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HomeMy WebLinkAboutORDINANCE - 2332 - 10/26/1993 - BONDS, GENERAL OBLIGATIONroll. EXTRACT OF MINUTES of the regular public meeting of the President and Board of Trustees of the Village of Elk Grove Village, Cook and DuPage Counties, Illinois, held at the Village Hall, located at 1900 West 75th Street, in said Village, at 8:08 p.m., on Thursday, the 26th day of October 1993. The President called the meeting to order and directed the Village Clerk to call the Upon the roll being called, the President and the following Trustees answered present: Ronald L. Chernick, Nancy J. Czarnik, Craig B. Johnson, James P. Petri, Paul A. Rettberg and Michael A. Tosto The following were absent: The President and Board of Trustees then discussed the proposed bond refundings and capital projects for the Village and considered an ordinance providing for the issuance of $10,000,000 General Obligation Bonds, Series 1993, of the Village and providing for the levy and collection of a direct annual tax for the payment of the principal of and interest on said bonds. Thereupon, Trustee RettberQ presented, the Village Director of Finance explained, and there was read into the record in full the following ordinance: 191279.01.02 2007821RVM:1072"3 AN ORDINANCE providing for the issuance of $10,000,000 General Obligation Bonds, Series 1993, of the Village of Elk Grove Village, Cook and DuPage Counties, Illinois, and providing for the levy and collection of a direct annual tax for the payment of the principal of and interest on said bonds. (the Bond Ordinance). Trustee Rettberg moved and Trustee Johnson seconded the motion that the Bond Ordinance as presented be adopted. A Village Board discussion of the matter followed. During the Village Board discussion, the Village Manager gave a public recital of the nature of the matter, which included a reading of the title of the ordinance and statements (1) that the ordinance provided for the issuance of general obligation bonds for the purpose of paying the costs of certain Village projects and refunding certain outstanding general obligation corporate purpose bonds, (2) that the bonds are issuable without referendum pursuant to the home rule powers of the Village, (3) that the ordinance provides for the levy of taxes sufficient 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. The President directed that the roll be called for a vote upon the motion to adopt the ordinance. Upon the roll being called, the following Trustees voted AYE: Craig B. Johnson, Tames P Petri Paul A RettberE Michael A tosto Ronald L Chernick and Nancy J. Czarnik and the following Trustees voted NAY: WHEREUPON, the President declared the motion carried and the ordinance adopted, and henceforth did approve and sign the same in open meeting, and did direct the Village Clerk to record the same in full in the records of the Village Board of the Village of Elk Grove Village, Cook and DuPage Counties, Illinois. Other business was duly transacted at said meeting. Upon motion duly made and carred, the meeting adjourned. Patricia S. Smith Village Clerk -2- ORDINANCE NUMBER 2332 AN ORDINANCE providing for the issuance of $10,000,000 General Obligation Bonds, Series 1993, of the Village of Elk Grove Village, Cook and DuPage Counties, Illinois, and providing for the levy and collection of a direct annual tax for the payment of the principal of and interest on said bonds. Adopted by the President and Board of Trustees on the 26th day of October 1993. TABLE OF CONTENTS SECTION HEADING PAGE PREAMBLES................................................................................................................. 1 SECTION1. DEFINITIONS.................................................................................... 4 SECTION 2. INCORPORATION OF PREAMBLES........................................................ 6 SECTION 3. DETERMINATION TO ISSUE BONDS ..................................................... 7 SECTION 4. BOND DETAILS................................................................................. 7 SECTION 5. BOOK ENTRY PROVISIONS................................................................. 9 SECTION 6. EXECUTION; AUTHENTICATION .......................................................11 SECTION 7. OPTIONAL REDEMPTION.................................................................. 12 SECTION 8. REDEMPTION PROCEDURE................................................................ 12 SECTION 9. REGISTRATION AND EXCHANGE OR TRANSFER OF BONDS; PERSONS TREATED AS OWNERS.................................................................... 16 SECTION 10. FORM OF BOND............................................................................... 18 SECTION11. TAX LEVY...................................................................................... 25 SECTION 12. FILING WITH COUNTY CLERKS......................................................... 27 SECTION 13. SALE OF BONDS.............................................................................. 27 SECTION 14. CREATION OF FUNDS AND APPROPRIATIONS ..................................... 28 SECTION 15. NOT PRIVATE ACTIVITY BONDS ........................................................ 30 -i- SECTION 16. GENERAL ARBITRAGE COVENANTS .................................................. 31 SECTION 17. REGISTERED FORM.......................................................................... 34 SECTION 18. FURTHER TAX COVENANTS............................................................. 34 SECTION 19. QUALIFIED TAX-EXEMPT OBLIGATIONS ............................................ 35 SECTION 20. OPINION OF COUNSEL EXCEPTION ................................................... 36 SECTION 21. REIMBURSEMENT............................................................................ 36 SECTION 22. RIGHTS AND DUTIES OF BOND REGISTRAR AND PAYING AGENT ......... 36 SECTION 23. TAXES PREVIOUSLY LEVIED............................................................ 37 SECTION 24. DEFEASANCE.................................................................................. 37 SECTION 25. PUBLICATION OF ORDINANCE.......................................................... 39 SECTION 26. SUPERSEDER AND EFFECTIVE DATE .................................................. 39 ORDINANCE NUMBER 2332 AN ORDINANCE providing for the issuance of $10,000,000 General Obligation Bonds, Series 1993, of the Village of Elk Grove Village, Cook and DuPage Counties, Illinois, and providing for the levy and collection of a direct annual tax for the payment of the principal of and interest on said bonds. WHEREAS the Village of Elk Grove Village, Cook and DuPage Counties, Illinois (the "Village") has a population in excess of 25,000 as determined by the last official census, and pursuant to the provisions of Section 6 of Article VII of the Constitution of the State of Illinois, the Village is a home rule unit and may exercise any power or perform any function pertaining to its government and affairs including, but not limited to, the power to tax and to incur debt; and WHEREAS pursuant to the provisions of said Section 6, the Village has the power to incur debt payable from ad valorem property tax receipts or from any other lawful source and maturing within 40 years from the time it is incurred without prior referendum approval; and WHEREAS the Village Board has considered the needs of the Village and has heretofore determined and does hereby determine that itis advisable, necessary and in the best interests of the Village to acquire and construct capital improvements to the existing infrastructure of the Village, including roads, water, sewers, police, and fire services, as is described in pertinent portions of the Village capital improvement plan and program, together with all lands or rights in land, appurtenances, mechanical or electrical or other advisable equipment or services used or useful or incidental to such improvements (all of such improvements to be the "199.3 Program Improvements"); and WHEREAS the estimated cost to the Village of the 1993 Program Improvements is the sum of $500,000 plus any estimated available amount of interest earnings on said sum prior to its expenditure; and WHEREAS there are insufficient funds on hand and available to pay the costs of the 1993 Program Improvements, and it is necessary for that purpose that a sum to pay such costs be borrowed at this time, and in evidence of such indebtedness, general obligation bonds of the Village be issued in the principal amount of $500,000, more or less, and that such indebtedness be incurred in accordance with the Act as hereinafter defined, and without submitting the question of incurring such indebtedness to the electors of the Village for their approval; and WHEREAS the Village has heretofore issued the following outstanding and validly subsisting and unpaid general obligations: CORPORATE PURPOSE BONDS SERIES 1985 Original Principal Amount: $9,750,000 Dated: May 1, 1985 Originally Due Serially: 1988-2007 Amount refunded: $1,295,000 Bonds to be Refunded Due December 1 as follows: YEAR AMOUNT ($) RATE (%) 1997 435,000 6.70 2007 860,000 5.75 which bonds are to be called for redemption on their December 1, 1995, Call Date at the redemption price of par plus accrued interest (hereinafter the "1985 Bonds"); -2- GENERAL OBLIGATION BONDS, SERIES 1989 Original Principal Amount: $10,000,000 Dated: July 1, 1989 Originally Due Serially: 1990-2004 Amount refunded: $1,580,000 Bonds to be Refunded Due December 1 as follows: YEAR AMOUNT ($) RATE (%) 1999 165,0001 6.35 2000 800,000 6.40 2001 615,000 6.45 which bonds are to be called for redemption on their June 1, 1997, Call Date at the redemption price of par plus accrued interest (hereinafter the "1989 Bonds"); GENERAL OBLIGATION BONDS, SERIES 1991 Original Principal Amount: $10,000,000 Dated: November 1, 1991 Originally Due Serially: 1994-2012 Amount refunded: $5,910,000 Bonds to be Refunded Due December 1 as follows: YEAR AMOUNT ($) RATE (%) 2004 340,0002 6.10 2005 555,000 6.10 2006 590,000 6.10 2007 630,000 6.10 2008 670,000 6.10 2009 710,000 6.20 2010 755,000 6.20 2011 805,000 6.20 2012 855,000 6.20 1 Being a part of a maturity of $750,000. 