1995-35611-Resolution No. 95-132 Recorded 10/12/1995REVIEWED
950035611 LEG L60UNSEL
BEFORE THE BOARD OF COUNTY COMMISSIONERS FOR DESCHUTES COUNTY, OREGON
ACTING AS THE GOVERNING BODY OF THE BEND LIBRARY COUN l�y!FE ff F
A Resolution Authorizing the Issuance and )
Negotiated Sale of Bond Anticipation Notes in an ) L yy C t ;
Amount Not to Exceed $2,500,000 for Library )
Service Facilities. 014s-PO14o
Resolution No. 95-132
WHEREAS, the Board of County Commissioners of Deschutes County, Oregon
(the "Board") as the governing body of the Bend Library County Service District, Deschutes
County, Oregon (the "District"), called an election on September 19, 1995, at which time the
voters approved the issuance and sale of general obligation Notes in an amount not to exceed
$7,950,000, to fund library facilities (the "Project").
WHEREAS, the Board finds that there is an immediate need for funds to finance,
in part, acquisition of property, site preparation, professional services and related costs;
NOW THEREFORE, BE IT RESOLVED by the Board of County Commissioners
for Deschutes County, Oregon, as the governing body of the Bend County Library Service
District as follows:
Section 1. Authorization.
1.1. The District shall issue its Bond Anticipation Notes, Series 1995 (the
"Notes") to partially finance the Project in the District, and to pay costs of issuance of issuing the
Notes. The Notes shall be issued in a principal amount of not more than $2,500,000, and shall be
sold at a net true interest cost of not more than six percent (6%) per annum. The District hereby
appoints Seattle -Northwest Securities Corporation to serve as financial advisor, Preston Gates &
Ellis to serve as Note counsel, and First Bank National Association to serve as Paying Agent and
Registrar. The County Administrator or his designee (the "Administrator") acting on behalf of the
Board, may, on behalf of the District and in consultation with its financial advisor:
1.1.1. 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
Notes;
1.1.2. establish the final principal amount, maturity interest rate, redemption
terms, payment terms and dates, and other terms of the Notes, and the terms under which the
Notes are offered for sale;
1.1.3. participate with the financial advisor to negotiate the sale of the Notes
and execute the Note Purchase Agreement; K1ti.
'`D
1.1.4. take any other action and appoint such professionals as required in OCT1995
connection with the Notes which the Administrator finds will be advantageous to the District.
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1995
0148-0141
Section 2. Security.
The Notes are payable from the proceeds of any bonds sold pursuant to the
measure approved by the voters on September 19, 1995. The District will use its best efforts to
sell the bonds and will apply such portions of the bond proceeds as may be required to pay the
principal and interest on the Notes at maturity or prior redemption.
Section 3. Note Book -Entry Only Form.
3.1. The Notes shall be initially issued in book -entry only form, with no physical
Notes being made available to Noteowners. The Administrator shall execute and deliver a letter
of representations to The Depository Trust Company, New York, New York ("DTC") for the
Notes, in form and substance satisfactory to DTC. So long as the Notes are in book -entry only
form:
3.1.1. Ownership of the Notes 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 Note shall be initially issued in the form of a global Note. The Note shall
be registered in the name of Cede & Co. as nominee of DTC as the owner of the Note, and
such global Note shall be lodged with DTC until early redemption or maturity of the Note
issue.
3.1.2. The District's Paying Agent or any successor paying agent appointed by
the District (the "Paying Agent") shall remit payment for the maturing principal of and interest
on the Notes to DTC as owner of the Notes for distribution by the nominee to the beneficial
owners by recorded entry on the books of DTC participants and correspondents. While the
Notes are in book -entry only form, the Notes will be available in denominations of $5,000 or
any integral multiple thereof.
Notes, or
3.2. In the event:
3.2.1. DTC determines not to continue to act as securities depository for the
3.2.2. the District determines that DTC shall no longer so act-,
then the District will discontinue maintaining the Notes in the book -entry only
form with DTC.
