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1993-02222-Resolution No. 93-001 Recorded 1/7/1993. 4 F, E V �i D 9 3 - 0 21 2 C C IIJ N SE L BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY9 OREGON -- A Resolution Authorizing the Issuance and Sale of Limited Tax Improvement Bonds, Series 1993, in an Amount Not to Exceed $490,000.00, for the Purpose of Financing Local Improvements. RESOLUTION NO. 93-001 WHEREAS, the Board of County Commissioners of Deschutes County, Oregon finds that the County is authorized pursuant to the Constitution and laws of the State of Oregon to issue limited tax bonds to finance local improvements pursuant to ORS 223.235 and ORS 288.155; and WHEREAS, Board finds that it is desirable to issue limited tax bonds to finance local improvements in the County, to refund its outstanding notes, and to pay costs of issuance of issuing the limited tax bonds; now, therefore, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON, as follows: Section 1. Authorization. The County shall issue its Limited Tax Improvement Bonds, Series 1993 (the "Bonds") to finance local improvements in the County, to reimburse the County for prior expenditures to finance local improvements to refund its outstanding Limited Tax General Obligation Bond Anticipation Notes, 1992 Series B, and to pay costs if issuance of issuing the Bonds. The Bonds shall be issued in a principal amount of not more than $490,000.00, and shall be sold at a net true interest cost of not more than nine percent per annum. The Administrative Services Director or the Director's designee (the "Director") may, on behalf of the County: (a) participate in the preparation of, authorize the distribution of, and deem final the preliminary and final official statements and any other disclosure documents for the Bonds; (b) establish the final principal amount, maturity schedule, interest rates, redemption terms, payment terms and dates, and other terms of the Bonds, and the terms under which the Bonds are offered for sale; (c) publish notices of sale, or summaries, for the Bonds as required by law, and in substantially the form attached hereto as Exhibit "A," attached hereto and by this reference incorporated herein, with such changes as the Director may approve; 1 - RESOLUTION NO. 93-001 (1/6/93) W-q 00�.0 �F no , il� , Aj (d) issue, sell and deliver the Bonds to the successful bidder without further action by the Board of County Commissioners; (e) apply and purchase municipal bond insurance or other forms of credit enhancement for the Bonds, and execute and deliver related documents; and (f) take any other action in connection with the Bonds which the Director finds will be advantageous to the County. Section 2. Security. The County has assessed benefitted properties for the costs of local improvements, and has received applications to pay assessments in installments. The bonds shall be issued in an amount not greater than the unpaid balance of all such final assessments, including the amounts necessary to pay financing costs associated with the Bonds. Each assessment is exempt from the limitation provided in section 11b(1), Article XI of the Oregon Constitution, because each assessment either: constitutes an assessment for a "local improvement" within the meaning of section 11b(2)(d), Article XI of the Oregon Constitution; or, was levied prior to July 1, 1991. All installment assessment payments, delinquent payments and foreclosure proceeds shall be placed in the 1992 Series B Note Fund of the Bancroft Bond Redemption Fund and applied to the payment of principal and interest on the Bonds. In addition, the full faith and credit of the County are pledged to the successive owners of each of the Bonds for the punctual payment of such obligations, when due. Pursuant to ORS 223.235(4), the County shall levy annually, a direct ad valorem tax upon all of the taxable property within the County in an amount sufficient, with other available funds, to pay all principal of and interest on the Bonds which is due and payable in that year, provided that the amount of such tax shall not exceed the amount permitted under section 11b(l), Article XI of the Oregon Constitution. The County covenants with the owners of its Bonds to levy such a tax annually during each year that any of the Bonds or Bonds issued to refund them, are outstanding. The County may also apply other available funds to pay debt service on the Bonds. Section 3. Bond Book -Entry Only Form. The Bonds shall be initially issued in book - entry only form, with no physical Bonds being made available to Bondowners. The Director shall execute and deliver a letter of representations to The Depository Trust Company, New York, New York ("DTC") for the Bonds, in form and substance satisfactory to DTC. So long as the Bonds are in book -entry only form: (a) Ownership of the Bonds shall be recorded through entries on the books of banks and broker-dealer participants and correspondents that are related to entries on the DTC system. Each maturity of the Bonds shall be initially issued in the form of a global Bond for each maturity. Each global Bond shall be registered in the name of Cede & Co. as nominee of DTC as the owner of the Bond, and such global Bonds shall be lodged with DTC until early redemption or maturity of the Bond issue. 