HomeMy WebLinkAboutORDINANCE - 2946 - 8/15/2003 - GENERAL OBLIGATION BOND 2003ORDINANCE NUMBER 2946
AN ORDINANCE providing for the issuance of not to exceed
$7,850,000 General Obligation Refunding Bonds, Series 2003B, of
the Village of Elk Grove Village, Cook and DuPage Counties,
Illinois, and providing for the levy and collection of a direct annual
tax sufficient for the payment of the principal of and interest on
said bonds.
Adopted by the Mayor and Board of
Trustees of the Village on the 12th
day of August 2003.
Published in Pamphlet Form by
Authority of said Corporate
Authorities on thel5th day of
August 2003
TABLE OF CONTENTS
SECTION
HEADING
PAGE
SECTION 1.
DEFINITIONS................................................................................................3
SECTION 2.
INCORPORATION OF PREAMBLES................................................................6
SECTION 3.
DETERMINATION TO ISSUE BONDS.............................................................6
SECTION4.
BOND DETAILS.............................................................................................6
SECTION 5.
BOOK ENTRY PROVISIONS...........................................................................8
SECTION 6.
EXECUTION; AUTHENTICATION................................................................10
SECTION 7.
REGISTRATION OF BONDS; PERSONS TREATED AS OWNERS ...................10
SECTION 8.
FORM OF BOND..........................................................................................12
SECTION 9.
SECURITY FOR THE BONDS........................................................................18
SECTION 10.
TAX LEVY; ABATEMENT...........................................................................18
SECTION 11.
FILING WITH COUNTY CLERKS.................................................................19
SECTION 12.
SALE OF BONDS; OFFICIAL STATEMENT...................................................20
SECTION 13.
CREATION OF FUNDS AND APPROPRIATIONS............................................22
SECTION 14.
CONTINUING DISCLOSURE UNDERTAKING...............................................24
SECTION 15.
GENERAL TAX COVENANTS......................................................................25
SECTION 16.
CERTAIN SPECIFIC TAX COVENANTS........................................................26
SECTION 17.
RIGHTS AND DUTIES OF BOND REGISTRAR..............................................30
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SECTION 18. MUNICIPAL BOND INSURANCE..................................................................31
SECTION 19. TAXES PREVIOUSLY LEVIED.....................................................................32
SECTION 20. DEFEASANCE..............................................................................................32
SECTION 21. PUBLICATION OF ORDINANCE...................................................................33
SECTION 22. CALL OF THE REFUNDED BONDS..............................................................33
SECTION 23. SUPERSEDER AND EFFECTIVE DATE.........................................................34
LIST OF EXHIBITS:
A - DIRECTION FOR REDEMPTION
B - CONTINUING DISCLOSURE UNDERTAKING
ORDINANCE NUMBER
AN ORDINANCE providing for the issuance of not to exceed
$7,850,000 General Obligation Refunding Bonds, Series 2003B, of
the Village of Elk Grove Village, Cook and DuPage Counties,
Illinois, and providing for the levy and collection of a direct annual
tax sufficient for the payment of the principal of and interest on
said bonds.
PREAMBLES
-WHEREAS-
A. 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 as such 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.
B. 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.
C. The Mayor and Board of Trustees of the Village (the "Corporate Authorities") have
previously provided for the issuance of and the Village has heretofore issued and there are now
outstanding the following legal and validly binding and subsisting obligations of the Village:
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GENERAL OBLIGATION BONDS
SERIES 1993, DATED NOVEMBER 1, 1993
Original Principal Amount: $10,000,000
Originally Due Serially on
December 1 in the Years: 1994 to 2012
Amount Remaining Outstanding: $7,210,000
Amount To Be Refunded: $7,140,000
DECEMBERI
OF THE YEAR
2003
REMAINING OUTSTANDING BONDS AND BONDS TO
BE REFUNDED DUE AND DESCRIBED AS FOLLOWS:
AMOUNT ($)
70,000
RATE OF
INTEREST (%)
4.20
AMOUNT TO BE
REFUNDED
None
2004
410,000
4.30
All
2005
625,000
4.40
All
2006
650,000
4.50
All
2007
1,545,000
4.65
All
2008
710,000
4.75
Al
2009
740,000
5.00
All
2010
780,000
5.00
All
2011
820,000
5.00
All
2012
860,000
5.00
All
which bonds due 2004-2012, inclusive (the "Refunded Bonds"), are subject to redemption prior
to maturity at the option of the Village, on any date on or after December 1, 2003, at the
redemption price of par and accrued interest.
D. The Corporate Authorities have considered and determined that interest rates
available in the bond market are currently more favorable for the Village than they were at the
time when the Refunded Bonds were issued and that it is possible, proper, and advisable to
refund the Refunded Bonds at this time and to make provision for the call and redemption of the
Refunded Bonds, to take advantage of the debt service savings which will result from such lower
interest rates (which refunding may hereinafter be referred to as the "Refunding"),
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E. The Corporate Authorities have considered the needs of the Village and have
determined and do hereby determine that it is advisable, necessary and in the best interests of the
Village to borrow against such savings in order to acquire and construct corporate capital
improvements pursuant to the Capital Improvement Plan of the Village (the "Project ").
F. The estimated savings to the Village to be available for the Project and to be payable
out of the original proceeds of the Bonds as provided in this Ordinance is not less than $400,000, -
and may be more.
G. The Corporate Authorities do hereby determine that it is advisable and in the best
interests of the Village to borrow not to exceed $7,850,000 at this time pursuant to the Act as
hereinafter defined for the purpose of paying the costs of the Refunding and the Project and, in
evidence of such borrowing, issue the full faith and credit bonds of the Village in the principal
amount of not to exceed such amount.
Now THEREFORE Be It Ordained by the Mayor 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. Words and terms used in this Ordinance shall have the
meanings given them, unless the context or use clearly indicates another or different meaning is
intended. Words and terms defined in the singular may be used in the plural and vice -versa.
Reference to any gender shall be deemed to include the other and also inanimate persons such as
corporations, where applicable.
A. The following words and terms are as defined in the preambles.
Corporate Authorities
Project
Refunded Bonds
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Refunding
Village
B. The following words and terms are defined as set forth.
"Act" means the Illinois Municipal Code, as supplemented and amended, the Local
Government Debt Reform Act, as amended, and also the home rule powers of the Village under
Section 6 of Article VII of the Illinois Constitution of 1970; and in the event of conflict between
the provisions of said statutory and home rule powers, the home rule powers shall be deemed to
supersede.
"Ad Valorem Property Taxes" means the real property taxes levied to pay the bonds as
described and levied in Section 12 of this Ordinance.
"Bonds" means the General Obligation Refunding Bonds, Series 2003B, authorized to be
issued by this Ordinance.
"Bond Fund" means the Bond Fund established and defined in Section 15 of this
Ordinance.
"Bond Moneys" means the taxes and any other moneys deposited into the Bond Fund and
investment income held in the Bond Fund.
"Bond Order" means that certain bond order, to be executed by any three of the
Designated Officials acting together, and setting forth certain details of the Bonds as provided in
Section 12 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 Deutsche Bank National Trust Company, a national banking
association, having trust powers, with corporate trust offices located in the City of Chicago,
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Illinois, or its successors, in its capacity as bond registrar and paying agent under this Ordinance,
or a substituted bond registrar and paying agent as hereinafter provided.
"Book Entry Form" means the form of the Bonds as fully registered and available in
physical form only to the Depository.
"Code " means the Internal Revenue Code of 1986, as amended.
"Counties" means The Counties of Cook and DuPage, Illinois.
"County Clerks" means the County Clerks of the Counties.
"Depository" means The Depository Trust Company, a limited purpose trust company
organized under the laws of the State of New York, its successors, or a successor depository
qualified to clear securities under applicable state and federal laws.
"Designated Officials" means any three of the President (who is also, by ordinance, the
Mayor), Village Clerk, Director of Finance and Treasurer, or Village Manager of the Village.
