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HomeMy WebLinkAboutORDINANCES-1987-084-O-87• • • ORDINANCE NUMBER 84-0-87 AN ORDINANCE providing for the issuance of $10,030,000 Corporate Purpose Bonds, Series 1987, of the City of Evanston, Cook County, Illinois, and providing for the levy and collection of a direct annual tax for the payment of the principal of and interest on said bonds. WHEREAS the City of Evanston, Cook County, Illinois (the "City"), has a population in excess of 25,000 as determined by the last official census and, accordingly, pursuant to the provisions of the 1970 Constitution of the State of Illinois and particularly Article VII, Section 6(a) thereof, the City is a home rule unit and as such may exercise any power or perform any function pertaining to its government and affairs, including, but not limited to, the power to tax and to incur debt; and WHEREAS pursuant to the provisions of said Section 6 of Article VII of the 1970 Constitution, the City has the power to incur debt payable from ad valorem tax receipts maturing within 40 years from the time it is incurred and without prior referendum approval; and WHEREAS the City has adopted a Capital Improvement Program for the years 1987 through 1991 and it is deemed by the City Council to be necessary and advisable and in the best interests of the inhabitants of the City to obtain funds to pay a portion of the costs of certain projects set forth in the program, including the following at the estimated current costs as set forth: Current Project Estimated Cost ($) Fire Station Rehabilitation and Replacement 1,190,000 Library Replacement and Expansion 500,000 Street Lighting and Paving 1,097,000 • Current Project Estimated Cost M Redevelopment of Public Park 33,000 Crown's Ice Center Resurfacing Floor 20,000 Lagoon Building on Lakefront 190,000 Parking Garage at Chicago and Church 7,000,000 i (the "1987 Bonds Capital Improvements") and subject to amendment for such other corporate purposes as the City Council may deter- mine as hereinafter provided; and WHEREAS it is necessary for that purpose that such sum be borrowed at this time and in evidence of such indebtedness general obligation bonds of the City be issued in the principal amount of $10,030,000, and that such indebtedness be incurred in accordance with the home rule powers of the City, as aforesaid, and without submitting the question of incurring such indebted- ness to the electors of said City for their approval; 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 dif- ferent meaning is intended: "Bond" or "Bonds" means one or more, as applicable, of the $10,030,000 Corporate Purpose Bonds, Series 1987, authorized to be issued by this Ordinance. "Bond Register" means the books of the City kept by the Bond Registrar to evidence the registration and transfer of the Bands. "Bond Registrar" means American National Bank and Trust Company of Chicago, Chicago, Illinois, a bank having trust -2- • powers, or a successor thereto or a successor designated as bond registrar hereunder. "City" means the City of Evanston, Cook County, Illinois. "City Council" means the City Council of the City. "Code" means the Internal Revenue Code of 1986, as amended. "Debt Service Fund" 'means the Debt Service Fund estab- lished and defined in Section113 of this Ordinance. "Ordinance" means this Ordinance, numbered as set forth on the title page hereof, and passed by the City Council on the 14th day of September 1987. "Paying Agent" means American National Bank and Trust Company of Chicago, Chicago, Illinois, a bank having trust powers, or a successor thereto or a successor designated as paying agent hereunder. "Pledged Taxes" means the taxes levied on the taxable property within the corporate limits of the City to pay principal of and interest on the Bonds as made in Section 10 hereof. "Project Fund" means the Project Fund as established and defined in Section 13 of the Ordinance. "Tax-exempt" means, with respect to the Bonds, the sta- tus 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 will be taken into account in computing an adjustment used in deter- mining 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 for- eign corporations. "1987 Bonds Capital Improvements" means such improve- ments as described and defined as such in the preambles to this Ordinance. -3- Section 2. Incorporation of Preambles The City Council hereby find that all of the recitals contained in the preambles to this Ordinance are true, correct and complete and does 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 acquire and construct the 1.987 Bonds Capital Improvements, to pay all related costs and expenses incidental thereto, and to borrow money and issue the Bonds for such purposes. It is hereby found and determined that such borrowing of money is for a proper public purpose or purposes and is in the public interest, and is authorized by Article VII, Section 6 of the Illinois Constitution. Section 4. Bond Details For the purpose of providing for the payment of a part of the costs of the 1987 Bonds Capital Improvements, and to pay all related costs and expenses incidental thereto, there shall be • issued and sold the Bonds in the aggregate principal amount of $10,030,000. The Bonds shall each be designated "Corporate Purpose Bond, Series 1987"; be dated October 11 1987 (the "Dated Date"); and shall also bear the date of authentication thereof. The Bonds shall be in fully registered form, shall be in denomi- nations of $5,000 or integral multiples thereof (but