t .
. , p~~cip~l of~nd interest on the B6~ds to be knowna~ the "Limited Tax, General ,OblJgation Bo~d' ",'.: '
. .' " -' . .' ..... I ;'. .' , . .
"<Rede~ption Fiuid; ~006" (the "Bond 'Fund',')..' The tax.es; hereafter levied Jor tl~e' purpose 0[:' .
'. paying priricipalof.and.inteiest ~~, the Bonds and, other,fund~ to. ~e used to pay the Bonds shall "
: - ,. .'. ", '" . . " '. '
'-20-
P:\CMW\CMW7BR ' , 10/24/06' "
, I
I
:.~
'. " .
,be deposited in ,the Bond Fund no later than the date such. funds are :required for the payment of
. ~ . . ,
. " . '". . .
. ." ' .
, principal o(and' inte~est on the Bonds. Moneyin the Bond Fund not 'needed t?pay ~he interest or
. , ,
, principal next :coming. due may temporarily be deposited in such' institutions oi invested in such
, ,obligationsas may be lawful fpr the investment of City funds. ".
',' ;
'. '., . . . .
The City hereby irrev~}cably ,~ovenants and agre.es Jo'r as long as any of the Bonds ,are', .
. '. . ,'; . .'...
, .'. . '. .
. outstanding ~nd' unpaid that each year it will inc1ud~ in its budget and levy an ad valorem tax
, .
.' ,
" '
, Upci~ all the' propertY"wit~in t~e Gity subject ,to, taxat~on in' a.n amount that wil1~e sufficient?'
, . togethe~with all, other 'revenues and money of the City legally available for stich'pu.rposes, to p~y
" . - .. . , ' .
, the, principal of 'and' iI1terest o,n the Bonds as the same shall become. due. .' All of such tax,es so.
'. " . . '. . ' \ -
. , ,. . -, .
.' collected and any-other money to be used for suchpurpo$es sball be pai<;l into .the Bond Fund. ,
" " . .' , "
: The 'City hereby'irrevocabiy pledges. that the anllual tax 'provi~ed for herein to be levied., '
~, .'
. .
for~ the payment of such principal and ,interest sh~ll be within and as a part of. the tax, levy
. . . .
, ,
permitted to 'cities without a .vote of the p'eople, and that a sufficient portion of each annual levy '., .-
. ,~, . - ,'.. '. ' . ,. . .
, . "". '. .' .' . ~
, ,to be levied, and collected by the City prior to tl)e full payment oft~e 'principal of and interest on
, ,': th.'e Bonds ,will be and jshe~eby irrev,ocably set aside, .pledged and appropriated for the paYment ",
of the pri~cipalo( and interest onthe Bonds., The "full faith, 'cre?it 'and resources of the City are,
,hen~byirrev~cably piedged :for, the annual levy a~dcol1ection of said tax~s and for the prompt"e
:payrllen~ ~fthe':priricipal of and interest on the Bonds' as the .s~me shall bc:conie due. "
, Ie
. . . . . .
. . '.. .
Section 10. '<Defeasance. In the event that the, City, in orderto e.ffect ~he payment, ,
,~etirement or redemption, of any Bond, sets,asi4e in the Bond Fund or in another special'acc'ount," '
, " . ". ' .'. . -<. .' I .
. '. . ,
ca~h orhoncallableGovemme~t Obligations, or any combination of cash and/or 'noncallable
GovemmentObligations, inafi}ounts and maturities which, together with the known, eame_d, .
, '. . . . .
i~ccHne' the~~fr~~" are. sufficient to,'redee~ or pay and, retire such Bond ~n 'accotdancewith its
, -21- e
,P:\CMW\C:MW7'BR . " 10/24/0q
~ : . ~. ,'. ,
.~:
.' ::
, ,
. . . ,
, termsal!d to pay wh~~ due the inter~st an'd redemption premium, if a~y, thereon, and such. c'ash
, '
, ,
" .'
and/or noncallable Govemment Obligations are irrevocably, set' aside and p~edged for such
.!,.'
