O-806-93 11/08/93VILLAGE OF LEMONT
ORDINANCE NO, 806
ITEM VI.C.1
F; led 'i in Crook '"/zz_
L \L y, ct c-.„„ C�
r e ►-Ci9 i s LIPCt i t
A.J.
AN ORDINANCE PROVIDING FOR THE ISSUE OF $135,000
GENERAL OBLIGATION BONDS, SERIES 1993 OF THE VILLAGE OF LEMONT
COOK, DU PAGE AND WILL COUNTIES, ILLINOIS
AND FOR THE LEVY OF A DIRECT ANNUAL TAX SUFFICIENT
TO PAY THE PRINCIPAL AND INTEREST ON SAID BONDS
ADOPTED BY THE
PRESIDENT AND BOARD OF TRUSTEES
OF THE VILLAGE OF LEMONT
This 8th day of November
Published in pamphlet form by
authority of the President and
Board of Trustees of the Village of
Lemont, Counties of Cook, Will, and
DuPage, Illinois, this 8th
day of November 1993
, 1993.
ORDINANCE NO. 806
AN ORDINANCE providing for the issue of $135,000 General
Obligation Bonds, Series 1993 of the Village of Lemont, Cook,
DuPage and Will Counties, Illinois, and for the levy of a direct
annual tax sufficient to pay the principal and interest on said bonds.
WHEREAS, the Village of Lemont, Cook, DuPage and Will Counties, Illinois (the
"Village ") is a municipal corporation duly incorporated under the laws of the State of
Illinois, and is now operating under the provisions of the Municipal Code of the State of
Illinois, and all laws amendatory thereof and supplementary thereto; and
WHEREAS, the Village has entered into and now has outstanding and unpaid its
Installment Contract in connection with the renovation of the Lemont Village Hall, dated
January 16, 1991 (the "Installment Contract"); and
WHEREAS, it is necessary and desirable to pay the principal and interest due on
December 1, 1993 and June 1, 1994, with respect to the Installment Contract (the
"Payments"); and
WHEREAS, the President and Board of Trustees (the "Board ") of the Village does
hereby find that there are not sufficient funds on hand for the purpose of paying the
Payments, and that the cost thereof, including legal, financial and other expenses, will be not
less than $135,000, and that is necessary and in the best interests of the Village to borrow the
sum of $135,000 and issue bonds of the Village to evidence the borrowing; and
WHEREAS, the Board does hereby find and determine that upon the borrowing of said
sum and the issuance of bonds of the Village in the amount of $135,000, all in accordance
with the provisions of the Section 8 -5 -16 of the Illinois Municipal Code, as amended, the
aggregate outstanding bonds of the Village issued pursuant to said Section, including the
bonds herein authorized, will not exceed one -half of one per cent of the assessed value of all
of the taxable property located within the Village, and accordingly, the Board is authorized
to issue such bonds without submitting the question of such issuance to the electors of the
Village:
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. Incorporation of Preambles. The Board hereby finds that all of the
recitals contained in the preambles to this ordinance are full, true and correct and does
incorporate them into this ordinance by this reference.
Section 2. Authorization. In order to raise the sum of $135,000 needed at this
time for the purpose of paying the costs of the Purposes, there shall be borrowed by, for and
on behalf of the Village the sum of $135,000 and to evidence said loan, bonds of the Village
shall be issued. Said bonds shall each be designated "General Obligation Bond, Series 1993"
and shall be dated December 1, 1993 (the "Bonds"), and shall also bear the date of
authentication, shall be in fully registered form, of the denomination of $5,000 each and
authorized integral multiples thereof and shall become due and payable (without option of
prior redemption) on December 1, 1994, and shall bear interest at the rate of 3.00% per
annum.
The Bonds shall bear interest from their date until the principal amount of the Bonds
is paid, such interest (computed upon the basis of a 360 -day year of twelve 30 -day months)
being payable on December 1, 1994. Interest on each Bond shall be paid by check or draft
of the Village Treasurer (the "Bond Registrar"), as paying agent, payable upon presentation
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 15th day of the month next preceding the interest
payment date. The principal of the Bonds shall be payable in lawful money of the United
States of America at the office of the Bond Registrar located in the Village.
The seal of the Village shall be affixed to or printed on each of the Bonds and the
Bonds shall be signed by the manual or duly authorized facsimile signature of the President
and be attested by the manual or duly authorized facsimile signature of the Village Clerk,
and 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 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.
Section 3. Registration of Bonds; Persons Treated as Owners. The Village shall
cause books for the registration and for the transfer of the Bonds as provided in this
ordinance to be kept at the office of 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 shall keep custody of, multiple Bond blanks executed by the Village
for use in the transfer and exchange of Bonds.
Upon surrender for transfer of any Bond at the office of the Bond Registrar, duly
endorsed by, or accompanied by a written instrument or instruments of transfer in form
satisfactory to the Bond Registrar and duly executed by, the registered owner or his attorney
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 a new fully
registered Bond or Bonds of the same maturity of authorized denominations, for a like
aggregate principal amount. Any fully registered Bond or Bonds may be exchanged at said
office of the Bond Registrar for a like aggregate principal amount of Bond or Bonds of the
same maturity of other authorized denominations. 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 outstanding Bonds of each maturity authenticated by the
Bond Registrar shall not exceed the authorized principal amount of Bonds for such maturity
less previous retirements.
