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S-953 - 09/14/1999 - FINANCE - Ordinances "Ir ORDINANCE NO. 1999-SC-G-FOP-S-953 ORDINANCE APPROVING AND AUTHORIZING EXECUTION OF AN INSTALLMENT PURCHASE CONTRACT AND THE ISSUANCE OF $820,000 GENERAL FUND CERTIFICATES, SERIES 1999, OF THE VILLAGE OF OAK BROOK, ILLINOIS i BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE E I VILLAGE OF OAK BROOK, ILLINOIS, AS FOLLOWS: E Section 1. Authority and Purpose. This ordinance is adopted pursuant to the i provisions of Section 11-61-3 of the Illinois Municipal Code, 65 Illinois Compiled Statutes 5 (the "Act") and the Local Government Debt Reform Act, 30 Illinois Compiled Statutes 350 (the "Local Government Debt Reform Act") for the purpose of financing the construction of an irrigation system at the Village's 18-hole golf course all in accordance with the plans and specifications prepared for the Village by A.S. Altum & Associates. The foregoing improvements or purposes are oach authorized to be made or undertaken by the Village of Oak Brook, 11!inois. f" t� E Y Tep Section 2. Datermination to ,authorize and Provide for an Installfllent Purtli,0110 Contract. There is presently before the President and Board of Trustees of the Villege (A) the proposal dated June 2, 1999 (the "Proposal") as submitted by Halloran & Yauch, Inc. (the "Contractor")pursuant to which the Contractor proposes to construct the improvements described in Section 1 of this ordinance, (B) a form of an installment is purchase contract between the Village and the Contractor (the "Installment Purchase Contract") pursuant to which the Village will finance the costs of the improvements described in Section 1 of this ordinance and pay the costs of the certificates herein authorized and (C)a form of an assigrtiment agreement between the Contractor and the Oak Brook Bank (the "Assignment Agreement") pursuant to which the Contractor will assign its rights to receive payments due under the Installment Purchase Contract to Oak Brook Bank. It is hereby determined that it is necessary and in the best interests of the residents of the Village for the Village to accept the Proposal and on or after September 24 1999 to enter into the Installment Purchase Contract, to provide for the construction and purchase by the Village of the improvements described in Section ordinance from the Contractor. The Proposal is hereby accepted and the I of this 1 i Installment Purchase Contract is hereby authorized, with a purchase price for the improvements from the proceeds of the certificates including acquisition, engineering, legal, financial and other expenses not to exceed $824,000. Payments by the Village under the installment Purchase Contract shall be made pursuant to the terms of the Installment Purchase Contract and this ordinance. •2- . _ f` r M.T. I it is hereby found and determined that the Installment Purchase Contract Is In the best interests of the Village and that no person holding an office of the Village, either by election or appointment, is in any manner interested, either directly or indirectly, in his own name or the name of any other person, association, trust or corporation, in the transactions contemplated by the Proposal or the Installment Purchase Contract. i Section 3. Form of Documents. The form, terms a:nd provisions of the Proposal,the Installment Purchase Contract and the Assignment Agreement are hereby in ali respects approved, and the Village President and the Village Clerk are hereby authorized,empowered and directed to execute,acknowledge and deliver the Proposal, the Installment Purchase Contract and the Assignment Agreement in the name and on behalf of the Village. The Installment Purchase Contract and the Assgnment I Agreement, as executed and delivered, shall be in substantially the form now before i this meeting and hereby approved, or with such changes therein as shall be approved by the officers of the Village executing the same, the execution thereof to constitute conclusive evidence of the approval of any and all changes or revisions therein from the form of the Installment Purchase Contract and the Assignment Agreement now before this meeting; and from and after the execution and delivery of the Installment Purchase Contract and the Assignment Agreement the officers, agents and employees of the Village are hereby authorized, empowered and directed to do all such acts and things and to execute all such documents as may be necessary to carry out and comply 1 with the provisions of the Proposal, the Installment Purchase Contract and the Assignment Agreement as so executed. .3. Section 4. Authorization and Terms of Certificates. The sum of $820,000 is appropriated to meet part of the estimated cost of the improvements or purposes described in Section 1 of this ordinance and the costs of issuance of the certificates herein authorized. For the purpose of financing said appropriation, general fund certificates of the Village, evidencing