HomeMy WebLinkAboutORDINANCES-1995-051-O-95•
ORDINANCE NUMBER 51-0-95
AN ORDINANCE providing for the issuance of $3,060,000
Unlimited Ad Valorem Tax Bonds of Special Service Area Number
5 of the City of Evanston, Cook County, Illinois, authorizing the
execution of a bond order and providing for the levy and collection
of a direct annual tax for the payment of the principal of and
interest on said bonds.
WHEREAS the City of Evanston, Cook County, Illinois (the "City") is a duly
incorporated municipality under the laws of the State of Illinois and is a "home rule unit"
pursuant to Section 6 of Article VII of the 1970 Constitution of the State of Illinois and as
such is authorized to exercise any power and perform any function pertaining to its
government and affairs, including, but not limited to, the power to tax and the power to
incur debt; and
• WHEREAS pursuant to the Special Service Area Tax Law, as supplemented and
amended, and particularly as supplemented by the Local Government Debt Reform Act, as
supplemented and amended (collectively, the "Act"), the City is further authorized to create
special service areas, issue bonds secured by the full faith and credit of such areas for
providing special services to such areas, levy taxes against the taxable real property included
in such areas to pay principal of and interest on such bonds, and pledge other revenues or
taxes expected to be received by the City from the State of Illinois as security for the
payment of such bonds; and
WHEREAS the Corporate Authorities by Ordinance Number 5-0-94, adopted
February 28, 1994, did propose the establishment of Special Service Area Number 5 of the
City (the "Area") in order to provide certain services (the "Services") described as follows:
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The construction of new streetlight wiring, sidewalks, curbs, landscaping •
improvements, street resurfacing and other general streetscape improvements
required to improve the right-of-way areas in the Territory together with any
such other further services necessary and/or incidential to the accomplishment
of the aforesaid improvement.
and the issuance of special service area bonds of the Area in not to exceed the aggregate
principal amount of $5,000,000, bearing interest at a rate not to exceed the greater of nine
percent per annum (9.00%) or one hundred twenty-five percent (125%) of the rate for the
most recent date shown in the 20 G.O. Bonds Index for average municipal bond yields as
published in the most recent edition of The Bond Buyer, published in New York, New York,
at the date the bonds were sold, said bonds to mature within twenty-three (23) years from
the date of issuance thereof, and did call a public hearing for the 28th day of March, 1994
(the "Hearing"); and •
WHEREAS the Area is located wholly within the corporate territory and boundaries of
the City; and
WHEREAS the Corporate Authorities have heretofore and it hereby is determined that
proper notice (the "Notice") of the Hearing was given by publication and by mailing, all as
required by law, as evidenced by the official files and records of the City now on file in the
office of the City Clerk; and
WHEREAS the Hearing was held on the 28th day of March, 1994; and
WHEREAS at the Hearing all interested persons affected by the Area were permitted to
file written objections thereto and to be heard orally thereon; and
WHEREAS no such written objections were filed at or prior to the Hearing; and
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• WHEREAS on -the 27th day of June, 1994, the Corporate Authorities adopted
Ordinance Number 60-0-94 to establish the Area;
WHEREAS pursuant to said Ordinances, Notice and Hearing (collectively, the "Special
Service Area Proceedings "), the Area has been properly established; and
WHEREAS the City is now authorized to provide the Services and proceed with the
financing contemplated thereby and therein; and
WHEREAS the Area is contiguous; and
WHEREAS the Area will benefit specially from the Services; and
WHEREAS the Services are unique and in addition to the municipal services provided
to the City as a whole; and
WHEREAS the Corporate Authorities have heretofore and it is hereby found and
determinedthat in order to promote the health, safety, welfare and convenience of the
• residents of the Area, it is necessary, advisable and in the best interests of the Area and the
property owners therein to undertake certain improvements, including, specifically, the
improvements described as follows:
The construction of new streetlight wiring, sidewalks, curbs, landscaping
improvements, street resurfacing and other general streetscape improvements
required to improve the right-of-way areas in the Territory together with any
such other further services necessary and/or incidential to the accomplishment
of the aforesaid improvement.
and associated improvements (collectively, the "Project"), all as generally shown on
preliminary plans and costs estimates as prepared by the City's engineers; and
WHEREAS the Corporate Authorities have determined that the estimated total cost of
• the Project, and expenses incidental thereto, is not less than $3,060,000 and expected
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investment earnings thereon; and there are insufficient funds of the City on hand and •
lawfully available to pay said costs,; and
WHEREAS pursuant to the Act, the Corporate Authorities are authorized to issue bonds
of the Area without referendum; and
WHEREAS pursuant to the provisions of the Act, the Corporate Authorities are now
authorized to borrow money and in evidence thereof issue unlimited ad valorem tax bonds
of the Area without referendum to the amount of $3,060,000 to pay a part of the cost of the
Project;
Now, THEREFORE, Be It Ordained by the City Council of the City of Evanston, Cook
County, Illinois, in the exercise of its home rule powers, as follows:
Section 1. Definitions. In addition to such other words and terms used and defined
in this Ordinance, the following words and terms used in this Ordinance shall have the
following meanings, unless, in either case, the context or use clearly indicates another or is
different meaning is intended:
"Act" means Section 6 of Article VII of the 1970 Constitution of the State of Illinois,
as supplemented by the Special Service Area ,Tax Act, as supplemented and amended, and,
particularly in connection with the issuance of the Bonds, the Local Government Debt
Reform Act of the State of Illinois, as amended, and all of the Omnibus Bond Acts.
"Area" means Special Service Area Number 5 of the City as more fully defined in the
preambles hereto.
"Bond" or "Bonds" means one or more, as applicable, of the $3,060,000 Unlimited Ad
Valorem Tax Bonds of Special Service Area Number 5 authorized to be issued by this
Ordinance.
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• "Bond Fund" means the Bond Fund established and defined in Section 12 of this
Ordinance.
"Bond Order" means the Bond Order as authorized to be executed by the Designated
Officials of the City as set forth in this Ordinance and by which the final terms of the Bonds
will be established.
"Bond Register" means the books of the City kept by the Bond Registrar to evidence
the registration and transfer of the Bonds.
"Bond Registrar" means American National Bank and Trust Company of Chicago,
Chicago, Illinois, a bank having trust powers, in its capacity as bond registrar and paying
agent for the Bonds, or a successor thereto or a successor designated as bond registrar or
paying agent, or both, hereunder.
"Book -Entry System" means a securities depository system operated by a nationally
• recognized Depository for the registration, payment and transfer of obligations such as the
Bonds.
"City" means the City of Evanston, Cook County, Illinois.
"Code" means the Internal Revenue Code of 1986.
"Corporate Authorities" means the City Council of the City.
"County Clerk" means the County Clerk of The County of Cook, Illinois.