3.3. Notwithstanding the provisions regarding exchange and transfer of Notes set
forth in this resolution, while the Notes are in book -entry only form they may not be transferred
or exchanged on the registration books maintained by the Paying Agent except:
below;
3.3.1. to any successor depository designated by the District as provided
3.3.2. to any successor nominee designated by a depository; or
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0148-0142
3.3.3. if the District elects to discontinue maintaining the Notes in book -entry
only form, the District shall cause the Paying Agent to authenticate and deliver replacement
physical Notes in fully registered form in authorized denominations in the names of the
beneficial owners or their nominees; thereafter the provisions set forth in Section 6, below,
regarding registration, transfer and exchange of Notes shall apply.
3.4. Upon the resignation of any institution acting as depository hereunder, or if
the District determines that continuation of any institution in the role of depository is not in the
best interests of the beneficial owners, the District shall attempt to identify another institution
qualified to act as depository hereunder or shall discontinue maintaining the Notes in book -entry
only form by resolution or ordinance. If the District is unable to identify such successor
depository prior to the effective date of the resignation, the District shall discontinue maintaining
the Notes in book -entry only form as provided above.
3.5. With respect to Notes registered in the registration books maintained by the
Paying Agent in the name of the nominee of DTC, the District 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:
3.5.1. the accuracy of the records of DTC, the nominee or any participant or
correspondent with respect to any beneficial owner's interest in the Notes;
3.5.2. the delivery to any participant or correspondent or any other person of
any notice with respect to the Notes, including any notice of prepayment;
3.5.3. the selection by DTC of the beneficial interest in Notes to be redeemed
prior to maturity; or
3.5.4. the payment to any participant, correspondent, or any other person
other than the registered owner of the Notes as shown in the registration books maintained by
the Paying Agent, of any amount with respect to principal or interest on the Notes.
3.6. So long as the Notes 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 Notes
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 Notes called for
redemption or of any other action premised on such notice.
3.7. The District shall pay or cause to be paid all principal and interest on the
Notes 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 District's obligation with respect to
payment thereof to the extent of the sum or sums so paid.
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3.8. Upon delivery by DTC to the District 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 District shall promptly deliver a copy thereof to the Paying Agent. DTC shall
tender the Notes it holds to the Paying Agent for reregistration.
3.9. 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 Notes issued in
book -entry only form.
Section 4. Optional Redemption
4.1. The Notes shall be subject to redemption, in whole, at the option of the
District, on April 15, 1996 and on any day thereafter at par plus accrued interest to the date of
redemption upon prior written notice as hereinafter provided.
Section 5. Notice of Redemption of Notes.
5.1. Notice of Redemption (DTC). So long as the Notes 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
Notes.
5.2. Notice of Redemption (No DTC). During any period in which the Notes are
not in book -entry only form, unless waived by any Owner of the Notes to be redeemed, official
notice of any redemption of Notes shall be given by the Paying Agent on behalf of the District 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 Note or
Notes to be redeemed at the address shown on the Note register or at such other address as is
furnished in writing by such owner to the Paying Agent. The District 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:
5.2.1. the redemption date;
5.2.2. the redemption price;
5.2.3. that on the redemption date the redemption price will become due and
payable upon the Note and that interest thereon shall cease to accrue from and after said date;
and
5.2.4. the place where such Notes are to be surrendered for payment of the
redemption price, which place of payment shall be the principal office of the Paying Agent.
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Section 6. Authentication, Registration and Transfer.
6.1. No Note 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 Notes to be delivered at closing of the Notes, and shall additionally
authenticate all Notes properly surrendered for exchange or transfer pursuant to this resolution.
6.2. The ownership of all Notes shall be entered in the Note register maintained by
the Paying Agent, and the District and the Paying Agent may treat the person listed as owner in
the Note register as the owner of the Note for all purposes.
6.3. While the Notes are in book -entry only form, the Paying Agent shall transfer
Note principal and interest payments in the manner required by DTC.
