HomeMy WebLinkAboutRes 2000-25RESOLUTION NO.2000-25
RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF$3,700,000
AGGREGATE PRINCIPAL AMOUNT OF GENERAL OBLIGATION BONDS,
PROJECT OF1999,SERIES B(2000);PROVIDING FOR THE ANNUAL LEVY OF A
TAX FOR THE PAYMENT OF THE BONDS;ACCEPTING A PROPOSAL FOR THE
PURCHASE OF THE BONDS;APPROVING THE FORM AND AUTHORIZING THE
EXECUTION OF AN AGREEMENT FOR THE SERVICES OFABOND REGISTRAR,
TRANSFER AGENT AND PAYING AGENT;DEEMING THE PRELIMINARY
OFFICIAL STATEMENT FINAL FOR PURPOSES OF SECURITIES AND EXCHANGE
COMMISSION RULE 15C2-12;AUTHORIZING THE PREPARATION AND
DISTRIBUTION OF A FINAL OFFICIAL STATEMENT IN CONNECTION WITH THE
ISSUANCE AND SALE OF THE BONDS HEREIN AUTHORIZED;RATIFYING THE
ACTIONS OF TOWN OFFICERS AND AGENTS CONCERNING THE BONDS;AUTHO
RIZING THE EXECUTION OFA CONTINUING DISCLOSURE UNDERTAKING;
PROVIDING CERTAIN TERMS,COVENANTS AND PROVISIONS REGARDING THE
BONDS;AND DECLARING AN EMERGENCY.
WHEREAS,pursuant toa special bond election held inandforthe Town of
Fountain Hills,Arizona (the "Town"),onMay 18,1999,theissuance of General Obligation Bonds
hasbeen approved;and
WHEREAS,the Town now desires to issue and sell $3,700,000 of its General
(Obligation Bonds,Project of 1999,Series B (2000)(the "Bonds"),for the purposes and according
^to the terms as set forth in this resolution;and
WHEREAS,allacts,conditions andthings required bythe Constitution andlaws
oftheStateof Arizona tohappen,existandbe performed precedenttoandinthe adoption ofthis
resolutionhavehappened,existandhavebeenperformedassorequiredinordertomakethis
resolutionavalidand binding instrument forthe security of the Bonds authorized herein;
NOW,THEREFORE,IT IS RESOLVED BY THE MAYOR AND COUNCIL
OF THE TOWN OF FOUNTAIN HILLS,ARIZONA,AS FOLLOWS:
Section 1.Authorization.For the purpose of providing fundstomakecertain
of thelibraryand museum improvements authorized bythe qualified electors of theTownatthe
specialbondelectionheldon May 18,1999,thereis hereby authorized tobeissuedandsold
$3,700,000aggregateprincipalamount of theBonds.Bondproceedswillbeusedtocompletethe
improvements approvedin Question 1ontheMay 18,1999 ballot forlibraryandmuseum
improvements.
Section 2.Terms.The Bonds hereby authorized tobe issued shall be
designatedTown of Fountain Hills,ArizonaGeneral Obligation Bonds,Project of 1999,SeriesB
(2000).The Bonds shall be dated as of June 1,2000 and will bear interest fromthe most recent
January 1orJuly1to which interest hasbeenpaid,orinthecase of the interest due January 1,
(2001,fromtheiroriginaldateddate,tothe maturity of each of theBonds.Thefirstinterest
^^payment date will be January 1,2001,and interest shall be payable semiannually thereafter on
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each succeeding July1and January 1 during theterm of the Bonds.The Bonds willbeinthe
denomination of $5,000eachorintegralmultiples thereof andwillbeinfullyregistered form.
