HomeMy WebLinkAbout099 - 07/15/1986 - AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION PARK REFUNDING BONDS, SERIES 1986, IN THE AMOUNT OF $ ORDINANCE NO. 99, 1986
AN ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF FORT
COLLINS, COLORADO, GENERAL OBLIGATION PARK REFUNDING
BONDS, SERIES 1986, DATED AUGUST 1, 1986, IN THE
AGGREGATE PRINCIPAL AMOUNT OF $3 , 845,000, FOR THE
PURPOSE OF REFUNDING, PAYING AND DISCHARGING CERTAIN
VALID OUTSTANDING GENERAL OBLIGATION PARK BONDS OF THE
CITY AND PROVIDING FOR THE LEVY OF AD VALOREM TAXES TO
PAY THE PRINCIPAL OF AND INTEREST ON THE BONDS.
WHEREAS, at an election duly called and held in the
City of Fort Collins, Colorado (the City) , on April 7, 1981,
there was submitted to the registered qualified electors of the
City the following question (the Ballot Question) :
"Shall the City of Fort Collins, Colorado, be authorized to
issue its negotiable, interest bearing general obligation
bonds in one series or more in an aggregate principal amount
not to exceed $5,065, 000, or so much thereof as may be
necessary, for the purpose of defraying, in whole or in
part, the cost of acquiring, developing, redeveloping,
expanding, improving, landscaping and equipping community
parks within and for said City, together with all necessary
incidental and appurtenant improvements, facilities,
equipment and costs, such bonds to bear interest at a net
effective interest rate not exceeding twelve per centum
( 12%) per annum, and to mature during a period of not more
than 20 years from the date or respective dates of the
bonds, such bonds to be payable from general ad valorem
taxes and other funds legally available therefore, and such
bonds to be sold and issued at one time or from time to
time, in such manner and amounts and upon such terms and
conditions as the Council may later determine, including
provisions for the redemption of bonds prior to maturity
upon payment of a premium or premiums not exceeding
3 percent of the principal thereof?"
(The proceeds of the bonds will not be used for payment of
the annual costs of operation and maintenance, which costs
will result in increased taxes . )
and
WHEREAS, the results of said election were duly
canvassed by the Board of Elections of the City on April 10,
1981 ; and
WHEREAS, a majority of the votes cast on the Ballot
Question were in favor of issuance of said bonds; and
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WHEREAS, the City of has heretofore issued and sold its
General Obligation Park Bonds, dated September 1, 1981, in the
original aggregate principal amount of $3 ,000,000 (the 1981
Issue) ; and
WHEREAS, there is outstanding of the 1981 Issue the
aggregate principal amount of $2 , 755, 000, consisting of bonds
bearing the following numbers, maturing on September 1 in the
following years in the following aggregate principal amounts, and
bearing interest at the following per annum interest rates:
Principal Per Annum
Numbers Years Amounts Interest Rates
50 to 64 1966 $ 75,000 13 . 00%
65 to 81 1987 85,000 13 . 00
82 to 100 1988 95, 000 12 . 70
101 to 120 1989 100,000 10. 00
121 to 142 1990 110, 000 10. 10
143 to 167 1991 125, 000 10. 20
168 to 194 1992 135,000 10.30
195 to 224 1993 150,000 10. 45
225 to 257 1994 165,000 10. 60
258 to 293 1995 180, 000 10. 70
294 to 333 1996 200, 000 11 . 00
334 to 377 1997 220, 000 11 . 10
378 to 425 1998 240, 000 11 .20
426 to 478 1999 265, 000 11 . 30
479 to 536 2000 290, 000 11 . 40
537 to 600 2001 320, 000 11 . 00
and
WHEREAS, bonds of the 1981 Issue maturing in the years
1986 through 1991 are not subject to optional redemption prior to
their respective maturity dates, bonds of the 1981 Issue maturing
in the years 1992 through 1994 are subject to optional redemption
prior to their respective maturity dates, in whole or in part in
inverse numerical order, on September 1 , 1991, and on any
interest payment date thereafter at a price equal to the
principal amount of each such bond of the 1981 Issue so redeemed
plus accrued interest thereon to the redemption date plus a
premium equal to 1% of the principal amount of each such bond of
the 1981 Issue so redeemed, and bonds of the 1981 Issue maturing
in the year 1995 and thereafter are subject to optional
redemption prior to their respective maturity dates, in whole or
in part in inverse numerical order, on September 1, 1991, and on
any interest payment date thereafter at a price equal to the
principal amount of each such bond of the 1981 Issue so redeemed
plus accrued interest thereon to the redemption date; and
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WHEREAS, the City has heretofore issued and sold its
General Obligation Park Bonds, dated March 1 , 1982, in the
original aggregate principal amount of $2 , 065,000 (the 1982
Issue) ; and
WHEREAS, there is outstanding of the 1982 Issue the
aggregate principal amount of $1, 880, 000, consisting of bonds
bearing the following numbers, maturing on September 1 in the
following years in the following aggregate principal amounts, and
bearing interest at the following per annum interest rates:
Principal Per Annum
Numbers Years Amounts Interest Rates
38 to 52 1986 $ 75, 000 12 .25%
53 to 69 1987 85, 000 12 .25
70 to 88 1988 95, 000 12 .25
89 to 110 1989 110, 000 12 .25
111 to 135 1990 125 , 000 12 .25
136 to 163 1991 140, 000 12 .25
164 to 194 1992 155 , 000 11 . 40
195 to 229 1993 175 ,000 11 . 60
230 to 268 1994 195, 000 11 . 75
269 to 311 1995 215, 000 11 . 90
312 to 359 1996 240, 000 12 . 00
360 to 413 1997 270, 000 12 . 20
and
WHEREAS, bonds of the 1982 Issue maturing in the years
1986 through 1992 are not subject to optional redemption prior to
their respective maturity dates, and bonds of the 1982 Issue
maturing in the year 1993 and thereafter are subject to optional
redemption prior to their respective maturity dates, in whole or
in part in inverse numerical order, on September 1, 1992 , and on
any interest payment date thereafter at a price equal to the
principal amount of each bond of the 1982 Issue so redeemed plus
accrued interest thereon to the redemption date; and
WHEREAS, pursuant to Colorado Constitution art XI , sec .