"Depository" means a qualified securities depository or clearing -house, designated in
the Bond Order as the "Depository" hereunder in the event that the Bonds shall be issued in
a Book -Entry System.
"Designated Officials" means the City Manager and Finance Director of the City,
acting together.
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"Financial Advisor" means R.V. Norene & Associates, Inc., the financial advisor to •
the City for the sale of the Bonds.
"Ordinance" means this Ordinance, numbered as set forth on the title page hereof, and
passed by the Corporate Authorities on the 12th day of June, 1995.
"Project" means the improvements so defined in the preambles hereto.
"Record Date' shall be the the 15th day of the month. preceding any regular interest
payment date and the 15th day preceding any other interest payment date which may be
occasioned by a redemption of Bonds on a day other than a regular interest payment date.
"Services" means the municipal services to be provided in the Area as more fully
defined in the preambles hereto.
"Tax-exempt" means, with respect to the Bonds, the status of interest paid and
received thereon as not includible in the gross income of the owners thereof under the Code
for federal income tax purposes except to the extent that such interest is taken into account in •
computing an adjustment used in determining the alternative minimum tax for certain
corporations, in computing the environmental tax imposed on certain corporations and in
computing the "branch profits tax" imposed on' certain foreign corporations.
"Unlimited Ad Valorem Taxes" means the ad valorem taxes levied on the taxable
property in the Area by the City to pay principal of and interest on the Bonds.
Section 2. Incorporation of Preambles. The Corporate Authorities hereby find that
all of the recitals contained in' the preambles to this Ordinance are true, correct and complete
and do incorporate them into this Ordinance by this reference.
Section 3. Determination To Issue Bonds. It is necessary and in the best interests of
the City to provide the Services, to undertake the Project, to pay all related costs and
expenses incidental thereto, and to borrow money and issue the Bonds for such purpose. It is •
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• hereby found and determined that such borrowing of money is advisable for the public
health, safety, welfare and convenience, is for a proper public purpose or purposes, is in the
public interest, and is authorized pursuant to the Act; and these findings and determinations
shall be deemed conclusive.
Section 4. Bond Details. For the purpose of providing for the payment of the costs
of the Project and of providing the Services and to pay all related costs and expenses
incidental thereto, there shall be issued and sold the Bonds in the principal amount of
$3,060,000. The Bonds shall each be designated "Unlimited Ad Valorem Tax Bond of
Special Service Area Number 5 ", be dated June 15, 1995, or such other date as may be
provided in the Bond Order (the "Dated Date "); and shall also bear the date of authentication
thereof. The Bonds shall be in fully registered form, shall be in denominations of $5,000 or
integral multiples thereof (but no single Bond shall represent principal maturing on more
• than one date), shall be numbered consecutively in such fashion as shall be determined by the
Bond Registrar, and shall mature serially on December 1 of the years and in the amounts as
follows (subject to the right of prior redemption hereinafter stated):
.s
YEAR
AMOUNT ($)
YEAR
AMOUNT ($)
1996
15,000
2006
150,000
1997
95,000
2007
160,000
1998
100,000
2008
170,000
1999
105,000
2009
180,000
2000
110,000
2010
190,000
2001
115,000
2011
200,000
2002
120,000
2012
215,000
2003
130,000
2013
230,000
2004
135,000
2014
240,000
2005
145,000
2015
255,000
Each Bond shall bear interest, at a rate not to exceed 9% per annum, from the later of
its Dated Date as herein provided or from the most recent interest payment date to which
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interest has been paid or duly provided for, until the principal amount of such Bond is paid •
or duly provided for, such interest (computed upon the basis of a 360-day year of twelve 30-
day months) being payable on June 1 and December 1 of each year, commencing on
December 1, 1995. Should the Bonds be held in a Book -Entry System, as hereinafter more
specifically set forth, interest on each Bond shall be paid to the Depository by check or draft
or electronic funds transfer as may be agreed by the Finance Director, Bond Registrar and
the Depository; should the Bonds not be held in a Book -Entry System, interest on each Bond
shall be paid by check or draft of the Bond Registrar, payable upon presentation thereof in
lawful money of the United States of America, to the person in whose name such Bond is
registered at the close of business on the applicable record date, and mailed to the address of
the registered owner as it appears in the Bond Register or at such other address as is
furnished in writing by the registered owner to the Bond Registrar. The applicable record
date is the 15th day of the month preceding any regular interest payment date and the 15th •
day preceding any other interest payment date which may be occasioned by a redemption of
Bonds on a day other than a regular interest payment date. The principal of the Bonds shall
be payable in lawful money of the United States of America upon presentation thereof at the
principal corporate trust office of the Bond Registrar or at successor Bond Registrar and
address.
Section 5. Execution; Authentication. The Bonds shall be executed on behalf of the
City by the manual or duly authorized facsimile signature of its Mayor and attested by the
manual or duly authorized facsimile signature of its City Clerk, as they may determine, and
shall have impressed or imprinted thereon the corporate seal or facsimile thereof of the
City. In case any such officer whose signature shall appear on any Bond shall cease to be
such officer before the delivery of such Bond, such signature shall nevertheless be valid and •
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• sufficient for all purposes, the same as if such officer had remained in office until delivery.
All Bonds shall have thereon a certificate of authentication, substantially in the form here-
inafter set forth, duly executed by the Bond Registrar as authenticating agent of the City and
showing the date of authentication. No Bond shall be valid or obligatory for any purpose or
be entitled to any security or benefit under this Ordinance unless and until such certificate of
authentication shall have been duly executed by the Bond Registrar by manual signature, and
such certificate of authentication upon any such Bond shall be conclusive evidence that such
Bond has been authenticated and delivered under this Ordinance. The certificate of authenti-
cation on any Bond shall be deemed to have been executed by it if signed by an authorized
officer of the Bond Registrar, but it shall not be necessary that the same officer sign the cer-
tificate of authentication on all of the Bonds issued hereunder.
Section 6. Redemption. The Bonds due on or after December 1, 2005, are subject
• to redemption prior to maturity at the option of the City, from any available funds, in whole
or in part on any date on or after December 1, 2004, and if in part, in such order of
maturity as the City may determine, and if less than an entire maturity, in integral multiples
of $5,000, selected by lot by the Bond Registrar as hereinafter provided, at the redemption
price of par plus accrued interest to the date fixed for redemption.
Section 7. Redemption Procedure. The City shall, at least 45 days prior to the
redemption date (unless a shorter time period shall be satisfactory to the Bond Registrar),
notify the Bond Registrar of such redemption date and of the principal amount of Bonds of
each maturity to be redeemed. For purposes of any redemption of less than all of the Bonds
of a single maturity, the particular Bonds or portions of Bonds to be redeemed shall be
selected by lot not more than 60 days prior to the redemption date by the Bond Registrar for
• the Bonds of such maturity by such method of lottery as the Bond Registrar shall deem fair
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and appropriate; provided, that such lottery shall provide for the selection for redemption of •
Bonds or portions thereof so that any $5,000 Bond or $5,000 portion of a Bond shall be as
likely to be called for redemption as any other such $5,000 Bond or $5,000 portion.
