2256ORDINANCE NO. 2256
AN ORDINANCE of the City of Moses Lake, Washington, providing for the issuance
and sale of limited tax general obligation bonds of the City in the principal amount
of $6,100,000 to provide funds for various downtown improvements, ice skating rink,
flowrider/lazy river for the aquatic center and maintenance facility for the Parks and
Recreation Department; providing the date, form, terms and maturities of said
bonds; authorizing a preliminary official statement; providing for the disposition of
the proceeds of sale; and approving the sale of such bonds.
WHEREAS, the best interests of the inhabitants of the City of Moses Lake, Washington (the "City")
require that the City make various downtown improvements, finance an ice skating rink,
flowrider/lazy river for the aquatic center and maintenance facility for the Parks and Recreation
Department; and
WHEREAS, in order to provide the funds required for such purpose, the City now desires to
authorize the issuance of limited tax general obligation bonds in the principal amount of $6,100,000
(the "Bonds'') and to authorize the sale of the Bonds; and
WHEREAS, the City has received the offer from Martin Nelson & Co., Inc., Seattle, Washington to
underwrite the Bonds at terms acceptable to this City Council;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOSES LAKE, WASHINGTON, DO
ORDAIN as follows:
Section 1. Definitions. As used in this ordinance, the following words shall have the following
meanings:
•Bond Fund means the "Limited Tax General Obligation Bond Redemption Fund, 2006" established
pursuant to Section 8 hereof.
Bond Insurance Policy means the financial guaranty insurance policy issued by the Insurer
insuring the payment when due of the principal of and interest on the Bonds as provided therein.
Bond Register means the registration books showing the name, address and tax identification
number of each Registered Owner of the Bonds, maintained pursuant to Section 149(a) of the
Code.
Bonds means the $6,100,000 principal amount of the City of Moses Lake, Washington Limited Tax
General Obligation Bonds, 2006 issued pursuant to this ordinance for the purpose of paying costs
authorized by Section 2 hereof.
Bond Year means each one-year period that ends on the date selected by the City. The first and
last Bond Years may be short periods. If no day is selected by the City before the earlier of the final
maturity date of the Bonds or the date that is five years after the date of issuance of the Bonds,
Bond Years end on each anniversary of the date of issue and on the final maturity date of the
Bonds.
City means the City of Moses Lake, Washington, a municipal corporation of the State of
Washington.
Code means the Internal Revenue Code of 1986, as amended, and shall include all applicable
regulations and rulings relating thereto.
Commission means the Securities and Exchange Commission.
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ORDINANCE NO. 2256
PAGE 2 May 23, 2006
Council means the City Council as the general legislative authority of the City, as the same shall
be duly and regularly constituted from time to time.
DTC means The Depository Trust Company, New York, New York, a limited purpose trust company
organized under the laws of the State of New York, as depository for the Bonds pursuant to
Section 4 hereof.
Finance Director means the duly qualified, appointed and acting Finance Director of the City or
any other officer who succeeds to the duties now delegated to that office.
Government Obligations means those obligations now or hereafter defined as such in chapter
39.53 RCW.
Insurer means MBIA Insurance Corporation, a stock insurance corporation organized and existing
under the laws of the State of New York, or any successor thereto or assignee thereof, as issuer
of a Bond Insurance Policy for the Bonds.
Letter of Representations means the blanket issuer letter of representations from the City to DTC.
MSRB means the Municipal Securities Rulemaking Board or any successor to its functions.
Net Proceeds, when used with reference with the Bonds, means the principal amount of the Bonds,
plus accrued interest and original issue premium, if any, and less original issue discount.
NRMSIR means a nationally recognized municipal securities information repository.
Private Person means any natural person engaged in a trade or business or any trust, estate,
partnership, association, company or corporation.
Private Person Use means the use of property in a trade or business by a Private Person if such
use is other than as a member of the general public. Private Person Use includes ownership of the
property by the Private Person as well as other arrangements that transfer to the Private Person
the actual or beneficial use of the property (such as a lease, management or incentive payment
contract or other special arrangement) in such a manner as to set the Private Person apart from
the general public. Use of property as a member of the general public includes attendance by the
Private Person at municipal meetings or business rental of property to the Private Person on a
day-to-day basis if the rental paid by such Private Person is the same as the rental paid by any
Private Person who desires to rent the property. Use of property by nonprofit community groups
or community recreational groups is not treated as Private Person Use if such use is incidental to
the governmental uses of property, the property is made available for such use by all such
community groups on an equal basis and such community groups are charged only a de minimis
fee to cover custodial expenses.
Project means various downtown improvements, financing an ice skating rink, flowrider/lazy river
for the aquatic center and maintenance facility for the Parks and Recreation Department.
Registered Owner means the person named as the registered owner of a Bond in the Bond
Register. For so long as the Bonds are held in book-entry only form, DTC shall be deemed to be
the sole Registered Owner.
Registrar means, initially, the fiscal agency of the State of Washington for the purposes of
registering and authenticating the Bonds, maintaining the Bond Register, effecting transfer of
ownership of the Bonds and paying interest on and principal of the Bonds.
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ORDINANCE NO. 2256
PAGE 3 May 23, 2006
Rule means the Commission's Rule 15c2-12 under the Securities Exchange Act of 1934, as the
•same may be amended from time to time.
SID means a state information depository for the State of Washington.
Underwriter means Martin Nelson & Co., Inc., Seattle, Washington.
Rules of Interpretation. In this ordinance, unless the context otherwise requires:
(a)The terms "hereby," "hereof," "hereto," "herein, "hereunder" and any similar terms, as used
in this ordinance, refer to this ordinance as a whole and not to any particular article, section,
subdivision or clause hereof, and the term "hereafter" shall mean after, and the term
"heretofore" shall mean before, the date of this ordinance;
(b)Words of the masculine gender shall mean and include correlative words of the feminine
and neuter genders and words importing the singular number shall mean and include the
plural number and vice versa;
(c)Words importing persons shall include firms, associations, partnerships (including limited
partnerships), trusts, corporations and other legal entities, including public bodies, as well
as natural persons;
(d)Any headings preceding the text of the several articles and Sections of this ordinance, and
any table of contents or marginal notes appended to copies hereof, shall be solely for •
convenience of reference and shall not constitute a part of this ordinance, nor shall they
affect its meaning, construction or effect;
(e)All references herein to "articles," "sections" and other subdivisions or clauses are to the
corresponding articles, sections, subdivisions or clauses hereof.
(f)Words importing the singular number include the plural number and vice versa.
Section 2. The Project. Proceeds of the Bonds will be used to finance various downtown
improvements, an ice skating rink, flowrider/lazy river for the aquatic center and maintenance facility
for the Parks and Recreation Department (the "Project") and to pay costs of issuance of the Bonds.
