HomeMy WebLinkAbout3077 OrdinanceCITY OF PASCO, WASHINGTON
ORDINANCE NO. 3077
AN ORDINANCE of the City of Pasco, Washington,
relating to contracting indebtedness; providing for the
issuance of $1,550,000 par value of limited tax general
obligation bonds, 1995, of the City for general City
purposes to provide funds with which to pay part of the
cost of acquiring, constructing and equipping the City's
new sports stadium, including an adjoining parking lot
serving the stadium and the City's public soccer complex;
fixing the date, form, maturities, interest rates, terms
and covenants of the bonds; establishing an acquisition
fund; providing for bond insurance; and approving the
sale and providing for the delivery of the bonds to
Seattle-Northwest Securities Corporation of Seattle,
Washington.
WHEREAS, the City of Pasco, Washington (the "City"), is in
need of additional financing to pay part of the costs of acquiring,
constructing and equipping the City's new sports stadium, including
an adjoining parking lot serving the stadium and the City's public
soccer complex, the estimated additional cost of which is
$1,550,000, and the City does not have available sufficient funds
to pay those costs; and
WHEREAS, AMBAC Indemnity Corporation, a Wisconsin-domiciled
stock insurance company ("AMBAC Indemnity" or the "Bond Insurer"),
has made a commitment to issue an insurance policy (the "Municipal
Bond Insurance Policy") insuring the payment when due of the
principal of and interest on the Bonds as provided therein, and the
City Council deems that the purchase of the Municipal Bond
Insurance Policy is in the best interest of the City; NOW,
THEREFORE,
THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO ORDAIN
as follows:
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•
Section 1. Debt Capacity. The assessed valuation of the
taxable property within the City as ascertained by the last
preceding assessment for City purposes for the calendar year 1994
is $551,061,553, and the City has outstanding general indebtedness
evidenced by limited tax general obligation bonds, installment
contracts and financing leases in the principal amount of
$6,465,000 incurred within the limit of up to 1.5% of the value of
the taxable property within the City permitted for general
municipal purposes without a vote of the qualified voters therein
(which includes a $1,450,000 financing lease with Franklin County
for the City's share of the TRAC Project), unlimited tax general
obligation bonds in the principal amount of $4,650,000 incurred
within the limit of up to 2-1/2% of the value of the taxable
property within the City for capital purposes only, and no
unlimited tax general obligation bonds within the additional limits
for parks and open space and utility purposes issued pursuant to a
vote of the qualified voters of the City, and the amount of
indebtedness for which bonds are authorized herein to be issued is
$1,550,000.
Section 2. Authorization of Bonds. The City shall borrow
money on the credit of the City and issue negotiable limited tax
general obligation bonds evidencing that indebtedness in the total
amount of $1,550,000 for general City purposes to provide the funds
to pay part of the cost of acquiring, constructing and equipping
the new sports stadium, including an adjoining parking lot serving
the stadium and the City's public soccer complex (the "Project"),
and to pay the costs of issuance and sale of the bonds (the "costs
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of issuance"). The general indebtedness to be incurred shall be
within the limit of up to 1.5% of the value of the taxable property
within the City permitted for general municipal purposes without a
vote of the qualified voters therein.
Section 3. Description of Bonds. The bonds (the "Bonds")
shall be named Limited Tax General Obligation Bonds, 1995; shall be
dated April 1, 1995; shall be in the denomination of $5,000 or any
integral multiple thereof within a single maturity; shall be
numbered separately in the manner and with any additional
designation as the Bond Registrar (collectively, the fiscal
agencies of the State of Washington located in Seattle, Washington,
and New York, New York) deems necessary for purposes of
identification; shall bear interest at the rates set forth below
(computed on the basis of a 360-day year of twelve 30-day months),
payable on October 1, 1995, and semiannually thereafter on each
succeeding April 1 and October 1; and shall mature on April 1 in
years and amounts and bear interest at the rates per annum as
follows:
Maturity
Years Amounts
Interest
Rates
1996 $ 45,000 4.60%
1997 50,000 4.80
1998 50,000 4.90
1999 50,000 5.00
2000 55,000 5.10
2001 55,000 5.20
2002 60,000 5.30
2003 65,000 5.35
2004 65,000 5.40
2005 70,000 5.40
2006 75,000 5.45
2007 80,000 5.55
2008 85,000 5.65
2009 90,000 5.75
** ** **
2015 655,000 6.10
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Section 4. Registration and Transfer of Bonds. The Bonds
shall be issued only in registered form as to both principal and
interest and shall be recorded on books or records maintained by
the Bond Registrar (the "Bond Register"). The Bond Register shall
contain the name and mailing address of the owner of each Bond and
the principal amount and number of each of the Bonds held by each
owner.
