2003-01 Refunding General Obligation BondsKODIAK ISLAND BOROUGH
ORDINANCE NO. 2003 -01
Introduced by: Manager Carlson
Requested by: Finance Director
Drafted by: Bond Attorney
Introduced: 01/16/2003
Public Hearing: 01/16/2003
Adopted: 01/23/2003
AN ORDINANCE OF THE KODIAK ISLAND BOROUGH ASSEMBLY
AUTHORIZING THE KODIAK ISLAND BOROUGH TO ISSUE GENERAL OBLIGATION
REFUNDING BONDS, 2003 SERIES A IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED
$3,200,000 TO REFUND CERTAIN OUTSTANDING GENERAL OBLIGATION BONDS OF
THE BOROUGH, FIXING CERTAIN DETAILS OF SUCH BONDS AND AUTHORIZING
THEIR SALE.
WHEREAS, there are now outstanding General Obligation Bonds, 1993 Series A maturing on
February 15, 2005 in the aggregate principal amount of $940,000, and maturing on February 15, 2006
in the aggregate principal amount of $980,000 (collectively, the "1993 Bonds "), and General Obligation
Bonds, 1994 Series A maturing on February 15, 2010 in the aggregate principal amount of $1,030,000
(the "1994 Bonds "), issued under Ordinance No. 93 -65 of the Borough; and
WHEREAS, the Assembly finds that it is in the best interest of the Borough to provide for the
refunding, including the payment of principal of, and premium and interest on, those maturities of the
1993 Bonds and 1994 Bonds (the "Refunded Bonds ") whose refunding the Borough Manager or
Borough Finance Director determines will produce the percentage debt service savings specified in this
ordinance, by the issuance of general obligation refunding bonds in the aggregate principal amount of
not to exceed $3,200,000; and
WHEREAS, to effect such refunding in the most economical manner, part of the sale proceeds of the
bonds authorized herein may be invested in obligations to be authorized and approved by the Borough
Manager or Borough Finance Director, maturing in such amounts and at such times as are required to
pay interest on the Refunded Bonds prior to the date of their redemption and to redeem the Refunded
Bonds on the earliest date on which the Refunded Bonds may be called for redemption; and
WHEREAS, Section 29.47.320 of the Alaska Statutes provides that general obligation refunding
bonds may be issued without an election and that their issuance may be authorized by ordinance, and
Section 29.47.410 of the Alaska Statutes provides that the Assembly by ordinance or resolution may
provide for the form and manner of sale of bonds and notes; and
WHEREAS, there has been presented to the Borough the form of a Loan Agreement between the
Alaska Municipal Bond Bank and the Borough, which provides for the Alaska Municipal Bond Bank
to purchase the bonds on the terms and conditions set forth therein and in this ordinance, and it is in the
best interest of the Borough that the Borough sell the bonds to the Alaska Municipal Bond Bank under
such terms and conditions; and
WHEREAS, the Assembly finds that it is necessary and appropriate to delegate to each of the Borough
Manager and Borough Finance Director authority to determine the aggregate principal amount, maturity
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amounts, interest rates and other details of the Bonds, the amount of Bond proceeds and the obligations
necessary to effect the refunding of the Refunded Bonds, and to determine other matters that are not
provided for in this ordinance.
NOW, THEREFORE, BE IT ENACTED BY THE ASSEMBLY OF THE KODIAK ISLAND
BOROUGH:
Section 1. Definitions. The following terms shall have the following meanings in this
ordinance:
(A) "Assembly" means the Assembly of the Kodiak Island Borough, as the general legislative
authority of the Kodiak Island Borough, as the same shall be duly and regularly constituted from time
to time.
(B) "Bond" or "Bonds" means anyofthe "General Obligation Refunding Bonds, 2003 Series
A" of the Kodiak Island Borough, the issuance and sale of which are authorized herein.
