1728_00001CITY OF MOSES LAKE,WASHINGTON
$1,883,189.58LOCALIMPROVEMENTDISTRICT NO.58 BONDS
ORDINANCE NO.1728
TABLE OF CONTENTS1
Section Title
PageRecitals..................11.Authorization of the Bonds .............12.Redemption of Bonds Prior to Maturity .......23.Local Improvement District No.58 Fund .......24.Täx Code Covenant ..................2
5.Findings and Designation of Bank Eligibility ....36.Form of the Bonds .................37.Execution and Authentication of Bonds .......68.Lost or stolen Bonds ................79.Bond Registrar ..................710.Application and Use of Bond Proceeds ........711.Sale of the Bonds /Investment in Bonds ......712.Authorization to City officials ..........713.Undertaking to Provide ongoing Disclosure .....8A.Definitions ..................81.Commission ................82.MSRB ..................83.NRMSIR ..................84.Rule ..................85.SID ..................8B.Contract/Undertaking .............8C.Operating Data .................8D.Material Events ................8E.Notification Upon Failure to ProvideFinancialData..............9F.Termination/Modification
...........9G.Bond Owner's Remedies Under This Section ...1014.Defeasance ..................1015.Supplemental Ordinances ..............11
O
17his Table of contentsis provided for reference only and does not constitute a part of the ordinanceforwhichitisprovided.
L10 NO.58 BONDANDNOTEORDINANCE-TABLEOF CONTENTs -Page i
Section Title p
16.LID 58 Installments and Interest Rate .......12
A.Number of-Installments ............12B.Interest Rate .................12
17.EffectiveDate •••••••·•·•••••••.12
Signatures ·••••••••••••••••.12
0
O
LIO NO.58 BONDANDNOTEORDINANCE-TABLEOF CONTENTS-PRCJO ii
ORDINANCE NO.1728
AN ORDINANCE of the City of Moses Lake authorizing the issuance andsaleofLocalImprovementDistrictNo.58 bonds .in the aggregateprincipalamountof$1,883,189.58;creating a Local ImprovementDistrictNo.58 Fund;specifying the terms,date,interest rate,maturity and form of such bonds;approving the sale of the bonds toMartinNelson&Co.,Inc.;undertaking to make certain ongoingdisclosuresasrequiredbytheSecuritiesandExchangeCommission;O providing for defeasance of the bonds;establishing the number ofassessmentinstallmentsandinterestratetherefor;andsupplementingsection3ofOrdinanceNo.1704.
WHEREAS,by ordinance No.1692 of the City of Moses Lake,Washington,(the "City"),adopted October 10,1995,Local Improvement District No.58("LID 58")was duly created;and
WHEREAS,a suitable bid for construction of the improvements in LID 58orderedbyOrdinanceNo.1692 has been received and a contract therefor hasbeenawarded:and
WHEREAS,the assessment roll in said LID 58 has been confirmed byOrdinanceNo.1704 adopted December 19,1995,in the total amount of$1,922,177.07,of which $38,987.49 was paid during the thirty (30)day periodpermittedbylawforthepaymentofassessmentswithoutpenaltyorinterest;and
WHEREAS,after applying the amount of prepaid assessments to the paymentofthecostandexpenseoftheimprovementsandtothepaymentofallexpensesincidentaltheretoinsaidLID58,it is now necessary for the CitytoissueitsLID58bondsintheprincipalamountof$1,883,189.58 in ordertopayforthecostandexpenseofsaidimprovements;NOW THEREFORE,
O THE CITY COUNCIL OF CITY OF MOSES LAKE,WASHINGTON,DO ORDAIN asollows:
Section 1.Authorization of the Bonds.For the purpose-of paying partofthecostandexpenseofconstructionandinstallationofCitystreetimprovementstoportionsofCentral,Grape and Evelyn Drives,includingpavingcurbs,gutters,storm drainage,sidewalks,landscaping,streetlightingandsignalization,as more particularly described in OrdinanceNo.1692 creating LID 58,the city shall issue and sell its City of MosesLakeLocalImprovementDistrictNo.58 Bonds in the principal amount of$1,883,189.58 (the "Bonds").The Bonds shall be dated July 1,1996,shall benumberedfrom1through377,inclusive,shall be in denominations of $5,000each,except for Bond No.I which will be in the denomination of $3,189.58,shall be in fully registered form,and shall mature on July 1,2013.TheBondsshallbearinterestfromthedatethereofpayableJuly1,1997,andannuallyoneachJuly1thereafteruntilpaid,at the following rates:
Bond Nos.Principal Amounts Interest Rates
1 -26 $128,189.58 .4.70%27 -52 130,000.00 5.10%53 -77 125,000.00 5.30%78 -102 125,000.00 5.45%103 -127 125,000.00 .5.55%128 -152 125,000.00 5.75%153 -177 125,ûûû.û0 5.90%O 178 -202 125,000.00 6.00%203 -227 125,000.00 6.10%228 -252 125,000.00 6.20%253 -277 125,000.00 6.30%278 -302 125,000.00 6.40%303 -327 125,000.00 6.45%328 -352 125,000.00 6.45%353 -377 125,000.00 6.45%
UD No.58 Bond and Note Ordinan¢e -PagO 1
Both principal of and interest on the Bonds shall be payable in lawfulmoneyoftheUnitedStatesofAmerica.Interest on the Bonds shall be paidbycheckordraftmailedtotheregisteredownersortheirnomineesattheaddressesappearingonthebondregisterasofthe15thdayofthemonthprecedingtheinterestpaymentdate.Principal of the Bonds shall be payableuponpresentationandsurrenderoftheBondsbytheregisteredownersortheirnomineesattheprincipalofficesofeitherofthefiscalagenciesoftheStateofWashingtoninthecitiesofSeattle,Washington or New York,NewYork,at the option of such owners or nominees.