"Direction for Redemption" means the agreement by and between the Village and the
Redemption and Paying Agent as authorized in Section 13 hereof and in form substantially as set
forth as Exhibit A.
"Ordinance" means this Ordinance, numbered as set forth on the title page hereof, and
passed by the Corporate Authorities on the 12th day of August 2003.
"Rebate Fund" means the Rebate Fund authorized to be established and as defined in
Section 18 of this Ordinance.
"Record Date " means the 15th day of the month preceding any interest payment date.
"Redemption and Paying Agent" means Bank One, National Association, with corporate
trust offices located in the City of Chicago, Illinois, a bank having trust powers, as successor to
American National Bank and Trust Company of Chicago, paying agent for the Refunded Bonds.
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"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.
C. Definitions also appear in the above preambles or in specific sections, as appearing
below. The table of contents preceding and the headings in this Ordinance are for the
convenience of the reader and are not a part of this Ordinance.
Section 2. Incorporation of Preambles. The Corporate Authorities hereby. find that the
recitals contained in the preambles to this Ordinance are true, correct, and complete and do
incorporate them into this Ordinance by this reference.
Section 3. Determination to Issue Bonds. It is necessary and in the best interests of the
Village to accomplish the Refunding and provide funds for the Project, to pay all related costs
and expenses incidental thereto, and to borrow money and issue the Bonds for such purpose. It is
hereby found and determined that such borrowing of money is for a proper public purpose 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. There shall be issued and sold the Bonds in the aggregate
principal amount of not to exceed $7,850,000. The Bonds shall each be designated "General
Obligation Refunding Bond, Series 2003B" or such other name or names or series designations
as may be appropriate and as stated in the Bond Order; be dated September 1, 2003, or such other
date or dates as may be set forth in the Bond Order if it is determined therein to be a date better
suited to the advantageous marketing of the Bonds (the "Dated Date"); and shall also bear the
date of authentication thereof. The Bonds shall be fully registered and in Book Entry Form, shall
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be in denominations of $5,000 or integral multiples thereof (but no single Bond shall represent
principal maturing on more than one date), and shall be numbered consecutively in such fashion
as shall be determined by the Bond Registrar. The Bonds shall mature on any date in January or
any date in February of such years as shall be set forth in the Bond Order, and in such principal
amounts as shall be set forth therein; provided, however, that the tax levy required for the timely
payment of the principal of and interest on the Bonds in any year shall not exceed the tax levy
now on file for the Refunded Bonds during the same levy year, plus, in each year, the sum of
$10,000. Each Bond;shall bear interest, at a rate not to exceed 5.20% per annum, 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 such date in January and July or alternativey such date in June and
December of each year, commencing in December of 2003 or January of 2004, as provided in the
Bond Order. 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 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 for so long as the Depository or its nominee is the registered owner as of a given
Record Date. The principal of the Bonds shall be payable in lawful money of the United States
of America upon presentation thereof at the office maintained and designated for such purpose of
the Paying Agent located in the City of Chicago, Illinois, or at successor paying agent and
locality.
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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 the Depository or a designee or nominee of the Depository (such depository or nominee being
the "Book Entry Owner "). Except as otherwise expressly provided, all of the outstanding Bonds
from time to time shall be registered in the Bond Register in the name of the Book Entry Owner
(and accordingly in Book Entry Form as such term is used in this Ordinance). Any Village
officer, as representative of the Village, is hereby authorized, empowered, and directed to execute
and deliver or utilize a previously executed and delivered Letter of Representations or Blanket
Letter of Representations (either being the "Letter of Representations") substantially in the form
common in the industry, or with such changes therein as the officer executing the Letter of
Representations on behalf of the Village shall approve, his or her execution thereof to constitute
conclusive evidence of approval of such changes, as shall be necessary to effectuate Book Entry
Form. Without limiting the generality of the authority given with respect to entering into such
Letter of Representations, 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 the Book Entry Owner, none of the Village, its Treasurer, or the Bond -Registrar -shall
have any responsibility or obligation to any broker-dealer, bank, or other financial institution for
which the Depository holds Bonds from time to time as securities depository (each such
broker-dealer, bank, or other financial institution being referred to herein as a "Depository
Participant") or to any person on behalf of whom such a Depository Participant holds an interest
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in the Bonds. Without limiting the meaning of the immediately preceding sentence, the Village,
its Treasurer, and the Bond Registrar shall have no responsibility or obligation with respect to
(a) the accuracy of the records of the Depository, the Book Entry Owner, 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 or as otherwise expressly provided in the Letter of Representations, 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. In the event that (a) the Village determines that the Depository is
.incapable of discharging its responsibilities described herein and in the Letter of Representations,
(b) the agreement among the Village, the Bond Registrar, and the Depository evidenced by the
Letter of Representations 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 either that they be
able to obtain certificated Bonds or that another depository is preferable, the Village shall notify
the Depository and the Depository shall notify 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 the Book Entry Owner. Alternatively, at such time, the Village may
determine that the Bonds shall be registered in the name of and deposited with a successor
depository operating a system accommodating Book Entry Form, 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
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owners of Bonds transferring or exchanging Bonds shall designate, in accordance with the
provisions of this Ordinance.
Section 6. Execution; Authentication. The Bonds shall be executed on behalf of the
Village by the manual or duly authorized facsimile signature of its Mayor 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 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. Registration of Bonds; Persons Treated as. Owners. The Village shall cause
books (the "Bond Register" as herein defined) for the registration and for the transfer of the
Bonds as provided in this Ordinance to be kept at the principal office of the Bond Registrar so
maintained for the purpose, 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
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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. Subject to the provisions of this Ordinance
relating to the Bonds in Book Entry Form, 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
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.
The execution by the Village of any fully registered Bond shall constitute full and due
authorization of such Bond; and the Bond Registrar shall thereby be authorized to authenticate,
date, and deliver such Bond; provided, however, the principal amount of Bonds of each maturity
authenticated by the Bond Registrar shall not at any one time exceed the authorized principal
amount of Bonds for such maturity less the amount of such Bonds which have been paid. The
person in whose name any Bond shall be registered shall be deemed and regarded as the absolute
owner thereof for all purposes, and payment of the principal of or interest on any Bond shall be
made only to or upon the order of the registered owner thereof or 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 to any registered
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owner of Bonds for any transfer or exchange of Bonds, but the Village or the Bond Registrar may
require payment of a sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any transfer or exchange of Bonds.
Section 8. 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.
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[FORM OF BOND - FRONT SIDE]
REGISTERED REGISTERED
No. $
UNITED STATES OF AMERICA
STATE OF ILLINOIS
THE COUNTIES OF COOK AND DUPAGE
VILLAGE OF ELK GROVE VILLAGE
GENERAL OBLIGATION REFUNDING BOND, SERIES 2003B
See Reverse Side for
Additional Provisions.
Interest Maturity Dated
Rate: Date: Date: September 1, 2003 CUSIP:
Registered Owner:
Principal Amount: 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 (without option of prior redemption), 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 _ and _ of each year, commencing
_, 200, until said Principal Amount is paid or duly provided for. The principal
of or redemption price on this Bond is payable in lawful money of the United States of America
upon presentation hereof at the office maintained for the purpose by Deutsche Bank National
Trust Company, a national banking association, having trust powers, located in the City of
Chicago, Illinois, as paying agent and bond registrar (the "Baud Registrar "). Payment of interest
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shall be made to the Registered Owner hereof as shown on the registration books of the Village
maintained by such 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 interest
payment date. Interest shall be paid by check or draft of the Bond Registrar, payable upon
presentation in lawful money of the United States of America, mailed to the address of such
Registered Owner as it appears on such registration books, or at such other address furnished in
writing by such Registered Owner to the Bond Registrar, or as otherwise agreed by the Village
and the Bond Registrar for so long as this Bond. is held by a qualified securities clearing
corporation as depository, or nominee, in Book Entry 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 indebtedness of the
Village, howsoever evidenced or incurred, does not exceed airy constitutional or statutory or
other lawful limitation; and that provision has been made for the levy and collection of a direct
aminal 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.