(C) "Bond Bank" means the Alaska Municipal Bond Bank, a public corporation of the State
of Alaska.
Bank.
(D) "Bond Bank Bonds" means the General Obligation Bonds, 2003 Series A of the Bond
(E) "Bond Register" means the registration books maintained by the Registrar as Bond
registrar, which include the names and addresses of the owners or nominees of the owners of the Bonds.
(F) "Borough" means the Kodiak Island Borough, a municipal corporation of the State of
Alaska, organized as a second class borough under Title 29 of the Alaska Statutes.
(G) "Code" means the Internal Revenue Code of 1986, as amended from time to time,
together with all regulations applicable thereto.
(H) "Escrow Agent" means the entity appointed as Escrow Agent under the Escrow
Agreement pursuant to Section 12(D), and its successors.
(I) "Escrow Agreement" means the Escrow Agreement between the Escrow Agent and the
Borough, under which the Escrow Obligations will be deposited, together with other moneys, if
necessary, to pay the interest on and the redemption price of the Refunded Bonds.
(J) "Escrow Obligation' means non - callable Government Obligations that the Borough will
deposit with the Escrow Agent under the Escrow Agreement.
(K) "Government Obligations" means obligations that are either (i) direct obligations of the
United States of America or (ii) obligations of an agency or instrumentality of the United States of
America the timely payment of the principal of and interest on which are unconditionally guaranteed
by the United States of America
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(L) "Loan Agreement" means the Loan Agreement between the Borough and the Bond Bank
concerning the Bonds.
(M) "1993 Bonds" means the $940,000 of General Obligation Bonds, 1993A of the Borough
maturing on February 15, 2005, and the $980,000 of General Obligation Bonds, 1993A of the Borough
maturing on February 15, 2006.
(N) "1994 Bonds" means the outstanding $ 1,030,000 of General Obligation Bonds, 1994A
of the Borough maturing on February 15, 2010 .
(0) "Ordinance" means this Ordinance No. 2003 -01 of the Borough.
(P) "Refunded Bonds" means the maturities of the 1993 Bonds and 1994 Bonds whose
refunding is approved by the Borough Manager or Borough Finance Director under Section 13.
(Q) "Refunding Account" means the special account established under Section 12(C) and
designated as the "1993A/1994A General Obligation Bond Refunding Account ", for the purpose of
holding moneys, including Bond proceeds, to be used to pay the interest on and the redemption price
of the Refunded Bonds.
(R) "Registered Owner" means the person named as the registered owner of a Bond in the
Bond Register.
(S) "Registrar" means the Borough Treasurer, or any successor that the Borough may appoint
by resolution.
Section 2. Authorization of Bonds and Purpose of Issuance. For the purpose of providing
part of the funds required to purchase Escrow Obligations and to provide beginning cash to effect
the refunding of the Refunded Bonds in the manner and at the times hereinafter set forth, to provide
for original issue discount, if any, and to pay all costs incidental thereto and to the issuance of the
Bonds, the Borough hereby authorizes and determines to issue and sell the Bonds in the aggregate
principal amount of not to exceed $3,200,000.
Section 3. Obligation of Bonds. The Bonds shall be direct and general obligations of the
Borough and the full faith and credit of the Borough are hereby pledged to the payment of the principal
of and interest on the Bonds. The Borough hereby irrevocably pledges and covenants that it will levy
and collect taxes upon all taxable property within the Borough without limitation as to rate or amount,
in amounts sufficient, together with other funds legally available therefor, to pay the principal of and
interest on the Bonds as the same become due and payable.
Section 4. Designation, Maturities, Interest Rates, and Other Details of Bonds. The Bonds shall
be designated "Kodiak Island Borough, Alaska, General Obligation Refunding Bonds, 2003 Series A."
The Bonds shall be in the denomination of $5,000 or any integral multiple thereof, shall be numbered
separately in the manner and with such additional designation as the Registrar deems necessary for
purposes of identification, and may have endorsed thereon such legends or text as may be necessary or
appropriate to conform to the rules and regulations of any governmental authority or any usage or
requirement of law with respect thereto.
