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HomeMy WebLinkAboutOrdinance #1184 [~~ aQ0 IVI~-~ ~~ ~9~3t, ORD I NANCS NO . 118 4 °~ • E~~"~`w`~ AN ORDINANCE AUTSORI2ING T~ ISSU ~ u uCI~RK X80 000 GENERAL OBLIGATION BONDS, SERIES 198'TA$N TY~t'~~~CANTOp, FULTON COUNT7f, ILLINOIS i~1HEREAS, the City of Canton, Fulton County, Illinois (the "City"), operates its municipally-owned sewerage system (including collection and wastewater treatment facilities, the "System") in accordance with the provisions of the Illinois Municipal Code [Section 1-1-1 et s~g. of Chapter 24 of the Illinois Revised Statutes, and particularly Section 8-4-1(13) thereof, as supplemented and amended, including by the Registered Bond Act, the Local Government Credit Enhancement Act and the Municipal Bond Reform Act (the "Act")]; and FiBBRSAS, the City Council of the City (the "Corporate Authorities") has determined that it is advisable, necessary and in the best interests of the City's public health, safety and welfare to undertake a project providing for major improvements and extensions to the System, such improvements to include the acquisition, construction and installation of improvements and extensions to the City's existing sewerage collection system and treatment plant and facilities, together with all required structures, equipment, appurtenances and fixtures, all electrical, mechanical or other work and the acquisition of land or rights in land necessary, useful or advisable in connection with such work (the "Project"), all in accordance with the plans and specifications therefor prepared by Crawford, Murphy & Tilley, Inc., Springfield, Illinois, the engineering firm engaged for such purposes, which are now on file in the office of the City Clerk for public inspection; and "- ~RBAS, the Project is mandated by an compliance schedule developed in connection with the federal Clean Water Act (the "compliance schedule"), and the acquisition, construction ~ r 1 and installation of the Project is necessary to alleviate an emergency condition in the City in connection therewith; and f~REAS, the estimated cost of acquiring, constructing, and installing the Project, including necessary interest during such acquisition, construction and installation, engineering, legal, financial, bond discount, printing and publication costs, and other expenses preliminary to and in connection with the Project is anticipated not to be less than the sum of $600,000, which is presently anticipated and planned to be paid from the hereinafter described bonds; and i~1SEREAS, the City has insufficient funds to pay the costs of the Project and, therefore, must borrow money and issue bonds under this ordinance in evidence thereof up to the aggregate principal amount of up to $480,000 for such purposes; and f~RgAS, for convenience of reference only this ordinance is divided into numbered sections with headings, which shall not define or limit the provisions hereof, as follows: Page Preambles 1 Section 1. Authority and Purpose. 3 Section 2. Authorization and Terms of Bonds 3 Section 3. Bond Purchase Agreement. 6 Section 4. Execution and Authentication 7 Section 5. Transfer, Exchange and Registration. 7 Section 6. Bond Registrar and Paying Agent. 9 Section 7. General Obligations. 10 Section 8. Form of Bonds. 10 Section 9. Levy and Extension of Taxes. 16 Section 10. Debt Service Fund. 17 Section 11. Bond Proceeds Fund .~ 17 Section 12. Exception from Arbitrage Rebate. 18 Section 13. Investment Regulations 18 Section 14. Tax Covenants. 18 Section 15. Bank Qualified Bonds 19 -2- Section 16. Ordinance to Constitute a Contract . Section 17. Publication. . Section 18. Effective Date . . 20 20 20 NOFI, THEREFORE, BE IT ORDAINED BY THS CITY COUNCIL OF THE CITY OF CANTON, FULTON COUNTY, ILLINOIS, AS FOLLOf~IS: Section 1. Authority and Purpose. This ordinance is adopted pursuant to the Constitution and laws of the State of Illinois, including the Illinois Municipal Code (Section 1-1-1 et seq. of Chapter 24 of the Illinois Revised Statutes), as supplemented and amended, including by the Registered Bond Act, the Local Government Credit Enhancement Act and the Municipal Bond Reform Act, for the purpose of financing the acquisition, construction and installation of the Project, to be done or undertaken by the City of Canton, Illinois. The acquisition, construction and installation of the Project is necessary to alleviate an emergency condition in the City related to the City's sewerage system, including the prevention of imminent discharge of raw sewage into the creek system draining the City and surrounding areas. Section 2. Authorization and Terms of Bonds.