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.
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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 (who is also, by ordinance, duly
designated, the Mayor) 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:
Village Clerk
Village of Elk Grove Village
Cook and DuPage Counties, Illinois
[SEAL]
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Mayor
Village of Elk Grove Village
Cook and DuPage Counties, Illinois
CERTIFICATE OF AUTHENTICATION
This Bond is one of the Bonds described in the within -mentioned Ordinance and is one of
the General Obligation Refunding Bonds, Series 2003B, having a Dated Date of September 1,
2003, of the Village of Elk Grove Village, Cook and DuPage Counties, Illinois.
Date of Authentication:
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DEUTSCHE BANK NATIONAL TRUST
COMPANY, as Bond Registrar
Authorized Signer
[FORM OF BOND - REVERSE SIDE]
This bond is one of a series of bonds (the "Bonds") in the aggregate principal amount of
$ issued by the Village for the purpose of paying the costs of a certain Refunding of
previously issued bonds and a municipal Project and of paying expenses incidental thereto, all as
described and defined in Ordinance Number of the Village, passed by the
President and Board of Trustees on the 12th day of August 2003 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, the Local Government Debt Reform
Act, as amended, and 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 approved by the Mayor, and published in
pamphlet form, in all respects as by law required.
This Bond may be transferred or exchanged, but only in the manner, subject to the
limitations, and upon payment of the charges as set forth in the Ordinance. The 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.
The Village and the Bond Registrar may deem and treat the Registered Owner hereof as
the absolute owner hereof for the purpose of receiving payment of or on account of principal
hereof and interest due hereon and for all other purposes, and neither the Village nor the Bond
Registrar shall be affected by any notice to the contrary.
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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 9. Securityfor the Bonds. The Bonds are payable as a general obligation of the
Village, for which the full faith and credit of the Village are irrevocably pledged, and are payable
from the levy of taxes on all of the taxable property in the Village, without limitation as to rate or
amount.
Section 10. Tax Levy; Abatement. 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. Such levy shall be fully set forth in the Bond Order for the Bonds (the "Ad
Valorem Property Taxes"), The Ad Valorem Property Taxes and other moneys on deposit in the
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Bond Fund from time to time (collectively, the "Bond Moneys" as herein defined) shall be
applied to pay principal of and interest on the Bonds. Interest on or principal of the Bonds
coming due at any time when there are insufficient Bond Moneys to pay the same shall be paid
promptly when due from current funds on hand in advance of the deposit of the Ad Valorem
Property Taxes herein levied; and when the Ad Valorem Property 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 Ad Valorem Property Taxes may lawfully be levied, extended, and collected as
provided herein. In the event that funds from any other 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 Corporate Authorities shall, by proper
proceedings, direct the transfer of such funds to the Bond Fund, and shall then further shall direct
the abatement of the taxes by the amount so deposited. The Village covenants and agrees that it
will not direct the abatement of taxes until money has been deposited into the Bond Fund in the
amount of such abatement. 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. Proper notice of such abatement shall be filed with the County Clerks, in a timely
manner to effect such abatement.
Section I]. Filing with County Clerks. After this Ordinance has become effective, and
promptly upon a sale of Bonds and execution and delivery of a Bond Order, a copy hereof,
together with the Bond Order, certified by the Village Clerk of the Village, shall be filed with
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each of the County Clerks. The County Clerks shall in and for each of the years required,
ascertain the rate percent required to produce the aggregate tax herein provided to be levied and
set forth in the 13ond Order in each of said years; and the County Clerks shall (to the extent said
tax has not been abated as provided herein) extend the same for collection on the tax books in
comiection with other taxes levied in said years in and by the Village for general corporate
purposes of the Village; and, subject to abatement as stated hereinabove, 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 12. Sale of Bonds; Official Statement.
A. The Designated Officials are hereby authorized to proceed, not later than the
October 1, 2003, without any further authorization or direction from the Corporate Authorities, to
sell and deliver the Bonds upon the terms as prescribed in this Ordinance. The Bonds hereby
authorized shall be executed as in this Ordinance provided as soon after the delivery of the Bond
Order as may be, and thereupon be deposited with the Treasurer of the Village, and, after
authentication thereof by the Bond Registrar, be by said Treasurer delivered to the purchaser
thereof as set forth in the Bond Order (the "Purchaser"), upon receipt of the purchase price
therefor, the same being not less than 98% of the principal amount of the Bonds plus accrued
interest to date of delivery.
B. Upon the sale of the Bonds, the Designated Officials shall prepare the Bond
Order, which shall include the pertinent details of sale as provided herein. In the Bond Order, the
Designated Officials shall find and determine that the Bonds have been sold at such price and
bear interest at such rates that neither the true interest cost (yield) nor the net interest rate
received upon the sale of the Bonds exceed the maximum rate otherwise authorized by applicable
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law and that the sale of the Bonds as provided in the Bond Order and that the Refunding shall
result in a net present value debt service savings of not less than $400,000. The Bond Order shall
be entered into the records of the Village and made available to the Corporate Authorities at the
next regular meeting thereof; but such action shall be for information purposes only, and the
Corporate Authorities shall have no right or authority at such time to approve or reject such sale
as evidenced in the Bond Order.
C. Upon the sale of the Bonds, as evidenced by the execution and delivery of the
Bond Order by the Designated Officials; the. Mayor, Nillage Clerk and Treasurer and any other
officers of the Village, as shall be appropriate, shall be and are hereby authorized and directed to
approve or execute, or both, such documents of sale of the Bonds as may be necessary, including,
without limitation, the contract for the sale of the Bonds between the Village and the Purchaser
(the "Purchase Contract"). Prior to the execution and delivery of the Purchase Contract, the
Designated Officials shall find and determine that no person holding any office of the Village,
either by election or appointment, is in any manner financially interested directly in his or her
own name or indirectly in the name of any other person, association, trust or corporation, in the
Purchase Contract.
D. The use by the Purchaser of any Preliminary Official Statement (the "Preliminary
Official Statement") and any final Official Statement relating to the Bonds (the "Official
Statement") is hereby ratified, approved and authorized; the execution and delivery of the
Official Statement is hereby authorized; and the officers of the Corporate. Authorities are hereby
authorized to take any action as may be required on the part of the Village to consummate the
transactions contemplated by the Purchase Contract, this Ordinance, said Preliminary Official
Statement, the Official Statement and the Bonds.
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Section 13. Creation of Funds and Appropriations.
A. There is hereby created a "General Obligation Bond and Interest Sinking Fund
Account, Series 2003B" (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 first interest coming due
on the Bonds.
B. The Ad Valorem Property Taxes shall either be deposited into the Bond Fund and
used 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 Ad Valorem Property Taxes. Interest income or
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 Corporate Authorities, transferred to
such other fund as may be determined. The Village hereby pledges, as equal and ratable security
for the Bonds, all Band Moneys on deposit in the Bond Fund for the sole benefit of the registered
owners of the Bonds, subject to the reserved right of the Corporate Authorities 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 be retained by the Village Treasurer to pay such expenses. Any
disbursements for expenses shall be made from time to time as necessary. Any excess from the
money held for such purpose shall be deposited into the Bond Fund not more than six months
from the date of issuance of the Bonds, and the Expense Fund shall thereupon be closed.
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D. The amount necessary from the proceeds of the Bonds, together with such money in
the bond fund for the Refunded Bonds as may be advisable for the purpose, shall be used to
provide for the refunding of the Refunded Bonds, and the payment of such expenses as may be
designated, pursuant to the provisions of an Direction for Redemption with the Redemption and
Paying Agent as is designated, all in accordance with the provisions of the Direction for
Redemption, 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 Direction
for Redemption are hereby authorized and' directed to execute same, their execution to constitute
conclusive proof of action in accordance with this Ordinance, and approval of all completions or
revisions necessary or appropriate to effect such part of the Refunding.
