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2003-1018-Resolution No. 2003-085 Recorded 7/2/2003REVIEWED 4��- - LEGAL COUNSEL DESCHUTES COUNTY OFFICIAL RECORDS �, 4003■lOiB NANCY BLANKENSHIP,-COUNTY CLERK COMMISSIONERS' JOURNAL , 11111111111111111111111111111111 07/44/2003 04,48.41 PM For Recording Stamp Only BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON ACTING AS THE GOVERNING BODY OF THE BEND LIBRARY COUNTY SERVICE DISTRICT A RESOLUTION AUTHORIZING ISSUANCE AND SALE OF GENERAL OBLIGATION REFUNDING BONDS, SERIES 2003. * RESOLUTION NO. 2003-085 WHEREAS, the Board of County Commissioners of Deschutes County is the governing body of the Bend Library County Service District, Deschutes County, Oregon (the "District"); and WHEREAS, the District is authorized pursuant to the Oregon Constitution and laws of the State of Oregon to issue refunding bonds to refund its outstanding general obligation bonds; and WHEREAS, issuing refunding bonds to refund the callable portion of the District's outstanding General Obligation Bonds, Series 1996 (the "Refundable Bonds") may benefit the District and its taxpayers by reducing debt service costs; and WHEREAS, pursuant to ORS 288.620 the approval of the State Treasurer is required before such refunding bonds may be issued to refund the Refundable Bonds because the refunding of the Refundable Bonds constitutes an advance refunding; and, WHEREAS, a refunding plan must be submitted to the State Treasurer demonstrating that the refunding will produce debt service savings before the State Treasurer may approve the refunding of the Refundable Bonds; and, Page 1 — Resolution hArny documents\03-04 resolutions\res no. 2003-085 bend fibra y go bonds.doc WHEREAS, Western Financial Group has prepared a refunding plan for the Refundable Bonds; and WHEREAS, the District expects to issue refunding bonds to refund the Refundable Bonds if the State Treasurer approves of the refunding; now, therefore, follows: BE IT RESOLVED by the Board of Commissioners of Deschutes County as Section 1. Plan Submission; Experts. Wester Financial Group is hereby appointed financial advisor for the proposed refunding bonds and is hereby authorized, on behalf of the District, to submit a refunding plan for the Refundable Bonds to the State Treasurer for review and approval, and Preston Gates & Ellis LLP is appointed bond counsel. Section 2. Bonds Authorized. For the above purpose, the District shall issue its General Obligation Refunding Bonds, Series 2003 (the "Refunding Bonds") to refund the Refundable Bonds. The Refunding Bonds may only be issued to refund the Refundable Bonds upon approval by the State Treasurer. The Finance Director of Deschutes County or the Finance Director's designee (the "District Official"), on behalf of the District, and without further action by the Board of County Commissioners, acting as the governing body of the District (the "Board"), may: 2.1. Participate in the preparation and authorize the distribution of a preliminary official statement or other disclosure document for the Refunding Bonds; 2.2. Solicit competitive bids for the purchase of the Refunding Bonds and award their sale to the bidder offering the most favorable terms to the District, or select one or more underwriters, negotiate the terms of the sale of the Refunding Bonds, and sell the Refunding Bonds to those underwriters; 2.3. Appoint and enter into agreements with a paying agent for the Refunding Bonds (the "Paying Agent"), escrow agents, verification agents and other professionals and service providers; 2.4. Establish the principal amount, interest rates, redemption terms, payment dates and other terms of the Refunding Bonds are sold at a true interest cost of not to exceed 3.75%, provided that the Refunding Bonds issued to refund the Refundable Bonds must produce debt service savings having a present value of not less than three percent of the principal amount of the respective Refunding Bonds; 2.5. Irrevocably call for redemption all or certain series of the Refundable Bonds on the earliest date on which such Refundable Bonds are subject to redemption; Page 2 — Resolution hAtny documents\03-04 resolutions\res no. 2003-085 bend libray go bonds.doc 2.6. Execute and deliver an escrow deposit agreement (the "Escrow Deposit Agreement") and authorize the purchase of securities to be held under the Escrow Deposit Agreement; 2.7. Determine whether the Refunding Bonds are "qualified tax-exempt obligations" pursuant to Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the "Code"); and 2.8. Issue, sell and deliver the Refunding Bonds, and execute and deliver any related certificates or documents which are reasonably required to refund the Refundable Bonds in accordance with this resolution. Section 3. Refunding ]Bond Book -Entry Form. 3.1. The Refunding Bonds shall be initially issued in book -entry form, with no Refunding Bonds being made available; to the Bondowners. The District Official shall execute and deliver letters of representations to The Depository Trust Company, New York, New York ("DTC") for the Refunding Bonds, in firm and substance satisfactory to DTC. So long as the Refunding Bonds are in book -entry form: 3.1.1. Ownership of the Refunding 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 Refunding 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 Refunding Bond, and such global bonds shall be lodged with DTC until early redemption or maturity of the Refunding Bond issue. 