• To meet part of the estimated cost of the Project, there is hereby appropriated the sum of up to $480,000, to be derived from the proceeds of the bonds herein described. For the purpose of financing such appropriation, general obligation bonds of the City shall be issued and sold in an aggregate principal amount of not to exceed $480,000, shall each be designated "General Obligation Bond, Series 1988", and shall be issuable in the denominations of $5,000 or any authorized integral multiple thereof. The bonds shall be numbered consecutively from 1 upwards in order of their issuance and may bear such identifying numbers or letters as shall be useful to facilitate the registration, transfer and exchange of bonds. Unless otherwise -3- determined in an order to authenticate the bonds, each bond shall be dated as of the interest payment date next preceding the date of issuance thereof, except that (a) if such date of issuance shall be prior to the first interest payment date, each bond shall be dated as of or after February 1, 1988, and as of or before the date of issuance sale and delivery thereof, as the purchaser or purchasers thereof agree or accept, (b) if such date of issuance shall be an interest payment date, each bond shall be dated as of such interest payment date, or (c) if interest due on any bond shall not have been paid in full, then notwithstanding any of the foregoing provisions, such bond shall be dated as of the last date to which interest has been paid in full on such bond. The bonds shall bear interest at the rates and shall mature on December 1 of the years and in the respective principal amounts as follows: Principal Year Hmount 1989 $60,000 1990 60,000 1991 60,000 1992 60,000 1993 60,000 1994 60,000 1995 60,000 1996 60,000 Interest Rate 7.40X 7.50 7.70X 7.90x B.OOX 8. 15~; 8.25% 8.40 -4- Each bond shall bear interest from its date, computed on the basis of a 360-day year consisting of twelve 30-day months, and payable in lawful money of the United States of America on December 1, 1988, and semiannually thereafter on each June 1 and December 1 at the rates per annum herein set forth. The principal of and premium, if any, on the bonds shall be payable in lawful money of the United States of America upon presentation and surrender thereof at the principal office of The National Bank of Canton, in the City of Canton, Illinois, which is hereby appointed paying agent for the bonds. Interest on the bonds shall be payable on each interest payment date to the registered owners of record appearing on the registration books maintained by The National Bank of Canton, in the City of Canton, Illinois, the bond registrar on behalf of the City for such purpose, at the principal office of the bond registrar as of the close of business on the fifteenth (15th) day of the calendar month next preceding the applicable interest payment date. Interest on the bonds shall be paid by check or draft mailed to such registered owners at their addresses appearing on the registration books. The bonds shall be subject to redemption prior to maturity at the option of the City, with the notice as herein provided, in inverse order of on any interest payment date at a redemption price equal to the principal amount to be so redeemed, plus accrued interest. In the event of the redemption of less than all the bonds of like maturity, the aggregate principal amount thereof to be redeemed shall be $5,000 or an integral multiple thereof, and the bond registrar shall assign to each bond of such maturity a distinctive number for each $5,000 principal amount of such bond and shall select by lot from the numbers so assigned as many numbers as, at $5,000 for each number, shall equal the principal amount of such bonds to be redeemed. The bonds to be redeemed shall be the bonds to which were assigned numbers so selected; provided that only so much of the principal amount of each bond shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. -5- Notice of the redemption of bonds shall be mailed not less than 30 days nor more than 60 days prior to the date fixed for such redemption to the registered owners of bonds to be re- deemed at their last addressee appearing on the registration books thereof. The bonds or portions thereof specified in such notice shall become due and payable at the applicable redemption price on the redemption date therein designated, and if, on the redemption date, moneys for payment of the redemption price of all the bonds or portions thereof to be redeemed, together with interest to the redemption date, shall be available for such payment on such redemption date, and if notice of redemption shall have been mailed as set forth above (and notwithstanding any defect therein or the lack of actual receipt thereof by any registered owner) then from and after the redemption date interest on such bonds or portions thereof 8ha11 cease to accrue and become payable. If