Section 3. Authorization of Bonds and Bond Details. For the purpose of providing funds for the
Project, the City shall issue its limited tax general obligation bonds in the aggregate principal
amount of $6,100,000. The bonds shall be general obligations of the City, shall be designated "City
of Moses Lake, Washington Limited Tax General Obligation Bonds, 2006" (the "Bonds"); shall be
dated as of the date of their initial delivery; shall be fully registered as to both principal and interest,
shall be in the denomination of $5,000 each or any integral multiple thereof, provided that no Bond
shall represent more than one maturity, shall be numbered separately in such manner and with any
additional designation as the Registrar deems necessary for purposes of identification, and shall
bear interest from their date payable on the first days of each February and August, commencing
on February 1, 2007. The Bonds shall mature in the following years and in the following amounts,
bearing interest at the following rates:
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ORDINANCE NO. 2256
PAGE 4 May 23, 2006
Maturity Dates
(August 1)Principal Amounts Interest Rates
2007 170,000 3.65%
2008 215,000 3.68
2009 225,000 3.70
2010 230,000 3.75
2011 240,000 3.80
2012 250,000 3.85
2013 260,000 3.90
2014 270,000 3.95
2015 280,000 4.00
2016 290,000 4.05
2017 305,000 4.10
2018 315,000 4.15
2021 1,030,000 4.15
2026 2,020,000 4.25
Section 4. Registration, Exchange and Payments.
(a)Registrar/Bond Register. The City hereby specifies and adopts the system of registration
approved by the Washington State Finance Committee from time to time through the
appointment of state fiscal agencies. The City shall cause a bond register to be maintained
by the Registrar. So long as any Bonds remain outstanding, the Registrar shall make all
necessary provisions to permit the exchange or registration or transfer of Bonds at its
principal corporate trust office. The Registrar may be removed at any time at the option of
the Finance Director upon prior notice to the Registrar and a successor Registrar appointed
by the Finance Director. No resignation or removal of the Registrar shall be effective until
a successor shall have been appointed and until the successor Registrar shall have
accepted the duties of the Registrar hereunder. The Registrar is authorized, on behalf of
the City, to authenticate and deliver Bonds transferred or exchanged in accordance with the
provisions of such Bonds and this ordinance and to carry out all of the Registrar's powers
and duties under this ordinance. The Registrar shall be responsible for its representations
contained in the Certificate of Authentication of the Bonds.
(b)Registered Ownership. The City and the Registrar, each in its discretion, may deem and
treat the Registered Owner of each Bond as the absolute owner thereof for all purposes
(except as provided in Section 13 of this ordinance), and neither the City nor the Registrar
shall be affected by any notice to the contrary. Payment of any such Bond shall be made
only as described in Section 4(h) hereof, but such Bond may be transferred as herein
provided. All such payments made as described in Section 4(h) shall be valid and shall
satisfy and discharge the liability of the City upon such Bond to the extent of the amount or
amounts so paid.
(c)DTC Acceptance/Letters of Representations. The Bonds initially shall be held in fully
immobilized form by DTC acting as depository. To induce DTC to accept the Bonds as
eligible for deposit at DTC, the City has executed and delivered to DTC a Blanket Issuer
Letter of Representations. Neither the City nor the Registrar will have any responsibility or
obligation to DTC participants or the persons for whom they act as nominees (or any
successor depository) with respect to the Bonds in respect of the accuracy of any records
maintained by DTC (or any successor depository) or any DTC participant, the payment by
DTC (or any successor depository) or any DTC participant of any amount in respect of the
principal of or interest on Bonds, any notice which is permitted or required to be given to
Registered Owners under this ordinance (except such notices as shall be required to be
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ORDINANCE NO. 2256
PAGE 5 May 23, 2006
given by the City to the Registrar or to DTC (or any successor depository)), or any consent
given or other action taken by DTC (or any successor depository) as the Registered Owner.
For so long as any Bonds are held in fully-immobilized form hereunder, DTC or its
successor depository shall be deemed to be the Registered Owner for all purposes
hereunder, and all references herein to the Registered Owners shall mean DTC (or any
successor depository) or its nominee and shall not mean the owners of any beneficial
interest in such Bonds.
If any Bond shall be duly presented for payment and funds have not been duly provided by
the City on such applicable date, then interest shall continue to accrue thereafter on the
unpaid principal thereof at the rate stated on such Bond until it is paid.
(d) Use of Depository.
(1)The Bonds shall be registered initially in the name of "Cede & Co.", as nominee of
DTC, with one Bond maturing on each of the maturity dates for the Bonds in a
denomination corresponding to the total principal therein designated to mature on
such date. Registered ownership of such immobilized Bonds, or any portions
thereof, may not thereafter be transferred except (A) to any successor of DTC or its
nominee, provided that any such successor shall be qualified under any applicable
laws to provide the service proposed to be provided by it; (B) to any substitute
depository appointed by the Finance Director pursuant to subsection (2) below or
such substitute depository's successor; or (C) to any person as provided in
subsection (4) below.
(2)Upon the resignation of DTC or its successor (or any substitute depository or its
successor) from its functions as depository or a determination by the Finance
Director to discontinue the system of book entry transfers through DTC or its
successor (or any substitute depository or its successor), the Finance Director may
hereafter appoint a substitute depository. Any such substitute depository shall be
qualified under any applicable laws to provide the services proposed to be provided
by it.
(3)In the case of any transfer pursuant to clause (A) or (B) of subsection (1) above, the
Registrar shall, upon receipt of all outstanding Bonds, together with a written request
of the Finance Director, issue a single new Bond for each maturity then outstanding,
registered in the name of such successor or such substitute depository, or their
nominees, as the case may be, all as specified in such written request of the
Finance Director.
(4)In the event that (A) DTC or its successor (or substitute depository or its successor)
resigns from its functions as depository, and no substitute depository can be
obtained, or (B) the Finance Director determines that it is in the best interest of the
beneficial owners of the Bonds that such owners be able to obtain the Bonds in the
form of certificates, the ownership of such Bonds may then be transferred to any
person or entity as herein provided, and shall no longer be held in fully-immobilized
form. The Finance Director shall deliver a written request to the Registrar, together
with a supply of definitive Bonds, to issue Bonds as herein provided in any
authorized denomination. Upon receipt by the Registrar of all then outstanding
Bonds together with a written request of the Finance Director to the Registrar, new
Bonds shall be issued in the appropriate denominations and registered in the names
of such persons as are requested in such written request.
ORDINANCE NO. 2256
PAGE 6 May 23, 2006
(e)Registration of Transfer of Ownership or Exchange; Change in Denominations. The
transfer of any Bond may be registered and Bonds may be exchanged, but no transfer of
any such Bond shall be valid unless it is surrendered to the Registrar with the assignment
form appearing on such Bond duly executed by the Registered Owner or such Registered
Owner's duly authorized agent in a manner satisfactory to the Registrar. Upon such
surrender, the Registrar shall cancel the surrendered Bond and shall authenticate and
deliver, without charge to the Registered Owner or transferee therefor, a new Bond (or
Bonds at the option of the new Registered Owner) of the same date, maturity and interest
rate and for the same aggregate principal amount in any authorized denomination, naming
as Registered Owner the person or persons listed as the assignee on the assignment form
appearing on the surrendered Bond, in exchange for such surrendered and cancelled Bond.