2 - RESOLUTION NO. 93-001 (1/6/93) W 4 11 _.0 �# "'o f1f - "I" iv -L (b) United states National Bank of Oregon or any successor paying agent appointed by the County (the "Paying Agent") shall remit payment for the maturing principal and interest on the Bonds to DTC as owner of the Bonds for distribution by the nominee to the beneficial owners by recorded entry on the books of DTC participants and correspondents. While the Bonds are in book -entry only form, the Bonds will be available in denominations of $5,000-00 or any integral multiple thereof. (c) In the event: (i) DTC determines not to continue to act as securities depository for the Bonds, or (ii) the County determines that DTC shall no longer so act; then the County will discontinue maintaining the Bonds in the book -entry only form with DTC. (d) Notwithstanding the provisions regarding exchange and transfer of Bonds set forth in this ordinance, while the Bonds are in book -entry only form they may not be transferred or exchanged on the registration books maintained by the Paying Agent except: (i) to any successor depository designated by the County as provided below; (ii) to any successor nominee designated by a depository; or (iii) if the County elects to discontinue maintaining the Bonds in book -entry only form, the County shall cause the Paying Agent to authenticate and deliver replacement physical Bonds in fully registered form in authorized denominations in the names of the beneficial owners or their nominees; thereafter the provisions set forth below, regarding registration, transfer and exchange of Bonds shall apply. (e) Upon the resignation of any institution acting as depository hereunder, or if the County determines that continuation of any institution in the role of depository is not in the best interests of the beneficial owners, the County shall attempt to identify another institution qualified to act as depository hereunder or shall discontinue maintaining the Bonds in book -entry only form by resolution or ordinance. If the County is unable to identify such successor depository prior to the effective date of the resignation, the County shall discontinue maintaining the Bonds in the book -entry only form as provided above. 3 - RESOLUTION NO. 93-001 (1/6/93) (f) With respect to Bonds registered in the registration books maintained by the Paying Agent in the name of the nominee of DTC, the County and the Paying Agent shall have no responsibility or obligation to any participant or correspondent of DTC or to any beneficial owner on behalf of which such participants or correspondents act as agent for the beneficial owner with respect to: (i) the accuracy of the records of DTC, the nominee or any participant or correspondent with respect to any beneficial owner's interest in the Bonds; (ii) the delivery to any participant or correspondent or any other person of any notice with respect to the Bonds, including any notice of prepayment; (iii) the selection by DTC of the beneficial interest in Bonds to be redeemed prior to maturity; or (iv) the payment to any participant, correspondent, or any other person other than the registered owner of the Bonds as shown in the registration books maintained by the Paying Agent, of any amount with respect to principal or interest on the Bonds. (g) So long as the Bonds are in book -entry only form, the Paying Agent will give any notice of redemption or any other notices required to be given to registered owners of Bonds only to DTC or its nominee registered as the registered owner thereof. Any failure of DTC to advise any of its participants, or of any participant to notify the beneficial owner, of any such notice and its content or effect will not affect the validity of the redemption of the Bonds called for redemption or of any other action premised on such notice. (h) The County shall pay or cause to be paid all principal and interest on the Bonds only to or upon the order of the owner, as shown in the registration books maintained by the Paying Agent, or their respective attorneys duly authorized in writing, and all such payments shall be valid and effective to fully satisfy and discharge the County's obligation with respect to payment thereof to the extent of the sum or sums so paid. (i) Upon delivery by DTC to the County and to the owner of written notice to the effect that DTC has determined to substitute a new nominee in place of the nominee, then the word "nominee" in this resolution shall refer to such new nominee of DTC, and upon receipt of such notice, the County shall promptly deliver a copy thereof to the Paying Agent. DTC shall tender the Bonds it holds to the Paying Agent for reregistration. 