no single Bond shall represent principal maturing on more than one date), shall be numbered consecutively in such fashion as shall be determined by the Bond Registrar, and shall become due and pay- able serially (subject to right of prior redemption) on December 1 of the years and in the amounts and bearing interest at the rates percent per annum as follows: • -4- • Year Amount ($) Rate (%) - Year Amount ($) Rate (�) 1988 55,000 7.50 1999 450,000 7.30 1989 105,000 8.50 2000 480,000 7.40 1990 290,000 8.50 2001 515,000 7.50 1991 305,000 8.50 2002 550,000 7.60 1992 330,000 8.50 2003 590,000 7.70 1993 345,000 8.50 2004 630,000 7.75 1994 365,000 8.50 2005 675,000 7.75 1995 385,000 7.75 c 2006 720,000 7.75 1996 405,000 6.80 2007 780,000 7.75 1997 435,000 7.00 2008 580,000 7.75 1998 420,000 7.10 2009 620,000 7.75 Each Bond shall bear interest from the later of its Dated Date as herein provided or from the most recent interest payment date to which interest has been paid or duly provided for, until the principal amount of such Bond is paid or duly pro- vided 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 June 1, 1988. Interest on each Bond shall be paid by check or draft of the Paying Agent, 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 15th day of the month next preceding the interest payment date. The principal of and redemption premium, if any, due on 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 Paying Agent in the City of Chicago, Illinois, or at successor Paying Agent and locality. 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 -5- • the delivery of such Bond, such signature shall nevertheless be valid and sufficient for all purposes, the same as if such offi- cer had remained in office until delivery. All Bonds shall have thereon a certificate of authentication, substantially in the form hereinafter 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 authen- ticated and delivered under this Ordinance. The certificate of authentication 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. Optional Redemption The Bonds due on or after December 1, 1998, are subject to redemption prior to maturity at the option of the City, from any available funds, in whole or in part on any interest payment date on or after June 1, 1997, and if in part, in inverse order of maturity, 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 plus a premium (ex- pressed as a percentage of principal amount redeemed) for the dates and in the amounts as follows: Dates Premium (�) June 1 and December 1, 1997 2.00 June 1 and December 1, 1998 1.75 June 1 and December 1, 1999 1.50 June 1 and December 1, 2000 1.25 June 1 and December 1, 2001 1.00 June 1 and December 1, 2002 .75 June 1 and December 1, 2003 .50 June 1 and December 1, 2004 .25 • June 1, 2005, and thereafter -0- • Section 7. Redemption Procedure The City shall, at least 45 days prior to the redemp- tion 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 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 hot 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 and appropriate; provided, that such lottery shall pro- vide 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 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 Regis- trar. • All official notices of redemption shall include at least the information as follows: (a) the redemption date; (b) the redemption price, including premium (if any); (c) if less than all of the outstanding Bonds of a parti- cular maturity are to be redeemed, the identification (and, in the case of partial redemption of Bonds within such maturity, the MrM • 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 (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 inter- est. 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 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. 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 accor- dance with said notice, such Bonds shall be paid by the Paying • Agent at the redemption price. The procedure fo r the payment of interest due as part of the redemption price shall be as herein provided for payment 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. If any Bond or portion of Bond called for redemption shall not be so paid upon surrender 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 re- deemed; (b) the date of issue of the Bonds as originally issued; (c) the rate of interest 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 certi- fied mail or overnight delivery service to all registered secu- rities depositories then in the business of holding substantial amounts of obligations of types comprising the Bonds (such depos- itories now being Depository Trust Company of New York, New York, Midwest Securities Trust Company of Chicago, Illinois, Pacific 0 • Securities Depository Trust Company of San Francisco California, P Y and Philadelphia Depository Trust Company of Philadelphia, Penn- sylvania) and to one or more national information services, chosen in the discretion of the Bond Registrar, that disseminate notice of redemption of obligations such as the Bonds. Each further notice of redemption shall be published one time in The Bond Buyer, New York, New York or, if such publication is impractical or unlikely to reach a §ubstantial number of the registered owners of the Bonds, in !some other financial newspaper or journal which regularly carries notices of redemption of other obligations similar to the Bonds, such pub- lication to be made at least 30 days prior to the date fixed for redemption. 