, "plirpese, then no fu~het payments need be made into the 'Bond' f'und for thepayn1ento~ the'
, , ,
principal of and interest on such ,Bond. 'The owner ,of a Bond so ,provided for'shall ,cease to be
, entit1~d to anyheri; penefit or security 01 this ordinance' except the right to receive paYment ef"
prin~ipal, premium,' if any, and interest froni ,such special account, and such B~nd sh~ll be
: ' ,deemed to be not ?utstartd~ng under this ordinance. \ '
, ',Within' 60 d~ys,of ,any defeasance ',of Bonds' the ,Registrar shall provide, notice ,of
,,','defeasanceof'-Bon~s to Registered Owners and to each :party. entitled' to receive notice In
"
, accordance with Section 13 of this ordinance."
'. .' .
. " ',..
. ,. , . '.' :
. , '. ,
'Section'11. Sale of Bonds.' The, City hereby ,accepts the offer of Martin, Nelson &' Co.,'
. , . ,
, " . '.- . . . .
. '"
"Inc., ,Seattle, Washington, (the"Uriderwriter") to purchase the Bonds ort th~ 'term~ an'~ 'conditions ',' "
.. . .
. . . .' , . ' . .
, setJorih in its purchasecontractdaterl 'as ,:of this date an~presented to the Council' ,on t~is date,.
.. , .
" ,
and ~n ,this ordinance (the "P~rchase 'Co'n(ract")~" The Mayor :an4l~r City Ad~inistnito~ ',are
. \.~ .'
. . . . . . , ,
hereby au,th<?rized to execute the ,Purchase Contract on be~alf of the ~ity:. The proper, City' ,
off.iciaJs are, hereby auth'orized:':and directed .to do ~vefyth~ng ,necessal)" for the prompt issuance,'
execution a~d' delivery of the Bonds to ,the Unde~riter and ~or the proper use~ and application of",
,.' the proceeds ,of such sale.'
- , ',' ' .
. \ " 1,'
The City ,hereby approves. the, Preliminary Official Statement presented, herewith to the.
. ' .' . " " . '. . -;. -, . ,-' ' .'.
. . Counci~and authorizes the Undern:riter's distribution of the Preliminary Official Statement in
, . .
, , ,
'connecti9n with the offering of the Bonds: .. Pu~suaIlt to Securities' and" Exchang~Commission '
. ' . Rule 15c2'-12 ("Rule .15c2-12"), the City hereby' deems the 'Preliminary Official Statement as
, , ,
,final as of its date except fOf,the omission of information dependent upon the pricing of the issue
. . t .' . ". . " .
,t ,
. -22-:
P:\CMWICMW7BR . . .. 10/24/06 .
. , , . .
: , . '.
'\ 'i.
and the, completion 'of the .Pur~hase Contract, such as offering, prices" interest rates,' selling'
, ,
. , '. ".
compensatio~, aggre'gateprincipal arri~unt, 'principalamo~nt p~r maturity, d~livery dates, and
, oth~r terms of the Bonds dependent on the foregoing matters.
\
: ,i
~ . . .' , - . '. " .
The City Administrator andlor Treasurer, are hereby autho~zedto review and approve ~n"
'behalf of 'the' City the final official ~tatement relative to t,he Bonds with s~ch addjtio'ns and
- \ ". .
ch'anges as may be deemed necessary or advisable to either of them: '
Section 12. Bond Insurance.' '
, . ,
, (a)' 'Acceptance of Insuran~e. ,In accordan~e ,with the 'offer of the 'Uncierwriterto
. . .' .' . , . . - '. '. .
, purchase the Bonds, the Council' hereby approves the commitmellt of the Insurer'to provide a,
. . '. .
, ,
bond insurance, policy gtlaranteeing the payment ~hendue of ptlncipal ()f and interest. on the'
, ".
. . '.", " .., .
'q Bonds' (the "Bo~d .Insurance Policy"). The Council further ~uihorizes 'and~irects,all proper",
, . ' . . ' ,- . .
\ ~ . . 1, _ , .' ,.',. .
, of~~ers,agents, -attorneys .and employees o.fthe,City to execute ,a cOinmitm~nt 'letter with }he "
'Insurer ~an~ to cooperate with' the ,InSurer in prep~ngsuc,h addition,~l: agreern,.ent~, certificates,,'
" and other document'atioIl. on behalf of the City as shall be necessary or adyisable in' proviqipg f~r.,:
the Bond fusuranc,e Policy.
. ". . '
. . < '. ", \.....' .: t., . . .
'.(b)' 'Payments ,Under. the, Bond Insurance Policy.: ' As ~ongas the ,Bond Insurance
, Pblicy-shall'be in full fo~c,eaI1ci, effect, the City'anq the"Registrar a~ee to compI)' withjhe
'following provisions:
. , . .