there shall be drawn for redemption less than all of a bond, the City shall execute and the bond registrar shall authenticate and deliver, upon the surrender of such bond, without charge to the owner thereof, for the unredeemed balance of the bond so surrendered, bonds of like maturity and of the denomination of $5,000 or any authorized integral multiple thereof. The bond registrar shall not be required to transfer or exchange any bond after notice of the redemption of all or a portion thereof has been mailed. The bond registrar shall not be required to transfer or exchange any bond during the period from the fifteenth (15th) day of the month preceding any interest payment date to such interest payment date or during a period of fifteen (15) days next preceding the mailing of a notice of redemption which could designate for redemption all or a portion of such bond. Section 3. Bond Purchase Agreement. The Mayor and City Clerk be and they are authorized to execute and deliver a bond purchase agreement with the purchasers of the bonds (The National Bank of Canton, Canton State Bank and Community Bank and Trust Company) in appropriate form with terms not inconsistent -6- with this ordinance for and on behalf of the City and, together with other appropriate officials of the City, are hereby authorized and directed to do and perform, or cause to be done or performed for or on behalf of the City, each and every thing necessary for the issuance of the bonds, including the proper execution, delivery and performance of such bond purchase agreement and an appropriate certificate in connection with the City's tax covenants made and contained in Section 14 hereof. Section 4. Baecution and Authentication. Each bond shall be executed in the name of the City by the manual or authorized facsimile signature of its Mayor and the corporate seal of the City, or a facsimile thereof, shall be thereunto impressed, affixed or otherwise reproduced thereon and attested by the manual or authorized facsimile signature of its City Clerk. In case any officer whose signature, or a facsimile of whose signature, shall appear on any bond shall cease to hold such office before the issuance of such bond, such bond shall nevertheless be valid and sufficient for all purposes, the same as if the person whose signature, or a facsimile thereof, appears on such bond had not ceased to hold such office. Any bond may be signed, sealed or attested on behalf of the City by any person who, on the date of such act, shall hold the proper office, notwithstanding that at the date of such bond such person may not hold such office. No recourse shall be had for the payment of any bonds against any member of the City Council or any officer or employee of the City (past, present or future) who executes the bonds, or on any other basis. Each bond shall bear thereon a certificate of authentication executed manually by the bond registrar. No bond shall be entitled to any right or benefit under this ordinance or shall be valid or obligatory of any purpose until such certificate of authentication shall have been duly executed by the bond registrar. Bonds may be issued in typewritten or other temporary form in lieu of or preliminary to the availability of bonds in definitive form, as the purchaser or purchasers of the bonds agree or accept. -7- Section 5. Transfer, T~change and Registration. The bonds shall be negotiable, subject to the provisions for registration of transfer contained herein. Each bond shall be transferable only upon the registration books maintained by the bond registrar on behalf of the City for that purpose at the principal corporate trust office of the bond registrar, by the registered owner thereof in person or by such registered owner's attorney duly authorized in writing, upon surrender thereof together with a written instrument of transfer satisfactory to the bond registrar and duly executed by the registered owner or such registered owner's duly authorized attorney. Upon the surrender for transfer of any such bond, the City shall execute and the bond registrar shall authenticate and deliver a new bond or bonds registered in the name of the transferee, of the same aggregate principal amount, maturity and interest rate as the surrendered bond. Bonds, upon surrender thereof at the principal corporate trust office of the bond registrar, with a written instrument satisfactory to the bond registrar, duly executed by the registered owner or such registered owner"s attorney duly authorized in writing, may be exchanged for an equal aggregate principal amount of bond8 of the same maturity and interest rate and of the denominations of $5,000 or any authorized integral multiple thereof. For every such exchange or registration of transfer of bonds, the City or the bond