HomeMy WebLinkAboutResolution No. 4484
RESOLUTION NO. ~Lf>1~
A RESOLUTION OF THE CITY OF EUGENE, LANE COUNTY, OREGON,
AUTHORIZING THE ISSUANCE AND SALE OF SPECIAL ASSESSMENT
BONDS, 1996 SERIES N, AND EXECUTION OF AN SRF LOAN
AGREEMENT WITH THE DEPARTMENT OF ENVIRONMENTAL
QUALITY OF THE STATE OF OREGON IN AN AGGREGATE PRINCIPAL
AMOUNT OF NOT MORE THAN $5,000,000.
THE CITY COUNCIL OF THE CITY OF EUGENE, OREGON (THE "CITY")
FINDS AS FOLLOWS:
A. The City previously issued its Santa Clara Bond Anticipation Notes, 1995
Series N (the "N otes"), and entered into an SRF Loan Agreement with the State of Oregon
Department of Environmental Quality (the "Loan Agreement") to provide funds for the interim
financing of the River Road Sewer Improvement Project (Basins N, P and R) (the "Project").
B. The Notes mature on October 1, 1996~ The Loan Agreement matures on
April 1, 1997, but may be prepaid on any business day upon 24 hours prior written notice.
C. Resolution No. 4451 adopted by the Council on June 14, 1995, authorized the
issuance of the Notes and execution of the SRF Loan Agreement and provided that the Loan
Agreement could be substituted for a bond or other obligation provided that the terms related to
the bond receive subsequent approval of the City Council.
D. It is now appropriate to authorize the issuance of bonds or obligations to be
issued to provide funds with which to refund the Notes and the Loan Agreement through the
issuance of special assessment bonds or such other obligations as may be satisfactory to DEQ
(the "DEQ Obligations")
NOW, THEREFORE, BE IT RESOL YED by the City Council of the City of
Eugene, a municipal corporation of the State of Oregon, as follows:
Section 1. Definitions.
As used in this Resolution, the following words shall have the following meanings:
1.1. "1996 Series N Bonds" means the Bonds of that name which are authorized
to be issued pursuant to Section 11 of this Resolution.
1.2. "Administrative Increment" means the portion of the interest rate on
Assessments which is designed to defray the City's administrative costs, and which is identified in
writing as the Administrative Increment prior to issuance of a series of Bonds.
1.3. "Assessments" means all payments received by the City in connection with
assessments, charges in lieu of assessments and connection charges (including property owner
installment payments, property owner prepayments, and amounts received from collection or
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foreclosure of delinquent property owner payments) which are levied or imposed for the Project,
and for which Bonds are issued.
1.4. "Available Sewer Revenues" means the revenues of the City's sewer system
which are deposited in the Local Operations Subfund and the Capital Operating Subfund of the
City's Sewage Operations Fund and which remain after the payment of all operation, maintenance
and debt service (other than Debt Service on the Bonds) expenses of the sewer system.
1.5. "Bonds" means the 1996 Series N Bonds and the DEQ Obligations, which are
authorized by Section 11 of this Resolution.
1.6. "City" means the City of Eugene, Oregon, a municipal corporation of the
State of Oregon.
1.7. "Code" means the Internal Revenue Code of 1986, as amended.
1.8. "Council" means the governing body of the City.
1.9. "Debt Service" means any principal, interest or premium payable on Bonds.
1. 10. "Default" means any event specified in Section of this Resolution.
1.11. "Fund" means the Special Assessment Bond Fund established pursuant to
Section 2 hereof
Bond.
1.12. "Owner" or "Bondowner" means a registered owner of an outstanding
1. 13. "Reserve Account" means the Reserve Account established pursuant to
Section 3 hereof
1. 14. "Reserve Requirement" means ten percent of the principal amount of all
outstanding Bonds~ however, if the Code in effect upon delivery of a series of Bonds will not
permit sufficient proceeds to be added to the Reserve Account to make the balance in the Reserve
Account equal to ten percent of the principal amount of all outstanding Bonds, then the Reserve
Requirement in effect on issuance of the series of Bonds shall be the Reserve Requirement in
effect immediately prior to their issuance, plus the lesser of:
(a) 10 percent of the proceeds of the series of Bonds (as "proceeds" is defined in
Section 148 of the Code)~
(b) maximum Annual Debt Service on the series ofBonds~ or,
(c) 125 percent of the average Annual Debt Service on the series of Bonds.