2 Being apart of a maturity of $525,000. MIS which bonds are to be called for redemption on their December 1, 1998, Call Date at the redemption price of par plus accrued interest (hereinafter the "1991 Bonds"); and WHEREAS pursuant to the Act (as hereinafter defined), the Village is authorized to issue general obligation bonds to accomplish the refunding (the "Refunding") of the 1985 Bonds, the 1989 Bonds and the 1991 Bonds, as aforesaid (collectively, the "Prior Bonds"); and it is deemed necessary and desirable to provide for the issuance of approximately $9,500,000 principal amount general obligation bonds for such purpose and for the purpose of realizing such net debt service savings; and WHEREAS the Village Board does hereby determine that it is advisable and in the best interests of the Village to borrow $10,000,000 at this time pursuant to the Act for the purpose of paying the costs of the Refunding and the 1993 Program Improvements and, in evidence of such borrowing, issue its full faith and credit bonds in the principal amount of $10,000,000; Now THEREFORE Be It Ordained by the President and Board of Trustees of the Village of Elk Grove Village, Cook and DuPage Counties, Illinois, in the exercise of its home rule powers, as follows: Section 1. Definitions. In addition to such other words and terms used and defined in this Ordinance, the following words and terms used in this Ordinance shall have the following meanings, unless, in either case, the context or use clearly indicates another or different meaning is intended: "Act" means the Illinois Municipal Code, as supplemented and amended, and the home rule powers of the Village under Section 6 of Article VII of the Illinois Constitution of 1970. In the event of conflict between the provisions of said code and home rule powers, the home rule powers shall be deemed to supersede the provisions of said code. 10 "Bond" or "Bonds" means one or more, as applicable, of the $10,000,000 General Obligation Bonds, Series 1993, authorized to be issued by this Ordinance. "Bond Fund" means the Bond Fund established and defined in Section 14 of this Ordinance. "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 American National Bank and Trust Company of Chicago, Chicago, Illinois, a bank having trust powers, or a successor thereto or a successor designated as Bond Registrar hereunder. "County Clerks" means the County Clerks of The Counties of Cook and DuPage, Illinois. "Code" means the Internal Revenue Code of 1986. "Depository" means Midwest Securities Trust Company, an Illinois limited trust company, its successors, or a successor depository qualified to clear securities under applicable state and federal laws. "Escrow Agent" means American National Bank and Trust Company of Chicago, Chicago, Illinois, a bank having trust powers, or a successor thereto or a successor designated as Escrow Agent hereunder. "Escrow Agreement" means the agreement by and between the Village and the Escrow Agent as authorized in Section 14 hereof and set forth as Exhibit A. "Ordinance" means this Ordinance, numbered as set forth on the title page hereof, and passed by the Village Board on the 26th day of October 1993. W11 "Paying Agent" means American National Bank and Trust Company of Chicago, Chicago, Illinois, a bank having trust powers, or a successor thereto or a successor designated as Paying Agent hereunder. "Pledged Taxes" means the taxes levied on the taxable property within the Village to pay principal of and interest on the Bonds as made in Section 12 hereof. "Prior Bonds" means the bonds of the Village described and defined as such in the preambles to this Ordinance. "Refunding" means the refunding of the Prior Bonds from proceeds of the Bonds and such other lawfully available funds of the Village as necessary. "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 will be taken into account in computing an adjustment used in determining the alternative minimum tax for certain corporations, in computing the environmental tax imposed on certain corporations and in computing the "branch profits tax" imposed on certain foreign corporations. "Village" means the Village of Elk Grove Village, Cook and DuPage Counties, Illinois. "Village Board" means the President and Board of Trustees of the Village. "1993 Program Improvements" means the Village capital expenditures as described and defined as such in the preambles to this Ordinance. Section 2. Incorporation of Preambles. The Village Board hereby finds that all of the recitals contained in the preambles to this Ordinance are true, correct and complete and does incorporate them into this Ordinance by this reference. n Section 3. Determination To Issue Bonds. It is necessary and in the best interests of the Village to acquire and construct the 1993 Program Improvements and to provide for the Refunding to achieve a net debt service savings, to be realized through the availability of proceeds of the Bonds for the 1993 Program Improvements, to pay all related costs and expenses incidental thereto, and to borrow money and issue the Bonds for such purposes. It is hereby found and determined that such borrowing of money is necessary for the welfare of the government and affairs of the Village, is for a proper public purpose or purposes and is in the public interest, and is authorized pursuant to the Act; and these findings and determinations shall be deemed conclusive. Section 4. Bond Details. For the purpose of providing for such costs, there shall be issued and sold the Bonds in the principal amount of $10,000,000. The Bonds shall each be designated "General Obligation Bond, Series 1993"; be dated October 15, 1993 (the "Dated Date"); and shall also bear the date of authentication thereof. The Bonds shall be in fully registered book -entry form (hereinafter "Book Entry Form"), shall be in denominations of $5,000 or integral multiples thereof (but no single Bond shall represent principal maturing on more than one date), shall be numbered consecutively in such fashion as shall be determined by the Bond Registrar, and shall become due and payable (subject to right of prior redemption) on December 1 of the years and in the amounts and bearing interest at the rates percent per annum as follows: -7- YEAR AMOUNT ($) RATE (%) 1994 40,000 2.75 1995 100,000 2.80 1996 100,000 3.05 1997 540,000 3.25 1998 95,000 3.50 1999 260,000 3.55 2000 895,000 3.75 2001 695,000 3.80 2002 65,000 4.05 2003 70,000 4.20 2004 410,000 4.30 2005 625,000 4.40 2006 650,000 4.50 2007 1,545,000 4.65 2008 710,000 4.75 2009 740,000 5.00 2010 780,000 5.00 2011 820,000 5.00 2012 860,000 5.00 Each Bond shall bear interest from the later of its Dated Date as herein 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 on June 1 and December 1 of each year, commencing on June 1, 1994. Interest on each Bond shall be paid by check or draft of the Paying Agent, 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 applicable Record Date (the "Record Date"), and mailed to the registered owner of the Bond as shown in the Bond Registrar or at such other address furnished in writing by such Registered Owner, or as otherwise may be agreed with the Depository. The Record Date shall be the 15th day of the month preceding any regular or other interest payment date occurring on the first day of any month and 15 days preceding any interest payment date occasioned by the redemption of Bonds on other than ffm the first day of a month. The principal of or redemption price due on the Bonds shall be payable in lawful money of the United States of America upon presentation thereof at the principal corporate trust office of the Paying Agent in the City of Chicago, Illinois, or at successor Paying Agent and locality. Section 5. Book Entry Provisions. 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 "Kray & 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 Kray & Co., as nominee of the Depository. The Treasurer of the Village and the Paying Agent and Bond Registrar are authorized to execute and deliver on behalf of the Village such letters to or agreements with the Depository as shall be necessary to effectuate such book -entry system (any such letter or agreement being referred to herein as the "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 Kray & Co., as nominee of the Depository, the Treasurer and the Paying Agent and 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 la 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 Paying Agent and Bond Registrar shall have no responsibility or obligation with respect to (a) the accuracy of the records of the Depository, Kray & 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 Kray & 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 "Kray & 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 Paying Agent and 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 Kray & Co., -10- 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, but if the Village does not select such alternate book -entry system, then the Bonds shall 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 Kray & 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. Section 6. Execution; Authentication. The Bonds shall be executed on behalf of the Village by the manual or duly authorized facsimile signature of its President and attested by the manual or duly authorized facsimile signature of its 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 such 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 -11- 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. Those of the Bonds due on or after December 1, 2001, 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 December 1, 2000, and if in part, in any order of maturity as selected by the Village, and if less than an entire maturity, in integral multiples of $5,000, selected by lot by the Bond Registrar as hereinafter provided, at the 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, however, 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. -12- The Bond Registrar shall promptly notify the Village and the Paying Agent 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 registered or certified 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 the full name of the Bonds and 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 corporate trust office of the Paying Agent. -13- Prior to any redemption date, the Village shall deposit with the Paying Agent 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. 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. Such additional notice and information as may be agreed upon with the Depository shall also be given so long as the Bonds are held by the Depository. Upon surrender of such Bonds for redemption in accordance with said notice, such Bonds shall be paid by the Paying Agent 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 -14- 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 registered or certified 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, Midwest Securities Trust Company of Chicago, Illinois, and Depository Trust Company of Philadelphia, Pennsylvania) and to one or more national information -15- 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 their respective duties hereunder, the Bond Registrar and Paying Agent 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. Registration and Exchange or Transfer of Bonds; Persons Treated as Owners. The Village shall cause books (the "Bond Register") for the registration and for the transfer of the Bonds as provided in this Ordinance to be kept at the principal corporate trust office of the Bond Registrar in the City of Chicago, Illinois, 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 principal corporate trust 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 -16- 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 Record Date for an interest payment to the opening of business on such interest payment date or during the period of 15 days preceding the giving of notice of redemption of Bonds 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, that 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 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. -17- 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. M [FORM OF BOND - FRONT SIDE] REGISTERED NO. UNITED STATES OF AMERICA STATE OF ILLINOIS COUNTIES OF COOK AND DUPAGE VILLAGE OF ELK GROVE VILLAGE GENERAL OBLIGATION BOND, SERIES 1993 See Reverse Side for Additional Provisions. Interest Maturity Rate: Date: December 1, Registered Owner: Principal Amount: Dated Date: October 15, 1993 REGISTERED CUSIP: Dollars KNOW ALL PERSONS BY THESE PRESENTS that the Village of Elk Grove Village, Cook and DuPage Counties, Illinois, a municipality, home rule unit, 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 (subject to right of prior redemption as hereinafter stated), 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 on June 1 and December 1 of each year, commencing June 1, 1994, until said Principal Amount is paid or duly provided for. The principal of or redemption price on this Bond is payable in lawful -19- money of the United States of America upon presentation hereof at the principal corporate trust office of American National Bank and Trust Company of Chicago, in the City of Chicago, Illinois, as paying agent (the "Paying Agent'). Payment of interest shall be made to the Registered Owner hereof as shown on the registration books of the Village maintained by American National Bank and Trust Company of Chicago, in the City of Chicago, Illinois, as bond registrar (the "Bond Registrar"), at the close of business on the applicable Record Date (the "Record Date"). The Record Date shall be the 15th day of the month preceding any regular or other interest payment date occurring on the first day of any month and 15 days preceding any interest payment date occasioned by the redemption of Bonds on other than the first day of a month. Interest shall be paid by check or draft of the Paying Agent, 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 otherwise agreed by the Village and the Bond Registrar for so long as this Bond is held by Midwest Securities Trust Company, Chicago, Illinois, the Depository, or nominee, in book - entry only form as provided for same. 