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 provided 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 registrar 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. 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 -10- �J 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 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 15th day of the calendar month preceding an interest payment date on the Bonds 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 authenticate, 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 lia- bility 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 • -11- • the Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any transfer or exchange of Bonds. Section 9. Form of Bond The Bonds shall be in substantially the form herein- after set forth; provided, however, that if the text of the Bond is to be printed in its entirety on the front side of the Bond, then the second paragraph of the front side of the Bond and the legend "See Reverse Side for Additional Provisions" shall be omitted and paragraphs on the reverse side of the Bond shall be inserted immediately after the first paragraph on the front side. [Form of Bond - Front Side] REGISTERED REGISTERED NO. $ UNITED STATES OF AMERICA • STATE OF ILLINOIS COUNTY OF COOK CITY OF EVANSTON CORPORATE PURPOSE BOND SERIES 1987 See Reverse Side for Additional Provisions. Interest Maturity Dated Rate: Date: Date: October 1, 1987 CUSIP Registered Owner: Principal Amount 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 -12- to pay to the Registered Owner identified above, or registered assigns as hereinafter provided, 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 interest to be payable on June 1 and December 1 of each year, commencing June 1, 1988, until the Principal Amount is paid or duly provided for. The principal of and redemption premium, if any, due on this Bond are payable in lawful money of the United States of America upon presentation hereof at the prin- cipal corporate trust office of American National Bank and Trust Company of Chicago, in the City of Chicago, Illinois, as paying agent (the "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 (the "Bond Registrar"), at the close of business on the 15th day of the month next preceding the interest payment date and shall be paid by check or draft of the Paying Agent, 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. Reference is hereby made to the further provisions of this Bond set forth on the reverse hereof, and such further pro- visions 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, have existed and have been properly done, • -13- • happened and been performed in regular and due form and time as required by law; 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 constitu- tional 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 prop- erty in the City 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 exe- cuted 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 Date identified above. Attest: City Clerk, City of Evanston Cook County, Illinois (SEAL) • Mayor, City of Evanston Cook County, Illinois -14- • • Date of Authentication: CERTIFICATE OF AUTHENTICATION This Bond is one of the Bonds described in the within mentioned Ordinance and is one of the Corporate Purpose Bonds, Series 1987, having a Dated Date of October 1, 1987, of the City of Evanston, Cook County, Illinois. American National Bank and Trust Company of Chicago as Bond Registrar By Authorized Officer Bond Registrar and Paying Agent: American National Bank and Trust Company of Chicago Chicago, Illinois 11 [Form of Bond - Reverse Side] City of Evanston, Cook County, Illinois Corporate Purpose Bond, Series 1987 This bond is one of a series of bonds (the "Bonds") in the aggregate principal amount of $10,030,000 issued by the City for the purpose of paying a part of the costs of the 1987 Bonds Capital Improvements, and 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 Illinois Constitution of 1970, and with the Ordinance, which has been duly passed by the City Council, and published, in all respects as by law required. 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 the Ordinance. Upon surrender for trans- fer or exchange of any Bond at the principal corporate trust office of the Bond Registrar in the City of Chicago, Illinois, duly endorsed by or accompanied by a written instrument or in- struments of transfer or exchange in form satisfactory to the -15- • 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 15th day of the calendar month preceding an interest payment date on the Bonds 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, 1998, are subject to redemption prior to maturity, at the option of the City, from • any available funds, in whole or in part on any interest payment date on or after June 1, 1997, and if in part, in inverse order of maturity, 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 plus a premium (expressed as a percentage of principal amount redeemed) for the dates and in the amounts as follows: Dates Premium (�) June 1 and December 1, 1997 2.00 June 1 and December 1, 1998 1.75 June 1 and December 1, 1999 1.50 June 1 and December 1, 2000 1.25 June 1 and December 1, 2001 1.00 June 1 and December 1, 2002 .75 June 1 and December 1, 2003 .50 June 1 and December 1, 2004 .25 June 1, 2005, and thereafter -0- 0 CK-M • 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 Regis- trar. 