The Bond Registrar shall not be required to transfer or exchange any Bond during the
period beginning on the close of business on the 15th day next preceding any interest
payment date on such Bond and ending at the close of business on the day preceding such
interest payment date.
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 his
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 4. Form of Bond. The Bonds shall be in substantially the following form;
provided, however, that if the text of the Bond is to be printed in its entirety on the front
side of the Bond, then paragraph [2] and the legend, "See Reverse Side for Additional
Provisions ", shall be omitted and paragraphs [6] through [9] shall be inserted immediately
after paragraph [1]:
(Form of Bond - Front Side)
REGISTERED REGISTERED
NO. $
UNITED STATES OF AMERICA
STATE OF ILLINOIS
COUNTIES OF COOK, DUPAGE AND WILL
VILLAGE OF LEMONT
GENERAL OBLIGATION BOND, SERIES 1993
See Reserve Side
for Additional
Provisions
Interest Maturity Dated
Rate: 3.00% Date: December 1, 1994 Date: December 1, 1993
Registered Owner:
Principal Amount:
[1] KNOW ALL PERSONS BY THESE PRESENTS, that'the Village of Lemont, Cook,
DuPage and Will Counties, 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 date of this Bond at the Interest Rate per
annum set forth above on December 1, 1994, until said Principal Amount is paid. Principal
of this Bond is payable in lawful money of the United States of America at the office of the
Village Treasurer, as paying agent (the "Bond Registrar "), located in the Village. Payment
of interest shall be made to the Registered Owner hereof as shown on the registration books
of the Village maintained by the Bond Registrar at the close of business on the 15th day of
the month next preceding each interest payment 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. 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.
[2] 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.
[3] It is hereby certified and recited that all conditions, acts and things required by
law to exist or to be done precedent to and in the issuance of this Bond did exist, have
happened, been done and performed in regular and due form and time as required by 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; and that provision has been made for the
collection of a direct annual tax sufficient to pay the interest hereon as it falls due and also to
pay and discharge the principal hereof at maturity. THE VILLAGE HAS DESIGNATED THIS
BOND AS A "QUALIFIED TAX - EXEMPT OBLIGATION" PURSUANT TO SECTION 265(b)(3) OF
THE INTERNAL REVENUE CODE OF 1986.
[4] This Bond shall not be valid or become obligatory for any purpose until the
certificate of authentication hereon shall have been manually signed by the Bond Registrar.
[5] IN WITNESS WHEREOF, said Village of Lemont, Cook, DuPage and Will
Counties, Illinois, by its President and Board of Trustees, has caused its corporate seal to be
hereunto affixed or printed hereon, and this Bond to be signed by the manual or duly
authorized facsimile signature of the President and be attested by the manual or duly
authorized facsimile signature of the Village Clerk, all of the Dated Date identified above.
A'1"1'EST:
[SEAL]
Village Clerk
Date of Authentication: , 19_
CERTIFICATE
OF
AUTHENTICATION
This Bond is one of the Bonds described
in the within mentioned ordinance and is one
of the General Obligation Bonds of the
Village of Lemont, Cook, DuPage and Will
Counties, Illinois.
en■
smik
P esi.-n�
VILLAGE TREASURER, VILLAGE OF LEMONT,
COOK, DUPAGE AND WILL COUNTIES, ILLINOIS,
as Bond Registrar
(Manual Signature)
Bond Registrar and Paying Agent:
Village Treasurer, Village of Lemont,
Cook, DuPage and Will Counties,
Illinois
[6]
[Form of Bond - Reverse Side]
Village of Lemont
Cook, DuPage and Will Counties, Illinois
General Obligation Bond, Series 1993
This Bond is one of a series of bonds issued by the Village to pay certain
principal and interest payments due on the Installment Contract entered into by the Village
in connection with the renovation of the Lemont Village Hall, dated January 1, 1991,
pursuant to and in full compliance with the provisions of the Illinois Municipal Code, and all
laws amendatory thereof and supplementary thereto, and is authorized by the President and
Board of Trustees of the Village by an ordinance duly and properly adopted for that
purpose, approved by the President, and published, in all respects as provided by law.
[7] This Bond is transferable by the Registered Owner hereof in person or by his
attorney duly authorized in writing at the office of the Bond Registrar in the Village, but
only in the manner, subject to the limitations and upon payment of the charges provided in
the authorizing ordinance, and upon surrender and cancellation of this Bond. Upon such
transfer a new Bond or Bonds of authorized denominations of the same maturity and for the
same aggregate principal amount will be issued to the transferee in exchange therefor.
t8] The Bonds are issued in fully registered form in the denomination of $5,000
each or authorized integral multiples thereof. This Bond may be exchanged at the office of
the Bond Registrar for a like aggregate principal amount of Bonds of the same maturity of
other authorized denominations, upon the terms set forth in the authorizing ordinance.
[9] 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.
(ASSIGNMENT)
FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto
(Name and Address of Assignee)
the within Bond and does hereby irrevocably constitute and appoint
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 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.