Any Bond may be surrendered to the Registrar and exchanged, without charge, for an equal
aggregate principal amount of Bonds of the same date, maturity and interest rate, in any
authorized denomination. The Registrar shall not be obligated to register the transfer or to
exchange any Bond during the 15 days preceding any interest payment or principal
payment date any such Bond is to be redeemed.
(f)Registrar's Ownership of Bonds. The Registrar may become the Registered Owner of any
Bond with the same rights it would have if it were not the Registrar, and to the extent
permitted by law, may act as depository for and permit any of its officers or directors to act
as member of, or in any other capacity with respect to, any committee formed to protect the
right of the Registered Owners of Bonds.
(g)Registration Covenant. The City covenants that, until all Bonds have been surrendered and
canceled, it will maintain a system for recording the ownership of each Bond that complies
with the provisions of Section 149 of the Code.
(h)Place and Medium of Payment. Both principal of and interest on the Bonds shall be
payable in lawful money of the United States of America. Interest on the Bonds shall be
calculated on the basis of a year of 360 days and twelve 30-day months. For so long as all
Bonds are in fully immobilized form, payments of principal and interest thereon shall be
made as provided in accordance with the operational arrangements of DTC referred to in
the Letter of Representations. In the event that the Bonds are no longer in fully immobilized
form, interest on the Bonds shall be paid by check or draft mailed to the Registered Owners
at the addresses for such Registered Owners appearing on the Bond Register on the
fifteenth day of the month preceding the interest payment date, or upon the written request
of a Registered Owner of more than $1,000,000 of Bonds (received by the Registrar at least
15 days prior to the applicable payment date), such payment shall be made by the Registrar
by wire transfer to the account within the continental United States designated by the
Registered Owner. Principal of the Bonds shall be payable upon presentation and
surrender of such Bonds by the Registered Owners at the principal office of the Registrar.
Section 5. Redemption and Purchase.
(a)Optional Redemption. The Bonds maturing on or prior to August 1, 2016 are not subject
to redemption prior to their scheduled maturities. The Bonds maturing on and after August
1, 2017 are subject to redemption at the option of the City in whole or in part on any date
on or after August 1, 2016 (and if in part, with maturities to be selected by the City) at a
price of par plus accrued interest, if any, to the date of redemption.
(b)Mandatory Redemption. Unless previously redeemed pursuant to the foregoing optional
redemption provisions, the Bonds maturing on August 1, 2021 are subject to mandatory
redemption at a price of par plus accrued interest to the date of redemption in the following
years in the following principal amounts:.
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ORDINANCE NO. 2256
PAGE 7 May 23, 2006
Year Amount
2019 $330,000
2020 $345,000
2021* $355,000
* Maturity.
Unless previously redeemed pursuant to the foregoing optional redemption provisions, the
Bonds maturing on August 1, 2026 are subject to mandatory redemption at a price of pa
plus accrued interest to the date of redemption in the following years in the followi
principal amounts:
Year Amount
2022 $370,000
2023 $385,000
2024 $405,000
2025 $420,000
2026*$440,000
* Final maturity.
(c)Purchase of Bonds for Retirement. The City reserves the right to purc
Bonds offered to the City at any price deemed reasonable to the Financ
(d)Selection of Bonds for Redemption. If Bonds are called for optional redemption, the series
and maturities of Bonds to be redeemed shall be selected by the City. If any Bonds to be
redeemed (optional or mandatory) then are held in book-entry-only form, the selection of
Bonds to be redeemed within a maturity shall be made in accordance with the operational
arrangements then in effect at DTC. If the Bonds to be redeemed are no longer held in
book-entry-only form, the selection of such Bonds to be redeemed shall be made in the
following manner. If the City redeems at any one time fewer than all of the Bonds having
the same maturity date, the particular Bonds or portions of Bonds and maturity to be
redeemed shall be selected by lot utilizing a random selection process reasonably
determined by the Registrar) in increments of $5,000. In the case of a Bond of maturity in
a denomination greater than $5,000, the City and Registrar shall treat each Bond of that
maturity as representing such number of separate Bonds each of the denomination of
$5,000 as is obtained by dividing the actual principal amount of such Bond of that maturity
by $5,000. In the event that only a portion of the principal sum of a Bond is redeemed, upon
surrender of such Bond at the principal office of the Registrar there shall be issued to the
Registered Owner, without charge therefor, for the then-unredeemed balance of the
principal sum thereof a Bond or, at the option of the Registered Owner, Bonds of like
maturity and interest rate in any of the denominations herein authorized.
(e)Notice of Redemption. Written notice of any redemption of Bonds prior to maturity shall be
given by the Registrar on behalf of the City by first class mail, postage prepaid, not less than
30 days nor more than 60 days before the date fixed for redemption to the Registered
Owners of Bonds that are to be redeemed at their last addresses shown on the Bond
Register. This requirement shall be deemed complied with when notice is mailed to the
Registered Owners at their last addresses shown on the Bond Register, whether or not
such notice is actually received by the Registered Owners.
r
g
hase any of the
e Director.
So long as the Bonds are in book-ent
Beneficial Owners of Bonds to b
arrangements then in effect at DTC,
ry only form, notice of redemption shall be given to
redeemed in accordance with the operational
nd neither the City nor the Registrar shall be obligated
ORDINANCE NO. 2256
PAGE 8 May 23, 2006
or responsible to confirm that any notice of redemption is, in fact, provided to Beneficial
Owners.
Each notice of redemption prepared and given by the Registrar to Registered Owners of
Bonds shall contain the following information: (1) the redemption date, (2) the redemption
price, (3) if fewer than all outstanding Bonds are to be redeemed, the identification by
maturity and series (and, in the case of partial redemption, the principal amounts) of the
Bonds to be redeemed, (4) that (unless the notice of redemption is a conditional notice, in
which case the notice shall state that interest shall cease to accrue from the date fixed for
redemption if and to the extent that funds have been provided to the Registrar for the
redemption of Bonds) on the date fixed for redemption the redemption price will become
due and payable upon each Bond or portion called for redemption, and that interest shall
cease to accrue from the date fixed for redemption, (5) that the Bonds are to be surrendered
for payment at the principal office of the Registrar, (6) the CUSIP numbers of all Bonds
being redeemed, (7) the dated date of the Bonds being redeemed, (8) the rate of interest
for each Bond being redeemed, (9) the date of the notice, and (10) any other information
deemed necessary by the Registrar to identify the Bonds being redeemed.