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The Bonds shall mature in one or more years commencing no earlier than 2004 and ending no
later than 2007, with the principal amount of each maturity not exceeding $1,200,000. The Bonds shall
bear interest from their date, payable commencing on or after July 1, 2003, and semi - annually
thereafter. Interest will be computed on the basis of a 360 -day year consisting of twelve 30 -day months.
Subject to Section 2 and the remainder of this section, the dated date, the principal and interest
payment dates, the aggregate principal amount, the principal amount of each maturity, and the interest
rates on the Bonds shall be determined at the time of execution of the Loan Agreement under Section
18.
Section 5. Bonds Not Subject to Redemption. The Bonds shall not be subject to optional or
mandatory redemption before their maturity.
Section 6. Form of Bond. Each Bond shall be in substantially the following form, with such
variations, omissions and insertions as may be required or permitted by this Ordinance:
Year
UNITED STATES OF AMERICA
STATE OF ALASKA
KODIAK ISLAND BOROUGH
(A Municipal Corporation of the State of Alaska)
NO. $
GENERAL OBLIGATION REFUNDING BOND, 2003 SERIES A
Registered Owner
Principal Amount DOLLARS
The Kodiak Island Borough (the "Borough"), a municipal corporation of the
State of Alaska, hereby acknowledges itself to owe and for value received promises to
pay to the Registered Owner identified above, or registered assigns, in the following
installments on of each of the following years, and to pay interest on
such installments from the date hereof, payable on , 2003 and semiannually
thereafter on the days of and of each year, at the
rates per annum as follows:
Principal Amount Interest Rate
For so long as this Bond is owned by the Alaska Municipal Bond Bank (the "Bond
Bank "), payment of principal and interest shall be made as provided in the Loan
Agreement between the Bond Bank and the Borough (the "Loan Agreement "). In the
event that this Bond is no longer owned by the Bond Bank, installments of principal and
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interest on this Bond shall be paid by check or draft mailed by first class mail to the
Registered Owner as of the close of business on the day of the month
each installment payment date; provided that the final installment of principal and
interest on this Bond shall be payable upon presentation and surrender of this Bond by
the Registered Owner at the office of the Registrar. Interest will be computed on the
basis of a 360 -day year consisting of twelve 30 -day months. Both principal of and
interest on this Bond are payable in lawful money of the United States of America
which, on the respective dates of payment thereof, shall be legal tender for the payment
of public and private debts.
This Bond is one of the General Obligation Refunding Bonds, 2003 Series A of
the Kodiak Island Borough, Alaska, of like tenor and effect except as to interest rate,
serial number and maturity, aggregating $ in principal amount, and
constituting Bonds authorized for the purpose of refunding certain general obligation
bonds issued by the Borough, and is issued under Ordinance No. 2003 -01 of the
Borough entitled:
AN ORDINANCE AUTHORIZING THE KODIAK ISLAND BOROUGH TO ISSUE
GENERAL OBLIGATION REFUNDING BONDS, 2003 SERIES A IN THE
PRINCIPAL AMOUNT OF NOT TO EXCEED $3,200,000 TO REFUND CERTAIN
OUTSTANDING GENERAL OBLIGATION BONDS OF THE BOROUGH, FIXING
CERTAIN DETAILS OF SUCH BONDS AND AUTHORIZING THEIR SALE.
(the "Ordinance ").
The Bonds are not subject to optional or mandatory redemption before their
maturity.