3.1.2. The Registrar shall remit payment for the maturing principal and interest on the Refunding Bonds to DTC as owner of the Refunding Bonds for distribution by the nominee to the beneficial owners by recorded entry on the books of DTC participants and correspondents. While the Refunding Bonds are in book -entry form, the Refunding Bonds will be available in denominations of $5,000 or any integral multiple thereof. 3.2. In the event DTC determines not to continue to act as securities depository for the Refunding Bonds, or the District determines that DTC shall no longer so act; then the District will discontinue maintaining the Refunding Bonds in the book -entry form with DTC. 3.3. Notwithstanding the provisions regarding exchange and transfer of Refunding Bonds set forth in this resolution, while the Refunding Bonds are in book -entry form they may not be transferred or exchanged on the registration books maintained by the Paying Agent except: 3.3.1. to any successor depository designated by the District as provided below; Page 3 — Resolution h \my documents\03-04 resolutions\res no. 2003-085 bend library go bonds.doc 3.3.2. to any successor nominee designated by a depository; or 3.3.3. if the District elects to discontinue maintaining the Refunding Bonds in book -entry form, the District shall cause the Paying Agent to authenticate and deliver replacement Refunding 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 Refunding Bonds 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 Refunding Bonds in book -entry 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 Refunding Bonds in book -entry form as provided above. 3.5. With respect to Refunding Bonds 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 Refunding Bonds; 3.5.2. the delivery to any participant or correspondent or any other person of any notice with respect to the Refunding Bonds, including any notice of prepayment; 3.5.3. the selection by DTC of the beneficial interest in Refunding Bonds 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 Refunding Bonds as shown in the registration books maintained by the Paying Agent, of any amount with respect to principal or interest on the Refunding Bonds. 3.6. So long as the Refunding 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 Refunding 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 Refunding Bonds called for redemption or of any other action premised on such notice. Neither the District 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 Refunding Bonds or any error or delay relating thereto. Page 4 — Resolution hArny documents\03-04 resolutions\res no. 2003-085 bend library go bonds.doc 3.7. The District shall pay or cause to be paid all principal and interest on the Refunding 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. 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 Refunding Bonds it holds to the Paying Agent for reregistration. 3.9. 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 4. Optional Redemption. The Refunding Bonds shall be subject to redemption on the terms established by the District Official. The District reserves the right to purchase the Refunding Bonds in the open market. Section 5. Notice of Redemption of Bonds. 5.1. Notice of Redemption (DTC). So long as the Refunding 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 representations submitted to DTC in connection with the issuance of the Refunding Bonds. 5.2. Notice of Redemption (No DTC). During any period in which the Refunding Bonds are not in book -entry form, unless waived by any Owner of the Refunding Bonds to be redeemed, official notice of any redemption of Refunding Bonds 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 Refunding 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 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, Page 5 — Resolution hArny documents\03-04 resolutions\res no. 2003-085 bend library go bonds.doc 5.2.3. if less than all outstanding Refunding Bonds are to be redeemed, the identification (and, in the case of partial redemption, the respective principal amounts) of the Refunding Bonds to be redeemed, 5.2.4. that on the redemption date the redemption price will become due and payable upon each such Refunding Bond or portion thereof called for redemption, and that interest thereon shall cease to accrue from and after said date, and 5.2.5. the place where such Refunding Bonds are to be surrendered for payment of the redemption price, which place of payment shall be the principal office of the Paying Agent. 