1. 15. "Resolution" means this Resolution.
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Section 2. Fund.
2.1. The Special Assessment Bond Fund (the "Fund"), is hereby created. It shall
contain a General Account and a Reserve Account. After deduction of the Administrative
Increment, and except as provided in Section 3 and Section 5, the City shall deposit all
Assessments into the General Account. As long as any Bonds remain issued and outstanding,
money in the General Account shall be used solely for the purposes listed below, in the following
order of priority:
2.1.1. To pay any Debt Service on Bonds which was not paid when due~
2.1.2. To pay scheduled Debt Service on Bonds~
2.1.3. To restore the balance in the Reserve Account to an amount equal
to the Reserve Requirement~
2.1.4. To redeem Bond principal (and pay any associated interest and
premiums) prior to maturity. Amounts in excess of the requirements described in
Sections 2.1.1 through 2.1.3 (to the greatest integral multiple of $5,000) shall be used to
redeem Bonds in accordance with Bond redemption provisions.
2.2. Earnings on amounts in the General Account shall be credited to the General
Account. Any amounts remaining in the Fund after all Bonds have been paid shall be the property
of the City.
Section 3. Reserve Account.
3.1. Upon issuance of the Bonds, the City shall deposit into the Reserve Account
an amount of Bond proceeds such that the balance in the Reserve Account is at least equal to the
Reserve Requirement for the Bonds. The City shall maintain the balance in the Reserve Account
from transfers under Section 5 of this Resolution.
3.2. Moneys required to be maintained in the Reserve Account shall be used only
to pay principal of and interest on the Bonds, and only in the event that the balance in the General
Account is insufficient. However, amounts in the Reserve Account which exceed the Reserve
Requirement may be transferred to the General Account.
3.3. Earnings on the Reserve Account shall be credited to the General Account.
Section 4. Pledge of Available Sewer Revenues
4. 1. The City hereby pledges the Available Sewer Revenues and the proceeds of
revenue obligations described in Section 4.3 to pay the Bonds. Available Sewer Revenues shall
be used to pay Bonds only if amounts in the Fund are insufficient. The pledge of the Available
Sewer Revenues shall be on a parity with all present and future obligations which are issued to
finance the River Road/Santa Clara Sewer Project and for which Available Sewer Revenues are
pledged. The pledge of the Available Sewer Revenues shall be subordinate to all other
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outstanding and future revenue bonds, notes and other obligations of the City which are secured
by its sewer revenues.
4.2. If the City pays Debt Service on the Bonds from Available Sewer Revenues
under Section 4. 1, the City may reimburse itself for that payment, without interest, from
Assessments received by the City after the deposit, but only if the balance in the Reserve Account
at the time of the reimbursement is at least equal to the Reserve Requirement.
4.3. The City hereby covenants with the Owners that it shall charge rates and fees
in connection with its sewage treatment and collection facilities which generate Available Sewer
Revenues sufficient to enable it to pay, when due, all costs of operation, maintenance, Debt
Service, other contractual obligations, and any and all reasonable predictable payments which may
be required under Section 4. 1. In addition, the City covenants that it will use its best efforts to
issue revenue obligations, payable solely from its. net sewer revenues, in amounts sufficient to
permit it to make, when due (or as soon thereafter as possible), any payments which are required
by Section 4. 1, for which the Available Sewer Revenues are not then sufficient.
Section 5. Delinquent Assessments; Payments in Lieu of Foreclosure.