Bonds surrendered to the Bond Registrar may be exchanged for
Bonds in any authorized denomination of an equal aggregate
principal amount and of the same series, interest rate and
maturity. Bonds may be transferred only if endorsed in the manner
provided thereon and surrendered to the Bond Registrar. Any
exchange or transfer shall be without cost to the owner or
transferee. The Bond Registrar shall not be obligated to exchange
or transfer any Bond during the 15 days preceding any principal
payment or redemption date.
Section 5. Payment of Bonds. 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 paid by checks or
drafts of the Bond Registrar mailed on the interest payment date to
the registered owners at the addresses appearing on the Bond
Register on the 15th day of the month preceding the interest
payment date. Principal of the Bonds shall be payable upon
presentation and surrender of the Bonds by the registered owners at
either of the principal offices of the Bond Registrar at the option
of the owners.
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Section 6. Optional Redemption and Open Market Purchase of
Bonds. Bonds maturing in the years 1995 through 2005, inclusive,
shall be issued without the right or option of the City to redeem
them prior to their stated maturity dates. The City reserves the
right and option to redeem Bonds maturing on or after April 1,
2006, prior to their stated maturity dates, at any time on or after
April 1, 2005, in whole, or in part within one or more maturities
selected by the City (and by lot within a maturity in such manner
as the Bond Registrar shall determine), at par plus accrued
interest to the date fixed for redemption.
Bonds maturing in 2015 are Term Bonds and, if not redeemed
under the optional redemption provisions set forth above or
purchased in the open market under the provisions set forth below,
shall be called for redemption by lot (in such manner as the Bond
Registrar shall determine) at par plus accrued interest on April 1
in years and amounts as follows:
Mandatory Mandatory
Redemption Redemption
Years Amounts
2010 $ 95,000
2011 100,000
2012 105,000
2013 110,000
2014 120,000
2015 (maturity) 125,000
If the City shall redeem Term Bonds under the optional
redemption provisions set forth above or purchase Term Bonds in the
open market as set forth below, the par amount of the Term Bonds so
redeemed or purchased (irrespective of their actual redemption or
purchase prices) shall be credited against one or more scheduled
mandatory redemption amounts for those Term Bonds (as allocated by
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the City) beginning not earlier than 60 days after the date of the
optional redemption or purchase, and the City shall promptly notify
the Bond Registrar in writing of the manner in which the credit for
the Term Bonds so redeemed or purchased has been allocated.
Portions of the principal amount of any Bond, in installments
of $5,000 or any integral multiple thereof, may be redeemed. If
less than all of the principal amount of any Bond is redeemed, upon
surrender of that Bond at either of the principal offices of the
Bond Registrar, there shall be issued to the registered owner,
without charge therefor, a new Bond (or Bonds, at the option of the
registered owner) of the same maturity and interest rate in any of
the denominations authorized by this ordinance in the aggregate
principal amount remaining unredeemed.
The City further reserves the right and option to purchase any
or all of the Bonds in the open market at any time at any price
deemed reasonable by the City plus accrued interest to the date of
purchase.
All Bonds purchased or redeemed under this section shall be
canceled.
Section 7. Notice of Redemption. The City shall cause notice
of any intended redemption of Bonds to be given not less than
30 nor more than 60 days prior to the date fixed for redemption by
first-class mail, postage prepaid, to the registered owner of any
Bond to be redeemed at the address appearing on the Bond Register
at the time the Bond Registrar prepares the notice, and the
requirements of this sentence shall be deemed to have been
fulfilled when notice has been mailed as so provided, whether or
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not it is actually received by the owner of any Bond. Interest on
Bonds called for redemption shall cease to accrue on the date fixed
for redemption unless the Bond or Bonds called are not redeemed
when presented pursuant to the call. In addition, the redemption
notice shall be mailed within the same period, postage prepaid, to
Moody's Investors Service, Inc., and Standard & Poor's Ratings
Group at their offices in New York, New York, or their successors,
to Seattle-Northwest Securities Corporation at its principal office
in Seattle, Washington, or its successor, the Bond Insurer at its
principal office in New York, New York, or its successor, and to
such other persons and with such additional information as the City
Finance qDirector shall determine, but these additional mailings
shall not be a condition precedent to the redemption of Bonds.
Section 8. Failure to Redeem Bonds. If any Bond is not
redeemed when properly presented at its maturity or call date, the
City shall be obligated to pay interest on that Bond at the same
rate provided in the Bond from and after its maturity or call date
until that Bond, both principal and interest, is paid in full or
until sufficient money for its payment in full is on deposit in the
bond redemption fund hereinafter created and the Bond has been
called for payment by giving notice of that call to the registered
owner of each of those unpaid Bonds.
