2009-09-23 CC Packet - Laserfiche WebLink

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4.01. At the option of the City, Bonds maturing on or after February I, 2016, shall each be subject to call and prior payment on February 1,2015, or on any date thereafter at a price equal to the principal amount thereof 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 maturity and the principal amounts within each maturity to be redeemed shall be determined by the City and if only part of the Bonds having a common maturity date are called for prepayment, the specific Bonds to be prepaid shall be chosen by lot by the Registrar, as herein defined. (To be used if Term Bonds are included) Bonds maturing in the year( s) are subject to mandatory redemption on February I in the years and principal amounts as follows: Mandatory Redemption Schedule Term Bonds Due 20 Term Bonds Due 20 Redemption (February 1) Amount Redemption (February 1) Amount or, if less than such amount is then outstanding, an amount equal to the aggregate principal amount of the Bonds then outstanding. The City may, at its option, to be exercised on or before the thirtieth day preceding any mandatory redemption date specified above deliver to the Registrar written notice which shall (a) specify a principal amount of Term Bonds previously redeemed (otherwise than pursuant to the above Mandatory Redemption Schedule) or purchased and cancelled by the Registrar and not theretofore applied as a credit against any redemption of Term Bonds pursuant to the above Mandatory Redemption Schedule, and (b) instruct the Registrar to apply the principal amount of such Term Bonds so delivered or previously redeemed or purchased and cancelled for credit against the principal installments to be prepaid pursuant to the Mandatory Redemption Schedule. Each such Term Bond so delivered or previously redeemed or purchased and cancelled shall be credited by the Registrar in the order directed by the Authority at succeeding and future principal installments to be prepaid pursuant to the Mandatory Redemption Schedule. The specific Term Bonds to be redeemed will be selected by lot by the Registrar. All prepayments will be at a price of par plus accrued interest. 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 $30 million limitation allowed by the Code for the calendar year of issue. 11 19