Loading...
Ordinance 2940ORDINANCE NO. 2940 AN ORDINANCE RELATING TO LOCAL IMPROVEMENT DISTRICT NO. 213; FIXING THE AMOUNT, FORM, DATE, INTEREST RATES, MATURITY AND DENOMINATIONS OF THE LOCAL IMPROVEMENT DISTRICT NO. 213 BONDS; PROVIDING FOR THE SALE AND DELIVERY THEREOF TO SEATTLE - NORTHWEST SECURITIES CORPORATION IN SEATTLE, WASHINGTON; AND FIXING THE INTEREST RATE ON LOCAL IMPROVEMENT DISTRICT NO. 213 ASSESSMENT INSTALLMENTS. THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Authorization and Description of Bonds. The total amount of the assessment roll in Local Improvement District No. 213 in the City of Edmonds, Washington (the "City ") , created under Ordinance No. 2878, passed April 21, 1992, was $424,046.63. The 30 -day period for making cash payments of assessments without interest in the District expired on July 12, 1993, and the total amount of assessments paid in cash was $83,103.50, leaving a balance of assessments unpaid on the assessment roll in the sum of $340,942.94. Local Improvement District No. 213 Bonds (the "Bonds ") shall, therefore, be issued in the total principal sum of $340,942.94. The Bonds shall be dated August 1, 1993, shall mature on August 1, 2005, and shall be numbered from 1 to 68, inclusive, in the manner and with any additional designation as the Bond Registrar (collectively, the fiscal agencies of the State of Washington located in Seattle, Washington, and New York, New York) deems necessary for the purpose of identification. Bond No. 1 shall be in the denomination of $5,942.94 and Bonds Nos. 2 to 68, inclusive, shall be in the denomination of $5,000.00 each. Interest shall be computed on the basis of a 360 -day year of twelve 0086633.01 30 -day months. The Bonds shall bear interest, payable on August 1, 1994, and annually thereafter on each succeeding August 1, in accordance with the following schedule: Bond Numbers Interest (inclusive) Amounts Rates 1 to 9 $45,942.94 3.40% 10 to 17 40,000.00 4.00 18 to 24 35,000.00 4.25 25 to 31 35,000.00 4.50 32 to 38 35,000.00 4.75 39 to 44 30,000.00 5.00 45 to 50 30,000.00 5.15 51 to 56 30,000.00 5.30 57 to 62 30,000.00 5.40 63 to 68 30,000.00 5.50 Section 2. Registration and Transfer of Bonds. The Bonds shall be issued only in registered form as to both principal and interest and shall be recorded on books or records maintained by the Bond Registrar (the "Bond Register ") . Such Bond Register shall contain the name and mailing address of the owner of each Bond and the principal amount and number of each of the Bonds held by each owner. Bonds may be transferred only if endorsed in the manner provided thereon and surrendered to the Bond Registrar. The transfer of a Bond shall be by the Bond Registrar's receiving the Bond to be transferred, cancelling it and issuing a new certificate in the form of the Bonds to the transferee after registering the name and address of the transferee on the Bond Register. The new certificate shall bear the same Bond number as the transferred Bond but may have a different inventory reference number or control number. Any exchange or transfer shall be without cost to the owner or transferee. The Bond Registrar shall not be obligated to 0086633.01 -2- exchange or transfer any Bond during the 15 days preceding any principal payment or redemption date. Section 3. Payment of Bonds. Both principal of and interest on the Bonds shall be payable solely out of the Local Improvement Fund, District No. 213 (the "Bond Fund ") , and from the Local Improvement Guaranty Fund of the City, and shall be payable in lawful money of the United States of America. Interest on the Bonds shall be paid by check or draft mailed to the registered owners on the interest payment date at the addresses appearing on the Bond Register on the 15th day of the month preceding the interest payment date. Principal of the Bonds shall be payable upon presentation and surrender of the Bonds by the registered owners at either of the principal offices of the Bond Registrar at the option of the owners. Section 4. Redemption Provisions. The City reserves the right to redeem the Bonds prior to their stated maturity on any interest payment date, in numerical order, lowest numbers first, at par plus accrued interest to the date fixed for redemption, whenever there shall be sufficient money in the Bond Fund to pay the Bonds so called and all earlier numbered Bonds over and above the amount required for the payment of the interest on all unpaid Bonds. Bonds may be called and paid from assessment payments only up to and including August 1, 1998, and thereafter may be paid from other money of the City legally available therefor and deposited in the Bond Fund. All Bonds redeemed under this section shall be cancelled. 