This Bond is transferable as provided in the Ordinance, (i) only upon the bond
register of the Borough, and (ii) upon surrender of this Bond together with a written
instrument of transfer duly executed by the Registered Owner or the duly authorized
attorney of the Registered Owner, and thereupon a new fully registered Bond or Bonds
in the same aggregate principal amount and maturity shall be issued to the transferee in
exchange therefor as provided in the Ordinance and upon the payment of charges, if any,
as therein prescribed. The Borough may treat and consider the person in whose name
this Bond is registered as the absolute owner hereof for the purpose of receiving
payment of, or on account of, the principal or redemption price, if any, hereof and
interest due hereon and for all other purposes whatsoever.
This Bond is a general obligation of the Kodiak Island Borough, and the full
faith and credit of the Borough are pledged for the payment of the principal of and
interest on this Bond as the same shall become due.
IT IS HEREBY CERTIFIED AND RECITED that all conditions, acts or things
required by the constitution or statutes of the State of Alaska to exist, to have happened
or to have been performed precedent to or in the issuance of this Bond exist, have
happened and have been performed, and that the series of Bonds of which this is one,
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together with all other indebtedness of the Borough, is within every debt and other limit
prescribed by said constitution or statutes.
IN WITNESS WHEREOF, THE KODIAK ISLAND BOROUGH, ALASKA,
has caused this Bond to be signed in its name and on its behalf by the manual or
facsimile signature of its Mayor and its corporate seal (or a facsimile thereof) to be
impressed or otherwise reproduced hereon and attested by the manual or facsimile
signature of its Clerk, all as of the day of 2003.
ATTEST:
Borough Clerk
[SEAL]
Mayor
Section 7. Execution. The Bonds shall be executed in the name of the Borough by the manual
or facsimile signature of the Mayor, and its corporate seal (or a facsimile thereof) shall be impressed
or otherwise reproduced thereon and attested by the manual or facsimile signature of the Borough Clerk.
The execution of a Bond on behalf of the Borough by persons who at the time of the execution are duly
authorized to hold the proper offices shall be valid and sufficient for all purposes, although any such
person shall have ceased to hold office at the time of delivery of the Bond or shall not have held office
on the date of the Bond.
Section 8. Payment of Principal and Interest. The Bonds shall be payable in lawful money of
the United States of America which at the time of payment is legal tender for the payment of public and
private debts. As long as the Bond Bank is the Registered Owner of the Bonds, payment of principal
and interest on the Bonds shall be made as provided in the Loan Agreement. If the Bond Bank is no
longer the Registered Owner of the Bonds, installments of principal and interest on the Bonds shall be
paid by check mailed by first class mail to the Registered Owner as of a date to be approved by the
Borough Manager or Borough Finance Director that is not less than 14 days before each installment
payment date at the address appearing on the Bond Register; provided that the final installment of
principal and interest on a Bond shall be payable upon presentation and surrender of the Bond by the
Registered Owner at the office of the Registrar.
Section 9. Registration. The Bonds shall be issued only in registered form as to both principal
and interest. The Borough designates the Borough Treasurer as Registrar for the Bonds. The Registrar
shall keep, or cause to be kept, the Bond Register at the principal office of the Borough. The Borough
covenants that, until all Bonds have been surrendered and canceled, it will maintain a system for
recording the ownership of each Bond that complies with the provisions of Section 149 of the Code.
The Borough and the Registrar may treat the person in whose name any Bond shall be registered as the
absolute owner of such Bond for all purposes, whether or not the Bond shall be overdue, and all
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payments of principal of and interest on a Bond made to the Registered Owner thereof or upon its order
shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum
or sums so paid, and neither the Borough nor the Registrar shall be affected by any notice to the
contrary.
Section 10. Transfer and Exchange Bonds shall be transferred only upon the books for the
registration and transfer of Bonds kept at the office of the Registrar. Upon surrender for transfer or
exchange of any Bond at such office, with a written instrument of transfer or authorization for exchange
in form and with guaranty of signature satisfactory to the Registrar, duly executed by the Registered
Owner or the duly authorized attorney of the Registered Owner, the Borough shall execute and deliver
an equal aggregate principal amount of Bonds of the same maturity of any authorized denominations,
subject to such reasonable regulations as the Borough may prescribe and upon payment sufficient to
reimburse it for any tax, fee or other governmental charge required to be paid in connection with such
transfer or exchange. All Bonds surrendered for transfer or exchange shall be canceled by the Registrar.