The fiscal agencies of the State of Washington in the cities of Seattle,O Washington and New York,New York shall act as registrar for the Bonds(collectively,the "Bond Registrar").Upon surrender thereof to the BondRegistrar,the Bonds are interchangeable for other Bonds of the same number,same principal amount,same interest rate and same maturity.Bonds may betransferredonlyifendorsedinthemannerprovidedthereonandsurrenderedtotheBondRegistrar.Such exchange or transfer shall be without cost totheownerortransferee.The Bond Registrar shall not be required toexchangeortransferanyBondduringthe20-day period preceding any interestpaymentdateorafteranynoticeofredemptionofsuchbondhasbeenmailed.The City may deem the person in whose name each Bond is registered to betheabsoluteownerthereofforthepurposeofreceivingpaymentoftheprincipalofandinterestonsuchbondandforanyandallotherpurposeswhatsoever.
Section 2.Redemption of Bonds Prior to Maturitv.The City hasreservedtherighttoredeemtheBondspriortomaturityonanyinterestpaymentdateinnumericalorderatapriceofpar,plus accrued interest tothedateofredemption.
Interest on any Bonds called for redemption shall cease on theredemptiondateunlessandtotheextentthesameshallnotberedeemeduponpresentationmadepursuanttosuchcall.
Notice of any such intended redemption shall be given not less thanOtwenty(20)nor more than forty-five (45)days prior to the date fixed forredemptionbyfirstclassmail,postage prepaid,to the registered owner ofanyBondtoberedeemedattheaddressappearingonthebondregister.Therequirementsofthissection2shallbedeemedtobecompliedwithwhennoticeismailedashereinprovided,regardless of whether or not it isactuallyreceivedbytheownerofanybond.Notice shall also be mailed totheinitialpurchaseroftheBondsatitsmainoffice,or to its successor inbusiness,if any,at its main office,but such mailing shall not be aconditionprecedenttothecallofanybondsforredemption.In addition,the Bond Registrar shall provide notice of redemption at least 30 days priortothedatefixedforredemptiontotheMSRBortoeachNRMSIRandSID,ifany(as defined in Section 13 of this ordinance).
Section 3.Local Improvement District No.58 Fund.There is herebycreateda"City of Moses Lake Local Improvement District No.58 Fund"(the"LID Fund")in the office of the Treasurer and said fund shall be drawn onforthesolepurposesofdepositingassessmentsinLID58hereaftercollectedbytheCityandofpayingtheprincipalandinterestontheBonds.The cityhasleviedassessmentsinthetotalamountof$1,922,177.07,of which$38,987.49 was received by the city prior to passage of this ordinance andappliedtopaycostsoftheimprovementsinLID58.The amount of not lessthan$1,883,189.58 remains payable into said Fund from the assessments leviedinLID58infifteen(15)equal annual installments commencing March 19,1997,together with interest and penalties thereon in accordance withOrdinanceNo.1704 of the City.Both principal of and interest on the BondsrepayablesolelyoutoftheLIDFundandtheCityofMosesLakeLocalmprovementGuarantyFundheretoforecreatedbyOrdinanceNo.406 of the Citythe"Guaranty Fund").
section 4.Tax code Covenant.The city covenants that it will applytheprincipalproceedsoftheBondstothepaymentofthecostsoftheimprovementsdescribedinordinanceNo.1692 and to repay the interfund loansmadeand/or registered warrants issued to pay such costs and that it will
1.10No.58 Bond and Note Ordinance -Page 2
make no use of the proceeds of the Bonds at any time during the term of suchBondsnortakeanyactionorrefrainfromanyactionwithrespecttotheBondsasmaybenecessarytocomplywiththeUnitedStatesInternalRevenuecodeof1986,and applicable regulations promulgated thereunder,which wouldcausetheinterestontheBondstobecometaxableundersections103,141,148,149 and 150 of said Code.
