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Ordinance 2451CITY OF EDMONDS, WASHINGTON ORDINANCE NO. 2451 AN ORDINANCE adopting a system of registration of bonds and obligations of the City. WHEREAS, Section 1.03(j) of the Internal Revenue Code of 1954, as amended, requires municipal bonds and obligations offered to the public, having a maturity of more than one year and issued after June 30, 1983, to be in registered form as a condition of the exemption from federal income taxation of the interest on those bonds and obligations; and WHEREAS, section 3, chapter 167, Laws of 1983, authorizes cities to establish a system of registering the ownership of their bonds or obligations as to principal and interest, or principal only; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, DO ORDAIN as follows: Section 1. Definitions. The following words shall have the following meanings when used in this ordinance: a. The term "bond" or "bonds" shall have the meaning defined in section 2(1), chapter 167, Laws of 1983, as the same may be from time to time amended. b. The term "City" shall mean the City of Edmonds, Washington. C. The term "fiscal agencies" shall mean the duly appointed fiscal agencies of the State of Washington serving as such at any given time. d. The term "obligation" or "obligations" shall have the meaning defined in section 2(3), chapter 167, Laws of 1983, as the same from time to time may be amended. e. The term "registrar" shall be the person or persons designated by the City to register ownership of bonds or obligations under this ordinance. Section 2. Findings. The City Council of. the City finds that it is in the City's best interest to establish a system of registering the ownership of the City's bonds and obligations in the manner permitted by law. Section 3. Adoption of Registration System. The City adopts the following system of registering the ownership of its bonds and obligations. a. Registration Requirement. All bonds and obligations offered to the public, having a maturity of more than one year and issued by the City after June 30, 1983, on which the interest is intended to be exempt from federal income taxation, shall be registered as to both principal and interest as provided in this ordinance. b. Method of Registration. The registration of all City bonds and obligations required to be registered shall be carried out either by - 2 - 1) a book entry system of recording the ownership of the bond or obligation on the books of. the City or the fiscal agencies, whether or not a physical instrument is issued; or 2) by recording the ownership of the bond or obligation and requiring as a condition of the transfer of ownership of any bond or obligation the surrender of the old bond or obligation and either the reissuance of the old bond or obligation or the Issuance of a new bond or obligation to the new owners. No transfer of any bond or obligation subject to registration requirements shall be effective until the name of the new owner and the new owner's mailing address, together with such other information deemed appropriate by the registrar, shall be recorded on the books of the registrar. C. Denominations. Except as may be provided otherwise by the ordinance authorizing their issuance, registered bonds or obligations may be issued and reissued in any denomination up to the outstanding principal amount of the bonds or obligations of which they are a part. Such denominations may represent all or a part of a maturity or several maturities and on reissuance may be in smaller amounts than the individual denominations for which they are reissued. d. Appointment of Registrar. Unless otherwise provided in the ordinance authorizing the issuance of registered bonds or obligations, the City Finance Director shall be the registrar for all registered interest -bearing warrants, installment contracts, interest -bearing leases and other registered bonds or obligations not usually subject to trading 3 - and the fiscal agencies shall be the registrar for all other City bonds and obligations. e. Duties of Registrar. The registrar shall serve as the City's authenticating trustee, transfer agent, registrar and paying agent for all registered bonds and obligations for which he, she, or it serves as registrar and shall comply fully with all applicable federal and state laws and regulations respecting the carrying out of those duties. The rights, duties, responsibilities and compensation of the registrar shall be prescribed in each ordinance authorizing the issuance of the bonds or obligations, which rights, duties, responsibilities and compensation shall be embodied in a contract executed by the City Finance Director and the registrar, except in instances when the fiscal agencies serve as registrar, the City adopts by reference the contract between the State Finance Committee of the State of Washington and the fiscal agencies in lieu of executing a separate contract and prescribing by ordinance the rights, duties, obligations and compensation of the registrar. When the City Finance Director serves as registrar, a separate contract shall not be required. In all cases when the registrar is not the fiscal agencies and the obligation is assignable, the ordinance authorizing the issuance of the registered bonds or obligations ( shall specify the terms and conditions of. ! 1) making payments of principal and interest; - 4 - 2) printing any physical instruments, including the use of identifying numbers or other designation; 3) specifying record and payment dates; 4) determining denominations; 5) establishing the manner of communicating with the owners of the bonds or obligations; 6) establishing the methods of receipting for the physical instruments for payment of principal, the destruction of such instruments and the certification of such destruction; 7) registering or releasing security interests, if any; and 8) such other matters pertaining to the registration of the bonds or obligations authorized by such ordinance as the City may deem to be necessary or. appropriate. Section 4. Statement of Transfer Restrictions. Any physical instrument issued or executed by the City subject to registration under this ordinance shall state on its face that the principal of and interest on the bonds or obligations shall be paid only to the owner thereof registered as such on the books of the registrar as of the record date defined in the instrument and to no other person, and that such instrument, either principal or interest, may not be assigned except on the books of the registrar. - 5 - PASSED by the City Council and APPROVED by the Mayor of the City of Edmonds, Washington, at a regular open public meeting thereof this 7th day of August, 1984. ATTEST: Ci Clerk FORM APPROVED: � d City Attorney FILED WITH THE CITY CLERK: August 3, 1984 PASSED BY THE CITY COUNCIL: August 7, 1984 POSTED: August 8, 1984 EFFECTIVE DATE: August 12, 1984 ORDINANCE: 2451 S� May Pro Tem AFFIDAVIT OF POSTING ORDINANCE STATE OF WASHINGTON ) ) ss: COUNTY OF SNOHOMISH ) JACQUELINE G. PARRETT , being first duly sworn on oath deposes and says that the is over the age of eighteen (18) years and is competent to testify as to the matter stated herein. There is no official newspaper or other newspaper printed and published within the City. In accordance with RCW 35A.12.160, on the 8th day of August , 1984, affiant posted true and correct copies of the attached Ordinance No. 2451, passed by the City Council on the 7th day of August , 1984, at the official posting places for City notices which are the public bulletin boards at the following locations: Edmonds Civic Center 250 Fifth Avenue North Edmonds, Washington 98020 Edmonds Public Library Civic Center, 250 Fifth Avenue North Edmonds, Washington 98020 Edmonds Branch of United States Post Office 201 Main Street Edmonds, Washington 98020 DATED this 9th day of August , 1984. SUBSCRIBED AND SWORN to before me this 9th day of August 19 84. r1zAO o ary Public in and for the State of Washington, residing at Cj Mn!/1na-