6.4. If the Notes 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 Noteowners as they appear on the Note
register as of the fifteenth day of the month preceding an interest payment date (the "Record
Date"). If payment is so mailed, neither the District nor the Paying Agent shall have any further
liability to any party for such payment.
6.5. Notes may be exchanged for an equal principal amount of Notes which are in
different denominations, and Notes may be transferred to other owners if the Noteowner submits
the following to the Paying Agent:
6.5.1. written instructions for exchange or transfer satisfactory to the Paying
Agent, signed by the Noteowner or attorney in fact and guaranteed or witnessed in a manner
satisfactory to the Paying Agent and
6.5.2. the Notes to be exchanged or transferred.
6.6. The Paying Agent shall not be required to exchange or transfer any Notes
submitted to it during any period beginning with a Record Date and ending on the payment date.
6.7. The Paying Agent shall note the date of authentication on each Note. The
date of authentication shall be the date on which the Noteowner's name is listed on the Note
register.
6.8. For purposes of this section, Notes shall be considered submitted to the
Paying Agent on the date the Paying Agent actually receives the materials described in
Section 6.5.
6.9. The District may alter these provisions regarding registration and transfer by
mailing notification of the altered provisions to all Noteowners. 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.
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Section 7. Form of Registered Note.
The District may issue the Notes as one or more typewritten, temporary Notes
which shall be exchangeable for definitive Notes when definitive Notes are required. The Note
shall be in substantially the form attached hereto as Exhibit A. The Notes shall be signed by
facsimile signature of the Board of County Commissioners of Deschutes County Chair and the
Administrator.
Section 8. Maintenance of Tax -Exempt Status.
8.1. The District covenants for the benefit of the owners of the Notes to comply
with all provisions of the Internal Revenue Code of 1986, as amended (the "Code") which are
required for Note interest to be excluded from gross income for federal income tax purposes. The
District makes the following specific covenants with respect to the Code:
8.1.1. The District shall not take any action or omit any action, if it would
cause the Notes to become "arbitrage Notes" 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.
8.1.2. The District shall operate the facilities financed with the Notes so that
the Notes are not "private activity bonds" within the meaning of Section 141 of the Code.
8.2. The covenants contained in this Section and any covenants in the closing
documents for the Notes shall constitute contracts with the owners of the Notes, and shall be
enforceable by them.
Section 9. Defeasance.
The District may defease the Notes by setting aside, with a duly appointed escrow
agent, in a special escrow account irrevocably pledged to the payment of the Notes 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 least equal
to the principal amount of the Notes 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 Notes shall be paid hereunder, and shall cease to be entitled to any lien, benefit or security
under this Note Resolution except the right to receive payment from such special escrow account;
such Notes shall not for any purpose of this Note Resolution be deemed outstanding.
Section 10. Bank Designation.
The District designates the Notes as "qualified tax-exempt obligations" pursuant to
Section 265(b)(3) of the Code. The District (and all subordinate entities thereof, if any) does not
reasonably expects to issue more than $10,000,000 of tax-exempt obligations during the current
calendar year.
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Section 11. Undertaking to Provide Ongoing Disclosure.
This Section 11 describes the District's obligation under Section (b)(5) of the
Securities and Exchange Commission's Rule 15c2-12 (the "Rule") relating to ongoing disclosure.
The District does not have more than $10,000,000 in aggregate principal amount of outstanding
municipal securities, including the Notes. The provisions of paragraph (b)(5) of the Rule do not
apply to the Notes because paragraph (d)(2)(ii) and paragraph (d)(2)(iii) of the Rule (relating to
issuers with no more than $10,000,000 of outstanding municipal securities) do not apply to an
offering of municipal securities commencing prior to January 1, 1996.
Adopted this 11th day of October, 1995.