E. The remaining proceeds of the Bonds shall be deposited into the General Obligation
Refunding Bonds, Series 2003B, Project Fund (the "Project Fund"), hereby created. Moneys in
such fund shall be withdrawn from time to time as needed for the payment of costs of the Project
and paying the fees and expenses incidental thereto not paid out of the Expense Fund, and for no
other purpose. The Corporate Authorities reserve the right, as it becomes necessary or advisable
from time to time, to revise the list of expenditures for the Project, 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 various covenants set forth in this Ordinance and in related
certificates given in connection with delivery of the Bonds.
F. Funds on deposit in the Project Fund may be invested by the Director of Finance of
the Village in any lawful manner. Investment earnings shall first be reserved and transferred to
such other account as and to the extent necessary to pay any "excess arbitrage profits" or "penalty
in lieu of rebate" under Code Section 148 to maintain the Tax-exempt status of the Bonds, and
the remainder shall be retained for costs of the Project. Within sixty (60) days after full depletion
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of the Project Fund, or if the Project is completed and all Project costs payable from the Fund
have been fully paid, the Director of Finance of the Village shall certify to the Corporate
Authorities the fact of such depletion or the Village engineer shall certify to such completion and
payment, and upon approval of such certification by the Corporate Authorities, moneys (if any)
which remain shall be transferred as directed by the Corporate Authorities, and such Fund shall
be closed.
G. Alternatively to the creation of any of the funds described above, except the deposit
to be made pursuant to the Direction for Redemption; the Director of Finance may allocate Bond
Moneys or the proceeds of the Bonds to one or more related funds of the Village already in
existence and in accordance with good accounting practice; provided, however, that this shall not
relieve the Director of Finance of the duty to account and invest for the Bond Moneys and the
proceeds of the Bonds as herein provided, as if such funds had in fact been created.
Section 14. Continuing Disclosure Undertaking. Any of the Designated Officials of the
Village is hereby authorized, empowered, and directed to execute and deliver the Continuing
Disclosure Undertaking (the "Continuing Disclosure Undertaking") in substantially the same
form as now before the Village as Exhibit B to this Ordinance or with such changes therein as the
officer executing the Continuing Disclosure Undertaking on behalf of the Village shall approve,
his or her execution thereof to constitute conclusive evidence of his or her approval of such
changes. When the Continuing Disclosure Undertaking is executed and delivered on behalf of the
Village as herein provided, the Continuing Disclosure Undertaking will be binding on the Village
and the officers, employees, and agents of the Village, and the officers, employees, and agents of
the Village are hereby authorized, empowered, and directed to do all such acts and things and to
execute all such documents as may be necessary to carry out and comply with the provisions of
the Continuing Disclosure Undertaking as executed. Notwithstanding any other provision of this
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Ordinance, the sole remedies for failure to comply with the Continuing Disclosure Undertaking
shall be the ability of the beneficial owner of any Bond to seek mandamus or specific
performance by court order to cause the Village to comply with its obligations under the
Continuing Disclosure Undertaking.
Section 15. General Tax Covenants. The Village hereby covenants that it will not take
any action, omit to take any action or permit the taking or omission of any action within its
control (including, without limitation, making or permitting any use of the proceeds of the
Bonds) if taking, permitting, or omitting to take sucluaction would cause any of the Bonds to be
an arbitrage bond or a private activity bond within the meaning of the Code or would otherwise
cause the interest on the Bonds to be included in the gross income of the recipients thereof for
federal income tax purposes. The.Village acknowledges that, in the event of an examination by
the Internal Revenue Service of the exemption from Federal income taxation for interest paid on
the Bonds, under present rules, the Village is treated as the "taxpayer" in such examination and
agrees that it will respond in a commercially reasonable manner to any inquiries from the Internal
Revenue Service in connection with such an examination. In furtherance of the foregoing
provisions, but without limiting their generality, the Village agrees: (a) through its officers, to
make such further specific covenants; representations as shall be truthful, and assurances as may
be necessary or advisable; (b) to comply with all representations, covenants, and assurances
contained in certificates or agreements as may be prepared by 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.
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Section 16. Certain Specific Tax Covenants.
A. None of the Bonds shall be and none of the Refunded Bonds or any bonds refunded
with proceeds of the Refunded Bonds (such bonds so refunded being the "Earlier Bonds ") was a
"private activity bond" as defined in Section 141(a) of the Code; and the Village certifies,
represents, and covenants as follows:
(1) Not more than 5% of the net proceeds and investment earnings of the Bonds
is to be used, and not more than 5% of the net proceeds of either the Refunded Bonds or
the Earlier Bonds was used directly or indirectly, in any activity carried on by any person
other than a state or local governmental unit.
(2) Not more than 5% of the amounts necessary to pay the principal of and
interest on the Bonds will be derived, directly or indirectly, from payments with respect to
any private business use by any person other than a state or local governmental unit.
(3) None of the proceeds of the Bonds is to be used and none of the proceeds of
either the Refunded Bonds or the Earlier Bonds was used directly or indirectly, to make
or finance loans to persons other than a state or local governmental unit.
(4) No user of the real or personal property of the Village acquired, constructed,
or improved with the proceeds of the Bonds or of either the Refunded Bonds or the
Earlier Bonds, 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 such property as a result of (i)
ownership or (ii) actual or beneficial use pursuant to a lease, a management or incentive
payment contract other than as expressly permitted by the Code, or (iii) any other
arrangement.
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B. The Bonds shall not be "arbitrage bonds" under Section 148 of the Code; and the
Village certifies, represents, and covenants as follows:
(1) With respect to the Project, 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 Project in not less than the amount of 5% of the
proceeds of the Bonds allocable to the Project.
(2) More than 85% of the proceeds of the Bonds allocable to the Project will be
expended on or before three years for the purpose of paying the costs of the Project.
(3) All of the principal proceeds of the Bonds allocable to the Project and
investment earnings thereon will be used, needed, and expended for the purpose of paying
the costs of the Project including expenses incidental thereto.
(4) Work on the Project is expected to proceed with due diligence to
completion.
(5) Proceeds of the Bonds allocable to the Refunding will be fully expended on
December 1. 2003.
(6) 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
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Bond Fund will be spent or withdrawn from the Bond Fund within a one-year period
beginning on the date of receipt.
(7) 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.
(8) 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 permitting such
certifications.
(9) Unless an applicable exception to Section 148(f) of the Code, relating to
the rebate of "excess arbitrage profits" to the United States Treasury (the "Rebate
Requirement") is available to the Village, the Village will meet the Rebate Requirement.
(10) Relating to other applicable exceptions, any Village officer charged with
issuing the Bonds is hereby authorized to make such elections under the Code as 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.
(11) 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 Refunding Bonds, Series 2003B 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
on
accrued liability under the Rebate Requirement or Penalty. Said officers shall cause to be
paid to the United States Treasury, without further order or direction from the Corporate
Authorities, from time to time as required, amounts sufficient to meet the Rebate
Requirement or to pay the Penalty. However, reference is made to paragraph (9) above.
(12) Interest earnings in the Project Fund and the Bond Fund are hereby
authorized to be transferred, without further order or direction from the Corporate
Authorities, 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.ofinvestment earnings as aforesaid and only as appropriated
by the Corporate Authorities.
C. None of the proceeds of the Bonds 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 Projector
expenditures for which an intent to reimburse it as properly declared under Treasury Regulations
Section 1.103-18. This Ordinance is in itself a declaration of official intent under Treasury
Regulations Section 1.103-18 as to all costs of the Project paid after the date hereof and prior to
issuance of the Bonds.
D. The Village reserves the right to use or invest moneys in connection with the Bonds
in any manner or to make changes in the Project list or to use the Village infrastructure acquired,
constructed, or improved as part of the Project in any manner, notwithstanding the
representations and covenants in Sections (15) and (16) herein, prorided it shall first have
received an opinion from an attorney or a firm of attorneys of nationally recognized standing in
matters pertaining to Tax-exempt bonds to the effect that use or investment of such moneys or
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the changes in or use of such infrastructure as contemplated will not result in loss or impairment
of Tax-exempt status for the Bonds.