Section 11. Bonds Mutilated, Destroyed, Stolen or Lost. Upon surrender to the Registrar of a
mutilated Bond, the Borough shall execute and deliver a new Bond of like maturity and principal
amount. Upon filing with the Registrar of evidence satisfactory to the Borough that a Bond has been
destroyed, stolen or lost and of the ownership thereof, and upon furnishing the Borough with indemnity
satisfactory to it, the Borough shall execute and deliver a new Bond of like maturity and principal
amount. The person requesting the execution and delivery of a new Bond under this section shall
comply with such other reasonable regulations as the Borough may prescribe and pay such expenses
as the Borough may incur in connection therewith.
Section 12. Disposition of the Sale Proceeds of the Bonds.
(A) The sale proceeds of the Bonds representing accrued interest on the Bonds shall be
applied to pay a portion of the interest due on the Bonds on the first interest payment date for the Bonds.
(B) The sale proceeds of the Bonds, other than sale proceeds representing accrued interest
on the Bonds, shall be applied to provide for the refunding of the Refunded Bonds as provided in (C)
of this section, to pay issuance costs, and to pay costs incidental to the acquisition and safekeeping of
the Escrow Obligations.
(C) Sale proceeds of the Bonds described in (B) of this section in an amount determined by
the Borough Manager or the Borough Finance Director shall be deposited in the "1993A/1994A General
Obligation Bond Refunding Account" (the "Refunding Account ") which is hereby created, and used,
together with such other moneys as may be transferred to said account, to deposit cash and to purchase
Escrow Obligations maturing as to principal and interest in such amounts and at such times as necessary
to provide for the payment of the interest on and the redemption price of the Refunded Bonds. Each
of the Borough Manager and the Borough Finance Director is hereby authorized to subscribe for and
purchase such Escrow Obligations. Such money and Escrow Obligations shall be deposited in trust
with the Escrow Agent pursuant to the Escrow Agreement, which shall be substantially in the form
attached hereto as Exhibit A. Such money and obligations are hereby pledged to be held and applied
solely for the purpose set forth herein. When all of the Refunded Bonds shall have been redeemed and
retired, the Borough may cause to be transferred from the Refunding Account free of trust all moneys
remaining therein.
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(D) Each of the Borough Manager and the Borough Finance Director is hereby authorized
to appoint the Escrow Agent under the Escrow Agreement. The Escrow Agent shall be a bank or trust
company duly authorized to exercise trust powers and subject to examination by federal or state
authority, and shall have such additional qualifications, if any, as the Borough Manager or Borough
Finance Director may consider appropriate.
Section 13. Designation of Refunded Bonds. The Borough Manager and the Borough
Finance Director each is authorized to designate which, if any, maturities of the 1993 Bonds and 1994
Bonds authorized to be refunded in this Ordinance shall be refunded, provided that the refunding of the
1993 Bonds and 1994 Bonds so designated shall realize a debt service savings of at least two percent
of their principal amount, net of all issuance costs and underwriting discount, on a present value basis.
Section 14. Call of Refunded Bonds for Redemption. The Borough hereby elects to redeem
the Refunded Bonds on February 15, 2004. Notice of redemption of the Refunded Bonds shall be given
in the manner set forth in the ordinances authorizing the Refunded Bonds. The election to make such
call for redemption shall be subject to the delivery of the Bonds to the initial purchasers thereof and
shall become irrevocable upon such delivery.