Section S. Sale of Bonds. The Bonds hereby authorized shall be executed as in this
ordinance provided as soon after the passage and effective date hereof as may be, and
thereupon be deposited with the Treasurer of the Village, and be by said Treasurer delivered
to Bernardi Securities, Inc., Chicago, Illinois, the purchaser thereof, upon receipt of the
purchase price therefor, the same being $133,460, plus accrued interest to date of delivery.
The contract for the sale of the Bonds heretofore entered into is in all respects ratified,
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 any office of the Village either by
election or appointment, is in any manner interested, either directly or indirectly, in his own
name or in the name of any other person, association, trust or corporation, in said contract
for the purchase of the Bonds.
Section 6. Tax Levy. In order to provide for the collection of a direct annual tax
sufficient to pay the interest on the Bonds as it falls due, and also to pay and discharge the
principal thereof at maturity, there be and there is hereby levied upon all the taxable
property within the Village 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 that there be and there is
hereby levied upon all of the taxable property in the Village, the following direct annual tax,
to -wit:
FOR THE YEAR A TAX SUFFICIENT TO PRODUCE THE SUM OF:
1993 $139,050 for interest and principal up to and
including December 1, 1994
Principal or interest maturing at any time when there are not sufficient funds on hand
from the foregoing tax levy to pay the same shall be paid from the general funds of the
Village, and the fund from which such payment was made shall be reimbursed out of the
taxes hereby levied when the same shall be collected.
The Village covenants and agrees with the purchasers and the holders of the Bonds
that so long as any of the 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 to levy
and collect the foregoing tax levy and the Village and its officers will comply with all
present and future applicable laws in order to assure that the foregoing taxes will be levied,
extended and collected as provided herein and deposited in the fund established to pay the
principal of and interest on the Bonds.
Section 7. Filing of Ordinance. Forthwith upon the passage and effective date of
this ordinance, the Village Clerk is hereby directed to file a certified copy of this ordinance
with the County Clerks of The Counties of Cook, DuPage and Will, Illinois, and it shall be
the duty of said County Clerks in and for the year 1993 to ascertain the rate necessary to
produce the tax herein levied, and extend the same for collection on the tax books against all
of the taxable property within the Village in connection with other taxes levied in said year
for Village purposes, in order to raise the amount aforesaid and in said year such annual tax
shall be computed, extended and collected in the same manner as now or hereafter provided
by law for the computation, extension and collection of taxes for general purposes of the
Village, and when collected, the taxes hereby levied shall be placed to the credit of a special
fund to be designated "Bond and Interest Fund of 1993" (the "Bond Fund "), which taxes are
hereby irrevocably pledged to and shall be used only for the purpose of paying the principal
of and interest on the Bonds.
Section 8. Use of Bond Proceeds. From the amounts received upon the sale of the
Bonds, $1,100 of the principal proceeds shall be set aside and used to pay the costs of
issuance of the Bonds; and $132,360 of the principal proceeds shall be used solely and only
to pay the principal and interest due on December 1, 1993, and June 1, 1994, with respect
to the Installment Contract and disbursements shall be made only for this purpose. The
principal proceeds of the Bonds are accordingly so appropriated.
Accrued interest received upon the sale of the Bonds shall be and is hereby
appropriated for the purpose of paying first interest due on the Bonds and, to that end, is
hereby ordered deposited into the Bond Fund, which fund shall be the fund for the payment
of principal of and interest on the Bonds. Taxes received for the payment of the Bonds shall
be deposited into the Bond Fund and used solely and only for paying the Bonds. Interest
received from deposits in the Bond Fund shall, at the discretion of the Board and to the
extent permitted by law, either be transferred to the corporate fund of the Village or be
retained in the Bond Fund for payment of the principal of or interest on the Bonds on the
interest payment date next after such interest is received.
Section 9. Non - Arbitrage and Tax- Exemption. One purpose of this Section is to
set forth various facts regarding the Bonds and to establish the expectations of the Board and
the Village as to future events regarding the Bonds and the use of Bond proceeds. The
certifications and representations made herein and at the Closing are intended, and may be
relied upon, as a certification given in good faith described in Section 1.148- 2(b)(2) of the
United States Treasury Regulations (the "Regulations ") dealing with the tax - exempt bond
provisions of the Internal Revenue Code of 1986, as amended (the "Code"). The
certifications, covenants and representations contained herein and at the time of the Closing
are made for the benefit of the owners from time to time of the Bonds. The Board and the
Village certify, covenant and represent as follows:
(1) The Bonds are being issued to pay a portion of the principal of and
interest on the Installment Contract on December 1, 1993 and June 1, 1994 (the
"Refunding Purposes "), and all of the proceeds thereof are needed for such purposes.
Principal and interest on the Bonds shall be paid from the Bond Fund. Earnings on
investment of moneys in a fund will be credited to that fund. Except for the proceeds
of the Bonds to be used to pay interest due on June 1, 1994, which proceeds shall not
be invested at a yield not in excess of the yield on the Bonds, no proceeds of the Bonds
will be used more than 90 days after the date of issue of the Bonds for the purpose of
paying any principal or interest on any issue of bonds, notes, certificates or warrants
or on any installment contract or other obligation of the Village or for the purpose of
replacing any funds of the Village used for such purpose.