Section 17. Rights and Duties of Bond Registrar. If requested by the Bond Registrar,
any officer of the Village is authorized to execute standard forms of agreements between the
Village and the Bond Registrar with respect to the obligations and duties of the Bond Registrar
hereunder. In addition to the terms of such agreements and subject to modification thereby, the
Bond Registrar by acceptance of duties hereunder agrees: (a) to act as bond registrar, paying
agent, authenticating agent, and transfer agent .as ,provided herein; (b) to maintain a list of
Bondholders as set forth herein and to furnish such list to the Village upon request, but otherwise
to keep such list confidential to the extent permitted by law; (c) to cancel and/or destroy Bonds
which have been paid at maturity or submitted for exchange or transfer; (d) to furnish the Village
at least annually a certificate with respect to Bonds cancelled and/or destroyed; and (e) to furnish
the Village at least annually an audit confirmation of Bonds paid, Bonds outstanding and
payments made with respect to interest on the Bonds. The Village covenants with respect to the
Bond Registrar and the Bond Registrar respectively further covenants and agrees as follows:
(A) The Village shall at all times retain a Bond Registrar with respect to the Bonds; it will
maintain at the designated office(s) of such Bond Registrar a place or places where Bonds may
be presented for payment, registration, transfer or exchange; and it will require that the Bond
Registrar properly maintain the Bond Register and perform the other duties and obligations
imposed upon it by this Ordinance in a manner consistent with the standards, customs and
practices of the municipal securities industry. (B) The Bond Registrar shall signify its acceptance
of the duties and obligations imposed upon it by this Ordinance by executing the certificate of
authentication on any Bond, and by such execution the Bond Registrar shall be deemed to have
certified to the Village that it has all requisite power to accept and has accepted such duties and
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obligations not only with respect to the Bond so authenticated but with respect to all the Bonds.
Any Bond Registrar shall be the agent of the Village and shall not be liable in connection with
the performance of its duties except for its own negligence or willful wrongdoing. Any Bond
Registrar shall, however, be responsible for any representation in its certificate of authentication
on Bonds. (C) The Village may remove the Bond Registrar at any time. In case at any time the
Bond Registrar shall resign, shall be removed, shall become incapable of acting, or shall be
adjudicated a bankrupt or insolvent, or if a receiver, liquidator, or conservator of the Bond
Registrar or of the property thereof -shall be appointed;;or if any public officer shall take charge or
control of the Bond Registrar or of the property or affairs thereof, the Village covenants and
agrees that it will thereupon appoint a successor Bond Registrar. The Village shall give notice of
any such appointment made by it to each registered owner of any Bond within twenty days after
such appointment in the same manner, or as nearly the same as may be practicable, as for a
redemption of Bonds. Any Bond Registrar appointed under the provisions of this Section shall
be either the Village officer entrusted with custody of the Village funds or a bank, trust company,
or national banking association maintaining its principal corporate trust office in Illinois or in the
Borough of Manhattan, New York, New York, and having capital and surplus and undivided
profits in excess of $100,000,000. The Village Clerk of the Village is hereby directed to file a
certified copy of this Ordinance with the Bond Registrar.
Section 18. Municipal Bond Insurance. In the event the payment of principal of and
interest on the Bonds is insured pursuant to a municipal bond insurance policy (a "Municipal
Bond Insurance Policy") issued by a bond insurer (a "Bond Insurer"), and as long as such
Municipal Bond Insurance Policy shall be in full force and effect, the Village and the Bond
Registrar agree to comply with such usual and reasonable provisions regarding presentment and
payment of the Bonds, subrogation of the rights of the Bondholders to the Bond Insurer when
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holding Bonds, amendment hereof, or other terms, as approved by any of the Designated
Officials on advice of counsel, his or her approval to constitute full and complete acceptance by
the Village of such terms and provisions under authority of this section.
Section 19. Taxes Previously Levied. The taxes previously levied to pay principal of
and interest on the Refunded Bonds for the years 2003 and subsequent, to the extent such
principal and interest is provided for from the proceeds of the Bonds or otherwise as hereinabove
described, shall be abated. The filing of a certificate of abatement with the County Clerks shall
constitute authority and direction for the County Clerks to make such abatement. The taxes so
levied for the Refunded Bonds for the years 2002 and preceding, which have been or are to be
collected, and subject to use of same as may be required by the Code in assuring the Tax-exempt
status of the Bonds, shall be applied , first, to the payment of the Refunded Bonds for which
collected, to the extent advisable, second, to the payment of the Bonds as due in calendar year
2004, to the extent available.
Section 20. Defeasance. Any Bond or Bonds which (a) are paid and cancelled,
(b) which have matured and for which sufficient sums been deposited with the Bond Registrar to
pay all principal and interest due thereon, or (c) for which sufficient funds and Defeasance
Obligations have been deposited with the Bond Registrar 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 receive or be paid from Bond Moneys
or the Bond Fund 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. For purposes of this section, 'Defeasance Obligolions" means
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(a) noncallable, non -redeemable, direct and general full faith and credit obligations of the United
States Treasury ( "Directs "), (b) certificates of participation or trust receipts in trusts comprised
wholly of Directs or (c) other noncallable, non -redeemable, obligations unconditionally
guaranteed as to timely payment to maturity by the United States Treasury.
Section 21. 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 Corporate
Authorities.
Section 22. Call of the Refunded Bonds. In accordance with the redemption provisions
of the Ordinance authorizing the issuance of the Refunded Bonds, the Corporate Authorities do
hereby make provision for the payment of and do hereby call (subject only to the delivery of the
Bonds) the Refunded Bonds as of December 1, 2003, as provided in the Direction for
Redemption.
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Section 23. 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.
ADOPTED: August 12, 2003
AYES: Trustees Dill, Feichter,Lissner, Petri, Prochno,,and
Czarnik
NAYS: None
ABSENT:
APPROVED: August 12, 2003
Craig B. Johnson
Mayor
Village of Elk Grove Village
Cook and DuPage Counties,.Illinois
Published in pamphlet form by authority of the President and Board of Trustees on
August 15.E 2003.
ATTEST:
Ann I. Walsh
Village Clerk
Village of Elk Grove Village
Cook and DuPage Counties, Illinois
STA
• EXHIBIT A 0
DIRECTION FOR REDEMPTION
This Direction for Redemption, executed and delivered the date last hereinbelow written,
by the Village of Elk Grove Village, Cook and DuPage Counties, Illinois, to Bank One, National
Association, Chicago, Illinois, a national banking association, having trust powers, with trust
offices located in the City of Chicago, Illinois, as successor to American National Bank and Trust
Company of Chicago.
WITNESSETH:
ARTICLE I. DEFINITIONS
The following words and terms used in this Direction shall have the following meanings
unless the context or use clearly indicates another or different meaning.
"Direction" means this Direction for Redemption.
"Bond Ordinance " means an ordinance passed by the President and Board of Trustees of
the Village on August 12, 2003, entitled:
AN ORDINANCE providing for the issuance of not to exceed
$7,850,000 General Obligation Refunding Bonds, Series 2003B, of
the Village of Elk Grove Village, Cook and DuPage Counties,
Illinois, and providing for the levy and collection of a direct annual
tax sufficient for the payment of the principal of and interest on
said bonds.
authorizing the Bonds.
"Bonds" means the General Obligation Refunding Bonds, Series 2003B, of the Village,
dated September 1, 2003, a part of the proceeds of which are to be used for the refunding of the
Refunded Bonds.
"Call Date " means, with respect to the Refunded Bonds, December 1, 2003.
"Government Obligations" means direct obligations of the United States of America
(being United States Bills, Notes, Bonds or STRPS or SLGS).