6 and art. XX, sec . 6, Art. V, Sections 20. 2 and 20. 4 of the
Charter of the City, and part 1 of article 56 of title 11 ,
Colorado Revised Statutes, as amended (the Act) , the Council (the
Council) of the City has determined, and does hereby determine,
to issue City of Fort Collins, Colorado, General Obligation Park
Refunding Bonds, Series 1986, dated August 1, 1986, in the
aggregate principal amount of $3 , 845,000 (the Bonds) for the
purpose of refunding, paying and discharging bonds of the 1981
Issue maturing in the year 1993 and thereafter and bonds of the
1982 Issue maturing in the year 1994 and thereafter
(collectively, the Refunded Bonds) in order to reduce the net
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effective interest rate; reduce the total interest payable;
reduce the total principal and interest payable or the principal
and interest payable in any particular year or years, or effect
other economies; postpone maturities to a later date; or any
combination of the foregoing; and
WHEREAS, a proposal for the purchase of the Bonds on
terms favorable to the City, together with the disclosures,
comparisons, and other information required by the Act, has been
received from Morgan Guaranty Trust Company of New York, New
York, New York (the Purchaser) , which the Council has determined,
and does hereby determine, to accept; and
WHEREAS, there have been filed with the City Clerk
forms of a Bond Purchase Agreement, dated as of July 15, 1986
(the Bond Purchase Agreement) , between the City and the Purchaser
and an Escrow Agreement, dated as of August 1, 1986 (the Escrow
Agreement) , between the City and First Interstate Bank of Fort
Collins, N.A. , Fort Collins, Colorado (the Escrow Agent) .
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS, COLORADO, AS FOLLOWS:
1 . Award of Contract; Execution of Bond Purchase
Agreement. The contract for the purchase of the Bonds is hereby
awarded to the Purchaser at a price equal to $3, 748,875 plus
accrued interest thereon from the date thereof to the delivery
date thereof and upon the terms set forth in this ordinance (this
Ordinance) . The Finance Director of the City is hereby
authorized and directed to execute the Bond Purchase Agreement on
behalf of the City.
2 . Authorization and Description. For the purpose of
refunding, paying and discharging the Refunded Bonds, the City
shall issue the Bonds pursuant to Colorado Constitution art. XI ,
sec. 6 and art. XX, sec . 6, Art. V, Sections 20.2 and 20. 4 of the
Charter of the City, and the Act.
The Bonds shall be issued in fully registered form in
denominations of $5, 000 or any integral multiple thereof,
provided that no Bond shall be issued in any denomination larger
than the aggregate principal amount maturing on the maturity date
thereof and that no Bond shall be made payable on more than one
maturity date.
Pursuant to the recommendations of the Committee on
Uniform Security Identification Procedures, CUSIP numbers may be
printed on the Bonds.
The Bonds shall mature on December 1 in the following
years and principal amounts and shall bear interest from
August 1, 1986, or the interest payment dates to which interest
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has been paid next preceding their respective dates, whichever is
later, to their respective maturity dates, except if redeemed
prior thereto, at the following per annum interest rates:
Principal Per Annum
Years Amounts Interest Rates
1986 $ 70,000 4. 00%
1987 60,000 4. 50
1988 65,000 5. 00
1989 65,000 5. 40
1990 70,000 5. 70
1991 75,000 6. 00
1992 80, 000 6. 20
1993 235, 000 6. 40
1994 445, 000 6. 60
1995 465, 000 6. 80
1996 500, 000 7 .00
2001 1, 715, 000 7 . 40
Said interest shall be payable on December 1, 1986, and
semiannually thereafter on the 1st day of June and the 1st day of
December of each year. If upon presentation at maturity the
principal of any Bond is not paid as provided herein, interest
shall continue thereon at the same interest rate until the
principal thereof is paid in full .
3 . Net Effective Interest Rate . The maximum net
effective interest rate for the Bonds shall be 12% per annum.
The actual net effective interest rate for the Bonds is 7 . 335045%
per annum.
4. Nature of Obligation. The Bonds shall be general
obligations of the City and shall be payable from general ad
valorem taxes and other legally available funds.
5 . Payment of Principal and Interest. The principal
of and interest on Bonds shall be payable in lawful money of the
United States of America to the registered owners of the Bonds by
the Finance Director of the City, or his successors, as paying
agent (the Paying Agent) . The principal and the final
installment of interest shall be payable to the registered owner
of each Bond upon presentation and surrender thereof at maturity
or upon prior redemption. Except as hereinbefore and hereinafter
provided, the interest shall be payable to the registered owner
of each Bond determined as of the close of business on the
fifteenth day of the calendar month next preceding the interest
payment date (the Regular Record Date) , irrespective of any
transfer of ownership of the Bond subsequent to the Regular
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Record Date and prior to such interest payment date, by check or
draft mailed to such registered owner at the address appearing on
the registration books of the City maintained by the City Clerk,
or her successors, as registrar (the Registrar) . Any interest
not paid when due and any interest accruing after maturity shall
be payable to the registered owner of each Bond entitled to
receive such interest determined as of the close of business on a
date fixed by the Paying Agent for such purpose (the Special
Record Date) , irrespective of any transfer of ownership of the
Bond subsequent to the Special Record Date and prior to the date
fixed by the Paying Agent for the payment of such interest, by
check or draft mailed as aforesaid. Notice of the Special Record
Date and of the date fixed for the payment of such interest shall
be given by sending a copy thereof by certified or registered
first-class postage prepaid mail, at least ten ( 10) days prior to
the Special Record Date, to the Purchaser and to the registered
owner of each Bond upon which interest will be paid determined as
of the close of business on the day preceding such mailing at the
address appearing on the registration books of the City.
