1996-13586-Resolution No. 96-042 Recorded 4/11/199696-135SG
RESOLUTION NO. 96_042
REVIEW
LEGA COUNSEL
01, -11S2e-1635
BEFORE THE BOARD OF COUNTY COMMISSIONERS FOR DESCHUTES COUNTY,
OREGON ACTING AS THE GOVERNING BODY OF THE BEND LIBRARY COUNTY
SERVICE DISTRICT
cy)
A Resolution Authorizing the Issuance of )
General Obligation Bonds to Refund its Bond ) =i
Anticipation Notes, Series 1995, and to Finance
Library Service Facilities and to Pay All Costs ) I-
Incidental Thereto.
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"), submitted to the voters the question of contracting a general
obligation bonded indebtedness in the aggregate sum of $7,950,000 to finance library service
facilities and to pay all costs incidental thereto; and
WHEREAS, the election was duly and legally held on September 19, 1995, 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 District voting at the election; and
WHEREAS, the District issued its Bond Anticipation Notes, Series 1995, in the
amount of $2,500,000, to United States National Bank of Oregon, which are subject to
redemption on April 15, 1996;
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. Issue.
1.1. For the above purposes, the District shall issue its General Obligation Bonds,
Series 1996 (the 'Bonds"), in the amount of Seven Million Nine Hundred Fifty Thousand
($7,950,000), to be dated April 1, 1996, to be in denominations of Five Thousand Dollars
($5,000) or integral multiples thereof, to bear interest payable on December I and June I of each
year until maturity or prior redemption, commencing December 1, 1996, and to mature on June 1
of each year as follows unless term Bonds are bid pursuant to the Official Notice of Bond Sale:
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Date
Amount
Date
Amount
1997
85,000.00
2006
430,000.00
1998
13 5,000.00
2007
470,000.00
1999
180,000.00
2008
520,000.00
2000
225,000.00
2009
5701000.00
2001
250,000.00
2010
625,000.00
2002
280,000.00
2011
685,000.00
2003
315,000.00
2012
745,000.00
2004
350,000.00
2013
815,000.00
2005
385,000.00
2014
885,000.00
Section 2. Bond Book -Entry -Form.
2.1. The Bonds shall be initially issued in book -entry -form, with no Bonds being
made available to the Bondowners. The Finance Director acting on behalf of the Board 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:
2.1.1. 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 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.
2.1.2. 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.
2.1.3. "Term Bonds" means the Bond payable at or before their specified
maturity date or dates from mandatory sinking fund payments established for that purpose
and calculated to retire such bonds on or before their specified maturity date or dates.
2.2. In the event DTC determines not to continue to act as securities depository
for the Bonds, or the District determines that DTC shall no longer so act; then the District will
discontinue maintaining the Bonds in the book -entry -form with DTC.
2.3. 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:
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0152-1638
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.
2.7. The District 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 District's obligation with respect to
payment thereof to the extent of the sum or sums so paid.
2.8. 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 Bonds it holds to the Paying Agent for reregistration.
2.9. 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 3. Mandatory Redemption.
The Bonds maturing in two or more consecutive maturities may be designated as
Term Bonds pursuant to the bid submitted by the successful bidder. Such Term Bonds, if any,
shall be subject to mandatory redemption pursuant to the serial bond schedule established in the
Official Notice of Bond Sale. Amounts paid to redeem bonds by optional redemption will be
applied to reduce the amount of bonds subject to mandatory redemption, if any, in order of
scheduled mandatory redemption.
Section 4. Optional Redemption.
4.1.The Bonds shall be subject to redemption, in whole or in part, at the option of
the District, on June 1, 2006 and on any day thereafter at par plus accrued interest to the date of
redemption upon prior written notice as hereinafter provided.
4.2. Amounts paid to redeem bonds by optional redemption will be applied to
reduce the amount of bonds subject to mandatory redemption, if any, in order of scheduled
mandatory redemption.
Section 5. Notice of Redemption of Bonds (DTC).
5.1. 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 Bonds.