5.1. The City covenants with the owners of the Bonds to pursue property
foreclosures to collect delinquent Assessments as rapidly as the law reasonably permits, and in
accordance with the foreclosure policies on the date this Resolution is adopted. However, the
City may elect not to foreclose or to pursue foreclosures less rapidly than required by this Section,
if the City:
5. 1. 1. identifies the Assessments to which the election applies~ and
5.1.2. deposits into the Fund any payments associated with the
Assessments to which the election applies and which are delinquent at the time the election
is made, and continues to deposit into the Fund in a timely manner the amounts which
would have been deposited into the Fund if such Assessments were not delinquent.
5. 1.3. Amounts received by the City from the settlement or foreclosure of
delinquent Assessments shall be applied in the following order of priority:
5.1.3.1. If the City has made deposits under Section 5.1.2 in
connection with a delinquent Assessment, amounts received by the City from the
settlement or foreclosure of that Assessment shall be applied first to reimburse the
City for such deposits without interest, but only if the foreclosure or settlement is
made on commercially reasonable terms and in a manner consistent with the City's
practice of foreclosing and settling assessments which secure the City's outstanding
bancroft and limited tax improvement bonds.
5.1.3.2. The City shall deposit into the General Account an amount
equal to the unpaid principal and accrued interest on the delinquent Assessment,
reduced by the Administrative Increment in proportion to the amount received on
settlement or foreclosure and any reimbursement to the City under this section; and
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5. 1.3.3. The balance shall be paid to the City to reimburse it for its
administrative costs in carrying, settling and foreclosing the Assessments.
Section 6. Pledge.
The City hereby pledges the Assessments and amounts in the Fund to the payment
of principal and interest on all Bonds. All Assessments shall be deposited in the Fund promptly,
and shall be used only as provided by this Resolution.
Section 7. Covenants.
follows:
The City hereby covenants, represents and agrees with the Owners of the Bonds as
7. 1. That, to the extent the Assessments, the other amounts required by this
Resolution to be deposited into the Fund, and the Available Sewer Revenues are sufficient, it will
promptly cause the principal and interest on the Bonds to be paid as they become due.
7.2. That it will maintain complete books and records relating to the Assessments,
the Fund and the Available Sewer Revenues, in accordance with generally accepted accounting
principles, and will cause such books and records to be audited annually at the end of each fiscal
year, and an audit report prepared and made part of the City's public records.
7.3. That it will not issue bonds or other obligations having a claim superior to or
subordinate to the claim of the Bonds upon the Assessments or amounts deposited in the Fund or
the Reserve Account under this Resolution.
7.4. That it will promptly deposit into the Fund all sums required to be so
deposited by this Resolution.
Section 8. Amendment.
8. 1. The City may amend this Resolution without the consent of the Owners, but
only to provide additional security for Owners, to cure ambiguities, to correct defects, or to make
any other change which, in the judgment of the City, does not materially and adversely affect the
interests of the Owners.
8.2. The City I?ay amend this Resolution for any other purpose, but only if:
8.2.1. the amendment is approved by Owners representing a majority in
principal amount of the then outstanding Bonds~ and,
8.2.2. the amendment does not extend the date for payment to an Owner,
or reduce the amount payable to an Owner under the terms of any Bond, without the
written consent of the Owner of the affected Bond.
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Section 9. Default and Remedies.
9. 1. The occurrence of anyone or more of the following shall constitute an event
of default under this Resolution:
9.1.1. Failure by the City to pay Debt Service on Bonds when due~ or,
9.1.2. Failure by the City to observe and perform any covenant, condition
or agreement on its part to be observed or performed under this Resolution or the Bonds
for a period of 60 days after written notice to the City by the Owners of not less than
twenty-five percent of the principal amount of outstanding Bonds specifying such failure
and requesting that it be remedied~ provided, however, that if the failure stated in the
notice cannot be corrected within the sixty day period, it shall not constitute an event of
default if corrective action is instituted by the City within the sixty day period and
diligently pursued until the failure is corrected.