(2) For purposes of this Ordinance, "Sale Proceeds" means amounts actually
or constructively received from the sale of the Bonds or the Installment Contract,
including (a) amounts used to pay underwriters' discount or compensation and accrued
interest, other than accrued interest for a period not greater than one year before
Closing but only if it is to be paid within one year after Closing, and (b) amounts
derived from the sale of any right that is part of the terms of a bond or is otherwise
associated with a bond (e.g., a redemption right); "Closing" means the first date on
which the Village receives the purchase price for the Bonds and is not earlier than the
date on which interest begins to accrue on the Bonds for federal income tax purposes;
and "Control or Controlled" means possession of either of the following rights or
powers and the rights or powers are discretionary and non - ministerial:
(i) The right or power both to approve and to remove without cause a
controlling portion of the governing body of another entity (the "Controlled
Entity ") entity; or
(ii) The right or power to require the use of funds or assets of the
controlled entity for any purpose of the entity controlling the controlled entity
(the "controlling entity").
A controlling entity indirectly Controls all entities Controlled, directly or
indirectly, by any entity Controlled by such controlling entity.
(3) It is expected that the Bond proceeds including investment earnings
thereon will be spent for Refunding Purposes on or before June 1, 1994.
(4) None of the proceeds of the Bonds will be used to reimburse the Village
for an expenditure paid prior to the date of the Closing.
(5) For purposes of this Ordinance, "Gross Proceeds" means (a) Sale
Proceeds, (b) all amounts in the funds and accounts created with respect to the Bonds
(other than the Rebate Fund), (c) any Replacement Proceeds, and (d) amounts
actually or constructively received from the investment and reinvestment of amounts
described above; and "Replacement Proceeds" means (a) amounts in debt service
funds, redemption funds, reserve funds, replacement funds or any similar funds, to
the extent reasonably expected to be used directly or indirectly to pay principal or
interest on the Bonds, (b) any amounts for which there is provided, directly or
indirectly, a reasonable assurance that the amount will be available to pay principal or
interest on the Bonds or the obligations under any credit enhancement or liquidity
device with respect to the Bonds, even if the Village encounters financial difficulties,
including any liquidity device or negative pledge to the extent described in
Section 1.148- 1(c)(3)(ii) of the Regulations, and (c) any other amounts treated as
replacement proceeds under Section 1.148 -1(c) of the Regulations.
(6) Not more than fifty percent (50 %) of the proceeds of the Bonds
(including investment earnings thereon) are or will be invested in investments (other
than Tax Exempt Obligations) having a yield that is substantially guaranteed for four
(4) years or more. No portion of the Bonds is being issued solely for the purpose of
investing the proceeds thereof at a yield higher than the yield on the Bonds. For
purposes of this Ordinance, "Tax Exempt Obligations" means (i) obligations described
in Section 103(a) of the Code, the interest on which is not includable in the gross
income of any owner thereof for federal income tax purposes and is not an item of tax
preference for purposes of the alternative minimum tax imposed by Section 55 of the
Code; (ii) interests in regulated investment companies to the extent that at least 95
percent of the income to the holder of the interest is interest that is excludable from
gross income under Section 103 of the Code of any owner thereof for federal income
tax purposes and is not an item of tax preference for purposes of the alternative
minimum tax imposed by Section 55 of the Code; and (iii) certificates of indebtedness
issued by the United States Treasury pursuant to the Demand Deposit State and Local
Government Series program described in 31 C.F.R. part 344.
(7)
person.
None of the proceeds of the Bonds will be used to make grants to any
(8) Neither the Village nor any member of the same Controlled Group as the
Village has entered into or expects to enter into any hedge (e.g., interest rate swap,
interest rate cap, futures contract, forward contract or an option) to reduce the risk of
interest rate changes with respect to the Bonds. The Village acknowledges that any
such hedge could affect the calculation of Bond yield under the Regulations. For
purposes of this Ordinance, "Controlled Group" means a group of entities directly or
indirectly Controlled by the same entity or group of entities, including the entity that
Controls the other entities.
(9) The Bond Fund will be used primarily to achieve a proper matching of
revenues and earnings with principal and interest payments on the Bonds in each bond
year. Other than any amounts being held to pay principal of matured Bonds that have
not been presented for payment, it is expected that any moneys deposited in the Bond
Fund will be spent within the twelve -month period beginning on the date of deposit
therein (or in any other fund under this Ordinance, if earlier). Other than any
amounts being held to pay principal of matured Bonds that have not been presented
for payment, it is expected that the Bond Fund will be depleted at least once a year,
except for a reasonable carryover amount not to exceed the greater of (i) in the
aggregate, the earnings on the investment of moneys in such funds and accounts for
the immediately preceding bond year, or (ii) in the aggregate, one - twelfth (1 /12th) of
the principal and interest payments on the Bonds and the other bonds secured by such
funds and accounts for the immediately preceding bond year. Any earnings from the
investment of amounts in the Bond Fund will be spent within a one -year period
beginning on the date of receipt of such investment earnings.
(10) Except as otherwise provided herein, after the issuance of the Bonds,
neither the Village nor any member of the same Controlled Group as the Village has
on hand any property, including cash and securities ("Property"), that is legally
required or otherwise restricted (no matter where held or the source thereof) to be
used, directly or indirectly, for the purposes for which the Bonds are being issued.