Section 9. Pledge of Taxes. For as long as any of the Bonds
are outstanding, the City irrevocably pledges to include in its
budget and levy taxes annually within the constitutional and
statutory tax limitations provided by law without a vote of the
electors of the City on all of the taxable property within the City
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in an amount sufficient, together with other money legally
available and to be used therefor, to pay when due the principal of
and interest on the Bonds, and the full faith, credit and resources
of the City are pledged irrevocably for the annual levy and
collection of those taxes and the prompt payment of that principal
and interest.
Section 10. Form and Execution of Bonds. The Bonds shall be
printed or lithographed on good bond paper in a form consistent
with the provisions of this ordinance and state law and shall be
signed by the Mayor and City Clerk, either or both of whose
signatures may be manual or in facsimile, and the seal of the City
or a facsimile reproduction thereof shall be impressed or printed
thereon.
Only Bonds bearing a Certificate of Authentication in the
following form, manually signed by the Bond Registrar, shall be
valid or obligatory for any purpose or entitled to the benefits of
this ordinance:
CERTIFICATE OF AUTHENTICATION
This Bond is one of the fully registered City of
Pasco, Washington, Limited Tax General Obligation Bonds,
1995, described in the Bond Ordinance.
WASHINGTON STATE FISCAL AGENCY
Bond Registrar
By
Authorized Signer
The authorized signing of a Certificate of Authentication shall be
conclusive evidence that the Bonds so authenticated have been duly
executed, authenticated and delivered and are entitled to the
benefits of this ordinance.
If any officer whose facsimile signature appears on the Bonds
ceases to be an officer of the City authorized to sign bonds before
the Bonds bearing his or her facsimile signature are authenticated
or delivered by the Bond Registrar or issued by the City, those
Bonds nevertheless may be authenticated, delivered and issued and,
when authenticated, issued and delivered, shall be as binding on
the City as though that person had continued to be an officer of
the City authorized to sign bonds. Any Bond also may be signed on
behalf of the City by any person who, on the actual date of signing
of the Bond, is an officer of the City authorized to sign bonds,
although he or she did not hold the required office on the date of
issuance of the Bonds.
Section 11. Bond Registrar. The Bond Registrar shall keep,
or cause to be kept, at its principal corporate trust office,
sufficient books for the registration and transfer of the Bonds,
which shall be open to inspection by the City at all times. The
Bond Registrar is authorized, on behalf of the City, to
authenticate and deliver Bonds transferred or exchanged in
accordance with the provisions of the Bonds and this ordinance, to
serve as the City's paying agent for the Bonds and to carry out all
of the Bond Registrar's powers and duties under this ordinance and
City Ordinance No. 2838 establishing a system of registration for
the City's bonds and obligations.
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The Bond Registrar shall be responsible for its
representations contained in the Bond Registrar's Certificate of
Authentication on the Bonds. The Bond Registrar may become the
owner of Bonds with the same rights it would have if it were not
the Bond Registrar and, to the extent permitted by law, may act as
depository for and permit any of its officers or directors to act
as members of, or in any other capacity with respect to, any
committee formed to protect the rights of Bond owners.
Section 12. Preservation of Tax Exemption for Interest on
Bonds. The City covenants that it will take all actions necessary
to prevent interest on the Bonds from being included in gross
income for federal income tax purposes, and it will neither take
any action nor make or permit any use of proceeds of the Bonds or
other funds of the City treated as proceeds of the Bonds at any
time during the term of the Bonds which will cause interest on the
Bonds to be included in gross income for federal income tax
purposes. The City also covenants that it will, to the extent the
arbitrage rebate requirement of Section 148 of the Internal Revenue
Code of 1986, as amended (the "Code"), is applicable to the Bonds,
'take all actions necessary to comply (or to be treated as having
complied) with that requirement in connection with the Bonds,
including the calculation and payment of any penalties that the
City has elected to pay as an alternative to calculating rebatable
arbitrage, and the payment of any other penalties if required under
Section 148 of the Code to prevent interest on the Bonds from being
included in gross income for federal income tax purposes. The City
certifies that it has not been notified of any listing or proposed
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listing by the Internal Revenue Service to the effect that it is a
bond issuer whose arbitrage certifications may not be relied upon.