Without limiting the generality of the foregoing,the City agrees thatthereshallbepaidwithintherequiredtimesallamountsrequiredtoberebatedtotheUnitedStatespursuanttoSection148(f)of the said Code andanytemporary,proposed or final Treasury regulations as may be applicable toOanyoutstandingBondsfromtimetotime.This covenant shall survive paymentinfullordefeasanceofanyoftheBonds.The City Council hereby finds anddeterminesthatthecityhasissueditsJuniorLienWaterandSewerRevenueBonds,Series 1996,dated March 15,1996,in the aggregate principal amountof$520,000 and expects to issue a Bond Anticipation Note in exchange for alineofcreditnottoexceed$3,020,000 to provide construction financing forcertainfirestationandadministrativefacilities(the "BANu),but the Citydoesnotexpecttodrawmorethan$2,500,000 against the BAN in 1996 so that,during calendar year 1996,it is expected that all tax-exempt obligations(including the Bonds)will not exceed,in total aggregate principal amount,$5,000,000.
Notwithstanding any provision of this section,if the city shall obtainanopinionofnationallyrecognizedbondcounseltotheeffectthatanyactionrequiredunderthissectionisnolongerrequired,or to the effectthatsomefurtheractionisrequired,to maintain the exclusion from grossincomeoftheinterestontheBondspursuanttoSection103ofsaidcode,theCitymayrelyconclusivelyonsuchopinionincomplyingwiththeprovisionshereof.
Section 5.Findings and Designation of Bank Eligibility.The CityCouncilherebyfindsanddeterminesthattheCitydoesnotexpecttoissuemorethan$10,000,000 aggregate principal amount of obligations the interestonwhichisorwillbeexcludedfromgrossincomeundertheInternalRevenuecodeof1986,including but not limited to revenue bonds and notes,generalOobligationbondsandnotes,local improvement district bonds and notes,revenue anticipation notes,and lease purchase or installment purchasecontractsincalendaryear1996;and,therefore,the City Council herebyfindsanddeterminesthattheBondsare,and are hereby designated to be,qualified tax-exempt obligations pursuant to Section 265(b)(3)of said coderelatingtofinancialinstitutions.
Section 6.Form of the Bonds.The Bonds shall be printed,lithographedortypewrittenongoodbondpaperinsubstantiallythefollowingform:
UNITED STATES OF AMERICA
NO.$
CITY OF MOSES LAKE,WASHINGTON
LOCAL IMPROVEMENT DISTRICT No.58 BOND
Section 35.45.070 of the Revised Code of Washington provides,in part,as follows:
Neither the holder not owner of any bond ...issued againstalocalimprovementfundshallhaveanyclaimthereforagainstthecityortownbywhichthesameisissued,except for payment fromthespecialassessmentsmadefortheimprovementforwhichthebondO...was issued and except also for payment from the localimprovementguarantyfundofthecityortown....The city ortownshallnotbeliabletoanyholderorownerofanybond...for any loss to the local improvement guaranty fund occurring inthelawfuloperationthereof.
00 No.58 Bencl anci Note ordinance -Page 3
INTEREST RATE:MATURITY DATE:July 1,2013
SEE REVERSE SIDE FORCERTAINDEFINITIONS
Registered Owner:
Principal Amount:DOLLARS
The City of Moses Lake,Washington,(the "city")for value receivedherebypromisestopaytotheRegisteredowneridentifiedabove,orOregisterednominees,on the Maturity Date specified above,the PrincipalAmountindicatedaboveandtopayinterestthereonfromthedateofthisbond,or the most recent date to which interest has been paid or dulyprovidedfor,whichever is later,at the Interest Rate set forth above,payable on July 1,1997,and annually thereafter on each July 1 to andincludingitsMaturityDateandthereafteruntilthisbondwithinterestispaidinfull,or funds are available in the "City of Moses Lake LocalImprovementDistrictNo.58 Fund (the "LID Fund")created by OrdinanceNo.(the "Bond Ordinance")for payment in full.Both principal of andinterestonthisbondarepayableinlawfulmoneyoftheUnitedstatesofAmerica.Principal shall be payable upon presentation and surrender of thiscertificatebytheRegisteredOwnerornomineeofsuchownerattheofficeofeitherofthefiscalagenciesoftheStateofWashingtoninthecitiesofSeattle,Washington,and New York,New York (the nBond Registrar").InterestispayablebycheckordraftmailedtotheRegisteredOwnerhereofornomineeofsuchownerattheaddressappearingontheregistrybooksoftheBondRegistraronthe15thdayofthemonthprecedingtheinterestpaymentdate.
Reference is hereby made to additional provisions of this bond set forthonthereversesideandsuchadditionalprovisionsshallforallpurposeshavethesameeffectasifsetforthinthisspace.