The Bonds will mature on July 1intheyearsand amounts andshall bear interest attheratesas
follows:
Maturity
Date
(July 1)
Principal
Amount
Interest
Rate
Maturity
Date
(July 1)
Principal
Amount
Interest
Rate
2001 $150,000 7.00%2008 $275,000 5.25%
2002 200,000 7.10%2009 275,000 5.25%
2003 200,000 7.10%2010 300,000 5.30%
2004 200,000 5.50%2011 325,000 5.40%
2005 225,000 5.10%2012 325,000 5.50%
2006 250,000 5.15%2013 350,000 5.50%
2007 250,000 5.20%2014 375,000 5.50%
The principal of and premium,if any,onthe Bonds shallbepayable,whendue,
uponsurrender of suchBond,atthedesignatedcorporatetrustoffice of theRegistrarandPaying
Agent (as hereinafter defined).Interest onthe Bonds shall be payable bycheck,dated as of the
interestpaymentdate,mailedatorpriortoeachinterest payment datetotheregisteredowner
thereof as shown onthe registration books forthe Bonds maintained bythe Registrar atthe
address appearing therein atthe close of business onthe fifteenth day of a calendar month
preceding aninterest payment date(the "Record Date").Upon written request madeatleast
twenty (20)days prior toan interest payment datebya registered owner of at least $1,000,000 in
principalamount of Bonds outstanding oronany Bonds held byasecuritiesdepository,all
payments of interestand,if adequate provision for surrender is made,principal and premium,if
any,shallbe paid bywire transfer in immediately available funds toan account within the United
States of America designated bysuch registered owner.
The Bonds have such additional terms and provisions asaresetforthintheform of
Bond attachedheretoas Exhibit A.which isa part of this resolution.
Section 3,Prior Redemption.
A.Redemption.Bonds maturing onor before July1,2008,arenotsubjectto
callforredemptionpriortomaturity.BondsmaturingonorafterJuly1,2009,aresubjecttocall
for redemption priorto maturity,attheoption of theTown,in whole orinpart,onJuly1,2008,or
onanyinterestpaymentdate thereafter bythepayment of a redemption priceequaltotheprincipal
amount of each Bond called for redemption plus accrued interest tothedate fixed for redemption
plusapremiumpayablefromanysourceslawfullyavailabletherefor,thepremium(calculatedasa
percentage of theprincipalamount of suchBondstoberedeemed)tobecomputedasfollows:
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Redemption Dates Premium
July 1,2008 2.0%
January 1,2009 1.5%
July 1,2009 1.0%
January 1,2010 0.5%
July1,2010,andthereafterwithoutpremium.
B.Notice.Noticeof redemption ofanyBondwillbemailedby first class
mail,postageprepaid,tothe registered owner thereof attheaddressshownonthebooks of the
Registrar not more than sixty (60)nor less than thirty (30)days prior to the date set for redemp
tion.Failure to properly give notice of redemption shall not affect the redemption ofany Bond for
whichnoticewasproperlygiven.
C.Effectof Call for Redemption.Onthedate designated for redemption by
noticegivenashereinprovided,theBondssocalledforredemptionshallbecomeandbedueand
payableattheredemptionpriceprovidedforredemption of suchBondsonsuchdate,and,if
moneys for payment ofthe redemption priceareheldin separate accounts bythe Paying Agent,
interest onsuchBondsorportionsofBondssocalledfor redemption shallceaseto accrue,such
Bondsshallceasetobeentitledtoanybenefitorsecurity hereunder andtheowners of suchBonds
shall have no rights in respect thereof except to receive payment ofthe redemption pricethereof
andsuchBondsshallbedeemedpaidandnolongeroutstanding.
D.Redemption of LessThanAll of aBond.TheTownmayredeemanamount
whichisincludedinaBondinthe denomination inexcessof,butdivisibleby,$5,000.Inthat
event,the registered ownershall submit theBondforpartial redemption andthe Paying Agent
shallmakesuchpartialpaymentandtheRegistrarshallcausetobeissuedanewBondina
principalamountwhichreflectstheredemptionsomadetobeauthenticatedanddeliveredtothe
registered owner thereof.