6 . Redemption. Bonds maturing in the years 1986
through 1996 shall not be subject to optional redemption prior to
their respective maturity dates. Bonds maturing in the year 2001
shall be subject to optional redemption prior to their maturity
date, in whole or in part in inverse order of maturity and by lot
within a maturity, on December 1, 1996, and on any interest
payment date thereafter at a price equal to the principal amount
of each Bond so redeemed plus accrued interest thereon to the
redemption date.
Bonds maturing in the year 2001 shall also be subject
to mandatory sinking fund redemption prior to their maturity
date, by lot, on the dates specified below at a price equal to
the principal amount of each Bond so redeemed plus accrued
interest thereon to the redemption date . Such Bonds shall be
redeemed on December 1 in the following years in the following
aggregate principal amounts :
Years Principal Amounts
1997 $530, 000
1998 270, 000
1999 285, 000
2000 305 , 000
2001 325, 000
Bonds which are redeemable prior to their respective
maturity dates may be redeemed in part if issued in denominations
which are integral multiples of $5,000. Such Bonds shall be
treated as representing a corresponding number of separate Bonds
in the denomination of $5, 000 each. Any such Bond to be redeemed
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in part shall be surrendered for partial redemption in the manner
hereinafter provided for transfers of ownership. Upon payment of
the redemption price of any such Bond redeemed in part the
registered owner thereof shall receive a new Bond or Bonds of
authorized denominations in aggregate principal amount equal to
the unredeemed portion of the Bond surrendered.
Notice of redemption shall be given by the Paying Agent
in the name of the City by sending a copy thereof by certified or
registered first-class postage prepaid mail, at least thirty (30)
days prior to the redemption date, to the Purchaser and to the
registered owner of each of the Bonds being redeemed determined
as of the close of business on the date preceding the first
mailing of such notice at the address appearing on the
registration books of the City. Such notice shall specify the
number or numbers of the Bonds to be redeemed, whether in whole
or in part, and the date fixed for redemption and shall further
state that on the redemption date there will be due and payable
upon each Bond or part thereof so to be redeemed the principal
amount or part thereof plus accrued interest thereon to the
redemption date and that from and after such date interest will
cease to accrue. Failure to mail any notice as aforesaid or any
defect in any notice so mailed with respect to any Bond shall not
affect the validity of the redemption proceedings with respect to
any other Bond. Any Bonds redeemed prior to their respective
maturity dates by call for prior redemption or otherwise shall
not be reissued and shall be cancelled the same as Bonds paid at
or after maturity.
7 . Execution. The Bonds shall be executed by and on
behalf of the City with the facsimile signature of the Mayor,
shall bear a facsimile of the seal of the City, shall be attested
with the facsimile signature of the City Clerk, and shall be
countersigned with the manual signature of the Finance Director
or Acting Finance Director of the City. Should any officer whose
facsimile or manual signature appears on the Bonds cease to be
such officer before issuance and delivery of any Bond, such
facsimile or manual signature shall nevertheless be valid and
sufficient for all purposes.
8. Registration, Transfer and Exchange. Upon their
execution and prior to their delivery the Bonds shall be
registered for the purpose of payment of principal and interest
with the Registrar. Thereafter, the Bonds shall be transferable
only upon the registration books of the City by the City Clerk,
or her successors, as transfer agent (the Transfer Agent) , at the
request of the registered owner thereof or his, her or its duly
authorized attorney-in-fact or legal representative. The
Registrar or Transfer Agent shall accept a Bond for registration
or transfer only if the registered owner is to be an individual,
a corporation, a partnership, or a trust. A Bond may be
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transferred upon surrender thereof together with a written
instrument of transfer duly executed by the registered owner or
his, her or its duly authorized attorney-in-fact or legal
representative with guaranty of signature satisfactory to the
Transfer Agent, containing written instructions as to the details
of the transfer, along with the social security number or federal
employer identification number of the transferee and, if the
transferee is a trust, the names and social security numbers of
the settlors and the beneficiaries of the trust. The Transfer
Agent shall not be required to transfer ownership of any Bond
during the fifteen ( 15) days prior to the first mailing of any
notice of redemption or to transfer ownership of any Bond
selected for redemption on or after the date of such mailing.
The registered owner of any Bond or Bonds may also exchange such
Bond or Bonds for another Bond or Bonds of authorized
denominations. Transfers and exchanges shall be made without
charge, except that the Transfer Agent may require payment of a
sum sufficient to defray any tax or other governmental charge
that may hereafter be imposed in connection with any transfer or
exchange of Bonds. No transfer of any Bond shall be effective
until entered on the registration books of the City. In the case
of every transfer or exchange, the Transfer Agent shall deliver
to the new registered owner a new Bond or Bonds of the same
aggregate principal amount, maturing in the same year, and
bearing interest at the same per annum interest rate as the Bond
or Bonds surrendered. Such Bond or Bonds shall be dated as of
their date of execution by the Finance Director or Acting Finance
Director of the City. New Bonds delivered upon any transfer or
exchange shall be valid obligations of the City, evidencing the
same debt as the Bonds surrendered, shall be secured by this
Ordinance, and shall be entitled to all of the security and
benefits hereof to the same extent as the Bonds surrendered. The
City may deem and treat the person in whose name any Bond is last
registered upon the books of the City as the absolute owner
thereof for the purpose of receiving payment of the principal of
and interest on such Bond and for all other purposes, and all
such payments so made to such person or upon his, her or its
order shall be valid and effective to satisfy and discharge the
liability of the City upon such Bond to the extent of the sum or
sums so paid, and the City shall not be affected by any notice to
the contrary.
9. Resignation of Agents . If the Paying Agent,
Registrar or Transfer Agent shall resign, or if the City shall
reasonably determine that the Paying Agent, Registrar or Transfer
Agent has become incapable of fulfilling his or her duties
hereunder, the City may, upon notice mailed to the registered
owners of the Bonds at the addresses shown on the registration
books of the City, appoint a successor paying agent, registrar or
transfer agent. Every such successor paying agent, registrar or
transfer agent shall be a bank or trust company located in the
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State of Colorado having a capital and surplus of not less than
$5, 000, 000. It shall not be required that the same institution
serve as paying agent, registrar and transfer agent, but the City
shall have the right to have the same institution serve as paying
agent, registrar and transfer agent.