9.2. Upon the occurrence of an event of default, the Bondowners may exercise
any remedy available at law or in equity; however, no Bond may be accelerated unless all
outstanding Bonds are declared immediately due and payable, and all outstanding Bonds may be
declared immediately due and payable only upon demand of the Owners of not less than
twenty-five percent of the principal amount of the Bonds which are then outstanding.
9.3. No remedy herein conferred upon or reserved to Bondowners is intended to
be exclusive, and every such remedy shall be cumulative and shall be in addition to every and any
other remedy available under this Resolution or now or hereafter existing at law or in equity. No
delay or omission in the exercise of any right or power occurring upon any default shall be
construed to be a waiver thereof, but any such right and power may be exercised from time to
time and as often as may be deemed expedient. To entitle Bondowners to exercise any remedy
under this Resolution, it shall not be necessary to give any other notice than such notice as may be
required in this Section 9.1.2. or by law.
9.4. Any moneys collected by or on behalf of Bondowners after an event of
default has occurred shall be deposited in the General Account and applied as provided in this
Resolution.
Section 10. Defeasance.
The lien of any Bonds upon the Assessments; the Available Sewer Revenues and
any amounts in the Fund may be defeased, and those Bonds shall be deemed paid, if the City
places in irrevocable escrow noncallable, direct obligations of, or obligations guaranteed by, the
United States which are calculated to be sufficient, without reinvestment, to pay principal, interest
and any premium on those Bonds as they become due, either at maturity or on prior redemption.
Section 11. Bonds.
The City is hereby authorized to issue, sell and deliver its Special Assessment
Bonds, 1996 Series N and a DEQ Obligation. The total principal amount of the Bonds shall not
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exceed Five Million Dollars ($5,000,000). The Bonds shall bear interest at a true interest cost of
not more than eight percent per annum, and shall mature over a period of approximately ten years.
The City Manager, the Finance Director, or the person designated in writing by the City Manager
to act under this Resolution (the "City Official") may, on behalf of the City and without further
action by the City Council:
11. 1. Authorize the preparation of, deem final, and distribute a preliminary official
statement for the 1996 Series N Bonds, and approve and deliver a final official statement for the
1996 Series N Bonds;
11.2. Determine whether the 1996 Series N Bonds will be sold on competitive bid
or by negotiated sale, and publish a notice of sale and award the sale of the 1996 Series N Bonds
to the most favorable bidder or select an underwriter, negotiate the terms of the sale of the 1996
Series N Bonds to the underwriter, and enter into and agreement to sell the 1996 Series N Bonds
to the underwriter;
11.3. Enter into an agreement to provide continuing financial disclosure for the
benefit of the owners of the 1996 Series N Bonds in accordance with the applicable rules of the
United States Securities and Exchange Commission;
11.4. Establish tpe final principal amount, maturity schedule, interest rates,
redemption provisions and other terms of the Bonds, consistent with the limitations established by
this Resolution;
11.5. Establish the price and other terms under which the DEQ Obligations will be
sold to the DEQ, enter into an Agreement with the DEQ and issue and deliver the DEQ
Obligations;
11.6. report the results of the sale of the 1996 Series N Bonds to the Council~ and,
11.7. execute and deliver any certificates or other documents, and take any other
action, including the appointment of a paying agent, which is desirable in order to issue, sell and
deliver the 1996 Series N Bonds and the DEQ Obligations in accordance with this Resolution.
Section 12. Tax Exemption.
The City covenants for the benefit of the Owners of the Bonds to comply with all
provisions of the Code which are required for Interest on the Bonds to be excludable from gross
income under the Code. The City makes the following specific covenants:
12. 1. The City will 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 all penalties and
rebates to the United States which are required by Section 148(f) of the Code.
12.2. The City shall operate the facilities financed with the Bonds, and use the
proceeds of the Bonds, so that the Bonds are not "private activity bonds" within the meaning of
Section 141 of the Code.
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Section 13. Authentication, Registration and Transfer. (No Depository).
Registration and transfer of the 1996 Series N Bonds while they are in book-entry
form shall be in accordance with the City's Blanket Letter of Representations to The Depository
Trust Company. The provisions of this Section 13 apply only if the 1996 Series N Bonds cease to
be book-entry-only.