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0152-1640
6.4. In addition to the foregoing notice, further notice shall be given by the
Registrar as set out below, but no defect in said further notice nor any failure to give all or any
portion of such further notice shall in any manner defeat the effectiveness of a call for redemption
if notice thereof is given as above prescribed.
6.4.1. Each further notice of redemption given hereunder shall contain the
information required above for an official notice of redemption plus (i) the CUSIP
numbers of all Bonds being redeemed; (ii) the date of issue of the Bonds as originally
issued; (iii) the rate of interest borne by each Bond being redeemed; (iv) the maturity date
of each Bond being redeemed; and (v) any other descriptive information needed to identify
accurately the Bonds being redeemed.
6.4.2. Each further notice of redemption shall be sent at least 35 days
before the redemption date by registered or certified mail or overnight delivery service to
all registered securities depositories then in the business of holding substantial amounts of
obligations of types comprising the Bonds (such depositories now being Depository Trust
Company of New York, New York, Midwest Securities Trust Company of Chicago,
Illinois, Pacific Securities Depository Trust Company of San Francisco, California and
Philadelphia Depository Trust Company of Philadelphia, Pennsylvania) and to one or more
national information services that disseminate notices of redemption of obligations such as
the Bonds (such as Financial Information, Inc.'s Financial Daily Called Bond Service;
Interactive Data Corporation's Bond Service; Kenny Information Service's Called Bond
Service; Moody's Municipal and Government; and Standard and Poor's Called Bond
Record.)
6.4.3. Each such further notice shall be published one time in The Bond
Buyer of New York, New York or, if such publication is impractical or unlikely to reach a
substantial number of the holders of the Bonds, in some other financial newspaper or
journal which regularly carries notices of redemption of other obligations similar to the
Bonds, such publication to be made at least 30 days prior to the date fixed for redemption.
6.4.4. Upon the payment of the redemption price of Bonds being
redeemed, each check or other transfer of funds issued for such purpose shall bear the
CUSIP number identifying, by issue and maturity, the Bonds being redeemed with the
proceeds of such check or other transfer.
Section 7. Authentication, Registration and Transfer.
7.1. 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.
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0152-1641
7.2. The ownership of all Bonds shall be entered in the bond register maintained
by the Paying Agent, and the District and the Paying Agent may treat the person listed as owner
in the bond register as the owner of the Bond for all purposes.
7.3. While the bonds are in book -entry -form, the Paying Agent shall transfer Bond
principal and interest payments in the manner required by DTC.
7.4. 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 of 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 District nor the Paying Agent shall have any further liability to
any party for such payment.
7.5. 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:
7.5.1. 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
7.5.2. the Bonds to be exchanged or transferred.
7.6. Bonds shall be considered submitted to the Paying Agent on the date the
Paying Agent actually receives these materials described above.
7.7. 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.
7.8. 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.
7.9. The District 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 8. Security.
8.1. The full faith and credit of the District are pledged to the successive owners
of each of the Bonds for the punctual payment of such obligations, when due. The District shall
J:\RDR\BEND-LIB\CTO.96\RESELEC.DOC 7 -Resolution
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0152-1642
levy annually, as provided by law, a direct ad valorem tax upon all of the taxable property within
the District, without limit as to rate or amount, in sufficient amount, after taking into
consideration discounts taken and delinquencies that may occur in the payment of such taxes and
other monies available for the payment of debt service on the Bonds, to pay the Bonds promptly
as they mature, and the District 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 9. Maintenance of Tax -Exempt Status.
9.1. The District 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 District 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 District makes the following specific covenants with respect to the Code:
9.1.1. The District 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(f) of the Code.
9.1.2. The District 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.
9.1.3. The District shall comply with all reporting requirements.
9.1.4. -The District shall pay any required rebates to the federal
government.
9.1.5. 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 10. Designation of Bonds as Qualified Tax -Exempt Obligations.
10.1. The District designates the Bonds as qualified tax-exempt obligations
pursuant to Section 265(b)(3) of the Code. The District covenants not to so designate
tax-exempt obligations in the current calendar year in an aggregate amount of more than
$10,000,000. The District (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 11. Rebate Compliance.