10. Replacement of Bonds . If any Bond shall have been
lost, destroyed or wrongfully taken, the City shall provide for
the replacement thereof in the manner set forth and upon receipt
of the evidence, indemnity bond and reimbursement for expenses
provided in Ordinance No. 80, 1984.
11 . Recitals in Bonds. Each Bond shall recite that it
is issued under the authority of the Constitution, the Charter of
the City, the Act and this Ordinance. The Act provides that such
recital conclusively imparts full compliance with all of the
provisions and limitations thereof and that the Bonds containing
such recital are incontestable for any cause whatsoever after
their delivery for value.
12 . Form of Bonds. The Bonds shall be in
substantially the following form:
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[ Form of Bond]
(Text of Face)
UNITED STATES OF AMERICA
STATE OF COLORADO COUNTY OF LARIMER
CITY OF FORT COLLINS
GENERAL OBLIGATION PARK REFUNDING BOND
SERIES 1986
No. R- $
Interest Maturity Original
Rate Date Date CUSIP
December 1, August 1, 1986
REGISTERED OWNER:
PRINCIPAL SUM:
The City of Fort Collins, in the County of Larimer and
State of Colorado, for value received, hereby acknowledges itself
indebted and promises to pay to the Registered Owner (specified
above) , or registered assigns, the Principal Sum ( specified
above) , in lawful money of the United States of America, on the
Maturity Date ( specified above) , with interest thereon from
August 1, 1986, or the interest payment date to which interest
has been paid next preceding the date hereof, whichever is later,
to the Maturity Date, except if redeemed prior thereto, at the
per annum Interest Rate ( specified above) , payable semiannually
on the 1st day of June and the 1st day of December of each year,
commencing on December 1, 1986, or the first such date after the
date hereof, whichever is later, in the manner provided herein.
If upon presentation at maturity payment of the Principal Sum is
not made as provided herein, interest thereon continues at the
Interest Rate until the Principal Sum is paid in full .
Bonds of this issue maturing in the years 1986 through
1996 are not subject to optional redemption prior to their
respective maturity dates. Bonds of this issue maturing in the
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year 2001 are subject to optional redemption prior to their
maturity date, in whole or in part in inverse order of maturity
and by lot within a maturity, on December 1, 1996, and on any
interest payment date thereafter at a price equal to the
principal amount of each Bond so redeemed plus accrued interest
thereon to the redemption date.
Bonds of this issue maturing in the year 2001 are also
subject to mandatory sinking fund redemption prior to their
maturity date, by lot, on the dates specified below at a price
equal to the principal amount of each Bond so redeemed plus
accrued interest thereon to the redemption date. Such Bonds are
to be redeemed on December 1 in the following years in the
following aggregate principal amounts:
Years Principal Amounts
1997 $530, 000
1998 270, 000
1999 285 , 000
2000 305, 000
2001 325, 000
Bonds of this issue which are redeemable prior to their
respective maturity dates may be redeemed in part if issued in
denominations which are integral multiples of $5, 000. In such
case the Bond is to be surrendered in the manner provided for
transfers of ownership. Upon payment of the redemption price the
Registered Owner is to receive a new Bond or Bonds of authorized
denominations in aggregate principal amount equal to the
unredeemed portion of the Bond surrendered.
Notice of redemption of any Bonds of this issue is to
be given by the paying agent in the name of the City by sending a
copy of such notice by certified or registered first-class
postage prepaid mail, at least thirty (30) days prior to the
redemption date, to Morgan Guaranty Trust Company of New York,
New York, New York, and to the registered owner of each of the
Bonds being redeemed determined as of the close of business on
the day preceding the first mailing of such notice at the address
appearing on the registration books of the City. Such notice is
to specify the number or numbers of the Bonds to be redeemed,
whether in whole or in part, and the date fixed for redemption
and is further to state that on the redemption date there will be
due and payable upon each Bond or part thereof so to be redeemed
the principal amount or part thereof plus accrued interest
thereon to the redemption date and that from and after such date
interest will cease to accrue. Failure to mail any notice as
aforesaid or any defect in any notice so mailed with respect to
any Bond does not affect the validity of the redemption
proceedings with respect to any other Bond.
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REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF
THIS BOND SET FORTH ON THE REVERSE HEREOF.
The full faith and credit of the City of Fort Collins,
in the County of Larimer and State of Colorado, is hereby pledged
for the punctual payment of the principal of and interest on this
Bond.
IN WITNESS WHEREOF, the City of Fort Collins, Colorado,
has caused this Bond to be executed in its name and on its behalf
with the facsimile signature of the Mayor of the City, to be
sealed with a facsimile of the seal of the City, to be attested
with the facsimile signature of the City Clerk of the City, and
to be countersigned with the manual signature of the Finance
Director or Acting Finance Director of the City.
CITY OF FORT COLLINS, COLORADO
(FACSIMILE) By: (Facsimile Signature)
( SEAL ) Mayor
ATTEST:
(Facsimile Signature)
City Clerk
Countersigned:
(Manual Signature)
Finance Director or Acting
Finance Director
DATED:
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ABBREVIATIONS
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 - as tenants in common
TEN ENT - as tenants by the entireties
JT TEN - as joint tenants with the right of
survivorship and not as tenants in common
UNIF GIFT MIN ACT - Custodian
(Cust) (Minor)
under Uniform Gifts to Minors Act
(State)
Additional abbreviations may also be used
though not on the above list.