By the Bond Ordinance,the city has designated the bonds of this issuetobequalifiedtax-exempt obligations pursuant to Section 265(b)(3)of theInternalRevenueCodeof1986relatingtofinancialinstitutions.
It is hereby certified that all acts,conditions and things required bytheConstitutionandlawsoftheStateofWashingtonandordinancesandresolutionsoftheCitytobedone,to happen or to be performed asconditionsprecedenttotheissuanceofthisbondhavebeendone,havehappenedandhavebeenperformed.This bond is not a general obligation oftheCity.
This bond shall not become valid or obligatory for any purpose or beentitledtoanysecurityorbenefitundertheBondOrdinanceuntilthecertificateofauthenticationsetforthhereonhasbeensignedbytheBondRegistrar.
IN WITNESS WHEREOF,the City has caused this bond to be signed by thefacsimileormanualsignatureoftheMayorandattestedbythefacsimileormanualsignatureoftheCityClerkanditscorporatesealtobeimpressedorafacsimileimprintedhereonthis_day of July,1996.
CITY OF MOSES LAKE,WASHINGTON
BY:(facsimile signature)
Mayor
ATTEST:
(facsimile siqpature)City Clerk
1.10 No.SS Bond and Note ordinance -Page 4
Date of Authentication:
CERTIFICATE OF AUTHENTICATION
This bond is one of the fully registered City of Moses Laker Washington,Local Improvement District No.58 Bonds described in the within mentionedBondOrdinance.
WASHINGTONSTATE FISCAL AGENCYBondRegistrar
BY:(manual)Authorized Officer
ADDITIONAL PROVISIONS
This bond is one of an issue of $1,883,189.58 of bonds of like date,maturity,interest rate,tenor and effect,except as to number anddenomination,which are issued by the City to pay part of the cost of theimprovementsmadeinLocalImprovementDistrictNo.58 in accordance with theBondOrdinanceandisissuedinfullcompliancewiththeordinancesandresolutionsoftheCityandthelawsandConstitutionoftheStateofWashington,
The City has reserved the right to redeem the bonds of this issue on anyinterestpaymentdatepriortomaturityinnumericalorderslowestnumbersfirst,at a price of par,plus accrued interest,if any,to the date ofredemption,but only so much of such bonds shall be redeemed as there shallbemoneyintheLIDFundfrompaymentsofprincipal,interest and penaltiesonassessmentsleviedinLocalImprovementDistrictNo.58 over and above theamountrequiredforpaymentoftheinterestonallbondsofthisissueoutstandingonsuchdate.
Notice of any such intended redemption shall be given not less thantwenty(20)days nor more than forty-five (45)days prior to the date fixedforredemptionbyfirstclassmail,postage prepaid,to the registered ownerofthisbondattheaddressappearingontheregistrationbooksoftheBondRegistrar.The requirements of the preceding sentence shall he deemed to becompliedwithwhennoticeismailedashereinprovided,whether or not it isactuallyreceivedbytheownerofthisbond.Notice shall also be mailed toKartinNelson&Co.Inc.at its main office,or to its successor in business,if any,at its main office,but the mailing of this notice shall not be aconditionprecedenttothecallofthisbondforredemption.
Interest on this bond so called for redemption shall cease on the datefixedforredemptionunlesssuchbondsocalledisnotpaidinfulluponpresentationmadepursuanttosuchcall.
Both principal of and interest on this bond and the bonds of this issuearepayablesolelyoutoftheCityofMosesLakeLocalImprovementDistrictNo.58 Fund (the "LID Fundn)created by the Bond Ordinance,out ofassessmentsleviedinLocalImprovementDistrictNo.58,and are secured bytheCityofMosesLakeLocalImprovementGuarantyFundcreatedbyordinanceNo.406 of the City.
This bond is interchangeable for bonds of the same number,sameprincipalamount,same interest rate and same maturity.This bond istransferableonlyupontheregistrybooksoftheBondRegistrarbysurrenderofthiscertificatetotheBondRegistrar,duly assigned and executed asíndicatedonthereversesidehereof.Such exchange or transfer shall bewithoutcosttotheownerortransferee.The Bond Registrar shall not bebligatedtotransferorexchangethisbondduringthefifteendaysprecedinganyinterestpaymentdateorthedateonwhichnoticeofredemptionofsuchbondistobegivennoraftersuchnoticehasbeengiven.The City may deemthepersoninwhosenamethisbondisregisteredtobetheabsoluteownerthereofforthepurposeofreceivingpaymentoftheprincipalofandinterestonsuchbondandforanyandallotherpurposeswhatsoever.