registrar may make a charge sufficient to reimburse it for any tax, fee or other governmental charge required to be paid with respect to such exchange or transfer, which sum or sums shall be paid by the person requesting such exchange or transfer as a condition precedent to the exercise of the privilege of making such exchange or transfer. No other charge shall be made for the privilege of making such transfer or exchange. The provisions of the Illinois Bond Replacement Act shall govern the replacement of lost, destroyed or defaced bonds. The City and the bond registrar may deem and treat the person in whose name any bond shall be registered upon the -8- registration books as the absolute owner of such bond, whether such bond shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of, premium, if any, or interest thereon and for all other purposes whatsoever, and all such payments so made to any such registered owner or upon such registered owner's order shall be valid and effectual to satisfy and discharge the liability upon such bond to the extent of the sum or sums so paid, and neither the City nor the bond registrar shall be affected by any notice to the contrary. Section 6. Bond Registrar and Pavinv Agent. The City covenants that it shall at all times retain a bond registrar and paying agent with respect to the bonds and shall cause to be maintained at the office of such registrar a place where bonds may be presented for registration of transfer or exchange, that it will maintain at the designated office of the paying agent a place where bonds may be presented for payment, that it shall require that the bond registrar maintain proper registration books and that it shall require the bond registrar and paying agent to perform the other duties and obligations imposed upon them by this ordinance in a manner consistent with the standards, customs and practices of the municipal securities business. The City may enter into appropriate agreement8 with the registrar and paying agent in connection with the foregoing. The bond registrar and paying agent shall signify their acceptances of the duties and obligations imposed upon them by this ordinance. The bond registrar by executing the certificate of authentication on any bond shall be deemed to have certified to the City that it has all requisite power to accept, and has accepted, such duties and obligations not only with respect to the bond so authenticated but with respect to all the bonds. The bond registrar and paying agent are the agents of the City for such purposes and shall not be liable iri connection with the performance of their respective duties except for their own negligence or default. The bond registrar shall, however, be responsible for any representation in its certificate of authentication on the bonds. -9- The City may remove the bond registrar or paying agent at any time. In case at any time the bond registrar or paying agent shall resign or shall be removed or shall become incapable of acting, or shall be adjudged a bankrupt or insolvent, or if a receiver, liquidator or conservator of the bond registrar, or of its property, shall be appointed, or if any public officer shall take charge or control of the bond registrar or paying agent or of their respective properties or affairs, the City covenants and agrees that it will thereupon appoint a successor bond registrar or paying agent, as the case may be. The City shall mail or cause to be mailed notice of any such appointment made by it to each registered owner of bonds within twenty days after such appointment. Any bond registrar or paying agent appointed under the provisions of this Section shall be a bank, trust company, national banking association or other qualified professional with respect to such matters, maintaining its principal office in the State of Illinois. Section 7. General Obligations. The full faith and credit of the City are hereby irrevocably pledged to the punctual payment of the principal of and interest on the bonds. The bonds shall be direct and general obligations of the City, and the City shall be obligated to levy ad valorem taxes upon all the taxable property in the City for the payment of the bonds and the interest thereon, without limitation as to rate or amount. Section 8. Form of Bonds. The bonds shall be issued as fully registered bonds and shall be in substantially the following form, the blanks to be appropriately completed [CUSIPs being optional) when the bonds are printed or prepared in temporary form in lieu of or preliminary to, as the case may be, the preparation of bonds in definitive form: -10- UNITED STATES OF AFRICA STATL OF ILLINOIS COUNTY OF FULTON CITY OF CANTON GENERAL OBLIGATION BOND SERIES 1988 REGISTERED NO. REGISTERED $ INTgRSST RATE: MATURITY DATFS: DATED