D2907 47 07/16/86
(Text of Reverse)
The principal of and interest on this Bond are payable
to the Registered Owner by the Finance Director of the City, or
his successors, as paying agent. The principal and the final
installment of interest are payable to the Registered Owner upon
presentation and surrender of this Bond at maturity or upon prior
redemption. Except as hereinbefore or hereinafter provided, the
interest is payable to the Registered Owner determined as of the
close of business on the regular record date, which is to be the
fifteenth day of the calendar month next preceding the interest
payment date, irrespective of any transfer of ownership hereof
subsequent to the regular record date and prior to such interest
payment date, by check or draft mailed to the Registered Owner at
the address appearing on the registration books of the City. Any
interest hereon not paid when due and any interest hereon
accruing after maturity is payable to the Registered Owner
determined as of the close of business on the special record
date, which is to be fixed by the paying agent for such purpose,
irrespective of any transfer of ownership of this Bond subsequent
to such special record date and prior to the date fixed by the
paying agent for the payment of such interest, by check or draft
mailed as aforesaid. Notice of the special record date and of
the date fixed for the payment of such interest is to be given by
sending a copy thereof by certified or registered first-class
postage prepaid mail, at least ten ( 10) days prior to the special
record date, to Morgan Guaranty Trust Company of New York, New
York, New York, and to the registered owner of each Bond upon
which interest will be paid determined as of the close of
business on the day preceding such mailing at the address
appearing on the registration books of the City.
This Bond is one of a series issued by the City of Fort
Collins, Colorado, for the purpose of refunding, paying and
discharging certain valid outstanding general obligation park
bonds of the City pursuant to, by virtue of, and in full
conformity with the Constitution of the State of Colorado, the
Charter of the City, part 1 of article 56 of title 11, Colorado
Revised Statutes, as amended, and all other laws of the State of
Colorado thereunto enabling, and pursuant to an ordinance of the
City duly adopted prior to the issuance of this Bond. The
foregoing recital conclusively imparts full compliance with all
of the provisions and limitations of the above-cited statute, and
said statute provides that this Bond is incontestable for any
cause whatsoever after its delivery for value.
It is further hereby recited, certified and warranted
that the total indebtedness of the City, including that of this
Bond, does not exceed any constitutional, charter or statutory
limitation of the State of Colorado or of the City; that
provision has been made for the levy and collection of a direct
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annual tax on all the taxable property within the City in amounts
sufficient, together with other legally available funds, to pay
the principal of and interest on this Bond as the same become
due.
Reference is hereby made to the ordinance of the City
authorizing the issuance of this Bond, and to any and all
modifications thereof and amendments thereto, for a description
of the provisions, terms and conditions upon which this Bond is
issued and secured, including, without limitation, definition of
terms used herein, the nature and extent of the security for this
Bond, provisions with respect to the application of the proceeds
of this Bond, the rights, duties and obligations of the City and
the members of its Council, and the rights of the Registered
Owner.
This Bond is transferable only upon the registration
books of the City by the City Clerk, or her successors, as
transfer agent, at the request of the Registered Owner or his,
her or its duly authorized attorney-in-fact or legal
representative, upon surrender hereof together with a written
instrument of transfer duly executed by the Registered Owner or
his, her or its duly authorized attorney-in-fact or legal
representative with guaranty of signature satisfactory to the
transfer agent, containing written instructions as to the details
of the transfer, along with the social security number or federal
employer identification number of the transferee and, if the
transferee is a trust, the names and social security numbers of
the settlors and beneficiaries of the trust. The transfer agent
is not required to transfer ownership of this Bond during the
fifteen ( 15) days prior to the first mailing of any notice of
redemption or to transfer ownership of any Bond selected for
redemption on or after the date of such mailing. The Registered
Owner may also exchange this Bond for another Bond or Bonds of
authorized denominations. Transfers and exchanges are to be made
without charge, except that the transfer agent may require
payment of a sum sufficient to defray any tax or other
governmental charge that may hereafter be imposed in connection
with any transfer or exchange of Bonds. No transfer of this Bond
is to be effective until entered on the registration books of the
City. In the case of every transfer or exchange, the transfer
agent is to deliver to the new registered owner a new Bond or
Bonds of the same aggregate principal amount, maturing in the
same year, and bearing interest at the same per annum rate as the
Bond or Bonds surrendered. Such Bond or Bonds are to be dated as
of their date of execution by the Finance Director or Acting
Finance Director of the City. The City may deem and treat the
person in whose name this Bond is last registered upon the books
of the City as the absolute owner hereof for the purpose of
receiving payment of the principal of and interest on this Bond
and for all other purposes, and all such payments so made to such
D2907 49 07/16/86
person or upon his, her or its order will be valid and effective
to satisfy and discharge the liability of the City upon this Bond
to the extent of the sum or sums so paid, and the City will not
be affected by any notice to the contrary.
D2907 50 07/16/86
(Assignment)
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned sells, assigns and
transfers unto
PLEASE INSERT SOCIAL SECURITY OR
OTHER IDENTIFYING NUMBER OF ASSIGNEE
(Name and Address of Assignee)
the attached Bond and does hereby irrevocably constitute and
appoint or its
successors, to transfer said Bond on the books kept for
registration thereof.
Dated:
Signature guaranteed:
(Bank, Trust Company or Firm)
NOTICE: The signature to this
assignment must correspond
with the name of the
Registered Owner as it appears
upon the face of the attached
Bond in every particular
without alteration or
enlargement or any change
whatever.
[End of Form of Bond]
D2907 51 07/16/86
13 . Disposition of Bonds and Proceeds. The Bonds,
when executed as provided herein, shall be delivered by the City
to the Purchaser upon receipt of full payment therefor in
accordance with the Bond Purchase Agreement.
Interest accrued on the Bonds from the date thereof to
the delivery date thereof shall be applied to the payment of
interest first due on the Bonds. The original proceeds of the
Bonds, exclusive of accrued interest, shall be used for the
purposes stated herein and for no other purposes, provided,
however, that any portion of the Bond proceeds may be temporarily
invested pending such use, with such temporary investment to be
made consistent with the covenant hereinafter made concerning
arbitrage bonds. Neither the Purchaser nor any subsequent owner
of the Bonds shall be in any way responsible for the application
of the proceeds of the Bonds by the City or any of its officers.