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 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 interest. Upon surren- der 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 payment of interest otherwise due. Upon surrender for any partial redemp- tion of any Bond, there shall be prepared for the Registered Owner a new Bond or Bonds of like tenor, of authorized denomina- tions, of the same maturity, and bearing the same rate of inter- est in the amount of the unpaid principal. -17- • The City, the Bond Registrar and the Paying Agent 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 pur- poses, and the City, the Bond Registrar and the Paying Agent shall not be affected by any notice to the contrary. ASSIGNMENT FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto (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 regis- tration thereof with full power of substitution in the premises. • Dated: Signature guaranteed: NOTICE: The signature to this transfer and assignment must cor- respond with the name of the Registered Owner as it appears upon the face of the within Bond in every par- ticular, without alteration or enlargement or any change whatever. Section 10. Tax Levy 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 City, in the years for which any of the Bonds are outstanding, a direct annual tax sufficient for that purpose; and there is here- by levied on all of the taxable property in the City, in addition • -18- • to all other taxes, the following direct annual taxes (the "Pledged Taxes": For the Year A Tax Sufficient to Produce the Sum of: 1987 $ 958,332.50 for principal and interest up to and including December 1, 1988 1988 875,160.00 for principal and interest 1989 1,051,235.0'0 for principal and interest 1990 1,041,585.00 for principal and interest 1991 1,040,660.00 for principal and interest 1992 1,027,610.00 for principal and interest 1993 1,018,285.00 for principal and interest 1994 1,0070,260.00 for principal and interest 1995 997,422.50 for principal and interest 1996 999,882.50 for principal and interest 1997 954,432.50 for principal and interest 1998 9540,612.50 for principal and interest • 1999 951,762.50 for principal and interest 2000 951,242.50 for principal and interest 2001 947,617.50 for principal and interest 2002 945,817.50 for principal and interest 2003 940,387.50 for principal and interest 2004 936,562.50 for principal and interest 2005 929,250.00 for principal and interest 2006 933,450.00 for principal and interest 2007 673,000.00 for principal and interest 2008 668,050.00 for principal and interest Interest or principal coming due at any time when there are insufficient funds on hand from the Pledged Taxes to pay the same shall be paid promptly when due from current funds on hand in advance of the collection of the Pledged Taxes herein levied; and when the Pledged Taxes shall have been collected, reimburse- ment shall be made to said funds in the amount so advanced. -19- • Whenever 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 City Council 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 of any such proceedings abating taxes shall be filed with the'County Clerk of The County of Cook, Illinois, in a timely manner to effect such abatement. 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 foregoing tax levy. The City and its officers will comply with all present and future appli- cable laws in order to assure that the Pledged Taxes may be levied, extended and collected as provided herein and deposited • into the Bond Fund. Section 11. Filing with County Clerk 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 of The County of Cook, Illinois; and said County Clerk shall in and for each of the years 1987 to 2008, inclusive, ascertain the rate percent required to produce the aggregate tax hereinbefore provided to be levied in each of said years and in each of said Counties; and said County Clerk shall (to the extent said tax has not been abated as provided herein) extend the same for collection on the tax books in con- nection with any other taxes that may be levied in said years in and by the City for general corporate purposes of the City; 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 provided by law for the levy and collection of taxes for general corporate purposes for said years, without limit as to either rate or amount, and in addition to and in excess of all other taxes. • -20- • Section 12. Sale of Bonds The Bonds shall be executed as in this Ordinance pro- vided as soon after the passage hereof as may be, shall be depos- ited with the City Controller, and shall be by the City Control- ler delivered to the purchasers thereof, namely, THE NORTHERN TRUST CO. & ASSOCIATES & CHICAGO ILLINOIS , upon payment of the purchase price agreed upon, the same being not less than $10,030,050 plus accrued interest to date of delivery. The contract (bid form) for the sale of the Bonds to such purchasers, dated the date of this Ordinance, as presented to the City Council with this Ordinance, is hereby in all respects approved and confirmed, it being hereby declared 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 the name of any other person, association, trust or corporation, in such contract. The appropriate officers of the City are hereby authorized and • directed to execute such contract. Section 13. Creation of Funds and Appropriations Accrued interest and premium, if any, on the Bonds shall be and is hereby appropriated for the purpose of paying the first interest due on the Bonds and to such end is hereby ordered to be deposited into the "Corporate Purpose Bonds, Series 1987, Debt Service Fund" (the "Debt Service Fund"), hereby created, which shall be the fund for the payment of principal of and interest on the Bonds. The Pledged Taxes shall either be deposited into the Debt Service Fund and used solely and only for paying the principal of and interest.on the Bonds or be used to reimburse a fund or account from which advances to the Debt Service Fund may have been made to pay principal of or interest on the Bonds prior to receipt of Pledged Taxes. Interest income or investment profit earned in the Debt Service Fund shall be retained in the Debt Service Fund for payment of the principal of or interest on the Bonds on the interest payment date next after such interest • -21- .