11.1. The District (and all subordinate entities thereof, if any) reasonably expects
to issue tax-exempt obligations in calendar year 1996 which have an aggregate face amount of
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more than $5,000,000. Accordingly, the District hereby covenants to pay to the United States
any rebates required to be paid in connection with the Bonds, unless the District otherwise
qualifies for an exemption, under Section 148(f) of the Code.
Section 12. Defeasance.
12.1. The District 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 least 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 13. Financial Advisor.
13.1. Seattle -Northwest Securities Corporation is hereby retained as the District's
financial advisor and may submit a bid to purchase the Bonds.
Section 14. Sale.
14.1. The Deschutes County Finance Director, acting on behalf of the Board, shall
cause to be published in The Bulletin, Bend, Oregon; the Daily Journal of Commerce, Portland,
Oregon; and The Bond Buyer, New York, New York notices of sale of the Bonds or summaries
thereof in the forms substantially as shown on Exhibit A(1) and A(2) attached hereto and by this
reference incorporated herein, as provided by law. The Bonds shall be sold upon the terms
provided in the Notices of Bond Sale. The Bonds shall be sold upon a determination of the best
bid by the Finance Director in consultation with the District's bond counsel and financial advisor
on the date and at the time and place stated in Exhibit A, unless the Finance Director establishes a
different date, time, or place.
:\RDR\BEND-LIB\0.96\RESELEC.DOCPa e 9 -Resolution
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0152-1644
Adopted this 10th day of April, 1996.
Board of County Commissioners of Deschutes
County, Oregon, acting as the governing body of
the,Aend Library -,County Service District
Nancy Pope �chlangoo, Chair
Barry H. S aughter, Com issioner
If, 41 4, � I e 7 dw::: � �
Ro ert L. Nipper, Commi stoner
Attest:
Recording Secretary
Pae 1 O - Resolution J:\RDR\BEND-LIB\GO.96\RESELEC.DOC
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0152-1645
Exhibit A (1)
Official Notice of Bond Sale
$7,950,000
Bend Library County Service District
Deschutes County, Oregon
General Obligation Bonds
Series 1996
NOTICE IS HEREBY GIVEN that sealed bids will be received on behalf of the
Bend Library County Service District, Deschutes County, Oregon (the "District"), for the
purchase of its General Obligation Bonds, Series 1996 (the "Bonds"), until 10:00 o'clock a.m.
(Pacific Time) on April 25, 1996, at the offices of Preston Gates & Ellis, Lawyers,
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 District within four hours.
ISSUE: The issue shall be in the aggregate principal amount of Seven Million
Nine Hundred Fifty Thousand ($7,950,000), consisting of registered Bonds in denominations of
Five Thousand Dollars ($5;000) or integral multiples thereof, all dated May 1, 1996.
INTEREST RATE: The maximum interest rate shall not exceed a true interest
cost of seven percent (7%) per annum. Interest is payable semiannually on December 1 and
June 1 of each year until maturity or prior redemption, commencing December 1, 1996. 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 8%; and (6) the rate bid for any maturity shall not be
less than the rate bid for any earlier maturity.
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0152-1646
MATURITIES: The Bonds shall mature on June 1 of each year as follows:
Date
Amount
Date
Amount
1997
85,000.00
2006
430,000.00
1998
135,000.00
2007
470,000.00
1999
180,000.00
2008
520,000.00
2000
225,000.00
2009
570,000.00
2001
250,000.00
2010
625,000.00
2002
280,000.00
2011
685,000.00
2003
315,000.00
2012
745,000.00
2004
350,000.00
2013
815,000.00
2005
385,000.00
2014
885,000.00
OPTIONAL DESIGNATION OF TERM BONDS AND MANDATORY
REDEMPTION: The successful bidder may designate one or more term Bonds, which consist of
two or more consecutive maturities, which mature on the maturity date of the last of the
consecutive maturities in an amount equal to the sum of the consecutive maturities, and which are
subject to mandatory redemption at par and by lot in amounts equal to the consecutive maturities
which were combined into term Bonds.
OPTIONAL REDEMPTION:The Bonds shall be subject to redemption, in whole
or in part, at the option of the District, on June 1, 2006 and on any day thereafter at par plus
accrued interest to the date of redemption upon prior written notice as hereinafter provided.