0086633.01 -3- Section 5. Notice of Redemption. The city shall cause notice of any intended redemption of Bonds to be given not less than 30 nor more than 45 days prior to the date fixed for redemption by first -class mail, postage prepaid, to the registered owner of any Bond to be redeemed at the address appearing on the Bond Register at the time the Bond Registrar prepares the notice, and the requirements of this sentence shall be deemed to have been fulfilled when notice has been mailed as so provided, whether or not it is actually received by the owner of any Bond. Interest on Bonds called for redemption shall cease to accrue on the date fixed for redemption unless the Bond or Bonds called are not redeemed when presented pursuant to the call. In addition, the redemption notice shall be mailed within the same period, postage prepaid, to Seattle- Northwest Securities Corporation at its principal office in Seattle, Washington, or its successor, and to such other persons and with such additional information as the City Finance Director shall determine, but these additional mailings shall not be a condition precedent to the redemption of Bonds. Section 6. Failure to Redeem Bonds. If any Bond is not redeemed when properly presented at its maturity or call date, the City shall be obligated to pay interest on that Bond at the same rate provided in the Bond from and after its maturity or call date until that Bond, both principal and interest, is paid in full or until sufficient money for its payment in full is on deposit in the Bond Fund and the Bond has been called for payment by giving notice of that call to the registered owner of each of those unpaid Bonds. 0086633.01 -4- Section 7. Form and Execution of Bonds. The Bonds shall be printed, lithographed or typed on good bond paper in a form consistent with the provisions of this ordinance and state law, shall be signed by the Mayor and the City Clerk, either or both of whose signatures may be manual or in facsimile, and the seal of the City or a facsimile reproduction thereof shall be impressed or printed thereon. Only Bonds bearing a Certificate of Authentication in the following form, manually signed by the Bond Registrar, shall be valid or obligatory for any purpose or entitled to the benefits of this ordinance: CERTIFICATE OF AUTHENTICATION This bond is one of the fully registered City of Edmonds, Washington, Local Improvement District No. 213 Bonds described in the Bond Ordinance. Washington State Fiscal Agency Bond Registrar By Authorized Signer The authorized signing of a Certificate of Authentication shall be conclusive evidence that the Bonds so authenticated have been duly executed, authenticated and delivered and are entitled to the benefits of this ordinance. If any officer whose facsimile signature appears on the Bonds ceases to be an officer of the City authorized to sign bonds before the Bonds bearing his or her facsimile signature are authenticated or delivered by the Bond Registrar or issued by the City, those Bonds nevertheless may be authenticated, issued and delivered and, when authenticated, issued and delivered, shall be as binding on 0086633.01 -5- the City as though that person had continued to be an officer of the City authorized to sign bonds. Any Bond also may be signed on behalf of the City by any person who, on the actual date of signing of the Bond, is an officer of the City authorized to sign bonds, although he or she did not hold the required office on the date of issuance of the Bond. Section S. Bond Registrar. The Bond Registrar shall keep, or cause to be kept, at its principal corporate trust office, sufficient books for the registration and transfer of the Bonds which shall be open to inspection by the City at all times. The Bond Registrar is authorized, on behalf of the City, to authenticate and deliver Bonds transferred or exchanged in accordance with the provisions of the Bonds and this ordinance, to serve as the City's paying agent for the Bonds and to carry out all of the Bond Registrar's powers and duties under this ordinance and City Ordinance No. 2451 establishing a system of registration for the City's bonds and obligations. The Bond Registrar shall be responsible for its representations contained in the Bond Registrar's Certificate of Authentication on the Bonds. The Bond Registrar may become the owner of Bonds with the same rights it would have if it were not the Bond Registrar and, to the extent permitted by law, may act as depository for and permit any of its officers or directors to act as members of, or in any other capacity with respect to, any committee formed to protect the rights of Bond owners. Section 9. Bonds Negotiable. The Bonds shall be negotiable instruments to the extent provided by RCW 62A.8 -102 and 62A.8 -105. 