5.2.6. Prior to any redemption date, the District shall deposit with the Registrar an amount of money sufficient to pay the redemption price of all the Refunding Bonds or portions of Refunding Bonds which are to be redeemed on that date. 5.2.7. Official notice of redemption having been given as aforesaid, the Refunding Bonds or portions of Refunding 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 District shall default in the payment of the redemption price) such Refunding Bonds or portions of Refunding Bonds shall cease to bear interest. Upon surrender of such Refunding Bonds for redemption in accordance with said notice, such Refunding 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 Refunding Bond, there shall be prepared for the registered owner a new Refunding Bond or Refunding 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. Section 6. Authentication, Registration And Transfer. 6.1. No Refunding 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 Refunding Bonds to be delivered at closing of the Refunding Bonds, and shall additionally authenticate all Refunding Bonds properly surrendered for exchange or transfer pursuant to this resolution. 6.2. The ownership of all Refunding 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 Refunding Bond for all purposes. 6.3. While the Refunding Bonds are in book -entry form, the Paying Agent shall transfer Refunding Bond principal and interest payments in the manner required by DTC. Page 6 — Resolution hArny documents\03-04 resolutions\res no. 2003-085 bend library go bonds.doc 6.4. If the Refunding 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 Refunding 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. 6.5. Refunding Bonds may be exchanged for an equal principal amount of Refunding Bonds of the same maturity which are in different denominations, and Refunding Bonds may be transferred to other owners if the Refunding Bondowner submits the following to the Paying Agent: 6.5.1. written instructions for exchange or transfer satisfactory to the Paying Agent, signed by the Refunding Bondowner or attorney in fact and guaranteed or witnessed in a manner satisfactory to the Paying Agent; and 6.5.2. the Refunding Bonds to be exchanged or transferred. 6.6. The Paying Agent shall not be required to exchange or transfer any Refunding Bonds submitted to it during any period beginning with a Record Date and ending on the next following payment date; however, such Refunding Bonds shall be exchanged or transferred promptly following that payment date. 6.7. The Paying Agent shall note the date of authentication on each Refunding Bond. The date of authentication shall be the date on which the Refunding Bondowner's name is listed on the bond register. 6.8. For purposes of this section, Refunding Bonds shall be considered submitted to the Paying Agent on the date the Paying Agent actually receives the materials described in Section 5. 6.9. The District may alter these provisions regarding registration and transfer by mailing notification of the altered provisions to all Refunding 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 For Refunding Bonds. Pursuant to ORS 288.160 the District may issue general obligation bonds to refund general obligation bonds which were issued for capital construction or improvements, upon compliance with the provisions of that statute. The Refundable Bonds were issued for capital construction and improvements, and the Refunding Bonds shall be issued in compliance with ORS 288.160. Accordingly, the Refunding Bonds shall replace the Refundable Bonds which are refunded by the Refunding Bonds, and the full faith and credit of the District are pledged to the successive owners of each of the Refunding Bonds for the punctual payment of such obligations, when due. The District shall levy annually, as provided by law, a direct ad valorem tax upon all of the taxable property within the District in sufficient amount, after Page 7 — Resolution hAnny documents\03-04 resolutions\res no. 2003-085 bend library go bonds.doc 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 Refunding Bonds, to pay the Refunding Bonds promptly as they mature. The District covenants with the owners of the Refunding Bonds to levy such a tax annually during each year that any of the Refunding Bonds, or bonds issued to refund them, are outstanding. Section 8. Refunding Bond Credit Enhancement. The District Official may apply for credit enhancement for the Refunding Bonds, and may expend Refunding Bond proceeds to pay any premium or fee for such credit enhancement. Section 9. Form of Refunding Bonds. The Refunding Bonds shall be in substantially the form attached hereto as Exhibit A, with such changes as may be approved by the District Official. The Refunding Bonds may be printed or typewritten, and may be issued as one or more temporary Refunding Bonds which shall be exchangeable for definitive Refunding Bonds when definitive Refunding Bonds are available. Section 10. Execution. The Refunding Bonds shall be executed on behalf of the District with the facsimile signatures of the Chair of the Board and the District Official. Section 11. Tax -Exempt Status. 