NOTICE OF REDEMPTION: Notice of any call for redemption, unless waived
by the holders of the Bonds to be redeemed, shall be given as required by the Letter of
Representation to The Depository Trust Company or 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 not invalidate the redemption of the Bonds. All Bonds called for redemption shall
cease to bear interest from the date designated in the notice.
BOOK ENTRY ONLY: The bonds are to be issued in registered, book -entry
form only and all bidders of 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 interest of its participants for the transfer of the
interests among its participants. The participants will be responsible for maintaining records
regarding the beneficial ownership interest 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.
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0152--1647
REGISTRATION: The Bonds will be issued in fully registered form, and may be
exchanged at the expense of the District for similar Bonds of different authorized denominations.
Bonds may not be converted to bearer form.
PAYMENT: 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 District, which is currently First Trust Washington, in Portland, Oregon.
PURPOSE: The Bonds are being issued to refund its Bond Anticipation Notes,
Series 1995, and to finance library service facilities and to pay all costs incidental thereto. The
Bonds were authorized at a special election held within the District on September 19, 1995.
SECURITY: The Bonds are general obligations of the District. The District has
covenanted to levy an ad valorem tax annually which, with other available funds, will be sufficient
to pay Bond principal and interest as they come due.
BOND INSURANCE: Application will be made for qualification of the Bonds for
debt service insurance. If the Bonds qualify for municipal bond insurance, any purchase of such
policy shall be at the sole option and expense of the bidder. Failure of the Bonds to be so insured
or of any such policy to be issued shall not in any manner relieve the successful bidder of his
contractual obligations arising from the acceptance of his proposal for the purchase of the Bonds.
LEGAL OPINION: The approving opinion of Preston 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 District.
TAX-EXEMPT STATUS: In the opinion of Bond Counsel, under existing law
and conditioned on the District 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.
CERTIFICATE OF REOFFERING PRICE: The successful bidder shall provide
the County's financial advisor with the reoffering prices and yields within twenty-four hours after
award of the bid. The reoffering prices and yields so provided will be printed on the cover of the
final official statement. In addition, the successful bidder must provide a certificate, satisfactory
to Bond Counsel, containing information which will permit Bond Counsel to determine the "issue
price" of the series, and verifying the accuracy of the reoffering prices and yields which were
certified to the County's financial advisor, not later than seven business days prior to the closing.
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0152-1648
Failure to provide the reoffering prices and yields, or the certificate satisfactory to Bond Counsel,
may result in cancellation of the sale and forfeiture of the successful bidder's good faith deposit.
BEST BID: The Bonds will be awarded to the responsible bidder whose proposal
will result in the lowest true interest cost to the District. True interest cost will be determined by
doubling the semiannual interest rate necessary to discount the debt service to April 1, 1996, and
the price bid for the Bonds. Each bidder is requested to supply the total interest cost and the true
interest cost that the District 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 District.
FORM OF BID: Bids must be for all Bonds, and for not less than 100% of the par
value thereof, plus accrued interest to the date of delivery. Each bid must be signed and may be
submitted on the optional bid form enclosed in the preliminary official statement. Bids may be
telecopied or delivered to the District in care of its Bond Counsel, Preston Gates & Ellis at
503-248-9085 (fax). Bids which are delivered must be enclosed in a sealed envelope addressed to
the District, which is clearly marked as a proposal for the Bonds. The District requests that any
firm planning to telecopy a bid contact the person shown below under "Official Statement and
Further Information" at least one business day prior to the sale. Bidders electing to telecopy bids
bear all risk of failure of the bid to be received by the District in a timely manner, and any
inaccuracies that result from lack of clarity in the telecopied bid which the District receives.
GOOD FAITH DEPOSIT - CHECK OR FINANCIAL SURETY BOND: Each
bid must be accompanied by a good faith deposit in the amount of One Hundred Sixty Thousand
Dollars ($160,000.00). The good faith deposit must be in the form of a certified or cashier's
check drawn on a bank doing business in the State of Oregon or a financial surety bond and
payable to the order of the District. The good faith deposit will be held by the District as security
against any loss resulting from the failure of the bidder to comply with the terms of its bid. The
good faith deposit will be forfeited to the District as liquidated damages in case the bidder to
whom the Bonds are awarded withdraws its bid or fails to complete its purchase of the Bonds in
accordance with the terms thereof, including any failure to purchase the Bonds resulting from the
inability of the bidder to secure delivery of an insurance policy submitted as part of its bid for the
purchase of the Bonds.