0086633.01 -6- Section 10. Preservation of Tax Exemption for Interest on Bonds. The City covenants that it will take all actions necessary to prevent interest on the Bonds from being included in gross income for federal income tax purposes, and it will neither take any action nor make or permit any use of proceeds of the Bonds or other funds of the City treated as proceeds of the Bonds at any time during the term of the Bonds which will cause interest on the Bonds to be included in gross income for federal income tax purposes. The City also covenants that it will, to the extent arbitrage rebate requirements of Section 148 of the Internal Revenue Code of 1986, as amended (the "Code ") , are applicable to the Bonds, take all actions necessary to comply (or to be treated as having complied) with those requirements in connection with the Bonds, including the calculation and payment of any penalties that the City has elected to pay as an alternative to calculating rebatable arbitrage, and the payment of any other penalties if required under Section 148 of the Code to prevent interest on the Bonds from being included in gross income for federal income tax purposes. The City certifies that it has not been notified of any listing or proposed listing by the Internal Revenue Service to the effect that it is a bond issuer whose arbitrage certifications may not be relied upon. Section 11. Designation of Bonds as "Oualified Tax - Exempt Obligations." The City has determined and certifies that (a) the Bonds are not "private activity bonds" within the meaning of Section 141 of the Code; (b) the reasonably anticipated amount of tax - exempt obligations (other than private activity bonds) which 0086633.01 -7- the City and any entity subordinate to the City (including any entity which the City controls, which derives its authority to issue tax - exempt obligations from the City or which issues tax - exempt obligations on behalf of the City) will issue during the calendar year in which the Bonds are issued will not exceed $10,000,000; and (c) the amount of tax - exempt obligations, including the Bonds, designated by the City as "qualified tax - exempt obligations" for the purposes of Section 265(b)(3) of the Code during the calendar year in which the Bonds are issued does not exceed $10,000,000. The City designates the Bonds as "qualified tax - exempt obligations" for the purposes of Section 265(b)(3) of the Code. Section 12. Approval of Bond Purchase Contract. Seattle - Northwest Securities Corporation of Seattle, Washington, has presented a purchase contract (the "Bond Purchase Contract ") to the City offering to purchase the Bonds under the terms and conditions provided in the Bond Purchase Contract, which written Bond Purchase Contract is on file with the City Clerk and is incorporated herein by this reference. The City Council finds that entering into the Bond Purchase Contract is in the City's best interest and therefore accepts the offer contained therein and authorizes its execution by City officials. The Bonds will be printed at City expense and will be delivered to the purchaser in accordance with the Bond Purchase Contract, with the approving legal opinion of Foster Pepper & Shefelman, municipal bond counsel of Seattle, Washington, regarding the Bonds printed on each Bond. Bond counsel shall not be required 0086633.01 -8- to review and shall express no opinion concerning the completeness or accuracy of any official statement, offering circular or other sales material issued or used in connection with the Bonds, and bond counsel's opinion shall so state. The proper City officials are authorized and directed to do everything necessary for the prompt delivery of the Bonds to the purchaser, including without limitation the execution of the Official Statement