Section 15. Tax Covenants. The Borough covenants to comply with any and all applicable
requirements set forth in the Code in effect from time to time to the extent that such compliance shall
be necessary for the exclusion of the interest on the Bonds from gross income for federal income tax
purposes. The Borough covenants that it will make no use of the proceeds of the Bonds that will cause
the Bonds to be "arbitrage bonds" subject to federal income taxation by reason of section 148 of the
Code. The Borough covenants that it will not take or permit any action that would cause the Bonds to
be "private activity bonds" as defined in Section 141 of the Code.
Section 16. Amendatory and Supplemental Ordinances.
(A) The Assembly from time to time and at any time may adopt an ordinance or ordinances
supplemental hereto, which ordinance or ordinances thereafter shall become a part of this ordinance,
for any one or more of the following purposes:
(1) To add to the covenants and agreements of the Borough in this Ordinance, other
covenants and agreements thereafter to be observed, or to surrender any right or power herein reserved
to or conferred upon the Borough.
(2) To make such provisions for the purpose of curing any ambiguities or of curing,
correcting or supplementing any defective provision contained in this Ordinance or in regard to matters
or questions arising under this Ordinance as the Assembly may deem necessary or desirable and not
inconsistent with this Ordinance and which shall not adversely affect the interests of the Registered
Owners of the Bonds.
Any such supplemental ordinance may be adopted without the consent of the Registered Owner
of any of the Bonds at any time outstanding, notwithstanding any of the provisions of subsection (B)
of this section.
(B) With the consent of the Registered Owners of not less than 60 percent in aggregate
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principal amount of the Bonds at the time outstanding, the Assembly may adopt an ordinance or
ordinances supplemental hereto for the purpose of adding any provisions to or changing in any manner
or eliminating any of the provisions of this Ordinance or of any supplemental ordinance; provided,
however, that no such supplemental ordinance shall:
(1) extend the fixed maturity of any of the Bonds, or reduce the rate of interest
thereon, or reduce the amount or change the date of any sinking fund installment, or extend the time of
payments of interest from their due date, or reduce the amount of the principal thereof, or reduce any
premium payable on the redemption thereof, without the consent of the Registered Owners of each
Bond so affected; or
(2) reduce the aforesaid percentage of Registered Owners of Bonds required to
approve any such supplemental ordinance without the consent of the Registered Owners of all of the
Bonds then outstanding.
It shall not be necessary for the consent of the Registered Owners of the Bonds under this
subsection to approve the particular form of any proposed supplemental ordinance, but it shall be
sufficient if such consent approves the substance thereof.
(C) Upon the adoption of any supplemental ordinance under this section, this Ordinance shall
be deemed to be modified and amended in accordance therewith, and the respective rights, duties and
obligations under this Ordinance of the Borough and all Registered Owners of outstanding Bonds shall
thereafter be subject in all respects to such modification and amendment, and all the terms and
conditions of the supplemental ordinance shall be deemed to be part of the terms and conditions of this
Ordinance for any and all purposes.
(D) Bonds executed and delivered after the execution of any supplemental ordinance adopted
under this section may bear a notation as to any matter provided for in such supplemental ordinance,
and if such supplemental ordinance shall so provide, new Bonds modified so as to conform, in the
opinion of the Borough, to any modification of this Ordinance contained in any such supplemental
ordinance may be prepared by the Borough and delivered without cost to the Registered Owners of the
Bonds then outstanding, upon surrender for cancellation of such Bonds in equal aggregate principal
amounts.
Section 17. Defeasance. In the event money and /or non - callable Government Obligations
maturing at such times and bearing interest to be earned thereon in amounts sufficient to redeem and
retire any or all of the Bonds in accordance with their terms are set aside in a special trust account to
effect such redemption or retirement and such moneys and the principal of and interest on such
Government Obligations are irrevocably set aside and pledged for such purpose, then no further
payments need be made to pay or secure the payment of the principal of and interest on such Bonds and
such Bonds shall be deemed not to be outstanding.