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 conditions, acts and things required by the Constitution and Laws of the State of Illinois to exist or to be done precedent to and in the issuance of this Bond, including the authorizing Act, have existed and have been properly done, happened and been performed in regular and due form and time as required by law; that the indebtedness of the Village, represented by the Bonds, and including all other -20- indebtedness of the Village, howsoever evidenced or incurred, does not exceed any constitutional or statutory or other lawful limitation; and that provision has been made for the collection of a direct annual tax, in addition to all other taxes, on all of the taxable property in the Village sufficient to pay the interest hereon as the same 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. 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 Elk Grove Village, Cook and DuPage Counties, Illinois, by its President and Board of Trustees, has caused this Bond to be executed by 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: Patricia S. Smith Village Clerk, Village of Elk Grove Village Cook and DuPage Counties, Illinois [SEAL] Dennis J. Gallitano President, Village of Elk Grove Village Cook and DuPage Counties, Illinois -21- 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, Series 1993, having a Dated Date of October 15, 1993, of the Village of Elk Grove Village, Cook and DuPage Counties, Illinois. AMERICAN NATIONAL BANK AND TRUST COMPANY OF CHICAGO, as Bond Registrar Authorized Officer Bond Registrar and Paying Agent: AMERICAN NATIONAL BANK AND TRUST COMPANY OF CHICAGO Chicago, Illinois [FORM OF BOND - REVERSE SIDE] This bond is one of a series of bonds (the "Bonds") in the aggregate principal amount of $10,000,000 issued by the Village for the purpose of paying the costs of the 1993 Program Improvements and of a certain Refunding of bonds, and of paying expenses incidental thereto, all as described and defined in the ordinance authorizing the Bonds (the "Ordinance"), pursuant to and in all respects in compliance with the applicable provisions of the Illinois Municipal Code, as supplemented and amended, and as further supplemented and, where necessary, superseded, by the powers of the Village as a home rule unit under the provisions of Section 6 of Article VII of the Illinois Constitution of 1970, (such code and powers being the "Act"), and with the Ordinance, which has been duly passed by the President and Board of Trustees of the Village, approved by the President, and published, in all respects as by law required. _22- Subject to the provisions relating to this Bond remaining in Book Entry Form, 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. Upon surrender for transfer or exchange of this Bond at the principal corporate trust office of the Bond Registrar in the City of Chicago, Illinois, 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 Record Date for an interest payment to the opening of business on such interest payment date or during the period of 15 days preceding the giving of notice of redemption of Bonds or to transfer or exchange any Bond all or a portion of which has been called for redemption. Those of the Bonds due on or after December 1, 2001, 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 December 1, 2000, and if in part, in any order of maturity as selected by the Village, and if less than an entire maturity, in integral multiples of $5,000, selected by lot by the Bond Registrar as hereinafter provided, at the redemption price of par plus accrued interest to the date fixed for 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 -23- redemption notice by registered or certified 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. The Village, the Bond Registrar and the Paying Agent 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 -24- the Village, the Bond Registrar and the Paying Agent shall not be affected by any notice to the contrary. ASSIGNMENT FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto Here insert Social Security Number, Employer Identification Number or other Identifying Number (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. Section 11. Tax Levy. For the purpose of providing funds required to pay the interest on the Bonds promptly when and as the same falls due, and to pay and discharge the principal thereof at maturity, 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 sufficient for that purpose; and there is hereby levied on all of the taxable property in the Village, in addition to all other taxes, the following direct annual taxes (the "Pledged Taxes"): -25- FOR THE YEAR A TAX SUFFICIENT TO PRODUCE THE DOLLAR SUM OF: 1993 $ 539,095.24 for interest and principal up to and including December 1, 1994 1994 $ 541,447.50 for interest and principal 1995 $ 538,647.50 for interest and principal 1996 $ 975,597.50 for interest and principal 1997 $ 513,047.50 for interest and principal 1998 $ 674,722.50 for interest and principal 1999 $1,300,492.50 for interest and principal 2000 $1,066,930.00 for interest and principal 2001 $ 410,520.00 for interest and principal 2002 $ 412,887.50 for interest and principal 2003 $ 749,947.50 for interest and principal 2004 $ 947,317.50 for interest and principal 2005 $ 944,817.50 for interest and principal 2006 $1,810,567.50 for interest and principal 2007 $ 903,725.00 for interest and principal 2008 $ 900,000.00 for interest and principal 2009 $ 903,000.00 for interest and principal 2010 $ 904,000.00 for interest and principal 2011 $ 903,000.00 for interest and principal The Pledged Taxes and other moneys on deposit in the Bond Fund shall be applied to pay principal of and interest on the Bonds. Interest or principal coming due at any time when there are insufficient funds on hand from the Pledged Taxes to pay the same shall be paid promptly when due from current funds on hand in advance of the collection of the Pledged Taxes herein levied; and when the Pledged Taxes shall have been collected, reimbursement shall be made to said funds in the amount so advanced. The Village covenants and agrees with the purchasers and registered owners 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. The Village and its officers will comply with all present and future applicable laws in order to assure that the Pledged Taxes may be levied, extended and collected as provided herein and deposited into the Bond Fund. -26- Whenever other funds from any lawful source are made available for the purpose of paying any principal of or interest on the Bonds so as to enable the abatement of the taxes levied herein for the payment of same, the Village Board shall, by proper proceedings, direct the deposit of such funds into the Bond Fund and further shall direct the abatement of the taxes by the amount so deposited. A certified copy or other notification of any such proceedings abating taxes may then be filed with the County Clerks in a timely manner to effect such abatement. Section 12. Filing with County Clerks. Promptly, as soon as this Ordinance becomes effective, a copy hereof, certified by the Village Clerk of the Village, shall be filed with the County Clerks; and said County Clerks shall in and for each of the years 1993 to 2011, inclusive, ascertain the rate percent required to produce the aggregate tax hereinbefore provided to be levied in each of said years; and said 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 in said years such annual tax shall be levied and collected by and for and on behalf of the Village in like manner as taxes for general corporate purposes for said years are levied and collected, and in addition to and in excess of all other taxes. Section 13. Sale of Bonds. The Bonds shall be executed as in this Ordinance provided as soon after the passage hereof as may be, shall be deposited with the Village Treasurer, and shall be by the Treasurer delivered to the purchasers thereof, namely, First Chicago Capital Markets, Inc., Chicago, Illinois, upon payment of the purchase price agreed upon, the same being not less than $9,838,656.75 plus accrued interest to date of delivery. The contract for the sale of the Bonds to the purchasers, as evidenced by the Bond Purchase Agreement, in form as submitted to and presented to the Village Board at this meeting, as -27- executed by the purchasers, is hereby in all respects approved and confirmed, and the officer(s) of the Village designated therein are authorized and directed to execute the agreement on behalf of the Village, it being hereby declared 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 the name of any other person, association, trust or corporation, in such contract for the sale of the Bonds to such purchasers. The Preliminary Official Statement of the Village, dated October 10, 1993, relating to the Bonds, heretofore presented to the Village Board is hereby ratified and approved. The Official Statement of the Village, to be dated within seven days of October 26, 1993, relating to the Bonds (the "Official Statement"), is hereby authorized, and the purchasers are hereby authorized on behalf of the Village to distribute copies of the Official Statement to the ultimate purchasers of the Bonds. Such officer or officers of the Village as are designated therein are hereby authorized to execute and deliver the Official Statement on behalf of the Village. Section 14. Creation of Funds and Appropriations. A. There is hereby created the "General Obligation Bonds, Series 1993, Bond Fund" (the "Bond Fund"), which shall be the fund for the payment of principal of and interest on the Bonds. Accrued interest and premium, if any, received upon delivery of the Bonds shall be deposited into the Bond Fund and be applied to pay fust interest coming due on the Bonds. B. The Pledged Taxes shall either be deposited into the Bond Fund and used solely and only for paying the principal of and interest on the Bonds or be used to reimburse a fund or account from which advances to the Bond Fund may have been made to pay principal of or interest on the Bonds prior to receipt of Pledged Taxes. Interest income or HE investment profit earned in the Bond Fund shall 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 or profit is received or, to the extent lawful and as determined by the Village Board, transferred to such other fund as may be determined. The Village hereby pledges, as equal and ratable security for the Bonds, all present and future proceeds of the Pledged Taxes for the sole benefit of the registered owners of the Bonds, subject to the reserved right of the Village Board to transfer certain interest income or investment profit earned in the Bond Fund to other funds of the Village, as described in the preceding sentence. C. The amount necessary from the proceeds of the Bonds shall be used to pay costs of issuance of the Bonds and shall to the fullest extent possible be totally paid by the Underwriters from Bond proceeds at closing or (if and only if necessary) deposited into a separate fund, hereby created, designated the "Expense Fund'. Such payments by the Underwriters or any disbursements from such fund shall be made from time to time as necessary. Any excess in said fund shall be deposited into the Project Fund hereinafter created after six months from the date of issuance of the Bonds. D. The sum of principal proceeds of the Bonds as is necessary, together with such money in the debt service funds for the Prior Bonds as may be advisable for the purpose, shall be used to provide for the Refunding. Amounts for the Refunding, including the payment of such expenses as may be designated, shall be administered pursuant to the provisions of an Escrow Agreement with the Escrow Agent as is designated, all in accordance with the provisions of an Escrow Agreement, substantially in the form attached hereto as Exhibit A to this Ordinance, made a part hereof by this reference, and hereby approved; the officers appearing signatory to such Escrow Agreement are hereby authorized and directed to execute same, their execution to constitute conclusive proof of action in SOME accordance with this Ordinance, and approval of all completions or revisions necessary or appropriate to effect the Refunding. E. The remaining proceeds of the Bonds shall be set aside in a separate fund, hereby created, and designated as the "1993 Project Fund" (the "Project Fund"), hereby created as the fund to provide for the receipt and disbursement of proceeds of the Bonds for the 1993 Program Improvements. Alternatively, the Treasurer may allocate such remaining proceeds to one or more related project funds of the Village already in existence; provided, however, that this shall not relieve the Treasurer of the duty to account for the proceeds as herein provided. (Any such one or more funds shall also be referred to hereinafter, collectively, as the "Project Fund".) The Village Board reserves the right, as it becomes necessary from time to time, to revise the list of expenditures hereinabove set forth, to change priorities, to revise cost allocations between expenditures and to substitute projects, in order to meet current needs of the Village; subject, however, to the tax covenants set forth herein. Section 15. 