'. . ,
, .
, . ",' < F.
(1) If" at least one' day prior to an: interest payment date~,the City"of the
, " Registrar determines that there will be insuf~cient funds in the Bond Fund to pay the principal of , '
,or, int~resi on the Bonds on, 'su~h interest payment date, the City o'r the Regi~tr~r shalf so notify:, '
, the Insurer. Such notic~' shall specify.the amoun(of'the a~ticipated deficiency, the Bond's t6
, ,.' '. . ,
. , . '. ,
which such deficiency isapplicableand whethers~chB~nds win be deficient as to principal or
"
~23-' '
P:ICMWICMW7BR '10/24/06 ,
interest, o~:b()th. If the City or the Registr~r hasrrot s~ notifi~d the InsureratJeaston~ day prior,
, ,
. - . .
' "to an ~ntere~t paYment, date, the Insurer ,will' m'ake paYm~nts of principal or interest due pn the' "
. '.' . , . ' . ',,' " .
Bond~ on or before the first business day next following the'date on ~which 'the Insurer shall have
,received'noticeof nonpaYment from the ,City of the'~egistrar.
, ,
, ,
I .',
(2) ,The City or the' Registrar shall, after gIVIng notice to' the Insurer as ':
, ,
proviq,ed in' subsection(l) above, 'make available t'o the Illsurer and, ~t~hci Insurer's,direction, t6
, TheBankbf New York; as insurance tru~tee for the Insurer or any successor insurance trustee',
. , ". . .. ~, .
(the "Insu,rance Trustee");' theregistration 'books of the Ci~y maintai~edby the Registrar, and all
c recor~s relating to, the Bond Fund maintained under thisordiriance.
,\
. ." - , ., '
, (3) . 'The 'City or the' Registra~shall provide the Insurer ,and the Insurance
Trustee with a li~t of registered owners of Bonds e~titled to receive principal or interest payments ' \ , .
from the Insurer under the terms of the, Bond Insurance Policy, and's~a.ll make arra~gements with"
, ,', . "" . / " ' ,
the Ins~nince Trustee (i) to mail checks or drafts tQ: th~ reg~s~ered oWners of B~onds entitled to '
. '. .- . -
,,'receive full or partial 'interest payment~, from the'Insurer, 'and (ii) to pay principal ~n Bo'nds
" ,~urreridered to the Insurance Truste,e b~, the ~egistered owners of Bonds entitled to receive full or , "
" ,
: partial prin~ipal p~Yinents from the Insurer.
. ". .
" (4) The City or the Registrar shall, at the time it'pi~vides, notice t.o the Insurer,:
.' , ," ...' .
pur~uant 'to, subs~ction (l) above" notify registered ,o~ne~s' of Bonqs 'entitled to' rec'eive 'the,
, , ,
'\ . .' "
. payment of principal' or interest thereon, from' the Insurer (i) =as to, the fact of such entitlement,
(ii).'that t~e Insure~ will remit to them ~1l or a part' ofthei?terest payments next comi,ng dlleupori "
. . . . . .
' '. "
proof,of'bon~holder" entitlement to,"interest payments and delivery, to the Insurance Trustee, in
forinsatisfadory to', U~e }nsur~nce Trustee, ofan appropriat'e as~i.gnment of the registered owner,' s,
, , '
'. . , .
,rig~t. topa~ent, (iii)~hat 'should they be' el1titledto receive full payment of princ~pal from the"
1,. '
. , ~.. . .
-24-'
P:ICMWICMW7BR ~:
,10/24/06 '
, .
I'"
, €.~ '
:lm;urer, they must surrenqet their <Bonds '(along with an appropriate instrumen~ ofassignment"
, ,
, '
satisfactory to the Irisurance Trustee to. permit ownership of such Bonds to be regist~red 'in'the
, - . , . ' ,
, , ,
, "
, . , .' .
, ' . "
, , '
, , ,
,.' , , -
'n~ine of the Insurer) for payment tot?e Irisurance T.rustee~ and riot the:Registrar, and (iv) that
. . "" , .