Section 13. Designation of Bonds as "Oualified Tax-Exempt
Obligations." The City has determined and certifies that (a) the
Bonds are not "private activity bonds" within the meaning of
Section 141 of the Code; (b) the reasonably anticipated amount of
tax-exempt obligations (other than private activity bonds) which
the City and any entity subordinate to the City (including any
entity which the City controls, which derives its authority to
issue tax-exempt obligations from the City or which issues tax-
exempt obligations on behalf of the City) will issue during the
calendar year in which the Bonds are issued will not exceed
$10,000,000; and (c) the amount of tax-exempt obligations,
including the Bonds, designated by the City as "qualified tax-
exempt obligations" for the purposes of Section 265(b)(3) of the
Code during the calendar year in which the Bonds are issued does
not exceed $10,000,000. The City designates the Bonds as
"qualified tax-exempt obligations" for the purposes of
Section 265(b)(3) of the Code.
Section 14. Bonds Negotiable. The Bonds shall be negotiable
instruments to the extent provided by RCW 62A.8-102 and 62A.8-105.
Section 15. Refunding or Defeasance of the Bonds. The City
may issue refunding bonds pursuant to the laws of the State of
Washington or use money available from any other lawful source to
pay when due the principal of and interest on the Bonds, or any
portion thereof included in a refunding or defeasance plan, and to
redeem and retire, refund or defease all such then-outstanding
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Bonds (hereinafter collectively called the "defeased Bonds") and to
pay the costs of the refunding or defeasance. If money and/or
"government obligations" (as defined in Chapter 39.53 RCW, as now
or hereafter amended) or other Permitted Investments (as defined in
Exhibit A of this ordinance) maturing at a time or times and
bearing interest in amounts (together with money, if necessary)
sufficient to redeem and retire, refund or defease the defeased
Bonds in accordance with their terms are set aside in a special
trust fund or escrow account irrevocably pledged to that
redemption, retirement or defeasance of defeased Bonds (hereinafter
called the "trust account"), then all right and interest of the
owners of the defeased Bonds in the covenants of this ordinance and
in the funds and accounts obligated to the payment of the def eased
Bonds shall cease and become void. The owners of defeased Bonds
shall have the right to receive payment of the principal of and
interest on the defeased Bonds from the trust account. The
defeased Bonds shall be deemed no longer outstanding, and the City
may apply any money in any other fund or account established for
the payment or redemption of the defeased Bonds to any lawful
purposes as it shall determine.
Notwithstanding anything in this section to the contrary, if
the principal of and/or interest due on the Bonds is paid by the
Bond Insurer pursuant to the Municipal Bond Insurance Policy, the
Bonds shall be treated as remaining outstanding for all purposes
and shall not be considered paid the City, and the covenants,
agreements and other obligations of the City to the registered
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owners of the Bonds shall continue to exist, and the Bond Insurer
shall be subrogated to the rights of the registered owners.
Section 16. Bond Fund and Deposit of Bond Proceeds. There is
created and established in the office of the City Finance Director
a special fund designated as the Limited Tax General Obligation
Bond Fund, 1995 (the "Bond Fund"). Accrued interest on the Bonds,
if any, received from the sale and delivery of the Bonds shall be
paid into the Bond Fund. There has previously been created and
established in the office of the City Finance Director a special
fund designated as the Stadium and Convention Center Fund (the
"Stadium Fund"). The principal proceeds, and premium, if any,
received from the sale and delivery of the Bonds shall be paid into
the Stadium Fund and used for the purposes specified in Section 2
of this ordinance. Until needed to pay the costs of the Project
and costs of issuance of the Bonds, the City may invest principal
proceeds temporarily in any legal investment, and the investment
earnings may be retained in the Stadium Fund and be spent for the
purposes of that fund. All taxes collected for and allocated to
the payment of the principal of and interest on the Bonds shall be
deposited in the Bond Fund.
Section 17. Approval of Bond Purchase Contract. Seattle-
Northwest Securities Corporation of Seattle, Washington, has
presented a purchase contract (the "Bond Purchase Contract") to the
City offering to purchase the Bonds under the terms and conditions
provided in the Bond Purchase Contract, which written Bond Purchase
Contract is on file with the City Clerk and is incorporated herein
by this reference. The City Council finds that entering into the
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Bond Purchase Contract is in the City's best interest and therefore
accepts the offer contained therein and authorizes its execution by
City officials.
The Bonds will be printed at City expense and will be
delivered to the purchaser in accordance with the Bond Purchase
Contract, with the approving legal opinion of Foster Pepper &
Shefelman, municipal bond counsel of Seattle, Washington, regarding
the Bonds printed on each Bond. Bond counsel shall not be required
to review and shall express no opinion concerning the completeness
or accuracy of any official statement, offering circular or other
sales material issued or used in connection with the Bonds, and
bond counsel's opinion shall so state.
The proper City officials are authorized and directed to do
everything necessary for the prompt delivery of the Bonds to the
purchaser and for the proper application and use of the proceeds of
the sale thereof.
Section 18. Preliminary Official Statement Deemed Final. The
City Council has been provided with copies of a preliminary
official statement dated March 20, 1995 (the "Preliminary Official
Statement"), prepared in connection with the sale of the Bonds.