• • or profit is received or, to the extent lawful and as determined by the City Council, 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 Pledged Taxes for the sole benefit of the registered owners of the Bonds, subject to the reserved right of the City Council to transfer certain interest income or investment profit earned in the Debt Service Fund to4other funds of the City, as described in the preceding sentence. $3,030,000 of the principal proceeds of the Bonds shall be set aside in a separate fund, hereby created, and designated as the "Bond Series 1987 Capital Project Fund" (the "Project Fund"), hereby created. $7,000,000 of said proceeds for the parking garage shall be credited to the City's existing Parking System Fund and shall further be deposited into an escrow as pro- vided in the City's letter of intent with Rescorp Development, Inc. regarding the parking garage. The form of the escrow agree- ment shall be such as to effectuate the terms of such letter, satisfactory to counsel to the City and bond counsel for the Bonds and as approved by the Mayor and City Clerk, who are hereby authorized and directed to execute same. The City Council reserves the right, as it becomes necessary from time to time, to revise the list of projects hereinabove set forth, to change priorities, to revise cost allocations between projects and to substitute projects, in order to meet current needs of the City; subject, however, to the terms of said escrow and to the tax covenants set forth herein. Section 14. Not Private Activity Bonds None of the Bonds is a "private activity bond" as de- fined in Section 141(a) of the Code. In support of such conclu- sion, the City certifies, represents and covenants as follows: A. None of the proceeds of the Bonds are to be used, directly or indirectly, in any trade or business carried on by any person other than a state or local governmental unit. -22- • B. No direct or indirect payments are to be made on any Bond 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 are to be used, directly or indirectly, to make or finance loans to persons other than a state or local governmental unit. D. No user .of any property or equipment acquired as part of the 1987 Bonds Capital Improvements, and paid for with proceeds of the Bonds; other than the City, will use the same on any basis other than the same basis as the general public; and no person will be a user of any property or equipment acquired as part of the 1987 Bonds Capital Improvements, and paid for with proceeds of the Bonds, 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 15. General Arbitrage Covenants The City represents and certifies as follows with re- spect to the Bonds: A. The City has heretofore incurred, or within six months after delivery of the Bonds expects to incur, substantial binding obligations with respect to the 1987 Bonds Capital Improvements to be paid for with money received from the sale of the Bonds, said binding obligations comprising binding contracts for the 1987 Bonds Capital Improvements in not less than the amount of $250,750. B. More than $8,525,500 of the proceeds of the Bonds will be expended on or before October 1, 1990, for the purpose of paying costs of the 1987 Bonds Capital Improvements, said date being within three years following the date of issue of the Bonds. • C. All of the principal proceeds of the Bonds, and in- vestment earnings thereon, will be used, needed and expended for the purpose of paying costs of the 1987 Bonds Capital Improve- ments, including expenses incidental thereto. -23- • D. Work on the 1987 Bonds Capital Improvements is expected to proceed with due diligence to completion. E. No acquisition or improvement made as a part of the 1987 Bonds Capital Improvements has been or is expected to be sold or otherwise disposed of in whole or in material part prior to the last maturity of the Bonds. "Material part" means (i) land, or (ii) any improvement, or (iii) personal property or fix- tures in excess of that which is expected to be sold, traded in or discarded upon wearing out or becoming obsolete. F. The City will receive the agreed -upon purchase price for the Bonds plus accrued interest. Accrued interest and premium, if any, on the Bonds are to be deposited into the Bond Fund and,used to pay first interest coming due on the Bonds. G. Except for the Debt Service Fund, the City has not created or established and will not create or establish any sink- ing fund, reserve fund 'or any other similar fund to provide for the payment of the Bonds. The Debt Service Fund has been estab- lished 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 1/12 the particular annual debt service on the Bonds. Money deposited into the Debt Service Fund will be spent within a 13-month period beginning on the