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FY1967-9 Sale of General Obligation Bonds - $300KORDINANCE NO. 67 -9 -0 AN ORDINANCE of Kodiak Island Borough, Alaska, providing for the issuance and sale of $300,000 of general obligation bonds of the Borough for the purpose of providing funds to pay the principal of the Bond Anticipation Note of the Borough dated May 24, 1967; providing the date, form, terms and maturities of said bonds; providing for unlimited tax levies to pay the principal thereof and interest thereon; and confirming the sale of said bonds. WHEREAS, at a special election held in Kodiak Island Borough, Alaska (hereinafter referred to as the "Borough "), on May 24, 1966, pursuant to Resolution No. 66 - - and other resolutions and ordinances of the Borough, the qualified electors of the Borough authorized the issuance of general obligation bonds of the Borough in the total principal amount of $300,000 for the purpose of providing funds to pay part of the cost of constructing a hospital and other capital improvements in connection therewith; and WHEREAS, the Borough has, under date of May 24, 1966 and pursuant to Emergency Ordinance No. 67 - - authorized the issuance of it Bond Anticipation Note in the principal amount of $300,000 in anticipation of the issuance of said general obligation bonds; and WHEREAS, it is necessary and in the best interests of the Borough and its inhabitants that the issuance and sale of said $300,000 of general obligation bonds be now authorized and that the date, form, terms, maturities and covenants thereof now be fixed; and WHEREAS, Bache & Co., Inc., New York, New York, has contracted with the Borough for the purchase of the said Note and has contracted for the purchase of the said Bonds at par plus a premium of $10.57, plus accrued interest and under the terms, conditions and covenants thereof hereinafter set forth; NOW, THEREFORE, BE IT ORDAINED by the Borough Assembly of Kodiak Island Borough as follows: Section 1. As used in this ordinance, the following words shall have the following meanings: a. The word "Borough" shall mean the Kodiak Island Borough, Alaska, a municipal corporation duly organized and existing under the laws of the State of Alaska. b. The word "Bonds: shall mean the General Obligation Hospital Bonds of the Borough in the principal amount of $300,000 provided for herein. c. The word "Note: shall mean.the General Obligation Hospital Bond Anticipation Note of the Borough in the principal amount of $300,000 dated May 24, 1967, and issued pursuant to Emergency Ordinance No. 67 -8 -EO of the Borough Assembly. Section 2. For the purpose of providing funds to pay the principal of the Note (issued to pay part of the cost of constructing a hospital and all necessary appurtenances) when the same becomes due, and as authorized by Resolution No. 66 -15 -R of the Borough Assembly and by the qualified electors of the Borough at the above - mentioned election, the Borough shall issue and sell all of the $300,000 of Bonds so authorized in one issue. The Bonds shall be dated May 1, 1967, shall be numbered from 1 to 60 inclusive, shall be in the denomination of $5,000 each, shall bear interest at the rate of 4 -7/8% per annum payable on November 1, 1967, and semiannually on the first days of May and November of each year thereafter as evidenced by coupons to be attached thereto, shall be numbered from 1 up and shall mature on May 1, 1987. Said Bonds may be registered as to principal, or as to principal and interest, at the option of the holder. Both principal of and interest on the Bonds shall be payable in lawful money of the United States of America at the National Bank 2. of Alaska, Anchorage, Alaska, or, at the option of the holder, at the Franklin National Bank, 130 Pearl Street, City and State of New York. Section 3. The Borough hereby reserves the right to redeem any or all of the Bonds of this issue, in whole, or in part and in inverse numerical order, at 103% of the principal amount plus accrued interest to the date of redemption on May 1, 1982, or on any interest payment date thereafter. Notice of any such intended redemption shall be given by one publication in a financial journal printed in the English language and of general circulation in the City of New York, New York, such publication to be not more tahn 45 nor less than 30 days prior to said redemption date, and by mailing a like notice at the same time to Bache & Co., Inc., New York, New York, or to its successor in business, if any, at its main place of business. Section 4. There has heretofore been created by Emergency Ordinance No. 67 -8 -E0 a special fund of the Borough known as the "Kodiak Island Borough 1967 General Obligation