1993-09403-Resolution No. 93-024 Recorded 3/29/1993lte°VSL�^VCI�
93-09403
BEFORE THE BOARD OF COUNTY COMMISSIONERS F �E
DESCHUTES COUNTY, OREGON
A Resolution authorizing the issuance of
bonds for the purpose of financing, in part, ) _
construction of a correctional facility, and to ) , : _ ,
pay all costs incidental thereto. )
a12Q-1291
Resolution No. 93-024
WHEREAS, this Board of County Commissioners submitted to the legal voters of
Deschutes County, Oregon (the "County"), the question of contracting a general obligation
bonded indebtedness in the sum of $9,500,000 to finance, in part, construction of a correctional
facility and to pay all costs incidental thereto;
WHEREAS, the election was duly and legally held on Tuesday,
November 5, 1991, and this Board has canvassed the result thereof and has declared that issuance
of bonds in such sum has been approved by a majority of the qualified voters of the County voting
at the election; and
WHEREAS, this Board authorized issuance of General Obligation Bonds,
Series 1992, in the amount of $7,000,000 leaving authorized but unissued bonds in the amount of
$2,500,000 now, therefore,
BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF
DESCHUTES COUNTY, OREGON, as follows:
Section 1. Issue.
A. For the above purposes, the County shall issue its General Obligation Bonds,
1993 Series B (the 'Bonds"), in the amount of Two Million Five Hundred Thousand Dollars
($2,500,000), to be dated April 1, 1993, to be in denominations of Five Thousand Dollars
($5,000) or integral multiples thereof, to bear interest payable on December I and June 1 of each
year until maturity or prior redemption, commencing December 1, 1993, and to mature on
December 1 of each year as follows:
RESOLUTION NO. 93-024
AUTHORIZING ISSUANCE OF
GENERAL OBLIGATION BONDS
Page I of 8
0120--1292
Year
Amount
Year
Amount
1993
$ 25,000
2003
$ 130,000
1994
85,000
2004
135,000
1995
95,000
2005
135,000
1996
100,000
2006
140,000
1997
105,000
2007
145,000
1998
105,000
2008
150,000
1999
110,000
2009
160,000
2000
115,000
2010
165,000
2001
120,000
2011
175,000
2002
125,000
2012
180,000
Section 2. Optional Designation of Term Bonds and Mandatory
Redemption.
A. Bidders may designate one or more term bonds. Term bonds must consist of
two or more consecutive maturities, and must mature on the maturity date of the last of the
consecutive maturities in an amount equal to the sum of the consecutive maturities. Term bonds
shall be subject to mandatory redemption at par and by lot, in the amounts and on the dates of the
consecutive maturities shown in the preceding section. If no term bonds are designated in the
successful bid, the bonds will mature serially on the schedule indicated above.
Section 3. Optional Redemption.
A. The County reserves the right to redeem all or any portion of the Bonds
maturing after December 1, 2002, with maturities selected by the County, by lot within a maturity,
on December 1, 2002, and on any interest payment date thereafter, on the following dates at the
following prices expressed as percentages of the principal amount, plus accrued interest to the
date fixed for redemption:
If redeemed on:
Redemption Price
December 1, 2002, and June 1, 2003 101.0%
December 1, 2003, and thereafter 100.0%
Section 4. Notice of Redemption.
A. Notice of Redemption (DTC). So long as the Bonds are in book -entry -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 representation submitted to DTC in connection with the issuance of the Bonds.
RESOLUTION NO. 93-024
AUTHORIZING ISSUANCE OF
GENERAL OBLIGATION BONDS
Page 2 of 8
0120-1293
B. Notice of Redemption (No DTC).
(1) During any period in which the Bonds are not in book -entry -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.
(2) Prior to any redemption date, the County shall deposit with the
Registrar an amount of money sufficient to pay the redemption price of all the Bonds or
portions of Bonds which are to be redeemed on that date.
(3) Official notice of redemption having been given as aforesaid, the Bonds
or portions of Bonds so to be redeemed shall, on the redemption date, become due and
payable at the redemption price therein specified, and from and after such date (unless the
County shall default in the payment of the redemption price) such Bonds or portions of
Bonds shall cease to bear interest. Upon surrender of such Bonds for redemption in
accordance with said notice, such Bonds shall be paid by the Registrar at the redemption
price. Installments of interest due on or prior to the redemption date shall be payable as
herein provided for payment of interest. Upon surrender for any partial redemption of any
Bond, there shall be prepared for the registered owner a new Bond or Bonds of the same
maturity in the amount of the unpaid principal. All Bonds which have been redeemed shall
be canceled and destroyed by the Registrar and shall not be reissued.