For the sole purpose of the Bond purchaser's compliance with
Securities and Exchange Commission Rule 15c2-12(b)(1), the City
"deems final" that Preliminary Official Statement as of its date,
except for the omission of information as to offering prices,
interest rates, selling compensation, aggregate principal amount,
principal amount per maturity, maturity dates, options of
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redemption, delivery dates, ratings and other terms of the Bonds
dependent on such matters.
Section 19. Temporary Bonds. Pending the printing, execution
and delivery to the purchaser of definitive Bonds, the City may
cause to be executed and delivered to the purchaser a single
temporary Bond for each series in the total principal amount of the
Bonds. The temporary Bonds shall bear the same date of issuance,
interest rates, principal payment dates and terms and covenants as
the definitive Bonds, shall be issued as fully registered Bonds in
the name of the purchaser, and otherwise shall be in a form
acceptable to the purchaser. The temporary Bonds shall be
exchanged for definitive Bonds as soon as they are printed,
executed and available for delivery.
Section 20. Bond Insurance. The City is authorized to
purchase from the Bond Insurer the Municipal Bond Insurance Policy
insuring the prompt payment of the principal of and interest on the
Bonds and agrees to the conditions for obtaining that policy,
including the payment of the premium therefor. Any notice required
to be given to the Bond Insurer shall be sent by certified or
registered mail to AMBAC Indemnity Corporation, One State Street
Plaza, New York, New York 10004.
While the Municipal Bond Insurance Policy is in effect, the
City or the Bond Registrar shall furnish to the Bond Insurer:
(a) As soon as practicable after the filing
thereof, copies of any financial statements, audits and
annual reports of the City;
(b) copies of any notices given to the registered
owners of the Bonds, including, without limitation,
notices of any redemption of or defeasance of Bonds, and
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any certificate rendered pursuant to this ordinance
relating to the security for the Bonds; and
(c) such additional information the Bond Insurer
may reasonably request.
The Bond Registrar shall notify the Bond Insurer of any
failure of the City to provide relevant notices and certificates.
The City will permit the Bond Insurer to discuss the affairs,
finances and accounts of the City or any information the Bond
Insurer may reasonably request regarding the security for the Bonds
with appropriate officers of the City. The Bond Registrar and the
City will permit the Bond Insurer to have access to and make copies
of all books and records relating to the Bonds at any reasonable
time.
The Bond Insurer shall have the right to direct an accounting
at the City's expense, and the City's failure to comply with such
direction within 30 days after receipt of written notice of the
direction from the Bond Insurer shall be deemed a default hereunder
unless compliance cannot occur within such period. In that event
and only if an extension would not materially adversely affect the
interest of any registered owner of the Bonds, that 30-day period
will be extended so long as compliance is begun within that period
and diligently pursued.
Section 21. Payment Procedures Under Bond Insurance. The
Bond Insurer requires that the following sections be included in
this ordinance:
"(a) At least one (1) day prior to all Interest
Payment Dates the Trustee or Paying Agent [the Bond
Registrar], if any, will determine whether there will be
sufficient funds in the Funds and Accounts to pay the
principal of or interest on the Bonds on such Interest
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Payment Date. If the Trustee or Paying Agent, if any,
determines that there will be insufficient funds in such
Funds or Accounts, the Trustee or Paying Agent, if any,
shall so notify AMBAC Indemnity. Such notice shall
specify the amount of the anticipated deficiency, the
Bonds to which such deficiency is applicable and whether
such Bonds will be deficient as to principal or interest,
or both. If the Trustee or Paying Agent, if any, has not
so notified AMBAC Indemnity at least one (1) day prior to
an Interest Payment Date, AMBAC Indemnity will make
payments of principal or interest due on the Bonds on or
before the first (1st) day next following the date on
which AMBAC Indemnity shall have received notice of
nonpayment from the Trustee or Paying Agent, if any.
"(b) the Trustee or Paying Agent, if any, shall,
after giving notice to AMBAC Indemnity as provided in (a)
above, make available to AMBAC Indemnity and, at AMBAC
Indemnity's direction, to the United States Trust Company
of New York, as insurance trustee for AMBAC Indemnity or
any successor insurance trustee (the "Insurance
Trustee"), the registration books of the Issuer
maintained by the Trustee or Paying Agent, if any, and
all records relating to the Funds and Accounts maintained
under this ordinance.