Hospital Bond Redemption Fund" (hereinafter called the "Bond Fund "), which fund shall be drawn upon for the purposes of paying the principal of and interest on the Note as the same shall become due, and when the Note shall have been fully redeemed, said fund shall be drawn upon for the sole purpose of paying the principa of and interest on the Bonds as the same shall become due. The creation of said Bond Fund is hereby, in all respects, ratified and confirmed and said Bond Fund shall be maintained by the Borough as a permanent fund until all of the Bonds shall have been redeemed or their payment duly provided for. From and after the date of issue of said Bonds and for as long as any of the same remain outstanding and unpaid, the Borough covenants and obligates itself to levy and collect ad valorem taxes upon all of the taxable property within the Borough without limitation as to rate 3 or amount, in amounts which will be sufficient to pay the principal of and interest on the Bonds as the same shall become due. The full faith and credit of the Borough are hereby irrevocably pledged for the annual levy and collection of such taxes and the prompt payment of such principal and interest. On or before the 1st day of October, 1967, and thereafter on or before the 1st day of each April 1 and October 1 until the maturity date of the Bonds, the Borough covenants and agrees to deposit into the Bond Fund sums sufficient, together with funds then on deposit in said Fund (but exclusive of any moneys in the Bond Redemption Account, hereinafter created) to pay the interest coming due on the Bonds outstandi on each April 1 and October 1. There is hereby created in the Bond Fund a Bond Redemption Account, into which the Borough covenants and agrees that it will, on or before April 1 of each year from 1969, through 1987, or until all of the Bonds are redeemed,deposit the sum of not less than $10,000 together with such additional amounts as will make available on or before April 1, 1987, an aggregate amount sufficient to pay the principal of all of the Bonds then outstanding. Funds in said Bond Redemption Account may, from time to time, at the option of the Borough, be withdrawn solely to redeem and retire any or all of the outstanding Bonds in the manner and pursuant to the terms specified in Section 3 hereof. In the event that money and /or direct obligations of the United States of America in amounts sufficient to redeem and retire the Bonds in accordance with their terms are set aside in the Bond Redemption Account in the Bond Fund to effect such redemption and retirement, and such money and the principal of such obligations are irrevocably set aside and pledged for such purpose, then no further payments need be made into the Bond Redemption Account for the payment of the principal of the Bonds. 4. All money in the Bond Redemption Account may be kept in cash or invested in certificates, notes, bonds or other direct obligations of the United States of America maturing not later than twelve years from the date of purchase and in no event later than the maturity of the outstanding Bonds. Interest earned on, or any profits made from the sale of, any such investments shall be deposited in and become a part of the Bond Fund. Section 5. All of the proceeds of the sale of the Bonds, including accrued interest, shall be paid into the Bond Fund and shall be used for the purpose of paying the principal of and interest on the Note, when the same shall become due. The Borough may, at its option, deliver the Bonds, together with a sum sufficient to pay all accrued interest on the Note, to the date of maturity thereof, to the purchaser thereof, in exchange for the surrender and satisfaction of the Note, together with payment of all accrued interest on the Bonds to the date of delivery thereof. Section 6. The Bonds shall be in substantially the following 1 form: No. UNITED STATES OF AMERICA STATE OF ALASKA KODIAK ISLAND BOROUGH GENERAL OBLIGATION HOSPITAL BOND, 1967 $5,000 Kodiak Island Borough, a municipal corporation of the State of Alaska (hereinafter called the "Borough "), for value received, hereby promises to pay to bearer or, if this bond be registered, to the registered owner hereof, on the 1st day of May, 1987, the principal sum of FIVE THOUSAND DOLLARS together with interest thereon at the rate of 4 -7/8% per annum payable on the 1st day of November, 1967, and semiannually on-the 5. 