Board of County Commissioners of Deschutes
County, Oregon, acting as the governing body of
the Bend Library County Service District
Chai
Commission4r J,
CompAssioner
Attest:
Q-t�, - )2:�
Recording Secretary
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EXHIBIT A
FORM OF NOTE
Bend Library County Service District
Deschutes County, Oregon
Bond Anticipation Notes, Series 1995
Dated Date: October 15, 1995
Interest Rate: %
Maturity Date: October 15, 1996
CUSIP Number:
Registered Owner: ----- Cede & Co. -----
Principal Amount: ----- Dollars -----
THE BEND LIBRARY COUNTY SERVICE DISTRICT, in Deschutes County,
State of Oregon (the "District"), 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 upon maturity or prior redemption. 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 Note is one of an authorized issue of Notes by the District entitled Bond
Anticipation Notes, Series 1995, in the aggregate principal amount of $2,500,000 (the "Notes"),
and is issued by the District to finance library improvements pursuant to a resolution of the
District, dated October 11, 1995 (the "Resolution") and Oregon Revised Statutes 288.165, in full
and strict accordance and compliance with all of the provisions of the Constitution and Statutes of
the State of Oregon.
The District reserves the right to redeem all of the Notes April 15, 1996, and on
any day thereafter at par plus accrued interest to the date of 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 Resolution. Interest on
the Note so called for redemption shall cease on the redemption date designated in the notice.
The Registrar, will notify The Depository Trust Company promptly of any Notes called for
redemption.
Any transfer of this Note must be registered, as provided in the Resolution, upon
the Note register kept for that purpose at the principal corporate trust office of the Registrar.
This Note may be registered only by surrendering it, together with a written instrument of transfer
EXHIBIT A - FORM OF NOTE - Page No. 1 JARMBEND-LIB\RESELECIDOC
0148-0148
which is satisfactory to the Registrar and which is executed by the registered owner or his duly
authorized attorney. Upon registration, a new registered Note or Notes, 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 District and the Registrar may treat the person in whose name this Note is
registered on the Note register as its absolute owner for all purposes, as provided in the
Resolution.
The Notes are initially issued as a book -entry -only security issue with no
certificates provided to the Noteowners. Records of Note 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 Notes shall be
issued in the form of registered Notes without coupons in the denominations of $5,000 or any
integral multiple thereof. Such Notes may be exchanged for Notes of the same aggregate
principal amount, but different authorized denominations, as provided in the Resolution.
Any transfer of this Note must be registered, as provided in the Resolution, upon
the Note register kept for that purpose by the Registrar. Upon registration, a new registered Note
or Notes, 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 Registrar and the Issuer may treat the
person in whose name this Note is registered as its absolute owner for all purposes, as provided in
the Resolution.
The Noteowner may exchange or transfer this Note 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
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 Note 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
Note is a part, and all other obligations of such District, are within every debt limitation and other
limits prescribed by such Constitution and Statutes.
EXHIBIT A - FORM OF NOTE - Page No. 2 JARMBEND-LIMMELEC2DOC
0148-0149
IN WITNESS WHEREOF, the Board of County Commissioners of Deschutes
County, Oregon as the governing body of the District, has caused this Note to be signed by
facsimile signature of its Chair and attested by facsimile signature of its Administrator, as of the
date indicated above.
Bend Library County Service District
Chair, Board of County Commissioners of
Deschutes County, Oregon
Attest:
Administrator
This Note shall not be valid unless properly authenticated by the Registrar in the
space indicated below.
Dated:
Certificate of Authentication
This is one of the District's Bond Anticipation Notes, Series 1995, issued pursuant
to the Resolution described herein.
First Bank National Association, as Registrar
Authorized Officer
Assignment
FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto
[Please insert social security or other identifying number of assignee]
this Note and does hereby irrevocably constitute and appoint
as attorney to transfer this Note on the books kept
for registration thereof with the full power of substitution in the premises.
EXHIBIT A - FORM OF NOTE - Page No. 3
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Dated:
NOTICE: The signature to this assignment must correspond with the name of the Registered
Owner as it appears upon the face of this Note 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 Note,
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.
EXHIBIT A - FORM OF NOTE - Page No. 4 JARMBEND-LB3U2ESELECIDOC