Section 4.Security.Forthepurpose of payingthe principal of,interestand
premium (if any)onearly redemption andcostsof administration ofthe registration and payment
oftheBondsthereshallbeleviedonallthe taxable propertyintheTowna continuing,direct,
annual,advaloremtaxsufficienttopayallsuchprincipal,interest,premiumand administration
costs onthe Bonds as the same becomes due,such taxes tobe levied,assessed and collected atthe
sametimeandinthesamemannerasothertaxesare levied,assessed and collected.The proceeds
of thetaxesshallbekeptinaspecialfundandshallbeusedonlyforthepurposeforwhich
collected.
Section 5.Form of Bonds.TheBondsshallbein substantially theform of
Exhibit A.attachedheretoandincorporatedbyreferenceherein,withsuchnecessaryand
appropriateomissions,insertionsandvariationsasarepermittedorrequiredherebyandare
approvedby those officers executing the Bonds and execution thereof bysuch officers shall
constituteconclusive evidence of suchapproval.
The Bonds may have notations,legendsor endorsements required bylaw,securities
exchangeruleorusage.EachBondshallbedatedthedate of itsauthenticationandregistration.
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Section 6.Use of Proceeds.The proceeds fromthesale of the Bonds shall be
setasideanddepositedbythe Accounting Supervisor intoa separate accountandusedforthe
libraryandmuseum improvement purposes setforthin Question 1ontheballot.TheseBondswill
bechargedagainsttheTown's6%debtlimit(Article9,Section8,ArizonaConstitution).The
moneysforthispurposeasstatedaboveshallbeappliedandusedsolelyforsuchpurpose.
Section 7.Execution of Bonds.The Bonds shall be executed for and on behalf
of theTownbytheMayorandattestedbytheTownClerkbytheirmanualorfacsimilesignatures
andtheTownsealwillbeeitherphotographically,mechanicallyreproducedormanually
imprintedoraffixedontheBonds.If thesignaturesareaffixedorimprintedbyfacsimile,the
Mayor and Town Clerk shall execute a certificate adopting as their signatures the facsimile
signaturesappearingontheBonds.
If an officer whose signature isona Bond no longer holdsthatofficeatthetimethe
Bondis authenticated and registered,theBondshall nevertheless bevalid.
ABondshallnotbevalidorbindinguntil authenticated bythemanualsignature of
an authorized officer of the Registrar.The signature shall be conclusive evidence that the Bond
has been authenticated and issued under this resolution.
Section 8.Mutilated.Lost or Destroyed Bonds.Incaseany Bond becomes
mutilated or destroyed orlost,the Town shall cause tobe executed and delivered a new Bond of
likedateandtenorin exchange and substitution forand upon the cancellation of such mutilated
Bond orinlieu of andin substitution forsuch Bond destroyed orlost,uponthe registered owner's
paying the reasonable expenses and charges of the Town in connection therewith and,inthecase
of the Bond destroyed orlost,filing with the Town Clerk by the registered owner evidence
satisfactory tothe Town that such Bond was destroyed orlost,and furnishing the Town witha
sufficient indemnity bond pursuant to§47-8405,Arizona Revised Statutes.
Section 9.Acceptance of FinalBid.Thebid of U.S.BancorpPiperJaffray(the
"Purchaser"),whichisonfile with theTownClerk,is hereby accepted asthe lowest andbestbid
andtheBondsare hereby ordered soldtosuch Purchaser in accordance withtheterms of suchbid
andthetermsand conditions of the Notice Inviting Proposals forthe Purchase of Bonds.
TheAccounting Supervisor isherebyauthorizedanddirectedtocausetheBondsto
bedeliveredtooruponthe order of the Purchaser upon receipt of payment therefor and
satisfaction of theother conditions for delivery thereof in accordance with theterms of thesale.
Section 10.Registrar and Paying Agent.The Town will maintain an office or
agencywhereBonds may be presented for registration of transfer (the "Registrar")andanoffice
oragencywhereBondsmaybe presented for payment (the"PayingAgent").The Town may
appointoneormoreco-registrarsoroneormoreadditionalPayingAgents.TheRegistrarand
Paying Agent may make reasonable rulesandset reasonable requirements for their respective
functionswithrespecttothe owners of theBonds.