14. Escrow Fund. A special fund is hereby created and
designated as the "City of Fort Collins, General Obligation Park
Refunding Bonds, Series 1986, Escrow Fund" (the Escrow Fund) . A
portion of the original proceeds of the Bonds, exclusive of
accrued interest, shall be deposited in the Escrow Fund as
provided in the Escrow Agreement. The City shall purchase the
bills, certificates of indebtedness, notes, bonds or similar
securities which are direct obligations of, or the principal and
interest of which obligations are unconditionally guaranteed by,
the United States of America (Federal Securities) in which the
moneys in the Escrow Fund are to be invested and fund any
required cash balance as provided in the Escrow Agreement and in
accordance with the proposal submitted by the Purchaser. The
Escrow Fund shall be maintained in an amount at the time of the
deposit therein, and at all times subsequently, at least
sufficient, together with the known minimum yield to be derived
from the investment of the deposits therein or any part thereof
in Federal Securities, to pay the principal of, interest on, and
any premium due in connection with the redemption of the Refunded
Bonds as the same become due upon prior redemption. Moneys shall
be withdrawn by the Escrow Bank from the Escrow Fund in
sufficient amounts and at times to permit the payment of the
principal of, interest on, and any premium due in connection with
the redemption of the Refunded Bonds or upon prior redemption.
Any moneys remaining in the Escrow Fund after provision has been
made for the redemption of the Refunded Bonds shall be applied to
any lawful purposes of the City as the Council may hereafter
determine. If for any reason the amount in the Escrow Fund shall
at any time be insufficient for the purposes hereinbefore set
forth, the City shall forthwith from the first moneys available
therefor deposit therein such additional moneys as shall be
necessary to permit the payment in full of the principal of,
interest on, and any premium due in connection with the
redemption of the Refunded Bonds as herein provided.
D2907 52 07/25/86
15 . Redemption of Refunded Bonds; Notices of Refunding
and Redemption of Refunded Bonds. The City hereby exercises its
option to redeem the Refunded Bonds of the 1981 Issue, prior to
their respective maturity dates, on September 1 , 1991, at a price
equal to the principal amount of each Refunded Bond of the 1981
Issue so redeemed plus accrued interest thereon to the redemption
date plus, in the case of Refunded Bonds of the 1981 Issue
maturing in the years 1993 and 1994 only, a premium equal to 1%
of the principal amount of each such Refunded Bond of the 1981
Issue so redeemed. The City Clerk is hereby authorized and
directed to give forthwith and again no later than August 1,
1991, notice of refunding and redemption of the Refunded Bonds of
the 1981 Issue. The notice of refunding and redemption of the
Refunded Bonds of the 1981 Issue shall be given by publication of
such notice at least one ( 1) time by one ( 1 ) publication in The
Coloradoan, Fort Collins, Colorado, a newspaper of general
circulation published in the City, and in The Bond Buyer, New
York, New York, and by sending a copy of such notice by certified
or registered first-class postage prepaid mail to the holders of
each of the Refunded Bonds of the 1981 Issue if the names and
addresses of such holders are recorded with the City Clerk. The
notice of refunding and redemption of the Refunded Bonds of the
1981 Issue shall be in substantially the following form:
D2907 53 07/25/86
[ Form of Notice]
NOTICE OF REFUNDING AND REDEMPTION
OF CERTAIN
CITY OF FORT COLLINS, COLORADO
GENERAL OBLIGATION PARK BONDS
DATED SEPTEMBER 1, 1981 - $3, 000, 000
NOTICE IS HEREBY GIVEN to the holders of certain
outstanding City of Fort Collins, Colorado, General Obligation
Park Bonds, dated September 1 , 1981 , in the original aggregate
principal amount of $3 ,000,000 (the 1981 Issue) , that the City of
Fort Collins, Colorado (the City) , has issued General Obligation
Park Refunding Bonds, Series 1986, dated August 1, 1986, in the
aggregate principal amount of $3 ,845, 000, and deposited a portion
of the proceeds thereof in escrow with First Interstate Bank of
Fort Collins, N.A. , Fort Collins, Colorado, which proceeds have
been invested in bills, certificates of indebtedness, notes or
bonds which are direct obligations of, or the principal and
interest of which obligations are unconditionally guaranteed by,
the United States of America for the payment of the principal of,
interest on, and any premium due in connection with the
redemption of the bonds of the 1981 Issue numbered 195 through
600, maturing in the year 1993 and thereafter (the Refunded
Bonds) , as the same become due upon prior redemption.
According to a report pertaining to such escrow
prepared by a firm of certified public accountants licensed to
practice in Colorado, the escrow, including the known minimum
yield from such investments, is fully sufficient at the time of
the deposit and at all times subsequently, to pay the principal
of, interest on, and any premium due in connection with the
redemption of the Refunded Bonds as such payments become due upon
prior redemption.
NOTICE IS FURTHER HEREBY GIVEN that the City has
exercised its option to redeem the Refunded Bonds, prior to their
respective maturity dates, on September 1 , 1991, at a price equal
to the principal amount of each Refunded Bond so redeemed plus
accrued interest thereon to the redemption date plus, in the case
of Refunded Bonds maturing in the years 1993 and 1994 only, a
premium equal to 1% of the principal amount of each such Refunded
Bond so redeemed.
On the redemption date there will become and will be
due and payable upon each Refunded Bond so to be redeemed the
principal amount of each Refunded Bond so redeemed plus accrued
interest thereon to the redemption date plus, in the case of
Refunded Bonds maturing in the years 1993 and 1994 only, a
D2907 54 07/16/86
premium equal to 1% of the principal amount of each such Refunded
Bond so redeemed and from and after the redemption date interest
will cease to accrue. Each Refunded Bond will be redeemed on or
after the redemption date upon presentation and surrender
thereof.
DATED this day of 19_
CITY OF FORT COLLINS, COLORADO
City Clerk
[End of Form of Notice]
D2907 55 07/16/86
The City hereby exercises its option to redeem the
Refunded Bonds of the 1982 Issue, prior to their respective
maturity dates, on September 1, 1992 , at a price equal to the
principal amount of each Refunded Bond of the 1982 Issue so
redeemed plus accrued interest thereon to the redemption date.
The City Clerk is hereby authorized and directed to give
forthwith and again no later than August 1, 1992, notice of
refunding and redemption of the Refunded Bonds of the 1982 Issue.