the fractionaiized interests of the owners thereof in the right to receive amounts due under, the Installment Purchase Contract, are authorized to be issued and sold in an aggrog1te principal amount of $820,000, and i shall be designated "General Fund Certificates, Series 1999." Certificates shall be issuable in the denominations of $5,000 or any integral multiple thereof and may bear such identifying numbers or letters as shall be useful to facilitate the registration, transfer and.exchange of certificates. Unless otherwise determined in the order to authenticate the certificates, each certificate delivered upon I the original issuance of the certificates shall be dated as of September 24, 1999. Each certificate thereafter issued upon any transfer, exchange or replacement of certificates shall be dated so than no gain or loss of interest shall result from such transfer, exchange or replacement. j The certificates shall mature on September 15, 2009, and shall bear interest at the rate of four and ninety-three one hundredths percent (4.93%) per annum. Each certificate shall bear interest from its date, computed on the basis of a 350 day year consisting of twelve 30 day months and payable in lawful money of the United States of America on March 15, 2000 and semiannually thereafter on each March 15 and September 15 at the rates per annum herein determined. .4. a_ if the Village should fait to make timely payment of any amounts due hereunder, the amount which the Village has failed to pay shalt continue as an obligation of the Village until the same shall have been fully paid, and the Village agrees to pay an additional two percent (2%) per annum on such amount as a late penalty payment. The principal of the certificates shall be payable in lawful money of the United States of America upon presentation and surrender thereof at the office of the Village Treasurer, who is hereby appointed as registrar and paying agent for the certificates. Interest on the certificates shall be payable on each interest payment date to the registered owners of record thereof appearing on the registration books maintained by the Village for such purpose at the office of the registrar, as of the close of business on the 1 st day of the calendar month of the applicable interest payment date. Interest on the certificates shall be paid by check or draft mailed to such registered,owners at their addresses appearing on the registration books or by wire transfer pursuant to an agreement by and between the Village and the registered owner. The certificates of such series shall be subject to redemption prior to maturity at the option of the Village and upon notice as herein provided, in such principal i amounts as the Village shall determine, in part by lot, on September 15, 2006 and on any date thereafter, at a redemption price equal to the principal amount thereof to be redeemed. I The certificates shall be subject to mandatory redemption, in part by lot, on September 15 of each of the years 2000 to 2008, in the following principal amounts, each constituting a sinking fund installment for the retirement of certificates maturing I on September 15, 2009: _ro. ""T"MMiN Pn M You C �rinGi�+81 �nlollnt 2000 $65,000 2001 70,000 2002 75,000 2003 75,000 2004 80,000 2005 85,000 2006 85,000 2007 80,000 2008 85,000 The final principal amount of certificates maturing on September 15, 2003, is $100,000. All certificates subject to mandatory sinking fund redemption shall be redeemed at a redemption price equal to the principal amount thereof to be redeemed. The registrar is hereby authorized and directed to mail notice of the mandatory sinking fund redemption of certificates inane manner provided in this section. Whenever certificates subject to mandatory sinking fund redemption are redeemed at the option of the Village, the principal amount thereof so redeemed shall be credited against the unsatisfied balance of future sinking fund installments or final maturity amount established with respect to the certificates, in such amounts and against such installments or final maturity amount as shall be determined by the Viliage in the proceedings authorizing such optional redemption or, in the absence of such determination, shall be credited against the unsatisfied balance of the applicable sinking fund installments next ensuing, and with respect to which notice of redemption has not yet been given. In the event of the redemption of less than all the certificates, the aggregate � principal amount thereof to be redeemed shall be $5,000 or an integral multiple thereof 1 717 and the registrar shall assign to each certificate a distinctive number for each $5,000 principal amount of such certificate and shall select by lot from the numbers so assigned as many numbers as, at $5,000 for each number, shall equal the principal amount of such certificates to be redeemed. The certificates to be redeemed shall be the certificates to which were assigned