Upon the payment of the redemption price of Bonds being redeemed, each check or other
transfer of funds issued for such purpose shall bear the CUSIP number identifying, by issue
and maturity, the Bonds being redeemed with the proceeds of such check or other transfer.
(f)Effect of Redemption. Notice of an optional redemption may be conditional upon the
conditions set forth in set forth in the redemption notice. Unless the City has revoked a
notice of redemption (or unless the City provided a conditional notice and the conditions for
redemption set forth therein are not satisfied), the City shall transfer to the Registrar
amounts that, in addition to other money, if any, held by the Registrar for such purpose, will
be sufficient to redeem, on the date fixed for redemption, all the Bonds to be redeemed. If
and to the extent that funds have been provided to the Registrar for the redemption of
Bonds then such Bonds shall become due and payable on the date fixed for redemption and
interest on such Bond shall cease to accrue from and after such date.
(g)Amendment of Notice Provisions. The foregoing notice provisions of this section, including
but not limited to the information to be included in redemption notices and the persons
designated to receive notices, may be amended by additions, deletions and changes to
maintain compliance with duly promulgated regulations and recommendations regarding
notices of redemption of municipal securities.
Section 6. Form of Bonds. The Bonds shall be in substantially the following form:
STATEMENT OF INSURANCE
MBIA Insurance Corporation (the "Insurer") has issued a policy containing the following
provisions, such policy being on file at the principal office of the Fiscal Agency of the State of
Washington in New York, New York.
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The Insurer, in consideration of the payment of the premium and subject to the terms of the
policy, hereby unconditionally and irrevocably guarantees to any owner, as hereinafter defined, of
the following described obligations, the full and complete payment required to be made by or on
behalf of the City of Moses Lake, Washington (the "Issuer") to the Fiscal Agency of the State of
Washington, or its successor (the "Paying Agent"), of an amount equal to (i) the principal of (either
at the stated maturity or by any advancement of maturity pursuant to a mandatory sinking fund
payment) and interest on, the Obligations (as that term is defined below) as such payments shall
become due but shall not be so paid (except that in the event of any acceleration of the due date
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ORDINANCE NO. 2256
PAGE 9 May 23, 2006
of such principal by reason of mandatory or optional redemption or acceleration resulting from
default or otherwise, other than any advancement of maturity pursuant to a mandatory sinking fund
payment, the payments guaranteed hereby shall be made in such amounts and at such times as
such payments of principal would have been due had there not been any such acceleration, unless
the Insurer elects in its sole discretion, to pay in whole or in part any principal due by reason of such
acceleration); and (ii) the reimbursement of any such payment which is subsequently recovered
from any owner pursuant to a final judgment by a court of competent jurisdiction that such payment
constitutes an avoidable preference to such owner within the meaning of any applicable bankruptcy
w. The amounts referred to in clauses (i) and (ii) of the preceding sentence shall be referred to
rein collectively as the "Insured Amounts." "Obligations" shall mean:
$6,100,000
CITY OF MOSES LAKE, WASHINGTON
LIMITED TAX GENERAL OBLIGATION BONDS, 2006
pon receipt of telephonic or telegraphic notice, such notice subsequently confirmed in
egistered or certified mail, or upon receipt of written notice by registered or certified mail,
rer from the Paying Agent or any owner of an Obligation the payment of an Insured
which is then due, that such required payment has not been made, the Insurer on the
ch payment or within one business day after receipt of notice of such nonpayment,
ter, will make a deposit of funds, in an account with U.S. Bank Trust National
New York, New York, or its successor, sufficient for the payment of any such
which are then due. Upon presentment and surrender of such Obligations or
ch other proof of ownership of the Obligations, together with any appropriate
ignment to evidence the assignment of the Insured Amounts due on the
aid by the Insurer, and appropriate instruments to effect the appointment of the
uch owners of the Obligations in any legal proceeding related to payment of
e Obligations, such instruments being in a form satisfactory to U.S. Bank
on, U.S. Bank Trust National Association shall disburse to such owners or
nt of the Insured Amounts due on such Obligations, less any amount held
e payment of such Insured Amounts and legally available therefor. This
nst loss of any prepayment premium which may at any time be payable
n.
m "owner" shall mean the registered owner of any Obligation as
ed by the Paying Agent, the Issuer, or any designee of the Issuer
r shall not include the Issuer or any party whose agreement with
ng security for the Obligations.
la
he
writing by
by the lnsu
Amount for
due date of su
whichever is I
Association, in
Insured Amounts
presentment of su
instruments of ass
Obligations as are p
Insurer as agent for s
Insured Amounts on t
Trust National Associati
the Paying Agent payme
by the Paying Agent for th
policy does not insure agai
with respect to any Obligatio
As used herein, the to
indicated in the books maintain
for such purpose. The term own
the Issuer constitutes the underly
Any service of process on the Insurer may be made to the Insurer at its offices located at
113 King Street, Armonk, New York 1 0504 and such service of process shall be valid and binding.
This policy is non-cancelable for any reason. The premium on this policy is not refundable
for any reason including the payment pri or to maturity of the Obligations.
MBIA Insurance Corporation
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ORDINANCE NO. 2256
PAGE 10 May 23, 2006
UNITED STATES OF AMERICA
NO.
$
STATE OF WASHINGTON
CITY OF MOSES LAKE, WASHINGTON
LIMITED TAX GENERAL OBLIGATION BOND, 2006
INTEREST RATE: % MATURITY DATE: CUSIP NO.:
REGISTERED OWNER: CEDE & CO.
PRINCIPAL AMOUNT:
The City of Moses Lake, Washington (the "City"), hereby acknowledges itself to owe and
for value received promises to pay to the Registered Owner identified above, or registered assigns,
on the Maturity Date identified above, the Principal Amount indicated above and to pay interest
thereon from June 5, 2006, or the most recent date to which interest has been paid or duly provided
for until payment of this bond at the Interest Rate set forth above, payable on February 1, 2007, and
semiannually thereafter on the first days of each succeeding August and February. Both principal
of and interest on this bond are payable in lawful money of the United States of America. The fiscal
agency of the State of Washington has been appointed by the City as the authenticating agent,
paying agent and registrar for the bonds of this issue (the "Registrar"). For so long as the bonds
of this issue are held in fully immobilized form, payments of principal and interest thereon shall be
made as provided in accordance with the operational arrangements of The Depository Trust
Company ("DTC") referred to in the Blanket Issuer Letter of Representations (the "Letter of
Representations") from the City to DTC.
The bonds of this issue are issued under and in accordance with the provisions of the
Constitution and applicable statutes of the State of Washington and Ordinance No. 2256 duly
passed by the City Council on May 23, 2006 (the "Bond Ordinance"). Capitalized terms used in this
bond have the meanings given such terms in the Bond Ordinance.