on behalf of the City, and for the proper application and use of the proceeds of the sale thereof. Section 13. Temporary Bond. Pending the printing, execution and delivery to the purchaser of definitive Bonds, the City may cause to be executed and delivered to the purchaser a single temporary Bond in the total principal amount of the Bonds. The temporary Bond shall bear the same date of issuance, interest rates, principal payment dates and terms and covenants as the definitive Bonds, shall be issued as a fully registered Bond in the name of the purchaser, and otherwise shall be in a form acceptable to the purchaser. The temporary Bond shall be exchanged for definitive Bonds as soon as they are printed, executed and available for delivery. Section. 14. Fixing Interest Rate on Assessments. The interest rate on the installments and delinquent payments of the special assessments in Local Improvement District No. 213 is revised and fixed at the rate of 5.90% per annum. 0086633.01 -9- Section 15. Effective Date of Ordinance. This ordinance shall take effect and be in force from and after its passage and five (5) days following its publication as required by law. APPROVED: •- ATTEST /AUTHENTICATED; gCLMV�01b�A J. MARCH /f4 PROVED AS TO FORM: FOSTER PEPPER & SHEFELMAN BOND COUNSEL TO TH CITY By FILED WITH THE CITY CLERK: July 27, 1993 PASSED BY THE CITY COUNCIL: July 27, 1993 PUBLISHED: August 1, 1993 EFFECTIVE DATE: August 6, 1993 ORDINANCE NO. 2940 0086633.01 -10- ENT 4TE i Og The NDS6 Co. I IN dull ;EST the 213 cea THING- the Call e total deli 'ict No. deli :rented an 1 046.63. ma' sments acts end the Izec eaving offs, In the s Bonds call •al sum boo 11 shall be i I to 68, Is c tion as I C itate of star k, New t. Bond pay i. 1 2 nter- No. i. Inter- and live 30• T st 1, t , con st 1, in the merest Nat Rates for of, 4.00 for 4.25 4.50 in 4,75 105 5.00 S 5.15 Bo 5.30 5.40 Inc 5.50 an Is shall or interest tim by the the �r Shall pu .h Bond ar ds held Re to ,tanner tre Sr. The do ing the pe iificate cal ing the fpe er. The int trans- fed ference be ;hall be Re or shall or t the 15 5 L. 061 !rest on 1361 vement Sec Local tax /able .in the on the ent )istered tax pearing obi ling the yec 3ayabie on( )isiered got strar at tior ie right $10 interest exi , at par Cot Tenever c e Bonds w€ ove the a r unpaid offs tyments prc may be put !for and rat Ing >d.. an( iotice of Its than 30 1 3tlon by to I of any wit STATE OF WASHINGTON, ss. COUNTY OF SNOHOI�ISH, Washington Stale Fiscal Agency ` -- authorized signing of a Certificate of Authentication shall be :lusive evidence that the Bonds so authenticated have been executed, authenticated and delivered and.are entitled to benefits of this ordinance. . any officer whose facsimile signature appeors on the Bonds es to be on officer of the City authorized to sign bonds before doorddelivered by the Bond Registrar iforlssued by the City e' Bonds nevertheless may be authenticated, Issued and tered and, when authenticated, Issued and delivered, shall be inding on the City as though that person had continued to be Tfflcer of the City authorized to sign bonds. Any Bond also be signed on behalf of the City by any person who, on the at date of signing of the Bond, is an officer . of the City author. to sign bonds, although he or she did not hold the required e on the date of issuance of the Bond. !ctibn 8. Bond Registrar. The Bond Registrar shall keep, or on beh ,red or 3onds and to carry OUT an les under this ordinance a system of registration - shall be responsible for IT the some rights It wouia nave r and, to the extent permitted t and permit any of its officers o or in any other capacity Witt med to protect the rights of Bon Section 9. Bonds Negotiable. TI u n ed ection 10. Preservation of To Bon s. a covenants efor federal income tax Pur y action nor make or permit am other funds of the City treated ai e during the term of the Bond! Bonds to be Included" in gross I ,poses. The City also covenan orb rebate" requirements at venue Code of 1986 as amende the Bonds, take Rii actions ne oted as having complied) with 1 n with the Bonds, including the c nalties that the City has electe culating rebotable arbitrage, a� fen if required under Se 10 Brest on the Bonds from being eral Income tax purposes. The en notified of any listing or pr venue Service to the effect m orb certifications may not be Affidavit of Publication The undersigned, being first duly sworn on oath deposes and says that she is Principal Clerk of THE HERALD, a daily newspaper printed and published in the City of Everett, County of Snohomish, and State of Washington; that said newspaper is a newspaper of general circulation in said County and State; that said newspaper has been approved as a legal newspaper by order of the Superior Court of Snohomish County and that the notice ......... ............................... Ordinance... N. o....., 2. 