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