(11) Except as otherwise provided herein, neither the Village nor any member
of the same Controlled Group as the Village has established or expects to establish any
fund or account (regardless of where held or the source thereof) that may result in the
creation of Replacement Proceeds.
(12) Except as otherwise provided herein, no Property has been or is expected
to be pledged or otherwise restricted (no matter where held or the source thereof) to
provide reasonable assurance, in the event the Village or any member of the same
Controlled Group as the Village encounters financial difficulty, of its availability to be
used, directly or indirectly, for the payment of amounts due or to become due on the
Bonds or any credit enhancement or liquidity device related to the Bonds. No
compensating balance, liquidity account, negative pledge or similar arrangement exists
with respect to, in any way, the Bonds or any credit enhancement or liquidity device
related to the Bonds.
(13) The term of the Bonds is not longer than is reasonably necessary for the
governmental purposes of the Bonds. The weighted average maturity of the Bonds
does not exceed two years. The weighted average maturity of the Bonds does not
exceed 120 percent of the average reasonably expected economic life of the capital
projects financed, refinanced or reimbursed, directly or indirectly, in whole or in
part, with the Sale Proceeds of the Bonds, plus earnings thereon. At least 80% of the
Sale Proceeds of the Installment Contract, plus investment earnings, was used to
finance capital improvements having a reasonably expected economic life of at least
ten years.
(14) The Village is a governmental unit that has the power (not contingent on
approval by another entity) to impose a tax (or to cause another entity to impose a tax)
of general applicability (not limited to a small number of persons) that, when
collected, may be used for the governmental purposes of the Village. The Village is
not controlled by any other governmental unit or political subdivision. No part of the
Bonds is or will be a "private activity bond" (as defined in Section 141 of the Code).
Ninety -five percent (95 %) or more of the proceeds of the Bonds will be used for local
governmental activities of the Village. The Village hereby covenants and agrees, to
and for the benefit of the holders from time to time of the Bonds, that neither the
Village, any entity that issues tax - exempt bonds on behalf of the Village nor any entity
Controlled by the Village will issue, during the calendar year 1993, any tax - exempt
bonds in an aggregate face amount in excess of $5,000,000, unless the Village for
itself, any entity issuing on behalf of the Village or any entity that it controls, prior to
the issuance of any such bonds or other obligations, shall have obtained an opinion of
Chapman and Cutler, or any other nationally recognized firm of attorneys
experienced in the field of municipal bonds whose opinions are generally accepted by
purchasers of municipal bonds ( "Bond Counsel ") to the effect that such issuance will
not cause the Bonds to become ineligible for the rebate exception contained in Section
148(f)(4)(D) of the Code or, alternatively, that some other exception to the rebate
requirements imposed by Section 148(f) of the Code is available and that the Village
qualifies for such alternative exception or that the Village has undertaken, in a
satisfactory manner, to comply generally with the requirements of Section 148(0 of
the Code, including, without limitation, the entering into such Tax Certificates and
making of such representations as may be determined by Bond Counsel to be
necessary and sufficient for the purpose of such undertaking. As used herein, (i) "tax -
exempt bonds" means obligations of any kind, the interest on which is excludable from
gross income of the holders or owners thereof for federal income tax purposes
pursuant to Section 103 of the Code but not including "private activity bonds" (as
defined in the Code) and (ii) aggregate face amount means, if an issue has more than a
De minimis Amount of Original Issue Discount or Premium, the issue price of the
issue. Therefore, the Village reasonably expects on the date hereof, that the aggregate
face amount of all such tax - exempt bonds of the Village, any entity that issues tax -
exempt bonds on behalf of the Village or any entity controlled by the Village issued
during calendar year 1993 will not exceed $5,000,000. The Village certifies that as of
the date hereof, no tax - exempt bonds or other obligations (other than the Bonds) have
been issued by the Village, any entity that issues tax - exempt bonds on behalf of the
Village or any entity controlled by the Village during the calendar year 1993. The
Village does not reasonably expect that it, any entity that issues tax - exempt bonds on
behalf of the Village or any entity controlled by (including but not limited to the
Village) will issue any such tax - exempt bonds or other obligations within calendar
year 1993. For purposes of this Ordinance, "De Minimis Amount of Original Issue
Discount or Premium" means (i) an amount that does not exceed two percent (2 %) of
the obligation's stated redemption price at maturity, plus (ii) any original issue
premium that is attributable exclusively to reasonable underwriter's compensation.
Therefore, subject to compliance with all the terms and provisions hereof, the Village
is excepted from the required rebate of arbitrage profits on the Bonds under
Section 148(f)(4)(D) of the Code and from the terms and provisions of this
Resolution that need only be complied with if the Village is subject to the arbitrage
rebate requirement.