UD No.58 Banci and Note ordinance -Page 5
The following abbreviations,when used in the inscription on the face ofthewithinbond,shall be construed as though they were written out in fullaccordingtoapplicablelawsorregulations:
TEN COM -as tenants in commonTENENT-as tenants by the entiretiesJTTEN-as joint tenants with right of survivorship andnotastenantsincommon
UNIF (GIFT)(TRANSFER)MIN ACT Custodian
(Custodian)
under Uniform(Mimr)(state)(Gifts)(Transfers)to Minors Act
Additional abbreviations may also beusedthoughnotinlistabove
Assignment
FOR VALUE RECEIVED,the undersigned hereby sells,assigns and transfers
unto
Please insert Sociat Security or TexpayerIdentificationNumberofTransferee
the within bond
(Ptease print or type nam a address including alp code of Teransferee>appoint
or its successor,as Bond Registrar to transfer said bond on the books kept
for registration thereof with full power of substitution in the premises.
DATED:
SIGNATURE GUARANTEED:
NOTE:The signature on this Assignment mustcorrespondwiththenameoftheregisteredownerasitappearsuponthefaceofthewithinbondineveryparticular,without alteration orenlargementoranychangewhatever.
Section 7.Execution and Authentication of Bonds.The Bonds shall besignedonbehalfofthecitywiththefacsimileormanualsignatureoftheMayor,shall be attested by the facsimile or manual signature of the CityClerkandshallhavethecorporatesealoftheCityimpressedorafacsimilethereofimprintedthereon.
Only such bonds as shall bear thereon a certificate of Authentication inheformsetforthinSection6ofthisordinance,manually executed by theBondRegistrar,shall be valid or obligatory for any purpose or entitled tothebenefitsofthisordinance.Such Certificate of Authentication shall beconclusiveevidencethattheBondssoauthenticatedhavebeendulyexecuted,authenticated and delivered hereunder and are entitled to the benefits ofthisordinance.
LID No.58 Bond and Note Ordinance -Page 6
In case either of the officers who shall have executed the Bonds shallceasetobesuchofficerorofficersoftheCitybeforetheBondssosignedshallhavebeenauthenticatedordeliveredbytheBondRegistrar,or issuedbytheCity,such bonds may nevertheless be authenticated,delivered andissuedand,upon such authentication,delivery and issuance,shall be asbindingupontheCityasthoughthosewhosignedthesamehadcontinuedtobesuchofficersoftheCity.Any bond may also be signed and attested onbehalfofthecitybysuchpersonsasattheactualdateofexecutionofsuchbondshallbetheproperofficersoftheCityalthoughattheoriginaldateofsuchbondanysuchpersonshallnothavebeensuchofficeroftheCity.O Section 8.Lost or Stolen Bonds.In case any of the Bonds shall belost,stolen or destroyed,the Bond Registrar may authenticate and deliver anewbondorbondsoflikeamount,date,number,tenor and effect to theregisteredownerornomineethereofuponpaymenttothecityfortheexpensesandchargesinconnectiontherewithanduponfilingwiththeBondRegistrarevidencesatisfactorytosaidBondRegistrarthatsuchbondorbondswereactuallylost,stolen or destroyed and of the ownership thereof,and uponfurnishingtheCitywithindemnitysatisfactorytothemboth.Section 9.Bond Registrar.The Bond Registrar shall keep,or cause tobekept,sufficient books for the registration and transfer of the Bonds.The Bond Registrar is authorized,on behalf of the City,to deliver asubstituteBondorBondsinthedenomination,and bearing the same number,interest rate and maturity date for any bonds transferred or exchanged inaccordancewiththeprovisionsofsuchbondsandthisordinanceandtocarryoutalloftheBondRegistrar's powers and duties under this ordinance.Section 10.Application and Use of Bond Proceeds.The principalproceedsreceivedfromthesaleoftheBondsshallbedepositedin theCentralDriveconstructionFundheretoforecreatedintheofficeoftheFinanceDirectoroftheCityandshallbeusedtopaytheprincipalandinterestonanyinterfundloansmadetheretofromtheStreetImprovementFund,the Sanitation Fund and/or the General Fund of the City to providainterimfinancing,the remaining costs of the improvements made and to bemadepursuanttoOrdinanceNo.1692 and to pay the costs of issuance of theOBonds.Accrued interest received from the sale of the Bonds shall bedepositedintheLIDFundandappliedtopaymentofinterestcomingdueontheBondsonJuly1,1997.
Any part of the proceeds of the Bonds remaining in the aforesaidconstructionFundafterallcostsoftheimprovementsinLID58,includingcostsofissuanceoftheBonds,have been paid,shall be transferred to theLID58FundandappliedtodebtserviceontheBonds.
In accordance with Section 2.12.040 of the Moses Lake Municipal Code,part or all of any investment earnings on the Bond proceeds or other moniesintheaforesaidconstructionFundmaybedepositedintheCurrentExpenseFundoftheCityandexpendedforthepurposesofthecurrentExpenseFund.Section 11.Sale of the Bonds /Investment in Bonds.
A.The sale of the Bonds to Martin Nelson &Co.,Inc.,at the priceanduponthetermsandconditionssetforthintheofferdatedJune25,1996,and in this ordinance is hereby ratified and confirmed.