date of deposit, and investment earnings in the Debt Service Fund will be spent or withdrawn from the Debt Service Fund within a one-year period beginning on the date of receipt. • H. The foregoing statements of expectation are based upon the following facts and estimates. (1) Amounts shown as received will be received pursu- ant to the bond purchase contract. (2) Amounts paid or to be paid into various funds and accounts have been directed to be paid into said funds and accounts by authority hereof or are expected to be so directed to be paid by further proceedings. -24- 1• (3) The anticipated dates of the obligation of and expenditure of money in the Project Fund derived from the sale of Bonds and the amounts to be spent on or before such dates is based upon consultation with the architects, engineers and ad- ministrative staff of the City charged with responsible super- vision of the 1987 Bonds Capital Improvements. I. The. City has not been notified of any disqualifi- cation or proposdd disqualification of it by the Commissioner of the Internal Revenue Service as a bond issuer which may certify bond issues under Treas. Reg. §1.103-13 (a)(2)(ii) (1979). J. To the best of the knowledge and belief of the aldermanic members of the City Council, and of the undersigned Mayor and City Clerk who are officers charged with the responsi- bility of issuing the Bonds, there are no facts, estimates or circumstances that would materially change the conclusions and representations set out in this section, and the expectations set out in this section are reasonable. • 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 con- nection 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, including Treas. Reg. §§1.103-13, 1.103-14 and 1.103-15 (1979) as the same presently exist or may from time to time hereafter be amended, supplemented or revised. Section 16. Arbitrage Rebate The City recognizes that the provisions of Section 148 of the Code require a rebate to the United States in certain cir- cumstances applicable to the Bonds, and covenants to make such rebate. • -25- • Section 17. 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 generality, the City agrees: (a) through its officers, to make such further specific covenants, representations as shall be truthful, and assurances as may be necessary or advisable; (b) to comply with all repre- sentations, 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 pay to the United States, as necessary, such sums of money representing required rebates of excess arbitrage profits relating to the Bonds; (e) to file such forms, statements and supporting documents as may be required and in a timely man- ner; and (f) if deemed necessary or advisable by its officers, to employ and pay- fiscal agents, financial advisors, attorneys and • other persons to assist the City in such compliance. Section 18. Registered Form The City recognizes that Section 149 of the Code re- quires 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 19. Opinion of Counsel Exception The City reserves the right to use or invest moneys in connection with the Bonds in any manner, notwithstanding the representations and covenants in Sections 14 through 18 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 as contemplated will not result in loss or impairment of Tax-exempt status for the Bonds. • -26- • Section 20. Rights and Duties of Bond Registrar If requested by the Bond Registrar and Paying Agent, any officer of the City is authorized to execute the Bond Regis- trar's and Paying Agent's standard form of agreement between the City and the Bond Registrar and Paying Agent with respect to the obligations and duties of the Bond Registrar and Paying Agent hereunder. In addition to the terms of such agreement or agree- ments and subject to modification thereby, the Bond Registrar and Paying Agent by acceptance of duties hereunder agree: (a) to act as bond registrar, paying agent, authenticating agent, and transfer agent as respectively provided herein; (b) for the Bond Registrar, to maintain a list of Bondhol- ders as set forth herein and to furnish such list to the City upon request, but otherwise to keep such list confidential to the extent permitted by law; (c) for the Bond Registrar, to cancel and/or destroy Bonds which have been paid at maturity or upon redemption or submitted for exchange or transfer; (d) for the Bond Registrar, to furnish the City at least annually a certificate with respect to Bonds cancelled and/or destroyed; and (e) for the Bond Registrar, 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 certified copy of this Ordinance with the Bond Registrar and the Paying Agent. Section 21. 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 City Council. -27- i Section 22. Superseder and Effective Date All ordinances, resolutions and orders, or parts there- of, in conflict herewith, are to the extent of such conflict hereby superseded; and this Ordinance shall be in full force and effect immediately upon its passage, approval and publication. AYES: = Aldermen Rudy, Juliar, Paden, Drummer, Davis, Brady, Raden, Korshak, Morton, Wold, Bleveans, Collens, Rainey, Larson, Feldman and NAYS: None. ABSENT: Aldermen Nelson and Summers. ADOPTED: September 14, 1987 APPROVED: September 16 , 1987 May , City of Evanston Cook County, Illinois iRECORDED In City Records: September 16 , 1987. PUBLISHED in pamphlet form by authority of the City Council at 2:00 P •m• on September 16 , 1987. Attest: r� City Clerk, City of Evanston Cook County, Illinois i -28-