This bond shall not be valid or become obligatory for any purpose or be entitled to any
security or benefit under the Bond Ordinance until the Certificate of Authentication hereon shall
have been manually signed by or on behalf of the Registrar or its duly designated agent.
This bond is one of an authorized issue of bonds of like date, tenor, rate of interest and date
of maturity, except as to number and amount in the aggregate principal amount of $6,100,000 and
is issued pursuant to the Bond Ordinance for providing funds for the Project and costs of issuance.
The bonds of this issue are subject to optional and mandatory redemption prior to their
stated maturities as stated in the Bond Ordinance.
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The City hereby irrevocably covenants and agrees with the owner of this bond that it will
include in its annual budget and levy taxes annually, within and as a part of the tax levy permitted
to cities without a vote of the electorate, upon all the property subject to taxation in amounts
sufficient, together with other money legally available therefor, to pay the principal of and interest
on this bond as the same shall become due. The full faith, credit and resources of the City are
hereby irrevocably pledged for the annual levy and collection of such taxes and the prompt payment
of such principal and interest.
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ORDINANCE NO. 2256
PAGE 11 May 23, 2006
•
The City hereby designates the bonds of this issue as "qualified tax-exempt obligations" for
investment by financial institutions under Section 265(b) of the Code.
The pledge of tax levies for payment of principal of and interest on the bonds may be
discharged prior to maturity of the bonds by making provision for the payment thereof on the terms
and conditions set forth in the Bond Ordinance.
It is hereby certified that all acts, conditions and things required by the Constitution and
statutes of the State of Washington to exist, to have happened, been done and performed
precedent to and in the issuance of this bond have happened, been done and performed and that
the issuance of this bond and the bonds of this issue does not violate any constitutional, statutory
or other limitation upon the amount of bonded indebtedness that the City may incur.
IN WITNESS WHEREOF, the City of Moses Lake has caused this bond to be signed by the
manual or facsimile signature of its Mayor and attested by the manual or facsimile signature of its
Finance Director, and the seal of the City to be impressed or imprinted hereon, as of this 5th day
of June, 2006.
CITY OF MOSES LAKE, WASHINGTON
(SEAL)
Mayor
•Attest:
Finance Director
The Registrar's Certificate of Authentication on the Bonds shall be in substantially the
following form:
CERTIFICATE OF AUTHENTICATION
This bond is one of the bonds described in the within-mentioned Bond Ordinance and is one
of the Limited Tax General Obligation Bonds, 2006 of the City of Moses Lake, Washington, dated
June 5, 2006.
WASHINGTON STATE FISCAL AGENCY, as Registrar
ORDINANCE NO. 2256
PAGE 11 Mav 23. 2006
Section 7. Execution of Bonds. The Bonds shall be executed on behalf of the City with the manual
or facsimile signatures of the Mayor and Finance Director, and the seal of the City shall be
impressed, imprinted or otherwise reproduced thereon.
Only such Bonds as shall bear thereon a Certificate of Authentication in the form hereinbefore
recited, manually executed by the Registrar, shall be valid or obligatory for any purpose or entitled
to the benefits of this ordinance. Such Certificate of Authentication shall be conclusive evidence
that the Bonds so authenticated have been duly executed, authenticated and delivered hereunder
and are entitled to the benefits of this ordinance.
ORDINANCE NO. 2256
PAGE 12 May 23, 2006
In case either of the officers who shall have executed the Bonds shall cease to be an officer or
officers of the City before the Bonds so signed shall have been authenticated or delivered by the
Registrar, or issued by the City, such Bonds may nevertheless be authenticated, delivered and
issued and upon such authentication, delivery and issuance, shall be as binding upon the City as
though those who signed the same had continued to be such officers of the City. Any Bond may
be signed and attested on behalf of the City by such persons who at the date of the actual
execution of such Bond, are the proper officers of the City, although at the original date of such
Bond any such person shall not have been such officer of the City.
Section 8. Tax Covenants; Special Designation.
(a)Arbitrage Covenant. The City hereby covenants that it will not make any use of the
proceeds of sale of the Bonds or any other funds of the City which may be deemed to be
proceeds of such Bonds pursuant to Section 148 of the Code and applicable regulations
thereunder which will cause the Bonds to be "arbitrage bonds" within the meaning of said
section and regulations. The City will comply with the requirements of Section 148 of the
Code (or any successor provision thereof applicable to the Bonds) and the applicable
regulations thereunder throughout the term of the Bonds.
(b)Private Person Use Limitation for Bonds. The City covenants that for as long as the Bonds
are outstanding, it will not permit:
(1)More than 10% of the Net Proceeds of the Bonds to be allocated to any Private
Person Use; and
(2)More than 10% of the principal or interest payments on the Bonds in a Bond Year
to be directly or indirectly: (A) secured by any interest in property used or to be
used for any Private Person Use or secured by payments in respect of property
used or to be used for any Private Person Use, or (B) derived from payments
(whether or not made to the City) in respect of property, or borrowed money, used
or to be used for any Private Person Use.
The City further covenants that, if:
(3)More than five percent of the Net Proceeds of the Bonds are allocable to any Private
Person Use; and
ORDINANCE NO. 2256
PAGE 12 May 23, 2006
in subsection (ii) nereor or yrivate rersori use pdyIl lel ILUGJI.I iliuu 11I out.roc%,Livi k--ri
hereof that is in excess of the five percent limitations described in such
subsections (3) or (4) will be for a Private Person Use that is related to the state or
local governmental use of the projects financed or refinanced with Bond proceeds,
and (ii) any Private Person Use will not exceed the amount of Net Proceeds of the
Bonds used for the state or local governmental use portion of the projects to which
the Private Person Use of such portion of such projects relates. The City further
covenants that it will comply with any limitations on the use of the projects by other
than state and local governmental users that are necessary, in the opinion of its
bond counsel, to preserve the tax exemption of the interest on the Bonds. The
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ORDINANCE NO. 2256
PAGE 13 May 23, 2006
covenants of this section are specified solely to assure the continued exemption
from regular income taxation of the interest on the Bonds.
(c) Designation. The City hereby designates the Bonds as "qualified tax-exempt obligations"
for purchase by financial institutions pursuant to Section 265(b)(3) of the Code. The City
does not anticipate that it will issue more than $10,000,000 in qualified tax-exempt
obligations during 2006.
Section 9. Bond Fund and Provision for Tax Levy Payments. There is hereby created in the office
of the Finance Director a special fund to be drawn upon for the purpose of paying the principal of
and interest on the Bonds to be known as the "Limited Tax General Obligation Bond Redemption
Fund, 2006" (the "Bond Fund"). The taxes hereafter levied for the purpose of paying principal of
and interest on the Bonds and other funds to be used to pay the Bonds shall be deposited in the
Bond Fund no later than the date such funds are required for the payment of principal of and
interest on the Bonds. Money in the Bond Fund not needed to pay the interest or principal next
coming due may temporarily be deposited in such institutions or invested in such obligations as
may be lawful for the investment of City funds.