DATE: CUSIP: Registered Owner: Principal Amount: The City of Canton, a municipal corporation and non-home rule unit of local government situated in the County of Fulton, in the State of Illinois, acknowledges itself indebted and for value received hereby promises to pay to the Registered Owner identified above, or registered assigns, the Principal Amount set forth above on the Maturity Date specified above, and to pay interest on such Principal Amount from the Dated Date hereof at the Interest Rate per annum specified above, computed on the basis of a 360-day year consisting of twelve 30-day months and payable in lawful money of the United States of America on December 1, 1988, and semiannually thereafter on the first days of June and December in each year until the Principal Amount set forth above shall have been paid, by check or draft mailed to the Registered Owner of record hereof as of the fifteenth (15th) day of the calendar month next preceding such interest payment date, at the address of such Registered Owner appearing on the registration books maintained for such purpose at the principal office of The National Bank of Canton, in the City of Canton, Illinois, as bond registrar or its successor (the "Bond Registrar"). This bond, as to principal and premium, if any, when due, will be payable in lawful money of the United States of America upon presentation and surrender 'of this bond at the principal office of The National Bank of Canton, in the City of Canton, Illinois as paying agent or its successor (the "Paying Agent"). The full faith and credit of the City are irrevocably pledged for the punctual payment of the principal of and interest -11- on this bond according to its terms. The City has provided for a levy of general taxes, together with other available moneys, to timely pay the principal of and interest on this bond as it matures or comes due. This bond is one of a series of bonds issued in the aggregate principal amount of not to exceed $480,000, which are all of like tenor except as to date, maturity, option of redemption and rate of interest and which are authorized and issued under and pursuant to the Constitution and laws of the State of Illinois, including the Illinois Municipal Code (Section 1-1-1 et sea. of Chapter 24 of the Illinois Revised Statutes, and particularly Section 8-4-1(13) thereof), as supplemented and amended, including by the Registered Bond Act, the Local Government Credit Enhancement Act and the Municipal Bond Reform Act, and pursuant to and in accordance with Ordinance No. , adopted by the City Council of the City on February 2, 1988, and entitled: "An Ordinance Authorizing the Issuance of $480,000 General Obligation Bonds, Series 1988, of the City of Canton, Fulton County, Illinois." The bonds of such series are subject to redemption prior to maturity at the option of the City, with the notice as herein provided, in inverse order of maturity and by lot within a single maturity on any interest payment date at a redemption price equal to the principal amount to be so redeemed, plus accrued interest. Notice of the redemption of bonds will be mailed not less than 30 days nor more than 60 days prior to the date fixed for such redemption to the registered owners of bonds to be redeemed at their last addresses appearing on such registration books. The bonds or portions thereof specified in such notice shall become due and payable at the applicable redemption price on the redemption date therein designated, and if, on the redemption date, moneys for payment of the redemption price of all the bonds or portions thereof to be redeemed, together with interest to the redemption date, shall be available -12- for such payment on such redemption date, and if notice of redemption shall have been mailed as herein set forth (and notwithstanding any defect therein or the lack of actual receipt thereof by any registered owner) then from and after the redemption date interest on such bond8 or portions thereof shall cease to accrue and become payable. This bond is transferable only upon such registration books by the Registered Owner hereof in person, or by such Registered Owner's attorney duly authorized in writing, upon surrender hereof at the principal corporate trust office of the Bond Registrar together with a written instrument of transfer satisfactory to the Bond Registrar duly executed by the Registered Owner or by such Registered Owner's duly authorized attorney, and thereupon a new registered bond or bonds, in the authorized denominations of $5,000 or any authorized integral multiple thereof and of the same aggregate principal amount, maturity and interest rate as this bond shall be issued to the transferee in exchange therefor. In like manner, this bond may be exchanged for an equal