(15) (a) All Gross Proceeds, to the extent not exempted in (b) below, shall be
invested at market prices and at a yield (after taking into account any yield reduction
payments to the extent permitted by and made pursuant to Section 1.148 -5(c) of the
Regulations) not in excess of the yield on the Bonds. For purposes of this Ordinance,
"Yield" or "yield" means that discount rate which when used in computing the present
value of all payments of principal and interest paid and to be paid on an obligation
(using semiannual compounding on the basis of a 360 -day year) produces an amount
equal to the obligation's purchase price, including accrued interest, and the purchase
price of the Bonds is equal to the first offering price at which more than 10% of the
principal amount of each maturity of the Bonds is sold to the public (excluding bond
houses, brokers or similar persons or organizations acting in the capacity of
underwriters or wholesalers).
(b) The following may be invested without yield restriction:
(i) amounts invested in Tax Exempt Obligations (to the extent
permitted by the Illinois Municipal Code and this Ordinance);
(ii) amounts in any Rebate Fund created with respect to the
Bonds;
(iii) amounts deposited in the Bond Fund (except for capitalized
interest) that have not been on deposit under the Ordinance for more than
13 months, so long as such funds continue to qualify as a bona fide debt
service fund as described in paragraph (9) hereof;
(iv) all amounts for the first 30 days after they become Gross
Proceeds;
(v) all amounts derived from the investment of proceeds for a
period of one year from the date received; and
(vi) an amount not to exceed $6,750.
(16) Subject to paragraph (30) hereof, once moneys are subject to the yield
limits of paragraph (15) hereof, they remain yield restricted until they cease to be
Gross Proceeds.
(17) Except for investments meeting the requirements of paragraph (21)(b),
investments of Gross Proceeds shall not be made in (i) investments constituting
obligations of or guaranteed, directly or indirectly, by the United States (except
obligations of the United States Treasury, obligations guaranteed by the Federal
Housing Administration, The Federal National Mortgage Association, the Federal
Home Loan Mortgage Corporation, the Government National Mortgage Association,
the Student Loan Marketing Association, any guarantee by the Bonneville Power
Authority pursuant to the Northwest Power Act (16 U.S.C. 839d) as in effect on the
date of enactment of the Tax Reform Act of 1984, or investments in obligations issued
pursuant to Section 21B(d)(3) of the Federal Home Loan Bank, as amended (e.g.
Refcorp Strips)); or (ii) federally insured deposits or accounts (as defined in
Section 149(b)(4)(B) of the Code).
(18) None of the Gross Proceeds of the Installment Contract were used, and
none of the Gross Proceeds of the Bonds will 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.
(19) The payment of the principal of or the interest on the Installment
Contract has not been and will not be, and the payment 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)
derived from payments (whether or not by or to the Village), 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.
(20) None of the Gross Proceeds of the Installment Contract were used, and
none of the Gross Proceeds of the Bonds will be used, directly or indirectly, to make
or finance loans to any persons.
(21) No user of the facilities financed by the issuance of the Installment
Contract (the "Refinanced Facilities ") other than a state or local governmental unit
will use the Refinanced Facilities 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 a user of
the Refinanced Facilities as a result of (i) ownership, (ii) actual or beneficial use
pursuant to a lease or a management, service, incentive payment or output contract
(except for a contract meeting the requirements of Revenue Procedure 93 -19), or (iii)
any other similar arrangement, agreement or understanding, whether written or oral.
(22) Except for the investments of the type described in the last sentence of
this paragraph, no portion of the payment of principal or interest on the Bonds or any
credit enhancement or liquidity device relating to the foregoing is or will be
guaranteed, directly or indirectly (in whole or in part), by the United States (or any
agency or instrumentality thereof). No portion of the Gross Proceeds of the Bonds
has been or will be used to make loans the payment of principal or interest with
respect to which is or will be guaranteed (in whole or in part) by the United States (or
any agency or instrumentality thereof), or invested (directly or indirectly) in federally
insured deposits or accounts. The foregoing provisions shall not apply to (a) proceeds
of the Bonds invested for an initial temporary period, as described in Section 148(c)
of the Code, until such proceeds are needed for the purpose for which said obligations
were issued, (b) investments in a bona fide debt service fund, as defined in Section
1.148 -1(b) of the Regulations), (c) investments in a reserve fund that meets the
requirements of Section 148(d) of the Code, (d) investments in obligations issued by
the United States Treasury, or (e) any other investments permitted under regulations
issued by the Internal Revenue Service as further described in paragraph (23) hereof.
(23) The information contained in the Information Return for Tax- Exempt
Governmental Obligations is true and complete. The Village will file Form 8038 -G
(and all other required information reporting forms) in a timely manner.
(24) Since a date that is 15 days prior to the Bond sale date, neither the Village
nor any member of the same Controlled Group as the Village has sold or delivered
(nor will either the Village or any member of the same Controlled Group as the
Village sell or deliver within 15 days after the date hereof) any other obligations that
are reasonably expected to be paid out of substantially the same source of funds as the
Bonds or will be paid directly or indirectly from the proceeds of the Bonds.
(25) No portion of the Refinanced Facilities is expected to be sold or otherwise
disposed of prior to the last maturity of the Bonds.
(26) The Village hereby designates the Bonds as a "qualified tax - exempt
obligation" for the purposes and within the meaning of Section 265(b)(3) of the Code.