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. None of the proceeds of the Bonds is to be used, directly or indirectly, and none of the proceeds of the Prior Bonds was used, directly or indirectly, in any trade or business carried on by any person other than a state or local governmental unit. The Prior Bonds (and all bonds refunded with proceeds of the Prior Bonds) were issued for the purpose, and the Prior Bonds and further refunded bond proceeds (except refunding proceeds, if any) were properly and fully expended for the purpose of paying the costs of capital improvements to the essential governmental purpose -30- systems of the Village, including water, sewer, street, lighting, parks and recreation, police and fire prevention systems (collectively, such systems being the "Infrastructure"). B. No direct or indirect payments are to be made on any Bond with respect to any private business use by any person other than a state or local governmental unit. C. None of the proceeds of the Bonds is to be used, and none of the proceeds of the Prior Bonds was used, directly or indirectly, to make or finance loans to persons other than a state or local governmental unit. D. No user of the 1993 Program Improvements or the Infrastructure other than the Village or another governmental unit will use the same on any basis other than the same basis as the general public; and no person other than the Village or another governmental unit will be a user of the 1993 Program Improvements or the Infrastructure as a result of (i) ownership or (ii) actual or beneficial use pursuant to a lease, a management or incentive payment contract, or (iii) any other arrangement. Section 16. General Arbitrage Covenants. The Village represents and certifies as follows with respect to the Bonds: A. With respect to the 1993 Program Improvements portion of the proceeds of the Bonds (the "Project Portion"), the Village has heretofore incurred, or within six months after delivery of the Bonds expects to incur, substantial binding obligations to be paid for with money received from the sale of the Bonds, said binding obligations comprising binding contracts for the 1993 Program Improvements in not less than the amount of $100,000. -31- B. More than 85% of the proceeds of the Project Portion of the Bonds will be expended on or before October 15, 1996, for the purpose of paying the costs of the 1993 Program Improvements, said date being within three years following the date of issue of the Bonds. C. All of the principal proceeds of the Project Portion of the Bonds, and investment earnings thereon, will be used, needed and expended for the purpose of paying the costs of the 1993 Program Improvements, including expenses incidental thereto. D. Work on the 1993 Program Improvements is expected to proceed with due diligence to completion. E. Except for 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 Bond Fund has been established and will be funded in a manner primarily to achieve a proper matching of revenues and debt service, and will be depleted at least annually to an amount not in excess of 1/12th the particular annual debt service on the Bonds. Money deposited into the Bond Fund will be spent within a 13 -month period beginning on the date of deposit, and investment earnings in the Bond Fund will be spent or withdrawn from the Bond Fund within a one-year period beginning on the date of receipt. F. Amounts of money related to the Bonds required to be invested at a yield not materially higher than the yield on the Bonds, as determined pursuant to such tax certifications or agreements as the Village officers may make in connection with the issuance of the Bonds, shall be so invested; and appropriate Village officers are hereby authorized to make such investments. -32- G. The Village has not been notified of any disqualification or proposed disqualification of it by the Commissioner of the Internal Revenue Service as a bond issuer which may certify bond issues under Treasury Regulations Section 1.103-13 (a)(2)(ii) (1979). The Village further certifies and covenants 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: H. Unless an applicable exception to the Rebate Requirement is available to the Village, the Village will meet the Rebate Requirement. I. Relating to applicable exceptions, the Treasurer or the Village 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. J. 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 "General Obligation Bonds, Series 1993, Rebate [or Penalty, if applicable] Fund" (the "Rebate Fund" ) for the Bonds, and such officers shall further, not less frequently than annually, cause to be transferred to the Rebate 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 Village Board, from time to time as required, amounts sufficient to meet the Rebate Requirement or to pay the Penalty. -33- K. Interest earnings in the Project Fund and the Bond Fund are hereby authorized to be transferred, without further order or direction from the Village Board, from time to time as required, to the Rebate 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 Village Board. The Village also certifies and further covenants with the purchasers and 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 17. 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 18. Further Tax Covenants. The Village agrees to comply with all provisions 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 -34- certificates or agreements as may be prepared by counsel approving the Bonds; (c) to consult with such counsel and to comply with such advice as may be given; (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 its officers, to employ and pay fiscal agents, financial advisors, attorneys and other persons to assist the Village in such compliance. Section 19. 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 further recognizes that a portion of the Bonds may be "deemed designated" under said Section, and, as to all Bonds not so "deemed designated," the Village hereby designates each of such 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 (herein designated), the Village (including any entities subordinate thereto) has not and does not reasonably expect to issue in excess of $10,000,000 in Tax-exempt obligations during calendar year 1993. C. Including the Bonds (herein designated), not more than $10,000,000 of obligations issued by the Village (including any entities subordinate thereto) during the calendar year 1993 have been to date or will be designated by the Village for purposes of said Section 265(b)(3). -35- Section 20. Opinion of Counsel Exception. The Village reserves the right to use or invest moneys in connection with the Bonds in any manner, or to treat with or use the 1993 Program Improvements in any manner, notwithstanding the tax -related covenants set forth in Sections 15 through 19 herein, provided, that it shall first have received an opinion from an attorney or a firm of attorneys of nationally recognized standing as bond counsel to the effect that such use or investment as contemplated is valid and proper under applicable law and this Ordinance and that such use or investment will not adversely affect either the Tax- exempt or "qualified tax-exempt obligation" status of the Bonds. Section 21. Reimbursement. None of the proceeds of the Project Portion will be used to pay, directly or indirectly, in whole or in part, for an expenditure that has been paid by the Village prior to the date hereof except architectural or engineering costs incurred prior to commencement of any of the 1993 Program Improvements or expenditures for which an intent to reimburse has been properly declared under Treasury Regulations Section 1.103-18. This Ordinance is in itself a declaration of official intent under applicable Treasury Regulations as to all costs of the 1993 Program Improvements paid after the date hereof and prior to issuance of the Bonds. Section 22. Rights and Duties of Bond Registrar and Paying Agent. If requested by the Bond Registrar or the Paying Agent, or both, any officer of the Village is authorized to execute standard forms of agreements between the Village and the Bond Registrar or Paying Agent with respect to the obligations and duties of the Bond Registrar or Paying Agent hereunder. In addition to the terms of such agreements and subject to modification thereby, the Bond Registrar and Paying Agent by acceptance of duties hereunder agree: (a) to act as bond registrar, paying agent, authenticating agent, and transfer agent as provided herein; -36- (b) as to the Bond Registrar, 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) as to the Bond Registrar, to cancel and/or destroy Bonds which have been paid at maturity or upon redemption or submitted for exchange or transfer; (d) as to the Bond Registrar, 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. The Village Clerk of the Village is hereby directed to file a certified copy of this Ordinance with the Bond Registrar and the Paying Agent. Section 23. Taxes Previously Levied. The taxes previously levied to pay principal of and interest on the Prior Bonds, to the extent such principal and interest is provided for from the proceeds of the Bonds or from the Escrow Account under the Escrow Agreement as hereinabove described, shall be abated. The filing of a certificate of abatement with the County Clerks shall constitute authority and direction for said County Clerks to make such abatement. Section 24. Defeasance. Any Bond or Bonds which (a) are paid and cancelled, (b) which have matured and for which sufficient sums been deposited with the Paying Agent to pay all principal and interest due thereon, or (c) for which sufficient U.S. funds and direct U.S. Treasury obligations have been deposited with the Paying Agent or similar institution to pay, taking into account investment earnings on such obligations, all principal of and interest on such Bond or Bonds when due at maturity or as called for redemption, pursuant to an irrevocable escrow or trust agreement, shall cease to have any lien on or right to -37- receive or be paid from the Pledged Taxes hereunder and shall no longer have the benefits of any covenant for the registered owners of outstanding Bonds as set forth herein as such relates to lien and security of the outstanding Bonds. All covenants relative to the Tax- exempt status of the Bonds; and payment, registration, transfer, and exchange; are expressly continued for all Bonds whether outstanding Bonds or not. Section 25. Publication of Ordinance. A full, true and complete copy of this Ordinance shall be published within ten days after passage in pamphlet form by authority of the Village Board. -38- Section 26. 