B.Simultaneously with delivery of the Bonds,the City is herebyauthorizedtopurchasenottoexceed$400,000 principal amount of the Bondsforinvestmentpurposes;and the city Manager and the Finance Director areherebyauthorizedtodesignatetheFundsoftheCitythatwillpurchasesuchBondeconciatentwithSection4ofthisordinance.
Section 12.Authorization to City Officials.The proper City officialsreherebyauthorizedanddirectedtoapproveanofficialstatementorotherdisclosuredocumentfortheBondsandtodoeverythingnecessaryandpropertocarryouttheimprovementsandforthepromptissuance,execution anddeliveryoftheBondsinconformancewiththeprovisionsofthisordinanceandfortheproperuseandapplicationoftheproceedsofthesalethereofasprovidedinSection10ofthisordinance.
1.10No.SS Bond and Note Ordinance -Page 7
Section 13.Undertaking to Provide Ongoing Disclosure.
A.Definitions.
1.nCommissionn means the securities and Exchange Commission.
2."MSRB"means the Municipal Securities Rulemaking Board or anysuccessortoitsfunctions.
3."NRMSIR"means a nationally recognized municipal securitiesinformationrepository.
4."Rule"means the Commission's Rule 15c2-12 under thesecuritiesandExchangeActof1934,as the same may be amended fromtimetotime.
5.nSID"means a state information depository for the State ofWashington(if one is created).
B.Contract/Undertaking.This Section 13 constitutes the City'swrittenundertakingforthebenefitoftheownersandbeneficialowners oftheBondshereafterissuedinaccordancewiththisordinanceasrequiredbySection(b)(5)of the Rule.
C.Operating Data.The city agrees to provide or cause to be providedtoeachNRMSIRandtotheSID,if any,in each case as designated by theCommissioninaccordancewiththeRule,the following annual financialinformationandoperatingdataforthepriorfiscalyear(commencing in 1997forthefiscalyearendedDecember31,1996):
1.A statement setting forth:
(a)The amount of assessment principal,interest,andpenaltiespaidinLID58forthepriorfiscalyear;
(b)The amount of assessment principal,interest,andOpenaltiesowedinLID58forthepriorfiscalyearandtheamountthereofthatwasdelinquentandremaineddelinquentasofthelastdayofthepriorfiscalyear;
(c)The total amount of assessment principal outstanding inLID58asofthelastdayofthepriorfiscalyear;and
(d)The balance in the Guaranty Fund and the amount of,outstanding obligations secured by such Guaranty Fund as of thelastdayofthepriorfiscalyear.
2.The audited financial statements of the city prepared inaccordancewithregulationsprescribedbytheWashingtonStateAuditorpursuanttoRCW43.09.200 (or any successor statute),provided that,iftheauditedfinancialstatementsarenotyetavailable,the City shallprovideunauditedfinancialstatementsinsubstantiallythesameformat;and audited financial statements when they become available.
The foregoing information shall be available by the end of the seventhmonthfollowingtheendofthecity's fiscal year.Currently,the city'sfiscalyearendsDecember31.If the City changes its fiscal year,it shallprovidewrittennoticeofsuchchange,on or before the effective date of anysuchchange,to each then existing NRMSIR and the SID,if any.
D.Material Events.The City agrees to provide or cause to beprovided,in a timely manner,to the SID,if any,and to each NRMSIR or totheMSRBnoticeoftheoccurrenceofanyofthefollowingeventswithrespecttotheBonds,if material:
>Principal and interest payment delinquencies;
*Nonpayment-related defaults;
un No.58 sondand noteordinance-Page 8
>Unscheduled draws on debt service reserves reflectingfinancialdifficulties;
>Unscheduled draws on credit enhancements reflecting financialdifficulties;
*Substitution of credit or liquidity providers or their failuretoperform;
>Adverse tax opinions or events affecting the tax-exempt statusoftheBonds;O >Modifications to the rights of holders of the Bonds;
>Optional redemption of Bonds prior to their maturity;
>Defeasances;
*Rating changes;and
>Release,substitution or sale of property securing repaymentoftheBonds.
The only debt service reserves for the Bonds is the Guaranty Fund.There are no credit enhancements for the Bonds.The Bonds are not.rated.There are no nonpayment related defaults.Regarding the last material eventlistedabove,the Commission has indicated that in an assessment district theonlytimeanissuermustprovideamaterialeventnotificationiswhenpropertyintheassessmentdistrictissoldandtheassessmentsarenotpaidoffandthesaleofsuchpropertyreleasesthelienonsuchproperty.
E.Notification Upon Failure to Provide Financial Data.The cityagreestoprovideorcausetobeprovided,in a timely manner,to each NRMSIRortotheMSRBandtotheSID,if any,notice of its failure to provide theannualfinancialinformationdescribedinSubsectionCaboveonorpriortothedatesetforthinSubsectionCabove.