"(c) the Trustee or Paying Agent, if any, shall
provide AMBAC Indemnity and the Insurance Trustee with a
list of registered owners of Bonds entitled to receive
principal or interest payments from AMBAC Indemnity under
the terms of the Municipal Bond Insurance Policy, and
shall make arrangements with the Insurance Trustee (i) to
mail checks or drafts to the registered owners of Bonds
entitled to receive full or partial interest payments
from AMBAC Indemnity and (11) to pay principal upon Bonds
surrendered to the Insurance Trustee by the registered
owners of Bonds entitled to receive full or partial
principal payments from AMBAC Indemnity.
"(d) the Trustee or Paying Agent, if any, shall, at
the time it provides notice to AMBAC Indemnity pursuant
to (a) above, notify registered owners of Bonds entitled
to receive the payment of principal or interest thereon
from AMBAC Indemnity (1) as to the fact of such
entitlement, (ii) that AMBAC Indemnity will remit to them
all or a part of the interest payments next coming due
upon proof of Bondholder entitlement to interest payments
and delivery to the Insurance Trustee, in form
satisfactory to the Insurance Trustee, of an appropriate
assignment of the registered owner's right to payment,
(iii) that should they be entitled to receive full
payment of principal from AMBAC Indemnity, they must
surrender their Bonds (along with an appropriate
instrument of assignment in form satisfactory to the
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Insurance Trustee to permit ownership of such Bonds to be
registered in the name of AMBAC Indemnity) for payment to
the Insurance Trustee, and not the Trustee or Paying
Agent, if any, and (iv) that should they be entitled to
receive partial payment of principal from AMBAC
Indemnity, they must first surrender their Bonds for
payment thereon first to the Trustee or Paying Agent, if
any, who shall note on such Bonds the portion of the
principal paid by the Trustee or Paying Agent, if any,
and the, along with an appropriate instrument of
assignment in form satisfactory to the Insurance Trustee,
to the Insurance Trustee, which will then pay the unpaid
portion of principal.
"(e) in the event that the Trustee or Paying Agent,
if any, has notice that any payment of principal of or
interest on a Bond which has become Due for Payment and
which is made to a Bondholder by or on behalf of the
Issuer has been deemed a preferential transfer and
theretofore recovered from its registered owner pursuant
to the United States Bankruptcy Code by a trustee in
bankruptcy in accordance with the final, nonappealable
order of a court having competent jurisdiction, the
Trustee or Paying Agent, if any, shall, at the time AMBAC
Indemnity is notified pursuant to (a) above, notify all
registered owners that in the event that any registered
owner's payment is so recovered, such registered owner
will be entitled to payment from AMBAC Indemnity to the
extent of such recovery if sufficient funds are not
otherwise available, and the Trustee or Paying Agent, if
any, shall furnish to AMBAC Indemnity its records
evidencing the payments of principal of and interest on
the Bonds which have been made by the Trustee or Paying
Agent, if any, and subsequently recovered from registered
owners and the dates on which such payments were made.
"(f) in addition to those rights granted AMBAC
Indemnity under this ordinance, AMBAC Indemnity shall, to
the extent it makes payment of principal of or interest
on Bonds, become subrogated to the rights of the
recipients of such payments in accordance with the terms
of the Municipal Bond Insurance Policy, and to evidence
such subrogation (1) in the case of subrogation as to
claims for past due interest, the Trustee or Paying
Agent, if any, shall note AMBAC Indemnity's rights as
subrogee on the registration books of the Issuer
maintained by the Trustee or Paying Agent, if any, upon
receipt from AMBAC Indemnity of proof of the payment of
interest thereon to the registered owners of the Bonds,
and (ii) in the case of subrogation as to claims for past
due principal, the Trustee or Paying Agent, if any, shall
note AMBAC Indemnity's rights as subrogee on the
registration books of the Issuer maintained by the
Trustee or Paying Agent, if any, upon surrender of the
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Bonds by the registered owners thereof together with the
proof of the payment of principal thereof."
Section 22. Parties Interested Herein. To the extent that
this ordinance confers upon or gives or grants to the Bond Insurer
any right, remedy or claim under or by reason of this ordinance,
the Bond Insurer is explicitly recognized as being a third-party
beneficiary hereunder and may enforce any such right, remedy or
claim conferred, given or granted hereunder. Nothing expressed or
implied in this ordinance is Intended or shall be construed to
confer upon, or to give or grant to, any person or entity, other
than the City, the Bond Insurer and the registered owners of the
Bonds, any right, remedy or claim under or by reason of this
ordinance or any covenant, condition or stipulation hereof, and all
covenants, stipulations, promises and agreements in this ordinance
contained by and on behalf of the City shall be for the sole and
exclusive benefit of the City, the Bond Insurer and the registered
owners of the Bonds.
Notwithstanding any other provision of this ordinance, the
City shall notify the Bond Insurer immediately if at any time there
are insufficient funds to make any payments of principal and/or
interest as required and immediately upon the occurrence of any
event of default hereunder.