11.1. The District covenants to use the proceeds of the Refunding Bonds, and the facilities financed with the Refundable Bonds, and to otherwise comply with the provisions of the Code so that interest paid on the Refunding Bonds will not be includable in gross income of the bondowners. The District specifically covenants: 11.1.1. to comply with the "arbitrage" provisions of Section 148 of the Code, and pay any rebates due to the United States on the gross proceeds of the Refunding Bonds; 11.1.2. to yield restrict and pay any rebates due to the United States on any unexpended proceeds of the Refundable Bonds; and 11.1.3. to operate the facilities which were financed with the proceeds of the Refundable Bonds, and any facilities which are financed with the unexpended proceeds of the Refundable Bonds, so that the Refunding Bonds are not "private activity bonds" under Section 141 of the Code. 11.2. The District Official may enter into covenants on behalf of the District to protect the tax-exempt status of the Refunding Bonds. Page 8 — Resolution hArny documents\03-04 resolutions\res no. 2003-085 bend library go bonds.doc Section 12. Escrow. The net proceeds of the Refunding Bonds shall be placed in irrevocable escrow, pursuant to the Escrow Deposit Agreement. The Escrow Agent or the District Official are hereby authorized to subscribe for and purchase the government obligations to be placed in the escrow, on behalf of the District. Section 13. Defeasance. If the District: 13.1. irrevocably deposits money or noncallable Government Obligations in escrow with an independent trustee or escrow agent which are calculated to be sufficient for the payment of Refunding Bonds which are to be defeased; and, 13.2. files with the escrow agency or trustee an opinion from an independent, certified public accountant to the effect that the money and the principal and interest to be received from the Government Obligations are calculated to be sufficient, without further reinvestment, to pay the defeased Refunding Bonds when due; and, 13.3. files with the escrow agent or trustee an opinion of nationally recognized bond counsel that the proposed defeasance will not cause the interest component of the Refunding Bonds to be includable in gross income under the Code; then the District shall be obligated to pay the defeased Refunding Bonds solely from the money and Government Obligations deposited with the escrow agent or trustee, and the District shall have no further obligation to pay the defeased Refunding Bonds from any source except the amounts deposited in the escrow. For purposes of this section, "Government Obligations" means direct obligations of the United States, or obligations the principal of and interest on which are fully and unconditionally guaranteed by the United States. Page 9 — Resolution hArny documents\03-04 resolutions\res no. 2003-085 bend library go bonds.doc Dated this 2nd day of JULY, 2003. ATTEST: Recording Secretary Name Dennis R. Luke Tom DeWolf Michael M. Daly ATTEST: U111 �i Recording Secretary BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON, ACTING AS THE GOVE G BODY OF THE BEND LIBRARY =Y SERVICE DISTRICT NNIS R. LUKE, Chair TOM DEW LF, Co si er M 11CHWE L M. AL , Co issioner Yes No Abstain Absent Page 10 —Resolution hArny documents\03-04 nmolutions\res no. 2003-085 bend fibra y go bonds.doc No. R-<<BondNumber» EXHIBIT A (Form of Bond) United States of America Bend Library County Service District Deschutes, Oregon General Obligation Refunding Bonds Series 2003 Dated Date: , 2003 Interest Rate Per Annum: <<CouponRate»% Maturity Date: «MaturityYear» CUSIP Number: <<CUSIPNumbr» Registered Owner: -----Cede & Co. ----- Principal Amount:-----<<PrincipalAmtSpelled» Dollars ----- $ <<PrincipalAmtNumber» 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 Maturity Date indicated above 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 —and the first day of in each year until maturity or prior redemption, commencing , 200 . Payment of each installment of principal or interest shall be made to the Registered Owner hereof whose name appears on the registration books