RESOLUTION NO. 93-024
AUTHORIZING ISSUANCE OF
GENERAL OBLIGATION BONDS
Page 3 of 8
0120-1294
Section 5. Bond Book -Entry -Form.
A. The Bonds shall be initially issued in book -entry -form, with no Bonds being
made available to the Bondowners. The Administrative Director shall execute and deliver letters
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 -form:
(1) 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. The Bonds shall be initially issued in the form of a global
bond. 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) The Registrar 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 -form, the Bonds will be available in
denominations of $5,000 or any integral multiple thereof.
B. In the event DTC determines not to continue to act as securities depository for
the Bonds, or the County determines that DTC shall no longer so act; then the County will
discontinue maintaining the Bonds in the book -entry -form with DTC.
C. Notwithstanding the provisions regarding exchange and transfer of Bonds set
forth in this resolution, while the Bonds are in book -entry -form they may not be transferred or
exchanged on the registration books maintained by the Paying Agent except:
below;
(1) to any successor depository designated by the County as provided
(2) to any successor nominee designated by a depository; or
(3) if the County elects to discontinue maintaining the Bonds in
book -entry -form, the County shall cause the Paying Agent to authenticate and deliver
replacement Bonds in fully registered form in authorized denominations in the names of
the beneficial owners or their nominees; thereafter the provisions set forth herein,
regarding registration, transfer and exchange of Bonds shall apply.
D. 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 -form by
resolution or ordinance. If the County is unable to identify such successor depository prior to the
RESOLUTION NO.93-024
AUTHORIZING ISSUANCE OF
GENERAL OBLIGATION BONDS
Page 4 of 8
0120-1295
effective date of the resignation, the County shall discontinue maintaining the Bonds in
book -entry -form as provided above.
E. 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:
(1) 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;
(2) the delivery to any participant or correspondent or any other person of
any notice with respect to the Bonds, including any notice of prepayment;
(3) the selection by DTC of the beneficial interest in Bonds to be redeemed
prior to maturity; or
(4) 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.
F. So long as the Bonds are in book -entry -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. Neither the County nor the Paying
Agent is responsible or liable for the failure of DTC or any participant to make any payment or
give any notice to a beneficial owner in respect of the Bonds or any error or delay relating thereto.
G. 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.
H. 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.
RESOLUTION NO. 93-024
AUTHORIZING ISSUANCE OF
GENERAL OBLIGATION BONDS
Page 5 of 8
0120-1296
I. The provisions of this Section may be modified without the consent of the
beneficial owners in order to conform this Section to the standard practices of DTC for bonds
issued in book -entry -form.
Section 6. 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, 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 -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 -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:
(1) 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
(2) 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.
RESOLUTION NO. 93- 24
AUTHORIZING ISSUANCE OF
GENERAL OBLIGATION BONDS
Page 6 of 8
0120-129'7
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 Section 6.E.
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 7. Security.
A. 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 shall levy
annually, as provided by law, a direct ad valorem tax upon all of the taxable property within the
County in sufficient amount, after taking into consideration discounts taken and delinquencies that
may occur in the payment of such taxes and other moneys available for the payment of debt
service on the Bonds, to pay the Bonds promptly as they mature, and 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.
Section 8. Maintenance of Tax -Exempt Status.
A. 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 taxation purposes
(except for certain taxes on corporations), unless the County obtains an opinion of nationally
recognized Bond Counsel that such compliance is not required for the interest paid on the Bonds
to be so excluded. The County makes the following specific covenants with respect to the Code:
(1) 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 to the United States which are required by Section 148(0 of the Code.
(2) 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.
B. 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 9. Designation of Bonds as Qualified Tax -Exempt Obligations.
A. 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. The
RESOLUTION NO. 93-024
AUTHORIZING ISSUANCE OF
GENERAL OBLIGATION BONDS
Page 7 of 8
0120-1298
County (and all subordinate entities thereof, if any) does not reasonably expect to issue more than
$10,000,000 of tax-exempt obligations during the current calendar year.
Section 10. Sale of Bonds.