In support of such designation, the Village hereby certifies, represents and warrants
that (i) none of the Bonds will be at any time a "private activity bond" (as defined in
Section 141 of the Code), other than a "qualified 501(c)(3) bond" (as defined in
Section 145 of the Code), (ii) as of the date hereof, the Village has not issued any tax -
exempt bonds in calendar year 1993 other than the Bonds and the Village's
Waterworks and Sewerage Refunding Revenue Bonds, Series 1993, to the amount of
$160,000 nor have any tax - exempt bonds been issued on behalf of the Village, and
(iii) not more than $10,000,000 of obligations (including the Bonds) issued by or on
behalf of the Village during calendar year 1993 will be designated for purposes of
Section 265(b)(3) of the Code.
(27) The Village hereby represents and certifies that it is not Controlled by
any entity and that there are no entities controlled by the Village.
(28) The Village further represents and certifies that, on the date hereof, it
does not reasonably anticipate that it will issue any obligations, or that any obligations
will be issued on behalf of it, the interest on which is excludable from gross income of
the holders or owners thereof under Section 103 of the Code ( "Qualified Tax - Exempt
Obligations ") for calendar year 1993 (including the Bonds) which exceed the
aggregate principal amount of $10,000,000. Qualified Tax - Exempt Obligations, for
purposes of this Resolution and for purposes of Section 265(b)(3) of the Code, do not
include private activity bonds other than qualified 501(c)(3) bonds, both as defined in
Section 141 of the Code. The Village hereby covenants that it will not issue or permit
the issuance on behalf of it or by any entity controlled by the Village (which may
hereafter come into existence) of Qualified Tax - Exempt Obligations (including the
Bonds) which exceed the aggregate amount of $10,000,000 during calendar year
1993, unless it first obtains an opinion of Bond Counsel to the effect that such issuance
will not adversely affect the treatment of the Bonds as "qualified tax - exempt
obligations" for the purpose and within the meaning of Section 265(b)(3) of the Code.
(29) The Village acknowledges that any changes in facts or expectations from
those set forth herein may result in different yield restrictions or rebate requirements
from those set forth. The Village shall promptly contact Bond Counsel if such
changes do occur.
(30) The yield restrictions contained in paragraph (15) hereof or any other
restriction or covenant contained herein need not be observed or may be changed if
the Village receives an opinion of Bond Counsel to the effect that such nonobservance
or change will not result in the loss of any exemption for the purpose of federal
income taxation to which interest on the Bonds is otherwise entitled.
(31) The terms, provisions, covenants and conditions of this Section shall bind
and inure to the benefit of the respective successors and assigns of the Board and the
Village.
(32) The Board has reviewed the facts, estimates and circumstances related to
the issuance of the Bonds. Such facts, estimates and circumstances, together with the
expectations of the Board as to future events, are set forth in summary form in this
Section. Such facts and estimates are true and are not incomplete in any material
respect. On the basis of the facts and estimates contained herein, the Board has
adopted the expectations contained herein. On the basis of such facts, estimates,
circumstances and expectations, it is not expected that the proceeds from the sale of
the Bonds or any other moneys or property will be used in a manner that will cause
the Bonds to be arbitrage bonds within the meaning of Section 148 of the Code and
Regulations. Such expectations are reasonable and there are no other facts, estimates
and circumstances that would materially change such expectations.
The Village also agrees and covenants with the purchasers and holders of the Bonds
from time to time outstanding that, to the extent possible under Illinois law, it will comply
with whatever federal tax law is adopted in the future which applies to the Bonds and affects
the tax - exempt status of the Bonds.
The Board hereby authorizes the officials of the Village responsible for issuing the
Bonds, the same being the President, Village Clerk and Village Treasurer, to make such
further covenants and certifications as may be necessary to assure that the use thereof will
not cause the Bonds to be arbitrage bonds and to assure that the interest in the Bonds will be
exempt from federal income taxation. In connection therewith, the Village and the Board
further agree: (a) through their officers, to make such further specific covenants,
representations as shall be truthful, and assurances as may be necessary or advisable; (b) to
consult with counsel approving the Bonds and to comply with such advice as may be given;
(c) to pay to the United States, as necessary, such sums of money representing required
rebates of excess arbitrage profits relating to the Bonds; (d) to file such forms, statements,
and supporting documents as may be required and in a timely manner; and (e) if deemed
necessary or advisable by their officers, to employ and pay fiscal agents, financial advisors,
attorneys, and other persons to assist the Village in such compliance.
Section 11. Registered Form. The Village recognizes that Section 149(a) of the
Code requires the Bonds to be issued and to remain in fully registered form in order that
interest thereon is exempt from federal income taxation under laws in force at the time the
Bonds are delivered. 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 12. List of Bondholders. The Bond Registrar shall maintain a list of the
names and addresses of the holders of all Bonds and upon any transfer shall add the name
and address of the new Bondholder and eliminate the name and address of the transferor
Bondholder.
Section 13. Duties of Bond Registrar. If requested by the Bond Registrar, the
President and Village Clerk are authorized to execute the Bond Registrar's standard form of
agreement between the Village and the Bond Registrar with respect to the obligations and
duties of the Bond Registrar hereunder which shall include the following, as applicable:
(a) to act as bond registrar, authenticating agent, paying agent 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;
(c) to cancel and /or destroy Bonds which have been paid at maturity or
submitted for exchange or transfer;
(d) to furnish the Village at least annually a certificate with respect to Bonds
cancelled and /or destroyed; and
(e) to furnish the Village at least annually an audit confirmation of Bonds
paid, Bonds outstanding and payments made with respect to interest on the Bonds.