'/
, '
';should they 'be' entitled to receive partial payment of principal" from the Insurer, they mlist
, '
surrendettheir. Bonds 'for-payment thereon first to ~he Registrar, who' ~hall note on'such Bonds
, "', ' ' , ,'J , , " '
, ,the portion of the principal paid by the Registrar, and then, along with an appropriate instrument
, ,
of ~ssignment satisfactory tothe Insufance Trustee, to the insurance Trustee; Vll1ich ~ill then pay
the unpaid portion of principaL
\'
, ,",' (5),
" ,
In'the event that t4e Registrar has notice ' that any p~Y1nent, of principal of.'
'. " .
. , . .. , .
or interest on a ,Borid which' has be~ome pue for payment and which is made to a bondholder 'by ,
. " " " . ,,'
, ,
or on :qeh'alf of the City,has been deemed a preferential transfer and theretofore recovered ,from,:
, ,
'. . . .
, , ,
" : it,S r~gi~tered owner pursu(int to the United States Bankruptcy Code by a trustee, in ~ankruptcy in " '
'acc;ordance :,witJ;1,the final"nonappealable order of a court ha~ing competent jurisdiction~ ' the'
Registrar shall, at. the timethe fusurer'is notified pursuant to subsection (l)~bov'e, notify all
'registered 'owners that in'the event that. ~ny registered oWh~r's .payment ,is so recovered, such
regis.tered owner~ili, be entitled 'to 'paYfl?~nt ,from the' insurer"to, the extent of such 'recoyery,if
'.) '. .', . . ":", . .
, sufficient .fundsare, not otherWis~ available', and the Registrar' shall furnish to thelnsurer '~ts '
, "
-records' evidencing the :payments of princip~lof and intereston'the Bond~, which ha~e'been '~ade, "
, , ~ . .
, "by the Registrar and sub~equently recovered fromTegisteredownersan~ the dates on which such
payments w~re made. '
'(6) "', In "addition to ,tho~e, rights granted the' Insurer un~er this ordinance, the'
. ." - . ,
, ' ,
' , "
, ",Insurer "sh~ll, to th~ '~xtent. it makes payment of principal .of or interest on 'Borids~' beco~e'
, . . . -.. .
. " . : ,.' . ....:. .' - .', , .' . ...' ',','
. . " " " , ' .' . <, .' I ' . ~ ; .... ,,'"
" subrog;ated t() the rights' of the recipients of s~ch payn\ents inaccoidance -with the terms of-the
. ',,'
, -25-
P:\CMW\CMW7BR
, 10~24/06
. !,'.
. '
. -
-~
'8' ~
, "Bond. Insurance P6licy,~nd to e~idence such subrogation, (i) in the cas~,of 'subrogation as to'
, '. - '. . ..
, , ,
. , . . . . '.
,I' claims for past due interest, the Registrar shall 'note the Insurer's rights, as subrogee on tp.e
. .' -- .
, ,
," , .
. .. . . . .
, registration boqks of the City maintained by the Registrar upon receipt from the Insurer of proof'
of the payment'of i.nterest thereon to the registered owners of the Bonds, and, (ii) in the.'case of
" subrogation as to cl~ims for past due principal, the Registrar shafl n~te the Insurer's rights as
'Subrogee, on the registration b,ooks of the City 'maintained by.the Registrar upon surrender of the
',.Bonds by 'the registered owners thereoftogether,with proof of the payment ofprincip'alth'ereof.
" . >
(7) 'The City hereby covenants and agrees that it, shall reiniburs.~ the In,surer.,
, , ,
, for ~ny amounts paid under the Bond Insurance Policy and all c,osts of colIection thereof qnd
enforceme~t of th:isordinan~e and any other docum,ents executed in 'c~nriection ,with ~his
. '. " '.
ordinance, together with interest the~eon, ~om 'the date_ paid or incul1edby, the Insurer,' until '
, paYmentthereof iIi full"by the ~ity, payable at thehlsurer Payment Rate (as hereinafter defined),
- ..... . \. ", .
"inc1u'ding without limitation (to the extent permitted by applicable law) interest on claims paid by
-" " .
. the', insurer, in respect of'interest on ,the Bonds. ,Such payment obligation 'shall hepaya~leo~ ' '
" , . '., ' . '-. ,
,",deJTIand and on ,a ,parity w~th~'and troD1 the same sources and secured by 'the same security as,
, -
, '", ,regularly 'scheduledprincipai' and interest payments i~ respect of the Bond~. Fot plirposes qf the
. " ,
Jotegoing,"msurer 'Payment Rate"? shall mean the lesser of (a) ~he'm:aximu~ rate permissible
. " . . . . ". . " . . .