numbers so selected; provided that only so much of the principal amount of each certificate shall be redeemed as shall equal i $5,000 for each number assigned to it and so selected. Notice of the redemption of certificates shall be mailed not less than 30 days nor more than 60 days prior to the date fixed for such redemption to the registered owners of certificates to be redeemed. at their last addresses appearing on -said registration books. The certificates or portions thereof specified in said notice shall become due and payable at the applicable redemption price on the redemption date therein designated, and if, on the redemption date, moneys for payment of the redemption price of all the certificates or portions thereof to be redeemed, together with interest to the redemption date, shall be available for such payment on said date, i and if notice of redemption shall have been mailed as aforesaid (and notwithstanding i any defect therein or the lock of actual receipt thereof by any registered owner) then from and after the redemption date interest on such certificates or portions thereof shall cease to accrue and become payable. If there shall be dray.n for redemption less than all of a certificate, the Village shall execute and the registrar shall authenticate and deliver, upon the surrender of such certificate, without charge to the owner { i thereof, in exchange for the unredeemed balance of the certificate so surrendered, R7a � u won \Q 3 .t?e` 1s of ht 7 -4 certificates of like maturity and of the denomination of $5,000 or any integral multiple thereof. I' The registrar shall not be required to transfer or exchange any certificate after notice of the redemption of all or a portion thereof has been mailed. The registrar shall II not be required to transfer or exchange any certificate during a period of 15 days next preceding the mailing of a notice of redemption that could designate for redemption all or a portion of such certificate. Section 5. Sale and Delivery. The certificates are sold to Oak Brook Bank, as purchaser, at a price of $820,000. Section 6. Further Acts. The Village President,Village Clerk and other officials of the Village are authorized and directed to do and perform, or cause to be done or performed for or on behalf of the Village each and every thing necessary for tht, issuance of the certificates, including the proper execution and delivery of the ce(tificiss, the Installment Purchase Contract, the Assignment Agreement and the Proposal. Section 7. Execution and Authentication. Each certificate shall be executed in the name of the Village by the manual or authorized facsimile signature of its Village President and the corporate seal of the Village, or a facsimile thereof, shall be thereunto affixed or otherwise reproduced thereon and attested by the manual or authorized facsimile signature of its Village Clerk. I In case any officer whose signature, or a facsimile of whose signature, shall appear on any certificate shall cease to hold such office before. the issuance of the certificates, such certificate shall nevertheless be valid and sufficient for all purposes, .8- AMMUM" Oka r the same as if the person whose signature, or a facsimile thereof, appears on iuch certificate had not ceased to hold such office. Any certificate may be signed, sealed or attested on behalf of the Village by any person who, on the date of such act, shall hold the proper office, notwithstanding that at the date of such certificate such person may not have held such office. No recourse shall be had for the payment of any certificates against any officer who executes the certificates. Each certificate shall bear thereon a certificate of authentication executed manually by the registrar. No certificate shall be entitled to any right or benefit under this ordinance or shall be valid or obligatory for any purpose until such certificate of authentication shall have been duly executed by the -egistrar. Section 8. Transtar„ Exchange and Registry. The certificates shall be negotiable, subject to the provisions for registration of transfer contained herein. Each certificate shall be transferable only upon the registration books maintained by the Village for that purpose at the office of the registrar, by the registered owner thereof in person or by his attorney duly authorized in writing, upon surrender thereof together with a written instrument of transfer satisfactory to the registrar and duly executed Ii by the registered owner or his duly authorized attorney. upon the surrender for transfer of any such certificate, the Village shall execute and the registrar shall authenticate and deliver a new certificate or certificates registered in the name of the transferee, of the same aggregate principal amount, maturity and interest rate as the surrendered certificate. Certificates, upon surrender thereof at the office of the registrar, with a written instrument satisfactory to the registrar, duly executed by the registered owner or his attorney duly authorized in writing, may be exchanged for an I equal aggregate principal amount of certificates of the same maturity and interest rate and of the denorninations of $5,000 or any integral multiple thereof. 