1992-13441-Resolution No. 92-031 Recorded 4/22/1992REVIEWED
LE CSp(l. COUNSEL
BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON
A Resolution Authorizing Issuance and
Sale of Bond Anticipation Notes, 1992
Series C in the Principal Amount of
$1,000,000.00, and Related Matters.
92-13441
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0
RESOLUTION NO. 92 -031 fir- co
cp co
WHEREAS, the County conducted an election on November 5;"1991, at
which time the voters approved the issuance and sale of general
obligation bonds in an amount not to exceed $9,500,000.00 to finance
jail and related facilities (the "Public Improvements "); and
WHEREAS, Oregon Revised Statutes 287.522 through 287.526 (the
"Act ") authorize the County to borrow money and issue its notes for the
interim financing of the Public Improvements and to determine the
method and terms of sale of such notes; and
WHEREAS, Notes issued under the Act must mature not later than the
estimated completion date of the Public Improvements. The County
estimates that the Public Improvements will not be completed until at
least January 1, 1994; and
WHEREAS, Notes issued pursuant to the Act shall not exceed in the
aggregate the estimated unpaid cost of the Public Improvements, plus
costs of issuing the notes. The aggregate unpaid costs of the Public
Improvements to be financed with these notes, plus costs of issuing the
notes, exceeds $1,000,000.00; now, therefore,
BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES
COUNTY, OREGON, as follows:
Section 1. Notes Authorized. The Board authorizes the
issuance of its Bond Anticipation Notes, 1992 Series C (the "Notes "),
in an principal amount not to exceed $1,000,000.00, pursuant to the
Act. Note proceeds shall be used for interim financing of a portion of
the Public Improvements and paying the costs of issuing the Notes. The
Notes shall be dated with the date specified by the Director of
Administration and Personnel, shall mature not later than May 3, 1993,
and shall bear interest payable at maturity which shall not exceed a
net effective rate of seven percent (7.00 %) per annum.
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PAGE 1 - RESOLUTION NO. 92 -031 (4/22/92) 111
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Section 2. Security. The Notes are payable from the proceeds
of bonds to be sold pursuant to an approving vote of the electors of
the County held November 5, 1991, and any other funds that may be
available therefor.
Section 3. Note Purchase Contract. The Director of
Administration and Personnel or his designee (the "Director ") are
hereby authorized, on behalf of the County:
A. to establish the final terms of the Notes, including their
dates, interest and principal payment provisions, maturities, and
final principal amounts, subject to the limitations contained in
this section;
B. to enter into an agreement to sell the notes to a commercial
bank or other investor, and to establish the terms under which the
Notes will be sold; and
C. to establish the form of the Notes, to execute and deliver
the Notes, and to take any other action necessary to issue, sell
and deliver the Notes in accordance with this resolution and
order.
The Director shall report the results of the sale of the Notes to
the Board of County Commissioners of the County promptly.
Section 4. Form of Notes. The Notes shall be in substantially
the form attached hereto as Exhibit "A ". Notes may be printed or
typewritten, and may be issued as one or more temporary Notes, which
shall be exchangeable for definitive Notes when definitive Notes are
available.
Section 5. Execution. The Notes shall be executed on behalf
of the County with the manual signature of the Director of
Administration and Personnel.
Section 6. Bank Oualified. The County hereby designates the
Notes as "qualified tax - exempt obligations" pursuant to section
265(b)(3) of the Internal Revenue Code of 1986, as amended (the
"Code "). The County covenants not to so designate tax - exempt
obligations in the current calendar year in an aggregate amount of more
than $10,000,000.00. The County (and all subordinate entities of the
County, if any) does not reasonably expect to issue more than
$10,000,000.00 of tax - exempt obligations during calendar year 1992.
Section 7. Tax - Exempt Status. The County covenants not to
take any action or omit any action if the taking or omission would
cause interest paid on the Notes to be includable in gross income of
the Noteholders for federal income tax purposes (except for
environmental taxes on corporations). The County will not permit more
than ten percent (10.0 %) of the Public Improvements to be used for any
private business use. The Director of Administration and Personnel may
PAGE 2 - RESOLUTION NO. 92 -031 (4/22/92)
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enter into covenants on behalf of the County to protect the tax - exempt
status of the Notes.
Section 8. Rebate Exemption. The County has general taxing
powers. No portion of the Note proceeds will be used to finance
property which is used in the trade or business of nongovernments, or
is loaned to nongovernments. None of the Notes are "private activity
bonds" within the meaning of Section 141 of the Code. At least ninety -
five percent (95.0 %) of the net proceeds of the Notes will be used for
interim financing of improvements which will be owned and operated by
the County. The County (and all subordinate entities thereof, if any)
does not reasonably expect to issue tax - exempt obligations in calendar
year 1992 which have an aggregate face amount of more than
$5,000,000.00. Accordingly, under Section 148(f)(4)(c) of the Code, no
rebate to the United States is required to be paid in connection with
the Notes.
Section 9. Authority of Director of Administration and
Personnel. The Director of Administration and Personnel is hereby
authorized to enter into any agreements and to execute any documents or
certificates which may be required to issue, sell and deliver the Notes
in accordance with this resolution.
DATED this 1M_ day of Z41- I , 1992.
BOARD OF1COUNTY COMMISSIONERS
OF DESCH TES COUNTY, OREGON
Z /
ecording secretary
TOMI DROOP ommis ; ioner
NANCY
OP % C i GEN, Commis
K MAUDLIN, Chairman
PAGE 3 - RESOLUTION NO. 92 -031 (4/22/92)
oner
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EXHIBIT A
Form of Note
No. 1 $
Deschutes County
General Obligation
Bond Anticipation Note
1992 Series C
FOR VALUE RECEIVED, Deschutes, County, Oregon (the "County ")
acknowledges itself indebted and hereby promises to Pay, but solely from the sources
specified below, to the order of [UNDERWRITER], Portland, Oregon, the principal
amount of ONE MILLION DOLLARS ($1,000,000) upon presentation and surrender
hereof on the third day of May, 1993, or as indicated below, and to pay interest thereon
from the date hereof until maturity (or earlier redemption) at the rate of
PERCENT ( %) PER ANNUM computed on a
30 -day month, 360 -day year basis. Principal and interest are payable at the
in Portland, Oregon.
This Note shall mature on the earliest of the following dates: on a
business day on or before May 3, 1993, or 011 a business day within 60 days following
receipt by the County of the proceeds from the sale of its General Obligation Bonds.
This Note is issued pursuant to ORS 287.522 through ORS 287.526 and a
resolution of the County adopted , (the "Resolution "), which
authorize the County to borrow funds to pay the costs of construction of certain public
improvements. The Resolution states that the proceeds from the sale of the County's
General Obligation Bonds, and from any other funds available therefor, shall be used to
redeem the Note.
This Note is a "qualified tax- exempt obligation" pursuant to
Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the "Code ").
The County hereby certifies that all action necessary to authorize the
issuance of this Note has been duly taken, and that this Note does not exceed any
limitation on indebtedness contained in the laws of the State of Oregon.
Page 1 - Exhibit A (Form of Note)
8011 \DC SC19RC .92C \DES -R51
Apr11 20. 1992
0 / /cl — 063(44
IN WITNESS WHEREOF, the Board of Commissioners of Deschutes
County has caused this Note to be manually executed by its Director of Administration
and Personnel as of this day of , 1992.
Page 2 - Exhibit A (Form of Note)
Deschutes County
Director of Administration and Personnel
pp9 \OESDMTE.92C \DES -11$I
April 20, 1992