,,~ ;'~nderappli~abl~ usufy~rsimihlrfaws limiting interes~ rates and (b) the greater, of (i)th~' them'
,"appli~able'highest ra~e of interest on;theBopdsand (ii)the perannum,Tate of interest, publicly
: announc,edfromtime to't!me"by JPMorgan Chase Bank,N.A. ('~Cha~e?') at its':principal,office in
the City of.~ew York, 'as its prime or'base'le~ding rate ("PrimeRate") '(anychange)n such Prime '
. . . .
Rate to be eff~ctiv~ 9n, tJ:1e' d~tesuch 'cha~ge is ann()unc'ed' by Chase ) p'lus '~ per~ent. . The Insurer "
:Paymel!-t Rate shall be computed on the basis of the actual number 'of days elapsed over a year of ,','
, '
-26-, '
, .' . R:\CMW\C~W7BR,:, ',' ~ 10/24/06 '
, '.
,<) -
'"
~~
- '. " , . . ~
360 days. In the event C'hase ceases to alJ:D.ounce it'sPnl11e Rate', publlc1y,Prime Rate shall be, ,
. .. .
, ,
, the publiCly announced, prime ,or base lending r(;lte of such national bank as the' Insurer, shall
. . . \ . .
" . ~
specify.,'
(8)
. While,' the Bond' Insurance Policy is in effect, th,e City shall furnish to the " ..
Insurer: '
(a) :as soon as practic~?le after the filing thereof, a ,copy of any'
. . . '.
. . . . .
financial statement ,and'a copy of any audit and annual~eport of the City at no cost -19 the Insurer,;
, ,
(b) a copy of any notice to be given to. the registered owners of the
, , .
. " . , .
. '. . '.
- . .' .
,Bonds, including, without limitatio~, nodce of any- redemption of or,d~,fe~s~nceof Bonds, and"
,\'
. .' "',
'. , 'any certIficate r~nder~d pursu(int to this oidin(;lnce relating to the, securi ty for the Bonds ,at no cost
, . , '
to the Insurer; and,
t\ .'
, (c) su~h additional information it may reas~nably request.
, (9) : ' : The City,shall notify ,the Insurer o~ any'failure.of the' City,' to provide,
relevant notices 'and certificates.
;' (10) The City will permit the Insurer to d~scussthe affairs, finances and
, , ,
. . . .
. , '. . .' '. . . ..'
a~'count~o~ the Cityor' any information the Insurer may reasonably request regarding tlJ,e seclnjty
'fot the Bonds with ,appropriate officers ,of the City.. Tl1~ City will permit',the Insurer to have; .
. access, to and to make 'copiesof'all b~oks and records relating to the Bonds, at Clrty reasonable,....
time.
(1~) The Insurer shall have, the right ~o' direct an ac~ountingat~ the City's,
'.expense, and ,the Gity~ s failure.,to' comply' with such direction: wit~jn 3'Odays after receipt of ';
, '. ", . " "
,written notice of the direction ,{rom the hisurer shall' be deemed a default' hereunder; provided, , .. .
'. .. , .
. . , , .. . . .
however; that if compliance. ca~o~occur withIn such 'period, then such period 'will be exte~ded,
, ,
'r',
-27-
, P:\CMW\CMW7BR'
10/24/06. '
,; I , ' .
" ~.~
"".'
, so 10I?-g as',compliance is begun with~n such period and diligently pu~stIed, 'but, only if such '
, . extension would not m~terially adversely affect the interests of any '~egis.tered owner of the
Bonds.
. '
.(12) "Notwithstanding any other provision ,of this ordinance, the City shall '
. , . . , . .
i~mediately notify the Insurer if at' any time there are, insufficient ~oneys to make any p~yinents '
, '" , ".' . . . . .,
. " .
, , . . . . . . . . , . "
, , ,
of principal and/or interest as ,required', and 'imm~diately upo~ the, occurrence of any event of,
default hereunder:
, ,
, (c)' ,Rights of Insurer. ,
, . ,
(1) '. ' .Any provision ofthis,ordinailce expressly recognizing 'or grantIng rights. in
, ' or to the Insurer may not, be 'amel1ded in, any manner which affects. the' ri~hts of the. Insurer',.
, .