13. 1. No 1996 Series N Bond shall be entitled to any right or benefit under this
Resolution unless it shall have been authenticated by an authorized Officer of the City's paying
agent and registrar (the "Paying Agent"). The Paying Agent shall authenticate all 1996 Series N
Bonds to be delivered at the closing of the Series N Bonds, and shall additionally authenticate all
1996 Series N Bonds properly surrendered for exchange or transfer pursuant to this Resolution.
13.2. All 1996 Series N Bonds shall be in registered form. The City Official will
appoint a bank doing business in Oregon to serve as Paying Agent for the 1996 Series N Bonds.
The Paying Agent shall provide notice to the 1996 Series N Bondowners of any change in the
Paying Agent not later than the 1996 Series N Bond payment date following the change in Paying
Agent.
13.3. The ownership of all 1996 Series N Bonds shall be entered in the 1996
Series N Bond register maintained by the Paying Agent, and the City and the Paying Agent may
treat the person listed as owner in the 1996 Series N Bond register as the owner of the 1996
Series N Bond for all purposes.
13.4. The Paying Agent shall mail each interest payment on the interest payment
date (or the next business day if the interest payment date is not a business day) to the name and
address of the 1996 Series N Bondowner as they appear on the 1996 Series N 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 City nor the Paying Agent shall have any further liability to any
party for such payment.
13.5. 1996 Series N Bonds may be exchanged for an equal principal amount of
1996 Series N Bonds of the same maturity which are in different denominations, and 1996 Series
N Bonds may be transferred to other owners if the 1996 Series N Bondowner submits the
following to the Paying Agent:
13.5. 1. written instructions for exchange or transfer satisfactory to the
Paying Agent, signed by the 1996 Series N Bondowner or the bondowner's attorney in
fact and guaranteed or witnessed in a manner satisfactory to the Paying Agent; and
13.5.2. the 1996 Series N Bonds to be exchanged or transferred.
13.6. The Paying Agent shall not be required to exchange or transfer any 1996
Series N Bonds submitted to it during any period beginning with a Record Date and ending on the
next following payment date; however, such 1996 Series N Bonds shall be exchanged or
transferred promptly following that payment date.
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13.7. The. Paying Agent shall note the date of authentication on each 1996 Series
N Bond. The date of authentication shall be the date on which the 1996 Series N Bondowner's
name is listed on the 1996 Series N Bond register.
13.8. For purposes of this section, 1996 Series N Bonds shall be considered
submitted to the Paying Agent on the date the Paying Agent actually receives the materials
described in Section 13.5.
13.9. The City may alter these provisions regarding registration and transfer by
mailing notification of the altered provisions to all 1996 Series N 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.
The covenants contained in this Section 13 and any covenants in the closing
documents for the 1996 Series N Bonds shall constitute contracts with the owners of the 1996
Series N Bonds, and shall be enforceable by them.
Section 14. 1996 Series N Bonds Book-Entry-Only System.
14. 1. The 1996 Series N Bonds shall be initially issued as a book -entry-only
security issue with no 1996 Series N Bonds being made available to the Bondowners, in
accordance with the Blanket Letter of Representations between The Depository Trust Company
and the City. Ownership of the 1996 Series N Bonds shall be recorded through entries on the
books of banks and broker-dealer participants and correspondents that are related to entries on
The Depository Trust Company book-entry-only system. The 1996 Series N Bonds shall be
initially issued in the form of a separate single fully registered typewritten Bond for each maturity
of the 1996 Series N Bonds (the "Global Bonds"). Each Global Bond shall be registered in the
name of CEDE & CO. as nominee (the "Nominee") of The Depository Trust Company ("DTC")
(DTC and any other qualified securities depository designated by the City as a successor to DTC,
collectively the "Depository") as the "Registered Owner," and such Global Bonds shall be lodged
with the Depository until early redemption or maturity of the 1996 Series N Bond issue. The
Paying Agent shall remit payment for the maturing principal and interest on the 1996 Series N
Bonds to the Registered Owner for distribution by the Nominee for the benefit of the owners (the
"Beneficial Owner" or "Record Owner") by recorded entry on the books of the Depository
participants and correspondents. While the 1996 Series N Bonds are in book-entry-only form, the
1996 Series N Bonds will be available in denominations of $5,000 or any integral multiple thereof
14.2. In the event the Depository determines not to continue to act as securities
depository for the 1996 Series N Bonds, or the City determines that the Depository shall no
longer so act, then the City will discontinue the book-entry-only system with the Depository. If
the City fails to designate another qualified securities depository to replace the Depository or
elects to discontinue use of a book-entry-only system, the 1996 Series N Bonds shall no longer be
a book-entry-only issue but shall be registered in the registration books maintained by the Paying
Agent in the name of the Owner as appearing on the 1996 Series N Bond Register and thereafter
in the name or names of the Bondowners of the 1996 Series N Bonds transferring or exchanging
Bonds.