If a check is used as good faith deposit, the check must accompany the bid. If a
financial surety bond is used as the good faith deposit, such financial surety bond must be
submitted to the District prior to the opening of the bids. The issuer of the financial surety bond
must be rated in the highest rating category by Moody's Investors Service, Inc., Standard &
Poor's Corporation, or by Fitch Investors Service, Inc., and must identify the bidder whose good
faith deposit is guaranteed by such financial surety bond. If the Bonds are awarded to a bidder
utilizing a financial surety bond as the good faith deposit, then not later than 2:00 p.m. (Pacific
Time) on Friday, April 26, 1996 the successful bidder must send by electronic wire transfer to
such account as the District shall specify, immediately available funds in an amount equal to the
good faith deposit. If such wire transfer is not received from the successful bidder by 2:00 p.m.
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0152-1649
on Friday, April 26, 1996 the financial surety bond may be immediately drawn upon by the
District to satisfy the good faith deposit requirement.
The District reserves the right to cash the good faith deposit check of the
successful bidder, or to retain any good faith deposit delivered by electronic wire transfer,
immediately upon receipt thereof by the District. The District shall be entitled to retain for the
sole and exclusive use and benefit of the District all investment earnings derived from the good
faith deposit prior to the delivery of the Bonds, and in no event shall the successful bidder be
entitled to any such investment earnings (whether by means of a credit or otherwise).
Upon delivery of the Bonds, the successful bidder will receive a credit against the
purchase price of the Bonus in an amount equal to the good faith deposit. Checks representing
the good faith deposits of the unsuccessful bidders will be promptly returned by the District.
DELIVERY: Closing will occur in Portland, Oregon. Delivery of the bonds will
be made at the purchaser's cost to The Depository Trust Company, New York, New York, on or
about May 7, 1996. Payment for the bonds must be made in funds immediately available.
RIGHT OF REJECTION: The District 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, Seattle -Northwest Securities Corporation, 1000 S.W. Broadway,
Suite 1800, Portland, OR 97205, telephone (503) 275-8304, Attention: Mike Lewis.
COMPLIANCE WITH SEC RULES: The District agrees to provide the
successful bidder with up to 150 copies of the official statement in a form "deemed final" by the
District for the Bonds at the expense of the District, 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 District'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 District, in compliance with Section 240.15c2 -12(b)(3) in Chapter II of Title 17 of the Code
of Federal Regulations.
The District further covenants and agrees to enter into a written agreement or
contract, constituting an undertaking to provide ongoing disclosure about the District, for the
benefit of the Bondholders on or before the date of delivery of the Bonds as required by
Section (b)(5)(i) of Rule 15c2-12 of the Securities and Exchange Commission (the "Rule"), which
undertaking shall be a part of the Resolution and in the form as summarized in the Preliminary
Official Statement, with such changes as may be agreed to in writing by the Underwriter. The
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District is in full compliance with each and every undertaking previously entered into by it
pursuant to the Rule.
POTENTIAL BID: The financial advisor may submit a bid or participate in a
bidding syndicate.
CUSIP: CUSIP numbers will be imprinted upon all Bonds of this issue at the
District'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
District 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 District and
this sale may be obtained from Marty Wynne, Finance Director, Bend Library County Service
District, c/o Deschutes County, 1164 N.W. Bond Street, Bend, OR 97701, telephone
(541) 388-6570.
Finance Director
Bend Library County Service District, Deschutes County, Oregon
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Exhibit A(2)
Summary Notice of Bond Sale
$7,950,000
Bend Library County Service District
Deschutes County, Oregon
General Obligation Bonds
Series 1996
NOTICE IS HEREBY GIVEN that sealed bids for the captioned bonds (the
"Bonds") will be received on behalf of Bend Library County Service District, Deschutes County,
Oregon (the "District"), at the office of Preston Gates & Ellis, Lawyers, 3200 U. S. Bancorp
Tower, 111 S.W. Fifth Avenue, Portland, Oregon, 97204, until 10:00 o'clock a.m. (Pacific Time)
on, Thursday,
April 25, 1996.