The City hereby irrevocably covenants and agrees for as long as any of the Bonds are outstanding
and unpaid that each year it will include in its budget and levy an ad valorem tax upon all the
property within the City subject to taxation in an amount that will be sufficient, together with all other
revenues and money of the City legally available for such purposes, to pay the principal of and
interest on the Bonds as the same shall become due. All of such taxes so collected and any other
money to be used for such purposes shall be paid into the Bond Fund.
The City hereby irrevocably pledges that the annual tax provided for herein to be levied for the
payment of such principal and interest shall be within and as a part of the tax levy permitted to cities
without a vote of the people, and that a sufficient portion of each annual levy to be levied and
collected by the City prior to the full payment of the principal of and interest on the Bonds will be
and is hereby irrevocably set aside, pledged and appropriated for the payment of the principal of
and interest on the Bonds. The full faith, credit and resources of the City are hereby irrevocably
pledged for the annual levy and collection of said taxes and for the prompt payment of the principal
of and interest on the Bonds as the same shall become due.
Section 10. Defeasance. In the event that the City, in order to effect the payment, retirement or
redemption of any Bond, sets aside in the Bond Fund or in another special account, cash or
noncallable Government Obligations, or any combination of cash and/or noncallable Government
Obligations, in amounts and maturities which, together with the known earned income therefrom,
are sufficient to redeem or pay and retire such Bond in accordance with its terms and to pay when
due the interest and redemption premium, if any, thereon, and such cash and/or noncallable
Government Obligations are irrevocably set aside and pledged for such purpose, then no further
payments need be made into the Bond Fund for the payment of the principal of and interest on such
Bond. The owner of a Bond so provided for shall cease to be entitled to any lien, benefit or security
of this ordinance except the right to receive payment of principal, premium, if any, and interest from
such special account, and such Bond shall be deemed to be not outstanding under this ordinance.
Within 60 days of any defeasance of Bonds the Registrar shall provide notice of defeasance of
Bonds to Registered Owners and to each party entitled to receive notice in accordance with
Section 13 of this ordinance.
Section 11. Sale of Bonds. The City hereby accepts the offer of Martin Nelson & Co., Inc., Seattle,
Washington, (the "Underwriter") to purchase the Bonds on the terms and conditions set forth in its
purchase contract dated as of this date and presented to the Council on this date, and in this
ordinance (the "Purchase Contract"). The Mayor and/or City Manager are hereby authorized to
ORDINANCE NO. 2256
PAGE 14 May 23, 2006
execute the Purchase Contract on behalf of the City. The proper City officials are hereby
authorized and directed to do everything necessary for the prompt issuance, execution and delivery
of the Bonds to the Underwriter and for the proper use and application of the proceeds of such sale.
The City hereby approves the Preliminary Official Statement presented herewith to the Council and
authorizes the Underwriter's distribution of the Preliminary Official Statement in connection with the
offering of the Bonds. Pursuant to Securities and Exchange Commission Rule 15c2-12 ("Rule
15c2-12"), the City hereby deems the Preliminary Official Statement as final as of its date except
for the omission of information dependent upon the pricing of the issue and the completion of the
Purchase Contract, such as offering prices, interest rates, selling compensation, aggregate principal
amount, principal amount per maturity, delivery dates, and other terms of the Bonds dependent on
the foregoing matters.
The City Manager and/or Finance Director are hereby authorized to review and approve on behalf
of the City the final official statement relative to the Bonds with such additions and changes as may
be deemed necessary or advisable to either of them.
Section 12.Bond Insurance.
(a)Acceptance of Bond Insurance Policy. In accordance with the offer of the Underwriter to
purchase the Bonds, the Council hereby approves the commitment of the Insurer to provide
a bond insurance policy guaranteeing the payment when due of principal of and interest on
the Bonds (the "Bond Insurance Policy"). The Council further authorizes and directs all
proper officers, agents, attorneys and employees of the City to execute a commitment letter
with the Insurer and to cooperate with the Insurer in preparing such additional agreements,
certificates, and other documentation on behalf of the City as shall be necessary or
advisable in providing for the Bond Insurance Policy.
(b)Payments Under the Bond Insurance Policy. In the event that, on the payment date of the
Bonds, the City or the Registrar determines that there will not be sufficient money available
in the Bond Fund to pay all principal of and interest on the Bonds due on such payment
date, the City or the Registrar shall immediately notify the Insurer or its designee on the
same day by telephone or telegraph, confirmed in writing by registered or certified mail, of
the amount of the deficiency. If the deficiency is made up in whole or in part, the Registrar
shall so notify the Insurer or its designee.
In addition, if the Registrar has notice that any Bondholder has been required to disgorge
payments of principal or interest on the Bonds to a trustee in bankruptcy or creditors or
others pursuant to a final judgment by a court of competent jurisdiction that such payment
constitutes an avoidable preference to such Bondholder within the meaning of any
applicable bankruptcy laws, then the Registrar shall notify the Insurer or its designee of
such fact by telephone or telegraphic notice, confirmed in writing by registered or certified
mail.
The Registrar is hereby irrevocably designated, appointed, directed and authorized to act
as attorney-in-fact for Bondholders as follows:
•
(1) If and to the extent there is a deficiency in amounts required to pay interest on the
Bonds, the Registrar shall (a) execute and deliver to U.S. Bank Trust National
Association, or its successors under the Bond Insurance Policy (the "Insurance
Paying Agent"), in form satisfactory to the Insurance Paying Agent, an instrument
appointing the Insurer as agent for such Bondholders in any legal proceeding
related to the payment of such interest and an assignment to the Insurer of the
claims for interest to which such deficiency relates and which are paid by the
•
ORDINANCE NO. 2256
PAGE 15 May 23, 2006
Insurer, (b) receive as designee of the respective Bondholders (and not as
Registrar) in accordance with the tenor of the Bond Insurance Policy payment from
the Insurance Paying Agent with respect to the claims for interest so assigned, and
(c) disburse the same to such respective Bondholders; and
(2) If and to the extent of a deficiency in amounts required to pay principal of any
Bonds, the Registrar shall (a) execute and deliver to the Insurance Paying Agent in
form satisfactory to the Insurance Paying Agent an instrument appointing the Insurer
as agent for such Bondholder in any legal proceeding relating to the payment of
such principal and an assignment to the Insurer of any of the Bonds surrendered to
the Insurance Paying Agent of so much of the principal amount thereof as has not
previously been paid or for which moneys are not held by the Registrar and
available for such payment (but such assignment shall be delivered only if payment
from the Insurance Paying Agent is received), (b) receive as designee of the
respective Bondholders (and not as Registrar) in accordance with the tenor of the
Bond Insurance Policy payment therefor from the Insurance Paying Agent, and (c)
disburse the same to such Bondholders.