A. The Treasurer shall cause to be published in the Bend Bulletin, Bend, Oregon,
and in the Daily Journal of Commerce, Portland, Oregon, notices of sale of the Bonds in the form
substantially as shown on Exhibit A attached hereto and by this reference incorporated herein, or
summaries, as provided by law. The Bonds shall be sold upon the terms provided in the Notice of
Bond Sale attached as Exhibits A(1) and A(2). The County Administrator may award the sale of
the Bonds and report the results to this Board. The Bonds shall be sold on the date and at the
time and place stated in Exhibit A, unless the Chairman or Treasurer establishes a different date,
time, or place.
Dated this day of March 1993.
ATTEST:
Recording Secretary
RESOLUTION NO. 93-024
AUTHORIZING ISSUANCE OF
GENERAL OBLIGATION BONDS
Page 8 of 8
Board of Cou ty Commissioners of
Deschutes County, Oregon
TOM �`HROOP, Chair
ANCY OPE 9CHLANGEN, Commissioner
B.H. SLAUGHTER, Commissioner
0120-1299
Exhibit A(1)
Official Notice of Bond Sale
$2,500,000
Deschutes County
Deschutes County, Oregon
General Obligation Bonds
1993 Series B
NOTICE IS HEREBY GIVEN that sealed bids will be received on behalf of the
Deschutes County Oregon (the "County"), for the purchase of its General Obligation Bonds, 1993
Series B (the "Bonds"), until 10:00 o'clock a.m. (Pacific Time) on April 14, 1993, at the offices of
Preston Thorgrimson Shidler Gates & Ellis, 3200 U.S. Bancorp Tower, 111 S.W. Fifth Avenue,
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.
BOOK -ENTRY ONLY: The Bonds are to be issued in book -entry -only form and
all bidders for the Bonds must be participants of The Depository Trust Company, New York,
New York, or affiliated with its participants. The certificates will be on deposit with
The Depository Trust Company. The Depository Trust Company 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.
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 The Depository Trust Company and its
participants.
ISSUE: The issue shall be in the aggregate principal amount of Nine Million Five
Hundred Thousand Dollars ($9,500,000), consisting of registered Bonds in denominations of Five
Thousand Dollars ($5,000) or integral multiples thereof, all dated April 1, 1993.
INTEREST RATE: The maximum interest rate shall not exceed a true interest
cost of nine percent (9%) per annum. Interest is payable semiannually on December 1 and June 1
of each year until maturity or prior redemption, commencing December 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 following conditions: (1) each interest rate specified in any bid must be a
multiple of 1/8th or 1/20th of one percent (1%); (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 at the interest
rate specified in the bid; (4) all Bonds maturing at any one time shall bear the same rate of
interest; (5) no rate of interest may exceed 10%, and (6) the rates bid for any maturity shall not be
less than the rates bid for any earlier maturity.
Page 1 - Exhibit A(1) March I9, 1993
0120-1300
MATURITIES: The Bonds shall mature on December 1 of each year as follows:
Year
Amount
Year
Amount
1993
$ 25,000
2003
$ 130,000
1994
85,000
2004
135,000
1995
95,000
2005
135,000
1996
100,000
2006
140,000
1997
105,000
2007
145,000
1998
105,000
2008
150,000
1999
110,000
2009
160,000
2000
115,000
2010
165,000
2001
120,000
2011
175,000
2002
125,000
2012
180,000
TERM BONDS AND MANDATORY SINKING FUND REDEMPTION:
Bidders have the option of specifying in their bid proposal that all of the principal amount of the
bonds scheduled in any two or more consecutive years may, in lieu of maturing in each such year,
be combined to comprise one or more maturities of the Bonds scheduled to mature in the latest
year of each such combination. The term bonds so specified by the bidder shall be subject to
mandatory sinking fund redemption at par in the principal amounts in each year during the
combined period of such Bonds which would otherwise have been scheduled to mature in such
years.
REGISTRATION: The Bonds will be issued in fully registered form, and may be
exchanged at the expense of the County for similar Bonds of different authorized denominations.
Bonds may not be converted to bearer form.