Any provision of this ordinance expressly recognizing or
granting rights in or to the Bond Insurer may not be amended in any
manner which affects the rights of the Bond Insurer hereunder
without the prior written consent of the Bond Insurer. Unless
otherwise provided in this section, the Bond Insurer's consent
0144092 03
-19-
shall be required, in addition to Bond owner consent, when
required, for the following purposes: (i) execution and delivery
of any supplemental ordinance, and (ii) initiation or approval of
any other action which requires Bond owner consent. Anything in
this ordinance to the contrary notwithstanding, upon the occurrence
and continuance of an event of default, the Bond Insurer shall be
entitled to control and direct the enforcement of all rights and
remedies granted to the Bond owners for the benefit of the Bond
owners under this ordinance.
Any reorganization or liquidation plan with respect to the
City must be acceptable to the Bond Insurer. In the event of any
reorganization or liquidation, the Bond Insurer shall have the
right to vote on behalf of all bondholders who hold AMBAC
Indemnity-insured bonds absent a default by the Bond Insurer under
the applicable Municipal Bond Insurance Policy insuring such bonds.
Section 23. Permitted Investments. Permitted investments for
funds available for investment in the funds created by this
ordinance shall be as set forth in Exhibit A, attached hereto and
by this reference made a part hereof.
City Clerk
5-
Section 24. Effective Date of Ordinance. This ordinance
shall take effect and be in force from and after its passage and
five days following its publication as required by law.
PASSED by the City Council of the City of Pasco, Washington,
at a regular open public meeting thereof, this 27th day of March,
1995 and signed in authentication of its passage this cV7 1-CI day of
March, 1995.
Mayor
ATTEST:
APPROVED AS TO FORM:
0084173 01
-21-
EXHIBIT A
PERMITTED INVESTMENTS (MODIFIED AS OF JULY 19, 1993)
A AMBAC Indemnity will allow the following obligations to be used as Permitted
Investments for all purposes, including defeasance investments in refunding
escrow accounts
(AMBAC Indemnity does not give a premium credit for the investment of
accrued and/or capitalized interest )
(1) Cash (insured at all times by the Federal Deposit Insurance Corporation
or otherwise collateralized with obligations described in paragraph (2)
below), or
(2) Direct obligations of (including obligations issued or held in book entry
form on the books of) the Department of the Treasury of the United
States of America
B AMBAC Indemnity will allow the following Obligations to be used as Permitted
Investments for all purposes other than defeasance investments in refunding
escrow accounts
(1) obligations of any of the following federal agencies which obligations
represent the full faith and credit of the United States of America,
including
- Export-Import Bank
Farm Credit System Financial Assistance Corporation
Farmers Home Administration
General Services Administration
.n. U S Maritime Administration
Small Business Administration
Government National Mortgage Association (GNMA)
U S Department of Housing & Urban Development (PHA's)
Federal Housing Administration;
(2) senior debt obligations rated "AAA" by Standard & Poor's Corporation
(S&P) and "Aaa" by Moody's Investors Service, Inc. (Moody's) issued by
the Federal National Mortgage Association or the Federal Home Loan
Mortgage Corporation Senior debt obligations of other Government
Sponsored Agencies approved by AMBAC Indemnity,
(3) U S dollar denominated deposit accounts, federal funds and banker's
acceptances with domestic commercial banks which have a rating on
their short term certificates of deposit on the date of purchase of "A-1"
or "A-1 +" by S&P and "P-1" by Moody's and maturing no more than
360 days after the date of purchase (Ratings on holding companies are
not considered as the rating of the bank),
(4) commercial paper which is rated at the time of purchase in the single
highest classification, "A-1 +" by S&P and "P-1" by Moody's and which
matures not more than 270 days after the date of purchase,
(5) investments in a money market fund rated "AAAm" or "AAAm-G" or
better by S&P,
(6) Pre-refunded Municipal Obligations defined as follows Any bonds or
other obligations of any state of the United States of America or of any
agency, instrumentality or local governmental unit of any such state
which are not callable at the option of the obligor prior to maturity or as
to which irrevocable instructions have been given by the obligor to call
on the date specified in the notice, and
(A) which are rated, based on an irrevocable escrow account or
fund (the "escrow"), in the highest rating category of S&P and
Moody's or any successors thereto; or
(B) (i) which are fully secured as to principal and interest and
redemption premium, if any, by an escrow consisting only of cash
or obligations described in paragraph A(2) above, which escrow
may be applied only to the payment of such principal of and
interest and redemption premium, if any, on such bonds or other
obligations on the maturity date or dates thereof or the specified
redemption date or dates pursuant to such irrevocable
instructions, as appropriate, and (ii) which escrow is sufficient, as
verified by a nationally recognized independent certified public
accountant, to pay principal of and interest and redemption
premium, if any, on the bonds or other obligations described in
this paragraph on the maturity date or dates specified in the
irrevocable instructions referred to above, as appropriate, [Pre-
refunded Municipal Obligations meeting the requirements of
subsection (B) hereof may not be used as Permitted Investments
for annual appropriation lease transactions without the prior
written approval of S&P.]