Initially,National Bank of Arizona willactas,andishereby designated as,the
RegistrarandPayingAgent with respecttotheBonds.Anyentityintowhichthe Registrar and
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PayingAgentismergedorconsolidatedshallcontinueastheRegistrarandPayingAgent
hereunder without noticetotheowners of Bonds oranyfurtheractionbytheTown.TheTown
may change the Registrar or Paying Agent without notice toor consent of owners of the Bonds
andtheTownmayactinanysuchcapacity.
The contract for Registrar's servicesisherebyapprovedin substantially theformon
filewiththeTownClerktoprovideforpayment of Registrar'sservices.TheMayororAccounting
SupervisorisherebyauthorizedanddirectedtoexecutethecontractwiththeRegistrar.
Each Paying Agentwillberequiredtoagreein writing thatthePayingAgentwill
holdintrustforthebenefit of theowners of theBondsallmoneysheldbythePayingAgentfor
the payment of principal of and interest andany premium onthe Bonds.
The Registrar may appointan authenticating agent acceptable tothe Town to
authenticateBonds.An authenticating agentmayauthenticateBonds whenever theRegistrarmay
doso.Each reference inthis resolution to authentication bythe Registrar includes authentication
byan authenticating agent actingon behalf andinthename of the Registrar and subject tothe
Registrar's direction.
The Registrar shall keep a register of the Bonds,the registered owners of the Bonds
and of transfer of the Bonds.When Bonds are presented tothe Registrar ora co-registrar with a
request to register transfer,the Registrar will register the transfer onthe registration books if its
requirements for transfer aremetandwill authenticate and deliver oneor more Bonds registered in
thename of the transferee of thesame principal amount,maturity and rate of interest asthe
surrendered Bonds.Bonds presented tothe Registrar for transfer after theclose of business onthe
RecordDateand before theclose of business onthe next subsequent interest payment datewillbe
registeredinthename of the transferee butthe interest payment willbemadetotheregistered
owners shown onthe books of the Registrar as of the close of business onthe Record Date.
The Registrar shall authenticate Bonds for original issueupto $3,700,000 in
aggregate principal amount upon the written request of the Accounting Supervisor.Theaggregate
principalamount of Bonds outstanding atanytimemaynotexceedthatamountexceptfor
replacementBondsastowhichthe requirements of the Registrar andtheTownaremet.
Section 11.Official Statement.The Preliminary Official Statement dated
May19,2000(the "Preliminary OfficialStatement"),pertaining totheoriginalissuance of the
Bonds intheform now onfile with the Town Clerk is approved asa "deemed final"official
statement(exceptingpermittedomissions),bytheTownas of itsdateforpurposes of Securities
andExchange Commission Rule 15c2-12 (the "Disclosure Rule").Either theMayororthe
AccountingSupervisorisherebyauthorizedtocertifyorrepresentthattheOfficialStatementis
"final"forpurposes of theDisclosureRule.Suchapproval of thePreliminaryOfficialStatement
byeithertheMayororAccountingSupervisorshallconstitutetheapprovalanddesignationbythe
Town of thePreliminaryOfficialStatementasadeemedfinalOfficial Statement forallpurposes
of theDisclosureRule.Thepreparation,completion,useanddistribution of thePreliminary
Official Statement in connection with the offer andsale of the Bonds is hereby ratified and
approved.EithertheMayoror Accounting SupervisorisauthorizedontheTown'sbehalfto
completea final officialstatementtobedatedonoraboutthedatehereof,andinsubstantiallythe
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formofthe Preliminary OfficialStatement(the"FinalOfficial Statement").(The Preliminary
OfficialStatementandtheFinalOfficialStatementarecollectivelyreferredtohereinasthe
"Official Statement".)TheFinalOfficial Statement shallcontainsuch modifications,changesand
supplementsaseithertheMayororAccountingSupervisorshallapproveorauthorizeasnecessary
tomaketrueandaccuratetheinformationcontainedtherein.EithertheMayororAccounting
Supervisor is hereby authorized to execute and deliver tothe Purchaser theFinal Official
Statement.