'I For every such exchange',or registration of transfer of certificates, the Village or the registrar may make a charge suffikaient for the reimbursement of any tax, fee or other governmental charge required to be paid with respect to such exchange or transfer, which sum or sums shall be paid by the person requesting such exchange or i transfer as a condition precedent to the exercise of the privilege of making such i exchange or transfer. No other charge shall be made for the privilege of making such transfer or exchange: The provisions of the Illinois Bond Replacement Act shall govern the replacement of lost, destroyed or defaced certificates. The Village and the registrar may deem and treat the person in whose name any certificate shall be registered upon the registration books as the absolute owner of such certificate, whether such certificate shall be overdue or nest, for the purpose of receiving payment of, or on account of,the principal of or interest thereon and for all other purposes whatsoever, and all such payments so made to any such registered i owner or upon his order shall be valid and effectual to satisfy and discharge the liability i upon such certificate to the extent of the sum or sums so paid, and neither the Village nor the registrar shall be affected by any notice to the contrary. Section 9. Nature of Obligations. For the purpose of providing funds necessary to pay amounts required under the Installment Purchase Contract, the Village agrees and covenants to make provision therator in each annual budget to be adopted by the President and Board of Trustees of the Village. Pursuant to Section 13 of the Local Government Debt Reform Act, the Village hereby pledges the sales tax and use tax -10- K receipts derived by the Village from taxes imposed under the Use Tax Act, 35 Illinois Compiled Statutes 105; the Service t.►se Tax Act, 35 Illinois Compiled Statutes 110; the Service Occupation Tax Act, 35 ll;inois Compiled Statutes 115; and the Retailer's Occupation Tax Act, 35 Illinois Compiled Statutes 120, as further security for the payment of amounts due under the Installment Purchase Contract. The obligation of the Village to make the payments required under the Installment Purchase Contract constitutes a contractual obligation of the Village, subject to annual appropriation and payable without priority from the general fund of the Village. There is no statutory authority for the levy of a separate tax in addition to othe. Village taxes or the levy of a special tax unlimited as to rate or amount to pay amounts due under the Installment Purchase Contract. No person shall have the right to mandamus any tax in connection I with payments to be made under the Installment Purchase Contract. The Village i intends to apply golf course revenues held in the "Sports Core Fund" of the Village to pay amounts due under the Installment Purchase Contract, however, rather than ' amounts held under the "Debt Service Account" and the "Certificate Proceeds Account" established under Section 11 and Section 12 of this ordinance, respectively, such Fund is not pledged as security for the payment of such amounts. Section 10. Form of Certificates.. The certificates shat! be issued as fully registered certificates and shall be in substantially the following form, the blanks to be i appropriately completed when the certificates are printed; �I .11. i No. United States of America State of Illinois Cr;;i cries of DuPage and Cook VILLAGE OF OAK BROOK GENERAL FUND CERTIFICATE, SERIES 189:9 I� INTEREST RATE MATURITY DATE DATED DATE 4.93% September 15, 2009 September 24, 1999 REGISTERED OWNER: Oak Brook Bank i PRINCIPAL AMOUNT: Eight Hundred Twenty Thousand Dollars ($820,000) The VILLAGE OF OAK BROOK, a municipal corporation of the State of Illinois situate in the Counties of DuPage and Cook, acknowledges itself indebted and for value received hereby promises to pay to the registered owner of this certificate, or registered assigns,the principal amount specified above on the maturity date specified above, and to pay interest on such principal amount from the date hereof at the interest rate per annum specified above, computed on the basis of a 360 day year consisting of twelve 30 day months and payable in lawful money of the United States of America on March 15, 2000 and semiannually thereafter on March 15 and I September 15 in each year until the principal amount shall have been paid, to the registered owner of record hereof as of the 1st day of the calendar month of such interest payment date, by wire transfer pursuant to an agreement by and between the i Village and the registered owner, or otherwise by check or draft mailed to the registered owner at the address of such owner