4 - RESOLUTION NO. 93-001 (1/6/93) 0) The provisions of this Section 3 may be modified without the consent of the beneficial owners to conform this Section to the standard practices of DTC for Bonds issued in book -entry form. Section 4. Notice of Redemption of Bonds. (a) Notice of Redemption (DTC). So long as the Bonds are in book -entry only form, the Paying Agent shall notify DTC of any early redemption not less than 30 days prior to the date fixed for redemption, and shall provide such information in connection therewith as required by a letter of representations submitted to DTC in connection with the issuance of the Bonds. (b) Notice of Redemption (No DTC). During any period in which the bonds are not in book -entry only form, unless waived by any Owner of the Bonds to be redeemed, official notice of any redemption of Bonds shall be given by the Paying Agent on behalf of the County by mailing a copy of an official redemption notice by first class mail postage prepaid at least 30 days and not more than 60 days prior to the date fixed for redemption to the Owner of the Bond or Bonds to be redeemed at the address shown on the bond register or at such other address as is furnished in writing by such owner to the Paying Agent. The County shall notify the Paying Agent of any intended redemption not less than 45 days prior to the redemption date. All such official notices of redemption shall be dated and shall state: (i) the redemption date, (ii) the redemption price, (iii) if less than all outstanding Bonds are to be redeemed, the identification (and, in the case of partial redemption, the respective principal amounts) of the Bonds to be redeemed, (iv) that on the redemption date the redemption price will become due and payable upon each such Bond or portion thereof called for redemption, and that interest thereon shall cease to accrue from and after said date, and (v) the place where such Bonds are to be surrendered for payment of the redemption price, which place of payment shall be the principal office of the Paying Agent. Section 5. Authentication, Registration, and Transfer. (a) No Bond shall be entitled to any right or benefit under this resolution unless it shall have been authenticated by an authorized officer of the Paying Agent. The Paying Agent shall authenticate all Bonds to be delivered at closing of the Bonds, 5 - RESOLUTION NO. 93-001 (1/6/93) -4 Of `4 C_ and shall additionally authenticate all Bonds properly surrendered for exchange or transfer pursuant to this resolution. (b) The ownership of all Bonds shall be entered in the bond register maintained by the Paying Agent, and the County and the Paying Agent may treat the person listed as owner in the bond register as the owner of the Bond for all purposes. (c) While the Bonds are in book -entry only form, the Paying Agent shall transfer Bond principal and interest payments in the manner required by DTC. (d) If the Bonds cease to be in book -entry only form, the Paying Agent shall mail each interest payment on the interest payment date (or the next business day if the payment date is not a business day) to the name and address of the Bondowners as they appear on the Bond register as of the fifteenth day of the month preceding an interest payment date (the "Record Date"). If payment is so mailed, neither the County nor the Paying Agent shall have any further liability to any party for such payment. (e) Bonds may be exchanged for an equal principal amount of Bonds of the same maturity which are in different denominations, and Bonds may be transferred to other owners if the Bondowner submits the following to the Paying Agent and (i) written instructions for exchange or transfer satisfactory to the Paying Agent, signed by the Bondowner or attorney in fact and guaranteed or witnessed in a manner satisfactory to the Paying Agent and (ii) the Bonds to be exchanged or transferred. (f) The Paying Agent shall not be required to exchange or transfer any bonds submitted to it during any period beginning with a Record Date and ending on the next following payment date; however, such Bonds shall be exchanged or transferred promptly following that payment date. (g) The Paying Agent shall note the date of authentication on each Bond. The date of authentication shall be the date on which the Bondowner's name is listed on the bond register. (h) For purposes of this section, Bonds shall be considered submitted to the Paying Agent on the date the Paying Agent actually receives the materials described in subsection (e) of this section. 6 - RESOLUTION NO. 93-001 (1/6/93) W "9,c�fflnr_ (i) The County may alter these provisions regarding registration and transfer by mailing notification of the altered provisions to all Bondowners. The altered provisions shall take effect on the date stated in the notice, which shall not be earlier than 45 days after notice is mailed. Section 6. Form of Registered Bond. The County may issue the Bonds as one or more typewritten, temporary Bonds which shall be exchangeable for definitive Bonds when definitive Bonds are required. The Bond shall be in substantially the form attached hereto as Exhibit "B." Section 7. Maintenance of Tax -Exempt Status. The County covenants for the benefit of the owners of the Bonds to comply with all provisions of the Internal Revenue Code of 1986, as amended (the "Code") which are required for