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14.3. With respect to 1996 Series N Bonds registered in the registration books
maintained by the Paying Agent in the name of the Nominee of the Depository, the City and the
Paying Agent shall have no responsibility or obligation to any participant or correspondent of the
Depository or to any Registered Owner on behalf of which such participants or correspondents
act as agent for the Owner with respect to:
14.3.1. the accuracy of the records of the Depository, the Nominee or any
participant or correspondent with respect to any ownership interest in the 1996 Series N
Bonds;
14.3.2. the delivery to any participant or correspondent or any other
person, other than an Owner as shown in the registration books maintained by the Paying
Agent, of any notice with respect to the 1996 Series N Bonds, including any notice of
prepayment;
14.3.3. the selection by the Depository of the beneficial interest in 1996
Series N Bonds to be redeemed prior to maturity~ or
14.3.4. the payment to any participant, correspondent, or any other person
other than the Owner of the 1996 Series N Bonds as shown in the registration books
maintained by the Paying Agent, of any amount with respect to principal or interest on the
1996 Series N Bonds.
14.4. Notwithstanding the book-entry-only system, the City may treat and
consider the Registered Owner in whose name each 1996 Series N Bond is registered in the
registration books maintained by the Paying Agent as the Owner and absolute owner of such 1996
Series N Bond for the purpose of payment of principal and interest with respect to such 1996
Series N Bond, or for the purpose of giving notices of redemption and other matters with respect
to such 1996 Series N Bond, or for the purpose of registering transfers with respect to such 1996
Series N Bond, or for all other purposes whatsoever. The City shall payor cause to be paid all
principal and interest on the 1996 Series N Bonds only to or upon the order of the Registered
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 City's obligation with respect to payment thereof to the extent of the sum
or sums so paid.
14.5. Upon delivery by the Depository to the City and to the Owner of written
notice to the effect that the Depository 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 the
Depository, and upon receipt of such notice, the City shall promptly deliver a copy thereof to the
Paying Agent. The Depository shall tender the 1996 Series N Bonds it holds to the Paying Agent
for reregistration.
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Section 15. Pro-rata Redemption of 1996 Series Nand DEQ Obligations.
If the City redeems 1996 Series N Bonds prior to their stated maturity, then the
City shall redeem a proportionate amount ofDEQ Obligations principal concurrently. The
proportionate amount ofDEQ Obligations principal to be redeemed shall be determined by
dividing the amount of 1996 Series N Bond principal to be redeemed by the amount of 1996
Series N Bond principal which is outstanding immediately prior to the redemption, and
multiplying the resulting fraction by the principal amount of the DEQ Obligations which is
outstanding immediately prior to their redemption.
ADOPTED by the City Council of the City of Eugene, Lane County, Oregon on
the zq"'l'~day of Ar;>OA-( ~ 1996.