The notice of refunding and redemption of the Refunded Bonds of
the 1982 Issue shall be given by publication of such notice at
least one ( 1) time by one ( 1 ) publication in The Coloradoan, Fort
Collins, Colorado, a newspaper of general circulation published
in the City, and in The Bond Buyer, New York, New York, and
sending a copy of such notice by certified or registered
first-class postage prepaid mail to Boettcher & Company, Inc . ,
Denver, Colorado, and to the holders of each of the Refunded
Bonds of the 1982 Issue if the names and addresses of the holders
are recorded with the City Clerk. The notice of refunding and
redemption of the Refunded Bonds of the 1982 Issue shall be in
substantially the following form:
D2907 56 07/16/86
[ Form of Notice]
NOTICE OF REFUNDING AND REDEMPTION
OF CERTAIN
CITY OF FORT COLLINS, COLORADO
GENERAL OBLIGATION PARK BONDS
DATED MARCH 1 , 1982 - $2 , 065,000
NOTICE IS HEREBY GIVEN to the holders of certain
outstanding City of Fort Collins, Colorado, General Obligation
Park Bonds, dated March 1, 1982 , in the original aggregate
principal amount of $2 ,065, 000 (the 1982 Issue) , that the City of
Fort Collins, Colorado (the City) , has issued General Obligation
Park Refunding Bonds, Series 1986, dated August 1, 1986, in the
aggregate principal amount of $3 , 845 , 000, and deposited a portion
of the proceeds thereof in escrow with First Interstate Bank of
Fort Collins, N.A. , Fort Collins, Colorado, which proceeds have
been invested in bills, certificates of indebtedness, notes or
bonds which are direct obligations of, or the principal and
interest of which obligations are unconditionally guaranteed by,
the United States of America for the payment of the principal of
and interest on the bonds of the 1982 Issue numbered 230 through
413 , maturing in the year 1994 and thereafter (the Refunded
Bonds) , as the same become due upon prior redemption.
According to a report pertaining to such escrow
prepared by a firm of certified public accountants licensed to
practice in Colorado, the escrow, including the known minimum
yield from such investments, is fully sufficient at the time of
the deposit and at all times subsequently, to pay the principal
of and interest on the Refunded Bonds as such payments become due
upon prior redemption.
NOTICE IS FURTHER HEREBY GIVEN that the City has
exercised its option to redeem in whole the Refunded Bonds, prior
to their respective maturity dates, on September 1, 1992, at a
price equal to the principal amount of each Refunded Bond so
redeemed plus accrued interest thereon to the redemption date.
On the redemption date there will become and will be
due and payable upon each Refunded Bond so to be redeemed the
principal amount of each Refunded Bond so redeemed plus accrued
interest thereon to the redemption date and from and after the
D2907 57 07/25/86
redemption date interest will cease to accrue. Each Refunded
Bond will be redeemed on or after the redemption date upon
presentation and surrender thereof.
DATED this day of 19_.
CITY OF FORT COLLINS, COLORADO
City Clerk
[End of Form of Notice]
D2907 58 07/16/86
16. Pledge of Ad Valorem Taxes. If required, the
principal and interest to become due on the Bonds in 1986 shall
be advanced from any revenues or funds of the City lawfully
available therefor. For the purpose of reimbursing any such
advance and also for the purpose of paying the principal of and
interest on the Bonds as the same become due and payable the
Council shall annually fix and certify a rate of levy for ad
valorem taxes to the Board of County Commissioners of Larimer
County, Colorado, which taxes, when levied on all of the taxable
property in the City in each of the years 1986 to 2000 inclusive,
will raise ad valorem tax revenues sufficient, together with
other legally available funds, to make such reimbursement and to
pay such Bond principal and interest as the same become due. In
the event any of said levies shall fail to produce an amount
sufficient to pay the principal of and interest on the Bonds
becoming due in the next succeeding year, the deficit shall be
made up in the next levy, and taxes shall be levied until the
principal of and interest on the Bonds shall be paid in full .
It shall be the duty of the Council annually at the
time and in the manner provided by law for levying other City
taxes, if such action shall be necessary to effectuate the
provisions of this Ordinance, to ratify and carry out the
provisions hereof with reference to the levy and collection of
the ad valorem taxes, all as herein specified, and to require the
officers of the City to levy, extend and collect said ad valorem
taxes in the manner provided by law for the purpose of providing
funds for the payment of the principal of and interest on the
Bonds as the same become due .
17 . Debt Service Fund. Interest accrued on the Bonds
from the date thereof to the delivery date thereof and all ad
valorem taxes, when collected, shall be deposited in the Debt
Service Fund of the City (the Debt Service Fund) . From any
moneys on deposit in the Debt Service Fund or, if required, from
any other unrestricted fund of the City, the City shall pay each
maturing installment of principal and interest on the Bonds until
the Bonds, both principal and interest, shall be fully paid,
satisfied and discharged. Nothing herein contained shall be so
construed as to prevent the City from committing and applying any
other funds or revenues that may now or hereafter be in the
possession of the City and legally available for the purpose of
payment of the principal of and interest on the Bonds. The Debt
Service Fund shall be maintained as a sinking fund for the
mandatory redemption of Bonds maturing in the year 2001 . Any
mandatory sinking fund redemption shall be treated as a maturing
installment of principal for purposes of this Section 17.
18. Arbitrage. The City shall make no investment or
other use of the proceeds of the Bonds at any time during the
term thereof which, if such investment or other use had been
D2907 59 07/25/86
reasonably expected on the date the Bonds are issued, would have
caused the Bonds to be arbitrage bonds within the meaning of
Section 103 (c) of the Internal Revenue Code of 1954, as amended,
and the regulations promulgated thereunder by the United States
Treasury Department.
19 . Appropriation of Sums. The sums hereinbefore
provided to pay the principal of and interest on the Bonds, when
due, are hereby appropriated for that purpose, and said amounts
for each year shall be included in the annual budget and the
appropriations ordinance, resolution, or measures to be adopted
or passed by the Council in each year while any of the Bonds
remain outstanding and unpaid.