appearing on the registration books .12- maintained by the Village for such purpose at the office of the Village Treasurer, as registrar or his successor (the "Registrar"). This certificate, as to principal when due, will be payable in lawful money of the United States of America upon presentation and surrender of this certificate at the office of the Registrar. Halloran&Yauch, Inc., an Illinois corporation (the "Contractor") and the Village have entered into the Installment Purchase Contract, dated as of September 24, 1999 (the "Installment Purchase Contract"), pursuant to which the Contractor has agreed to construct and sell certain improvements to the Village's 18-hole golf course to the Village. At the direction: and with the consent of the Village, the Contractor has assigned its rights to receive amounts due under the Installment Purchase Contract to the Registrar for the benefit of the cetificatehoiders.: This certificate evidences the fractionalited interest in the right of the owner hereof to receive payment of amounts due under the Installment Purchase Contract. i i FOR THE PURPOSE OF PROVIDING FUNDS NECESSARY TO PAY AMOUNTS DUE UNDER THE INSTALLMENT PURCHASE CONTRACT,THE VILLAGE HAS AGREED AND COVENANTED TO MAKE PROVISION THEREFOR IN EACH ANNUAL BUDGET I TO BE ADOPTED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE. PURSUANT TO SECTION 13 OF THE LOCAL GOVERNMENT DEBT REFORM ACT,THE VILLAGE HAS ALSO PLEDGED THE SALES TAX AND USE TAX RECEIPTS DERIVED BY THE VILLAGE FROM TAXES IMPOSED UNDER THE USE TAX ACT, 35 ILLINOIS COMPILED STATUTES 105; THE SERVICE USE TAX ACT, 35 ILLINOIS COMPILED STATUTES 110; THE SERVICE OCCUPATION TAX ACT, 35 ILLINOIS COMPILED STATUTES 115; AND THE RETAILER'S OCCUPATION TAX ACT, 35 ILLINOIS -13- i pill COMPILED STATUTES 120. THE OBLIGATION OF THE VILLAGE TO MAKE PAYMENT OF AMOUNTS DUE UNDER THE INSTALLMENT PURCHASE CONTRACT CONSTITUTES A CONTRACTUAL OBLIGATION OF THE VILLAGE, SUBJECT TO ANNUAL APPROPRIATION AND PAYABLE WITHOUT PRIORITY FROM THE GENERAL FUND OF THE VILLAGE. THERE IS NO STATUTORY AUTHORITY FOR THE LEVY OF A SEPARATE TAX IN ADDITION TO OTHER VILLAGE TAXES OR THE LEVY OF A i SPECIAL TAX UNLIMITED AS TO RATE OR AMOUNT TO PAY AMOUNTS DUE UNDER THE INSTALLMENT PURCHASE CONTRACT. NO PERSON SHALL HAVE THE RIGHT TO MANDAMUS ANY TAX IN CONNECTION WITH PAYMENTS TO BE MADE UNDER THE INSTALLMENT PURCHASE CONTRACT, This certificate is one of a series of certificates issued in the aggregate principal amount of $820,000, which are authorized and issued under and pursuant to the provisions of Section 11-61-3 of the Illinois Municipal Code, 65 Illinois Compiled � Statutes 5, and the Laical Government Debt Reform Act, 30 filinois Compiled Statutes 350, and under and in accordance with an ordinance adopted by the President and Board of Trustees of the Village on September 14, 1999 and entitled: "Ordinance �j Approving and Authorizing Execution of an installment Purchase Contract and the Issuance of $820,000 General Fund Certificates, Series 1999, of the Village of Oak Brook, Illinois." The certificates of such series are subject to redemption prior to maturity at the option of the Village and upon notice as herein provided, in such principal amounts as the Village shall determine, in part by lot, on September 15, 2006 and on any date thereafter, at a redemption price equal to the principal amount thereof to be redeemed. -14- The cor:,wticates are subject to mandatory sinking fund redemption to the extent required to satisfy sinking fund installments, in part by lot, at a redemption price equal to the principal amount thereof to be redeemed, on the respective redemption dates and in the respective principal amounts, each constituting a sinking fund installment, shown in the following table: Redemption gate (SwIramber 15) ` Pringipal Ara2unt 2000 $65,000 2001 70,000 2002 75,0010 2003 75,000 2004 801000 2005 85,000 2006 85,000 2007 90,000 2008 95,000 Notice of the redemption of'certificates will be mailed not less than 30 days nor more than 60 days prier to the mate fixed for such redemption to the registered owners of certificates to be redeemed at their last addresses appearing on I such registration books. The certificates or portions thereof specified in said notice shall become due and payable at the applicable redemption price on the redemption date therein designated, and if, on the redemption date, moneys for payment of the redemption price of all the certificates or portions thereof to be redeemed, together with interest to the redemption date, shall be available for such payment on said date, and if notice of redemption shall have been mailed as aforesaid (and notwithstanding any defect therein or the lack of actual receipt thereof by any registered owner) then -15- i from and after the redemption date interest on such certificates or portions thereof shall cease to accrue and become payable_ This certificate is transferable only upon such registration books