F.Termination/Modification.The city's obligations to provide annualfinancialinformationandnoticesofmaterialeventsshallterminateuponthelegaldefeasance,prior to redemption,or upon payment in full,of all theBonds.This section,or any provision hereof,shall be null and void if thecity(1)obtains an opinion of nationally recognized bond counsel to theeffectthatthoseportionsoftheRulewhichrequirethissection,or anysuchprovisionofthissection,are invalid,have been repealed retroactivelyorotherwisedonotapplytotheBonds;and (2)notifies each then existingNRMSIRandtheSID,if any,of such opinion and the cancellation of thissectionoranysuchprovision.
Notwithstanding any other provision of this ordinance,the City mayamendthissection13,and any provision of this Section 13 may be waived,provided that the following conditions are satisfied:
(i)If the amendment or waiver relates to the provisions ofSubsections13.C.1(a)-(d),C.2 or D,it may only be made in connectionwithachangeincircumstancesthatarisesfromachangeinlegalrequirements,change in law,or change in the identity,nature or statusofthecitywithrespecttotheBondsorthetypeofbusinessconducted;
(ii)The undertaking,as amended or taking into account suchwaiver,would,in the opinion of nationally recognized bond counsel,have complied wlLh the requirements of the Rule at the time of theoriginalissuanceoftheBonds,after taking into account any amendmentsorinterpretationsoftheRule,as well as any change in circumstances;and
(iii)The amendment or waiver either (a)is approved by the ownersoftheBondsinthesamemannerasprovidedinthisordinanceforamendmentstothisordinancewiththeconsentofowners,or (b)does
LID No.58 Bond and Note ordinance-PagG 9
not,in the opinion of nationally recognized bond counsel,materiallyimpairtheinterestsoftheownersorbeneficialownersofsuchBonds.
In the event of any amendment or waiver of a provision of thisSection13,the City shall describe such amendment in the next annual report,and shall include,as applicable,a narrative explanation of the reason fortheamendmentorwaiveranditsimpactonthetype(or in the case of achangeofaccountingprinciples,on the presentation)of financialinformationoroperatingdatabeingpresentedbytheCity.In addition,iftheamendmentrelatestotheaccountingprinciplestobefollowedin0preparingfinancialstatements,(a)notice of such change shall be given inthemannerasforamaterialeventunderSubsectionD,and (b)the annualreportfortheyearinwhichthechangeismadeshouldpresentacomparison(in narrative form and also,if feasible,in quantitative form)between thefinancialstatementsaspreparedonthebasisofthenewaccountingprinciplesandthosepreparedonthebasisoftheformeraccountingprinciples.
G.Bond Owner's Remedies Under This Section.The right of an owner orbeneficialownerofaBondtoenforcetheprovisionsofthissectionshallbelimitedtoarighttoobtainspecificenforcementofthecity's obligationshereunder,and any failure by the City to comply with the provisions of thisundertakingshallnotbeaneventofdefaultwithrespecttoanyBondsissuedpursuanttothisordinance.For purposes of this Section 13,beneficialownermeansanypersonwhohasthepower,directly or indirectly,to vote orconsentwithrespectto,or to dispose of ownership of,any Bonds,includingpersonsholdingBondsthroughnomineesordepositories.
Section 14.Defeasance.In the event that monies are irrevocably setasideinaspecialescrowfund(the "Escrow Fundu)on the terms andconditionssetforthinthissectionbelowtorefundalloranypartoftheBonderwithrespecttotheBondssorefunded:
A.Payments into the LID Fund for payment of principal of and interestonsuchBondsshallbediscontinued;
B.Such Bonds shall cease to be entitled to any lien,benefit orsecurityofthisordinanceexcepttherighttoreceivethemoniessosetaside;and
C.Such Bonds shall be deemed not to be outstanding under thisordinance;provided,that any such Bonds shall be deemed to be outstandingforthepurposeoftransfers,exchanges or the replacement of lost ordestroyedBondspursuanttothisordinance.
The Escrow Fund shall be established with a corporate fiduciary qualified todobusinessintheStateofWashingtonand:
1.Monies set aside in said Escrow Fund shall be irrevocablypledgedtopayprincipalofandredemptionpremium,if any,and interestontherefundedBonds;and
2.Said monies shall be held in cash and/or "governmentobligations"as defined in Chapter 39.53 RCW;
3.Such government obligations shall mature at such time or timesandbearinterestatsuchratestoprovidewithoutanyreinvestmentthereofsufficientamountstopayinterestontherefundedBondswhendueandtoredeemandretiretherefundedBondsattheirrespectivematuritydates,mandatory redemption dates,and/or pursuant to anirrevocablecallofanyorallsuchrefundedBondsforredemptioninaccordancewiththeirterms;and
4.The sufficiency of such cash and government obligations tomakesuchpaymentsshallhavebeenverifiedbyanindependentcertifiedpublicaccountant.