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 immediately upon its passage, approval and publication. AYES: Craie B. Johnson, James P. Petri, Paul A. RettberQ, Michael A. Tosto, Ronald L. Chernick, Nancy J. Czarnik NAYS: none ABSENT: none ADOPTED: October 26, 1993 APPROVED: October 26, 1993 Dennis J. Gallitano President, Village of Elk Grove Village Cook and DuPage Counties, Illinois Recorded In Village Records: October 27, 1993. Published in pamphlet form by authority of the President and Board of Trustees at 9:00 a.m. on October 27, 1993. ATTEST: Patricia S. Smith Village Clerk, Village of Elk Grove Village Cook and DuPage Counties, Illinois -39- EXHIBIT A ESCROW AGREEMENT This Escrow Agreement, dated as of October 15, 1993, but actually executed and delivered the date last hereinbelow written, by and between the Village of Elk Grove Village, Cook and DuPage Counties, Illinois, and American National Bank and Trust Company of Chicago, a national banking association, having trust powers, with principal offices located in the City of Chicago, Illinois, not individually but in the capacity as hereinafter described, for and in consideration of mutual covenants set forth: WITNESSETH: ARTICLE I. DEFINITIONS The following words and terms used in this Agreement shall have the following meanings unless the context or use clearly indicates another or different meaning. "Agreement" means this Escrow Agreement dated as of September 15, 1993. "Bond Ordinance" means the ordinance passed by the Village Board on October 26, 1993, numbered 2332 and entitled: AN ORDINANCE providing for the issuance of $10,000,000 General Obligation Bonds, Series 1993, of the Village of Elk Grove Village, Cook and DuPage Counties, Illinois, and providing for the levy and collection of a direct annual tax for the payment of the principal of and interest on said bonds. authorizing the Bonds. "Bond Registrars" means the bond registrars for the Refunded Bonds, namely, the Treasurer of the Village or the banking and trust institutions as follows: For the Series 1985 Bonds: American National Bank of Trust Chicago, Illinois Company of Chicago 188811.01.03 2007821-TVM-1028/83 For the Series 1989 Bonds: Director of Finance For the Series 1991 Bonds: American National Bank of Trust Company of Chicago Elk Grove Village, Illinois Chicago, Illinois "Bonds" means the General Obligation Bonds, Series 1993, of the Village, dated October 15, 1993, a part of the proceeds of which are to be used for the refunding of the Refunded Bonds. "Call Date" means, with respect to each series of the Refunded Bonds, the earliest date of redemption, as follows: REFUNDED BONDS SERIES CALL DATE 1985 December 1, 1995 1989 June 1, 1997 1991 December 1, 1998 "Defeasance Report" means the report of Causey, Demgen & Moore, Inc., certified public accountants, Denver, Colorado, attached hereto as Exhibit A, that the principal of, interest on and profit realized from the Government Obligations, when received, and the beginning deposit on demand held hereunder will be sufficient at all times to pay all interest on and principal of and redemption price due on the Refunded Bonds from the date hereof through their respective Call Dates. "Escrow Account" means the trust fund created under the terms of this Agreement with the Escrow Agent and comprised of the Government Obligations and a certain beginning deposit as more fully described in 2.02 hereof. "Escrow Agent" means American National Bank and Trust Company of Chicago, a national banking association, with principal offices located in the City of Chicago, Illinois, IRA not individually but in the capacity for the uses and purposes hereinafter mentioned, or any successor thereto. "Government Obligations" means direct obligations of the United States of America (being United States Bills, Notes, Bonds or STRPS or SLGS) and the trust receipts for such direct obligations, denominated "Treasury Receipts", all deposited hereunder. "MSTC" means "Kray & Co.", as nominee for Midwest Securities Trust Company, Chicago, Illinois, the sole registered owner of the Series 1989 Bonds, or successor as securities depository of the Series 1989 Bonds for so long as they are held in book -entry only form as provided in the ordinance providing the same. "Paying Agents" means the paying agents on the various series of the Refunded Bonds, namely, the Bond Registrars for such series. "Refunded Bonds" means the portions of the bonds described as follows: CORPORATE PURPOSE BONDS, SERIES 1985 Original Principal Amount: $9,750,000. Dated: May 1, 1985. Originally Due Serially: 1988-2007. Amount refunded: $1,295,000. Refunded Bonds Due December 1 as follows: YEAR AMOUNT ($) RATE (%) 1997 435,000 6.70 2007 860,000 5.75 which bonds shall be called for redemption on their December 1, 1995, Call Date at the redemption price of par plus accrued interest (hereinafter the "1985 Bonds"). -3- J GENERAL OBLIGATION BONDS, SERIES 1989 Original Principal Amount: $10,000,000. Dated: July 1, 1989. Originally Due Serially: 1990-2004. Amount refunded: $1,580,000. Refunded Bonds Due December I as follows: YEAR AMOUNT ($) RATE (%) 1999 165,0001 6.35 2000 800,000 6.40 2001 615,000 6.45 which bonds shall be called for redemption on their June 1, 1997, Call Date at the redemption price of par plus accrued interest (hereinafter the "1989 Bonds"). GENERAL OBLIGATION BONDS, SERIES 1991 Original Principal Amount: $10,000,000. Dated: November 1, 1991. Originally Due Serially: 1994-2012. Amount refunded: $5,910,000. Refunded Bonds Due December I as follows: YEAR AMOUNT ($) RATE (%) 2004 340,0002 6.10 2005 555,000 6.10 2006 590,000 6.10 2007 630,000 6.10 2008 670,000 6.10 2009 710,000 6.20 2010 755,000 6.20 2011 805,000 6.20 2012 855,000 6.20 1 Being a part of a maturity of $750,000. 2 Being apart of a maturity of $525,000. -4- which bonds shall be called for redemption on their December 1, 1998, Call Date at the redemption price of par plus accrued interest (hereinafter the "1991 Bonds"). "SLGS" means U.S. Treasury Obligations of the State and Local Government Series. 'Treasurer" means the Treasurer of the Village. "Village" means the Village of Elk Grove Village, Cook and DuPage Counties, Illinois. "Village Board" means the President and Board of Trustees which is the governing body of the Village. ARTICLE H. CREATION OF ESCROW 2.01. The Refunded Bonds are hereby refunded by the provision hereby for the payment of all interest on and principal of and redemption price on the Refunded Bonds from the date hereof through the respective Call Date for each series (such payment to constitute the "Aggregate Refunded Bond Payment Requirement" for each such series or all series, as applicable), all by the deposit with the Escrow Agent of moneys sufficient to purchase the Government Obligations described in 2.02 hereof, which Government Obligations (together with the beginning deposit of funds as described herein) will provide all moneys necessary to pay the Aggregate Refunded Bond Payment Requirement for the Refunded Bonds. 2.02. The Village has deposited with the Escrow Agent at the execution and delivery of this Escrow Agreement the sum of $9,295,495.40 Bond proceeds ("Proceeds") and the sum of $271,495.73 derived from funds of the Village on hand and lawfully available for the purpose ("Village Funds"). The Proceeds and the Village Funds have been used to acquire the Government Obligations and to establish a beginning cash balance ("Beginning Cash"). -5- The Escrow Agent now holds the Government Obligations and the Beginning Cash as follows: "USTR" means United States Treasury Note or Bond. "TREC" means a Treasury Receipt (trust certificates). A Table showing the purchase prices for each Government Obligation appears in the Defeasance Report. Beginning Cash: $300.00 ARTICLE III. COVENANTS OF ESCROW AGENT The Escrow Agent covenants and agrees with the Village as follows: 3.01. The Escrow Agent will hold the Government Obligations and all interest, income and profit derived therefrom and all uninvested cash in a segregated and separate trust fund account for the sole and exclusive benefit of the Village and of the holders and registered owners of the Refunded Bonds and the Bonds, all to the purposes for which escrowed. 3.02. The Beginning Cash in the Escrow Account shall remain uninvested and be applied to the payment of first interest due therefrom. Thereafter, from time to time at each 10 PRINCIPAL TYPE DUE DATE AMOUNT ($) RATE (%) USTR 11/30/93 175,000 5.50 USTR 5/31/94 111,000 5.125 USTR 11/30/94 149,000 4.625 USTR 5/31/95 151,000 4.125 USTR 11/15/95 1,450,000 5.125 USTR 5/31/96 153,000 7.625 USTR 11/30/96 159,000 6.50 USTR 5/31/97 1,744,000 6.75 USTR 11/30/97 171,000 6.00 USTR 5/31/98 177,000 5.375 TREC 11/15/98 6,091,817 -0- "USTR" means United States Treasury Note or Bond. "TREC" means a Treasury Receipt (trust certificates). A Table showing the purchase prices for each Government Obligation appears in the Defeasance Report. Beginning Cash: $300.00 ARTICLE III. COVENANTS OF ESCROW AGENT The Escrow Agent covenants and agrees with the Village as follows: 3.01. The Escrow Agent will hold the Government Obligations and all interest, income and profit derived therefrom and all uninvested cash in a segregated and separate trust fund account for the sole and exclusive benefit of the Village and of the holders and registered owners of the Refunded Bonds and the Bonds, all to the purposes for which escrowed. 3.02. The Beginning Cash in the Escrow Account shall remain uninvested and be applied to the payment of first interest due therefrom. Thereafter, from time to time at each 10 interest or principal payment date, certain ending balances may exist. The Escrow Agent agrees, without further order or direction whatever, to reinvest such ending balances in accordance with the terms of this section. The ending balances shall be invested, to the fullest extent possible, in direct and general obligations of the United States (Bills, Notes, Bonds, STRPS) purchased on the open market at the best available yield and coming due on, or as nearly as may be practicable before, the next interest payment date out of the Escrow Account. The Escrow Agent acknowledges that the schedule of amounts available for reinvestment appears in the cash flow tables as such appear in the schedules and columns of the Defeasance Report. 3.03. The Escrow Agent shall hold all balances not invested or reinvested as hereinabove described and on deposit in the Escrow Account on demand and in trust for the purposes hereof and shall secure same in accordance with applicable Illinois law for the securing of public funds. 3.04. The Escrow Agent will take no action in the investment or securing of the proceeds of the Government Obligations which would cause the Bonds or the Refunded Bonds to be classified as "arbitrage bonds" under applicable sections of the Internal Revenue Code, and all lawful regulations promulgated thereunder; provided, however, that it shall be under no duty to affirmatively inquire whether the Government Obligations as deposited are properly invested under said section; and, provided, further, that it may rely on all specific directions in this Agreement in the investment or reinvestment of balances held hereunder. 3.05. The Escrow Agent will promptly collect the principal of, interest on and income and profit from the Government Obligations and promptly apply the same solely and -7- only to pay the Aggregate Refunded Bond Payment Requirement from time to time as due for each series of the Refunded Bonds. 