2006-08-09 CC Packet - Laserfiche WebLink

Home Browse Search

The City may elect on March 1, 2010, and on any day thereafter to prepay Bonds due on or after March 1, 2011. Redemption may be in whole or in part and if in part, at the option of the City and in such manner as the City will determine. If less than all Bonds of a maturity are called for redemption, the City will notifY Depository Trust Company (DTC) of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest \in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. Prepayments will be at a price of par plus accrued interest. The City Coun.cil has desigJ'ated the issue of Bonds of which this Bond forms a part as "qualified tax exempt obligations" within the mestning of Section 26S(b)(3) of the In.temal Ilevenue Code of 1986, as amended (the Code) relating to disallowance of interest expense for financial institutions and within the S10 million limit allowed by the Code for the calendar year of issue. This Bond is one of an issue in the aggregate principal amount of $3,000,000 all of like original issue date and tenor, except as to number, maturity date, redemption privilege, and interest rate, all issued pursuant to a resolution adopted by the City Council on August 9, 2006 (the Resolution), for the purpose of providing money to defray the expenses incurred and to be incurred in making local improvements, pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Chapter 429, and the principal hereof and interest hereon are payable from special assessments against property specially benefited by local improvements and from ad valorem taxes for the City's share of the cost of the improvements, as set forth in the Resolution to which reference is made for a tbll statement of rights and powers thereby conferred. The tbll faith and credit of the City are irrevocably pledged for payment oftbis Bond and the City Council has obligated itself to levy additional ad valorem taxes on all taxable property in the City in the event of any deficiency in special assessments and taxes pledged, which additional taxes may be levied without limitation as to rate or amount. The Bonds of this series are issued only as fully registered Bonds in denominations ofSS,OOO or any integral multiple thereof of single maturities. As provided in the Resolution and subject to certain limitations set forth therein, this 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 authorized 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 same 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 traDSfer 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, ~ the pwpose of receiving payment and for all other purposes, and neither the City nor the Bond Registrar will be affected by any notice to the contrary. Page 8 of22 ~