The Bond Registrar shall promptly notify the City and the Paying Agent in writing of
the Bonds or portions of Bonds selected for redemption and, in the case of any Bond selected
for partial redemption, the principal amount thereof to be redeemed.
Unless waived by the registered owner of Bonds to be redeemed, official notice of any
such redemption shall be given by the Bond Registrar on behalf of the City by mailing the
redemption notice by registered or certified mail not less than 30 days and not more than 60
days prior to the date fixed for redemption to each registered owner of the Bond or Bonds
to be redeemed at the address shown on the Bond Register or at such other address as is
furnished in writing by such registered owner to the Bond Registrar.
All official notices of redemption shall include the name of the Bonds and at least the •
information as follows:
(a) the redemption date;
(b) the redemption price;
(c) if less than all of the outstanding Bonds of a particular maturity are to be
redeemed, the identification (and, in the case of partial redemption of Bonds within
such maturity, the respective principal amounts) of the Bonds to be redeemed;
(d) a statement that on the redemption date the redemption price will become
due and payable upon each such Bond or portion thereof called for redemption and
that interest thereon shall cease to accrue from and after said date; and
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• (e) the place where such Bonds are to be surrendered for payment of the
redemption price, which place of payment shall be the principal corporate trust office
of the Paying Agent.
Prior to any redemption date, the City shall deposit with the Paying Agent an amount
of money sufficient to pay the redemption price of all the Bonds or portions of Bonds which
are to be redeemed on that date.
Official notice of redemption having been given as aforesaid, the Bonds or portions of
Bonds so to be redeemed shall, on the redemption date, become due and payable at the
redemption price therein specified, and from and after such date (unless the City shall
default in the payment of the redemption price) such Bonds or portions of Bonds shall cease
to bear interest. Neither the failure to mail such redemption notice, nor any defect in any
notice so mailed, to any particular registered owner of a Bond, shall affect the sufficiency of
• such notice with respect to other registered owners. Notice having been properly given,
failure of a registered owner of a Bond to receive such notice shall not be deemed to invali-
date, limit or delay the effect of the notice or redemption action described in the notice.
Such notice may be waived in writing by a registered owner of a Bond entitled to receive
such notice, either before or after the event, and such waiver shall be the equivalent of such
notice. Waivers of notice by registered owners shall be filed with the Bond Registrar, but
such filing shall not be a condition precedent to the validity of any action taken in reliance
upon such waiver.
Upon surrender of such Bonds for redemption in accordance with said notice, such
Bonds shall be paid by the Paying Agent at the redemption price. The procedure for the
payment of interest due as part of the redemption price shall be as herein provided for pay-
ment of interest otherwise due. Upon surrender for any partial redemption of any Bond,
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there shall be prepared for the registered owner a new Bond or Bonds of like tenor, of •
authorized denominations, of the same maturity, and bearing the same rate of interest in the
amount of the unpaid principal.
If any Bond or portion of Bond called for redemption shall not be so paid upon sur-
render thereof for redemption, the principal shall, until paid or duly provided for, bear
interest from the redemption date at the rate borne by the Bond or portion of Bond so called
for redemption. All Bonds which have been redeemed shall be cancelled and destroyed by
the Bond Registrar and shall not be reissued.
In addition to the foregoing notice, further notice shall be given by the Bond Registrar
on behalf of the City as set out below, but no defect in said further notice nor any failure to
give all or any portion of such further notice shall in any manner defeat the effectiveness of
a call for redemption if notice thereof is given as above prescribed.
Each further notice of redemption given hereunder shall contain the information •
required above for an official notice of redemption plus (a) the CUSIP numbers of all Bonds
being redeemed; (b) the date of issue of the Bonds as originally issued; (c) the rate of inter-
est borne by each Bond being redeemed; (d) the maturity date of each Bond being redeemed;
and (e) any other descriptive information needed to identify accurately the Bonds being
redeemed.
Each further notice of redemption shall be sent at least 35 days before the redemption
date by registered or certified mail or overnight delivery service to all registered securities
depositories then in the business of holding substantial amounts of obligations of types com-
prising the Bonds (such depositories now including Depository Trust Company of New
York, New York, Midwest Securities Trust Company of Chicago, Illinois and Depository
Trust Company of Philadelphia, Pennsylvania) and to one or more national information •
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• services, chosen in the discretion of the Bond Registrar, that disseminate notice of
redemption of obligations such as the Bonds.
Such additional notice and information as may be agreed upon with the Depository
shall also be given so long as the Bonds are held by the Depository.
Upon the payment of the redemption price of Bonds being redeemed, each check or
other transfer of funds issued for such purpose shall bear the CUSIP number identifying, by
issue and maturity, the Bonds being redeemed with the proceeds of such check or other
transfer.
As part of their respective duties hereunder, the Bond Registrar and Paying Agent
shall prepare and forward to the City a statement as to notice given with respect to each
redemption together with copies of the notices as mailed and published.
Section 8. Registration of Bonds; Persons Treated as Owners. The City shall cause
• books (the "Bond Register") for the registration and for the transfer of the Bonds as pro-
vided in this Ordinance to be kept at the principal corporate trust office of the Bond
Registrar in the City of Chicago, Illinois, which is hereby constituted and appointed the reg-
istrar of the City for the Bonds. The City is authorized to prepare, and the Bond Registrar
or such other agent as the City may designate shall keep custody of, multiple Bond blanks
executed by the City for use in the transfer and exchange of Bonds.
Subject to the provisions of this Ordinance relating to the Bonds in Book Entry Form,
any Bond may be transferred or exchanged, but only in the manner, subject to the
limitations, and upon payment of the charges as set forth in this Ordinance. Upon surrender
for transfer or exchange of any Bond at the principal corporate trust office of the Bond
Registrar, duly endorsed by or accompanied by a written instrument or instruments of trans -
is fer or exchange in form satisfactory to the Bond Registrar and duly executed by the regis-
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tered owner or an attorney for such owner duly authorized in writing, the City shall execute •
and the Bond Registrar shall authenticate, date and deliver in the name of the transferee or
transferees or, in the case of an exchange, the registered owner, a new fully registered Bond
or Bonds of like tenor, of the same maturity, bearing the same interest rate, of authorized
denominations, for a like aggregate principal amount.
The Bond Registrar shall not be required to transfer or exchange any Bond during the
period from the close of business on the Record Date for an interest payment to the opening
of business on such interest payment date or during the period of 15 days preceding the
giving of notice of redemption of Bonds or to transfer or exchange any Bond all or a
portion of which has been called for redemption.