by the registered owner hereof in person, or by his attorney duly authorized in writing, upon i surrender hereof at the office of the Registrar together with a written instrument of { transfer satisfactory to the Registrar duly executed by the registered owner or by his { ,l duly authorized attorney, and thereupon a new registered certificate or certificates, in the authorized denominations of $5,000 or any integral multiple thereof and of the same aggregate principal amount, maturity and interest rate as this certificate shall be I issued to the transferee in exchange therefor. In like manner, this certificate may be exchanged for an equal aggregate principal amount of certificates of the same maturity and interest rate And of any of such authorized denominations. The Village or the Registrar may make a charge sufficient for the reimbursement of any tax, fee or other governmental charge required to be paid with respect to the transfer or exchange of this certificate. No other charge shall be made for the privilege of making such transfer or exchange. The Village and the Registrar may treat and consider the person in whose name this certificate is registered as the absolute owner hereof for the purpose of receiving payment of, or on account of, the principal and interest due hereon and for all other purposes whatsoever. This certificate shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been duly executed by the Registrar. -16- i it 14 herby-certified. recited and declared that'this certificate_4saued in part pursuant to the Local Government Debt Reform Act, that all acts, conditions and things required to be done, exist and be performed precedent to and in the issuance of this certificate in order to make it a legal, valid and binding obligation of the Village l have been done, exist and have been performed in regular and due time, form and manner as required by law, and that the series of certificates of which this certificate y is one,together with all other indebtedness of the Village, is within every debt or other limit prescribed by law. I i �I j. 'I ' I i !i i I �I 0 7- 7 I17 IN WITNESS WHEREOF, the Village of Oak Brook has caused this certificate to be executed in its name and on its behalf by the manual or facsimile signature of its Village President, and its corporate seal, or a facsimile thereof, to be hereunto affixed or otherwise reproduced hereon and attested by the manual or facsimile signature of its Village Clerk. Dated: September 24, 1999 VILLAGE OF OAK BROOK Village President ;I : Attest: I I i Village Clerk CERTIFICATE OF AUTHENTICATION This certificate is one of the General Fund Certificates, Series 1999, described in the within mentioned Ordinance. By Village Treasurer, as Registrar .16- Rom W ASSIGNMENT For value received the undersigned sells, assigns and transfers unto the within certificate and hereby irrevocably constitutes and appoints attorney to transfer the said certificate on the books kept for registration thereof, with full power of Substitution in the premises. Wte d Signature Guarantee: I i I ' I Section 11. Debt Service Account. Moneys appropriated and set aside for the purpose of paying principal of and interest on the certificates when and as the same come due, and all other moneys to be used for the payment of the principal cf and interest on the certificates, 'shall be deposited in the "1999 Debt Service Account," which is hereby established as a special account of the Village within the "Sports Gore Fund" and shall be administered as a bona fide debt service fund under the Internal Revenue Code of 1956. Section 12. Certificate Proceeds Account. All of the proceeds of sale of the certificates shall be deposited in the "Certificate Proceeds Account," established under the Installment Purchase Contract as a special account of the Village within the "Sports Gore Fund." Moneys in the Certificate Proceeds Account shall be used for the purposes specified in Section 1 of this ordinance and for the payment of costs of issuance of the certificates, but may`t�ereafter.be reappropriated and used for other purposes if such reappropriation is permitted under Illinois law and will not adversely affect the exclusion from gross incomt for Federal income tax purposes of interest on the certificates. Section 13. Investment Regulations. No investment shall be made of any moneys in the 1999 Debt Service Account or the Certificate Proceeds Account except in accordance with the tax covenants set forth in Section 14 of this ordinance and Section 10 of the Installment Purchase Contract. All income derived from such investments in respect of moneys or securities in any Account shall be credited in each case to the Account in which such moneys or securities are held. .2Q. I. 3 Any moneys in any Account that are subject to investment yield restrictions may be invested in United States Treasury Securities, State and Local Government Series, pursuant to the regulations of the United