City of Eugene
Lane County, Oregon
~Y:co~:!7
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No. R-
Exhibit A
(Form of Bond)
United States of America
State of Oregon
County of Lane
City of Eugene
Special Assessment Bond
1996 Series N
$
Dated Date:
Interest Rate:
Maturity Date:
Registered Owner:
Principal Amount:
%
-'-
Dollars-----
THE CITY OF Eugene, in the County of Lane, State of Oregon (the "City"), for value received, acknowledges itself indebted
and hereby promises to pay to the registered owner hereof, or registered assigns, but solely from the Assessments and Available Sewer Revenues as
provided in the Bond Resolution, the principal amount indicated above on the above maturity date together with interest thereon from the date hereof
at the 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
, -' Interest upon this Bond is payable by check or draft through the principal corporate trust office
of the City's paying agent and registrar, which is currently [REGISTRAR], in _, Oregon (the "Paying Agent"). A check or draft will be mailed
on the interest payment date (or the next business day if the interest payment date is not a business day) to the registered owner at the address appearing
on the Bond Register as of the fifteenth day of the month preceding the interest payment date. Bond principal is payable at maturity or prior
redemption upon presentation and surrender of this Bond to the Paying Agent.
Capitalized terms used in this Bond and not defined herein have the meanings defined for such terms in the City Resolution
which authorized issuance of the Bonds (the "Bond Resolution").
THIS BOND IS NOT A GENERAL OBLIGATION OF THE CITY OF EUGENE. THIS BOND IS A SPECIAL
OBLIGATION OF THE CITY, PAYABLE SOLELY FROM THE ASSESSMENTS AND THE AVAILABLE SEWER REVENUES, AS
PROVIDED IN THE BOND RESOLUTION.
This Bond represents an authorized series of Special Assessment Bonds, 1996 Series N in the aggregate principal amount of
$ (the "Bonds"), issued by the City to finance local improvements pursuant to the Bond Resolution and ORS 223.235, in full and
strict accordance and compliance with all of the provisions of the Constitution and Statutes of the State of Oregon and the Charter of the City.
[insert appropriate redemption language when established by the City Official pursuant to Section 11 of the Resolution]
Notice of any call for redemption, unless waived by the registered owners of the Bond or Bonds to be redeemed, 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
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.
The Bonds are issuable in the form of registered Bonds without coupons in the denominations of$5,000 or any integral
multiple thereof Bonds may be exchanged for Bonds of the same aggregate principal amount, but different authorized denominations, pursuant to the
Bond Resolution.
Any transfer of this Bond must be registered, as provided in the Bond Resolution of the City authorizing the issuance of the
Bonds, upon the Bond Register kept for that purpose at the principal corporate trust office of the Paying Agent. The City and the Paying Agent may
treat the person in whose name this Bond is registered as its absolute owner for all purposes, as provided in the Bond Resolution.
The Bondowner may exchange or transfer any Bond only by surrendering it, together with a written instrument of exchange or
transfer which is satisfactory to the Paying Agent and duly executed by the registered owner or his duly authorized attorney, at the principal corporate
trust office of the Paying Agent in the manner and subject to the conditions set forth in the Bond Resolution.
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 ofthis 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 City; that the issue of which this Bond is a part, and
all other obligations of such City, are within every debt limitation and other limit prescribed by such Constitution, Statutes and Charter.
IN WITNESS WHEREOF, the City Council of the City of Eugene, in Lane County, Oregon, has caused this Bond to be signed
by its City Official.
City of Eugene,
Lane County, Oregon
City Official
This Bond shall not be valid unless properly authenticated by the Paying Agent in the space indicated below.
Dated:
herein.
[REGISTRAR], as Paying Agent
Certificate of Authentication
This bond represents the City's Special Assessment Bonds, 1996 Series N, issued pursuant to the Bond Resolution described
Authorized Officer
Page 1 Exhibit A (Form of Note)
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Assignment
FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto
(Please insert social security or other identifYing number of assignee: No. __)
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:
(Signature of registered owner)
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
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
IT TEN -- as joint tenants with right of survivorship and not as tenants in common
OREGON CUSTODIANS use the following:
CUST UL OREG MIN
as custodians 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.
Page 2 -- Exhibit A
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4/11/96