The execution by the City of any fully registered Bond shall constitute full and due
authorization of such Bond, and the Bond Registrar shall thereby be authorized to authenti-
cate, date and deliver such Bond; provided, however, the principal amount of Bonds of each •
maturity authenticated by the Bond Registrar shall not at any one time exceed the authorized
principal amount of Bonds for such maturity less the amount of such Bonds which have been
paid.
The person in whose name any Bond shall be registered shall be deemed and regarded
as the absolute owner thereof for all purposes, and payment of the principal of or interest on
any Bond shall be made only to or upon the order of the'registered owner thereof or his
legal representative. All such ,payments shall be valid and effectual to satisfy and. discharge
the liability upon such Bond to the extent of the sum or sums so paid.
No service charge shall be made to any registered owner of Bonds for any transfer or
exchange of Bonds, but the City or the Bond Registrar may require payment of a sum suffi-
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• cient to cover any tax or other governmental charge that may be imposed in connection with
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any transfer or exchange of Bonds.
Section 9. Form of Bond. The Bonds shall be in substantially the form hereinafter
set forth; provided, however, that if the text of the Bonds is to be printed in its entirety on
the front side of the Bonds, then the second paragraph on the front side and the legend "See
Reverse Side for Additional Provisions" shall be omitted and the text of paragraphs set forth
for the reverse side shall be inserted immediately after the first paragraph.
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[FORM OF BOND - FRONT SIDE]
REGISTERED
NO.
UNITED STATES OF AMERICA
STATE OF ILLINOIS
COUNTY OF COOK
CITY OF EVANSTON
UNLIMITED AD VALOREM TAX BOND
OF SPECIAL SERVICE AREA NUMBER 5
See Reverse Side for
Additional Provisions.
Interest Maturity
Rate: Date: 1,
Registered Owner:
Principal Amount:
Dated
Date: , 1995
REGISTERED
CUSIP:
Dollars
KNOW ALL PERSONS BY THESE PRESENTS that the City of Evanston, Cook County,
Illinois, a municipality, home rule unit and political subdivision of the State of Illinois (the
"City"), hereby acknowledges itself to owe and for value received promises to pay to the
Registered Owner identified above, or registered assigns as hereinafter provided, solely
from the collection of taxes levied against all of the taxable property in that part of the City
known as Special Service Area Number 5 (the "Area"), and not otherwise, on the Maturity
Date identified above (subject to right of prior redemption as hereinafter stated), the
Principal Amount identified above and to pay interest (computed on the basis of a 360-day
year of twelve 30-day months) on such Principal Amount from the later of the Dated Date
of this Bond identified above or from the most recent interest payment date to which interest
has been paid or duly provided for, at the Interest Rate per annum identified above, such
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• interest to be payable on June 1 and December 1 of each year, commencing December 1,
1995, until the Principal Amount is paid or duly provided for. The principal of this Bond is
payable in lawful money of the United States of America upon presentation hereof at the
principal corporate trust office of American National Bank and Trust Company of Chicago,
in the City of Chicago, Illinois, as paying agent. Payment of interest shall be made to the
Registered Owner hereof as shown on the registration books of the City maintained by
American National Bank and Trust Company of Chicago, in the City of Chicago, Illinois, as
bond registrar (in its collective capacities as paying agent and bond registrar, the "Bond
Registrar"), at the close of business on the applicable Record Date (the "Record Date"). The
applicable record date is the 15th day of the month preceding any regular interest payment
date and the 15th day preceding any other interest payment date which may be occasioned by
a redemption of Bonds on a day other than a regular interest payment date. Interest shall be
paid by check or draft of the Bond Registrar, payable upon presentation in lawful money of
the United States of America, mailed to the address of such Registered Owner as it appears
on such registration books or at such other address furnished in writing by such Registered
Owner to the Bond Registrar [or as otherwise Sagreed by the City and ,
the Depository, or nominee, in book -entry only form as provided for same] .
Reference is hereby made to the further provisions of this Bond set forth on the
reverse hereof, and such further provisions shall for all purposes have the same effect as if
set forth at this place.
It is hereby certified and recited that all conditions, acts and things required by the
Constitution and Laws of the State of Illinois to exist or to be done precedent to and in the
issuance of this Bond, including the authorizing Act, have existed and have been properly
• done, happened and been performed in regular and due form and time as required by law;
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that the indebtedness of the City, represented by the Bonds, and including all other •
indebtedness of the City, howsoever evidenced or incurred, does not exceed any
constitutional or statutory or other lawful limitation; and that provision has been made for
the collection of . a direct annual tax, in addition to all other taxes, on all of the taxable
property in the Area sufficient to pay the interest hereon as the same falls due and also to
pay and discharge the principal hereof at maturity.
This Bond shall not be valid or become obligatory for any purpose until the certificate
of authentication hereon shall have been signed by the Bond Registrar.
IN WITNESS WHEREOF the City of Evanston, Cook County, Illinois, by its City
Council, has caused this Bond to be executed by the manual or duly authorized facsimile
signature of its Mayor and attested by the manual or duly authorized facsimile signature of
its City Clerk and its corporate seal or a facsimile thereof to be impressed or reproduced
hereon, all as appearing hereon and as of the Dated Dat Wentified above.
t�
Mar, City of Evanston
Cook County, Illinois
ATTEST:
s
City Clerk, City of Evanston
Cook County, Illinois
[SEA-]
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• Date of Authentication: ,
CERTIFICATE OF AUTHENTICATION
This Bond is one of the Bonds described in the within -mentioned Ordinance and is one
of the Unlimited Ad Valorem Tax Bonds of Special Service Area Number 5 of the City of
Evanston, Cook County, Illinois.
American National Bank and Trust
Company of Chicago
Chicago, Illinois
as Bond Registrar
[FORM OF BOND - REVERSE SIDE]
This bond is one of a series of bonds (the "Bonds") in the aggregate principal amount
of $3,060,000 issued by the City for the purpose of paying the costs of a certain Special
• Service Area Project to provide certain special Services and � p p of paying expenses incidental
thereto, all as described and defined in the ordinance authorizing the Bonds (the
"Ordinance"), pursuant to and in all respects in compliance with the applicable provisions of
Section 6 of Article VII of the 1970 Constitution of the State of Illinois, as supplemented by
the Special Service Area Tax Law, as supplemented and amended, and the Local
Government Debt Reform Act and all Omnibus Bond Acts of the State of Illinois
(collectively, the "Act"). The Bonds are issued in compliance with the terms of the
Ordinance, which has been duly passed by the City Council of the City, approved by the
Mayor, and published, in all respects as by law required.