aggregate principal amount of bonds of the same maturity and interest rate and of any of such authorized denominations. The Bond Registrar shall not be required to exchange or transfer any bond during the period from the fifteenth (15th) day of the month preceding any interest payment date to such interest payment date or during a period of fifteen (15) days next preceding the mailing of a notice of redemption which could designate all or a part of a bond for redemption. The City or the Bond Registrar may make a charge sufficient to reimburse it for any tax, fee or other governmental charge required to be paid with respect to the transfer or exchange of this bond. No other charge shall be made for the privilege of making such transfer or exchange. The City and the Bond Registrar may treat and consider the person in whose name this bond is registered as the absolute owner hereof for the purpose of receiving payment of, or on account of, the principal, premium, if any, and interest due hereon and for all other purposes whatsoever, and all such payments so made to such -13- Registered Owner or upon such Registered Owner's order shall be valid and effectual to satisfy and discharge the liability upon this bond to the extent of the sum or some so paid, and neither the City nor the Bond Registrar shall be affected by any notice to the contrary. No recourse shall be had for the payment of any bonds against any member of the City Council or any officer or employee of the City (past, present or future) who executes any bonds, or on any other basis. The City may remove the Bond Registrar or Paying Agent at any time and for any reason and appoint a successor. This bond shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been duly executed by the Bond Registrar. It is hereby certified, recited and declared that all acts, conditions and things required to be done, exist and be performed precedent to and in the issuance of this bond in order to make it a legal, valid and binding general obligation of the City have been done, exist and have been performed in regular and due time, form and manner as required by law, and that the aeries of bonds of which this bond is one, together with all other indebtedness of the City is within every debt or other limit prescribed by law. IN i~IITNSSS i~i~RBOF, the City of Canton, Fulton County, Illinois, has caused this bond to be executed in its name and on its behalf by the manual or facsimile signature of its Mayor, and its corporate seal, or a facsimile thereof, to be hereunto impressed, affixed or otherwise reproduced hereon and attested by the manual or facsimile signature of its City Clerk, all as of the Dated Date set forth above. -14- CITY OF CANTON, ILLINOIS (SEAL) Mayor Attest: City Clerk Dated: CBRTIFICATB OF AU'l~rICATION This bond is one of the General Obligation Bonds, Series 1988, described in the within mentioned Ordinance. The National Bank of Canton, Canton, Illinois, as Bond Registrar By Authorized Officer Bond Registrar: The National Bank of Canton, Canton, Illinois Paying Agent: The National Bank of Canton, Canton, Illinois (Legend for ownership abbreviations to be placed here.] ASSIGrII~NT For value received the undersigned sells, assigns and transfers unto [Name, Address and Social Security Number'-or FEIN of Assignee) the within bond and hereby irrevocably constitutes and appoints attorney to transfer the said bond on the books kept for registration thereof, with full power of substitution in the premises. -15- Dated Signature Guarantee: Notice: The signature of this assignment must correspond with the name of the registered owner as i t appears upon the face of the within bond in every particular, without alteration or enlargement or any change whatever. Section 9. Lev and Rxtension of Taxes. For the purpose of providing the money required to pay the interest on the bonds when and as the same falls due and to pay and discharge the principal thereof as the same shall mature, there shall be levied upon all the taxable property in the City, in each year while any of the bonds shall be outstanding, a direct annual tax in each of the years 1988 to 1995, inclusive, sufficient for that purpose, in addition to all other taxes, such direct annual tax to be in the amounts in each of such years, as follows: For the Year A Tax Sufficient to Produce the Sum of 1988 $114,750 for interest up to and including June, 1990. 