9- 4. Q .............................................. ..................... .......... City... of .... dmonds ........................................................ ........................ ....... rTITtaaTeOT AUme -1-1 n Vn become the owner of Bonds ....................................................................................................... ............................... Regis- fit were not the Bond Regis- g printed co of which is hereunto attached, was published in said p copy p low, may ad as depository directors to act as members respect to, any committee newspaper proper and not in supplement form, in the regular and owners. Bonds shall be negotiable y _, 62,.8.102 and 62A.8- entire edition of said paper on the following days and times, namely: use ?ds of the Bon will cause in for federal irn it will, to th n 148 of the • requirements In connec- lotion and payment of any pay as an alternative to he payment of any other 8 of the Code to prevent uded in gross income for ed listing byathe It hs not Internal is a bond Issuer whose e purposes of Section 265(b)(3) of the Code or in which the Bonds are Issued does n The City designates the Bonds as qua gatlons" for the purposes of Section 265(b Approval of Bond Purchase Contract.,Seai e has contract (the "Bond Purchase Contract") t purchase the Bonds until the terms and the Bond Purchase Contract, which wrt Dntract is on file with the City Clerk and 1, i by this reference. The City Council finds t Bond Purchase Contract is in the City's be •e accepts the offer contained therein and t i by City officials. s will be printed at City expense and will be Ice and Bonds Printed on each Bond. Bond counsel shall not be required ve been to review and shall express no opinion concerning the complete - ether or ness or accuracy of any official statement, offering circular or Brest on other sates material Issued or used in connection with the Bonds, fie elate Cnd -bond counsel's opinion shall so state. - are not The proper City officials are authorized and directed to do !ion, the everything necessary for the prompt delivery of the Bonds to the period purchoser, including without limitation the execution of the ation of Official Statement on behalf of the City, and for the proper appli- and to cation and use of the proceeds of the sale thereof. i as the Section 13. Temporary Bond. Pending the printing, execution Aitional an f definitive Bonds the City may tption of cause to be executed and delivered to the purchaser a single temporary Bond In the total principal amount of the Bonds. The is not temporary Bond shall bear the some date of Issuance, Interest all date, rates principal payment dates and terms and covenants as the I at the definitive Bonds, shall be Issued as a fully registered Bond in the "urity or name of the purchaser, and otherwise shall be in a form accept - id in full able to the purchaser. The temporary Bond shall be exchanged ;it in the for definitive Bonds. as soon as they are printed, executed and August 1, 1993 ....................................................:................................................... ............................... and that said '-fi-e*ippaper was regularly distributed to its subscribers during Bl1 of said period. ,,.` ) fir ,�.,,, ..... ( ......... ... . , ... Subscribed and sworn to before me this....... 1.9.t ............ a;} o ..........:August..:.. 19 93 ................ . ( ........ . . ..... � ............ .... ............... ................ Notary Public in and for the t of Washington, residing at Everett, Sno V� �OTAR Yes N pu & LAG "Q0F WASN� Affidavit of Publication STATE OF WASHINGTON, ss. COUNTY OF SNOHOivISH, ORDINANCE N0.2940 Washington State Fiscal Agency---- - - Bond Registrar I The undersigned, being first du AN ORDINANCE RELATING TO O LOCAL IMPROVEMENT BV DISTRICT NO. 213; FIXING THE AMOUNT FORM, DATE INTEREST RATES MATURITY AND DENdMINATiONS Of .