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O-07-03 02/10/03ORDINANCE NUMBER 0 -7 -03 AN ORDINANCE authorizing and providing for the issuance of $2,250,000 General Obligation Bonds (Alternate Revenue Source), Series 2003A, of the Village of Lemont, Cook, DuPage and Will Counties, Illinois, for the purpose of defraying the cost of certain redevelopment project costs, prescribing all the details of said bonds and providing for the imposition of taxes to pay the same, and for the collection, segregation and distribution of certain tax increment revenues of said Village. Adopted by the President and Board of Trustees on the 10th day of February, 2003. EXTRACT OF MINUTES of a regular public meeting of the President and Board of Trustees of the Village of Lemont, Cook, DuPage and Will Counties, Illinois, held at the Lemont Village Hall, Lemont, Illinois, at 7:30 p.m., on the 10th day of February, 2003. The President called the meeting to order and directed the Village Clerk of the Village to call the roll. Upon roll call, the following answered present: John F. Piazza President, and Trustees Benik, Blatzer, Coules, Rosendahl, Virgilio The following Trustees were absent: Trustee Markiewicz The President announced that the President and Board of Trustees would next consider the adoption of an ordinance entitled: AN ORDINANCE authorizing and providing for the issuance of $2,250,000 General Obligation Bonds (Alternate Revenue Source), Series 2003A, of the Village of Lemont, Cook, DuPage and Will Counties, Illinois, for the purpose of defraying the cost of certain redevelopment project costs, prescribing all the details of said bonds and providing for the imposition of taxes to pay the same, and for the collection, segregation and distribution of certain tax increment revenues of said Village. (the "Bond Ordinance"). Thereupon, the Clerk presented and the Village Attorney explained the Bond Ordinance, which was before the President and Board of Trustees in words and figures as follows: Lemont 2103745Lemont2003ATI FAItPMC TABLE OF CONTENTS SECTION HEADING PAGE PREAMBLES 1 SECTION 1. DEFINITIONS 6 SECTION 2. INCORPORATION OF PREAMBLES 11 SECTION 3. DETERMINATION TO ISSUE BONDS 11 SECTION 4. DETERMINATION OF PUBLIC PURPOSE 11 SECTION 5. BOND DETAILS 11 SECTION 6. EXECUTION; AUTHENTICATION 13 SECTION 7. OPTIONAL REDEMPTION 13 SECTION 8. REDEMPTION PROCEDURE 14 SECTION 9. BOOK -ENTRY SYSTEM AUTHORIZED; REGISTRATION OF BONDS; OWNER 17 SECTION 10. FORM OF BOND 21 SECTION 11. TREATMENT OF BONDS AS DEBT 30 SECTION 12. SPECIAL TAX ALLOCATION FUND - ACCOUNTS 30 SECTION 13. COVENANTS PERTAINING TO THE PROJECT AREA 33 SECTION 14. INVESTMENTS 34 SECTION 15. LIMITED INCREMENTAL PROPERTY TAXES PLEDGED 34 SECTION 16. CONTINUING DISCLOSURE UNDERTAKING 34 SECTION 17. 2003A FULL FAITH AND CREDIT TAXES; TAX LEVY 35 SECTION 18. FILING WITH COUNTY CLERK; BOND FUND 36 SECTION 19. ABATEMENT OF 2003A FULL FAITH AND CREDIT TAXES 37 SECTION 20. GENERAL COVENANTS 37 SECTION 21. ADDITIONAL BONDS 39 SECTION 22. PAYMENT AND DISCHARGE; REFUNDING 39 SECTION 23. SALE OF THE BONDS 40 SECTION 24. USE OF PROCEEDS 41 SECTION 25. NOT PRIVATE ACTIVITY BONDS 42 SECTION 26. GENERAL ARBITRAGE COVENANTS 43 SECTION 27. ARBITRAGE REBATE 44 SECTION 28. FURTHER TAX COVENANTS 45 SECTION 29. REGISTERED FORM 45 SECTION 30. QUALIFIED TAX - EXEMPT OBLIGATIONS 46 SECTION 31. OPINION OF COUNSEL EXCEPTION 46 SECTION 32. DUTIES OF BOND REGISTRAR 47 SECTION 33. THIS ORDINANCE A CONTRACT 48 SECTION 34. SUPPLEMENTAL ORDINANCES 48 SECTION 35. BOND REGISTRAR COVENANTS 49 SECTION 36. SEVERABILITY 51 SECTION 37. REPEALER 52 SECTION 38. EFFECTIVE DATE 52 SECTION 39. INSURANCE 52 This Table of Contents is for convenience only and is not a part of the ordinance. ORDINANCE NUMBER 0 ` 7 -0 3 AN ORDINANCE authorizing and providing for the issuance of $2,250,000 General Obligation Bonds (Alternate Revenue Source), Series 2003A, of the Village of Lemont, Cook, DuPage and Will Counties, Illinois, for the purpose of defraying the cost of certain redevelopment project costs, prescribing all the details of said bonds and providing for the imposition of taxes to pay the same, and for the collection, segregation and distribution of certain tax increment revenues of said Village. WHEREAS, the Village of Lemont, Cook, DuPage and Will Counties, Illinois (the "Village"), is a duly organized and existing municipality created under the provisions of the laws of the State of Illinois, and is now operating under the provisions of the Illinois Municipal Code, as supplemented and amended (the "Municipal Code"); and WHEREAS, the President and Board of Trustees of the Village (the "Board") have heretofore determined and do hereby determine that it is advisable, necessary and in the best interests of the Village and its residents, in order to promote the public health, welfare, safety and convenience, to undertake a redevelopment plan (the "Plan ") and project (the `Project ") in order to assure the redevelopment of the Downtown Redevelopment Project Area (the "Project Area"), including, but not limited to public street improvements, all as set forth in the Plan (said portion of the Project being, collectively, the "2003 Redevelopment Project"), at an estimated cost, including expenses and contingencies, of not less than $2,250,000, plus investment earnings thereon, for which there are no funds of the Village on hand and lawfully available for the purpose, and the entire $2,250,000 will need to be obtained through the borrowing of money and the issuance of bonds, all as provided in the Tax Increment Allocation Redevelopment Act, as amended (the "TIF Act"); and WHEREAS, the expenses and contingencies related to the 2003 Redevelopment Project include legal, financial, accounting services related to the accomplishment of said purpose and the issuance of bonds therefor; bond discount; capitalized interest; bond registrar and other related banking fees; credit enhancement fees; printing and publication costs; and other miscellaneous costs; and WHEREAS, the Village has heretofore created and established the 1991 Lemont Downtown Redevelopment Project Area Special Tax Allocation Fund (the "Special Tax Allocation Fund") in connection with its approval of the Plan and Project and designation of the Project Area, all as provided in the TIF Act; and WHEREAS, there are now on deposit in the Special Tax Allocation Fund certain incremental property tax revenues (the "Incremental Property Taxes ") derived from the Project Area; and WHEREAS, pursuant to the provisions of the Local Government Debt Reform Act, as amended (the "Reform Act"), "Alternate Bonds" as defined in the Reform Act may be issued pursuant to "Applicable Law ", for a lawful corporate purpose (the "Alternate Bond Purpose ") whenever there exists a "revenue source," as defined in the Reform Act; and WHEREAS, the 2003 Redevelopment Project constitutes a lawful corporate purpose, and as such, is an Alternate Bond Purpose, and WHEREAS, the Village has available a "revenue source," as follows: For the 2003 Redevelopment Project, the Village has available a revenue source, being a portion of the Incremental Property Taxes, all as provided in and pursuant to the TIF Act, and, accordingly, is authorized to issue Alternate Bonds payable from said revenue source pursuant to the provisions of the Reform Act; and WHEREAS, it is necessary and for the best interests of the Village that the Alternate Bond Purpose be undertaken, and in order to raise the funds required for such purpose, it will be necessary for the Village to borrow an amount not to exceed $2,250,000 and in evidence thereof to issue Alternate Bonds, being general obligation bonds, all as provided by the Reform Act, in an aggregate principal amount of not to exceed $2,250,000; and WHEREAS, pursuant to and in accordance with the provisions of Section 15 of the Reform Act, the Village is authorized to issue Alternate Bonds in an aggregate principal amount of $2,250,000 for the purpose of providing funds to pay the costs of the Alternate Bond Purpose; and WHEREAS, to such end and in accordance with the provisions of Applicable Law, the Board has heretofore, and it is expressly hereby, determined that there has heretofore been adopted an ordinance (the "Alternate Bond Authorizing Ordinance"), authorizing the issuance of alternate bonds, being bonds issued payable from a revenue source, as provided in the Reform Act in an amount not to exceed $2,250,000 for the 2003 Redevelopment Project (the "Alternate Bonds"), and that the Alternate Bond Authorizing Ordinance, together with a notice of intent to issue the Alternate Bonds, was timely published in a newspaper of general circulation in the Village, and an affidavit evidencing the publication of the Alternate Bond Authorizing Ordinance and said notice of intent have heretofore been presented to the Board and made a part of the permanent records of the Board; and WHEREAS, the Board has heretofore determined, and it is hereby expressly determined, that more than thirty (30) days (the "Petition Period") have expired since the date of publication of the Alternate Bond Authorizing Ordinance and said notice, and the Village has determined that no legally sufficient petition with the requisite number of valid signatures thereon was timely filed with the Village Clerk of the Village, requesting that the question of the issuance of the Alternate Bonds be submitted to referendum; and WHEREAS, the Board has heretofore, and it hereby expressly is, determined that the Village is now authorized to issue tax increment revenue bonds for the Project, or in lieu thereof, is now, and until the calendar date which is the third anniversary of the expiration of the Petition Period will be, authorized to issue Alternate Bonds to the amount of not to exceed $2,250,000 in accordance with the provisions of Applicable Law, and the Board hereby determines that it is necessary and desirable that there be issued at this time only so much of the Alternate Bonds as are necessary for the 2003 Redevelopment Project, and that the amount of bonds so required to be issued is $2,250,000 (the "2003A Alternate Bonds "), leaving none of the Alternate Bonds authorized but unissued; and WHEREAS, the 2003A Alternate Bonds to be issued will be payable from the Limited Incremental Property Taxes and the 2003A Full Faith and Credit Taxes, each as hereinafter defined; and WHEREAS, the Village has heretofore issued and there are now outstanding certain $1,400,000 original principal amount General Obligation Tax Increment Bonds, Series 1996 (Alternate Revenue Source) (the "1996 Prior Bonds ") and $1, 200,000 original principal amount General Obligation Bonds (Alternate Revenue Source), Series 2000B (the "2000B Prior Bonds ") (the 1996 Prior Bonds and the 2000B Prior Bonds, being, collectively, the "Prior Alternate Bonds"); and WHEREAS, the Prior Alternate Bonds were issued pursuant to an ordinance adopted by the Board on the 10th day of June, 1996 (the "1996 Prior Bond Ordinance ") and an ordinance adopted by the Board on the 10th day of July, 2000 (the "2000B Prior Bond Ordinance ") (the 1996 Prior Bond Ordinance and the 2000B Prior Bond Ordinance being, together, the "Prior Bond Ordinance"); and WHEREAS, pursuant to the Prior Bond Ordinance the Village expressly retained unto itself the power to pledge the Incremental Property Taxes for the benefit and security of the holders of additional bonds issued pursuant to the Act, to subordinate existing pledges of such moneys or to alter the use and distribution of moneys in the Fund; and WHEREAS, pursuant to an ordinance heretofore adopted by the Board (the "Lemont Senior Housing Bond Ordinance"), the Village has heretofore authorized and there are now outstanding and unpaid certain Senior Lien Tax Increment Revenue Bonds (Lemont Senior Housing L.P.I. Project), Series 2000, and that certain Lemont Senior Housing Subordinate Obligation (collectively, the "Lemont Senior Housing TIF Obligations"); and WHEREAS, pursuant to the Lemont Senior Housing Bond Ordinance the Village has pledged a portion of the Incremental Property Taxes (said portion being the "Lemont Senior Housing Incremental Property Taxes ") to the payment of the Lemont Senior Housing TIF Obligations; and WHEREAS, pursuant to the Lemont Senior Housing Bond Ordinance the Village has created the Lemont Senior Housing Sub -Fund of the Special Tax Allocation Fund and has covenanted and agreed that the Lemont Senior Housing Incremental Property Taxes shall be deposited to said Lemont Senior Housing Sub -Fund and shall be used solely and only to pay principal of and interest on the Lemont Senior Housing TIF Obligations as the same shall come due; and WHEREAS, the Board has determined that it is advisable and necessary and in the best interests of the Village that the priorities of lien for that portion of Incremental Property Taxes remaining which is net of the Lemont Senior Housing Incremental Property Taxes (said portion being the "Limited Incremental Property Taxes ") and pledged to pay the Prior Alternate Bonds and the Alternate Bonds now proposed to be issued be clarified and restated; and WHEREAS, the Board has heretofore and it is herein more explicitly determined that the Limited Incremental Property Taxes will be sufficient to provide or pay in each year to final maturity of the 2003A Alternate Bonds an amount not less than 1.25 times debt service of the 2003A Alternate Bonds proposed to be issued and the Prior Alternate Bonds; and WHEREAS, such determination of the sufficiency of the Limited Incremental Property Taxes is supported by reference to the Feasibility Report prepared by Kane, McKenna Capital, Inc., in connection with the Alternate Bonds (the "Report"); and WHEREAS, the Report has been presented to and accepted by the Board and is conclusive evidence that the conditions of the Reform Act have been met ; and WHEREAS, the Board hereby expressly recites that the Alternate Bonds proposed to be issued are issued in part pursuant to the Reform Act and that such recital shall be conclusive as against the Village, the Board and any other person as to the validity of the Alternate Bonds proposed to be issued and as to their compliance with the Reform Act; and WHEREAS, the Board has heretofore published notice of and held and finally adjourned a public hearing on the intent of the Board to issue the Alternate Bonds, all as and when and in the form required by the Bond Issue Notification Act, as amended: NOW THEREFORE Be It Ordained by the President and Board of Trustees of the Village of Lemont, Cook, DuPage and Will Counties, Illinois, as follows: SECTION 1. DEFINITIONS. The words and terms used in this Ordinance shall have the meanings set forth and defined for them herein unless the context or use clearly indicates another or different meaning is intended, including the words and terms as follows: "Accounting" means the annual accounting so defined in Section 12 hereof. "Alternate Bonds" means any Outstanding Bonds issued as alternate bonds under and pursuant to the provisions of the Reform Act, and includes, expressly, the Prior Alternate Bonds and the Bonds. "Additional Bonds" means any bonds or obligations issued in the future on a parity with and sharing ratably and equally in the Limited Incremental Property Taxes with the Bonds and the Prior Alternate Bonds. "Applicable Law" means, collectively, the Municipal Code, including, specifically, the TIF Act and the Reform Act. "Board" means the President and Board of Trustees of the Village. -6- "Bond" or "Bonds" or "2003A Alternate Bonds" means one or more, as applica- ble, of the $2,250,000 General Obligation Bonds (Alternate Revenue Source), Series 2003A, authorized to be issued by this Ordinance. "Bond Counsel" means Chapman and Cutler, Chicago, Illinois. "Bond Fund" means the 2003A Alternate Bond Fund established hereunder and further described by Section 18 of this Ordinance. "Bond Insurer" means MBIA Insurance Corporation, New York, New York, or successors and assigns. "Bond Register" means the books of the Village kept by the Bond Registrar to evidence the registration and transfer of the Bonds. "Bond Registrar" means Amalgamated Bank of Chicago, Chicago, Illinois, or successors or assigns. "Bond Year" means that twelve- calendar month period beginning on March 2 of any calendar year and ending on the subsequent March 1. "Business Day" means any day other than a day on which banks in the city of the Bond Registrar's principal corporate trust office are required or authorized to close. "Code" means the Internal Revenue Code of 1986, as amended. "Commitment" means the commitment to issue a municipal bond insurance policy for the Bonds dated January 31, 2003, and issued by the Bond Insurer. "County Clerks" means the respective County Clerks of The Counties of Cook, DuPage and Will, Illinois. "Depository" means The Depository Trust Company, New York, New York, as securities depository for the Bonds hereunder, or successor or assign duly qualified to act as a securities depository under this Ordinance. "Designated Officers" means the President, Village Clerk, Village Treasurer and Village Administrator, or any of them acting together, and successors or assigns. "Expense Fund" means the fund established hereunder and further described by Section 24 of this Ordinance. "Fiscal Year" means that twelve- calendar month period selected by the Board as the fiscal year for the Village. "2003A Full Faith and Credit Taxes" means the ad valorem taxes levied against all of the taxable property in the Village without limitation as to rate or amount, pledged hereunder by the Village as security for the Bonds. "Government Securities" means bonds, notes, certificates of indebtedness, treasury bills or other securities constituting direct obligations of the United States of America and all securities or obligations, the prompt payment of principal and interest of which is guaranteed by a pledge of the full faith and credit of the United States of America. "Incremental Property Taxes" means the ad valorem taxes, if any, arising from the tax levies upon taxable real property in the Project Area by any and all taxing districts or municipal corporations having the power to tax real property in the Project Area, which taxes are attributable to the increase in the then current equalized assessed valuation of each taxable lot, block, tract or parcel of real property in the Project Area over and above the Total Initial Equalized Assessed Value of each such piece of property, all as determined by the County Clerks in accord with Section 11- 74.4 -9 of the Act. "Independent" when used with respect to any specified person means such person who is in fact independent and is not connected with the Village as an officer, employee, underwriter, or person performing a similar function. Whenever it is herein provided that the opinion or report of any Independent person shall be furnished, such person shall be appointed by the Village, and such opinion or report shall state that the signer has read this definition and that the signer is Independent within the meaning hereof. "Interest Payment Date" means a Stated Maturity of interest on the Bonds. "Interest Requirement" means for any Bonds, Prior Alternate Bonds, Additional Bonds, or Junior Lien Bonds and for any Bond Year the aggregate amount of interest on such Bonds, Prior Alternate Bonds, Additional Bonds, or Junior Lien Bonds having a Stated Maturity during such Bond Year. "Junior Lien Bonds" means any obligations of the Village hereafter issued and payable from Limited Incremental Property Taxes, if any, on deposit in the Junior Lien Principal and Interest Account. "Junior Lien Principal and Interest Account" means the account so named and created in Section 12 of this Ordinance. "Lemont Senior Housing TIF Obligations" is defined in the preambles hereto. "Lemont Senior Housing Incremental Property Taxes" means that portion of the Incremental Property Taxes pledged under the Lemont Senior Housing Bond Ordinance to secure the Lemont Senior Housing TIF Obligations. "Limited Incremental Property Taxes" means Incremental Property Taxes net of the Lemont Senior Housing Incremental Property Taxes. "Municipal Code" means the Illinois Municipal Code, as supplemented and amended. "Ordinance" means this ordinance as originally adopted and as the same may from time to time be amended or supplemented. "Outstanding" or "outstanding" refers to Bonds, Prior Alternate Bonds, or Additional Bonds which are outstanding and unpaid; provided, however, such term shall not include Bonds, Prior Alternate Bonds, or Additional Bonds which (i) have matured and for which moneys are on deposit with proper escrow or paying agents, or are otherwise properly available, sufficient to pay all principal and interest thereof, or (ii) the provision for payment of which has been made by the Village by the deposit in an irrevocable trust or escrow account of funds or direct, full faith and credit obligations of the United States of America, the principal of and interest on which will be sufficient to pay at maturity or as called for redemption all of the principal of and interest and any applicable premium on such Bonds, Prior Alternate Bonds, or Additional Bonds. "Paying Agent" means Amalgamated Bank of Chicago, Chicago, Illinois, or successors or assigns. "Plan" means the comprehensive program of the Village for the redevelopment of the Project Area heretofore approved by the Board by an ordinance adopted on May 28, 1991, and together with any further amendments and supplements thereto. "Pledged Moneys" means, collectively, the Limited Incremental Property Taxes and the 2003A Full Faith and Credit Taxes as both are defined herein. "Principal Requirement" means for any Bonds, Prior Alternate Bonds, Additional Bonds or Junior Lien Bonds and for any Bond Year the aggregate principal amount of such Bonds, Prior Alternate Bonds, Additional Bonds or Junior Lien Bonds having a Stated Maturity during such Bond Year. "Prior Alternate Bonds" is defined in the preambles hereto. "Project" means the redevelopment project heretofore approved by the Board pursuant to an ordinance, adopted on May 28, 1991, in furtherance of the objectives of the Plan. "Project Area" means the Downtown Redevelopment Project Area heretofore designated by the Board in accord with the provisions of the TIF Act. "Purchase Price" means $2,243,102.50. "Purchaser" means Legg Mason Wood Walker, Inc., Chicago, Illinois. "Qualified Investments" means Government Securities and such other investments as are authorized for the Village under Illinois law. "2003 Redevelopment Project" means the public street improvements constituting a portion of the site preparation, redevelopment and public improvements project so defined in the preambles hereto. "Reform Act" means the Local Government Debt Reform Act of the State of Illinois, as supplemented and amended. "Representation Letter" means the written letter or agreement to be executed by and between the Village and the Depository in order to effectuate a book -entry system for the Bonds. "Senior Lien Bonds" means the Bonds, the Prior Alternate Bonds and any Additional Bonds. "Special Tax Allocation Fund" means the 1991 Lemont Downtown Redevelopment Project Area Special Tax Allocation Fund, heretofore established by the Village on May 28, 1991, and expressly continued hereunder. "Stated Maturity" when used with respect to any Bond, Prior Alternate Bond, Additional Bond or Junior Lien Bond or any interest thereon means the date specified in such Bond, Prior Alternate Bond, Additional Bond or Junior Lien Bond as the fixed date on which the principal of such Bond, Prior Alternate Bond, Additional Bond or Junior Lien Bond or such interest is due and payable whether by maturity, mandatory redemption, or otherwise. "Tax- exempt" means, with respect to the Bonds, the status of interest paid and received thereon as not includible in the gross income of the owners thereof under the Code for federal income tax purposes except to the extent that such interest is taken into account in computing an adjustment used in determining the alternative minimum tax for certain corporations and in computing the "branch profits tax" imposed on certain foreign corporations. "Tax Year" means the year for which an ad valorem tax levy is made by any and all taxing districts or municipal corporations having the power to tax real property in the Project Area. The 2002 Tax Year shall be that year during which ad valorem taxes levied for the year 2002 (collectible in the year 2003) are extended and collected, and so on. "TIF Act" means the Tax Increment Allocation Redevelopment Act of the State of Illinois, as supplemented and amended (65 ILCS 5/11- 74.4 -1 et seq.). "Total Initial Equalized Assessed Value" means the total initial equalized assessed value of the taxable real property within the Project Area determined by the County Clerks in accordance with the provisions of Section 11- 74.4 -9 of the Act. "Village" means the Village of Lemont, Cook, DuPage and Will Counties, Illinois. SECTION 2. INCORPORATION OF PREAMBLES. The Board hereby finds that the recitals contained in the preambles to this Ordinance are true and correct and hereby incorporates them into this Ordinance by this reference. SECTION 3. DETERMINATION TO ISSUE BONDS. It is necessary and in the best interests of the Village for the Village to undertake the 2003 Redevelopment Project for the public health, safety and welfare, and to issue the Bonds to enable the Village to pay the costs thereof. SECTION 4. DETERMINATION OF PUBLIC PURPOSE. The Board hereby determines the 2003 Redevelopment Project to be a proper corporate and public purpose as heretofore approved in the redevelopment plan and project for the Project Area and further expressly hereby determines that the costs of the 2003 Redevelopment Project are "redevelopment project costs" as defined in the TIF Act and that said costs have heretofore been approved by the Board as part of the Plan. SECTION 5. BOND DETAILS. For the purpose of providing for the payment of the costs of the 2003 Redevelopment Project, there shall be issued and sold the Bonds in the principal amount of $2,250,000. The Bonds shall be Senior Lien Bonds and shall each be designated "General Obligation Bond (Alternate Revenue Source), Series 2003A," shall be dated February 15, 2003 (the "Dated Date"), and shall also bear the date of authentication thereof. The Bonds shall be in fully registered form, shall be in denominations of $5,000 or authorized integral multiples thereof (but no single Bond shall represent principal maturing on more than one date), shall be numbered in such reasonable fashion as may be selected by the Bond Registrar, and shall mature serially on March 1 of the years, in the amounts and bearing interest at the rates percent per annum as follows (subject, however, to right of prior redemption as hereinafter provided): YEAR AMOUNT ($) RATE ( %) 2007 220,000 2.50 2008 225,000 2.75 2009 230,000 3.00 2010 240,000 3.25 2011 250,000 3.50 2012 255,000 3.55 2013 265,000 3.60 2014 275,000 3.70 2015 290,000 3.80 It is hereby expressly found and determined that no Bond matures later than the earlier of 20 years from its Dated Date or December 31, 2015, being the December 31 of the calendar year in which taxes levied for the twenty -third calendar year after the designation of the Project Area will be extended for collection. Each Bond shall bear interest from the later of its Dated Date as hereinabove provided or from the most recent Interest Payment Date to which interest has been paid or duly provided for, until the principal amount of such Bond is paid or duly provided for, such interest (computed upon the basis of a 360 -day year of twelve 30 -day months) being payable semiannually on March 1 and September 1 of each year, commencing on September 1, 2003. Interest on each Bond shall be paid by check or draft of the Bond Registrar, payable upon presentation thereof in lawful money of the United States of America, to the person in whose name such Bond is registered at the close of business on the Regular Record Date or at such other address furnished in writing by such person to the Bond Registrar or as shall otherwise be agreed by the Village and the Depository. The principal of and premium, if any, on the Bonds shall be payable in lawful money of the United States of America upon presentation thereof at the principal office maintained for the purpose by the Bond Registrar in Chicago, Illinois, or at successor Bond -12- Registrar and address. If an Interest Payment Date is not a Business Day at the place of payment, then payment may be made at that place on the next Business Day, and no interest shall accrue for the intervening period. SECTION 6. EXECUTION; AUTHENTICATION. The Bonds shall be executed on behalf of the Village with the manual or duly authorized facsimile signature of the Village President and