. '. ...,
, with~ut'the prior written consent of the Ins:urer.
, ,
(2) Unless othetWise provided' in this sectio!l,the ~Insurer's consent shalLbe
. . , 'j..
. : ' .{" . "
'required.-in addition to bondholder consent, when r~quir~d" for the following purposes:, :
" , \
. (i) execution and~divery of any ame~dment,supplementor change to'or modjfication of this ."
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ordinan~e; (ii) removal of the Regist~a~ ~d selection and appointment of any successor Registrar,
other than a ,successor state fiscal agent; and (iii) any initiation or' approval of any action not
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, , described in(i} or (ii)~bove which requires bondl).older consent.
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(3).' An:y. reorganlzationo~ liquidation plan with respect to.the City must be
, " acceptabletb ~he In~urer. . In the event 'of any reorganization or liquidation; the Insurer shall have
, " ,~he right t~; vote on-behalf of all Bond holders wh~ hold Ambac 'Assurance-insure'd 13o~ds, ab~ent, .
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, a,d~fault:by the Insurer undert~e Bond Insurance Policy. '
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( 4) , 'Anything in, this ordinance to ,the contrarynotwi thstanding, "upon the','
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occurrenc.e 'anqcohtinuance~farr event of default as defined herein, the Insurer shall be.:entitled
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'to control and dIrect the,enforcen1ent of all rights and remed{es ~anted to the Bond holders or"
the Registrar for the benefit of t!Ie Bond holders.
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(5) Notwithstanding anything herein to the c6ntr~ry, in the event ,that the,
. "principal and/or'interest due on the Bonds shalL be 'paid, by the ,insurer pursuant't6 the Bond '
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Insurance' PenlCY, 'the Bonds, shall' remain outstanding for' all purpos~s, not 'be" defeased . o~:
oth~~ise satisfi'ed and not be conside~ed 'paid by the City and an 'covenants', agreements and, d
other obiigationsof t~e c;ity to the registered own,ers shall co~tinue to exist and shall run'to the
benefit6f the Insurer, and the Insurer shall be subrogated to the rights 'of such registered owner~. '
,(6),
To, the' extent that this ordinance confers upon 9r gives or grants to the:
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, Insurer any right~ remedy or claim, under or by reason of this orditiance,the'Insurer is hereby
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,',exj:Hicitly recognized' as' being a third-party beneficiary' hert?under a~dmay enforce' any such
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, right, remedy or , claim conferred, given ot granted h~reunder: "
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Section 13~ ' Undertaking'to Provide Ongoing Disc1osure:"
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(a)' ',:Contrac~/Undertakirzg. This sectioncoristitut~s 'the'"City's written undertaking 'for
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" ,the 'benefit of.the owners of the Bonds asrequired by Section{b )(5) ()~the Rule'.
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, (b)" Finajzcial Siatements/Operatin,i Data~ The City agrees to pt~vid~or cause to be
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provided toeachNRMSIR ~nd'to the SID, if any, in,' each case as designat~d 'b'y the SEe in',
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, "accordance with the Rule, the following annual financial information and operating data for)he "
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,:prior'fiscal year (commencing in 2007 for the fiscal year ended,December 31,2006): '
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1. ' Annual financial statements, which' statements mayor, may not b~ audited, ,
'"show'ingeIlding fund b~ilances for the' City's . gen~ral ,funq' p.repar~d, in ,~c~ordan~e with the"
Budgeting Accounting and Reporti,ng System. 'prescribed by th~'\V~~hington State A~ditor'
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. pursuant to'RCW 43:09.?pO(or any successor statute) and'gene~allyof the typejncluded in the
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,official statement for tpe Bonds under th~ headings "Reyenues and Exp~nditures for ~he Gel}eral
Fund;' ~1?-d."Reven~es and Expenditures for the Road Fund"; .
2. ".~ The assessed valuatlon.oftaxable property in the City;
3. 'Ad valorem taxes due and percent~ge.oftaxes collected;
. 4. . Property tax levy rate per $1,000 of assessed, valuation; and.
5. . Outstanding general obligation debt of the City.
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Items 2...5 'shall be required only to. the extent that such info~ation is not included in the ~nnu., al
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. . 'financial statements.
, The' information and d,ata described. above' shall be provided on or before nine months
aft~r the ehd of the' City's fiscal year. . The City's current fiscal year ends December 31. The City.