Payments with respect to claims for interest on and principal of Bonds disbursed by the
Registrar from proceeds of the Bond Insurance Policy shall not be considered to discharge
the obligation of the City with respect to such Bonds, and the Insurer shall become the
owner of such unpaid interest and claims for the interest in accordance with the tenor of the
assignment made to it under the provisions of this subsection or otherwise.
•Irrespective of whether any such assignment is executed and delivered, the City and the
Registrar hereby agree for the benefit of the Insurer that:
(1)They recognize that to the extent the Insurer makes payments directly or indirectly
(as by paying through the Registrar), on account of principal of or interest on the
Bonds, the Insurer will be subrogated to the rights of such Bondholders to receive
the amount of such principal and interest for the City, with interest thereon as
provided and solely from the sources stated in this ordinance and the Bonds; and
(2)They will accordingly pay to the Insurer the amount of such principal and interest
(including principal and interest recovered under subparagraph (ii) of the first
paragraph of the Bond Insurance Policy, which principal and interest shall be
deemed past due and not to have been paid), with interest thereon as provided in
this ordinance and the Bonds, but only from the sources and in the manner provided
herein for the payment of principal of and interest on the Bond to Bondholders, and
will otherwise treat the Insurer as the owner of such rights to the amount of such
IVIFIVI (Al IV II ILGI VOL.
ORDINANCE NO. 2256
PAGE 15 May 23, 2006
Insurer, (b) receive as designee of the respective Bondholders (and not as
Registrar) in accordance with the tenor of the Bond Insurance Policy payment from
the Insurance Paying Agent with respect to the claims for interest so assigned, and
(c) disburse the same to such respective Bondholders; and
(2) If and to the extent of a deficiency in amounts reauired to na y nrinrinal of a nv
•
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(3) The Insurer shall receive notice of the resignation or removal of the Registrar and
the appointment of a successor, other than the designated state fiscal agent.
ORDINANCE NO. 2256
PAGE 16 May 23, 2006
The Insurer shall receive copies of all notices required to be delivered to
Bondholders and, on an annual basis (or as soon as available from the office of the
State Auditor) copies of the City's audited financial statements, and annual budget.
Any notice that is required to be given to a holder of Bonds or to the Registrar
pursuant to this ordinance shall also be provided to the Insurer. All notices required
to be given to the Insurer under this ordinance shall be in writing and shall be sent
by registered or certified mail addressed to MBIA Insurance Corporation, 113 King
Street, Armonk, New York 10504 Attention: Surveillance.
(6)The City agrees to reimburse the Insurer immediately and unconditionally upon
demand, to the extent permitted by law, for all reasonable expenses, including
reasonable attorneys' fees and expenses, incurred by the Insurer in connection with
(i) enforcement by the Insurer of the City's obligations, or the preservation or
defense of any rights of the Insurer, under this ordinance and any other document
executed in connection with the issuance of the Bonds, and (ii) any consent,
amendment, waiver or other action with respect to this ordinance or any related
document, whether or not granted or approved, together with interest on all such
expenses from and including the date incurred to the date of payment at Citibank's
Prime Rate plus 3% or the maximum interest rate permitted by law, whichever is
less. In addition, the Insurer reserves the right to charge a reasonable fee in
connection with its review of any such consent, amendment or waiver, whether or
not granted or approved.
(7)The City agrees not to use the Insurer's name in any published document including,
without limitation, a press release or presentation, announcement or forum without
the Insurer's prior consent; provided that the City may use the Insurer's name in any
general or particular factual statement to the effect that the Insurer insures certain
outstanding City bonds. In the event that the City is advised by counsel that it has
a legal obligation to disclose the Insurer's name in any press release, public
announcement or other published document, the City shall provide the Insurer with
at least three (3) business days' prior written notice of its intent to use the Insurer's
name together with a copy of the proposed use of the Insurer's name and of any
description of a transaction with the Insurer and shall obtain the Insurer's prior
consent as to the form and substance of the proposed use of the Insurer's name
and any such description. The foregoing shall not apply to any request for public
records duly received by the City pursuant to RCW Ch. 42.17, and the City shall not
be obligated to notify the Insurer of its intent to comply with any public disclosure
ORDINANCE NO. 2256
PAGE 16 May 23, 2006
(4)The Insurer shall receive copies of all notices required to be delivered to
Bondholders and, on an annual basis (or as soon as available from the office of the
State Auditor) copies of the City's audited financial statements, and annual budget.
(5)Any notice that is required to be given to a holder of Bonds or to the Registrar
pursuant to this ordinance shall also be provided to the Insurer. All notices required
of the owners of the Bonds as requ'ired-b-y -Sgclio-n-(b.01 by.in;e chall ha cent
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(4
(5)
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ORDINANCE NO. 2256
PAGE 17 May 23, 2006
(b) Financial Statements/Operating Data. The City agrees to provide or cause to be provided
to each NRMSIR and to the SID, if any, in each case as designated by the SEC in
accordance with the Rule, the following annual financial information and operating data for
the prior fiscal year (commencing in 2007 for the fiscal year ended December 31, 2006):
(1) Annual financial statements, which statements may or may not be audited, showing
ending fund balances for the City's general fund prepared in accordance with the
Budgeting Accounting and Reporting System prescribed by the Washington State
Auditor pursuant to RCW 43.09.200 (or any successor statute) and generally of the
type included in the official statement for the Bonds under the heading "Revenues
and Expenditures for the General Fund;"
The assessed valuation of taxable property in the City;
Ad valorem taxes due and percentage of taxes collected;
Property tax levy rate per $1,000 of assessed valuation; and
Outstanding general obligation debt of the City.
2-5 shall be required only to the extent that such information is not included in the
financial statements.
The information and data described above shall be provided on or before nine months after
the end of the City's fiscal year. The City's current fiscal year ends December 31. The City
may adjust such fiscal year by providing written notice of the change of fiscal year to each
then existing NRMSIR and the SID, if any. In lieu of providing such annual financial
information and operating data, the City may cross-reference to other documents provided
to the NRMSIR, the SID or to the SEC and, if such document is a final official statement
within the meaning of the Rule, available from the MSRB.
part of the annual financial information discussed above, the City shall
audited annual financial statement prepared in accordance with the
ng and Reporting System prescribed by the Washington State Auditor
09.200 (or any successor statute) when and if available to each then
the SID, if any.
ty agrees to provide or cause to be provided, in a timely manner,
each NRMSIR notice of the occurrence of any of the following
Bonds, if material:
Principal and interest payment delinquencies;
Non-payment related defaults;
Unscheduled draws on debt service reserves reflecting financial difficulties;
Unscheduled draws on credit enhancements reflecting financial difficulties;
Substitution of credit or liquidity providers, or their failure to perform;
Adverse tax opinions or events affecting the tax-exempt status of the Bonds;
Modifications to the rights of Bond owners;
Bond calls (optional, contingent or unscheduled Bond calls other than scheduled
sinking fund redemptions for which notice is given pursuant to Exchange Act
Release 34-23856);
Defeasances;
Release, substitution or sale of property securing repayment of the Bonds; and
Rating changes.