3.06. The Escrow Agent will remit to the Paying Agent on the Series 1985 Bonds and the Series 1991 Bonds and (as agent for and at the direction of the Director of Finance) to MSTC directly for the Series 1989 Bonds (for so long as same are held in book -entry only form with MSTC, and if not so held, to the Paying Agent on the Series 1989 Bonds), in good funds on or before each interest payment or principal payment and redemption dates, moneys sufficient to pay the Aggregate Refunded Bond Payment Requirement from time to time as due for each series of the Refunded Bonds, as set out in the Defeasance Report, and each such remittance shall fully release and discharge the Escrow Agent from any further duty or obligation thereto under this Agreement. 3.07. The Escrow Agent will make no payment of fees, due or to become due, of any Bond Registrar or any Paying Agent, and the Village covenants to pay the same as they become due. 3.08. The costs and expenses of the Escrow Agent will be paid by the Village from funds other than those deposited hereunder. The Escrow Agent shall have no lien or right of set-off of any kind on the Escrow Account and shall look solely to the Village and its other funds for payment. The Escrow Agent shall charge such fees for its services as are reasonable and usual for like services rendered by similar institutions. 3.09. The Escrow Agent has all the powers and duties herein set forth with no liability in connection with any act or omission to act hereunder, except for its own negligence or willful breach of trust, and shall be under no obligation to institute any suit or action or other proceeding under this Agreement or to enter any appearance in any suit, action or proceeding in which it may be defendant or to take any steps in the enforcement of In its, or any, rights and powers hereunder, nor shall be deemed to have failed to take any such action, unless and until it shall have been indemnified by the Village to its satisfaction against any and all costs and expenses, outlays, counsel fees and other disbursements, including its own reasonable fees, and if any judgment, decree or recovery be obtained by the Escrow Agent, payment of all sums due it, as aforesaid, shall be a first charge against the amount of any such judgment, decree or recovery. 3.10. The Escrow Agent may in good faith buy, sell or hold and deal in any of the Bonds or Refunded Bonds. 3.11. The Refunded Bonds are hereby called for redemption on the respective Call Date for each series of Refunded Bonds at the redemption price therefor, stated again as follows: Series Amount ($) Call Date Premium (%) Premium ($) Total ($) 1985 1,295,000 12/01/95 -0- -0- 1,295,000 1989 1,580,000 06/01/97 -0- -0- 1,580,000 1991 5,910,000 12/01/98 -0- -0- 5,910,000 The form and time of the giving of the notice of redemption shall be as specified in 3.12 hereof. 3.12. A. Official Time, Manner and Form. The time, manner and form of giving notice of the call for redemption of the Refunded Bonds shall be as follows: 1. Time and Manner: Notice of redemption of each series of the Refunded Bonds shall be given by registered or certified mail, mailed not less than 30 nor more than 60 days prior to the redemption date, to each registered owner of a bond or bonds to be redeemed, at the address appearing in the bond register for such bonds, or at such other address as may have been furnished in writing by a registered owner to the Bond Registrar. 6a All official notices of redemption shall state the name of the Refunded Bonds to be redeemed and at least the information as follows: (a) the redemption date; (b) the redemption price; (c) the principal amount of Refunded Bonds to be redeemed and the maturities to be redeemed; (d) that on the redemption date, the redemption price of each of the Refunded Bonds to be redeemed shall become due and payable and that the interest thereon shall cease to accrue from and after said redemption date; and (e) the place or places where the bonds to be redeemed are to be surrendered for payment of the redemption price, which shall be the principal office of the Paying Agent for such Refunded Bonds. 2. Form: NOTICE OF REDEMPTION GENERAL OBLIGATION CORPORATE PURPOSE BONDS [GENERAL OBLIGATION BONDS] SERIES 19_ DATED , 19 OF THE VILLAGE OF ELK GROVE VILLAGE COOK AND DUPAGE COUNTIES, ILLINOIS Notice is hereby given to the registered owners and holders of the bonds named in the above caption, maturing on December 1 of the years and in the amounts and numbered as follows: [here insert only those maturities and amounts to be called] YEAR AMOUNT ($) BOND NUMBER CUSIP NUMBER SOA that the aforesaid Village has called all of said bonds, in the aggregate principal amount of for redemption and payment prior to maturity, and said bonds will be paid and redeemed on 19_. The redemption price is 100% of the amount redeemed plus accrued interest to the redemption date. Such interest is payable to the record owner of the redeemed bonds as of the regular record date. The aforesaid bonds will be redeemed upon presentation and surrender at the principal offices of Illinois, as bond registrar and paying agent for said bonds. On the redemption date, said bonds will become due and payable at the redemption price, and interest in respect of such bonds shall cease to accrue from and after the redemption date. By order of the President and Board of Trustees of the Village of Elk Grove Village, Cook and DuPage Counties, Illinois, dated the day of 199 Bond Registrar and Paying Agent 0 Authorized Officer B. Additional Redemption Duties. The Escrow Agent shall act as agent for the Village in performing all acts, giving or causing to be given all notices, and providing such directions to the Bond Registrars or the Paying Agents, or both, to effect the payment and redemption of the Refunded Bonds as aforesaid. The Escrow Agent acknowledges receipt of -11- a certified copy of the ordinances of the Village authorizing and providing for the issuance of all series of the Refunded Bonds. C. Additional Notice. The Escrow Agent shall provide notice of redemption to MSTC as provided in the Representations Letter Agreement for such notice made in connection with the Series 1989 Bonds. In addition, further notice shall be given 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 the call for redemption if official notice thereof is given as above prescribed. Each further notice of redemption given shall contain the information required above for an official notice of redemption plus (a) the CUSIP numbers of all Refunded Bonds being redeemed pursuant to such notice; (b) the date of issue of the Refunded Bonds as originally issued; (c) the rate of interest borne by each Refunded Bond being redeemed; (d) the maturity date of each Bond being redeemed; and (e) any other descriptive information needed to identify accurately the Refunded Bonds being redeemed. Each further notice of redemption shall be sent at least 35 days before the redemption date by registered or certified mail or overnight delivery service to all registered securities depositories then in the business of holding substantial amounts of obligations of types comprising the Refunded Bonds (such depositories now being Depository Trust Company of New York, New York, Midwest Securities Trust Company of Chicago, Illinois, and Philadelphia Depository Trust Company of Philadelphia, Pennsylvania) 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 Refunded Bonds. Each further notice of redemption shall be published one time in The Bond Buyer, New York, New York, or, if such publication is impractical or unlikely to reach a -12- substantial number of the registered owners of the Refunded Bonds, in some other financial newspaper or journal which regularly carries notices of redemption of other obligations similar to the Refunded Bonds, such publication to be made at least 30 days prior to the date fixed for redemption. Upon the payment of the redemption price of Refunded 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 Refunded Bonds being redeemed with the proceeds of such check or other transfer. D. Further Additional Redemption Duties and Notice. The Escrow Agent shall give or cause the Bond Registrars or the Paying Agents, or both, as appropriate, to give such further notices of redemption as may be required by any applicable rule of the Securities and Exchange Commission, the Municipal Securities Rulemaking Board, the Comptroller of the Currency, or any other agency or person having appropriate jurisdiction; but the giving of any such notice shall be directory only, and any failure or defect with respect to such notice shall not invalidate or diminish in any way the validity of the redemption of the Refunded Bonds as provided herein upon the giving of official notice of redemption. 3.13. The Escrow Agent will submit to the Treasurer a statement within 30 days after December 1 and June 1 of each year, commencing December 1, 1993, itemizing all moneys received by it and all payments made by it under the provisions of this Agreement during the six month period ending on such December 1 or June 1. 3.14. If at any time it shall appear to the Escrow Agent that the available proceeds of the Government Obligations and funds on deposit in the Escrow Account will not be sufficient to make any payment (whether principal, interest or premium) due to the holders or registered owners of any of the Refunded Bonds, as and to the extent provided herein, the -13- Escrow Agent shall notify the Village not less than 15 days prior to such date, and the Village agrees that it will from any funds lawfully available for such purpose make up the anticipated deficit so that no default in the making of any such payment will occur. ARTICLE IV. COVENANTS OF VILLAGE The Village covenants and agrees with the Escrow Agent as follows: 4.01. The Escrow Agent shall have no responsibility or liability whatsoever for (a) any of the recitals of the Village herein, (b) the performance of or compliance with any covenant, condition, term or provision of the Bond Ordinance, and (c) any undertaking or statement of the Village hereunder or under said Bond Ordinance. 4.02. To the fullest extent it is required under the terms of the Refunded Bonds, the Village will promptly and without delay remit to the Escrow Agent, within ten days after receipt of its written request, such sum or sums of money as are necessary to make the payments required under 3.14 hereof and to fully pay and discharge any obligation or obligations or charges, fees or expenses incurred by the Escrow Agent in carrying out any of the duties, terms or provisions of this Agreement. The Village will promptly pay all Paying Agents' and Bond Registrars' fees. 4.03. The Village does hereby waive any right to pay at maturity or redeem on any other date than as herein specified any of the Refunded Bonds which are refunded under the terms of this Escrow Agreement. 