Bond interest to be excluded from gross income for federal income tax purposes. The County makes the following specific covenants with respect to the Code: (a) The County shall not take any action or omit any action, if it would cause the Bonds to become "arbitrage bonds" under Section 148 of the Code and shall pay any rebates or penalties to the United States which are required by Section 148(f) of the Code. (b) The County shall operate the facilities financed with the Bonds so that the Bonds are not "private activity bonds" within the meaning of Section 141 of the Code. The covenants contained in this section and any covenants in the closing documents for the Bonds shall constitute contracts with the owners of the Bonds, and shall be enforceable by them. Section 8. Defeasance. The County may defease the Bonds by setting aside, with a duly appointed escrow agent, in a special escrow account irrevocably pledged to the payment of the Bonds to be defeased, cash or direct obligations of the United States in an amount which, in the opinion of a certified public accountant satisfactory to the escrow agent, without reinvestment, is at lease equal to the principal amount of the Bonds to be defeased, plus interest which will accrue thereon until maturity or any earlier date for which the issuer has given irrevocable instructions for redemption. Such Bonds shall be paid hereunder, and shall cease to be entitled to any lien, benefit or security under this Bond Resolution except the right to receive payment from such special escrow account; such Bonds shall not for any purpose of this Bond Resolution be deemed outstanding. Section 9. Designation of Bonds as Qualified Tax -Exempt Obligations. The County designates the Bonds as qualified tax-exempt obligations pursuant to Section 265(b)(3) of 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 7 - RESOLUTION NO. 93-001 (1/6/93) subordinate entities thereof, if any) does not reasonably expect to issue more than $10,000,000.00 of tax-exempt obligations during the current calendar year. DATED this 47-t- day of �L, � 1993. L C/ ATTEST: )_ ha_voj"�t Rec6rding Secretary 8 - RESOLUTION NO. 93-001 (1/6/93) BOARD OF COUNTY COMMISSIONERS OF DESCWJTES COUNTY, OREGON TOJ(THROOP, NANCY POPE SQ"LANGEN, B. H. SLAUGHTER, Com'missioner V fW11V1 rfltb I A LR16 P I �'M i �J Exhibit A(1) Official Notice of Bond Sale $490,000 Deschutes County State of Oregon Limited Tax: Improvement Bonds, Series 1993 P 0 0 2 / �-1 0 L, NOTICE IS HFREBY GIVEN that sealed bids will be received on behalf of Deschutes County, Oregon (the "County") for the purchase of its Limited Tax Improvement Bonds, Series 1993 (the "Bonds"). until 10:00 o'clock a.m. (Pacific Time) on January 26, 1993, at the offices of Preston Thorgrimson Shidler Gates & Ellis, I I I S.W. fifth Avenue, Suite 3200, Portland, Oregon, 97204, at which time they will be publicly opened and announced. The bids shall be considered and acted upon by the County within four hours. i ISSUE: The issue shall be in the aggregate principal amount of Four Hundred Ninety Thousand Dollars ($490.000) consisting of registered Ronds in denominations of Five Thousand Dollars ($5,000) or integral multiples thereof, all dated February 1, 1993, BANK QUALIFIED: These Bonds are designated qualified tax-exempt obligations pursuant to Section 265(b)(3) under the Internal Revenue Code of 1986, as amended (the "Code"). BIDDING CONSTRArNTS- The maximum rate of interest shall not exceed a true interest cost of nine percent (9%) per annum, Interest is payable semiannually on February I and August I of each year until maturity or prior redemption, commencing August 1, 1993. Bidders must specify the interest rate or rates which the Bonds hereby offered for sale shall bear. The bids shall comply with the followi: g conditions: (1) each interest rate specified in any bid must be a multiple of one eighth or one twentieth of one percent (.001%); (2) no Bond shall bear more than one rate of interest; (3) each Bond shall bear interest from its date to its stated maturity date sit the interest rate specified in tho'bid; (4) all Bonds matufing at uny one time shall bear the same rate of interest; and (5) the maximum rate of interest on a single maturity shall not exceed ten percent (10%) per annum. Page I - Exhibit A(l) M:%RDR%D=HUrE.00\LTMAX.8N=$j.DX alm"I 01/05/1993 17:40 PRESTON LAW FIRM as follows: 5032489085 P.03 MATURITIES: The Bonds shall mature on the first day of February of eaeh year Year Amount 1993 1994 35,000.00 1995 35,000,00 1996 40,000.00 1997 40,000.00 1998 45,000.00 1999 45)000.00 2000 45,000.00 2001 50,000.00 2002 559000.00 2003 100,000.00 Page 2 - Exhibit A(1) BOOK ENTRY ONLY: The Bonds are to be issued in registered, book -entry -only form and all bidders for the Bonds must be participants of The Depository Trust Company, New York, New York ("DTC"), or affiliated with its participants. The Bond certificates will be on deposit with DTC. DTC will be responsible for maintaining a book -entry system for recording the interests of its participants for the transfer of the interests among its participants. The