attested with the manual or duly authorized facsimile signature of the Village Clerk, as they may determine, and shall have impressed or imprinted thereon the corporate seal or facsimile thereof of the Village. In case any officer whose signature shall appear on any Bond shall cease to be such officer before the delivery of such Bond, such signature shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. All Bonds shall have thereon a certificate of authentication substantially in the form hereinafter set forth duly executed by the Bond Registrar as authenticating agent of the Village and showing the date of authentication. No Bond shall be valid or obligatory for any purpose or be entitled to any security or benefit under this Ordinance unless and until such certificate of authentication shall have been duly executed by the Bond Registrar by manual signature, and such certificate of authentication upon any such Bond shall be conclusive evidence that such Bond has been authenticated and delivered under this Ordinance. The certificate of authentication on any Bond shall be deemed to have been executed by it if signed by an authorized officer of the Bond Registrar, but it shall not be necessary that the same officer sign the certificate of authentication on all of the Bonds issued hereunder. SECTION 7. OPTIONAL REDEMPTION. The Bonds due on March 1, 2013, and thereafter are subject to redemption prior to maturity at the option of the Village, from any available funds, in whole or in part on any date on or after March 1, 2012, and if in part, in such principal amounts and from such maturities as determined by the Village, and if less than an entire -13- maturity, in integral multiples of $5,000, selected by lot by the Bond Registrar as hereinafter provided, at a redemption price of par plus accrued interest to the date fixed for redemption. SECTION 8. REDEMPTION PROCEDURE. The Village shall, at least 45 days prior to the redemption date (unless a shorter time period shall be satisfactory to the Bond Registrar), notify the Bond Registrar of such redemption date and of the maturities and principal amounts of Bonds to be redeemed. For purposes of any redemption of less than all of the Bonds of a single maturity, the particular Bonds or portions of Bonds to be redeemed shall be selected by lot not more than 60 days prior to the redemption date by the Bond Registrar for the Bonds of such maturity by such method of lottery as the Bond Registrar shall deem fair and appropriate; provided, that such lottery shall provide for the selection for redemption of Bonds or portions thereof so that any $5,000 Bond or $5,000 portion of a Bond shall be as likely to be called for redemption as any other such $5,000 Bond or $5,000 portion. The Bond Registrar shall promptly notify the Village and the Bond Registrar in writing of the Bonds or portions of Bonds selected for redemption and, in the case of any Bond selected for partial redemption, the principal amount thereof to be redeemed. Unless waived by the registered owner of Bonds to be redeemed, official notice of any such redemption shall be given by the Bond Registrar on behalf of the Village by mailing the redemption notice by first class mail not less than 30 days and not more than 60 days prior to the date fixed for redemption to each registered owner of the Bond or Bonds to be redeemed at the address shown on the Bond Register or at such other address as is furnished in writing by such registered owner to the Bond Registrar. All official notices of redemption shall include at least the information as follows: (a) the redemption date; (b) the redemption price; (c) if less than all of the outstanding Bonds of a particular maturity are to be redeemed, the identification (and, in the case of partial redemption of Bonds within such maturity, the respective principal amounts) of the Bonds to be redeemed; (d) a statement that on the redemption date the redemption price will become due and payable upon each such Bond or portion thereof called for redemption and that interest thereon shall cease to accrue from and after said date; and (e) the place where such Bonds are to be surrendered for payment of the redemption price, which place of payment shall be the principal office maintained for the purpose by the Bond Registrar. Prior to any redemption date, the Village shall deposit with the Bond Registrar an amount of money sufficient to pay the redemption price of all the Bonds or portions of Bonds which are to be redeemed on that date. Such additional notice of such redemption as shall be specified in the Representation Letter shall be given to the Depository. Official notice of redemption having been given as aforesaid, the Bonds or portions of Bonds so to be redeemed shall, on the redemption date, become due and payable at the redemption price therein specified, and from and after such date (unless the Village shall default in the payment of the redemption price), such Bonds or portions of Bonds shall cease to bear interest. Neither the failure to mail such redemption notice, nor any defect in any notice so mailed, to any particular registered owner of a Bond, shall affect the sufficiency of such notice with respect to other registered owners. Notice having been properly given, failure of a registered owner of a Bond to receive such notice shall not be deemed to invalidate, limit or delay the effect of the notice or redemption action described in the notice. Such notice may be waived in writing by a registered owner of a Bond entitled to receive such notice, either before or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice by registered owners shall be filed with the Bond Registrar, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver. Upon surrender of such Bonds for redemption in accordance with said notice, such Bonds shall be paid by the Bond Registrar at the redemption price. The procedure for the payment of interest due as part of the redemption price shall be as herein provided for payment of interest otherwise due. Upon surrender for any partial redemption of any Bond, there shall be prepared for the registered owner a new Bond or Bonds of like tenor, of authorized denominations, of the same maturity, and bearing the same rate of interest in the amount of the unpaid principal. If any Bond or portion of a Bond called for redemption shall not be so paid upon surrender thereof for redemption, the principal shall, until paid or duly provided for, bear interest from the redemption date at the rate borne by the Bond or portion of Bond so called for redemption. All Bonds which have been redeemed shall be cancelled and destroyed by the Bond Registrar and shall not be reissued. In addition to the foregoing notice, further notice shall be given by the Bond Registrar on behalf of the Village as set out below, but no defect in said further notice nor any failure to give all or any portion of such further notice shall in any manner defeat the effectiveness of a call for redemption if notice thereof is given as above prescribed. Each further notice of redemption given hereunder shall contain the information required above for an official notice of redemption plus (a) the CUSIP numbers of all Bonds being redeemed; (b) the date of issue of the Bonds as originally issued; (c) the rate of interest borne by each Bond being redeemed; (d) the maturity date of each Bond being redeemed; and (e) any other descriptive information needed to identify accurately the Bonds being redeemed. Each further notice of redemption shall be sent at least 35 days before the redemption date by first class mail or overnight delivery service to all registered securities depositories then in the business of holding substantial amounts of obligations of types comprising the Bonds (such depositories now including Depository Trust Company of New York, New York) and to one or more national information services, chosen in the discretion of the Bond Registrar, that disseminate notice of redemption of obligations such as the Bonds. Upon the payment of the redemption price of Bonds being redeemed, each check or other transfer of funds issued for such purpose shall bear the CUSIP number identifying, by issue and maturity, the Bonds being redeemed with the proceeds of such check or other transfer. As part of its duties hereunder, the Bond Registrar shall prepare and forward to the Village a statement as to notice given with respect to each redemption together with copies of the notices as mailed and published. SECTION 9. BOOK -ENTRY SYSTEM AUTHORIZED; REGISTRATION OF BONDS; OWNERS. A. BOOK -ENTRY SYSTEM AUTHORIZED The Bonds shall be initially issued in the form of a separate single fully registered Bond for each of the maturities of the Bonds. Upon initial issuance, the ownership of each such Bond shall be registered in the Bond Register in the name of "Cede & Co. ", or any successor thereto, as nominee of the Depository. All of the outstanding Bonds from time to time shall be registered in the Bond Register in the name of Cede & Co., as nominee of the Depository. The Treasurer of the Village and the Bond Registrar are authorized to execute and deliver on behalf of the Village a Representation Letter. Without limiting the generality of the authority given with respect to entering into such Representation Letter, it may contain provisions relating to (a) payment procedures, (b) transfers of the Bonds or of beneficial interests therein, (c) redemption notices and procedures unique to the Depository, (d) additional notices or communications, and (e) amendment from time to time to conform with changing customs and practices with respect to securities industry transfer and payment practices. With respect to Bonds registered in the Bond Register in the name of Cede & Co., as nominee of the Depository, the Village and the Bond Registrar shall have no responsibility or obligation to any broker - dealer, bank or other financial institution for which the Depository holds Bonds from time to time as securities depository (each such broker - dealer, bank or other financial institution being referred to herein as a `Depository Participant") or to any person on behalf of whom such a Depository Participant holds an interest in the Bonds. Without limiting the meaning of the immediately preceding sentence, the Village and the Bond Registrar shall have no responsibility or obligation with respect to (a) the accuracy of the records of the Depository, Cede & Co., or any Depository Participant with respect to any ownership interest in the Bonds, (b) the delivery to any Depository Participant or any other person, other than a registered owner of a Bond as shown in the Bond Register, of any notice with respect to the Bonds, including any notice of redemption, or (c) the payment to any Depository Participant or any other person, other than a registered owner of a Bond as shown in the Bond Register, of any amount with respect to principal of or interest on the Bonds. No person other than a registered owner of a Bond as shown in the Bond Register shall receive a Bond certificate with respect to any Bond. Upon delivery by the Depository to the Bond Registrar of written notice to the effect that the Depository has determined to substitute a new nominee in place of Cede & Co., and subject to the provisions hereof with respect to the payment of interest to the registered owners of Bonds at the close of business on the applicable record date, the name "Cede & Co." in this Ordinance shall refer to such new nominee of the Depository. In the event that (a) the Village determines that the Depository is incapable of discharging its responsibilities described herein and in the Representation Letter, (b) the agreement among the Village, the Bond Registrar and the Depository evidenced by the Representation Letter shall be terminated for any reason or (c) the Village determines that it is in the best interests of the Village or of the beneficial owners of the Bonds that they be able to obtain certificated Bonds, the Village shall notify the Depository and the Depository Participants of the availability of Bond certificates, and the Bonds shall no longer be restricted to being registered in the Bond Register in the name of Cede & Co., as nominee of the Depository. The Village may determine that the Bonds shall be registered in the name of and deposited with a successor depository operating a book -entry system, as may be acceptable to the Village, or such depository's agent or designee, and if the Village does not select such alternate book -entry system, then the Bonds may be registered in whatever name or names registered owners of Bonds transferring or exchanging Bonds shall designate, in accordance with the provisions hereof. Notwithstanding any other provision of this Ordinance to the contrary, so long as any Bond is registered in the name of Cede & Co., as nominee of the Depository, all payments with respect to principal of and interest on such Bond and all notices with respect to such Bond shall be made and given, respectively, in the manner provided in the Representation Letter. B. REGISTRATION. The Village shall cause the Bond Register to be kept at the principal office maintained for the purpose by the Bond Registrar, which is hereby constituted and appointed the registrar of the Village for the Bonds. The Village is authorized to prepare, and the Bond Registrar or such other agent as the Village may designate shall keep custody of, multiple Bond blanks executed by the Village for use in the transfer and exchange of Bonds. Any Bond may be transferred or exchanged, but only in the manner, subject to the limitations, and upon payment of the charges as set forth in this Ordinance. Upon surrender for transfer or exchange of any Bond at the office of the Bond Registrar, duly endorsed by or accompanied by a written instrument or instruments of transfer or exchange in form satisfactory to the Bond Registrar and duly executed by the registered owner or an attorney for such owner duly authorized in writing, the Village shall execute and the Bond Registrar shall authenticate, date and deliver in the name of the transferee or transferees or, in the case of an exchange, the registered owner, a new fully registered Bond or Bonds of like tenor, of the same maturity, bearing the same interest rate, of authorized denominations, for a like aggregate principal amount. The Bond Registrar shall not be required to transfer or exchange any Bond during the period from the close of business on the 15th day of the calendar month preceding an Interest Payment Date on the Bonds or the giving of notice of redemption of Bonds to the opening of business on such Interest Payment Date or to transfer or exchange any Bond all or a portion of which has been called for redemption. The execution by the Village of any fully registered Bond shall constitute full and due authorization of such Bond, and the Bond Registrar shall thereby be authorized to authenticate, date and deliver such Bond; provided, however, the principal amount of Bonds of each maturity authenticated by the Bond Registrar shall not at any one time exceed the authorized principal amount of Bonds for such maturity less the amount of such Bonds which have been paid. The person in whose name any Bond shall be registered shall be deemed and regarded as the absolute owner thereof for all purposes, and payment of the principal of or interest on any Bond shall be made only to or upon the order of the registered owner thereof or the owner's legal representative. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid. No service charge shall be made for any transfer or exchange of Bonds, but the Village or the Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any transfer or exchange of Bonds. SECTION 10. FORM OF BOND. The Bonds shall be in substantially the form hereinafter set forth; provided, however, that if the text of the Bonds is to be printed in its entirety on the front side of the Bonds, then the second paragraph on the front side and the legend "See Reverse Side for Additional Provisions" shall be omitted and the text of paragraphs set forth for the reverse side shall be inserted immediately after the first paragraph. [Form of Bond - Front Side] REGISTERED REGISTERED NO. $ UNITED STATES OF AMERICA STATE OF ILLINOIS COUNTY OF COOK VILLAGE OF LEMONT GENERAL OBLIGATION BOND (ALTERNATE REVENUE SOURCE) SERIES 2003A See Reverse Side for Additional Provisions Interest Maturity Rate: Date: March 1, Dated Date: February 15, 2003 CUSIP Registered Owner: CEDE & CO. Principal Amount: DOLLARS KNOW ALL PERSONS BY THESE PRESENTS that the Village of Lemont, Cook, DuPage and Will Counties, Illinois, a municipality and unit of local government and political subdivision of the State of Illinois (the "Village"), hereby acknowledges itself to owe and for value received promises to pay to the Registered Owner identified above, or registered assigns as hereinafter provided, on the Maturity Date identified above, the Principal Amount identified above and to pay interest (computed on the basis of a 360 -day year of twelve 30 -day months) on such Principal Amount from the later of the Dated Date of this Bond identified above or from the most recent Interest Payment Date to which interest has been paid or duly provided for at the Interest Rate per annum identified above, such interest to be payable semiannually on March 1 and September 1 of each year, commencing on September 1, 2003, until the Principal Amount is paid or duly provided for, except as the hereinafter stated provisions for redemption prior to maturity may and shall become applicable hereto. The Principal Amount of this Bond and premium, if any, hereon are payable in lawful money of the United States of America upon presentation at the principal office maintained for the purpose by Amalgamated Bank of Chicago, Chicago, Illinois, as bond registrar and paying agent (the "Bond Registrar"). Payment of interest shall be made to the Registered Owner hereof, as shown on the registration books of the Village maintained by Bond Registrar at the close of business on the Regular Record Date and shall be paid by check or draft of the Bond Registrar, payable upon presentation in lawful money of the United States of America, mailed to the address of such Registered Owner as it appears on such registration books or at such other address furnished in writing by such Registered Owner to the Bond Registrar, or as shall otherwise be agreed by the Village and the Depository. If an Interest Payment Date is not a Business Day at the place of payment, then payment may be made at that place on the next Business Day, and no interest shall accrue for the intervening period. Reference is hereby made to the further provisions of this Bond set forth on the reverse hereof, and such further provisions shall for all purposes have the same effect as if set forth at this place. It is hereby certified and recited that all acts, conditions and things required to be done precedent to and in the issuance of this Bond have been done and have happened and have been performed in regular and due form of law; that the indebtedness of the Village, including the issue of Bonds of which this is one, does not exceed any limitation imposed by law; that provision has been made for the collection and allocation of the Incremental Property Taxes, the levy and collection of the 2003A Full Faith and Credit Taxes, and the segregation of the Pledged Moneys to pay the interest hereon as it falls due and also to pay and discharge the principal hereof at maturity; and that the Village hereby covenants and agrees that it will properly account for said Pledged Moneys and will comply with all the covenants of and maintain the funds and accounts as provided by the Ordinance. For the prompt payment of this Bond, both principal and interest at maturity, the full faith, credit and resources of the Village are hereby irrevocably pledged. This Bond shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been signed by the Bond Registrar. IN WITNESS WHEREOF, the Village of Lemont, Cook, DuPage and Will Counties, Illinois, by its President and Board of Trustees, has caused this Bond to be executed with the manual or duly authorized facsimile signature of its President and attested by the manual or duly authorized facsimile signature of its Village Clerk and its corporate seal or a facsimile thereof to be impressed or reproduced hereon, all as appearing hereon and as of the Dated Date identified above. ATTEST: / 'il/111;-/X ..1/2.-- L- Village Clerk, Village of Lemont Cook, DuPage and Will Counties, Illinois [SEAL] nt, Village DuPage and is ties, Date of Authentication: CERTIFICATE OF AUTHENTICATION This Bond is one of the Bonds described in the within - mentioned Ordinance and is one of the General Obligation Bonds (Alternate Revenue Source), Series 2003A, of the Village of Lemont, Cook, DuPage and Will Counties, Illinois. Amalgamated Bank of Chicago, Chicago, Illinois as Bond Registrar [Form of Bond - Reverse Side] Village of Lemont, Cook, DuPage and Will Counties, Illinois General Obligation Bond (Alternate Revenue Source) Series 2003A This bond and the bonds of the series of which it forms a part ("Bond" and "Bonds" respectively) are of an authorized issue of $2,250,000 of like dated date and tenor except as to maturity, rate of interest and right of redemption and are issued pursuant to Division 4 of Article 8 and Division 74.4 of Article 11 of the Illinois Municipal Code ( "Applicable Law") and pursuant to the Local Government Debt Reform Act, all acts of the General Assembly of the State of Illinois, and as supplemented and amended, for the purpose of paying the costs of the 2003 Redevelopment Project of the Village, as more fully described in the Ordinance as hereinbelow defined. The Bonds are issued pursuant to an authorizing ordinance passed by the Board and by a more complete bond ordinance passed by the Board on the 10th day of February, 2003 (the "Ordinance"), to which reference is hereby expressly made for further definitions and terms and to all the provisions of which the Registered Owner by the acceptance of this Bond assents. The Bonds are payable from (i) (a) ratably and equally with certain heretofore issued and now outstanding General Obligation Tax Increment Bonds, Series 1996 (Alternate Revenue Source) (the "1996 Prior Alternate Bonds"), and General Obligation Bonds (Alternate Revenue Source), Series 2000B (the "2000B Prior Alternate Bonds" and, together with the 1996 Prior Alternate Bonds, the "Prior Alternate Bonds"), that portion of the incremental property taxes, if any, derived from the Downtown Redevelopment Project Area of the Village net of the amount thereof pledged to the Lemont Senior Housing TIF Obligations (said portion being the "Limited Incremental Property Taxes") and (b) the amounts on deposit in and to the credit of the various accounts of the Public Redevelopment Projects Sub -Fund of the Special Tax Allocation Fund for the Downtown Redevelopment Project Area of the Village (the "Special Tax Allocation Fund") and (ii) ad valorem taxes levied against all of the taxable property in the Village without limitation as to rate or amount (the "2003A Full Faith and Credit Taxes") (the Limited Incremental Property Taxes and the 2003A Full Faith and Credit Taxes being, collectively, the "Pledged Moneys"), all in accordance with the provisions of the Applicable Law. This Bond shall not constitute an indebtedness of the Village within the meaning of any constitutional or statutory provision or limitation, unless the 2003A Full Faith and Credit Taxes shall have been extended pursuant to the general obligation, full faith and credit promise supporting the Bonds, in which case the amount of the Bonds then Outstanding shall be included in the computation of indebtedness of the Village for purposes of all statutory provisions or limi- tations until such time as an audit of the Village shall show that the Bonds shall have been paid from the Limited Incremental Property Taxes for a complete Fiscal Year. Under the Applicable Law and the Ordinance, the Limited Incremental Property Taxes shall be deposited into the Public Redevelopment Projects Sub -Fund of the Special Tax Allocation Fund, which shall be used only and has been heretofore pledged for the purposes as set forth in the TIF Act, and in making all payments required to maintain the accounts established under the Ordinance. Bonds may be issued in the future to share in the Limited Incremental Property Taxes on a parity as to lien with the Bonds and the Prior Alternate Bonds as provided in the Ordinance and the Applicable Law. The 2003A Full Faith and Credit Taxes secure, solely and only, the Bonds, and are not pledged to and will not be available for payment of the Prior Alternate Bonds or any Additional Bonds. Junior Lien Bonds may be issued in the priority of lien as provided in the Ordinance. Under the Applicable Law and the Ordinance, available Limited Incremental Property Taxes shall be deposited to the credit of the Senior Lien Principal and Interest Account of the Public Redevelopment Projects Sub -Fund of the Special Tax Allocation Fund and the 2003A Full Faith and Credit Taxes shall be deposited into and segregated in the Bond Fund, each as provided by the Ordinance. Moneys on deposit in said Senior Lien Principal and Interest Account and the Bond Fund shall be used and are pledged for paying (first) the principal of and interest on the Bonds and any Additional Bonds, (second) for paying the principal of and interest on any Junior Lien Bonds and (last) for any further purposes, all in the priorities of lien and as provided by the terms of the Ordinance. The Bonds due March 1, 2013, and thereafter are subject to redemption prior to maturity, at the option of the Village, from any available funds, in whole or in part on any date on or after March 1, 2012, and if in part, in such principal amounts and from such maturities as determined by the Village, and if less than an entire maturity, in integral multiples of $5,000, selected by lot by the Bond Registrar, at a redemption price of par plus accrued interest to the date of redemption. Unless waived by the Registered Owner of Bonds to be redeemed, notice of any such redemption shall be given by the Bond Registrar on behalf of the Village by mailing the redemption notice by first class mail not less than 30 days and not more than 60 days prior to the date fixed for redemption to each Registered Owner of the Bond or Bonds to be redeemed at the address shown on the Bond Register or at such other address as is furnished in writing by such Registered Owner to the Bond Registrar. Neither the failure to mail such redemption notice, nor any defect in any notice so mailed, to any particular Registered Owner of a Bond, shall affect the sufficiency of such notice with respect to other Registered Owners. Notice having been properly given, failure of a Registered Owner of a Bond to receive such notice shall not be deemed to invalidate, limit or delay the effect of the notice or redemption action described in the notice. Such notice may be waived in writing by a Registered Owner of a Bond entitled to receive such notice, either before or after the event, and such waiver shall be the equivalent of such notice. Notice of redemption having been given as aforesaid, the Bonds or portions of Bonds so to be redeemed shall, on the redemption date, become due and payable at the redemption price therein specified, and from and after such date (unless the Village shall default in the payment of the redemption price) such Bonds or portions of Bonds shall cease to bear interest. Upon surrender of such Bonds for redemption in accordance with said notice, such Bonds shall be paid by the Bond Registrar at the redemption price. The procedure for the payment of interest due as part of the redemption price shall be as herein provided for payment of interest otherwise due. Upon surrender for any partial redemption of any Bond, there shall be prepared for the Registered Owner a new Bond or Bonds of like tenor, of authorized denominations, of the same maturity, and bearing the same rate of interest in the amount of the unpaid principal. This Bond may be transferred or exchanged, but only in the manner, subject to the limitations, and upon payment of the charges as set forth in the Ordinance. The Village and the Bond Registrar may deem and treat the Registered Owner hereof as the absolute owner hereof for the purpose of receiving payment of or on account of principal hereof and interest due hereon and for all other purposes, and neither the Village nor the Bond Registrar shall be affected by any notice to the contrary. The Village has designated this Bond a "qualified tax - exempt obligation" pursuant to Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. Add Insurance Legend Here ASSIGNMENT FOR VALUE RECEIVED the undersigned sells, assigns and transfers unto [Identifying Numbers] (Name and Address of Assignee) the within Bond and does hereby irrevocably constitute and appoint as attorney to transfer the said Bond on the books kept for registration thereof with full power of substitution in the premises. Dated: Signature guaranteed: NOTICE The signature to this transfer and assignment must correspond with the name of the Registered Owner as it appears upon the face of the within Bond in every particular, without alteration or enlargement or any change whatever. -29- SECTION 11. TREATMENT OF BONDS AS DEBT. The Bonds shall be payable from the Pledged Moneys and shall not constitute an indebtedness of the Village within the meaning of any constitutional or statutory limitation, unless the 2003A Full Faith and Credit Taxes shall have been extended pursuant to the general obligation, full faith and credit promise supporting the Bonds, as set forth in Section 17 hereof, in which case the amount of the Bonds then Outstanding shall be included in the computation of indebtedness of the Village for purposes of all statutory provisions or limitations until such time as an audit of the Village shall show that the Bonds have been paid from the Limited Incremental Property Taxes for a complete Fiscal Year, in accordance with the Applicable Law. SECTION 12. SPECIAL TAX ALLOCATION FUND - ACCOUNTS. (a) The Special Tax Allocation is hereby continued as a special fund of the Village, to be held by the Village except as hereinafter expressly provided, which fund shall be held separate and apart from all other funds and accounts of the Village. All of the Incremental Property Taxes and any other revenues, from any source whatsoever (except with respect to investment earnings as hereinafter provided) designated to pay principal of, interest on and premium, if any, on the Bonds and any Additional Bonds shall be set aside as collected and be remitted by the Village Treasurer for deposit in the Special Tax Allocation Fund, which is a trust fund heretofore established and hereby continued for the purpose of carrying out the covenants, terms and conditions imposed upon the Village by this Ordinance. Pursuant to the Lemont Senior Housing Bond Ordinance the Village has heretofore created and established the "Lemont Senior Housing Sub - Fund" of the Special Tax Allocation Fund. The Village Treasurer shall determine the amount of each distribution of Incremental Property Taxes which constitutes the Lemont Senior Housing Incremental Property Taxes and shall deposit the same upon receipt into the Lemont Senior Housing Sub -Fund as provided in the Lemont Senior Housing Bond Ordinance. The Lemont Senior Housing TIF Obligations are secured by all of the Lemont Senior Housing Incremental Property Taxes on deposit in and to the credit of said Sub -Fund. There is hereby expressly created and established a separate and segregated trust fund to be known as the "Public Redevelopment Projects Sub - Fund" of the Special Tax Allocation Fund. After allocating the Lemont Senior Housing Incremental Property Taxes for deposit into the Lemont Senior Housing Sub -Fund, the Treasurer shall then deposit all remaining Incremental Property Taxes to the Public Redevelopment Projects Sub -Fund. The Bonds are secured, ratably and equally with the Prior Alternate Bonds, by a pledge of all of the Limited Incremental Property Taxes on deposit in the Public Redevelopment Projects Sub -Fund of the Special Tax Allocation Fund, and such pledge is irrevocable until the obligations of the Village are discharged under this Ordinance. Whenever the Village Treasurer receives any of the Limited Incremental Property Taxes, he or she shall promptly credit to and deposit the Limited Incremental Property Taxes to the accounts hereby created and established within the Public Redevelopment Projects Sub -Fund in the priority and as follows: (i) The Senior Lien Principal and Interest Account. The Treasurer shall first credit to and immediately transfer into the Senior Lien Principal and Interest Account all of the Limited Incremental Property Taxes, and, except as hereinafter provided, moneys to the credit of the Senior Lien Principal and Interest Account shall be used solely and only for the purpose of paying principal of and interest and applicable premium on the Outstanding Senior Lien Bonds as the same become due at Stated Maturity or upon mandatory redemption. Not later than ten days prior to each Senior Lien Bond principal payment date the Treasurer shall conduct an accounting (an "Accounting ") to determine the balance of the Limited Incremental Property Taxes on deposit in and to the credit of the Senior Lien Principal and Interest Account. If, upon any Accounting, there are funds on deposit in and to the credit of the Senior Lien Principal and Interest Account in excess of the Principal Requirement and the Interest Requirement, such funds shall be transferred by the Treasurer to the Junior Lien Principal and Interest Account as hereinbelow provided. -31- (ii) The Junior Lien Principal and Interest Account. The Treasurer shall next credit to and immediately transfer into the Junior Lien Principal and Interest Account the balance of the Limited Incremental Property Taxes, and, except as hereinafter provided, moneys to the credit of the Junior Lien Principal and Interest Account shall be used solely and only for the purpose of paying principal of and interest and applicable premium on any Junior Lien Bonds as the same become due at Stated Maturity or upon mandatory redemption. If, upon any Accounting, there are funds on deposit in and to the credit of the Junior Lien Principal and Interest Account in excess of the Junior Lien Principal Requirement and the Junior Lien Interest Requirement, if any, such funds shall be transferred by the Treasurer to the General Account as hereinbelow provided. (iii) The General Account. All moneys remaining in the Public Redevelopment Projects Sub -Fund of the Special Tax Allocation Fund, after crediting the required amounts to the Senior Lien Principal and Interest Account and the Junior Lien Principal and Interest Account as hereinabove provided for, shall be transferred by the Village Treasurer for deposit in and credit to the General Account. At any time and from time to time the Village Treasurer shall transfer to the Senior Lien Principal and Interest Account or the Junior Lien Principal and Interest Account any moneys on deposit in the General Account, which moneys shall be credited to the Special Tax Allocation Fund in order to remedy any deficiencies in any prior accounts. Except as hereinbefore provided in this subsection (iii), moneys on deposit in the General Account shall be used for one or more of the following purposes, without any priority among them: (i) for the purpose of paying any Project Costs; or (ii) for the purpose of redeeming Outstanding Bonds or Junior Lien Bonds; or (iii) for the purpose of purchasing Outstanding Bonds or Junior Lien Bonds at a price not in excess of par and accrued interest and applicable redemption premium to the date of purchase; or (iv) for the purpose of refunding, advance refunding or prepaying any Bond, Prior Alternate Bond or Junior Lien Bond; or (v) for the purpose of creating such additional reserves as may be deemed necessary by the Board, it being the express intent of the Board to reserve unto the Village the right to establish such reserve or reserves in order to assure that the 2003A Full Faith and Credit Taxes may be abated in each Tax Year while any Bonds remain outstanding; or (vi) for the purpose of reimbursing the Village for any transfer of general corporate funds of the Village for purposes relating to the Plan, the Project Area, or the 2003 Redevelopment Project including but not limited to funds disbursed -32- for the payment of redevelopment project costs incurred by the Village or advanced to abate the 2003A Full Faith and Credit Taxes and whether or not such reimbursement occurs in the relevant Tax Year for which such advance was made; or (vii) for the purpose of distributing Incremental Property Taxes to the taxing districts or municipal corporations having the power to tax real property in the Project Area or to the Village pursuant to any redevelopment agreement; or (viii) for the purpose of paying principal of, or premium, if any, or interest on any obligation of the Village issued to pay redevelopment project costs for the Project Area, whether or not secured by a pledge of the monies to the credit of the Special Tax Allocation Fund; or (ix) for any other purpose related to the Plan, the Project, the Project Area or the 2003 Redevelopment Project pursuant to the TIF Act. SECTION 13. COVENANTS PERTAINING TO THE PROJECT AREA. The Village covenants and agrees with the holders of the Bonds that, so long as any Bonds remain Outstanding and unpaid: (a) The Village will keep, or cause to be kept, proper books of record and accounts, separate from all other records and accounts of the Village, in which complete and correct entries shall be made of all transactions relating to the 2003 Redevelopment Project and to the Incremental Property Taxes. Such books of record and accounts shall at all times during business hours be subject to the inspection of the holders of not less than ten per cent (10 %) of the aggregate principal amount of the Bonds then Outstanding, or their representatives authorized in writing. The Village will timely prepare or cause the preparation of complete financial statements with respect to the preceding Fiscal Year showing the Incremental Property Taxes received, all disbursements from the funds and accounts created by this Ordinance and the financial condition of the 2003 Redevelopment Project, including the balances in all funds and accounts relating to the Bonds and the 2003 Redevelopment Project as of the end of such Fiscal Year, all when and as required by the TIF Act, which statements shall be accompanied by a certificate or opinion in writing of an Independent certified public accountant. The Village will furnish a copy of such statements to any registered owner of ten percent (10 %) or more in aggregate principal amount of Outstanding Bonds, upon written request of such owner. (b) The Village will continue to implement the 2003 Redevelopment Project with all practicable dispatch in accord with its stated objectives and purposes in conformity with the Plan and the TIF Act. SECTION 14. INVESTMENTS. The moneys on deposit in the Public Redevelopment Projects Sub -Fund of the Special Tax Allocation Fund and the various accounts therein may be invested from time to time in Qualified Investments. Any such investments may be sold from time to time as moneys may be needed for the purposes for which the Public Redevelopment Projects Sub -Fund of the Special Tax Allocation Fund and such accounts have been created. All investment earnings shall be attributed to the fund or account for which the investment was made. SECTION 15. LIMITED INCREMENTAL PROPERTY TAXES PLEDGED. The Village hereby pledges the Limited Incremental Property Taxes to the payment of the Bonds as hereinabove provided, and the Board covenants and agrees to provide for, collect and apply Limited Incremental Property Taxes to the payment of the Bonds as hereinabove provided and the provision of not less than an additional .25 times debt service. The determination of the sufficiency of the Limited Incremental Property Taxes pursuant to this Section shall be supported by reference to the Report, and the reference to and acceptance of such Report by the Board shall be conclusive evidence that the conditions of Section 15 of the Reform Act have been met. SECTION 16. CONTINUING DISCLOSURE UNDERTAKING. The Designated Officers are hereby authorized, empowered and directed to execute and deliver the Continuing Disclosure Undertaking (the "Continuing Disclosure Undertaking") in customary form as provided by Bond Counsel and approved by the Village Attorney, with such changes therein as the individual executing the Continuing Disclosure Undertaking on behalf of the Village shall approve, his or her execution thereof to constitute conclusive evidence of his or her approval of such changes. When the Continuing Disclosure Undertaking is executed and delivered on behalf of the Village as herein provided, the Continuing Disclosure Undertaking will be binding on the Village and the officers, employees and agents of the Village, and the officers, employees and agents 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 with the provisions of the Continuing Disclosure Undertaking as executed. Notwithstanding any other provision of this Ordinance, the sole remedies for failure to comply with the Continuing Disclosure Undertaking shall be the ability of the beneficial owner of any Bond to seek mandamus or specific performance by court order, to cause the Village to comply with its obligations under the Continuing Disclosure Undertaking. SECTION 17. 