4.04. The Village and its Treasurer shall cooperate with the Escrow Agent to the end of providing direct payment on the Series 1989 Bonds to MSTC. -14- 4 ARTICLE V. AMENDMENTS AND IRREVOCABILITY OF AGREEMENT 5.01. This Agreement may be amended or supplemented to provide that the Government Obligations or any portion thereof may be sold or redeemed, and moneys derived therefrom invested, reinvested (but only in other direct full faith and credit obligations of the U.S. Treasury which are not redeemable by the Treasury prior to maturity) or disbursed in any manner provided (any such amendment, supplement, direction to sell or redeem or invest, reinvest or disburse to be refe—ed to as a "Subsequent Action"), upon submission to the Escrow Agent of each of the following: A. Certified copy of proceedings of the Village Board of the Village authorizing the Subsequent Action and copy of the document effecting the Subsequent Action signed by duly designated officers of the Village. B. An opinion of nationally recognized bond counsel or tax counsel nationally recognized as having an expertise in the area of tax-exempt municipal bonds that the Subsequent Action will not cause the interest on the Bonds or any of the Refunded Bonds to become includible in the gross income of the owners for federal income tax purposes and not exempt from federal income taxes of such owners under the laws of the United States of America providing for taxation of income as and to the extent contemplated when such bonds were issued and that the Subsequent Action does not materially adversely affect the legal rights of the registered owners or holders of the Bonds or any of the Refunded Bonds. C. An opinion of a firm of nationally recognized independent certified public accountants that the amounts, which must consist of funds or receipts from direct full faith and credit obligations of the United States of America, not subject to redemption prior to maturity, all of which shall be held hereunder, available or to be available for payment of the Refunded Bonds will remain sufficient after the -15- Subsequent Action to pay when due the Aggregate Refunded Bond Payment Requirement then remaining to be paid. 5.02. The Village and the Escrow Agent may amend or add to the terms of this Agreement to correct errors, clarify ambiguities or insert inadvertently omitted material but only if any such correction, clarification or insertion has absolutely no adverse impact on the holders or registered owners of the Bonds or any of the Refunded Bonds. The Village may supplement this Agreement by providing for notice prior to any amendment to such parties as it may name in any such supplement, which will be effective upon filing with the Escrow Agent. 5.03. Except as provided in 5.01 and 5.02 hereof, all of the rights, powers, duties and obligations of the Escrow Agent hereunder shall be irrevocable and shall not be subject to amendment by the Escrow Agent and shall be binding on any successor to the Escrow Agent during the term of this Agreement. 5.04. Except as provided in 5.01 and 5.02 hereof, all of the rights, powers, duties and obligations of the Village hereunder shall be irrevocable and shall not be subject to amendment by the Village and shall be binding on any successor to the officials now comprising the Village Board during the term of this Agreement. 5.05. Except as provided in 5.01 and 5.02 hereof, all of the rights, powers, duties and obligations of the Treasurer hereunder shall be irrevocable and shall not be subject to amendment by the Treasurer and shall be binding on any successor to said official now in office during the term of this Agreement. ARTICLE VI. NOTICES 6.01. All notices and communications to the Village and the Village Board shall be addressed in writing to: -16- Village Clerk Village of Elk Grove Village 901 Wellington Avenue Elk Grove Village, Illinois 60007-3499 or at such other address as is furnished from time to time by the Village. 6.02. All notices and communications to the Escrow Agent shall be addressed in writing to: American National Bank and Trust Company of Chicago Corporate Trust Division 30 North LaSalle Street Chicago, Illinois 60690 or at such other address as is furnished from time to time by the Escrow Agent. to: 6.03. All notices and communications to the Treasurer shall be addressed in writing Treasurer Village of Elk Grove Village 901 Wellington Avenue Elk Grove Village, Illinois 60007-3499 or at such other address as is furnished from time to time by the Treasurer. ARTICLE VII. RESIGNATION OF ESCROW AGENT The Escrow Agent may at any time resign as Escrow Agent under this Agreement by giving 30 days written notice to the Village, and such resignation shall take effect upon the appointment of a successor Escrow Agent by the Village. The Village may select as successor Escrow Agent any financial institution with capital, surplus and undivided profits -17- of at least $100,000,000 and located within the City of Chicago, Illinois, The County of Cook, Illinois, or the City of New York, Borough of Manhattan, New York, which is authorized to maintain trust accounts for corporations in Illinois under applicable law, and which in fact customarily so acts. ARTICLE VIII. TERMINATION OF AGREEMENT Upon the final disbursement for the payment of the Refunded Bonds as hereinabove provided for, the Escrow Agent will transfer any balance remaining in the Escrow Account to the Treasurer with due notice thereof mailed to the Village, and thereupon this Agreement shall terminate. on IN WITNESS WHEREOF the Village has caused this Agreement to be signed in its name by its President, to be attested by the Village Clerk under its corporate seal hereunto affixed; and the Escrow Agent, not individually, but in the capacity as hereinabove described, has caused this Agreement to be signed in its corporate name by one of its and to be attested by one of its under its corporate seal hereunto affixed, all this 10th day of November 1993. ATTEST: Patricia S. Smith Village Clerk [SEAL] Its [SEAL] VILLAGE OF ELK GROVE VILLAGE COOK AND DUPAGE COUNTIES, ILLINOIS Dennis J. Gallitano President AMERICAN NATIONAL BANK AND TRUST COMPANY OF CHICAGO QI -19- Its The foregoing Escrow Agreement has been received and acknowledged by me as of the date last written. Hilda Ingebrigtsen Treasurer Village of Elk Grove Village Cook and DuPage Counties, Illinois -20- $10,000,000 VILLAGE OF ELK GROVE VILLAGE COOK AND DUPAGE COUNTIES, ILLINOIS GENERAL OBLIGATION BONDS, SERIES 1993 BQND PURCHASE AGREEMENT October 22, 1993 President and Board of Trustees Village of Elk Grove Village Elk Grove Village, Illinois First Chicago Capital Markets, Inc. ("FCCM" or the "Underwriter"), hereby offers to enter into this Bond Purchase Agreement (the "Agreement") with the Village of Elk Grove Village, Illinois (the "Village") which, upon the execution of this Agreement by the Village as hereinafter provided, will become a binding agreement between the Village and FCCM. 1. Purchase and Sale of the Bonds. In reliance upon the representations, warranties and agreements herein contained, but subject to the terms and conditions herein set forth, FCCM agrees to purchase from the Village, and the Village agrees to sell to FCCM $10,000,000 principal amount of the Village's General Obligation Bonds, Series 1993 (the "Bonds"), at a purchase price equal to $9,838,656.75 (plus accrued interest from the dated date to the date of delivery), such price reflecting an underwriting discount of $78,000.00 (the agreed upon .78% of par amount of Bonds issued) and an original issue discount of $83,344.25, in accordance with the provisions of an Ordinance to be adopted by the Village Board on October 26, 1993 (the "Ordinance"). FCCM agrees to make a bona fide offering of the Bonds at the initial public offering prices or yields set forth on the cover page of the Official Statement (as hereinafter defined). 2. Representations. Warranties and Covenants of the Village. The Village represents, warrants and covenants that: (a) The Village hereby authorizes and ratifies the Preliminary Official Statement dated October 15, 1993, the final Official Statement to be delivered as described in Section 4(c) hereof (the "Official Statement") and the information contained therein to be used in connection with the offer and sale of the Bonds by the Underwriter. W To the best of the Village's knowledge and belief, the Preliminary Official Statement is, and at the time of its delivery to the FCCM the Official Statement will be, and at the Closing Date the Official Statement will be, accurate in all material respects; and the Official Statement, as of such date or dates, will not, and the Preliminary Official Statement, as of its date, did not include any untrue statement of a material fact or omit to state any material fact necessary to make the statements made therein, in the light of the circumstances under which they are or were made, not misleading. (c) The Bonds are authorized by virtue of the Ordinance. (d) No action, suit, inquiry, investigation or other proceeding is pending, or to the knowledge of the Village, threatened, in or before any court, governmental agency, authority, body or arbitrator in any way affecting the existence of the Village or the title of any official of the Village (including any member of the Village Board) to his or her office, or seeking to restrain, enjoin or challenge the issuance, sale or delivery of the Bonds, or the collection of tax receipts or other available moneys of the Village to pay principal of or interest on the Bonds, or in any way contesting or affecting the validity or enforceability of this Agreement, the Ordinance or the Bonds or contesting in any way the completeness or accuracy of the Official Statement or the powers or authority of the Village with respect to this Agreement, the Ordinance, the Bonds or the exemption of interest on the Bonds from Federal income taxation. 3. Delivery of the Bonds. Payment of the purchase price for the Bonds as set forth in Section 1 hereof shall be made by wire transfer in immediately available funds drawn to the order of the Village at 10 a.m., Chicago time, on November 10, 1993 (the "Closing Date"), at the offices of Chapman and Cutler, Attorneys; Chicago, Illinois or at such other time or place as the FCCM and the Village determine, against delivery of the Bonds in permanent form duly executed, and delivery of the other instruments and documents required to be delivered hereunder to the FCCM. .�. (a) Unless (1) the amount of savings produced from this financing is unacceptable to the Village or (2) FCCM fails to fulfill any of its obligations, covenants or representations hereunder, then if the obligations of FCCM under this Agreement shall be terminated for any reason by the Village, the Village will reimburse the FCCM for all reasonable out-of-pocket expenses incurred by FCCM. (b) The Village will not amend or supplement the Official Statement without the consent of FCCM. -2- (c) The Preliminary Official Statement is deemed by the Village to be in "nearly final form" for purposes of Rule 15c2-12 of the Securities and Exchange Commission. In accordance with Rule 15c2-12, the Village agrees that copies of the Official Statement, in an amount sufficient to provide one copy to each initial bond purchaser, will be delivered to the FCCM within seven business days of the Village's acceptance of this Agreement. 