This Bond may be transferred or exchanged, but only in the manner, subject to the
• limitations, and upon payment of the charges as set forth in the Ordinance. Upon surrender
for transfer or exchange of this Bond at the principal corporate trust office of the Bond
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Registrar in the City of Chicago, Illinois, duly endorsed by or accompanied by a written •
instrument or instruments of transfer or exchange in form satisfactory to the Bond Registrar
and duly executed by the Registered Owner or an attorney for such owner duly authorized
in writing, the City shall execute and the Bond Registrar shall authenticate, date and deliver
in the name of the transferee or transferees or, in the case of an exchange, the Registered
Owner, a new fully registered Bond or Bonds of like tenor, of the same maturity, bearing
the same interest rate, of authorized denominations, for a like aggregate principal amount.
The Bond Registrar shall not be required to transfer or exchange any Bond during the
period from the close of business on the Record Date for an interest payment to the opening
of business on such interest payment date or during the period of 15 days preceding the
giving of notice of redemption of Bonds or to transfer or exchange any Bond all or a
portion of which has been called for redemption.
The Bonds due on or after December 1, 2005, are subject to redemption prior to •
maturity, at the option of the City, from any available funds, in whole or in part on any date
on or after December 1, 2004, and if in part, in such order of maturity as the City shall
determine, and if less than an entire maturity, in integral multiples of $5,000, selected by lot
by the Bond Registrar, at the redemption price of par plus accrued interest to the date of
redemption.
Unless waived by the Registered Owner of Bonds to- be redeemed, notice of any such
redemption shall be given by the Bond Registrar on behalf of. the City by mailing the
redemption notice by registered or certified mail not less than 30 days and not more than 60
days prior to the date fixed for redemption to each Registered Owner of the Bond or Bonds
to be redeemed at the address shown on the Bond Register or at such other address as is
furnished in writing by such Registered Owner to the Bond Registrar. Neither the failure to •
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• mail such redemption notice, nor any defect in any notice so mailed, to any particular
Registered Owner of a Bond, shall affect the sufficiency of such notice with respect to other
Registered Owners. Notice having been properly given, failure of a Registered Owner of a
Bond to receive such notice shall not be deemed to invalidate, -limit or delay the effect of the
notice or redemption action described in the notice. Such notice may be waived in writing by
a Registered Owner of a Bond entitled to receive such notice, either before or after the
event, and such waiver shall be the equivalent of such notice.
Notice of redemption having been given as aforesaid, the Bonds or portions of Bonds
so to be redeemed shall, on the redemption date, become due and payable at the redemption
price therein specified, and from and after such date (unless the City shall default in the
payment of the redemption price) such Bonds or portions of Bonds shall cease to bear inter-
est. Upon surrender of such Bonds for redemption in accordance with said notice, such
• Bonds shall be paid by the Bond Registrar at the redemption price. The procedure for the
•
payment of interest due as part of the redemption price shall be as herein provided for pay-
ment of interest otherwise due. Upon surrender for any partial redemption of any Bond,
there shall be prepared for the Registered Owner a new Bond or Bonds of like tenor, of
authorized denominations, of the same maturity, and bearing the same rate of interest in the
amount of the unpaid principal.
The City and the Bond Registrar may deem and treat the Registered Owner hereof as
the absolute owner hereof for the purpose of receiving payment of or on account of
principal hereof and interest due hereon and for all other purposes, and neither the City nor
the Bond Registrar shall not be affected by any notice to the contrary.
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ASSIGNMENT
FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto
[Here insert identifying number such as
TID, SSN, or other]
(Name and Address of Assignee)
the within Bond and does hereby irrevocably constitute and appoint
as attorney to transfer the said Bond on the books kept for registration thereof with full
power of substitution in the premises.
Dated:
Signature 'guaranteed:
NOTICE: The signature to this transfer and assignment must correspond with the name of
the Registered Owner as it appears upon the face of the within Bond in every
particular, without alteration or enlargement or any change whatever.
Section 10. Tax Levy; Security for bonds. For the purpose of providing funds
required to pay the interest on the Bonds promptly when and as the same falls due, and to
pay and discharge the principal thereof at maturity, there is hereby levied upon all of the
taxable property within the Area, in the years for which any of the Bonds are outstanding, a
direct annual taxsufficient for that purpose; and there is hereby levied on all of the taxable
property in the Area, in addition to all other taxes, the direct annual taxes (the "Unlimited
Ad Valorem Taxes") in the amounts and for the years as shall be specified in the Bond
Order.
•
Is
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• The Unlimited Ad Valorem Taxes shall be applied to pay principal of and interest on
the Bonds. Interest or'principal coming due at any time when there are insufficient funds on
hand from the Unlimited Taxes to pay the same may, be paid at the discretion of the
Corporate Authorities, when due from current funds on hand in advance of the collection of
the said taxes herein levied; and when the Unlimited Ad Valorem Taxes shall have been
collected, reimbursement shall be made to said funds in the amount so advanced. The City
covenants and agrees with the purchasers and registered owners of the Bonds that so long as
any of the Bonds remain outstanding, the City will take no action or fail to take any action
which in any way would adversely affect the ability of the City to levy and collect the
Unlimited Ad Valorem Taxes. The City and its officers will comply with all present and
future applicable laws in order to assure that the Unlimited Ad Valorem Taxes may be
levied, extended and collected as provided herein and deposited into the Bond Fund.
• Whenever and only when other funds from any lawful source are made available for
the purpose of paying any principal of or interest on the Bonds so as to enable the abatement
of the taxes levied herein for the payment of same, the Corporate Authorities shall, by
proper proceedings, direct the deposit of such funds into the Bond Fund and further shall
direct the abatement of the taxes by the amount so deposited. A certified copy or other
notification of any such proceedings abating taxes may then be filed with the County Clerk
in a timely manner to effect such abatement. In the alternative, the Corporate Authorities
may, by proper proceedings, authorize a procedure for the deposit of such funds into the
Bond Fund by duly authorized officers of the City, which procedure may be self-executing,
and may further, accordingly, authorize such officers to abate the taxes by the amount so
deposited from time to time by certificate to the County Clerk, which certificate upon filing
• shall be full authority for the County Clerk to effect such abatement.
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Section 11. Filing of Tax Levies Promptly, as soon as this Ordinance becomes •
effective, a copy hereof, certified by the City Clerk of the City, shall be filed with the
County Clerk; and said County Clerk shall in and for each of the years necessary ascertain
the rate percent required to produce the aggregate tax hereinbefore provided to be levied in
each of said years; and said County Clerk shall extend the same for collection on the tax
books against all of the taxable property within the Area in addition to other taxes levied in
said years in the Area in order to raise the respective amounts levied aforesaid, and in said
years such annual tax shall be levied and collected by and for and on behalf of the City in
like manner as taxes for general corporate purposes for said years are levied and collected,
and in addition to and in excess of all other taxes, and without limit either as to rate or
amount.
Section 12. Book -Entry System. At the option of the purchasers, the Bonds are to
be in fully registered book -entry form (the "Book -Entry System ") as follows. •
So long as the Bonds are held under a Book -Entry System, interest on each Bond shall
be paid to the Depository by check or draft or electronic funds transfer as may be agreed by
the City, the Bond Registrar and the Depositor..