Section 14. Severability. If any section, paragraph or provision of this ordinance
shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability
of such section, paragraph or provision shall not affect any of the remaining provisions of
this ordinance.
Section 15. Publication. Immediately upon the passage of this ordinance, a full,
true and complete copy of this ordinance shall be published in pamphlet form by authority
of the Board.
Section 16. Superseder and Effective Date. All ordinances, resolutions and orders,
or parts thereof in conflict herewith, are to the extent of such conflict hereby superseded,
and this ordinance shall be in full force and effect ten (10) days after its publication in
pamphlet form.
Adopted November 8, 1993.
AYES:
NAYS:
ABSENT:
Published in pamphlet form by authority of the President and Board of Trustees of the
Village on November 8, 1993.
ATTEST:
gi/411611
Village Clerk
Recorded in the Village Records on November 8, 1993.
STATE OF ILLINOIS
) SS
COUNTY OF COOK
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 thereof (the
"Corporate Authorities").
I do further certify that on the 8th day of November, 1993, at 9 :00 o'clock p.m.
there was published in pamphlet form, by authority of the Corporate Authorities, a true,
correct and complete copy of Ordinance No. 806 of the Village providing for the issuance
of $135,000 General Purpose Bonds, Series 1993 of the Village and that said ordinance as so
published was on said date readily available for public inspection and distribution, in
sufficient number, at my office as Village Clerk located in the Village.
IN WITNESS WHEREOF, I hereunto affix my official signature and the seal of the
Village, this 8th day of November, 1993.
Village Clerk
[SEAL]
olllp1
11' p "11
1I
,.1111!
II
!1;1111
11111
I' 1�
Ir
11
Ihfi
11111911
1 I
�l
1�1
p,1,1111
I
1
� 1 1
p'1
II
11
I I . III � III
I hl
I 1I
'IIIIIIlll11 11' I
I 1
I I I
I'II ��111
1 111'
I1�1'111'
1,11111111II d1
ply
oI�
III I111LIj ll
111I111 I I I glen 11,1 1.1,
'I � I
IIh 11 J111 11141111 ''
111'111'
11,1,11
'1' 1'1 1
'PIU'1(11 +'l'Ilflll'i�'1111U' Ill' f11 1' 4' 19PIrlu'" II" m' PII '11'rrlli'1�1�I1�'IlIIP111r11� 1q'�h9�ll "911 11' Rp' rl'' p911111�1�'" 11�11p1' 91f! plPIVIP I1111"Ilollpoll''I °11FirigropuNl PI1g91119v"I141191'1j11111l1 .I11111IIpI11, 1PPI�IrIIWllll1111"IlIrgl Irr,glju ;r 11111!11
1 1 • 11 1 • 11 1 1�I �1 1 � I, �I
Id,l I r :.mill i, 0� �r ,,� l,r l her„ Ipp �1., i. IIII iu..i. hl Iy l iwi rl4 i1, � � i' r1 Lldd,' Ifl I �i6 1� y h lr� ,,i1 1 1l 1
'� r61.r 1 1,1! n1i IIIS IIII , , .n 1 II ,I'II 1 I.. I 1 ,I, l h1 '' P�I ,1
�I lu�'1'Idl'VpI1Il11J'111 11 II 1' III 1,1 11 ,I 111'PIhI11'11 I ij11�11,,11 l'111,!;111;;;;;11' I
IIII rIl'M' 11 I' II Iil III II IL I,II llrll 9° 11u1 dull II dVll Iht1" III YII II 11 1 11 bP 111111
I 1 L ' 1 I I II
II 1IIII.1 Ilr rl,Vq 11.1 1 II11� � '�'' Ili I ylgll11�1 III III III Il1l1 hl JI�III11 IIII ° III ,1111111 I'll
11141,
p Ir I lyl n I , 41 I' I, • I 1..
19p hl4 4
'IIiIrM I}�p l�l h �' V�IY I�I N I,h IV111�IcP 1p;l ��,i11. lit N�! I�' III
V 11,1 ` r 1 ' 1
1j I II1 1 I r'' I 1 1 I
11
t1' 1E1
r;1, Iryr ".1II ri Yru , iu
Z
aaI &LLIa
CERTIFICATE
I, CHARLENE SMOLLEN, CLERK OF THE VILLAGE OF LEMONT, AND KEEPER
OF PAPERS, ENTRIES, AND RECORDING OF ORDINANCES, DO HEREBY
CERTIFY THAT THE ATTACHED IS A TRUE AND CORRECT COPY OF
ORDINANCE #806
WHICH WAS PASSED BY THE BOARD OF TRUSTEES OF THE VILLAGE OF
LEMONT AT A REGULAR MEETING HELD ON 8th DAY OF
NOVEMBER, 1993
IN WITNESS WHEREOF, I HAVE HEREUNTO SET MY HAND AND AFFIXED
THE SEAL OF THE VILLAGE OF LEMONT, THIS 15th DAY OF
NOVEMBER, 1993
(SEAL)
MUNICIPAL CLERK