Either the Mayor or Accounting Supervisor is further authorized touseand
distribute,or authorize theuseand distribution of,theFinalOfficial Statement and supplements
theretoconcerningtheoriginalissuance of theBondsasmayintheMayor'sorAccounting
Supervisor's judgment be necessary orappropriate.
TheMayor,TownClerkorAccounting Supervisor isalsoauthorizedtosignand
deliver,ontheTown's behalf andintheirofficialcapacities,suchcertificatesconcerningthe
accuracy of theFinalOfficialStatementandanyamendmenttheretoasmay,intheirjudgment,be
necessary or appropriate.
Section 12.Continuing Disclosure Undertaking.Inorderto comply withthe
provisions of theDisclosureRule,theAccounting Supervisor isherebyauthorizedanddirectedto
prepare,executeanddeliveron behalf of theTowna written undertakingoragreementforthe
benefit of theowners of theBonds.The written undertaking or agreement shallcontainsuch
termsandprovisionsasare necessary tocomplywiththe Disclosure Ruleincluding,butnot
limitedto,anagreementto provide bothannualfinancial information (andauditedfinancial
statements,whenavailable)andmaterialeventsdisclosuretonationallyrecognizedmunicipal
securities information repositories.
Section 13.Rebate Fund;Rebate Payments.The Mayor and the Council
herebyauthorizethe Accounting Supervisororanyagent thereof tocreateaseparatefundtobe
knownastheRebateFund.Intosuchfundshallbe deposited anyandallmoneysdeemed
necessary to remain in compliance with the provisions of Section 148 of the Internal Revenue
Code of 1986,asamended(the"Code"),oranyregulationspromulgatedthereunder.Moneysin
suchfundshallbe segregated or (if authorized in writing byan opinion of bond counsel)
commingled withother moneys of theTown.The Accounting Supervisor is ordered anddirected
toemployorengageoneormore arbitrage rebate consultants to calculate annuallyany necessary
rebateamounttobepaidtotheUnitedStates of America.TheAccountingSupervisoris
authorizedanddirectedtopayanyamounts necessary tothe United States,asarbitragerebate(s).
Section 14.Resolution a Contract.This resolution shall constitute a contract
between the Town andthe registered owners of the Bonds and shall notbe repealed or amended in
anymannerwhichwouldimpair,impede or lessen therights of the registered owners of theBonds
then outstanding.
Section 15.Severability.If any section,paragraph,subdivision,sentence,clause
orphrase of this resolution isforany reason heldtobe illegal or unenforceable,such decision will
(not affect the validity of the remaining portions of this resolution.The Mayor and Council hereby
declare thatthe Town would have adopted this resolution andeachand every other section,
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paragraph,subdivision,sentence,clauseor phrase hereof and authorized theissuance of theBonds
pursuantheretoirrespective of thefactthatanyoneormoresections,paragraphs,subdivisions,
sentences,clausesor phrases of this resolution maybeheldillegal,invalid orunenforceable.
Section16.Ratification of Actions.Allactions of theofficersandagents of the
Town which conform tothe purposes andintent of this resolution andwhichfurthertheissuance
andsale of theBondsas contemplated bythis resolution whether heretofore or hereafter taken
shallbeandare hereby ratified,confirmed and approved.Anychangemadeinthe Notice Inviting
Proposals forthePurchaseofBondswhichdonotconformtothepriororder of thisMayorand
Councilareherebyratified.Theproperofficersandagents of theTownareherebyauthorizedand
directedtodoallsuchactsandthingsandtoexecuteand deliver allsuchdocumentson behalf of
theTownasmaybe necessary to carry outthetermsandintent of this resolution.
Section17.Qualified Tax-Exempt Obligations.TheTownherebydesignatesthe
Bondsas"qualifiedtax-exemptobligations"forpurposes of Section265(b)(3)oftheInternal
Revenue Codeof 1986,asamended(the "Code").TheMayororthe Accounting Supervisor will
certifyintheclosing certificates thatitis reasonably anticipatedthatthe aggregate amount of
qualifiedtax-exemptobligations(asdefinedinSection265(b)(3)(B)of theCodewhichwillbe
issuedfororbytheTownincalendaryear2000willnotexceed $10,000,000.