Within 30 days of any defeasance of any of the Bonds,the City shallprovide,or cause to be provided,notice of defeasance of such Bonds to the
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registered owners thereof and to each NRMSIR and SID,if any,in accordancewithSection13ofthisordinance.
Section 15.Supplemental Ordinances.
A.The City Council from time to time and at any time may adopt anordinanceorordinancessupplementaltothisordinancewhichsupplementalordinanceorordinancesthereaftershallbecomeapartofthisordinance,foranyoneormoreorallofthefollowingpurposes.
0 1.To add to the covenants and agreements of the city containedinthisordinanceothercovenantsandagreementsthereafterto beobservedwhichshallnotadverselyaffecttheinterestsoftheownersofanyBondortosurrenderanyrightorpowerhereinreservedtoorconferredupontheCity.
2.To make such provisions for the purpose of curing anyambiguitiesorofcuring,correcting or supplementing any defectiveprovisioncontainedinthisordinanceinregardtomattersorquestionsthereunderastheCityCouncilmaydeemnecessaryordesirableandnotinconsistentwiththisordinanceandwhichshallnotadverselyaffecttheinterestoftheownersofanyBonds.
3.To make such additions,deletions or modifications as may benecessarytoassureexclusionofinterestonanyBondsfromgrossincomeundertheCode.
Subject to Subsections 15.8 and 15.E of this ordinance,any suchsupplementalordinanceoftheCitymaybeadoptedwithouttheconsentoftheownersofanyBondsatanytimeoutstanding,notwithstanding any of theprovisionsofsubsectionBofthissection.
B.With the consent of the owners of not less than 65%in aggregateprincipalamountoftheBondsatthetimeoutstanding,the city Council mayadoptanordinanceorordinancessupplementalheretoforthepurposeofaddinganyprovisionstoorchanginginanymanneroreliminatinganyoftheprovisionsofthisordinanceorofanysupplementalordinance;provided,however,that no such supplemental ordinance shall:
1.Extend the fixed maturity of any Bond or reduce the rate ofinterestthereon,or extend the times of payments of interest thereonfromtheirduedatesorreducetheamountoftheprincipalthereof,orreduceanypremiumpayableontheredemptionthereof,without theconsentoftheownerofeachBondsoaffected.
2.Reduce the aforesaid percentage of the respective Bond ownersrequiredtoapproveanysuchsupplementalordinance,without the consentoftheownersofalloftheBondsthenoutstanding.
It shall not be necessary for the consent of bondowners under thissubsectionBtoapprovetheparticularformofanyproposedsupplementalordinance,but it shall be sufficient if such consent shall approve thesubstancethereof.
C.Upon the adoption of any supplemental ordinance pursuant to theprovisionsofthissection,this ordinance shall be deemed to be modified andamendedinaccordancetherewith,and the respective rights,duties andobligationsofthecityunderthisordinanceandallownersofBondsoutstandinghereundershallthereafterbedetermined,exercised and enforcedthereunder,subject in all respects to such modification and amendments,andallthetermsandconditionsofanysuonsupplementalordinanceshallbeOdeemedtobepartofthetermsandconditionsofthisordinanceforanyand111purposes.
D.Bonds executed and delivered after the execution of anysupplementalordinanceadoptedpursuanttotheprovisionsofthissectionmaybearanotationastoanymatterprovidedforinsuchsupplementalordinance,and if such supplemental ordinance shall so provide,new bonds so modified astoconform,in the opinion of the city Council,to any modification of this
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ordinance contained in any such supplemental ordinance,may be prepared bytheCityanddeliveredwithoutcosttotheownersoftheBondsthenoutstanding,upon surrender for cancellation of such Bonds in equal aggregateprincipalamounts.
Section 16.LID 58 Installments and Interest Rate.Section 3 ofOrdinanceNo.1704 of the City confirming the final assessment roll in LID 58isherebysupplementedasfollows:
A.Number of Installments.Unless earlier paid,as permitted by law,O the assessment principal remaining unpaid on March 22,1996,shall be payablein15equalannualinstallments,plus interest on the entire outstandingprincipalbalance,due March 21,1997,and annually thereafter to andincludingMarch21,2011.
B.Interest Rate.The interest on the LID 58 assessment principalshallbe6.85%per annum.
Section 17.Effective Date.This ordinance shall take effect five daysafteritsadoptionandpublicationinthemannerprovidedbylaw.
ADOPTED by the City Council of the City of Moses Lake,Washington at aregularopenpublicmeetingthereofheldonthe25thdayofJune,1996.
CITY OF MOSES LAKE,WASHINGTON
(Affix saal)
or
ATTEST:
Ap s to
City Attorne
PUBLISHED:JUNE 28,1996
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