The Bonds shall be initially issued in the form of a separate single fully registered
Bond for each of the maturities of the Bonds. Upon initial issuance, the ownership of each
such Bond shall be registered in the Bond Register in the name of the Depository or a
designee or nominee of the Depository, or any successor thereto (the "Nominee"). All of the
outstanding Bonds from time to time shall be registered in the Bond Register in the name of
the Depository or the Nominee. Any City officer, for the City, and the Bond Registrar are
authorized to execute and deliver on behalf of the City such letters to or agreements with the
Depository as shall be necessary to effectuate the Book -Entry System (any such letter or •
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• agreement being referred to herein as the "Representation Letter"). Without limiting the
generality of the authority given with respect to entering into such Representation Letter, it
may contain provisions relating to (a) payment procedures, (b) transfers of the Bonds or of
beneficial interests therein, (c) redemption notices and procedures unique to the Depository,
(d) additional notices or communications, and (e) amendment from time to time to conform
with changing customs and practices with respect to securities industry transfer and payment
practices.
With respect to Bonds registered in the Bond Register in the name of the Depository
or the Nominee, the City and the Bond Registrar shall have no responsibility or obligation to
any broker -dealer, bank or other financial institution for which the Depository holds Bonds
from time to time as securities depository (each such broker -dealer, bank or other financial
institution being referred to herein as a "Depository Participant") or to any person on behalf
• of whom such a Depository Participant holds an interest in the Bonds. Without limiting the
meaning of the immediately preceding sentence, the City and the Bond Registrar shall have
no responsibility or obligation with respect to (a) the accuracy of the records of the
Depository, the Nominee, or any Depository Participant with respect to any ownership
interest in the Bonds, (b) the delivery to any Depository Participant or any other person,
other than a registered owner of a Bond as shown in the Bond Register, of any notice with
respect to the Bonds, including any notice of redemption, or (c) the payment to any
Depository Participant or any other person, other than a registered owner of a Bond as
shown in the Bond Register, of any amount with respect to principal of or interest on the
Bonds. No person other than a registered owner of a Bond as shown in the Bond Register
shall receive a Bond certificate with respect to any Bond.
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In the event. that while held under a Book -Entry System, (a) the City determines that •
the Depository is incapable of discharging its responsibilities, (b) the agreement among the
City, the Bond Registrar and the Depository evidenced by the Representation Letter shall be
terminated or invalidated for any reason or (c) the City determines that it is in the best
interests of the City or of the beneficial owners of the Bonds that they be able to obtain
certificated Bonds, the City shall notify the Depository and the Depository Participants of
the availability of Bond certificates, and the Bonds shall no longer be restricted to being
registered in the Bond Register in the name of the Depository or the Nominee.
Alternatively, the City may determine that the Bonds shall be registered in the name of and
deposited with a successor depository operating a book -entry system, as may be acceptable to
the City, or such depository's agent or nominee, but if the City does not select such alternate
book-entrysystem, then the Bonds shall be registered in whatever name or names registered
owners of Bonds transferring or exchanging Bonds shall designate, in accordance.:with the •
provisions hereof.
Transfer and exchange of the Bonds shall be subject to the provisions of this Section
relating to the Bonds under a Book -Entry System.
THE FORM OF THE BOND.shall provide a statement that interest may be paid "as
otherwise agreed by the City and , the Depository, or nominee,
in book -entry only form as provided for same."
Section 13. Sale of fonds; Bond Order. The Designated Officials are hereby
authorized to proceed, without any further authorization or direction whatsoever from the
City Council, to sell and deliver the Bonds upon the terms as prescribed in this Section.
The Bonds shall be sold and delivered to the best bidder at public sale (the
"Underwriters") at the price of not less than ninety-nine percent (99%) of the par value •
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• thereof, plus accrued interest to the date of delivery. Such sale shall be made upon the advice
(in the form of a written certificate or report) of the Financial Advisor that the net interest
cost rate on the Bonds, calculated in accordance with customary market practice, does not
exceed 9.00% and that the terms of the Bonds are fair and reasonable in view of current
conditions in the bond markets.
Nothing in this Section shall require the Designated Officials to sell the Bonds if in
their judgment, aided by the Financial Advisor, the conditions in the bond markets shall have
markedly deteriorated from the time of adoption thereof, but the Designated Officials shall
have the authority to sell the Bonds in any event so long as the limitations set forth in this
Ordinance and the conditions of this Section shall have been met.
Upon the sale of the Bonds, the Designated Officials and any other officers of the City
r as shall be appropriate, shall be and are hereby authorized and- directed to approve or
execute, or both, such documents of sale of the Bonds as may be necessary, including,
without limitation, the Bond Order, Preliminary Official Statement, Official Statement,
Bond Purchase Contract (as hereinafter defined), and closing documents. Prior to the
execution and delivery of any such Bond Purchase Contract, the Designated Officials shall
find and determine that no person holding any office of the City either by election or
appointment, is in any manner interested either directly or indirectly, in his own name or in
the name of any other person, association, trust or corporation in said Contract with the
Underwriters for the purchase of the Bonds.
The distribution of the Preliminary Official Statement relating to the Bonds presented
before this meeting is hereby in all respects authorized and approved, and the proposed use
by the Underwriters of an Official Statement (in substantially the form of the Preliminary
•
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Official Statement but with appropriate variations to reflect the final terms of the Bonds) is •
hereby approved.
A bond purchase contract for the sale of the Bonds to the Underwriters (the "Bond
Purchase Contract"), as comprised of the Official Notice of Sale and Official Bid Form, is
hereby in all respects authorized and approved.
Upon the sale of the Bonds, the Designated Officials shall prepare a Bond Order,
which shall include the pertinent details of sale as provided herein, and such shall be entered
into the records of the City and made available to all City Council members at the next
public meeting thereof.
The Designated Officials shall also file with the County Clerk the Bond Order or like
document including a statement of taxes.
Section 14. Creation of Funds and Appropriations.
A. Accrued interest and premium, if any, on the Bonds shall be and are. hereby is
appropriated for the purpose of paying the first interest due on the Bonds and to such end
are hereby ordered to be deposited into the "Unlimited Ad Valorem Tax Bonds of Special
Service Area Number S Bond Fund" (the "Bond Fund"), hereby created, which shall be the
fund for the payment of principal of and interest on the Bonds.