Section18.Tax Covenants.Inconsideration of thepurchaseandacceptance of
theBondsbytheownersthereofand,as authorized byArizonaRevisedStatutes,Title35,Chapter
3,Article7,andin consideration of retaining the exclusion of interest incomeontheBondsfrom
grossincomeforfederalincometaxpurposes,theTowncovenantswiththeownersfromtimeto
time of theBondsto neither takenorfailtotakeanyactionwhichactionorfailuretoactiswithin
itspowerandauthorityandwouldresultininterestontheBondsbecomesubjecttofederal
income taxes.
TheTownagreesthatitwillcomplywithsuchrequirementsasintheopinionof
Gust Rosenfeld P.L.C.("bondcounsel")arenecessarytopreventinterestontheBonds becoming
subjecttoinclusioningrossincomeforfederalincometaxpurposes.Such requirements may
includebutarenotlimitedtomakingfurtherspecificcovenants;makingtruthfulcertificationsand
representationsandgivingnecessaryassurances;complyingwithallrepresentations,covenants
andassurancescontainedincertificatesoragreementstobepreparedbybondcounsel;topayto
theUnitedStatesofAmericaanyrequiredamountsrepresentingrebates of arbitrageprofits
relatingtotheBonds;filingforms,statementsandsupportingdocumentsasmayberequiredunder
thefederaltaxlaws;limitingtheterm of andyieldoninvestmentsmadewithmoneysrelatingto
theBonds;andlimitingtheuse of theproceeds of theBondsand property financedthereby.
Section 19.Emergency Clause.The immediate operation of the provisions
hereof is necessary forthe preservation of thepublicpeace,health andsafetyandan emergency is
hereby declared to exist,and this resolution will beinfull force and effect fromand after its
passagebytheMayorandCouncilanditisherebyexceptedfromthe referendum provisions of the
Constitution.
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PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain
Hills,Arizona,on June 1,2000.
ATTEST:
Town Clerk
APPROVED AS TO FORM:
(QtfSFCOO r
Bond Cou*
EXHIBIT A:Bond Form
CERTIFICATION
I,Cassie Hansen,the duly appointed and acting Clerk of the Town of Fountain
Hills,Arizona,doherebycertifythattheaboveandforegoingResolutionNo.2000-25wasduly
passedbytheTownCouncil of theTown of Fountain Hills,Arizona,ata regular meetingheldon
June 1,2000,andthevotewas "7 aye's and O nay's andthatthe Mayor and Lp Council
Members were present thereat.
DATED:June 1,2000.
Ml/A4/^<-^—-
Town Clerk
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EXHIBIT A
(Face of Bond)
TOWN OF FOUNTAIN HILLS,ARIZONA
GENERAL OBLIGATION BOND
PROJECT OF1999 SERIES B(2000)
Number:Denomination:
$
Interest
Rate
Maturity
Date
Original
Dated Date
June 1,2000
CUSIP:
Registered Owner:
Principal Amount:
THE TOWN OF FOUNTAIN HILLS,ARIZONA,forvalue received,hereby
(promises to pay to the registered owner identified above,or registered assigns as provided herein,
onthe maturity datesetforth above,the principal amount setforth above,andtopay interest on
theunpaid principal amount atthe interest rate shown above.
Certainbonds of theseries of whichthisbondisonearesubjecttocallfor
redemption prior to maturity in accordance withthetermssetforthonthe reverse of thisbond.
InterestispayableonJuly1andJanuary1 of eachyearcommencingJanuary1,
2001,andwillaccruefromthemostrecentdatetowhichinteresthasbeenpaid,or,if nointerest
hasbeenpaid,fromtheoriginaldateddatesetforthabove.Interestwillbecomputedonthebasis
of ayearcomprised of 360daysconsisting of twelve(12)monthshavingthirty(30)dayseach.