5. Conditions of the Obligations of FCCM. The obligation of the FCCM to purchase and pay for the Bonds will be subject to the accuracy, completeness and correctness on the date hereof and at all times hereafter up to and including the Closing Date of the representations, warranties and covenants on the part of the Village herein, to the accuracy of the statements of the officials of the Village made pursuant to the provisions hereof, to the performance by the Village of its obligations hereunder and to the following additional conditions precedent: (a) The Bonds, this Agreement, the Escrow Deposit Agreement, the Ordinance and the Official Statement shall have been duly authorized and executed or adopted by the Village; all necessary action of the Village relating to this Agreement, the Escrow Deposit Agreement, the Bonds, the Ordinance and the Official Statement shall be in full force and effect and shall not have been amended, modified or supplemented; and there shall have been taken in connection with the issuance of the Bonds and with the transactions contemplated hereby and thereby all such actions as, in the opinion of Chapman and Cutler, Bond Counsel, are necessary and appropriate. (b) Subsequent to the date of this Agreement and on and prior to the Closing Date: (i) The marketability of the Bonds or the contemplated offering price thereof shall not, in the opinion of the FCCM, have been materially adversely affected by an amendment to the Constitution of the United States of America, the State of Illinois, or any Federal or Illinois legislation, pending or effective, or by any decision of any Federal or Illinois court or by any order, ruling or regulation (final, temporary or proposed) of the Treasury Department of the United States of America, the Internal Revenue Service or other Federal or Illinois authority or regulatory body, affecting the status of the Village, its property or income, the Village's securities (including the Bonds) or the interest thereon, or any tax exemption with respect to the Village's securities (including the Bonds), or the interest thereon, granted or authorized by the Internal Revenue Code of 1986, as amended. -3- III) No stop order, ruling, regulation or official statement by, or on behalf of, any governmental agency having jurisdiction shall have been issued or made to the effect that the issuance, offering or sale of the obligations of the general character of the Bonds, or the issuance, offering or sale of the Bonds, as contemplated hereby or by the Official Statement, is in violation or would be in violation of any provision of Federal or Illinois securities laws. (iii) No legislation shall have been enacted by the Congress of the United States of America, no decision by a court of the United States of America shall have been rendered, and the Securities and Exchange Commission shall have taken no action to the effect that the obligations of the general character of the Bonds, or the Bonds, are not exempt from registration or qualification under requirements of the Federal securities laws. (iv) No additional material restrictions not in force as of the date hereof shall have been imposed upon the trading in securities generally by any governmental authority or by any national securities exchange. (v) No rating of any of the Village's securities (including the Bonds) shall have been downgraded or withdrawn by a national rating service, the effect of which, in the opinion of the FCCM, is to materially adversely affect the market price of the Bonds or FCCM's ability to underwrite the Bonds. (vi) None of the following events shall have occurred: (A) the engagement by the United States of America in hostilities which have resulted in a declaration of war or national emergency, or the occurrence of any other outbreak of hostilities or local, national or international calamity, crisis, financial or otherwise, the effect of such outbreak, calamity or crisis on the financial and securities markets of the United States of America being such as, in the opinion of FCCM, would materially adversely affect the ability of FCCM to market the Bonds; (B) a general suspension of trading on the New York Stock Exchange, the American Stock Exchange or other national securities exchange or any similar impediment in the markets for securities of the general character of the Bonds; or (C) the declaration of a banking moratorium either by Federal, New York State or Illinois authorities shall have occurred which, in the opinion of the FCCM, requires an amendment or supplement to the Official Statement. -4- (vii) Nothing shall have come to the attention of FCCM giving them reason to believe that the Official Statement is incomplete or inaccurate in any material respect for the purposes for which it is intended. (c) At the Closing Date, no litigation shall be pending, or to the knowledge of the Village, threatened, in any court, nor any proceeding before or by any governmental authority, body or arbitrator shall be pending, or, to the knowledge of the Village, threatened: (i) seeking to restrain or enjoin the issuance, sale or delivery of any of the Bonds or the payment, collection or application of the proceeds thereof or the tax receipts or other moneys pledged or to be pledged under the Ordinance for the payment of the Bonds; (ii) in any way questioning or affecting the validity of the Bonds or any provisions of this Agreement, the Escrow Agreement, the Ordinance, or any proceedings taken by the Village or FCCM with respect to any of the foregoing; (iii) questioning the Village's creation, organization or existence or the titles to office of any of its officers or its power to engage in any of the transactions contemplated by this Agreement or the Ordinance or (iv) questioning the exemption of interest on the Bonds from Federal income taxation. If any of the conditions specified in this Section have not been fulfilled when and as required by the Agreement, or if any of the opinions, instruments, letters, legal opinions, documents, proceedings or certificates mentioned above or elsewhere in this Agreement shall not be in all material respects reasonably satisfactory in form and substance to FCCM, this Agreement and all obligations of FCCM hereunder may be cancelled by the FCCM at, or at any time prior to, the Closing Date. Notice of such cancellation shall be given to the Village in writing, or by telecopier confirmed in writing. 6. Certain Costs and Expenses• Provision of Government Securities (a) The Village shall pay all expenses incident to the performance of the Village's obligations hereunder including but not limited to: (i) the cost of the preparation and printing of the Ordinance and the Official Statement in preliminary and final form (including any amendments or supplements thereto); (ii) the cost of the preparation, printing and delivery to FCCM of the Bonds (including any temporary Bonds); (iii) the fees and disbursements of Chapman and Cutler, Bond Counsel, the Village's accountants and financial advisers, the Escrow Agent, and of any other experts, accountants or consultants retained in connection with the issuance and sale of the Bonds; (iv) rating agency fees; and (v► any other expenses not enumerated in the paragraph immediately below incurred in connection with the issuance of the Bonds. -5- (b) The FCCM shall pay: (i) the cost of the preparation and printing of this Agreement; (ii) all advertising expenses in connection with the public offering of the Bonds; (iii) the cost of Underwriter's Counsel and (iv) all other expenses incurred by them (which the Village is not obligated to pay under this Agreement) in connection with the public offering and distribution of the Bonds. (c) FCCM agrees to provide government securities as required to accomplish the refunding contemplated in connection with the issuance of the Bonds. 7. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Illinois, including, without limitation, those laws applicable to contracts made and to be performed in that State. 8. Survival of Certain Representations and Obligations. The respective agreements, representations, warranties, covenants and other statements of the Village and its officers and of the FCCM set forth in or made pursuant to this Agreement will remain in full force and effect, regardless of any investigation or statement as to the results thereof made by or on behalf of the FCCM, the Village or any of their officers or controlling persons and will survive delivery of and payment for the Bonds. 9. Successors. This Agreement will inure to the benefit of and be binding upon the parties hereto and their respective successors, officers and controlling persons, and no other person will have any right or obligation hereunder. 10. Counterparts. This Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. 11. Notice. All communications hereunder will be in writing and if sent to the FCCM will be mailed, delivered or telegraphed and confirmed to First Chicago Capital Markets, Inc., One First National Plaza, Suite 0826, Chicago, Illinois 60670, Attention: Public Finance Department or if sent to the Village will be mailed, delivered or telegraphed and confirmed to the address set forth above. IR STATE OF ILLINOIS ) ) SS COUNTY OF COOK ) CERTIFICATION OF MINUTES AND ORDINANCE I, the undersigned, do hereby certify that I am the duly qualified and acting Village Clerk of the Village of Elk Grove Village, Cook and DuPage 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 "Village Board") thereof. I do further certify that the foregoing is a full, true and complete transcript of that portion of the minutes of the meeting of the Village Board held on the 26th day of October 1993 insofar as the same relates to the adoption of an ordinance, numbered 2332 , entitled: AN ORDINANCE providing for the issuance of $10,000,000 General Obligation Bonds, Series 1993, of the Village of Elk Grove Village, Cook and DuPage Counties, Illinois, and providing for the levy and collection of a direct annual tax for the payment of the principal of and interest on said bonds. 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 Village 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 newspapers, radio or television stations and other news media requesting such notice; and that said meeting was called and held in strict compliance with the provisions of the Open Meetings Act of the State of Illinois, as amended, and the Illinois Municipal Code, as amended, and that the Village Board has complied with all of the provisions of said Act and said Code and with all of the procedural rules of the Village Board in the adoption of said ordinance. IN WITNESS WHEREOF I hereunto affix my official signature and the seal of the Village this 27th day of October 1993. Patricia S. Smith Village Clerk [SEAL] 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 Elk Grove Village, Cook and DuPage 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 "Village Board") thereof. I do further certify that at 9:00 a.m. on the 27th day of October 1993 there was published in pamphlet form, by authority of the President and Board of Trustees, a true, correct and complete copy of Ordinance Number 2332 of the Village providing for the issuance of $10,000,000 General Obligation Bonds, Series 1993, dated October 15, 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 to meet the needs of the general public, at my office as Village Clerk located in the Village. IN WITNESS WHEREOF I have affixed hereto my official signature and the seal of the Village this 271h day of October 1993. Patricia S. Smith Village Clerk (SEAL] STATE OF ILLINOIS ) ) SS COUNTY OF COOK ) CERTIFICATE OF FILING I, David D. Orr, do hereby certify that I am the duly qualified and acting County Clerk of The County of Cook, Illinois, and as such officer I do hereby certify that on the day of 1993 there was filed in my office a properly certified copy of Ordinance Number —, passed by the President and Board of Trustees of the Village of Elk Grove Village, Cook and DuPage Counties, Illinois, on the 26th day of October 1993 and entitled: AN ORDINANCE providing for the issuance of $10,000,000 General Obligation Bonds, Series 1993, of the Village of Elk Grove Village, Cook and DuPage Counties, Illinois, and providing for the levy and collection of a direct annual tax for the payment of the principal of and interest on said bonds. and that the same has been deposited in, and all as appears from, the official files and records of my office. IN WITNESS WHEREOF I have hereunto affixed my official signature and the seal of The County of Cook, Illinois, at Chicago, Illinois, this day of October 1993. County Clerk of The County of Cook, Illinois [SEAL] STATE OF ILLINOIS ) ) SS COUNTY OF DUPAGE ) CERTIFICATE OF FILING I, Gary King, do hereby certify that I am the duly qualified and acting County Clerk of The County of DuPage, Illinois, and as such officer I do hereby certify that on the day of 1993 there was filed in my office a properly certified copy of Ordinance Number , passed by the President and Board of Trustees of the Village of Elk Grove Village, Cook and DuPage Counties, Illinois, on the 26th day of October 1993 and entitled: AN ORDINANCE providing for the issuance of $10,000,000 General Obligation Bonds, Series 1993, of the Village of Elk Grove Village, Cook and DuPage Counties, Illinois, and providing for the levy and collection of a direct annual tax for the payment of the principal of and interest on said bonds. and that the same has been deposited in, and all as appears from, the official files and records of my office. IN WITNESS WHEREOF I have hereunto affixed my official signature and the seal of The County of DuPage, Illinois, at Illinois, this day of October 1993. County Clerk of The County of DuPage, Illinois [SEAL]