1989 91,290 for interest and principal 1990 86,730 for interest and principal 1991 82,050 for interest and principal 1992 77,280 for interest and principal 1993 72,435 for interest and principal 1994 67,470 for interest and principal 1995 62,475 for interest and principal -16- Interest or principal coming due at any time when there shall be insufficient funds on hand to pay the same shall be paid promptly when due from current funds on hand in advance of the collection of the taxes herein levied; and when such taxes shall have been collected, reimbursement shall be made to such fund or funds from which such advance was made in the amounts thus advanced. As soon as this ordinance becomes effective, a copy hereof certified by the City Clerk, which certificate shall recite that this ordinance has been duly adopted, shall be filed with the County Clerk of Fulton County, Illinois, who is hereby directed to ascertain the rate per cent required to produce the aggregate tax hereinabove provided to be levied in the years 1988 to 1995, inclusive, and to extend the same for collection on the tax books in connection with other taxes levied in each of such years. in and by the City for general corporate purposes of the City, and in each of such years such annual tax shall be levied and collected in like manner as taxes for general corporate purposes for each of such years are levied and collected and, when collected, such taxes shall be used solely for the purpose of paying the principal of and interest on the bonds herein authorized as the same become due and payable. Section 10. Debt Service Emend. Moneys derived from taxes herein levied, together with other available funds therefor, are appropriated and set aside for the sole purpose of paying principal of and interest on the bonds when and as the same come due. All of such moneys, and all other moneys to be used for the payment of the principal of and interest on the bonds, shall be deposited in the "Debt Service Fund of 1988" which is hereby established as a special fund of the City and shall be administered as a bona fide debt service fund under the Internal Revenue Code of 1986. All accrued interest received upon the issuance of the bonds, together with other available funds therefor, shall be deposited in the Debt Service Fund of 1988. Section 11. Bond Proceeds Fund. All of the proceeds of sale of the bonds (exclusive of accrued interest) shall be -17- deposited in the "Bond Proceeds Fund of 1988" which is hereby established as a special fund of the City. Moneys in the Bond Proceeds Fund of 1988 shall be used for the purposes specified in Section 1 of this ordinance and for the payment of costs of issuance of the bonds, but may hereafter be reappropriated and used for other lawful purposes. Before any such reappropriation shall be made, there shall be filed with the City Clerk an opinion of Evans & Froehlich, Champaign, Illinois, or other nationally recognized bond counsel to the effect that such reappropriation will not adversely affect the tax-exempt status of the bonds under Section 103 of the Internal Revenue Code of 1986. Section 12. Exception frog Arbitrage Rebate. The City does not reasonably expect to issue more than $5,000,000 of tax-exempt obligations in the calendar year 1988 within the meaning of the small issuer exception under Section 148(f)(4)(C) of the Internal Revenue Code of 1986. Section 13. Investment Regulations. No investment shall be made of any moneys in the Debt Service Fund of 1988 or the Bond Proceeds Fund of 1988 except in accordance with the tax covenants set forth in Section 14 of this ordinance. All income derived from such investments in respect of moneys or securities in any Fund shall be credited in each case to the Fund in which such moneys or securities are held. Any moneys in any Fund that are subject to investment yield restrictions may be invested in United States Treasury Securities, State and Local Government Series, pursuant to the requlation8 of the United States Treasury Department, Bureau of Public Debt. The City's Treasurer and agents designated by such officer are hereby authorized to submit, on behalf of the City, subscriptions for such United States Treasury Securities and to request redemption of such United States Treasury Securities. Section 14. Tax Covenants. The City shall not take, or omit to take, any action lawful and within its power to take, which action or omission would cause interest on any bond to become subject to federal income taxes in addition to federal -18- income taxes to which interest on such bond is subject on the date of original issuance thereof. The City shall not permit any of the proceeds of the bonds, or any facilities financed with such proceeds, to be used in any manner that would cause any bond to constitute a "private activity bond" within the meaning of Section 141 of the Internal Revenue Code of 1986. The City shall not permit any of the proceeds of the bonds or other moneys to be invested in any manner that would cause any bond to constitute an "arbitrage bond" within the meaning of Section 148 of the Internal Revenue Code of 1986. The City shall comply with the