Principal,interestandanypremiumarepayableinlawfulmoney of theUnited
States of America.Interest willbepaidbycheck payable tothe order of and mailed whendueto
theregisteredownerattheaddressshownontheregistrationbooksmaintainedbytheregistrarat
theclose of businessontherecorddateasexplainedonthereversehereof.Theprincipalwillbe
paidwhenduetotheregisteredowneruponsurrender of thisbondforpaymentatthedesignated
office of thepayingagent,whichontheoriginalissuedateisthe corporate trustoffice of National
Bank of Arizona.
Payment of interest and,if adequate terms of surrender of such bonds are made
withthe Paying Agent,principal and premium,if any,maybe paid bywire transfer onanybonds
(held bya securities depository orto the owner ofat least $1,000,000 principal amount of bonds
outstanding,by wire transfer toan account of such owner located within the United States of
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America,if suchownerprovidesawrittenrequesttothePayingAgentatleasttwenty(20)days
priortoaninterest payment date,which requestshallspecifythewire transfer instructions.
Seethereverseside of thisbondforadditional provisions.
Itisherebycertifiedandrecitedthatallconditions,actsandthingsrequiredbythe
Constitutionandlaws of theState of Arizonatoexist,tooccurandtobeperformedprecedentto
andintheissuance of thisbondexist,haveoccurredandhavebeenperformedandthattheseries
of bonds of whichthisisone,togetherwithallotherindebtedness of theTown,iswithinevery
debtandotherlimit prescribed by the Constitution andlaws of the State of Arizona,andthatdue
provisionhasbeenmadeforthelevyandcollection of adirect,annual,advaloremtaxuponallof
the taxable property inthe Town forthe payment of this bond and of the interest hereon aseach
becomes due.
TheTownhascausedthisbondtobeexecutedbyitsMayorandattestedbyits
Clerk,which signatures may be manual or by facsimile signatures.This bond isnot valid or
bindingupontheTown without the manually affixed signature of an authorized representative of
the registrar.
TOWN OF FOUNTAIN HILLS,ARIZONA
Mayor
ATTEST:
Clerk
(SEAL)
DATE OF AUTHENTICATION AND REGISTRATION:
AUTHENTICATION CERTIFICATE
Thisbondisone of theTown of Fountain Hills,Arizona,General Obligation
Bonds,Project of 1999,SeriesB(2000),described inthe resolution mentioned onthe reverse
hereof.
NATIONAL BANK OF ARIZONA,
as Registrar
By
Authorized Representative
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(Form of Reverse Side of Bond)
This bond isone of aseries of bonds inthe aggregate principal amount of
$3,700,000 of like tenor except astoamount,maturity date,redemption provisions,rate of interest
andnumber,issuedbythe Town to provide fundsto make those certain acquisitions andpublic
improvementsapprovedbya majority vote of qualifiedelectorsvotingatelectionsdulycalledand
heldinandfortheTown,pursuant toa resolution of the Mayor andCouncil of theTownduly
adopted prior tothe issuance hereof and pursuant tothe Constitution andlaws of theState of
Arizona relative tothe issuance andsale of general obligation bonds,andall amendments thereto,
andall other laws of the State of Arizona thereunto enabling.
Forthepunctualpayment of thisbondandtheinteresthereonandforthelevyand
collection of ad valorem taxes sufficient for that purpose,thefullfaithand credit of theTownare
hereby irrevocably pledged.
BondsmaturingonorbeforeJuly1,2008,arenot subject tocallforredemption
priortomaturity.BondsmaturingonorafterJuly1,2009,aresubjecttocallforredemptionprior
tomaturity,attheoption of theTown,inwholeorinpart,onJuly1,2008,oronanyinterest
paymentdatethereafter,bythepayment of aredemptionpriceequaltotheprincipalamount of
eachbondcalledfor redemption plusinterestaccruedtothedatefixedforredemptionplusa
premium (calculated asa percentage of the principal amount of the bonds toberedeemed)tobe
computed asfollows:
Redemption Dates Premium
July 1,2008 2.0%
January 1,2009 1.5%
July 1,2009 1.0%
January 1,2010 0.5%
July 1,2010 and thereafter without premium.