participants will be responsible for maintaining records regarding the beneficial ownership interests in the Bonds on behalf of the individual purchasers (the "Beneficial Owners"). Individual purchases may be made in the principal amount of $5,000, or any multiple thereof through book entries made on the books and records of DTC and its participants. OPTIONAL REDEMPTION: The County reserves the right to redeem all or any portion of the Bonds maturing after February 1, 2000, in integral multiples of $5,000, by lot, on February 1, 2000, and on any interest payment date thereafter, at par plus accrued interest to the redemption date. EXTRAORDINARY REDENVTION: The County reserves the right to redeem all or any portion of the bonds maturing on February 1, 2003, on February 1, 1994, and on any interest payment date thereafter, at par plus accrued interest to the date fixed for redemption, from assessment payments received by the County in excess of amounts required for current debt service and a prudent reserve for the next payment date as determined by the County. NOTICE OF REDENUTION: Notice of any call for redemption, unless waived by the registered owners of the Bond or Bonds to be redeemed, shall be mailed not less than thirty days and not more than sixty days prior to such call to the registered owners of the Bonds, and otherwise given as required by the Bond Resolution and by law; however, any failure to give notice shall not invalidate the redemption of the Bonds. All Bonds called for redemption shall cease to bear interest from the date designated in the notice. PAYN1ENT: Principal and interest are payable, either at maturity or upon earlier redemption, by check or draft through the principal corporate trust office of the registrar and paying agent of the County, which is currently United States National Bank of Oregon, in Portland, Oregon. As book -entry bonds, principal of and interest on the Bonds will be payable by the paying agenty through The Depository Trust Company. Interest will will be payable by check or draft which will be mailed on the interest payment date (or the next business day if the interest payment date is not a business day) to the registered owners at their addresses appearing in the Bond Register as of the fifteen th day of the month preceding an interest payment date. PURPOSE: The Bonds are being issued to redeem short term notes which were issued to finance local improvements, to reimburse the County for prior expenditures, and to finance additional local improvements. SECURITY: The Bonds are limited tax bonds of the County. The County has assessed benefited properties for the costs of local improvements, and has received applications to pay assessments in installments in an amount at least equal to the principal amount of the Bonds. MARDR\DESCHUrE.CO\LTDTAX.BND/RSI DOC Page 3 - Exhibit A(l) 1/5/93 A3 Each assessment is exempt from the limitation of section I lb(l), Article XI of the Oregon Constitution. All installment assessment payments, delinquent payments and foreclosure proceeds shall be placed in the Series 1993 Account of the Bancroft Bond Redemption Fund and applied to the payment of principal and interest on the Bonds. In addition, the full faith and credit of the County are pledged to the successive owners of each of the Bonds for the punctual payment of such obligations, when due. The County has covenanted to levy an annual, direct ad valorem tax upon all of the taxable property within the County in an amount sufficient, with other available funds, to pay all principal of and interest on the Bonds which is due and payable in that year, provided that the amount of such tax shall not exceed the amount permitted under section I lb(l), Article XI of the Oregon Constitution. LEGAL OPINION: The approving opinion of Preston Thorgrimson Shidler Gates & Ellis, Lawyers, of Portland, Oregon, will be provided at no cost to the purchaser, and will be printed on the Bonds at the expense of the County. TAX EXENVT STATUS: In the opinion of Bond Counsel, under existing law and conditioned on the County complying with certain covenants relating to the tax-exempt status of the Bonds, interest on the Bonds is excluded from gross income for federal income tax purposes (except for certain taxes on corporations). The Bonds are not "private activity bonds" under Section 141 of the Code. In the opinion of Bond Counsel, the interest on the Bonds is exempt from personal income taxation by the State of Oregon under present state law. Bond Counsel expresses no opinion regarding other federal or state tax consequences arising with respect to the Bonds. The County has the legal authority to comply with its covenants. BEST BID: The Bonds will be awarded to the responsible bidder whose proposal will result in the lowest true interest cost to the County. True interest cost will be determined by doubling the semiannual interest rate necessary to discount the debt service to February 1, 1993, and the price bid for the Bonds. Each bidder is requested to supply the total interest cost and the true interest cost that the County will pay upon the