States Treasury Department, Bureau of Public Debt, or in any tax-exempt bond that is not an "investment property" within the meaning of Section 148(b)(2)of the Internal Revenue Code of 1986. The Treasurer of the Village and agents designated by him are hereby authorized to submit, on behalf of the Village, subscriptions for such united States j Treasury Securities and to request redemption of such United States Treasury � Securities. a Section 14. Tax Covenants. The Village shall not take, or omit to take, any action lawful and within its power to take, which action or omission would cause i interest on any certificate to become subject to Federal income taxes in addition to Federal income taxes to which interest on such certificate is subject on the date of original issuance thereof. The Village shall not permit any of the proceeds of the certificates, or any facilities financed with such proceeds, to be used in any manner that would cause any certificate to constitute a "private activity bond" within the meaning of Section 141 of the Internal Revenue Code of 1986. The Village shall nut permit any of the proceeds of the certificates or other moneys to be invested in any manner that would cause any Certificate to I constitute an "arbitrage bond" within the meaning of Section 148 of the Internal Revenue Code of 19136 or a "hedge band" within the meaning of Section 149(g) of the � Internal Revenue Code of 1988, -21. r 7"7 The Village shall comply with the provision; of Section 148(f) of the Internal Revenue Code of 1986 relating to the rebate of certain investment earnings at periodic intervals to the United States of America. Section 15. Bank Qualified Designation. The Village hereby designates the installment Purchase Contract as evidenced by the certificates as a "qualified tax-exempt obligation" as defined in Section 265(b)(3)(B)of the Internal Revenue Code I of 1986. The Village represents that the reasonably anticipated amount of tax-exempt obligations that are required to be taken into account for the purpose of Section 265(b)(3)(C) of the Code and will be issued by or on behalf of the Village and all subordinate entities of the Village during 1999 dues riot exceed $10,000,000. The Village covenants that it will not designate and issue more than $10,000,000 I i aggregate principal amount of tax-exempt obligations in the year in which the i Installment Purchase Contract is executed and the certificates are issued. For purposes of the two preceding sentences, the term "tax-exempt obligations" includes "qualified 501(c)(3) bonds" (as defined in the Section 145 of the Internal Revenue Code of 1986) but does not include other "private activity bonds" (as defined in j Section 1.41 of the internal Revenue Code of 1986). Section 16. Registrar. The Village covenants that it shall at all times retain a registrar with respect to the certificates, that it will maintain at the designated office of such registrar a place where certificates may be presented for payment and registration of transfer or exchange and that it shall require that the registrar maintain proper registration books and perform the other duties and obligations imposed upon -22- r i WK � > sr E the registrar by this ordinance in a manner consistent with the standards, customs practices of the municipal securities business. The Village Treasurer, as registrar, shall signify his acceptance of the duties and obligations imposed upon him by this ordinance;by executing the certificate i of authentication on any certificate, and by such execution the registrar shall be deemed to have certified to the Village that he has accepted such duties and II obligations not only with respect to the certificate so authenticated but with respect to all the certificates. The registrar is the agent of the Village and shall not be liable i in connection with the performance of his duties except for his own negligence or default:. The registrar shall, however, be responsible for any representation in his certificate of authentication on the certificates. I he Village may remove the registrar at any time. In case at any time the i i registrar shall resign or shall be removed or shall become incapable of acting, the Village covenants and agrees that it will thereupon g g p appoint a successor registrar. The Village shall mail notice of any such appointment made by it to each registered owner of certificates wit:yin twenty days after such appointment. Section 17. Defeasance and Payment of Certificates. (A) If the Village shall pay or cause to be paid-to the registered owners of the certificates, the principal, premium, if any, and interest due or to become due thereon, at the times and in the i manner stipulated therein and in this ordinance, then the pledge of taxes, securities and funds hereby pledged and the covenants, agreements and other obligations of the Village to the registered owners and the beneficial owners of the certificates shall be discharged and