(7) investment agreements approved in writing by AMBAC Indemnity
Corporation [supported by appropriate opinions of counsel] with notice
to S&P, and
(8) other forms of investments (Including repurchase agreements) approved
in writing by AMBAC with notice to S&P
C The value of the above investments shall be determined as follows
"Value", which shall be determined as of the end of each month, means that
the value of any investments shall be calculated as follows
a) as to investments the bid and asked prices of which are published on a
regular basis in The Wall Street Journal (or, if not there, then in The New
York Times) the average of the bid and asked prices for such
investments so published on or most recently prior to such time of
determination,
b) as to investments the bid and asked prices of which are not published on
a regular basis in The Wall Street Journal or The New York Times the
average bid price at such time of determination for such investments by
any two nationally recognized government securities dealers (selected by
the Trustee in its absolute discretion) at the time making a market in
such investments or the bid price published by a nationally recognized
pricing service,
c) as to certificates of deposit and bankers acceptances the face amount
thereof, plus accrued interest, and
d) as to any investment not specified above the value thereof established
by prior agreement between the Issuer, the Trustee and AMBAC
Indemnity Corporation
I, DANIEL L.
Washington, certify
a true and correct
27th day of March,
Book of the City.
DATED this
UNDERWOOD, City Clerk of the City of Pasco,
that the attached copy of Ordinance No. 3042 is
copy of the original ordinance passed on the
1995, as such ordinance appears on the Minute
, 1995. day of
DANIEL L. UNDERWOOD, City Clerk
0084173 01
E C F V
APR 1 8 11995
MANCE DEPT.
GERALD WALL , being duly sworn,
deposes and says, I am the Legal Clerk of the Tr-City Herald, a
daily newspaper That said newspaper is a legal newspaper and
has been approved as a legal newspaper by order of the superior
court in the county in which it is published and it is now and has
been for more than six months prior to the date of the publication
hereinafter referred to, published countinually as a daily newspa-
per in Benton County, Washington That the attached is a true
copy of a 4583—CITY OF FASCO, WASHINGT as it
was printed in the regular and entire issue of the Tr-City Herald
itself and not in a supplement thereof, 1 time(s),
commencing on 04 /CY:4 /9 5 , and ending on
04/09/95 , and that said newspaper was regulary
distributed to its subscribers during all of this period
SUBSCRIBED AND SWORN BEFORE ME THIS /3'
DAY OF
P 0 BOX 2608
PASCO WASHINGTON 99302 2608
PHONE (509) 582 1500
ADVEOT1111
INVOICE
SOLD TO PASCO, CITY OF LEGALS
P.O. BOX 29:7
PASCO WA 997;01
DATE 04 /0 9 /95, LEGAL NO #538
ACCOUNT NO 5n55()
DESCRIPTION #533—CITY OF FASCO , WASHING
TIMES 001 INCHES - 60
TO 40 1 b
NOTICE This is an invoice for legal advertising space Please pay from this invoice as no statement will be rendered
Please detach at perforation and return with payment
FFN ANT OF P UBLICATROfie
I "
COUNTY OF BENTON
SS
STATE OF WASHINGTON
CI! ' OF I 1SCO
ASHING roN
ORDINANCE NO 3077
AN ORDINANCE of the
City of Pasco Washington
relating to contracting in
debtedness providing for
the issuance of $1 550 000
par value of limited tax
general obligation bonds
1995 of the City for gen
eral City purposes to pro-
vide funds with which to
pay part of the cost of ac-
quiring constructing and
equipping the City s new
sports stadium including
an adjoining parking lot
serving the stadium and
the City s public soccer
complex fixing the date
form maturities interest
I rates terms and covenants t
of the bonds establishing
I an acquisition fund provid-
ing for bond insurance and
approving the sale and pro
viding for bond insurance
and approving the sale and
providing for the delivery of
the bonds to Seattle
Northwest Securities Cor
poration of Seattle Wash-
ington
A complete copy of Ord
nance No 3077 is
available at the City Clerk s
Office 525 North 3rd Ave-
nue For more information
call 545-3402
s Catherine D Seaman
Deputy City Clerk
#588 - 4/9/95
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otary public in and for the State o Wash-
ington, residing at R CFIL AND WA
COMMISSION EXPIRES 8-