issue if the bid is accepted. The purchaser must pay accrued interest, computed on a 360 -day basis, from the date of the Bonds to the date of delivery. The cost of printing the Bonds will be paid by the County. REOFFERING PRICE: The successful bidder must certify the initial reoffering price for each maturity of the Bonds to the County's financial advisor and bond counsel, in a manner satisfactory to bond counsel, not less than three business days prior to closing. DELIVERY: Closing will occur in Portland, Oregon. Delivery of the Bonds, in book -entry form, will be made without cost to the successful bidder at The Depository Trust Company, New York, New York. Payment for the Bonds must be made in immediately available funds to the County. Delivery of the Bonds will be made on or about February 1, 1993. M:\RDR\DESCHUrE.CO\LTDTAX.BNDIRSI.DOC Page 4 - Exhibit A(l) 1/5/93 FORM OF BID: All bids must be for not less than all the Bonds hereby offered for sale, and for not less than ninety-nine percent (99%) of the par value thereof and accrued interest to the date of delivery. Each bid together with bidder's check as herein specified must be enclosed in a sealed envelope addressed to the County and designated "Proposal for 1993 Improvement Bonds." Bidders are requested to use the bid form provided by the County. BID CHECK: All bids must be unconditional and accompanied by a certified or cashier's check on a bank doing business in the State of Oregon for Nine Thousand Eight Hundred Dollars ($9,800.00), payable to the order of the County to secure the County from any loss resulting from the failure of the bidder to comply with the terms of its bid. Checks will be forfeited to the County as liquidated damages in case the bidder to whom the Bonds are awarded withdraws its bid or fails to complete its purchase in accordance with the terms thereof No interest shall be allowed on the deposit but the check of the successful bidder will be retained as part payment of the Bonds or for liquidated damages as described above. Checks of the unsuccessful bidders will be returned by the County. RIGHT OF REJECTION: The County reserves the right to reject any or all bids, and to waive any irregularities. PRELIMINARY OFFICIAL STATEMENT: The County has prepared a "nearly final" preliminary official statement relating to the Bonds, a copy of which will be furnished upon request to Public Financial Management, Inc., 2929 First Interstate Center, 1300 S.W. Fifth Avenue, Portland, Oregon 97201, Telephone: (503) 223-3383, Attention: Eric Johansen. COMPLIANCE WITH SEC RULES: The County agrees to provide the successful bidder with up to 250 copies of the final official statement for the Bonds at the expense of the County, and such additional copies as the successful bidder may request in its bid form at the expense of the bidder, not later than the seventh business day following the date on which bids are due. Bidders should expect that the official statements will not be available prior to the seventh business day following the date on which bids are due, and should not issue confirmations which request payment prior to that date. The successful bidder must telecopy the reoffering yields or prices which will be printed on the cover of the final official statement to the County Treasurer, telecopier number (503) 389-6538 within twenty-four hours after bids are opened. This provision will constitute a contract with the successful bidder upon acceptance of its bid by the County, in compliance with Section 240.15c2 -12(b)(3) in Chapter 11 of Title 17 of the Code of Federal Regulation. CUSIP: CUSIP numbers will be imprinted upon all Bonds of this issue at the County's expense. Failure to print, or improperly imprinted numbers will not constitute basis for the purchaser to refuse to accept delivery. M:\P,DR\I)ESCHUTE.CO\LTUrAX.BND/RSI.DOC Page 5 - Exhibit A(l) 1/5/93 AAw NO LITIGATION: At the time of payment for the delivery of said Bonds, the County will furnish the successful bidder a certificate that there is no litigation pending affecting the validity of the Bonds. FURTHER INFORMATION: Additional information regarding the County and this sale may be obtained from Michael Maier, Administrative Services Director, Deschutes County, 1130 N.W. Harriman Street, Bend, Oregon 97701, telephone: (503) 388-6570. By Order of Deschutes County, Oregon M:\RDR\DESCHUFE.CO\LTIYrAX.BND/RSI.DCC Page 6 - Exhibit A(l) 1/-V93 EXHIBIT A(2) Summary Notice of Bond Sale $490,000 Deschutes County, Oregon Limited Tax Improvement Bonds Series 1993 si3 NOTICE IS HEREBY GIVEN that sealed bids will be received on behalf of Deschutes County, in Deschutes County, Oregon (the "Issuer"), at the offices of Preston Thorgrimson Shidler Gates & Ellis, I I I S.W. Fifth Avenue, Suite 3200, Portland, Oregon, 97204, until 10:00 o'clock a.m. (Pacific Time) on Tuesday, January 26, 1993 The bonds will be dated February 1, 1993, will be in denominations of $5,000 each or integral multiples thereof, and will mature in varying amounts from February 1, 1994 to February 1, 2003, inclusive, and are callable on February 1, 2000, at