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, may adjust such fiscal yea~ by providing writte~ notice of the chang~ of fiscal year to each then'
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existing NRMSIR and the SID, if any: In lie,:!ofprovidlng such amiual financiaJ information and'
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. operating data, the City ,maycross-reference.to other documents provided to the .NRMSIR, the
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.. SID orto. the SEC and, ifsilch docum'ent is'afinal offidal statement within themeamngofthe
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, ; Rule, available from the MSRB.
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. If~ot provided as partofihe annualfinancial information ~iscussed above, th~ City shall.
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. provide the City.' s audited annual financial statement prepared in accordance with the Budgeting. : .
Accounting and Reporting ~y~tem prescri,bed by the W ashingt9nSt~te. Auditor whe~ and' if
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available to each then'existing NRMSIR and theSID,jf any.
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(6)
'Material ~verits. . the~ityagrees to pro"ide:or cause to be'P~oVided, in a timely.
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. manner? t~ the SID, if any, ~d to each NRMSIR notice'ofthe occ~rrenc~ of anyofthe follo.wing
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, events withre~pect to the Bonds, if material: .
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.~pncipar and interest paymentdelinquencies;.':
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· 'Non-payment related defaults;
· ',Unscheduled draws on'debt service reserves reflecting financial difficulties;'
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· Unscheduled draws on 'credit etiliancement~ reflecting financial difficulties; ,
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· Substitution of credit or liquidity providers, or their failur~ to perform;
· ,,' Adverse tax opinio~s or events affecting the tax-exertipt status of the Bonds;
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· 'M.odifications to the rights .of Bond owners;, '
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· ',Bond , calls " (optional, contingent or' unscheduled Bond', calls other than
,scheduled sinking fund redemptions for, wh~ch notice is given pursuant to
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Exchange Act, Release 34-~3856);
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· "Defeasances;
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, .' ~ele~~e, substitution or sale of-property securing ~epaynie?t of the Bonds; and)
· Rating chang~s.
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" Solely fon purposes of disclosure, and not intending to modify thi~ rtnd~~aking, the City
advises thatno property secures payment of the Bonds.
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(d): ',. Notification ;UponFailure to Provide Finan cia! Data. The City agrees to provide
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or cause to be'prqvided,'ina ~imely m~nner, to eachNRMSIR andt~' the SID, i(any, notice of its,
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: failure to,pro:id~e 'the annualfinaIlc~al information described in Subsection'(b) above on or prior'
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't6 the date s6t forth' in, S'ubsecti~n (b) apove.,'
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Terminatio.n/Modification:. ,The City's ,obligations to provide annual financial:
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iri form ati on ,and notices 'of material events' shall terminate upon the legal, d'efeasance?' prior
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'redemption 9rpayment in fun o'f all'oftheB~nds: Any provisi~n oftp.i~, section ~hall be hull and,
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,~oid ~fthe City(l} obtai'us an opinion ofnatidnailyrecosnized bondcoilnsel to the'effeC1:that the'
,portion ',of :th~ Ruk ,that require~ that provision is ,invalid, has b~eri' rep~aledretroactively'or "
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otherwise does not apply to the Bonds and (~) notifies each NRMSIR and the SID, if any, of such
opinion and the cancellation of this section. , '
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, The City may amend this section with an opinion of nationally recognized bond counsel
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in accordance with the Rule. 'IIi the' event of any amendment of this section, the City shall '
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describe such amendment in the next annual report, and shall include, a narrative explanation of
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the reason for th~ amendment and its impact on the typ~ (Of in th~'case of a change ofaccountin,g
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, principles" on the presentation) of fin~ncial information or operating data being presented'b~ the
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City. In addition, if the amendment relates to the accounting principles to be followed in .'
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preparing financial statements, (i) ~otice of such change shall be:given in th~ same manner'as for
a material event under Subsection (c), and '(ii) the annual report for th~:year in which the change,
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is, made shall P, resent a comparison (in narrative form and als~, if feasible, in qu~ntitative form)
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"between the financial statements as prepared on the basis of thenewaccouilting principles and,
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those prepared on the basis of the former acc<?unting principles. ,
(fY ,Bond Owner's Remedies 'Under This Section. T,he right or any bondowner or:
beneficial owner of Bonds to enforce the provisions of this section shall be limit~d to a right to'
obtain 'specific enforcement of the City's obligations under thi.s section, and any failure by the
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City to comply with the provisions .of this undertaking shall not be 'an event' of default with '
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respect to th~ Bonds., For purposes of this section, "lJeneficial owner'" -means an~ p~ison who has
the,power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of,
"any Bonds, including persons holdingBo~ds through,nominees or depositories. ' .