B. The Unlimited Ad Valorem Taxes hereinabove levied for the payment of the
principal of and interest on the Bonds shall either be deposited into the Bond Fund and used
solely and only for paying 'such principal of and interest on the Bonds or be used to
reimburse a fund or account from which advances to the Bond Fund may have been made to
pay principal of or interest on the Bonds prior to receipt of taxes. Interest income or
investment profit earned in the Bond Fund shall be retained in the Bond Fund for payment
of the principal of or interest on the Bonds on the interest payment date next after such •
• interest or profit is received or, to the extent lawful and as determined by the Corporate
Authorities, transferred to such other fund as may be determined. The City hereby pledges,
as equal and ratable security for the Bonds, all present and future proceeds of the Unlimited
Ad Valorem Taxes so levied for the sole benefit of the registered owners of the Bonds,
subject to the reserved right of the Corporate Authorities to transfer certain interest income
or investment profit earned in the Bond Fund to other funds of -the City, as described in the
preceding sentence.
C. The principal proceeds of the Bonds shall be deposited into a special fund
designated the "Unlimited Ad Valorem Tax Bonds of Special Service Area Number S
Project Fund" (the 'Project Fund"), hereby created; and disbursements shall be made from
the Project Fund only for the Project and related purposes, including costs of issuance of the
Bonds and other incidental related costs, and the principal proceeds of the Bonds are
accordingly so appropriated. Interest income or investment profit earned in the Project Fund
shall be returned and dedicated to the Project. If any amounts remain in the Project Fund at
such time as the Corporate Authorities shall declare the Project complete and all bills with
respect to the Project paid, such amounts shall be transferred to the Bond Fund and used to
abate taxes; and the Project Fund shall be closed.
Section 15. Not Private Activity Bonds. None of the Bonds is a "private activity
bond" as defined in Section 141(a) of the Code. In support of such conclusion, the City
certifies, represents and covenants as follows:
A. Not more than 5% of the net proceeds of the Bonds is to be used, directly
or indirectly, in any trade or business carried on by any person other than a state or
local governmental unit.
•
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B. Not more than 5% of the amounts necessary to pay the principal of and •
interest on the Bonds will be derived, directly or indirectly, from payments with
respect to any private business use by any person other than a state or local
governmental unit.
C. None of the proceeds of the Bonds. is to be used, directly or indirectly, to
make or finance loans to persons other than estate or local governmental unit.
D. No user of the infrastructure of the City to be improved as part of the
Project to be financed with proceeds of the. Bonds, other than the City or another
governmental unit, will use the same on any basis other than the same basis as the
general public; and no person, other than the City or another governmental unit, will
be a user of such infrastructure as a result of (i) ownership or (ii) actual or beneficial
use pursuant to a lease, a management or incentive payment contract, or (iii) any other
arrangement. •
Section 16. General Arbitrage Covenants. The City represents and certifies as
follows with respect to the Bonds:
A. The City has heretofore incurred, or within six months after delivery of
the Bonds expects to incur, substantial binding obligations to be paid for with money
received from the sale of the Bonds, said binding obligations comprising binding
contracts for the Project in not less than the amount of $200,000.
B. More than- 85% of the proceeds of the Bonds will be expended on or
before June 15, 1998, for the purpose of paying the costs of the Project, said date
being within three years following the date of issue of the Bonds.
is
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• C. _ All of the principal proceeds of the Bonds, and investment earnings
thereon, will be used, needed and expended for the purpose of paying the costs of the
refunding and the Project, including expenses incidental thereto.
D. Work on the Project is expected to proceed with due diligence to
completion.
E. Except for the Bond Fund, the City has not created or established and will
not create or establish any sinking fund, reserve fund or any other similar fund to
provide for the payment of the Bonds. The Bond Fund has been established and will
be funded in a manner primarily to achieve a proper matching of revenues and debt
service, and will be depleted at least annually to an amount not in excess of 1/12th the
particular annual debt service on the Bonds. Money deposited into the Bond Fund will
be spent -within a 13-month period beginning on the date of deposit, and investment
• earnings in the Bond Fund will be spent or withdrawn from the Bond Fund within a
•
one-year period beginning on the date of receipt.
F. Amounts of money related to the Bonds required to be invested at a yield
not materially higher than the yield on 'the Bonds, as determined pursuant to such tax
certifications or agreements as the City officers may make in connection with the
issuance of the Bonds, shall be so invested; and appropriate City officers are hereby
authorized to make such investments.
G. - The City has not been notified of any disqualification or proposed
disqualification of it by the Commissioner of the Internal Revenue Service as a bond
issuer which may certify bond issues under applicable Treasury Regulations.
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. The City further certifies and covenants as follows with respect to the requirements of •
Section 148(f) of the Code, relating to the rebate of "excess arbitrage profits" (the "Rebate
Requirement") to the United States:
H. Unless an applicable exception to the Rebate Requirement is available to
the City, the City will meet the Rebate Requirement.
I. Relating to applicable exceptions, either of the Designated Officers - is
hereby authorized to make such elections under the Code as either such officer shall
deem reasonable and in the best interests of the City. If such election may result in a
"penalty in lieu of rebate" as provided in the Code, and such penalty is incurred (the
"Penalty"), then the City shall pay such Penalty.
J. The officers of the City shall cause to be established, at such time and in
such manner as they may deem necessary or appropriate hereunder, a "Unlimited Ad
Valorem Tax Bonds of Special Service Area Number 5 Rebate [or Penalty, if •
applicable] Fund" (the "Rebate Fund") for the Bonds, and such officers shall further,
not less frequently than annually, cause to be transferred to the Rebate Fund the
amount determined to be the accrued -'liability under the Rebate Requirement or
Penalty. Said officers shall cause to be paid to the United States, without further order
or direction from the City Council, from time to time as required, amounts sufficient
to meet the Rebate Requirement or to pay the Penalty.
K. Interest earnings in the Project Fund and the Bond Fund are hereby
authorized to be transferred, without further order or direction from the City
Council, from time to time as required, to the Rebate Fund for the purposes herein
provided; and proceeds of the Bonds and other funds of the City are also hereby
authorized to be used to meet the Rebate Requirement or to pay the Penalty, but only is
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iif necessary after application of investment earnings as aforesaid and only as
appropriated by the City Council.
The City also certifies and further covenants with the purchasers and registered
owners of the Bonds from time to time outstanding that moneys on deposit in any fund or
account in connection with the Bonds, whether or not such moneys were derived from the
proceeds of the sale.of the Bonds or from any other source, will not be used in a manner
which will cause the Bonds to be "arbitrage bonds" within the meaning of Code Section 148
and any lawful regulations promulgated thereunder, as the same presently exist or may from
time to time hereafter be amended, supplemented or revised.
Section 17. Registered Form. The City recognizes that Section 149 of the Code
requires the Bonds to be issued and to remain in fully registered form in order to be and
remain Tax-exempt. In this connection, the City agrees that it will not take any action to
•. permit the Bonds to be issued in, or converted into, bearer or coupon form.