The Bonds will be dated April 1, 1996, will be in denominations of $5,000 each or
integral multiples thereof, and will mature in varying amounts from June 1, 1997 to June 1, 2014,
inclusive, and are callable on June 1, 2006 at par.
In the opinion of Preston Gates & Ellis, Bond Counsel, assuming compliance by
the District 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 Bond Sale for the Bonds.
The District has designated the Bonds as "qualified tax-exempt obligations"
pursuant to Section 265(b)(3) of the Internal Revenue Code of 1986, as amended.
Complete copies of the Official Notice of Bond Sale will be published in the Daily
Journal of Commerce on April 12, 1996 and in the Preliminary Official Statement for the Bonds,
which is available from the District's financial advisor: Seattle -Northwest Securities Corporation,
1000 S.W. Broadway, Suite 1800, Portland, Oregon 97205, telephone (503) 275-8304;
Attention: Mike Lewis.
Bend Library County Service District,
Deschutes County, Oregon
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No. R -
Exhibit B
Form of Bond
United States of America
Bend Library County Service District
Deschutes County, Oregon
General Obligation Bond
Series 1996
Interest Rate:
Maturity Date:
Certificate Date: April 1, 1996
CUSIP Number: -
Registered Owner: ----
Principal Amount: ----
DOLLARS----
The Bend Library County Service District, Deschutes County, Oregon (the
"District"), 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 interest rate per annum
indicated above, computed on the basis of a 360 -day year of twelve 30 -day months. Interest is
payable semiannually on the first day of June and the first day of December in each year until
maturity or prior redemption, commencing December 1, 1996. 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 duly authorized series of bonds aggregating $7,950,000 in
principal amount designated as General Obligation Bonds, Series 1996 (the "Bonds"). The Bonds
are issued to refund its Bond Anticipation Notes, Series 1995, and to finance library service
facilities. The Bonds are issued under and pursuant to a Resolution of the District adopted on
April 10, 1996 (the 'Resolution"), and in full and strict accordance and compliance with all of the
provisions of the Constitution and Statutes of the State of Oregon.
The Bonds are issuable in the form of registered Bonds without coupons in
denominations of $5,000 or any integral multiple thereof. This Bond may be exchanged for an
equal aggregate principal amount of registered Bonds of the same maturity and of any other
authorized denominations in the manner and subject to the conditions set forth in the Resolution.
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01.52-1653
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The Bonds maturing on 1, , are subject to mandatory
redemption on 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.
Year
Amount
Bonds maturing after June 1, 2006 are redeemable, in whole, on any date, or in
part, on any interest payment date thereafter beginning June 1, 2006, at par plus accrued interest
to the date of redemption.
Amounts paid to redeem bonds by optional redemption will be applied to reduce
the amount of bonds subject to mandatory redemption, if any, in order of scheduled mandatory
redemption.
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 First Trust
Washington, 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 District 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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0152-1654
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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.
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[ and the Charter of the
District]; that the issue of which this bond is a part, and all other obligations of the District, are
within every debt limitation and other limit prescribed by such Constitution, Statutes[ and
Charter]; and that the District has covenanted to levy a tax upon all taxable property within the
District in an amount sufficient, with other available funds, to pay when due the interest on and
the principal of the bonds.
IN WITNESS WHEREOF, the Board of County Commissioners of Deschutes
County as the governing body of the Bend Library County Service District, Deschutes County,
Oregon, has caused this bond to be signed by facsimile signature of its Chair and attested by
facsimile signature of its Finance Director, as of the date indicated above.
Bend Library County Service District,
Deschutes County, Oregon
Chair
Finance Director
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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 Bend Library County Service District, Deschutes County,
Oregon General Obligation Bonds, Series 1996, issued pursuant to the Resolution described
herein.
First Trust Washington, 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 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
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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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