par. In the opinion of Preston Thorgrimson Shidler Gates & Ellis, Bond Counsel, assuming compliance by the Issuer with its covenants relating to the tax-exempt status of the bonds, interest on the bonds is excluded from gross income for federal income taxation purposes under Section 103(a) of the Internal Revenue Code of 1986, as amended (the "Code") and is exempt from Oregon personal income taxation. The bonds are not private activity bonds. The successful bidder must certify the reoffering price as provided in the complete official notice of sale for the bonds. The Issuer has designated the bonds as "qualified tax-exempt obligations pursuant to Section 265(b)(3) of the Code. A complete copy of the official notice of bond sale will be published in the Daily Journal of Commerce on approximately January 11, 1993, and also in the Preliminary Official Statement for the bonds, which is available from the Issuer's financial advisor: Public Financial Management, Inc., 2929 First Interstate Center, 1300 S.W. Fifth Avenue, Portland, Oregon 97201, Telephone: (503) 223-3383, Attention: Eric Johansen. Administrative Services Director Deschutes County, Oregon M:\RDR\I)ESCHUFE.CO\LTUrAX.BND/RSI.DOC Page I - Exhibit A(2) 1/5/93 R -- EXHIBIT B Form of Bond United States of America State of Oregon Deschutes County Limited Tax Improvement Bond, Series 1993 Dated Date: Interest Rate: Maturity Date: February 1, CUSIT Number: Registered Owner: ----- ----- Principal Amount: ----- Dollars ---- DESCHUTES COUNTY, State of Oregon (the "County"), for value received, acknowledges itself indebted and hereby promises to pay to the Registered Owner, or registered assigns, the above Principal Amount on the above Maturity Date, together with interest thereon from the date hereof at the rate per annum indicated above. Interest is payable semiannually on the first day of February and on the first day of August in each year until maturity or prior redemption, commencing August 1, 1993. Principal and interest payments shall be received by Cede & Co., as nominee of The Depository Trust Company, or its registered assigns, on each payment date. Such payments shall be made payable to the order of "Cede & Co." This Bond is one of an authorized issue of Bonds by the County entitled Limited Tax Improvement Bonds, Series 1993, in the aggregate principal amount of $490,000 (the "Bonds"), and is issued by the County to finance local improvements pursuant to an resolution of the County, dated January 6, 1993 (the "Bond Resolution") and Oregon Revised Statutes Sections 223.205 to 223.295, in full and strict accordance and compliance with all of the provisions of the Constitution and Statutes of the State of Oregon. The County reserves the right to redeem all or any portion of the term Bonds maturing after February 1, 2000, in integral multiples of $5,000, by lot, on February 1, 2000, and on any interest payment date thereafter, at par plus accrued interest to the redemption date. Bonds maturing on February 1, 2003, are subject to extraordinary redemption on any interest payment date on and after February 1, 1994, from assessment payments received in excess of those required for the current debt service and a prudent reserve for the next payment date as required by the County. M:\RDR\DESCHUFE.CO\LTDTAX.BND/RSI.DC)C Page I - Exhibit B 1/5193 A 0 P AR P - Notice of any call for redemption, unless waived by the registered owners of the Bond or Bonds to be redeemed, shall be mailed not less than thirty days and not more than sixty days prior to such call to the Registered Owners of record of the Bonds, and otherwise given as required by the Bond Resolution and by law; however, any failure to give notice shall not invalidate the redemption of the Bonds. All Bonds called for redemption shall cease to bear interest from the date designated in the notice. The Bonds are issuable in the form of registered Bonds without coupons in the denominations of $5,000 or any integral multiple thereof Bonds may be exchanged for Bonds of the same aggregate principal amount, but different authorized denominations. Any transfer of this Bond must be registered, as provided in the Bond Resolution, upon the Bond Register kept for that purpose at the principal corporate trust office of the Registrar. The Bondowner may exchange or transfer any Bond only by surrendering it, together with a written instrument of exchange or transfer which is satisfactory to the Registrar and duly executed by the Registered Owner or his duly authorized attorney, at the principal corporate trust office of the Registrar in the manner and subject to the conditions set forth in the Bond Resolution. The County and the Registrar may treat the person in whose name this Bond is registered as its absolute owner for all purposes, as provided in the Bond Resolution. Notice of any call for redemption shall be given as required by the Letter of Representations to The Depository Trust Company, as referenced in the Bond Resolution. Interest on any Bond or Bonds so called for redemption shall cease on the redemption date designated in the notice. The Issuer's