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2003-893-Resolution No. 2003-047 Recorded 5/15/2003REVIEWED L UNSEL DESCHUTES COUNTY OFFICIAL NANCY BLANKENSHIP, COUNTY COMMISSIONERS' JOURNAL IIIIIIIII IIIIIIIIIIIII IIII IIII IIII 2003-000883 CLERKDS CJ 2003.893 05/15/2003 01:29:33 PM For Recording Stamp Only BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON A Resolution Authorizing the Financing of Local Improvement Projects in an amount not to exceed * RESOLUTION NO. 2003-047 $1,420,000. WHEREAS, the County is authorized by Oregon Revised Statutes Section 271.390 to enter into loan or financing agreements to finance real or personal property which the Board of County Commissioners determines is needed; and, WHEREAS, the County is authorized by ORS 287.053 to make these agreements "limited tax bonded indebtedness" which the County is unconditionally obligated to pay; and, WHEREAS, the County is undertaking improvements to a number of local improvement districts ("LIDs"), including three LIDS (Mountain View, Gift Road, Mohawk) which have been completed with signed assessment contracts and various LIDs where construction is in progress, including, but not limited to, Collar, Lazy River, Covina, Hurtley Ranch (collectively, the "LID Projects"); and, WHEREAS, the Board has determined that the LID Projects are needed, and that it is desirable to obtain financing for such LID Projects in the aggregate principal amount of not more than $1,420,000 pursuant to ORS 271.390 and ORS 287.053. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON, as follows: Section 1. Authorization. The Finance Director or the Finance Director's designee (the "Finance Director") is hereby authorized on behalf of the County and without further action by the Board, to: 1.1. Finance the LID Projects, plus any amounts required to pay costs of the financing, in an aggregate principal amount of not more than One Million Four Hundred Twenty Thousand Dollars ($1,420,000). 1.2. Negotiate, execute and deliver one or more loan agreements, credit facilities or other financing documents, which may be secured by notes or other obligations (the "Obligations") for the financing of the LID Projects which obligates the County to repay the principal amounts of the Obligations with interest. PAGE 1 of 3 — RESOLUTION NO. 2003-047 (5/14/03) 1.3. Select one or more commercial banks, negotiate the terms of the Obligations, including the final principal amount, the interest rate or rates which payments shall bear, the County's prepayment rights and other terms of the Obligations. 1.4. Renew, extend or refund the Obligations. 1.5. Take any other action and sign any other documents, certificates, and undertakings required in connection with the execution of the Obligations which the Finance Director finds will be advantageous to the County. Section 2. Security. The Obligations shall constitute a limited tax bonded indebtedness as defined in ORS 287.053 and the obligation of the County to make payments under the Obligations is unconditional. The Finance Director may pledge the County's full faith and credit and taxing power within the limitations of Section 11 and l lb of Article XI of the Oregon Constitution, and any and all of the County's legally available funds, including the proceeds of the Obligations, to make the payments due under the Obligations. Section 3. Maintenance of Tax -Exempt Status. 3.1. The County covenants to comply with all provisions of the Internal Revenue Code of 1986, as amended (the "Code") which are required for interest paid on the Obligations to be excluded from gross income for federal income tax purposes. The County makes the following specific covenants with respect to the Code: 3.1.1. The County shall not take any action or omit any action, if it would cause the Obligations to become "arbitrage bonds" under Section 148 of the Code and shall pay any rebates or penalties to the United States which are required by Section 148(f) of the Code. 3.1.2. The County shall operate the facilities financed or refinanced with the Obligations so that the Obligations are not "private activity bonds" within the meaning of Section 141 of the Code. 3.2. The covenants contained in this Section 3 and any covenants in the closing documents for the Obligations shall constitute contracts with the lenders, and shall be enforceable by them. PAGE 2 OF 3 - RESOLUTION NO. 2003-047 (5/14/03) The foregoing Resolution adopted this 14th day of May, 2003. BOARD OF COUNTY COMMISSIONERS OF DESCHU COUNTY, OREGON NNNIS R. LUKE, Chair TOM DEWOLF, Co er MICHAEL NY DALY, Co issioner Record of Adoption Vote Commissioner Yes No Abstained Excused Dennis R. Luke v Tom DeWolf [/ Michael M. Daly ATTEST: Recording Secretary PAGE 3 OF 3 — RESOLUTION NO. 2003-047 (5/14/03)