Section 18. Further Tax Covenants. The City agrees to comply with all provisions
of the present Code which, if not complied with by the City, would cause the Bonds not to be
Tax-exempt. In furtherance of the foregoing provisions, but without limiting their general-
ity, the City agrees: (a) through its officers, to make such further specific covenants, repre-
sentations as shall be truthful, and assurances as may be necessary or advisable; (b) to com-
ply with all representations, covenants and assurances contained in certificates or agreements
as may be prepared by counsel approving the Bonds; (c) to consult with such counsel and to
comply with such advice as may be given; (d) to file such forms, statements and supporting
documents as may be required and in a timely manner; and (e) if deemed necessary or advis-
able by its officers, to employ and pay fiscal agents, financial advisors, attorneys and other
• persons to assist the City in such compliance.
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Section 19. Reimbursement. None of the proceeds of the Bonds will be used to pay, •
directly or indirectly, in whole or in part, for an expenditure that has been paid by the City
prior to the date hereof except architectural or engineering costs incurred prior to
commencement of any of the Project or expenditures for which an intent to reimburse it as
properly declared under Treasury Regulations Section 1.103-18. This Ordinance is in itself a
-declaration of official intent under Treasury Regulations Section 1.103-18 as to all costs of
the Project paid after the date hereof and prior to issuance of the Bonds.
Section 20. Opinion of Counsel Exception. The City reserves the right to use or
invest moneys in connection with the Bonds in any manner, or to make changes in the
Project, or to use the City infrastructure acquired, constructed or improved as part of the
Project in any manner, notwithstanding the representations and covenants in Sections 15
through 19 herein, provided it shall first have received an opinion from an attorney or a
firm of attorneys of nationally recognized standing in matters pertaining to Tax-exempt •
bonds to the effect that use or investment of such moneys or the changes in or use of such
infrastructure as contemplated will not result in loss or impairment of Tax-exempt status for
the Bonds.
Section 21. Pertaining to Bond Registrar. If requested by the Bond Registrar, the
Mayor and City Clerk are authorized to execute the Bond Registrar's standard form of
agreement between the City and the Bond Registrar with respect to the obligations and duties
of the Bond Registrar hereunder. Subject to modification by the express terms of any such
agreement, the Bond Registrar agrees as follows:
A. to act as bond registrar, authenticating agent, paying agent and transfer
agent as provided herein;
•
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• B. to maintain a list of Bondholders as set forth herein and to furnish such
list to the City upon request, but otherwise to keep such list confidential to the fullest
extent permitted by law;
C. to cancel and/or destroy Bonds which have been paid at maturity, upon
redemption or submitted for transfer or exchange;
D. to furnish the City at least annually a.certificate with respect to Bonds
cancelled and/or destroyed; and
E. to furnish the City at least annually an audit confirmation of Bonds paid,
Bonds outstanding and payments made with respect to interest on the Bonds.
The City Clerk of the City is hereby directed to file a copy of this Ordinance with the
Bond Registrar.
The City covenants that it shall at all times retain a Bond Registrar with respect to the
• Bonds, that it will maintain at the designated office(s) of such Bond Registrar a place or.
places where Bonds may be presented for payment or registration of transfer or exchange,
and that it shall require that the Bond Registrar properly maintain the Bond Register and
perform the other duties and obligations imposed upon it by this Ordinance in a manner
consistent with the standards, customs and practices of the municipal securities industry.
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 Bonds, and by
such execution the Bond Registrar shall be deemed to have certified to the City 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 City and shall not be liable in connection with the performance of its duties
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except for its own negligence or willful wrongdoing. The Bond Registrar shall, however, be •
responsible for any representation in its certificate of authentication on the Bonds.
The City may remove the Bond Registrar at any time. In case at any time the Bond
Registrar shall resign, shall be removed, 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 the the property thereof shall be appointed, or if any public officer shall take
charge or control of the Bond Registrar or of the property or affairs thereof, the City
covenants and agrees that it will thereupon appoint a successor Bond Registrar. The City
shall mail notice of any such appointment made by it to each registered owner of any Bond
within twenty days after such appointment. Any Bond Registrar appointed under the
provisions of this Section shall be a bank, trust company, or national banking association
maintaining its principal corporate trust office in the City of Evanston, Illinois, the City of
Chicago, Illinois or the Borough of Manhattan, City and State of New York. •
Section 22. Defeasance. Any Bond or Bonds which (a) are paid and cancelled, (b)
which have matured and for which sufficient sums been deposited with a bank or trust
company authorized to keep trust accounts to ,pay all principal and interest due thereon, or
(c) for which sufficient United States funds and direct United States Treasury obligations
have been deposited pursuant to an irrevocable escrow or trust agreement with a bank or
trust company authorized to keep trust accounts to pay, -taking into account investment
earnings on such obligations„ all principal of and interest on such Bond or Bonds when due
at maturity or as called for redemption shall cease to have any lien on or right to receive or
be paid from the Unlimited Ad Valorem Taxes or Bond Fund hereunder and shall no longer
have the benefits of any covenant for the registered owners of outstanding Bonds as set forth
herein, as such relates to lien and security of the outstanding Bonds. All covenants relative to is
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• the Tax-exempt status of the Bonds and relative to payment, registration, transfer, and
exchange of Bonds are expressly continued for all Bonds whether deemed outstanding Bonds
or not.
Section 23. Municipal Bond Insurance. In the event the payment of principal of and
interest on the Bonds is insured pursuant to a municipal bond insurance policy (a "Municipal
Bond Insurance Policy") issued by a bond insurer (a "Bond Insurer"), and as long as such
Municipal Bond Insurance Policy shall be in full force and effect, the City and the Bond
Registrar agree to comply with such usual and reasonable provisions regarding presentment
and payment of the Bonds, subrogation of the rights of the Bondholders to the Bond Insurer
when holding Bonds, amendment hereof, or other terms, as approved by the the Designated
Officers pursuant to the Bond Order, their approval to constitute full and complete
acceptance by the City of such terms and provisions under authority of this section.
• Section 24. Continuing Disclosure For Secondary Market Purposes. The City
covenants to comply with applicable future regulations regarding secondary market
disclosure to assure that its bonds can continue to be traded in the secondary market.
u
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Section 25. Publication of Ordinance. A full, true and complete copy of this •
Ordinance shall be published within ten days after passage in pamphlet form by authority of
the Corporate Authorities.
Section 26.. Superseder and Effective Date. All ordinances, resolutions and orders,
or parts thereof, in conflict herewith, are to, the extent of such conflict hereby superseded;
and this Ordinance shall be in full force and effect upon its passage, approval and
publication.
AYES: -I m— Me =n , L)riuner,suthrie,
Hevdemann
NAYS: ' I'gle
ABSENT: Al d n-nen Ho sman and Feldman
dman
ADOPTED: June 12, 1995
APPRKE. e ��1995
r, City of EvanstonCounty, Illinois
Recorded In City Records: June _, 1995.
.k
Published in pamphlet form by authority of the Corporate Authorities on
June _2_p 1995.
T:
Clerk, City of Evanston
: County, Illinois
0