2003A FULL FAITH AND CREDIT TAXES; TAX LEVY. The Bonds are Alternate Bonds. For the purpose of providing funds to pay the principal of and interest on the Bonds, and as provided in Section 15 of the Reform Act, there is hereby levied upon all of the taxable property within the Village, in the years for which any of the Bonds are Outstanding, a direct annual tax for each of the years while the Bonds or any of them are Outstanding, in amounts sufficient for that purpose, and there be and there hereby is levied upon all of the taxable property in the Village the following direct annual taxes (the "2003A Full Faith and Credit Taxes "): FOR THE YEAR A TAX SUFFICIENT TO PRODUCE THE SUM OF: 2002 $ 78,255.00 for interest up to and including March 1, 2004 [net of cash on hand] 2003 $ 74,925.00 for interest 2004 $ 74,925.00 for interest 2005 $294,925.00 for principal and interest 2006 $294,425.00 for principal and interest 2007 $293,237.50 for principal and interest 2008 $296,337.50 for principal and interest 2009 $298,537.50 for principal and interest 2010 $294,787.50 for principal and interest 2011 $295,735.00 for principal and interest 2012 $296,195.00 for principal and interest 2013 $301,020.00 for principal and interest Following any extension of 2003A Full Faith and Credit Taxes, interest or principal coming due at any time when there are insufficient funds on hand from the 2003A Full Faith and Credit Taxes to pay the same shall be paid promptly when due from current funds on hand in advance of the collection of the 2003A Full Faith and Credit Taxes herein levied; and when the 2003A Full Faith and Credit Taxes shall have been collected, reimbursement shall be made to said funds in the amount so advanced. SECTION 18. FILING WITH COUNTY CLERKS; BOND FUND. After this Ordinance becomes effective, a copy hereof, certified by the Village Clerk, shall be filed with the County Clerks. The County Clerks shall in and for each of the years required ascertain the rate percent required to produce the aggregate 2003A Full Faith and Credit Taxes hereinbefore provided to be levied in each of said years; and the County Clerks shall extend the same for collection on the tax books in connection with other taxes levied in said years in and by the Village for general corporate purposes of the Village; and the County Clerks, or other appropriate officer or designee, shall remit the 2003A Full Faith and Credit Taxes for deposit to the credit of a special fund, hereby created, to be designated the "2003A Alternate Bond Fund" (the "Bond Fund"), and in said years the 2003A Full Faith and Credit Taxes shall be levied and collected by and for -36- and on behalf of the Village in like manner as taxes for general corporate purposes of the Village for said years are levied and collected, and in addition to and in excess of all other taxes. The 2003A Full Faith and Credit Taxes are hereby irrevocably pledged to and shall be used only for the purpose of paying principal of and interest on the Bonds. It is hereby expressly provided that in the event there shall be moneys to the credit of the Public Redevelopment Projects Sub -Fund of the Special Tax Allocation Fund and the Bond Fund, the Bond Fund shall be fully depleted before moneys to the credit of the Public Redevelopment Projects Sub -Fund of the Special Tax Allocation Fund shall be used to pay principal of and interest on the Bonds. SECTION 19. ABATEMENT OF 2003A FULL FAITH AND CREDIT TAXES. Not earlier than March 2 and not later than the last date in any Tax Year that the County Clerks will accept the filing of an ordinance abating a tax to be extended during such Tax Year for the payment of principal of and interest on general obligation bonds, the Village Treasurer shall determine (i) the amount on deposit in and to the credit of the Public Redevelopment Projects Sub -Fund of the Special Tax Allocation Fund and (ii) the amount of any additional monies which have been transferred to the Public Redevelopment Projects Sub -Fund of the Special Tax Allocation Fund by proper proceedings of the Board. The Treasurer shall set forth the aggregate amount of funds which are on deposit in said Sub -Fund and are available for the purpose of abating the 2003A Full Faith and Credit Taxes to be extended during that Tax Year. By proper proceedings the Board shall direct the abatement of the 2003A Full Faith and Credit Taxes for that Tax Year by the amount on deposit in the Senior Lien Principal and Interest Account and held for the payment of the Bonds, as evidenced by such determination. SECTION 20. GENERAL COVENANTS. The Village covenants and agrees with the regis- tered owners of the Bonds, so long as any Bonds remain Outstanding, as follows: A. The Village will punctually pay or cause to be paid from the Public Redevelopment Projects Sub -Fund of the Special Tax Allocation Fund and from the -37- Bond Fund the principal of and interest on the Bonds in strict conformity with the terms of the Bonds and this Ordinance, and it will faithfully observe and perform all of the conditions, covenants and requirements thereof and hereof. B. The Village will pay and discharge, or cause to be paid and discharged, from the Public Redevelopment Projects Sub -Fund of the Special Tax Allocation Fund and the Bond Fund any and all lawful claims which, if unpaid, might become a lien or charge upon the Pledged Moneys, or any part thereof, or upon any funds in the hands of the Bond Registrar, or which might impair the security of the Bonds. Nothing herein contained shall require the Village to make any such payment so long as the Village in good faith shall contest the validity of said claims. C. The Village will keep, or cause to be kept, proper books of record and accounts, separate from all other records and accounts of the Village, in which complete and correct entries shall be made of all transactions relating to the Pledged Moneys, the Special Tax Allocation Fund and the Bond Fund. D. The Village will preserve and protect the security of the Bonds and the rights of the registered owners of the Bonds, and will warrant and defend their rights against all claims and demands of all persons. From and after the sale and delivery of any of the Bonds by the Village, the Bonds shall be incontestable by the Village. E. The Village will adopt, make, execute and deliver any and all such further ordinances, resolutions, instruments and assurances as may be reasonably necessary or proper to carry out the intention of, or to facilitate the performance of, this Ordinance, and for the better assuring and confirming unto the registered owners of the Bonds of the rights and benefits provided in this Ordinance. F. As long as any Bonds are Outstanding, the Village will continue to deposit and apply the Limited Incremental Property Taxes as provided herein and, if applicable, will deposit the 2003A Full Faith and Credit Taxes to the Bond Fund. The Village covenants and agrees with the purchasers of the Bonds and with the registered owners thereof that so long as any Bonds remain Outstanding, the Village will take no action or fail to take any action which in any way would adversely affect the ability of the Village (i) to allocate or collect the Limited Incremental Property Taxes, (ii) to levy the 2003A Full Faith and Credit Taxes or (iii) to collect and to segregate the Pledged Moneys. The Village and its officers will comply with all present and future applicable laws in order to assure that the Limited Incremental Property Taxes can be allocated and collected, that the 2003A Full Faith and Credit Taxes can be levied and extended and that the Incremental Property Taxes and the 2003A Full Faith and Credit Taxes may be collected and deposited into the Public Redevelopment Projects Sub -Fund of the Special Tax Allocation Fund and to the credit of the respective Accounts thereof and the Bond Fund, respectively, as provided herein. G. The Outstanding Bonds shall be and forever remain until paid or defeased the general obligation of the Village, for the payment of which its full faith and credit are -38- pledged, and shall be payable, both from the Limited Incremental Property Taxes, as herein provided, and from the levy of the 2003A Full Faith and Credit Taxes, all as provided in the Reform Act. SECTION 21. ADDITIONAL BONDS. The Village reserves the right to issue Additional Bonds from time to time payable from the Limited Incremental Property Taxes, and any such Additional Bonds shall share ratably and equally in the Limited Incremental Property Taxes with the Bonds; provided, however, that no Additional Bonds shall be issued except upon compliance with the provisions of the Reform Act as the Reform Act is written at this time. SECTION 22. PAYMENT AND DISCHARGE; REFUNDING. The Bonds may be discharged, payment provided for, and the Village's liability terminated as follows: (a) Discharge of Indebtedness. If (i) the Village shall pay or cause to be paid to the registered owners of the Bonds the principal, premium, if any, and interest to become due thereon at the times and in the manner stipulated therein and herein, (ii) all fees and expenses of the Bond Registrar shall have been paid, and (iii) the Village shall keep, perform and observe all and singular the covenants and promises in the Bonds and in this Ordinance expressed as to be kept, performed and observed by it or on its part, then these presents and the rights hereby granted shall cease, determine and be void. If the Village shall pay or cause to be paid to the registered owners of all Outstanding Bonds of a particular series, or of a particular maturity within a series, the principal, premium, if any, and interest to become due thereon at the times and in the manner stipulated therein and herein, such Bonds shall cease to be entitled to any lien, benefit or security under this Ordinance, and all covenants, agreements and obligations of the Village to the holders of such Bonds shall thereupon cease, terminate and become void and discharged and satisfied. (b) Provision for Payment. Bonds for the payment or redemption of which sufficient monies or sufficient Government Securities shall have been deposited with the Paying Agent (whether upon or prior to the maturity or the redemption date of such Bonds) or similar institution having trust powers shall be deemed to be paid within the meaning of this Ordinance and no longer outstanding under this Ordinance; provided, however, that if such Bonds are to be redeemed prior to the maturity thereof, notice of such redemption shall have been duly given as provided in this Ordinance or arrangements satisfactory to the Bond Registrar shall have been made for the giving thereof. Government Securities shall be considered sufficient only if said investments are not redeemable prior to maturity at the option of the issuer and mature and bear interest in such amounts and at such times as will assure sufficient cash to pay currently maturing interest and to pay principal and redemption premiums if any when due on the Bonds. The Village may at any time surrender to the Bond Registrar for cancellation by it any Bonds previously authenticated and delivered hereunder, which the Village may have acquired in any manner whatsoever, and such Bonds, upon such surrender and cancellation, shall be deemed to be paid and retired. (c) Termination of Village's Liability. Upon the discharge of indebtedness under paragraph (a) hereof, or upon the deposit with the Paying Agent or similar institution having trust powers of sufficient money and Government Securities (such sufficiency being determined as provided in paragraph (b) hereof) for the retirement of any particular Bond or Bonds, all liability of the Village in respect of such Bond or Bonds shall cease, determine and be completely discharged and the holders thereof shall thereafter be entitled only to payment out of the money and the proceeds of the Government Securities deposited with the Bond Registrar or similar institution as aforesaid for their payment. SECTION 23. SALE OF THE BONDS. The Bonds hereby authorized shall be sold and executed as in this Ordinance provided as soon after the passage hereof as may be, and thereupon be deposited with the Village Treasurer, and be by said Village Treasurer delivered to the Purchaser upon receipt of the Purchase Price, plus accrued interest to the date fixed for delivery of the Bonds. The purchase contract for the sale of the Bonds presented to the Board at this time is hereby approved and confirmed, it being hereby found and determined that said 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 financially interested, either directly in his own name or indirectly in the name of any other person, association, trust or corporation, in said contract for the purchase of the Bonds. The Designated Officers are hereby authorized to execute said bond purchase contract as acceptance thereof, together with such additional documents, certificates and agreements, including but not limited to a Tax Exemption Certificate and Agreement relating to the Bonds, as shall be deemed necessary by Bond Counsel and the Purchaser to effectuate the issuance and delivery of the Bonds. The Preliminary Official Statement of the Village, dated January 30, 2003, relating to the Bonds and heretofore presented to the Board is hereby ratified and approved. The Deemed Final Official Statement of the Village, to be dated within seven days of the date of adoption hereof, relating to the Bonds (the "Official Statement ") is hereby -40- approved, and the Purchaser is hereby authorized on behalf of the Village to distribute copies of the Official Statement to the ultimate purchasers of the Bonds. SECTION 24. USE OF PROCEEDS. The proceeds derived from the sale of the Bonds shall be used as follows: A. Accrued interest shall be credited to the Senior Lien Principal and Interest Account and applied to pay first interest due on the Bonds. B. The amount necessary of the proceeds of the Bonds shall be deposited into the fund hereby created and to be known as the "2003A Expense Fund" and be held therein until needed or disbursed upon the delivery of the Bonds to be used to pay expenses of issuance of Bonds. Disbursements from the 2003A Expense Fund shall be made from time to time by the Village Treasurer as needed to pay costs of issuance of the Bonds. Any excess amount of proceeds so deposited in said fund shall be transferred to the hereinafter created 2003A Project Fund after three months from the date of issuance of the Bonds and be used to pay costs of the Project. C. The remaining funds shall be set aside in a separate fund hereby created and designated as the "Downtown Redevelopment Project Area Project Fund (2003A)" (the "2003A Project Fund") to be held by the Village Treasurer in a separate and segregated account. Money in said fund shall be withdrawn from time to time as needed for the payment of costs of the Project and paying the fees and expenses incidental thereto not paid out of the Expense Fund and said money shall be disbursed by the Village Treasurer in accordance with normal and customary Village disbursement procedures. Within 60 days after full depletion of the 2003A Project Fund or payment of all costs of the 2003 Redevelopment Project, as herein referred to, and as heretofore approved by the Board, the Village Treasurer shall provide certification in writing (a "Completion Certificate') to the Board of the fact of such depletion, and, upon approval of such Completion Certificate by the Board, funds (if any) remaining in the 2003A Project Fund shall be remitted by the Village Treasurer for deposit to the Public Redevelopment Projects Sub -Fund of the Special Tax Allocation Fund, and the 2003A Project Fund shall be closed. Funds on deposit in the 2003A Project Fund may be invested by the Village Treasurer in Qualified Investments. Investment earnings in the 2003A Project Fund shall be transferred as necessary to the Public Redevelopment Projects Sub -Fund of the Special Tax Allocation Fund by the Village Treasurer with no further