1st days of May and November of each year thereafter as evidenced by and upon presentation and surrender of the attached interest coupons as they severally become due. Both principal of and interest on this Bond are payable in lawful money of the United States of America at the National Bank of Alaska, Anchorage, Alaska, or, at the option of the holder, at the Franklin National Bank, 130 Pearl Street, in the City and State of New York. This bond is one of an issue of 60 bonds of like amount, date and tenor except as to number, aggregating the principal sum of $300,000, and is issued pursuant to an election authorizing the same, under and in accordance with the laws of the State of Alaska, and duly adopted ordinances and resolutions of Kodiak Island Borough Assembly for the purpose of redeeming Bond Anticipation Notes of the Borough issued to pay part of the cost of constructing a hospital and making certain other capital improvements in connection therewith. This bond and the bonds of this issue are payable, both principal and interest, out of the special fund of the Borough entitled "Kodiak Island Borough 1967 General Obligation Hospital Bond Redemption Fund," created by Ordinance No. 67 -9 -0 and Emergency Ordinance No. 67 -8 -E0 of the Borough Assembly. The Borough has irrevocably covenanted and agreed to levy and collect ad valorem taxes annually upon all of the taxable property within the Borough without limitation as to rate or amount, and in amounts sufficient to pay the principal of and interest on such bonds as the same shall become due. For the annual levy of such taxes and the prompt payment of such principal and interest, the full faith, credit and resources of the Borough are hereby irrevocably pledged. The Borough has reserved the right to redeem any or all of the bonds of this issue on May 1, 1982, or any interest payment date thereafter, in whole, or in part and in inverse numerical order, at 103% of the principal amount plus accrued interest to the date of redemption. 6. It is hereby certified that all acts, conditions and things required by the Constitution and laws of the State of Alaska and resolutions and ordinances of the Borough precedent to and in the issuance of this bond have happened, been done and performed, and that the total indebtedness of the Borough, including this bond and the bonds of this issue, does not exceed any debt limitation provided by such Constitution, laws, resolutions or ordinances. IN WITNESS WHEREOF, Kodiak Island Borough, Alaska, has caused this bond to be signed by its Chairman, to be attested by its Clerk, the seal of the Borough to be impressed hereon, and the interest coupons attached hereto to be signed with the facsimile signatures of said officials this 1st day of May, 1967. KODIAK ISLAND BOROUGH, ALASKA Attest: On the first day of BY t - LA Y Borough Chairman Borough Clerk The interest coupons to be attached to the bonds shall be in substantially the following form: No. $ 7. , 19 , Kodiak Island Borough, Alaska, will pay to bearer at the National Bank of Alaska, Anchorage, Alaska, or, at the option of the holder, at the Franklin National Bank, New York, New York, the sum shown hereon in lawful money of the United States of America, said sum being the semiannual interest due that date on its General Obligation Hospital Bond dated May 1, 1967, and numbered Attest: KODIAK ISLAND BOROUGH, ALASKA By Borough Clerk The Bonds shall have endorsed thereon the following registration certificate: REGISTRATION CERTIFICATE This bond may be registered in the name of the holder at the office of the Treasurer of the Kodiak Island Borough, Kodiak, Alaska, as to principal only, such registration being noted hereon by the Registrar in the registration blank below, after which no transfer shall be valid unless made by the registered holder or his duly authorized agent, and similarly noted in the registration blank below; but it may be discharged from registration by being transferred to bearer, after which it shall be transferable by delivery and may again be registered as before. The registration of this bond as to principal shall not affect the negotiability of tt coupons attached hereto, but the coupons may be surrendered and the interest made payable only to the registered holder, in which event the Registrar shall note in the registration blank below that this bond is registered as to interest as well as to principal. Upon the request of the holder and with the consent of the Kodiak Island Borough, but always at the expense of the holder, this bond when converted into a bond registered as to both principal and interest may be reconverted into a coupon bond and again converted into a bond registered as to principal or as to both principal and interest as hereinabove provided. Upon reconversion of this bond when registered as to principal and interest into a 8. Borough Chairman coupon bond, new coupons representing the interest to accrue hereon to date of maturity shall be attached hereto by the