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'(g) ,DisclosureUSA. The City may elect to submit the information required by this,
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Section 13 to be filed with t~e NRMSIRs and the SID, if any, directly to DisclosureUSA.org
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unless or,until the SEe withdraws its approval of this submissio'n proces's.,'
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"Section 14. Proiect Fund and Application of Proceeds of Bonds. 'The ~ity, has'
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,pr~vi?usly established a fund designated'the' "Municipal Buildi~g Fund" (the "Project ,Fund")
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into which the proceeds of the, BOt;lds (other than accrued interest, if any) shall be deposited.,
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, Money ()ll hand in the- Project Fund ~hall be used to pay the costs of or reimb~rsemen~ for the
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costs' of the-Project and ~osts of issuance of the Bonds. The 'Treas'urer may invest money, in the
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Project fund i~ legal investments for City funds., Earnings on such investments ~~all accrue t6 . '
. the benefi~ of such fund eamingsuch interest. Any' part ~f the proceeds of the' Bonds remaining "
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in the 'Proj ect Fund after 'all costs of the ,Project have been paid (including costs of issuance) may
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. be lised for any capita.l purpose of the City or may be'transferred'to the Bond Fund.
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: .' Section 15. " Lost"Stolen or Destroyed Bonds. .In case 'any Bond or Bonds shall be lost,
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. st?len, or destroyed., the Registrar may execute and' deliver a n~w Bbnd or Bonds of "like d.ate, , '
, numb,er an~ t~nor to the Registered Owner thereof upon the Registered ,O,wner's payjngthe
~.,,:~xpenses and charges 'oft~e 'City in,conne~~ion therewith and upon his/her filing' with the City'
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eyid~nce, sat~sfactory~o' the City that such Bond was actually lost, stolen or destroyed and' of .
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, : his/herownership thereof, and upon furnishing 'the City with indemi1itysatisfactory to the'City. '
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. Section 16. " Severability. If anyone or ,more of the covenants or 'agreements provided
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,iJ1 this' ordipance to ,be performed on the, part of the City shall be declar~dby any court of
,competent jurisdiction to 'be contrary to, law, then such co~enant orcovenants~ agreement or "
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, 'agrt::em~n:ts, shal~ qe nulI' ahd void and shall be deemed' separable' from the remaining covenants.
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. and agreements' 'of this ordinance and' shall inno way affect the validity of the other provisions of
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" this ordi~ance or' of the Bonds~"
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"Section 17. Effective Date.. This ordinance shall become' effective from and after Its
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, . final passag~and publication as required by law.'
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P A'~SED by the Council of the City of Yelm, 'W ash~ngton,at a 'regular ?1eeting held, on '
, , , the 24th day 'of October, ~006.
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By
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, CERTIFICATE OF CITY CLERK
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. I DO:HEREBY CERTIFY that I ,am the duly,qualified, appointed andacting City Clerk of
.theCity ofYelm,W~shington (the"City"), and keeper o (therecords of the, City Council;: and
I HEREBY CERTIFY:
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1. ,:,That the attached ordinance-is a true and correct copy of Ordinance No.'860,ofthe ,,'
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, '.Ci,ty (the "Ord~~ance"), as finally passed ata reg~lar meeting of the City Coun~irheld on ~he 24~h
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day ofOct~ber; 2006 and'duly recorded ipmy office.
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Tl,1at said meeting was 'duly convened and held in' all~espectsin accordance' with
"l~w, and to the extent required bylaw, due and proper notice of s~ch'meeting'was given; that a '
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, quorum was present t~oughout the meetIng, and a legally suffic,ient number' of members of the' ,
. (~iiy Council voted 'in, the proper manner . for , the pa~sage of the, Ordi~ance; that '~l1 other
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'requirements and' proce~dings incident to the proper passage of the - Ordin.ance ha\Te been duly
fulfilled, carried out ~rtdotherwise observ~d, and that I am authorized to execute this ce~~ficate"
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IN .WITNESS w;HEREOF, I have set my hand this 24th day of October, ~006.
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, City Clerk, '
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1oi24/06