provisions of Section 148(f) of the Internal Revenue Code of 1986 relating to the rebate of certain investment earnings at periodic intervals to the United States of America to the extent that there shall have been filed with the City Clerk an opinion of Evans & Froehlich, Champaign, Illinois, or other nationally recognized bond counsel to the effect that such compliance is necessary to preserve the exclusion from gross income for federal income tax purposes of interest on the bonds under Section 103 of the Internal Revenue Code of 1986. Section 15. Bank Qualified Bonds. Pursuant to Section 265(b)(3) of the Internal Revenue Code of 1986, the City hereby designates the bonds as "qualified tax-exempt obligations" as defined in Section 265(b)(3) of the Internal Revenue Code of 1986. The City represents that the reasonably anticipated amount of tax-exempt obligations that will be issued by the City and all subordinate entities of the City during the calendar year 1988, in which the bonds are to be issued, will not exceed $10,000,000 within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986. The City covenants that it will not designate and issue more than $10,000,000 aggregate 'principal amount of tax-exempt obligations in such calendar year. For purposes of this Section 15, the term "tax-exempt obligations" includes "qualified 501(c)(3) bonds" (as defined in the Section 145 of the Internal Revenue Code of 1986) but does not include other -19- "private activity bonds" (as defined in Section 141 of the Internal Revenue Code of 1986). Section 16. Ordinance to Constitute a Contract. The provisions of this ordinance shall constitute a contract between the City and the registered owners of the bonds. Any pledge made in this ordinance and the provisions, covenants and agreements herein set forth to be performed by or on behalf of the City shall be for the equal benefit, protection and security of the registered owners of any and all of the bonds. All of the bonds, regardless of the time or times of their issuance, shall be of equal rank without preference, priority or distinction of any of the bonds over any other thereof except as expressly provided in or pursuant to this ordinance. This ordinance shall constitute full authority for the issuance of the bonds. If any section, paragraph or provision of this ordinance shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any of the remaining provisions of this ordinance. Section 17. Publication. The City Clerk is hereby authorized and directed to publish this ordinance in pamphlet form under Section 1-2-4 of the Illinois Municipal Code and to prepare file copies thereof for public inspection in the office of the City Clerk. Section 18. Bffectiye Date. This ordinance shall become effective upon its passage, approval and publication in the manner and with the effect provided by law. Adopted this 2nd day of February, 1988, by roll call vote as follows: Ayes: Aldermen Kovachevich, Zilly, Steck, Sarff, r~teade, Bohler, May. None. A~~ent: Alderman Chapman. (SEAL) '• Attest: Approved: this 2nd day of February, 1988 i C ty C1 rk Mayor -20- PAI~HLET PUBLICATION ORDINANCE NO. 1184 AN ORDINANCE AUTHORIZING TBB ISSUANCE OF UP TO $480,000 GENERAL OBLIGATION BONDS, SERIES 1988, OF THS CITY OF CANTON, FULTON COUNTY, ILLINOIS PRESENTED: January 19, 1988 PASSED: February 2, 1988 APPROVED: February 2, 1988 RECORDED: February 16, 7988 PUBLISHED• February 2, 1988 Voting "Aye" : Kovachevich Z~ 7 7 y, StP~k , ~a r,~ Z~ea ~TR~I~e= ~ May , Voting "Nay": None. Other (Absent, Abstain, etc.) : Absent : A7 c~Prman ~.,h.a.pman. The undersigned being the duly qualified and acting City Clerk of the City of Canton, Illinois, does hereby certify that this document constitutes the publication in pamphlet form, in connection with and pursuant to Section 1-2-4 of the Illinois Municipal Code, of the above-captioned ordinance and that such ordinance was presented, passed, approved, recorded and published as above stated. Ci y Clerk (SEAL) Dated: February 12, 7AAR CERTIFICATE STATE CF II~.IrAIS , ) SS. OOUrTIY aF F[JLTCN . ) I, Nancy Whites, City Cleric of the City of Canton, in the County. of ~.ilton and State of Illinois, do hereby certify that as the City Clerk of the City of Canton, I am the keeper of records, minutes, ordinaries and other books, records and papers of said City, and that the foregoing is a true and correct Dory of : . ORDINANCE NO. 1184 AN ORDIY1i4NCE AUTHORIZING THE ISSUANCE OF UP TO $480,000 GENERAL OBLIGATION BONDS, SERIES 1988, THE CITY OF CANTON, FULTON COUNTY, ILLINOIS, adopted by the City Council of said City and approved by the Mayor thereof on the ?ud day of ~,~~~,~„„ _ _ 19 88 WT1I~,SS iay hand and the Corporate Seal of the City of Canton, Illinois ~g 6th ~y of March , 19 88 y (SEAL)