Res. #11-007 - Accepting Proposals on the Sale of $2,760,000 G.O. Refunding Bond

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At the option of the City, Bonds maturing on or after July 1, 201'1, sha11 each be subject to call and prior payment on July 1, 2016, or on any date thereafter at a price equal to the principal amount ther�f to be redeemed plus interest accrued to the date of redemption. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, the selection of the Bonds remaining unpaid to be prepaid shall be at the discretion of the City. If only part of the Bands having a common maturity date are called for prepayment the City will notify the Depository of the particular amount of such maturity to be prepaid. The Depository will determine by lot the amount of participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interest in such maturity to be redeexned. The City Council of the City has designated the Bonds as"qualified tax exempt obligations" within the meaning of Section 265(b)(3) of the Internal Revenue code of 1986, as amended (the "Code"), relating to disallowance of interest expense for financial institutions and within the $10 million limitation allowed by the Code for the calendar year of issue. This Bond is one of an issue in the aggregate principal amount of $2,760,000 all of like original issue date and tenor, except as to number, maturity date, and interest rate, all issued I pursuant to a resolution adopt� by the City Council of the City on March 23, 2011, (the I "Resolution"), for the purpose providing funds to fmance the current refunding of the City's General Obligation Improvement Bonds, Series 2004B, and its General Obligation Improvement , Bonds, Series 2007A, which bonds were issued to pay authorized public costs incurred by the ' City, pursuant to and in full conformity with the Constitution and laws of the State of Minnesota. Pursuant to the Resolution, the City has pledged to the payment of this Bond receipts of special ' assessments levied by the City pursuant to Minnesota Statutes, Chapter 429. The full faith and credit of the City are irrevocably pl�ged for payment of this Bond and the City Council has , obligated itself to levy ad valorem taJCes on a11 taxable property in the City in the event of any ' deficiency in revenues pledged, which taxes may be levied without limita.tion as to rate or amount. The Bonds of this series are issued only as fully registered bonds in Authorized ' Denominations (as defined in the Resolution described above). As provided in the Resolution and subject to certain limitations set forth therein, this I Bond is transferable upon the books of the City at the principal office of the Bond Registrar, by the registered owner hereof in person or by the owner's attorney duly author�zed in writing upon surrender hereof together with a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the registered owner or the owner's attorney; and may also be surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange the City will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner, of the same aggregate principal amount, bearing interest at the sazne rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental charge required to be paid with respect to such transfer or exchange. The City and the Bond Registrar may deem and treat the person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment and for all other purposes, and neither the City nor the Bond Registrar shall be affected by any notice to the contrary. 10