` - .Authorized Signer The signing of a Certificate of Authentication shall be that i P al Clerk Of a She S Principal p THE LOCAL IMPTHE EM NO' authorized conclusive evidence that the Bands so authenticated have been NG ENAND DELIVERY 'T213 ONDS' PROVIDING duly executed, authenticated and delivered and are entihed to printed and published in the Cii SECURITIES CORPORATION IN SEATTLE WASHINGTON• AND FIXING THE: .INTEREST RATE ON LOCAL IMPROVEMENT DISTRICT 'NO. 213 the benefits of this ordinance. if any officer whose facsimile signature appears on the Bonds ceases To be an officer of the City authorized To sign bonds before and State of Washington; that ASSESSMENT INSTALLMENTS. THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHING- AS FOLLOWS: -- the Bonds bearing his or her facsimile signature are outhentb cated or delivered by the Bond Registrar or Issued by the City heless be authenticated, Issued and general circulation in Said COui TON; HEREBY ORDAINS Sectlon 1. Authorization and Description of Bonds. The total those eontls neveHheless may delivered and, when coy Issued and delivered, shall be - a -District No. as binding on the City as though that person had continued to be has been approved as a legal n pp g 213 in the City of Edmonds, Washington (the "City "), created under Ordinance No. 2878, passed April 21, 1992, was.$424,046.63. an officer of the City authorized to sign bonds. Any Bond also may be signed on behalf of The City by any person who, on the The 30 -day period for making cash payments- of assessments actual date of signing of the Bond, Is an officer of the City author. Court of Snohomish County and without Interest in the District expired on July 12, 1993 and .the total amount of assessments paid in cash was $83,103.56; leaving ized to sign bonds, although he or she did not.hoid the required' office on the date of Issuance of The Bond. a balance of assessments unpaid on the assessment roil In the sum of $340942.94. Local Improvement District No. 213 Bonds (the "Bonds" f shall, therefore be issued In the total principal sum Section 8. Bond Registrar. The Bond Registrar shall keep or ca Ipal corporate trust office, sufficient books for the registration and transfer of the Bonds which shall © r d.i- nance ... No......2.940...... of •$340,942.94. The Bonds shall be dated August 1, 1993, shall be open to Inspection by the City at all times. The Bond Registrar mature on August 1, 2005, and shall be numbered from 1 to 68, is authorized, on behalf of the City, td authenticate and deliver inclusive, In the manner and with any additional designation as Bonds transferred or exchanged in accordance with the provi- the Bond Registrar (collectively, the fiscal agencies of the State of located in Seattle Washington, and New York, New sions of the Bonds and this ordinance, to serve as the City's for the Bonds and to carry out all of the Bond Regis - I'+ C x t,V 0f „_ EdmondS ................ Washington York) deems necessary for the purpose of Identification. Bond paying agent trar's powers and duties under this ordinance and City Ordinance No. 1 shall be in the denomination of $5,942.94 and Bonds Nos. 2 to 68 Inclusive, shall be in the denomination of $5,000.00. each. Inter- No. 2451 establishing a system of registration for the City's bonds and obligations... - est shall be computed on the basis of a 360 -day Year of twelve 30- The Bond Registrar shall be responsible. for Its representations day months. The Bonds shall bear Interest, payable on August 1, 1994, and annually thereafter on each succeeding August 1, in contained In the Bond Registrar's Certificate of Authentication on the Bonds. The Bond Registrar may become the owner of Bonds ................................ ............................... accordance with the following schedule: Interest Bond Numbers with the some rights it would have If It were not the Bond Regis- trot and, to the extent permitted by law, may act as depository a printed CO of which 1S herel p copy (Inclusive) Amounts - Rates $45,942.94 3.40% for and permit any of its officers or directors to act as members of, or In any other capacity with respect to, any committee newspaper proper and not in St I to 9 10 to 17 40,000.00 4.00 18 to 24 35,000.00 4.25 formed to protect the rights of Bond owners. Section 9. Bonds Negotiable. The Bonds shall be negotiable ed by RCW 62A.8.102 and 62A.8. entire edition of Said paper on tl 25 to 31 35,000.00 4.50 32 to 38 - 35,000.00 4.75 39 to 44 30,000.00 5.00 In 105. Section 10. Preservation of Tax Exemption for Interest on 45 to 50 30,000.00 5.15 51 to 56 30,000.00 5:30 Bon s. a covenan s w a e 07 ac ons necessary f3�r€ vent interest on the Bonds from being Included in gross take August 1 1993 57 to 62 30,000.00 5.40 30,000.00 • 5.50 income for federal Income tax purposes, and It will neither any action nor make or permit any use-of proceeds of The Bonds ..... ....................... ............................... 