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"Paying Agent" means the paying agent and bond registrar for the Refunded Bonds,
namely, Bank One, National Association, Chicago, Illinois.
"Refunded Bonds" means the portions of the bonds described as follows:
GENERAL OBLIGATION BONDS
SERIES 1993, DATED NOVEMBER 1, 1993
Original Principal Amount: $10,000,000
Originally Due Serially on
December 1 in the Years: 1994 to 2012
Amount Remaining Outstanding: $7,210,000
Amount To Be Refunded: $7,140,000
DECEMBERI
OF THE YEAR
2003
REMAINING OUTSTANDING BONDS AND BONDS TO
BE REFUNDED DUE AND DESCRIBED AS FOLLOWS:
AMOUNT ($)
70,000
RATE OF
INTEREST (%)
4.20
AMOUNT TO BE
REFUNDED
None
2004
410,000
4.30
All
2005
625,000
4.40
All
2006
650,000
4.50
All
2007
1,545,000
4.65
All
2008
710,000
4.75
Al
2009
740,000
5.00
All
2010
780,000
5.00
All
2011
820,000
5.00
All
2012
860,000
5.00
All
which bonds are subject to redemption on the Call Date at the redemption price of par plus
accrued interest.
"Village" means the Village of Elk Grove Village, Cook and DuPage Counties, Illinois.
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ARTICLE II. INTRODUCTORY STATEMENT
2.01. The Refunded Bonds are to be refunded as to all interest, principal and redemption
price from the date hereof until redeemed and paid by the deposit with the Paying Agent of
moneys sufficient to pay when due and as called for redemption all principal of and interest on
and redemption price of the Refunded Bonds.
2.02. The Village has deposited with the Paying Agent the sum of $
ARTICLE III. DIRECTION TO PAYING AGENT
3.01. The Paying Agent will hold the deposits made under this Direction 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, all to the purposes for which deposited.
3.02. The amount deposited shall be invested at the direction of the Village Director of
Finance to the fullest extent possible in Government Obligations maturing not later than the Call
Date.
3.03. The Paying Agent shall hold all balances not invested or reinvested as hereinabove
described 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 Paying Agent will apply the amounts deposited promptly to pay when due and
as called for redemption all principal of and interest on and redemption price of the Refunded
Bonds.
3.05. The Refunded Bonds are called for redemption on the Call Date at the redemption
price of par and accrued interest to the date of redemption.
The Paying Agent shall give notice of redemption. The time, manner and form of the
giving of the notice of redemption shall be as specified in Ordinance Number 2332 of the
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Village, by which the Refunded Bonds were authorized, a copy of which has been delivered to
the Paying Agent. The Paying Agent has given or shall give such further notices of redemption
as may be required by any applicable rule of a depository company, including The Depository
Trust Company, 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.
ARTICLE IV. FINAL DISPOSITION
Upon the final disbursement for the payment of the Refunded Bonds as hereinabove
provided for, the Paying Agent will transfer any balance remaining to the Village Director of
Finance, accompanied by a letter of information indicating that such amounts should be
deposited into the "Bond Fund" created under the Bond Ordinance.
[This space intentionally blank.]
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IN WITNESS WHEREOF the Village has caused this Direction to be signed in its name by
its Mayor, to be attested by the Village Clerk under its corporate seal hereunto affixed; and the
Paying Agent, not individually, but in its capacity as paying agent and bond registrar as
described, has acknowledged receipt of this Direction in its corporate name by one of its
and as attested by one of its
under its corporate seal hereunto affixed, all this day of 2003.
ATTEST:
Village Clerk
[SEAL]
Its
[BANK SEAL]
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VILLAGE OF ELK GROVE VILLAGE
COOK AND DUPAGE COUNTIES,
ILLINOIS
Mayor
BANK ONE, NATIONAL ASSOCIATION
By
Its
0 EXHIBIT B •
CONTINUING DISCLOSURE UNDERTAKING
FOR THE PURPOSE OF PROVIDING
CONTINUING DISCLOSURE INFORMATION
UNDER SECTION (b)(5) OF RULE 15c2-12
This Continuing Disclosure Undertaking (this "Undertaking") is executed and delivered
by the Village of Elk Grove Village, Cook and DuPage Counties, Illinois (the "Village"), in
connection with the issuance of $ General Obligation Refunding Bonds,
Series 2003B (the "Bonds"). The Bonds are being issued pursuant to an ordinance (the
"Ordinance"), adopted by the President and Board of Trustees of the Village on the 12th day of
August 2003.
In consideration of the issuance of the Bonds by the Village and the purchase of such
Bonds by the beneficial owners thereof, the Village covenants and agrees as follows:
1. PURPOSE OF THIS UNDERTAKING. This Undertaking is executed and delivered by
the Village as of the date set forth below, for the benefit of the beneficial owners of the Bonds
and in order to assist the Participating Underwriters in complying with the requirements of the
Rule (as defined below). The Village represents that it will be the only obligated person with
respect to the Bonds at the time the Bonds are delivered to the Participating Underwriters and
that no other person is expected to become so committed at any time after issuance of the Bonds.
2. DEFINITIONS. The terms set forth below shall have the following meanings in this
Undertaking, unless the context clearly otherwise requires.
Annual Financial Information means the financial information and operating data
described in Exhibit L
Annual Financial Information Disclosure means the dissemination. of disclosure
concerning Annual Financial Information and the dissemination of the Audited Financial
Statements as set forth in Section 4.
Audited Financial Statements means the audited financial statements of the Village
prepared pursuant to the standards and as described in Exhibit 1.
Commission means the Securities and Exchange Commission.
Dissemination Agent means any agent designated as such in writing by the Village and
which has filed with the Village a written acceptance of such designation, and such agent's
successors and assigns.
Exchange Act means the Securities Exchange Act of 1934, as amended.
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Material Event means the occurrence of any of the Events with respect to the Bonds set
forth in Exhibit II that is material, as materiality is interpreted under the Exchange Act.
Material Events Disclosure means dissemination of a notice of a Material Event as set
forth in Section 5.
MSRB means the Municipal Securities Rulemaking Board.
NRMSIRs means, as of any date, all Nationally Recognized Municipal Securities
Information Repositories then recognized by the Securities and Exchange Commission for
purposes of the Rule. As of the date of this Undertaking, the NRMSIRs are:
Bloomberg Municipal Repositories
100 Business Park Drive
Skillman, NJ 08558
Phone: (609)279-3225
Fax: (609)279-5962
E -Mail: Munis@Bloomberg.com
DPC Data Inc.
One Executive Drive
Fort Lee, NJ 07024
Phone: (201) 346-0701
Fax: (201)947-0107
E -Mail: nrmsir@dpcdata.com
FT Interactive Data
Attn: NRMSIR
100 Williams Street
New York, NY 10038
Phone: (212)771-6999
Fax: (212) 771-7390 (Secondary Market Information)
(212) 771-7391 (Primary Market Information)
E -Mail: NRMSIR@FTID.com
Standard & Poor's J. J. Kenny Repository
55 Water Street
45th Floor
New York, NY 10041
Phone: (212) 438-4595
Fax: (212)438-3975
E -Mail: nrmsir_repository@sandp.com
The names and addresses of all current NRMSIRs should be verified each time information is
delivered pursuant to this Undertaking.
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Participating Underwriter means each broker, dealer or municipal securities dealer acting
as an underwriter in the primary offering of the Bonds.
Rule means Rule 15c2-12 adopted by the Securities and Exchange Commission under the
Exchange Act, as the same may be amended from time to time.
SID means any public or private repository designated by the State as the state repository
and recognized as such by the Securities and Exchange Commission for purposes of the Rule. As
of the date of this Undertaking there is no SID.
3. CUSIP NUMBER/FINAL OFFICIAL STATEMENT.
The CUSIP Numbers of the Bonds are as follows:
YEAR OF CUSIP
MATURITY NUMBER
2005
287299
2006
287299 _
2007
287299
2008
287299
2009
287299
2010
287299
2011
287299
2012
287299
2013
287299
The Final Official Statement relating to the Bonds is dated
Official Statement").