paying agent and registrar, which is currently United States National Bank of Oregon, in Portland, Oregon (the "Registrar"), will notify The Depository Trust Company promptly of any Bonds called for redemption. The Bonds are initially issued as a book -entry -only security issue with no certificates provided to the Bondowners. Records of Bond ownership will be maintained by the Registrar and The Depository Trust Company and its participants. Should the book -entry -only security system be discontinued, the Bonds shall be issued in the form of registered Bonds without coupons in the denominations of $5,000 or any integral multiple thereof Such Bonds may be exchanged for Bonds of the same aggregate principal amount, but different authorized denominations, as provided in the Bond Resolution. Any transfer of this Bond must be registered, as provided in the Bond Resolution, upon the bond register kept for that purpose by the Registrar. Upon registration, a new registered Bond or Bonds, of the same series and maturity and in the same aggregate principal amount, shall be issued to the transferee as provided in the Bond Resolution. The Registrar and the Issuer may M:\RDR\DESCHUrE.CO\LTDTAX.BNDIRSI.DOC Page 2 - Exhibit B 1/5/93 treat the person in whose name this Bond is registered as its absolute owner for all purposes, as provided in the Bond Resolution. The Bondowner may exchange or transfer this Bond only by surrendering it, together with a written instrument of exchange or transfer which is satisfactory to the Registrar and duly executed by the registered owner or their duly authorized attorney, at the principal corporate trust office of the Registrar in the manner and subject to the conditions set forth in the Bond Resolution. Unless this certificate is presented by an authorized representative of The Depository Trust Company to the issuer or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the name of Cede & Co. or such other name as requested by an authorized representative of The Depository Trust Company and any payment is made to Cede & Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the registered owner hereof, Cede & Co., has an interest herein. IT IS HEREBY CERTIFIED, RECITED, AND DECLARED that all conditions, acts, and things required to exist, to happen, and to be performed precedent to and in the issuance of this Bond have existed, have happened, and have been performed in due time, form, and manner as required by the Constitution and Statutes of the State of Oregon; that the issue of which this Bond is a part, and all other obligations of such County, are within every debt limitation and other limits prescribed by such Constitution and Statutes; and that the Board of County Commissioners has covenanted to levy annually a direct ad valorem tax upon all taxable property within the County in an amount sufficient, with other available funds, to pay the interest on and the principal of the Bonds of such issue as they become due and payable; provided that the amount of such tax shall not exceed the amount permitted under section I I b(l), Article XI of the Oregon Constitution. IN WITNESS WHEREOF, the Board of County Commissioners of Deschutes County, Oregon, has caused this Bond to be signed by facsimile signature of its Chair and attested by facsimile signature of its Treasurer, as of the date indicated above. Chair ATTEST: M:\RDR\DESCHUrE.CO\LTDTAX.BNDIRSI.DOC Page 3 - Exhibit B 1/5/93 County Treasurer This bond shall not be valid unless properly authenticated by the Registrar in the space indicated below. Dated: Certificate of Authentication This is one of the County's Limited Tax Improvement Bonds, Series 1993, issued pursuant to the Bond Resolution described herein. United States National Bank of Oregon, as Registrar Authorized Officer M:\RDR\DESCHUFE.CO\LTUrAX.BND(RSI.DOC Page 4 - Exhibit B 1/5193 Assignment FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto Please insert social security or other identifying number of assignee this Bond and does hereby irrevocably constitute and appoint as attorney to transfer this Bond on the books kept for registration thereof with the ffill power of substitution in the premises. Dated: NOTICE: The signature to this assignment must correspond with the name of the Registered Owner as it appears upon the face of this Bond in every particular, without alteration or enlargement or any change whatever. Signature Guaranteed (Bank, Trust Company or Brokerage Firm) Authorized Officer The following abbreviations, when used in the inscription on the face of this Bond, shall be construed as though they were written out in full according to applicable laws or regulations. TEN COM -- tenants in common TEN ENT -- as tenants by the entireties JT TEN -- as joint tenants with right of survivorship and not as tenants in common OREGON CUSTODIANS use the following CUST UL OREG MIN as custodian for (name of minor) OR UNIF TRANS MIN ACT under the Oregon Uniform Transfer to Minors Act Additional abbreviations may also be used though not in the list above. M:\RDR\I)ESCHUrE.CO\LTUrAX.BND/RSI,Doc Page 5 - Exhibit B 1/5/93