OPTIONAL REDEMPTION: The County reserves the right to redeem all or any
portion of the Bonds maturing after December 1, 2002, with maturities selected by the County, by
lot within a maturity, on December 1, 2002, and on any interest payment date thereafter, on the
following dates at the following prices expressed as percentages of the principal amount, plus
accrued interest to the date fixed for redemption:
If redeemed on: Redemption Price
December 1, 2002, and June 1, 2003 101.0%
December 1, 2003, and thereafter 100.0%
NOTICE OF REDEMPTION: Notice of any call for redemption, unless waived
by the holders of the 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 authorizing Bond Resolution and by law; however, any failure to give notice shall
Page 2 - Exhibit A(1) March 19,1993
0120-1301
not invalidate the redemption of the Bonds. All Bonds called for redemption shall cease to bear
interest from the date designated in the notice.
PAYMENT: Principal and interest are payable, either at maturity or upon earlier
redemption, through the registrar and paying agent of the County, which is currently United
States National Bank of Oregon, in Portland, Oregon. As book -entry bonds, the principal of and
interest on the bonds will be payable by the registrar and paying agent through The Depository
Trust Company. Interest is 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 fifteenth day of the
month preceding an interest payment date.
PURPOSE: The Bonds are being issued to finance, in part, construction of a
correctional facility and to redeem the County's outstanding Bond Anticipation Notes, and to pay
all costs incidental thereto. The Bonds were authorized at a special election held within the
County on Tuesday, November 5, 1991.
SECURITY: The Bonds are general obligations of the County. The County has
covenanted to levy an ad valorem tax without limit as to rate or amount annually which, with
other available funds, will be sufficient to pay Bond principal and interest as they come due.
LEGAL OPINION: The approving opinion of Preston Thorgrimson Shidler
Gates & Ellis, Bond Counsel, 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-EXEMPT 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 Internal Revenue Code of 1986, as amended (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 April 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
Page 3 - Exhibit A(1) March 19,1993
0120-1302
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.
CERTIFICATE REGARDING INITIAL OFFERING PRICE: To provide the
County with information required to enable it to comply with certain conditions of the Internal
Revenue Code of 1986, as amended, relating to the exclusion of the interest on the Bonds from
the gross income of their owners, the successful bidder will be required to complete, execute and
deliver to Bond Counsel (on or before three business days prior to the date of delivery of the
Bonds) a certification provided by Bond Counsel as to the "issue price" of each maturity of the
Bonds. In the event the successful bidder has (1) purchased the bonds for its own portfolio
without intention to resell the Bonds, or (2) made a bona fide private placement of the Bonds,
such certificate may be modified in a manner provided by Bond Counsel. Each bidder, by
submitting its bid, agrees to complete, execute and deliver such a certificate, if its bid is accepted
by the County. Failure to honor this agreement may result in the cancellation of the sale and the
forfeiture of the successful bidder's good faith deposit.
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 State. Delivery of the Bonds will be made on or about April 29, 1993.
FORM OF BID: All bids must be for not less than all the Bonds hereby offered
for sale, and for not less than 99.0% 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 Bonds."
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 Fifty Thousand Dollars
($50,000) 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 promptly.
RIGHT OF REJECTION: The County reserves the right to reject any or all bids,
and to waive any irregularities.
OFFICIAL STATEMENT AND FURTHER INFORMATION: Further
information and a preliminary official statement relating to the Bonds will be provided upon
request to its financial advisor, Public Financial Management, Inc., Suite 2929, 1300 S.W. Fifth
Avenue, Portland, Oregon 97201, telephone: (503) 223-3383.
Page 4 - Exhibit A(1) March 19,1993
0120-1303
COMPLIANCE WITH SEC RULES: The County agrees to provide the
successful bidder with up to 150 copies of the official statement in a form "deemed final" by the
County 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 provide the reoffering yields or prices which will be printed on the cover of the final
official statement to the County's financial advisor 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 II of Title 17 of the Code
of Federal Regulations.
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.
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 Mike Maier, Administrative Director, Deschutes County,
1130 N.W. Harriman Street, Bend, Oregon, 97701, telephone: (503) 388-6565.
Administrative Director
Deschutes County, Oregon
Page 5 - Exhibit A(1) March I9, 1993
0120-1304
Exhibit A(2)
Summary Notice of Bond Sale
$2,500,000
Deschutes County
Deschutes County, Oregon
General Obligation Bonds
1993 Series B
NOTICE IS HEREBY GIVEN that sealed bids will be received on behalf of
Deschutes County, Oregon (the "County"), at the office of Preston Thorgrimson Shidler
Gates & Ellis, Lawyers, Suite 3200, 111 S.W. Fifth Avenue, Portland, Oregon, 97204, until 10:00
o'clock a.m. (Pacific Time) on Wednesday,
April 14, 1993.