2003 (the "Final
4. ANNUAL FINANCIAL INFORMATION DISCLOSURE. Subject to Section 9 of this
Undertaking, the Village hereby covenants that it will disseminate its Annual Financial
Information and its Audited Financial Statements (in the form and by the dates set forth in
Exhibit I) to each NRMSIR and to the SID, if any. The Village is required to deliver such
information in such manner and by such time so that such entities receive the information by the
dates specified. If any part of the Annual Financial Information can no longer be generated
because the operations to which it is related have been materially changed or discontinued, the
Village will disseminate a statement to such effect as part of its Annual Financial Information for
the year in which such event first occurs. If any amendment is made to this Undertaking, the
Annual Financial Information for the year in which such amendment is made (or in any notice or
supplement provided to each NRMSIR and the SID, if any) shall contain a narrative description
of the reasons for such amendment and its impact on the type of information being provided.
5. EVENTS NOTIFICATION; MATERIAL EVENTS DISCLOSURE. Subject to Section 9 of
this Undertaking, the Village hereby covenants that it will disseminate in a timely manner
Material Events Disclosure to each NRMSIR or to the MSRB and to the SID, if any.
-3-
Notwithstanding the foregoing, notice of optional or unscheduled redemption of any Bonds or
defeasance of any Bonds need not be given under this Undertaking any earlier than the notice (if
any) of such redemption or defeasance is given to the Bondholders pursuant to the Ordinance.
6. DUTY TO UPDATE NRMSIRs/SID. The Village shall determine, in the manner it
deems appropriate, the names and addresses of the then existing NRMSIRs and SID each time it
is required to file information with such entities.
7. CONSEQUENCES OF FAILURE OF THE VILLAGE TO PROVIDE INFORMATION. The
Village shall give notice in a timely manner to each NRMSIR or to the MSRB and to the SID, if
any, of any failure to provide Annual Financial Information Disclosure when the same is due
hereunder. In the event of a failure of the Village to comply with any provision of this
Undertaking, the beneficial owner of any Bond may seek mandamus or specific performance by
court order, to cause the Village to comply with its obligations under this Undertaking. A default
under this Undertaking shall not be deemed a default under the Ordinance, and the sole remedy
under this Undertaking in the event of any failure of the Village to comply with this Undertaking
shall be an action to compel performance.
8. AMENDMENTS; WAIVER. Notwithstanding any other provision of this Undertaking,
the Village by ordinance authorizing such amendment or waiver, may amend this Undertaking,
and any provision of this Undertaking may be waived, if. (a) the amendment or waiver is made
in connection ,with a change in circumstances that arises from a change in legal requirements,
change in law, or change in the identity, nature, or status of the Village, or type of business
conducted; (b) this Undertaking, as amended, or the provision, as waived, would have complied
with the requirements of the Rule at the time of the primary offering, after taking into account
any amendments or interpretations of the Rule, as well as any change in circumstances; and
(c) the amendment or waiver does not materially impair the interests of the beneficial owners of
the Bonds, as determined by parties unaffiliated with the Village (such as Bond Counsel).
9. TERMINATION OF UNDERTAKING. The Undertaking of the Village shall be
terminated hereunder if the Village shall no longer have any legal liability for any obligation on
or relating to payment of the Bonds under the Ordinance- The Village shall give notice in a
timely manner if this Section is applicable to each NRMSIR or to the MSRB and to the SID, if
any.
10. DISSEMINATION AGENT. The Village may, from time to time, appoint or engage a
Dissemination Agent to assist it in carrying out its obligations under this Undertaking and may
discharge any such Agent, with or without appointing a successor Dissemination Agent.
11. ADDITIONAL INFORMATION. Nothing in this Undertaking shall be deemed to
prevent the Village from disseminating any other information, using the means of dissemination
set forth in this Undertaking or any other means of communication, or including any other
information in any Annual Financial Information Disclosure or notice of occurrence of a Material
Event, in addition to that which is required by this Undertaking. If the Village chooses to include
any information from any document or notice of occurrence of a Material Event in addition to
that which is specifically required by this Undertaking, the Village shall have no obligation under
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this Undertaking to update such information or include it in any future disclosure or notice of
occurrence of a Material Event.
12. BENEFICIARIES. This Undertaking has been executed in order to assist the
Participating Underwriters in complying with the Rule; however, this Undertaking shall inure
solely to the benefit of the Village, the Dissemination Agent, if any, and the beneficial owners of
the Bonds, and shall create no rights in any other person or entity.
13. RECORDKEEPING. The Village shall maintain records of all Annual Financial
Information Disclosure and Material Events Disclosure including the content of Such disclosure,
the names of the entities with whom such disclosure was filed and the date of filing such
disclosure.
14. ASSIGNMENT. The Village shall not transfer its obligations under the Ordinance
unless the transferee agrees to assume all obligations of the Village under this Undertaking or to
execute an Undertaking under the Rule.
15. GOVERNING LAW. This Undertaking shall be governed by the laws of the State of
Illinois.
Date: '2003
-5-
VILLAGE OF ELK GROVE VILLAGE
COOK AND DUPAGE COUNTIES,
ILLINOIS
Mayor
Address: 901 Wellington Avenue
Elk Grove Village, Illinois 60007
EXHIBIT I
ANNUAL FINANCIAL INFORMATION AND TIMING AND AUDITED
FINANCIAL STATEMENTS
Annual Financial Information means the financial information and operating data of the
type contained in the Official Statement as follows:
Under the caption "FINANCIAL INFORMATION" under the subcaptions "EAV
Trend," "Composition of EAV," "Tax Rate Trend" and "Tax Extension and Collections,"
all to the extent not set forth in the audited financial statements.
Information by Reference. All or a portion of the Annual Financial Information and the
Audited Financial Statements as set forth below may be included by reference to other
documents which have been submitted to each NRMSIR and to the SID, if any, or tiled with the
Commission. If the information included by reference is contained in a Final Official Statement,
the Final Official Statement must be available from the MSRB; the Final Official Statement need
not be available from each NRMSIR, the SID, if any, or the Commission. The Village shall
clearly identify each such item of information included by reference.
Time for Providing. Annual Financial Information will be provided to each NRMSIR
and to the SID, if any, by 210 days after the last day of the Village's fiscal year. Audited
Financial Statements as described below should be filed at the same time as the Annual Financial
Information. If Audited Financial Statements are not available when the Annual Financial
Information is filed, unaudited financial statements shall be included.
Preparation of Audited Financial Statements. Audited Financial Statements will be
prepared according to Generally Accepted Accounting Principles as they are currently
promulgated; it is anticipated but not covenanted that there will be compliance with all future
changes with Generally Accepted Accounting Principles. Audited Financial Statements will be
provided to each NRMSIR and to the SID, if any, at the time of providing the Annual Financial
Information or, if unavailable at such time, then within 30 days after availability to the Village.
Annual Financial Information Changes. If any change is made to the Annual Financial
Information as permitted by Section 4 of the Undertaking, the Village will disseminate a notice
of such change as required by Section 4.
EXHIBIT I
EXHIBIT II
EVENTS FOR WHICH MATERIAL EVENTS DISCLOSURE IS REQUWED
1. Principal and interest payment delinquencies
2. Non-payment related defaults
3. Unscheduled draws on debt service reserves reflecting financial difficulties
4. Unscheduled draws on credit enhancements reflecting financial difficulties
5. Substitution of credit or liquidity providers, or their failure to perform
6. Adverse tax opinions or events affecting the tax-exempt status of the security
7. Modifications to the rights of security holders
8. Bond calls
9. Defeasances
10. Release, substitution or sale of property securing repayment of the securities
11. Rating changes
Note: Some of the foregoing events may not be applicable to the Bonds.