of the District maintained by the District's paying agent and registrar, which is currently , in , Oregon (the "Registrar") as of the close of business on the fifteenth day of the calendar month immediately preceding the applicable interest payment date. For so long as this Bond is subject to a book -entry -only system, principal and interest payments shall be paid on each payment date to the nominee of the securities depository for the Bonds. On the date of issuance of this Bond, the securities depository for the Bonds is The Depository Trust Company, New York, New York, and Cede & Co. is the nominee of The Depository Trust Company. Such payments shall be made payable to the order of "Cede & Co." This bond is one of a duly authorized series of bonds of the District aggregating $ in principal amount designated as General Obligation Refunding Bonds, Series 2003 (the "Bonds"). The Bonds are issued for the purpose of refunding portions of the District's outstanding General Obligation Bonds, Series 1996. The Bonds are issued under and pursuant to Resolution No. of the District adopted on , 2002 (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 constitute valid and legally binding obligations of the District. The full faith and credit of the District are pledged for the punctual payment of the principal of and interest on the Bonds when due. The District has pledged and is obligated by law to provide for the levy and collection annually of ad valorem taxes without limitation as to rate or amount on all taxable property within the boundaries of the District to pay the principal of and interest on the Bonds. The Bonds do not constitute a debt or indebtedness of the State of Oregon or any political subdivision thereof other than the District. The Bonds are initially issued as a book -entry -only security issue with no certificates provided to the beneficial owners. Records of ownership of beneficial interests in the Bonds will be maintained by The Depository Trust Company and its participants. Should the book -entry only security system be discontinued, the District shall cause the Registrar to authenticate and deliver replacement Bonds in fully registered form in authorized denominations in the names of the beneficial owners or their nominees, as provided in the Resolution. Any exchange or transfer of this Bond must be registered, as provided in the Resolution. [Insert Redemption Terms] MMW .TAYTON? TAYA DOC l M,2 )3 Unless the book -entry -only system is discontinued, notice of any call for redemption shall be given as required by the Blanket Issuer Letter of Representations to The Depository Trust Company, as referenced in the Resolution. Interest on any Bond or Bonds so called for redemption shall cease on the redemption date designated in the notice. The Registrar will notify The Depository Trust Company of any Bonds called for redemption not less than 30 days prior to the date fixed for redemption. If the book -entry -only system is discontinued, notice of redemption shall be given by first-class mail, postage prepaid, not less than thirty days nor more than sixty days prior to the date fixed for redemption to the Registered Owner of each Bond to be redeemed at the address shown on the Bond register, as described in the Resolution. Unless this Bond is presented by an authorized representative of The Depository Trust Company to the District or the Registrar for registration of transfer, exchange or payment, and any Bond 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. This Bond shall remain in the Registrar's custody subject to the provisions of the FAST Balance Certificate Agreement currently in effect between the Registrar and The Depository Trust Company. 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 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 and Statutes; 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 has caused this bond to be signed by facsimile signature of its Chair and attested by facsimile signature of its District Official as of the date indicated above. Bend Library County Service District Deschutes County, Oregon , Chair , District Official THIS BOND SHALL NOT BE VALID UNLESS PROPERLY AUTHENTICATED BY THE REGISTRAR IN THE SPACE INDICATED BELOW. CERTIFICATE OF AUTHENTICATION This is one of the $ aggregate principal amount of Deschutes District, Oregon General Obligation Refunding Bonds, Series 2003, issued pursuant to the Resolution described herein. Date of authentication: M:WWR\4TAYTON.92-.D June 311, 20113 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. 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. NOTICE: Signature(s) must be guaranteed by a member of the New York Stock Exchange or a commercial bank or trust company 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. MAIWR%TAYTON.MTAYARR -C J-30,2-