The Bonds will be dated April 1, 1993, will be in denominations of $5,000 each or
integral multiples thereof, and will mature in varying amounts from December 1, 1993, to
December 1, 2012, inclusive, and are callable on December 1, 2002, at a premium as described in
the Official Notice of Bond Sale.
In the opinion of Preston Thorgrimson Shidler Gates & Ellis, Bond Counsel,
assuming compliance by the County with its covenants relating to the tax-exempt status of the
Bonds and except for certain taxes on the book income of corporations, interest on the Bonds is
excluded from gross income for federal income taxation and is exempt for Oregon personal
income taxation purposes. 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 County has designated the Bonds as "qualified tax-exempt obligations"
pursuant to Section 265(b)(3) of the Internal Revenue Code of 1986.
Complete copies of the Official Notice of Bond Sale will be published in the Daily
Journal of Commerce on approximately March 29, 1993, and in the Preliminary Official
Statement for the Bonds, which is available from the County's financial advisor: Public Financial
Management, Inc., Suite 2929, 1300 S.W. Fifth Avenue, Portland, Oregon 97201, telephone:
(503) 223-3383, Attention: Eric Johansen.
Deschutes County, Oregon
Page 1 - Exhibit A(2) March l9, 1993
No. R -
Interest Rate: %
Maturity Date:
Certificate Date: April 1, 1993
CUSIP Number: -
Registered Owner: ----
Principal Amount: ----
Exhibit B 0120-1305
Form of Bond
United States of America
Deschutes County, Oregon
General Obligation Bond
1993 Series B
Dollars ----
Deschutes County, Oregon (the "County"), for value received, acknowledges itself
indebted and hereby promises to pay to the registered owner hereof, or registered assigns, the
principal amount indicated above 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 December and the first day of June in each year until maturity or prior redemption,
commencing December 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 a series of General Obligation Bonds, 1993 Series B of the
County in the aggregate principal amount of $9,500,000, and is issued by the County for the
purpose of financing, in part, construction of a correctional facility and to redeem the County's
outstanding Bond Anticipation Notes, 1992 Series C, and to pay all costs incidental thereto, in full
and strict accordance and compliance with all of the provisions of the Constitution and statutes of
the State of Oregon.
The Bonds maturing on December 1, , are subject to mandatory redemption
on December 1 in each of the years and in the principal amounts set forth below, any such
redemption to be at a price equal to 100 percent of the principal amount to be redeemed plus
accrued and unpaid interest thereon to the date fixed for redemption. The particular Bonds to be
redeemed on each such date shall be selected by lot in such manner as the Registrar shall
determine.
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Page 1 - Exhibit B March 19, 1993
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Year
Amount 0120-1300
The County reserves the right to redeem all or any portion of the Bonds maturing
after December 1, 2002, with maturities selected by the County, by lot within a maturity, on
December 1, 2002, and on any interest payment date thereafter, on the following dates at the
following prices expressed as percentages of the principal amount, plus accrued interest to the
date fixed for redemption:
If redeemed on:
Redemption Price
December 1, 2002, and June 1, 2003 101.0%
December 1, 2003, and thereafter 100.0%
Amounts paid to redeem Bonds by optional redemption will be applied to reduce
the amount of Bonds subject to mandatory redemption in order of scheduled mandatory
redemption.
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.
Any transfer of this Bond must be registered, as provided in the Resolution, upon
the bond register kept for that purpose at the principal corporate trust office of the Registrar.
This Bond may be registered only by surrendering it, together with a written instrument of
transfer which is satisfactory to the Registrar and which is executed by the registered owner or his
duly authorized attorney. 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 Resolution. The County and the Registrar may treat the person in whose name
this Bond is registered on the bond register as its absolute owner for all purposes, as provided in
the Resolution.
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.
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Page 2 - Exhibit B March 19,1993
0120-1307
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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
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 limit prescribed by such Constitution and statutes; and that the Board of
County Commissioners has provided for the levying annually of a direct ad valorem tax upon all
the property within the County so taxable for its purposes in an amount sufficient, with other
available funds, to pay the interest on and the principal of the Bonds of such issue as such
obligations become due and payable.
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Page 3 - Exhibit B March 19,1993
oizo-»1309
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 full 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.
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Page 5 - Exhibit B March 19,1993