Section 18. Sale of Bonds. The Bonds shall be sold at negotiated sale to the Bond Bank as
provided in the Loan Agreement. Subject to the limitations provided in Sections 2 and 4, each of the
Borough Manager and the Borough Finance Director is hereby authorized to determine the aggregate
principal amount, principal and interest payment dates, maturity amounts, interest rates, yields, dated
date, and other details of the Bonds; provided that the true interest cost of the Bonds, expressed as an
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annual rate, does not exceed 4.0 percent. In determining the maturity amounts, interest rates and yields
for the Bonds, the Borough Manager or the Borough Finance Director shall take into account those
factors which, in his judgment, will result in the lowest true interest cost on the Bonds to their maturity,
including without limitation current financial market conditions and current interest rates for obligations
comparable in tenor and quality to the Bonds. Based upon the foregoing determinations, each of the
Borough Manager and the Borough Finance Director is authorized to execute the Loan Agreement, in
substantially the form presented at this meeting.
Section 19. Official Statement. The distribution of the preliminary Official Statement for the
Bond Bank Bonds in substantially the form presented at this meeting is approved as it pertains to the
Borough and the Bonds. The information in the preliminary Official Statement relating to the Borough
and the Bonds may be modified as the Borough Manager or the Borough Finance Director may
determine. Each of the Borough Manager and the Borough Finance Director is hereby authorized to
approve the form of the final Official Statement for the Bond Bank Bonds as it pertains to the Borough
and the Bonds.
Section 20. Authority of Officers. The Mayor, the acting Mayor, the Borough Manager, the
acting Borough Manager, the Borough Finance Director, the acting Borough Finance Director, the
Borough Clerk and the acting Borough Clerk are, and each of them hereby is, authorized and directed
to do and perform all things and determine all matters not determined by this Ordinance, to the end that
the Borough may carry out its obligations under the Bonds and this Ordinance.
Section 21. Prohibited Sale of Bonds. No person, firm or corporation, or any agent or employee
thereof, acting as financial consultant to the Borough under an agreement for payment in connection
with the sale of the Bonds is eligible to purchase the Bonds as a member of the original underwriting
syndicate either at public or private sale.
Section 22. Miscellaneous.
(A) All payments made by the Borough of, or on account of, the principal of or interest on the
Bonds shall be made on the several Bonds ratably and in proportion to the amount due thereon,
respectively, for principal or interest as the case may be.
(B) No recourse shall be had for the payment of the principal of or the interest on the Bonds or
for any claim based thereon or on this Ordinance against any member of the Assembly or officer of the
Borough or any person executing the Bonds. The Bonds are not and shall not be in any way a debt or
liability of the State of Alaska or of any political subdivision thereof, except the Borough, and do not
and shall not create or constitute an indebtedness or obligation, either legal, moral or otherwise, of said
state or of any political subdivision thereof, except the Borough.
Section 23. Continuing Disclosure. The Borough hereby covenants and agrees that it will
comply with and carry out all of the provisions of the Continuing Disclosure Certificate that has been
presented at this meeting. Notwithstanding any other provision of this Ordinance, failure of the
Borough to comply with the Continuing Disclosure Certificate shall not be considered a default of the
Borough's obligations under this Ordinance, the Loan Agreement or the Bonds; however, the beneficial
owner of any Bond or Bond Bank Bond may bring an action for specific performance, to cause the
Borough to comply with its obligations under this section.
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Section 24. Severability. If any one or more of the provisions of this Ordinance shall be
declared by any court of competent jurisdiction to be contrary to law, then such provision shall be null
and void and shall be deemed separable from the remaining provisions of this Ordinance and shall in
no way affect the validity of the other provisions of this Ordinance or of the Bonds.
Section 25. Effective Date. This ordinance shall take effect upon adoption by the Kodiak Island
Borough Assembly.
ATTEST:
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
THIS TWENTY THIRD DAY OF JANUARY 2003
dith A. Nielsen, Cb4C, Borough Clerk
Gabrielle LeDoux, Borough Mayor
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