EXHIBIT II
STATE OF ILLINOIS )
) SS
COUNTY OF COOK )
BOND ORDER
We, Craig B. Johnson, Mayor; Ann I. Walsh, Village Clerk; and Hilda H. Ingebrigtsen,
Director of Finance and Treasurer; do hereby certify that we are, respectively, the officers so
indicated of the Village of Elk Grove Village, Cook and DuPage Counties, Illinois (the
"Village "); and as such officers, we have reviewed the books, records, minutes and files of the
Village, and from such review and based on our authority, we do further certify as follows:
1. On August 12, 2003, the Mayor and Board of Trustees of the Village
adopted the following ordinance, numbered 2946, and entitled as follows:
AN ORDINANCE providing for the issuance of not to exceed
$7,850,000 General Obligation Refunding Bonds, Series 2003B, of
the Village of Elk Grove Village, Cook and DuPage Counties,
Illinois, and providing for the levy and collection of a direct annual
tax sufficient for the payment of the principal of and interest on
said bonds.
(the "Bond Ordinance')
2. The Bond Ordinance, in accordance with delegated limits, authorizes us to
establish a final maturity and rate schedule for the General Obligation Refunding Bonds,
Series 2003B (the `Bonds'), to calculate the tax levy for the Bonds, and to advise the County
Clerks of the determinations so made.
3. Please be advised that responsive to the authority contained in the Bond
Ordinance, a contract for the purchase of the Bonds in the face amount of $7,660,000 was
awarded by us to Legg Mason Wood Walker Incorporated,. Chicago, Illinois (the- '.Purchaser"),
at a price of $7,750,078.65 (being par plus a reoffering premium of $143,698.65, net
underwriters discount of $53,620) plus accrued interest to the proposed date of delivery on
September 18, 2003, of $12,147.92. It is hereby found and determined that said price is 101.17%
of the par value of the principal amount of the Bonds.
4. The net interest cost rate on the Bonds does not exceed 6.00%. The net
present value debt service savings from the Refunding (as defined in the Bond Ordinance) is
$437,147.67, which amount is not less than $400,000, as required in the Bond Ordinance.
bond order and cert.doc
2106029 o P10 o 12/1/03
5. The terms of the Bonds are fair and reasonable in view of current
conditions in the bond market.
6. The details of the Bonds are as follows:
Dated: September 1, 2003. First Interest Payment Date: December 1, 2003.
Aggregate Principal Amount: $7,660,000.00
Due serially on December 1 of the years and in the amounts and bearing interest at the
rates per cent per annum as follows:
YEAR AMOUNT ($) RATE (%) YEAR AMOUNT ($) RATE (%)
2003
115,000
3.00
2008
750,000
3.25
2004
495,000
3.00
2009
770,000
3.50
2005
705,000
2.75
2010
800,000
4.00
2006
725,000
2.50
2011
830,000
4.00
2007
1,605,000
3.00
2012
865,000
4.25
7. The levy amounts to be provided to pay principal of and interest on the
Bonds are as follows:
FOR THE YEAR
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
E
A TAX SUFFICIENT TO PRODUCE THE DOLLAR SUM OF:
Not
Principal and interest up to and including
Applicable
December 1, 2003 will be paid from the 2002 levy
for the Refunded Bonds
748,800.00
for principal and interest
943,950.00
for principal and interest
944,562.50
for principal and interest
1,806,437.50
for principal and interest
903,287.50
for principal and interest
898,912.50
for principal and interest
901,962.50
for principal and interest
899,962.50
for principal and interest
901,762.50
for principal and interest
All other terms are as provided in the Bond Ordinance.
9. Please be further advised that we find and determine that no person
holding any office of the Village either by election or appointment, is in any manner financially
interested, either directly in his own name or indirectly, in the name of any other person,
association, trust or corporation, in the bond purchase contract with the Purchaser.
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10. Finally, please be advised that this Bond Order shall be entered into the
records of the Village and made available to all Trustees at the next regular meeting of the Mayor
and Board of Trustees.
IN WITNESS WHEREOF we have hereunto affixed our official signatures this 19th day of
August 2003.
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Craig B. Johnson, Mayor
Ann I. Walsh, Village Clerk
Hilda H.Ingebrigtsen,
Director of Finance and Treasurer
STATE OF ILLINOIS )
SS
COUNTY OF COOK )
0
CERTIFICATE OF TAX ABATEMENT
TO THE COUNTY CLERK OF THE COUNTY OF DUPAGE, ILLINOIS, GREETINGS:
We, the undersigned, being the duly qualified and acting Village Treasurer and Director
of Finance and the Village Clerk of the Village of Elk Grove Village, Cook and DuPage
Counties, Illinois (the "Village'), do hereby certify and notify you as follows:
1. The Village has issued the following bonds (the "Original Bonds'), which have
been refunded as follows:
GENERAL OBLIGATION BONDS
SERIES 1993, DATED NOVEMBER 1, 1993
Original Principal Amount: $10,000,000
Originally Due Serially on
December 1 in the Years: 1994 to 2012
Amount Remaining Outstanding: $7,210,000
Amount To Be Refunded: $7,140,000
DECEMBER]
OF THE YEAR
2003
REMAINING OUTSTANDING BONDS AND BONDS TO
BE REFUNDED DUE AND DESCRIBED AS FOLLOWS:
AMOUNT ($)
70,000
RATE OF
INTEREST (%)
4.20
AMOUNT TO BE
REFUNDED
None
2004
410,000
4.30
All
2005
625,000
4.40
All
2006
650,000
4.50
All
2007
1,545,000
4.65
All
2008
710,000
4.75
Al
2009
740,000
5.00
All
2010
780,000
5.00
All
2011
820,000
5.00
All
2012
860,000
5.00
All
u
E
which bonds due 2004-2012, inclusive (the "Refunded Bonds'), are subject to redemption prior
to maturity at the option of the Village, on any date on or after December 1, 2003, at the
redemption price of par and accrued interest.
2. Pertinent information regarding the Original Bonds is as follows:
ORIGINAL
VILLAGE
BONDS
ORDINANCE ADOPTED
SERIES
NUMBER ON DATE
1993
2332 October 26, 1993
FILED IN
COOK
COUNTY
November 1, 1993
FILED IN
DUPAGE
COUNTY
November 1, 1993
3. In the ordinance providing for the Original Bonds, the Village levied taxes to pay
the Original Bonds (the "Tax Levies "). The Tax Levies as currently on file in your office are
stated correctly in Exhibits A-1 attached hereto and made a part hereof by this reference.
4. The Village has issued its General Obligation Refunding Bonds, Series 2003B (the
"Series 2003B Bonds"), a portion of the proceeds of which has been or will be used to refimd
and pay the interest on and principal of (and call premium if any on) the Original Bonds. The
refunding results in all remaining debt service for the Original Bonds being provided for at this
time from other sources, and accordingly the Tax Levies may be fully abated.
5. Accordingly you are hereby notified to make a full abatement of the Tax Levies as
shown and set forth on Exhibits A -L
-2-
EXHIBIT AA
GENERAL OBLIGATION
BONDS, SERIES 1993
CURRENT
REMAINING
LEVY YEAR
LEVY ($)
TO BE ABATED ($)
LEVY ($)
2003
749,947.50
749,947.50
-0-
2004
947,317.50
947,317.50
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2005
944,817.50
944,817.50
-0-
2006
1,810,567.50
1,810,567.50
-0-
2007
903,725.00
903,725.00
-0-
2008
900,000.00
900,000.00
-0-
2009
903,000.00
903,000.00
-0-
2010
904,000.00
904,000.00
-0-
2011
903,000.00
903,000.00
-0-
IN WITNESS WHEREOF we hereunto affix our official signatures under the seal of the
Village this I Sth day of September 2003.
ATTEST:
Ann I. Walsh
Village Cleric
Village of Elk Grove Village
Cook and DuPage Counties, Illinois
[SEAL]
-3-
�Ili/Aa.Ingebrigtsen
Village Treasurer and Director of Finance
Village of Elk Grove Village
Cook and DuPage Counties, Illinois