63 to 68 Section 2. Registration and Transfer of Bonds. The Bonds shall be cipal and Interest or other funds of the City treated as proceeds of the Bonds at any time during the term of the Bonds which wtli cause Interest on income tax and shall be recorded on books or records maintained by the Bond Registrar (the "Bond Register "). Such Bond Register shall Bond the Bonds to be included in gross income for federal purposes. The City also covenants that It will, to the extent rebate requirements of Section 148 of the Internal. ................................ ............................... contain the name and moiling address of the owner of each and the principal amount and number of each of the Bonds held by owner. arbitrage Revenue Code of 1986, as amended (the "Code "), ore applicable to the Bonds, take all actions necessary to comply (or To be d that said" new p a er W35 re an 1 each Bonds may be transferred only if endorsed in the manner to the Bond Registrar. The treated as having compiled) with Those requirements in connec- tion with the Bonds, Including the calculation and payment of any, spp "y ✓ provided thereon and surrendered transfer of a Bond shall be by the Bond Registrar's receiving the penalties that the City has elected to pay as an alternative to durind-911, Of said' period. . Bond to be transferred, cancelling It and Issuing a new certificate the Bonds to the transferee after registering The calculating rebotable arbitrage, and The payment of any other penalties If required under Section 148 of the Code to prevent ;` •.- '� ✓ "' `• In the. form of name and address of the transferee on the Bond Register. The shall bear the some Bond number as the trans- Interest on the Bonds from being Included In gross Income for federal Income tax purposes. The City certifies that It has not ! i i ; �,•�,_.� % %�L -�' /� '.. new certificate ferred Bond but may have a different inventory reference or Transfer shall be been notified of any listing or proposed listing by the Internal Revenue Service to the effect that it Is a bond Issuer whose , .......... ,........... :... ........:............1........ number or control number. Any exchange without cost to the owner or transferee. The Bond Registrar shall not be obligated to exchange or transfer any Bond during The 15 arbitrage certifications may not be relied upon. Section 11. Designation of Bonds as "Qualified_Tax-Exempt days preceding any principal payment or redemption date. Section 3. Payment of Bonds. Both principal of and Interest on Ob'lrgations.' "r I a �iTV nos ue— ...... — .,,off ce flees „�.., ,.., .,.,, i s r lint "private activity bonds" within the meaning of fh Iv Out of the Local Improvement No.-_213-(the- Fund'% and 'from..the Local Section 141 of the Code; (b);the reasonably anticipated amount of, tax- exempt obligations, (other than private activity bonds) which Subscribed and SW --- Fund'_ District •"Bond• Improvement Guaran Fund of the City- and shall be payable in States of Qmerlca. Interest on the the City and any entity subordinate To The City (Including any entity which the City controls which derives Its authority to Issue lawful money of the United bonds shall be paid by check or draft mailed to the registered date the addresses appearing tax- exempt obligations from the City or which issues tax- exempt obligations on behalf of the City) will Issue during the calendar da• o .Auc� jU owners on the Interest povment aT on the on Register on the 15th day of the month preceding the the Bonds shall be payable year in which the Bonds are Issued will not exceed $10 000,000; and (c) the amount of tax - exempt obligations, including the '-"'-"”' interest payment date. Principal of upon presentation and surrender of the bonds by The registered of the Bond Registrar at Bonds, designated by the City as "qualified tax- exempt obliga- tions" for the purposes of Section 265(b)(3) of the Code during the owners at either of the principal offices - the option of the owners. Section 4. Redemption Provisions. The City reserves the right calendar year in which the Bonds are Issued does not exceed $10,000000. The CITY designates the Bonds as "qualified tax- 265(b)(3) the -..