20. Defeasance . When all of the principal of and
interest on the Bonds have been duly paid, all obligations
hereunder shall thereby be discharged and the Bonds shall no
longer be deemed to be outstanding. There shall be deemed to be
such due payment when the City has placed in escrow or in trust
with a trust bank located withih the State of Colorado Federal
Securities in an amount sufficient (including the known minimum
yield available for such purpose from Federal Securities in which
such amount may wholly or in part be initially invested) to pay
all principal of and interest on the Bonds. The Federal
Securities shall become due prior to the respective times at
which the proceeds thereof shall be needed in accordance with a
schedule established and agreed upon between the City and such
bank at the time of the creation of the escrow or trust, or the
Federal Securities shall be subject to redemption at the option
of the owner thereof to assure such availability as so needed to
meet such schedule . Nothing herein shall be construed to
prohibit a partial defeasance of the Bonds in accordance with the
provisions hereof.
21 . Rights and Immunities. Except as herein otherwise
expressly provided, nothing herein expressed or implied is
intended or shall be construed to confer upon or to give to any
person, other than the City and the registered owners from time
to time of the Bonds, any right, remedy or claim under or by
reason hereof or any covenant, condition or stipulation hereof.
All the covenants, stipulations, promises and agreements herein
contained by and on behalf of the City shall be for the sole and
exclusive benefit of the City and any registered owner of the
Bonds.
No recourse shall be had for the payment of the
principal of or interest on the Bonds or for any claim based
thereon or otherwise upon this Ordinance, or any other instrument
pertaining hereto, against any individual member of the Council
or any officer or other agent of the City, past, present or
future, either directly or indirectly through the City, or
D2907 60 07/16/86
otherwise, whether by virtue of any constitution, charter,
statute or rule of law, or by the enforcement of any penalty or
otherwise, all such liability, if any, being by the acceptance of
the Bonds and as a part of the consideration of their issuance
specially waived and released.
22 . Ratification. All action not inconsistent with
the provisions of this Ordinance heretofore taken by the City or
its officers and otherwise by the City directed toward the
issuance and delivery of the Bonds is hereby ratified, approved
and confirmed.
23 . Facsimile Signatures. Pursuant to the Uniform
Facsimile Signature of Public officials Act, part 1 of article 55
of title 11, Colorado Revised Statutes, as amended, the Mayor and
the City Clerk shall forthwith, and in any event prior to the
time the Bonds are delivered to the Purchaser, file with the
Colorado Secretary of State their manual signatures certified by
them under oath.
24. Authorized Action. The officers of the City are
hereby authorized and directed to enter into such agreements and
take all action necessary or appropriate to effectuate the
provisions of this Ordinance and to comply with the requirements
of law, including without limiting the generality of the
foregoing:
a. The printing of the Bonds, including the
printing upon each of such Bonds of a copy of the
approving legal opinion of Ballard, Spahr, Andrews &
Ingersoll, bond counsel, duly certified by the City
Clerk, and, if necessary or desirable pending delivery
of printed Bonds, the preparation of one or more
temporary typewritten Bonds in an aggregate principal
amount equal to that of the Bonds, otherwise in
substantially the same form and bearing the same terms,
to be delivered to the Purchaser and thereafter to be
exchanged by the Purchaser for printed Bonds when the
same are received by the City;
b. The preparation of preliminary and final
official statements for the use of prospective
purchasers of the Bonds, including the Purchaser and
its associates, if any;
C . The execution of the Escrow Agreement and
such certificates as may reasonably be required by the
Purchaser relating to the signing of the Bonds; the
tenure and identity of the City officials; the assessed
valuation and indebtedness of the City; if in
accordance with the facts the absence of litigation,
D2907 61 07/16/86
pending or threatened, affecting the validity of the
Bonds; the exemption of interest on the Bonds from
federal and State of Colorado income taxation, and
receipt of the Bond purchase price and of the Bonds;
d. The making of various statements, recitals,
certifications and warranties provided in the form of
Bond set forth in this Ordinance; and
e. The payment of the interest on the Bonds as
the same shall become due and the principal of the
Bonds at maturity or upon prior redemption without
further warrant or order.
25 . Ordinance Irrepealable . This Ordinance is, and
shall constitute, a legislative measure of the City, and after
the Bonds are issued and outstanding, this Ordinance shall
constitute a contract between the City and the registered owners
of the Bonds, and shall be and remain irrepealable until the
principal of and interest on the Bonds shall have been fully
paid, satisfied and discharged.
26. Statutory Limitations Met. The Council hereby
determines that the provisions and limitations of the Act and any
other applicable law imposed on the issuance of the Bonds have
been met.
27 . Repealer. All acts, orders, resolutions,
ordinances, or parts thereof taken by the City in conflict with
this Ordinance are hereby repealed, except that this repealer
shall not be construed so as to revive any act, order,
resolution, ordinance, or part thereof heretofore repealed.
28. Inconsistent Provisions of Act Superseded. Any
inconsistency between the provisions of this Ordinance and those
of the Act is intended by the Council . To the extent of any such
inconsistency the provisions of this Ordinance shall be deemed
made pursuant to the Charter of the City and shall supersede to
the extent permitted by law the conflicting provisions of the
Act.
29. Seyerability. If any paragraph, clause or
provision of this Ordinance is judicially adjudged invalid or
unenforceable, such judgment shall not affect, impair or
invalidate the remaining paragraphs, clauses or provisions
hereof, the intention being that the various paragraphs, clauses
or provisions hereof are severable.
D2907 62 07/16/86
Introduced, considered favorably on first reading, and
ordered published this 1st day of July, A.D. 1986, and to be
presented for final passage on the 15th day of July, A.D. 1986.
Aez
Mayor
ATTEST: �
City Clerk
READ, AMENDED, FINALLY PASSED AS AMENDED ON SECOND
READING, AND ORDERED PUBLISHED ONCE BY NUMBER AND TITLE ONLY
this 15th day of July, A.D. 1986.
M or
T�.
City Clerk
D2907 63 07/16/86