official action or direction of the Board for the payment of principal of and interest on the Bonds when due. SECTION 25. NOT PRIVATE ACTIVITY BONDS. None of the bonds is a `private activity bond" as defined in Section 141(a) of the Code. In support of such conclusion, the Village certifies, represents and covenants as follows: (a) No more than five percent of the Bonds and investment earnings thereon be used, directly or indirectly, in whole or in part, in any activity carried on by any person other than a state or local governmental unit. (b) The payment of more than five percent of the principal of or the interest on the Bonds will not be, directly or indirectly (i) secured by any interest in (A) property used or to be used in any activity carried on by any person other than a state or local governmental unit or (B) payments in respect of such property or (ii) on a present value basis, derived from payments in respect of property, or borrowed money, used or to be used in any activity carried on by any person other than a state or local governmental unit. (c) No more than the lesser of $5,000,000 or five percent of the Sale Proceeds and investment earnings thereon will be used, directly or indirectly, to make or finance loans to any persons. (d) No user of the Project other than a state or local governmental unit will use more than five percent of the Project, in the aggregate, on any basis other than the same basis as the general public; and no person other than a state or local governmental unit will be users of more than five percent of the Project, in the aggregate, as a result of (i) ownership, (ii) actual or beneficial use pursuant to a lease or a management, service, incentive payment, research or output contract, or (iii) any other similar arrangement, agreement or understanding, whether written or oral. (e)The Issuer has not and will not enter into any arrangement that conveys to any person, other than a state or local government unit, special legal entitlements to any portion of the Project that is available for use by the general public. No person, other than a state or local governmental unit, is receiving or will receive any special economic benefit from use of any portion of the Project that is not available for use by the general public. (f) No more than the lesser of five percent of the proceeds of the Bonds or $5,000,000 will be used, to provide professional sports facilities. For purposes of this paragraph, the term "professional sports facilities" (i) means real property or related improvements used for professional sports exhibitions, games or training, regardless of whether the admission of the public or press is allowed or paid and (ii) includes any use of a facility that generates a direct or indirect monetary benefit (other than reimbursement for out -of- pocket expenses) for a person who uses such facilities for professional sport exhibitions, games or training. SECTION 26. GENERAL ARBITRAGE COVENANTS . The Village represents and certifies as follows with respect to the Bonds: A. Except for the Senior Lien Principal and Interest Account and the Bond Fund, the Village has not created or established and will not create or establish any sinking fund, reserve fund or any other similar fund to provide for the payment of the Bonds. The Senior Lien Principal and Interest Account and the Bond Fund have been established and will be funded in a manner primarily to achieve a proper matching of tax revenues and debt service, and will be collectively depleted at least annually to an amount not in excess of 1/12 the particular annual debt service on the Bonds. Money deposited therein will be spent within a 13 -month period beginning on the date of deposit, and investment earnings therein will be spent or withdrawn within a one -year period beginning on the date of receipt. B. The investment of proceeds or funds related to the Bonds by the Village officers at a yield which is restricted to a lower yield than otherwise obtainable in order to meet any covenants relating to the Tax - exempt status of the Bonds, as advised by Bond -43- Counsel, or as otherwise determined to be necessary for such purpose, is expressly authorized and directed. The Village also certifies and further covenants with the Purchaser and the registered owners of the Bonds from time to time outstanding that moneys on deposit in any fund or account in connection with the Bonds, whether or not such moneys were derived from the proceeds of the sale of the Bonds or from any other source, will not be used in a manner which will cause the Bonds to be "arbitrage bonds" within the meaning of Code Section 148 and any lawful regulations promulgated thereunder, as the same presently exist or may from time to time hereafter be amended, supplemented or revised. SECTION 27. ARBITRAGE REBATE. The Village represents and certifies as follows with respect to the requirements of Section 148(f) of the Code, relating to the rebate of "excess arbitrage profits" (the "Rebate Requirement ") to the United States: A. Unless an applicable exception to the Rebate Requirement is available to the Village, the Village will meet the Rebate Requirement. B. Relating to applicable exceptions, the Village Treasurer or the President is hereby authorized to make such elections under the Code as either such officer shall deem reasonable and in the best interests of the Village. If such election may result in a "penalty in lieu of rebate" as provided in the Code, and such penalty is incurred (the "Penalty"), then the Village shall pay such Penalty. C. The officers of the Village shall cause to be established, at such time and in such manner as they may deem necessary or appropriate hereunder, a "2003A General Obligation Bonds Rebate [or Penalty, if applicable] Fund" (the "148 Compliance Fund") for the Bonds, and such officers shall further, not less frequently than annually, cause to be transferred to the 148 Compliance Fund the amount determined to be the accrued liability under the Rebate Requirement or Penalty. Said officers shall cause to be paid to the U.S., without further order or direction from the Board, from time to time as required, amounts sufficient to meet the Rebate Requirement or to pay the Penalty. D. Interest earnings in the Bond Fund and the Senior Lien Principal and Interest Account are hereby authorized to be transferred, without further order or direction from the Board, from time to time as required, to the 148 Compliance Fund for the purposes herein provided; and proceeds of the Bonds and other funds of the Village are also hereby authorized to be used to meet the Rebate Requirement or to pay the Penalty, but only if necessary after application of investment earnings as aforesaid and only as appropriated by the Board. SECTION 28. FURTHER TAX COVENANTS. The Village agrees to comply with all provi- sions of the Code which, if not complied with by the Village, would cause the Bonds not to be Tax - exempt. In furtherance of the foregoing provisions, but without limiting their generality, the Village agrees: (a) through its officers, to make such further specific covenants, representations as shall be truthful, and assurances as may be necessary or advisable; (b) to comply with all representations, covenants and assurances contained in certificates or agreements as may be prepared by Bond Counsel; (c) to consult with Bond Counsel and to comply with such advice as may be given; (d) to pay to the United States, if necessary, such sums of money representing required rebates of excess arbitrage profits relating to the Bonds; (e) to file such forms, statements and supporting documents as may be required and in a timely manner; and (f) if deemed necessary or advisable by its officers, to employ and pay fiscal agents, financial advisors, attorneys and other persons to assist the Village in such compliance. SECTION 29. REGISTERED FORM. The Village recognizes that Section 149 of the Code requires the Bonds to be issued and to remain in fully registered form in order to be and remain Tax - exempt. In this connection, the Village agrees that it will not take any action to permit the Bonds to be issued in, or converted into, bearer or coupon form. SECTION 30. QUALIFIED TAX- EXEMPT OBLIGATIONS. The Village recognizes the provisions of Section 265(b)(3) of the Code which provide that a "qualified tax - exempt obligation" as therein defined may be treated by certain financial institutions as if it were acquired on August 7, 1986, for certain purposes. The Village hereby designates each of the Bonds as may be from time to time outstanding for purposes of Section 265(b)(3) of the Code as a "qualified tax - exempt obligation" as provided therein. In support of such designation, the Village certifies, represents and covenants as follows: A. None of the Bonds is a "private activity bond" as defined in Section 141(a) of the Code. B. Including the Bonds, the Village (including any entities subordinate thereto) has not and does not reasonably expect to issue in excess of $10,000,000 in "qualified tax - exempt obligations" during calendar year 2003. C. Including the Bonds, not more than $10,000,000 of obligations issued by the Village (including any entities subordinate thereto) during the calendar year 2003 have been to date or will be designated by the Village for purposes of said Section 265(b)(3). SECTION 31. OPINION OF COUNSEL EXCEPTION. The Village reserves the right to use or invest moneys in connection with the Bonds in any manner, or to use, treat or contract with respect to the 2003 Redevelopment Project, notwithstanding the covenants in Sections 25 to 30 herein, provided it shall first have received an opinion from an attorney or a firm of attorneys of nationally recognized standing relating to Tax - exempt bonds to the effect that use or investment of such moneys, or use of the 2003 Redevelopment Project, as contemplated will not result in any adverse effect on the Tax - exempt status of interest on the Bonds. SECTION 32. DUTIES OF BOND REGISTRAR. (a) The Bond Registrar shall exercise its rights and powers and use the same degree of care and skill in their exercise as a prudent person would exercise or use under the circumstances in the conduct of such person's own affairs. (b) The Bond Registrar need perform only those duties that are specifically set forth in this Ordinance and no others. In the absence of bad faith on its part, the Bond Registrar may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed, upon certificates or opinions furnished to the Bond Registrar and conforming to the requirements of this Ordinance. However, the Bond Registrar shall examine the certificates and opinions to determine whether they conform to the requirements of this Ordinance. (c) The Bond Registrar may not be relieved from liability for its own gross negligent action, its own gross negligent failure to act or its own willful misconduct, except that (1) this paragraph does not limit the effect of paragraph (b) of this Section, (2) the Bond Registrar shall not be liable for any error of judgment made in good faith by a responsible officer of the Bond Registrar, unless it is proved that the Bond Registrar was negligent in ascertaining the pertinent facts, (3) no provision of this Ordinance shall require the Bond Registrar to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder or in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it. (d) Every provision of this Ordinance that in any way relates to the Bond Registrar is subject to all the paragraphs of this Section. (e) The Bond Registrar may refuse to perform any duty or exercise any right or power, or to make any payment on any Bond to any holder of such Bond, unless it receives indemnity satisfactory to it against any loss, liability or expense. (f) The Bond Registrar shall not be liable for interest on any cash held by it except as the Bond Registrar may agree with the Village or as set forth herein. (g) The Bond Registrar will cooperate with the Village and its auditors in complying with provisions of the Act relating to reporting requirements with respect to Incremental Property Taxes and the Special Tax Allocation Funds. SECTION 33. THIS ORDINANCE A CONTRACT. The provisions of this Ordinance shall constitute a contract between the Village and the registered owners of the Bonds, and no changes, additions or alterations of any kind shall be made hereto, except as herein provided. SECTION 34. SUPPLEMENTAL ORDINANCES. Supplemental ordinances may be passed as follows: (a) Supplemental Ordinances Not Requiring Consent of Bondholders. The Village by the Board, may from time to time and at any time, subject to the conditions and restrictions in this Ordinance contained, pass and accept an ordinance or ordinances supplemental hereto, which ordinance or ordinances thereafter shall form a part hereof, for any one or more of the following purposes: (i) To add to the covenants and agreements of the Village in this Ordinance contained, other covenants and agreements thereafter to be observed or to surrender, restrict or limit any right or power herein reserved to or conferred upon the Village; (ii) To make such provisions for the purpose of curing any ambiguity, or of curing, correcting or supplementing any defective provision contained in this Ordinance, or in regard to matters or questions arising under this Ordinance, as the Village may deem necessary or desirable and not inconsistent with this Ordinance; (iii) To designate one or more bond registrars or paying agents; -48- (iv) As to Bonds which are authorized but unissued hereunder: (1) to change the amount of Bonds authorized, or (2) to change in any way the terms upon which such Bonds may be issued or secured. Any supplemental ordinance authorized by the provisions of this Section may be passed by the Village without the consent of the registered owners of any of the Bonds at the time outstanding. (b) Supplemental Ordinances Requiring Consent of Bondholders. With the consent of the registered owners of not less than 66% in aggregate principal amount of the Bonds, respectively, at the time outstanding, the Village, by the Corporate Authorities may pass at any time an ordinance or ordinances supplemental hereto for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Ordinance or of any supplemental ordinance; provided that no such modification or amendment shall extend the maturity or reduce the interest rate on or otherwise alter or impair the obligation of the Village to pay