Registrar, who shall note in the registration blank below whether the bond is registered as to principal only or payable to bearer. Date of In Whose Name Manner of Signature Registration Registered Registration of Registrar • 9. Section 7. The Bonds shall be signed on behalf of the Borough by its Chairman, shall be attested by its Clerk and shall have the official seal of the Borough impressed thereon. Each of the interest coupons attached thereto shall be signed with the facsimile signatures of said officials. Section 8. The sale of the Bonds to Bache & Co., Inc., New York, New York, at par plus a premium of $10.57, plus accrued interest to the date of delivery and under the terms, conditions and covenants contained herein is hereby in all respects approved, ratified and confirmed. Section 9. Publication of this ordinance shall be made by publishing a summary thereof in a newspaper of general circulation in the Borough and copies of the ordinance shall be mailed to all newspapers of general circulation in the Borough. A copy of the ordinance shall be posted in a public place at the Borough seat. Introduced and read for the first time this 18th day of May, 1967. PASSED AND APPROVED by the Borough Assembly of the Kodiak Island Borough, Alaska, this �''9 day of May, 1967. Presiding Officer (SEAL) BOROUGH CLERK'S CERTIFICATE I, the undersigned, the duly chosen, qualified and acting Clerk of the Kodiak Island Borough, Alaska, and keeper of the records of the Assembly of the Borough (herein called the "Governing Body ") DO HEREBY CERTIFY: 1. That the attached ordinance (herein called the "Ordinance ") is a true and correct copy of an ordinance of the Kodiak Island Borough as adopted at a meeting of the Governing Body held on the _:5? day of May, 1967, and duly recorded in my office. 2. That said meeting was duly convened and held in all respects in accordance with law, and to the extent required by law due and proper nati -ee sf such meeting was give -n; that a legal -quorum yes present throughout the meeting and a legally sufficient number of members of the Governing Body voted in the proper manner for the adoption of said Ordinance; that all other requirements and proceedings incident to the proper adoption of passage of said Ordinance have been duly fulfilled, carried out and otherwise observed, and that I am authorized to execut this certificate. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the Kodiak Island Borough this .Z day of May, 1967. ATTEST: v elar Approved this ?V day of /lZzLt -1 , 1967: ilt Q 110-047 Borough Chairman 10, Anchorage, Alaska, or, at the option of the holder, at Chemical Bank New York Trust Co., New York, New York, the amount shown hereon in lawful money of the United States of America, said sure being the semiannual interest due that date on its Elementary School Building General Obligation Bond dated January 1, 1967, and numbered ATTEST: KODIAK ISLAND BOROUGH, ALASKA By 8. Borough Chairman Borough Clerk Section 7. The Bonds shall be signed on behalf of the Borough by its Chairman, attested by its Clerk and shall have the official seal of the Borough impressed thereon. Each of the interest coupons attached thereto shall be signed with the fac- simile signatures of said officials. Section 8. The Bonds shall be sold at public sale, and the Clerk of the Borough is hereby authorized to advertise the Bonds for sale under the terms thereof as hereinbefore set forth by publication of the notice of sale once in a financial newspaper of national circulation not less than ten days prior to the date of such public sale and by such other publication as may be deemed necessary. Upon the sale of the Bonds, the proper officials of the Borough are hereby authorized and directed to execute the same and to do all things necessary for the prompt issuance, execution and delivery thereof and for the proper application and use of the proceeds of such sale. Section 9. Publication of this ordinance shall be made by publishing a summary thereof in a newspaper of general cir- culation in the Borough and copies of the ordinance shall be mailed to all newspapers of general circulation in the Borough. A copy of the ordinance shall be posted in a public place at the Borough seat. PASSED AND APPROVED by the Borough Assembly of the Kodiak Island Borough, Alaska, this pxq day of In1514e 1966. ATTEST: Cl Approved this ,2 ` day of 1960 Borough Chairman 9. Presiding Officer 1 I, DouIlas G. Preston Borough, Alaska, DO HEREBY CERTIFY that ordinance is a true and correct copy of said Borough, duly adopted at a meeting on the 29th day of December CZ' Borc , Clerk of Kodiak Island the within and foregoing Ordinance No. 66-27-0 of of its Assembly hd 1966. gh gerk