satisfied. ..23. (t3) Any cert ificates or interest installments appertaining thereto, whether at or prior to the maturity or the redemption date of such certificates, shall be deemed to have been paid within the meaning of paragraph (A) of this Section if (1) in case any such certificates are to be redeemed prior to the maturity thereof,there shall have been taken all action necessary to call such certificates for redemption and notice of such redemption shall have been duly given or provision shall have been i made for the giving of such notice, and (2) there shall have been deposited in trust with a bank,trust company or national banking association acting as fiduciary for such purpose either (i) moneys in an amount which shall be sufficient, or (ii) "Federal Obligations" as defined in paragraph (C) of this Section, the principal of and the interest on which when due will provide moneys which, together with any moneys on deposit with such fiduciary at the same time for such purpose, shall be sufficient, to pay when due the principal of, redemption premium, if any, and interest due and to become due on said certificates on and prior to the applicable redemption date or maturity date thereof. (C) As used in this Section, the term "Federal Obligations" means (i) non-callable, direct obligations of the United States of America, (ii) non-callable and non-prepayable, direct obligations of any agency of the United States of America, which are unconditionally guaranteed by the United States of America as to full and timely payment of principal and interest, (iii) non-callable, non-prepayable coupons or interest installments from the securities described in clause (i) or clause (ii) of this paragraph, which are stripped pursuant to programs of the Department of the Treasury .24. W. of the United States of America, or Div) coupons or interest installments stripped from bonds of the Resolution Funding Corporation. Section 18. Ordinance to Constitute a Contract. The provisions of this i� ordinance shall constitute a contract between the Village and the registered owners of the certificates. Any pledge made in this ordinance and the provisions, covenants and agreements herein set forth to be performed by or on behalf of the Village shall be for the equal benefit, protection and security of the owners of any and all of the certificates. All of the certificates, regardless of the time or times of their issuance, shall be of equal rank without preference, priority or distinction of any of thf certificates over any other thereof except as expressly provided in or pursuant to this ordinance. This ordinance shall constitute full authority for the issuance of the certificates and to the extent that the provisions of this ordinance conflict with the provisions of any ether ordinance or resolution of the Village, the provisions of this ordinance shall control. If any section, paragraph or provision of this ordinance shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any of the remaining provisions of this ordinance. Section 19. Publication. The Village Clerk is hereby authorized and directed to publish this ordinance in pamphlet form and to file copies thereof For public inspection in his office. Section 20. Effective Date. This ordinance shall become effective upon its passage, approval and publication in pamphlet form. i, ..25- u Adopted this 14th day of September, 1999, by roll call vote as follows: Ayes: Trustees"Butler, Caleel, Craig, Kenner, McInerney and Savino Names I, Nays: bone Approved: September 14, 1999 li Village Presidentl6''� Published in pamphlet form: September 15, 1999 A �Y r �0 N^ .26- CERTIFICATE 1, Linda K. Gonnella, Village Clerk of the Village of Oak Brook, Illinois, hereby certify tha-z the foregoing ordinance entitIed:_ "Ordinance Approv;,ig and Authorizing Execution of an Installment Purchase Contract and the Issuance of $820,000 General Fund Certificates, Series 1 999, of the Village of Oak Brook, Illinois," is a true copy of an original ordinance that was duly —40pted-by the recorded affirmative votes of a j majority of the members of the President and Board of Trustees of the Village at a i meeting thereof that was duly called at A held at 7:30 p.m. on September 14, 1999, in the Village Hall at 1200 Oak Brook Road, and at which a quorum was present and acting throughout, and that said copy has been compared by me with the original ordinance signed by the Village President un September 14, 1999, and thereafter published in pamphlet form on September 15, 1999 and recorded in the Ordinance Book of the Village and that it is a correct transcript thereof and of the whole of said ordinance, and that said ordinance has not been altered, amended, repealed or revoked, but is in full force and effect. IN WITNESS WHEREOF, 1 have hereunto set my hand and affixed the seal of the Village this 14th day of September, 1999. IX F Village Clef co �ttRif, Ooc*:CH02109767.00M)9981020:911311999MMO.10;40 27- 4 is