the principal, interest or redemption premium, if any, at the time and place and at the rate and in the currency provided therein of any Bond without the express consent of the registered owner of such Bond or permit the creation of a preference or priority of any Bond or Bonds over any other Bond or Bonds, or reduce the percentage of Bonds required for the affirmative vote or written consent to an amendment or modification, or deprive the registered owners of the Bonds, respectively, (except as aforesaid) of the right to payment of the Bonds, respectively, from the Pledged Moneys without the consent of the registered owners of all the Bonds then outstanding. It shall not be necessary for the consent of the Bondholders under this paragraph to approve the particular form of any proposed supplemental ordinance, but it shall be sufficient if such consent shall approve the substance thereof. (c) Supplemental Ordinance to Modify this Ordinance. Upon the execution of any supplemental ordinance pursuant to the provisions of this Section, this Ordinance shall be modified and amended in accordance therewith and the respective rights, duties and obligations under this Ordinance of the Village and all registered owners of Bonds, respectively, outstanding thereunder shall thereafter be determined, exercised and enforced hereunder subject in all respects to such modification and amendments, and all the terms and conditions of any such supplemental ordinance shall be and be deemed to be part of the terms and conditions of this Ordinance for any and all purposes. SECTION 35 BOND REGISTRAR COVENANTS. If requested by the Bond Registrar, the Designated Officers are authorized to execute a Bond Registrar's agreement between the Village and the Bond Registrar with respect to the obligations and duties of the Bond Registrar hereunder. Such duties shall include the following: (a) to act as Bond Registrar, authenticating agent, Bond Registrar and transfer agent as provided herein; (b) to maintain a list of Bondholders as set forth herein and to furnish such list to the Village upon request, but otherwise to keep such list confidential to the extent permitted by law; (c) to give notice, if any, of redemption of Bonds as provided herein; (d) to cancel and/or destroy Bonds which have been paid at maturity or upon earlier redemption or submitted for exchange or transfer; (e) to furnish the Village at least annually a certificate with respect to Bonds cancelled and/or destroyed; and (f) to furnish the Village at least annually an audit confirmation of Bonds paid, Outstanding Bonds and payments made with respect to interest on the Bonds. The Village Clerk is hereby directed to file a certified copy of this Ordinance with the Bond Registrar. The Village covenants with respect to the Bond Registrar, and the Bond Registrar further covenants and agrees as follows: A. The Village shall at all times retain a bond registrar with respect to the Bonds; it will maintain at the designated office(s) of such bond registrar a place or places where Bonds may be presented for payment, registration, transfer or exchange; and it will require that the Bond Registrar properly maintain the Bond Register and perform the other duties and obligations imposed upon it by this Ordinance in a manner consistent with the standards, customs and practices of the municipal securities industry. B. The Bond Registrar shall signify its acceptance of the duties and obligations imposed upon it by this Ordinance by executing the certificate of authentication on any Bond, and by such execution the Bond Registrar shall be deemed to have certified to the Village that it has all requisite power to accept and has accepted such duties and obligations not only with respect to the Bond so authenticated but with respect to all the Bonds. Any Bond Registrar shall be the agent of the Village and shall not be liable in connection with the performance of its duties except for its own negligence or willful wrongdoing. Any Bond Registrar shall, however, be responsible for any representation in its certificate of authentication on Bonds. C. The Village may remove the Bond Registrar at any time. In case at any time the Bond Registrar shall resign, shall be removed, shall become incapable of acting, or shall be adjudicated a bankrupt or insolvent, or if a receiver, liquidator, or conservator of the Bond Registrar or of the property thereof shall be appointed, or if any public officer shall take charge or control of the Bond Registrar or of the property or affairs thereof, the Village covenants and agrees that it will thereupon appoint a successor Bond Registrar. The Village shall give notice of any such appointment made by it to each registered owner of any Bond within twenty days after such appointment in the same manner, or as nearly the same as may be practicable, as for a redemption of Bonds. Any Bond Registrar appointed under the provisions of this Section shall be a bank, trust company, or national banking association maintaining its principal corporate trust office in Illinois, and having capital and surplus and undivided profits in excess of $10,000,000. SECTION 36. SEVERABILITY. If any section, paragraph, clause or provision of this Ordinance shall be held invalid, the invalidity of such section, paragraph, clause or provision shall not affect any of the other provisions of this Ordinance. SECTION 37. REPEALER. All ordinances, resolutions or orders, or parts thereof, in conflict with the provisions of this Ordinance are to the extent of such conflict hereby repealed. SECTION 38. EFFECTIVE DATE. This ordinance shall be effective immediately upon its passage and approval. SECTION 39. INSURANCE. The Bond Insurer has issued the Commitment, a copy of which is attached hereto as EXHIBIT A and incorporated herein by this reference as if set out in this Section in full. The Village hereby warrants and covenants to comply with the terms and provisions of the Commitment. PASSED this 10th day of February, 2003. APPROVED: February 10, 2003. AYES: Benik, Blatzer, Coules, Rosendahl, Virgiiio NAYS: 0 ABSENT: Markiewicz RECORDED in the Village Records on February 10, 2003. Published in pamphlet form by authority of the Board on February 11, 2003. ATTEST: a;;Zd.f- Village Clerk [SEAL] Trustee moved and Trustee seconded the motion that said ordinance as presented be adopted. The Village President then gave a public recital of the nature and purpose of the ordinance, which included a reading of the title of the ordinance and statements (1) that the ordinance provided for the issuance of general obligation alternate bonds for the purpose of providing funds for the costs of the 2003 Redevelopment Project of the Village in and for the Downtown Redevelopment Project Area, (2) that the bonds are issuable pursuant to authority of the Illinois Municipal Code, the Local Government Debt Reform Act and certain previous proceedings of the President and Board of Trustees, (3) that the ordinance provides for the bonds to be paid by a portion of the tax increment revenues derived from said redevelopment project area, but there is also a back -up levy of taxes to pay the bonds, and (4) that the ordinance provides many details for the bonds, including tax - exempt status covenants, provision for terms and form of the bonds, and appropriations. Thereupon the Village President directed that the roll be called for a vote upon the motion to adopt such ordinance. Upon the roll being called, the following Trustees voted: AYE: Benik, Blatzer, Coules, Rosendahl, Virgilio NAY: 0 ABSENT: Markiewicz Whereupon the Village President declared the motion carried and the ordinance adopted, and did direct the Village Clerk to record the same in full in the records of the Board, which was thereupon done. Other business not pertinent to the adoption of said ordinance was duly transacted at said meeting. Upon motion duly made and seconded, the meeting was adjourned. Village Clerk STATE OF ILLINOIS COUNTY OF COOK ) ) SS ) CERTIFICATION OF ORDINANCE AND MINUTES I, the undersigned, do hereby certify that I am the duly qualified and acting Village Clerk of the Village of Lemont, Cook, DuPage and Will Counties, Illinois (the "Village"), and as such officer I am the keeper of the books, records, files, and journal of proceedings of the Village and of the President and Board of Trustees (the "Board") thereof. I do further certify that the foregoing constitutes a full, true and complete transcript of the minutes of the legally convened meeting of the Board held on the 10th day of February, 2003, insofar as same relates to the adoption of an ordinance numbered 0-7-03 and entitled: AN ORDINANCE authorizing and providing for the issuance of $2,250,000 General Obligation Bonds (Alternate Revenue Source), Series 2003A, of the Village of Lemont, Cook, DuPage and Will Counties, Illinois, for the purpose of defraying the cost of certain redevelopment project costs, prescribing all the details of said bonds and providing for the imposition of taxes to pay the same, and for the collection, segregation and distribution of certain tax increment revenues of said Village. a true, correct and complete copy of which said ordinance as adopted at said meeting appears in the foregoing transcript of the minutes of said meeting. I do further certify that the deliberations of the Board on the adoption of said ordinance were taken openly; that the vote on the adoption of said ordinance was taken openly; that said meeting was held at a specified time and place convenient to the public; that notice of said meeting was duly given to all of the news media requesting such notice of said meeting was duly given to all of the news media requesting such notice; that notice of the meeting was posted at the location where said meeting was held and at the principal office of the Board at least 48 hours in advance of holding said meeting; that said agenda described or made specific reference to said ordinance; that said meeting was called and held in strict accordance with the provisions of the Illinois Municipal Code and the Open Meetings Act of the State of Illinois, as amended; and that the Board has complied with all of the applicable provisions of said laws and its own procedural rules in the adoption of said ordinance. IN WITNESS WHEREOF I have hereunto affixed my official signature and the seal of the Village, this 10th day of February, 2003. Village Clerk [SEAL] STATE OF ILLINOIS COUNTY OF COOK ) ) SS ) CERTIFICATE OF PUBLICATION IN PAMPHLET FORM I, the undersigned, do hereby certify that I am the duly qualified and acting Village Clerk of the Village of Lemont, Cook, DuPage and Will Counties, Illinois (the "Village"), and as such official I am the keeper of the official journal of proceedings, books, records, minutes, and files of the Village and of the President and Board of Trustees (the "Board") thereof. I do further certify that on the day of February, 2003, there was published in pamphlet form, by authority of the Board, a true, correct and complete copy of Ordinance Number of the Village entitled: AN ORDINANCE authorizing and providing for the issuance of $2,250,000 General Obligation Bonds (Alternate Revenue Source), Series 2003A, of the Village of Lemont, Cook, DuPage and Will Counties, Illinois, for the purpose of defraying the cost of certain redevelopment project costs, prescribing all the details of said bonds and providing for the imposition of taxes to pay the same, and for the collection, segregation and distribution of certain tax increment revenues of said Village. and that said ordinance as so published was on said date readily available for public inspection and distribution, in sufficient number to meet the needs of the general public, at my office as Village Clerk in Lemont, Illinois. IN WITNESS WHEREOF I have affixed hereto my official signature and the seal of the Village this day of February, 2003. [SEAL] Village Clerk STATE OF ILLINOIS ) SS COUNTY OF DUPAGE FILING CERTIFICATE I, the undersigned, do hereby certify that I am the duly qualified and acting County Clerk of The County of DuPage, Illinois (the "County"), and as such officer I do hereby certify that on the 20th day of February, 2003, there was filed in my office a duly certified copy of an ordinance entitled: AN ORDINANCE authorizing and providing for the issuance of $2,250,000 General Obligation Bonds (Alternate Revenue Source), Series 2003A, of the Village of Lemont, Cook, DuPage and Will Counties, Illinois, for the purpose of defraying the cost of certain redevelopment project costs, prescribing all the details of said bonds and providing for the imposition of taxes to pay the same, and for the collection, segregation and distribution of certain tax increment revenues of said Village. passed by the President and Board of Trustees of the Village of Lemont, Cook, DuPage and Will Counties, Illinois, on the 10th day of February, 2003, and approved by the President of said Village; and that the same has been deposited in the official files and records of my office. IN WITNESS WHEREOF I have hereunto affixed my official signature and the seal of the County this 20th day of February, 2003. [SEAL] County Cl f of The County o DuPage, I mois STATE OF ILLINOIS ) SS COUNTY OF WILL FILING CERTIFICATE I, the undersigned, do hereby certify that I am the duly qualified and acting County Clerk of The County of Will, Illinois (the "County"), and as such officer I do hereby certify that on the day of July, 2000, there was filed in my office a duly certified copy of an ordinance entitled: AN ORDINANCE authorizing and providing for the issuance of $2,250,000 General Obligation. Bonds (Alternate Revenue Source), Series 2003A, of the Village of Lemont, Cook, DuPage and Will Counties, Illinois, for the purpose of defraying the cost of certain redevelopment project costs, prescribing all the details of said bonds and providing for the imposition of taxes to pay the same, and for the collection, segregation and distribution of certain tax increment revenues of said Village. passed by the President and Board of Trustees of the Village of Lemont, Cook, DuPage and Will Counties, Illinois, on the loth day of February, 2003, and approved by the President of said Village; and that the same has been deposited in the official files and records of my office. IN WITNESS WHEREOF I have hereunto affixed my official signature and the seal of the County this r y of February, 2003. UA County €lerk of The Co 'ty of Will, Illinois [SEAL]