- ° ° °.... °""'-" ' '-" "'- .. "' -' Notary Publi to ated maturity on any interest exempt obligations" for the purposes of Section of payment date in numerical order, lowest numbers first, at par interest to the date fixed for redemption, whenever Code. Section 12. Approval of Bond Purchase Contract.. Seattie- North- - residing at E plus accrued there shall be sufficient money in the Bond Fund to pay the Bonds Bonds over and above the w or o e has presented a purchase contract (the "Bond Purchase Contract') to the City so called and all earlier numbered amount required for the payment of the Interest on all unpaid from assessment payments offering to purchase the Bonds until the terms and conditions provided In the Bond Purchase Contract, which written Bond Bonds. Bonds may be called and paid only up to and Including August 1, 1998 and thereafter may be the City legally available therefor and purchase Contract is on file with the City Clerk and is Incorpo- rated herein by this reference. The City Council finds that enter - paid from other money of deposited in the Bond Fund. All Bonds redeemed under this section shall be cancelled.. Ing into the Bond Purchase Contract Is In the City's best interest and therefore accepts the offer contained therein and authorizes Section 5. Notice of Redemption. The city shall cause notice of to be given not less than 30 Its execution by City officials. The Bonds will be printed at City expense and will be delivered ' an nor more than 45 does prior to the date fixed for redemption by first -class mail, postage prepaid, to the registered owner of any to The purchaser In accordance with the Bond Purchase Contract, with the approving legal opinion of Foster Pepper & Shefelmon, bond of Seattle, Washington, regarding the Bond to be redeemed at the address appearing on the Bond the Bond Registrar the notice and municipal counsel Bonds printed on each Bond. Bond counsel shall not be required Register at the time prepares the requirements of this sentence shall be deemed to have been fulfilled when notice has been mailed as so provided whether or received b-y the.owner.of:any.Bond .Interest on to review and shall express no opinion concerning the complete -, ness or accuracy of any official statement, offering circular or other sales material issued or used in connection with The Bonds, .- not.:itds- actually -- Bonds called for redemption. shall cease to accrue,on the -date fixed for redemption unless the Bond or Bonds called are not and bond counsel's opinion shall so state. The Proper City officials :ore authorized and directed to do redeemed when presented pursuant to the call. In addition, the everything necessary for the prompt delivery of the Bonds to the including without limitation The execution of the redemption notice shall be mailed within the some period prepaid, to Seattle- Northwest Securities Corporation at purchaser, Official Statement on behalf of the City, and for the proper appti- postage tts principal office in Seattle, Washington a' Its successor, and to such other persons and with such additional Information as the cation and use of the proceeds of the sale Thereof. Section 13.'Temporary Bond. Pendingg the printing, execution City Finance Director shall determine, but these additional to the redemption of an v u s f definitive Bonds the City may cause to be executed and delivered to the purchaser a single mailings shall not be a condition precedent Bonds. Section 6. Failure to Redeem Bonds. If any Bond is not temporary Bond in the Total principal amount of the Bonds. The temporary Bond shall, bear the some date of issuance, Interest re r maturity or call date, to interest on that Bond at the rates principal povment dates and terms and covenants as The definitive Bonds, shall be Issued as o fully registered Bond in the the City shall be obligated pay same rate provided In the Bond from and after its maturity or Bond, both and Interest, is paid In full name of the purchaser, and otherwise shall be in -form accept - able to the purchaser. The temporary Bond shall be exchanged call date until that principal „CHI c tffirten+ monev for its oavment in full is on deposit in the for definitive Bonds. as soon as they are printed, executed and