Items
annual
If not provided as
provide the City's
Budgeting Accounti
pursuant to RCW 43.
existing NRMSIR and
(c) Material Events. The CI
to the SID, if any, and to
events with respect to the
ORDINANCE NO. 2256
PAGE 18 May 23, 2006
Solely for purposes of disclosure, and not intending to modify this undertaking, the City
advises that no property secures payment of the Bonds.
(d)Notification Upon Failure to Provide Financial Data. The City agrees to provide or cause
to be provided, in a timely manner, to each NRMSIR and to the SID, if any, notice of its
failure to provide the annual financial information described in Subsection (b) above on or
prior to the date set forth in Subsection (b) above.
(e)Termination/Modification. The City's obligations to provide annual financial information and
notices of material events shall terminate upon the legal defeasance, prior redemption or
payment in full of all of the Bonds. Any provision of this section shall be null and void if the
City (1) obtains an opinion of nationally recognized bond counsel to the effect that the
portion of the Rule that requires that provision is invalid, has been repealed retroactively or
otherwise does not apply to the Bonds and (2) notifies each NRMSIR and the SID, if any,
of such opinion and the cancellation of this section.
The City may amend this section with an opinion of nationally recognized bond counsel in
accordance with the Rule. In the event of any amendment of this section, the City shall
describe such amendment in the next annual report, and shall include, a narrative
explanation of the reason for the amendment and its impact on the type (or in the case of
a change of accounting principles, on the presentation) of financial information or operating
data being presented by the City. In addition, if the amendment relates to the accounting
principles to be followed in preparing financial statements, (i) notice of such change shall
be given in the same manner as for a material event under Subsection (c), and (ii) the
annual report for the year in which the change is made shall present a comparison (in
narrative form and also, if feasible, in quantitative form) between the financial statements
as prepared on the basis of the new accounting principles and those prepared on the basis
of the former accounting principles.
(f)Bond Owner's Remedies Under This Section. The right of any bondowner or beneficial
owner of Bonds to enforce the provisions of this section shall be limited to a right to obtain
specific enforcement of the City's obligations under this section, and any failure by the City
to comply with the provisions of this undertaking shall not be an event of default with respect
to the Bonds. For purposes of this section, "beneficial owner" means any person who has
the power, directly or indirectly, to vote or consent with respect to, or to dispose of
ownership of, any Bonds, including persons holding Bonds through nominees or
depositories.
(g)DisciosureUSA. The City may elect to submit the information required by this Section 13
to be filed with the NRMSIRs and the SID, if any, directly to DisclosureUSA.org unless or
until the SEC withdraws its approval of this submission process.
Section 14. Project Fund and Application of Proceeds of Bonds. The City has previously
established a fund designated the "Capital Projects 2006 Fund" (the "Project Fund") into which the
proceeds of the Bonds (other than accrued interest, if any) shall be deposited. Money on hand in
the Project Fund shall be used to pay the costs of or reimbursement for the costs of the Project and
costs of issuance of the Bonds. The Finance Director may invest money in the Project Fund in
legal investments for City funds. Earnings on such investments shall accrue to the benefit of such
fund earning such interest. Any part of the proceeds of the Bonds remaining in the Project Fund
after all costs of the Project have been paid (including costs of issuance) may be used for any
capital purpose of the City or may be transferred to the Bond Fund.
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Adopted by the City Council and signed by its Mayor on May 23 2006.
Ronald C. Covey, Mayo
AP ED AS TO FORM:
mes A. Whi aker, City Attorney
ORDINANCE NO. 2256
PAGE 19 May 23, 2006
Section 15. Lost, Stolen or Destroyed Bonds. In case any Bond or Bonds shall be lost, stolen or
destroyed, the Registrar may execute and deliver a new Bond or Bonds of like date, number and
tenor to the Registered Owner thereof upon the Registered Owner's paying the expenses and
charges of the City in connection therewith and upon his/her filing with the City evidence
satisfactory to the City that such Bond was actually lost, stolen or destroyed and of his/her
ownership thereof, and upon furnishing the City with indemnity satisfactory to the City.
Section 16. Severability. If any one or more of the covenants or agreements provided in this
ordinance to be performed on the part of the City shall be declared by any court of competent
jurisdiction to be contrary to law, then such covenant or covenants, agreement or agreements, shall
be null and void and shall be deemed separable from the remaining covenants and agreements of
this ordinance and shall in no way affect the validity of the other provisions of this ordinance or of
the Bonds.
Section 17. Effective Date. The City Council declares that this ordinance shall take effect
immediately as provided by law upon one reading if two-thirds (2/3) of the entire City Council
present vote in favor of passage.
•ATTEST:
Ronald R. Cone, Finance Director
ORDINANCE NO. 2256
PAGE 19 May 23, 2006
•
Section 15. Lost, Stolen or Destroyed Bonds. In case any Bond or Bonds shall be lost, stolen or
destroyed, the Registrar may execute and deliver a new Bond or Bonds of like date, number and
tenor to the Registered Owner thereof upon the Registered Owner's paying the expenses and
charges of the City in connection therewith and upon his/her filing with the City evidence
satisfactory to the City that such Rnnri WPC art! iallw Inc++ I c.n.nn nr c.s+res. /L.
•
CERTIFICATE OF FINANCE DIRECTOR
I DO HEREBY CERTIFY that I am the duly qualified, appointed and acting Finance Director
of the City of Moses Lake, Washington (the "City"), and keeper of the records of the City Council;
and
I HEREBY CERTIFY:
1.That the attached ordinance is a true and correct copy of Ordinance No. 2256 of the
City (the "Ordinance"), as finally passed at a regular meeting of the City Council held on the 23rd
day of May, 2006 and duly recorded in my office.
2.That said meeting was duly convened and held in all respects in accordance with
law, and to the extent required by law, due and proper notice of such meeting was given; that a
quorum was present throughout the meeting and a legally sufficient number of members of the City
Council voted in the proper manner for the passage of the Ordinance; that all other requirements
and proceedings incident to the proper passage of the Ordinance have been duly fulfilled, carried
out and otherwise observed, and that I am authorized to execute this certificate.
IN WITNESS WHEREOF, I have hereunto set my hand this 23rd day of May, 2006.
Ronald R. Cone, Finance Director
CERTIFICATE OF FINANCE DIRECTOR
I DO HEREBY CERTIFY that I am the duly qualified, appointed and acting Finance Director
of the City of Moses Lake, Washington (the "City"), and keeper of the records of the City Council;
and