Notice of redemption of anybondwillbe mailed tothe registered owner of the
bondorbondsbeingredeemedattheaddressshownonthebondregistermaintainedbythe
registrarnotmorethansixty(60)norlessthanthirty(30)dayspriortothedatesetforredemption.
Failuretoproperlygivenotice of redemptionshallnotaffecttheredemption of anybondfor
whichnoticewas properly given.
Thisbondis transferable bythe registered owner in person orbyattorneyduly
authorizedinwritingatthedesignatedoffice of theregistraruponsurrenderandcancellationof
thisbond,butonlyinthemannerandsubjecttothe limitation anduponpayment of thecharges
provided inthe authorizing resolution.Uponsuchtransferanewbondorbonds of thesame
aggregate principal amount,maturityandinterestratewillbeissuedtothe transferee in exchange.
Theregistrarmayrequireanowner,amongother things,tofurnishappropriate endorsements and
transfer documents andtopayanytaxesandfeesrequiredbylaworpermittedbythe authorizing
resolution.The Town has chosen the fifteenth day of the month preceding an interest payment
dateasthe record dateforthis series of bonds.Should this bond be submitted tothe registrar for
transfer duringtheperiod commencing aftertheclose of businessontherecorddateand
continuing toand including thenextsubsequentinterestpaymentdate,ownership willbe
transferredinthenormalmannerbuttheinterestpaymentwillbemadepayabletoandmailedto
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the registered owner as shown onthe registrar's books atthe close of business ontherecorddate.
The registrar may be changed atanytimebytheTown.
The registrar may but need not register the transfer of a bond which has been
selectedfor redemption andneednot register the transfer of any bond fora period of fifteen (15)
daysbeforea selection of bondstoberedeemed.If the transfer of anybondwhichhasbeencalled
orselectedforcallfor redemption inwholeorinpartis registered,anynotice of redemptionwhich
hasbeengiventothe transferor willbe binding uponthe transferee andacopy of thenotice of
redemptionwillbedeliveredtothetransfereealongwiththe bond orbonds.
Bonds of this series are issuable only in fully registered forminthe denomination
of $5,000eachor integral multiples of $5,000.
TheTown,the registrar andthe paying agent may treatthe registered owner of this
bondastheabsoluteownerforthepurpose of receiving principal,interest andanypremiumand
forallotherpurposesandnone of themshallbeaffectedbyanynoticetothecontrary.
Thefollowingabbreviations,whenusedinthe inscription ontheface of thisBond,shallbe
construedasthoughtheywerewrittenoutinfullaccordingtoapplicablelawsorregulations:
TENCOM-astenantsin common UNIF GIFT/TRANS MIN ACT-Custodian
TENENT-astenantsbytheentireties (Cust)(Minor)
JTTEN-asjointtenantswithright of survivorshipunderUniformGifts/TransferstoMinorsAct
andnotas tenants in common (State)
Additional abbreviations mayalsobeused though notinlistabove
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sells,assigns and transfers unto
(NameandAddress of Transferee)
thewithinbondandallrightsthereunder,andherebyirrevocablyconstitutesandappoints
__,attorneytotransferthewithinbondonthebookskeptforregistrationthereof,
withfullpowerofsubstitutioninthepremises.
Dated
Signature Guaranteed:
Thesignature(s)shouldbeguaranteedbyaneligible
guarantorinstitutionpursuanttoSECRule 17Ad-15
Note:Thesignature(s)onthisassignmentmustcorrespondwith
thename(s)aswrittenonthefaceofthewithinregisteredbondin
everyparticularwithoutalterationorenlargementoranychange
whatsoever.
ALL FEES AND TRANSFER COSTS SHALL BE PAID BY THE TRANSFEROR
SWR:gmh 344791 5/31/00 A-4