02Introduced by Borough Manager
Requested by Finance Director
Drafted by Bond Counsel
Introduced on 06120/2015
Adopted on 06/20/2015
KODIAKISLAND BOROUGH
RESOLUTION NO F2016-05
RESOLUTION OF THE KODIAKISLAND BOROUGH
ASSEMBLY AUTHORIZING THE BOROUGH TO ISSUE
GENERAL OBLIGATION SCHOOLBONDS IN THE PRINCIPAL
AMOUNT NOTTO EXCEED $8000000 TO PROVIDE FUNDS
FORSCHOOLANDRELATED CAPITAL IMPROVEMENTS IN
10 THE BOROUGH AND TO PAYCOSTSOF ISSUING THE BONDS
11 FIXING CERTAINDETAILS OFSUCH BONDS AUTHORIZING
12 THEIR SALE AND PROVIDING FORRELATED MATTERS
13
14 WHEREAS pursuant to Ordinance No FY2OIO-03 of theKodiak Island Borough
15 Alaska the Borough adopted August 2009 question whether the Borough should
16 issue not to exceed $76310000 in general obligation bonds for the purpose of paying
17 the cost of planning designing and constructing school and related capital
18 improvements in the Borough including without limitation the reconstruction and
19 renovation of theKodiak High School referred to the regular Borough election held on
20 October 2009 as Proposition No Proposition was passed and approved and
21
22 WHEREAS1 pursuant to Resolution No FY2OI 1-18 the Borough issued its General
23 Obligation School Bond 2011 Series in the principal amount of $8000000 as
24 general obligation bond referredto In Proposition and
25
26 WHEREAS pursuant to Resolution No FY2013-26 the Borough issued its General
27 Obligation School Bond Series 2013 in the principal amount of $21595000 as
28 general obligation bond referredto in Proposition and
29
30 WHEREAS pursuant to Resolutioq No FY2014-24 the Borough issued its General
31 Obligation School Bond 2014 Series in the principal amount of $22660000 as
32 general obligation bond referredto in Proposition and
33
34 WHEREAS $18310000 principal amount of general obligation bonds remainsunissued
35 under Proposition and
36
37 WHEREAS the Borough received $7000000 grantfunding that may ultimately reduce
38 the amount of bond proceeds needed for the project and
39
40 WHEREAS the Assembly finds that it isin the best interest of the Borough to plan
41 design and constructtheschool capital improvements described in Proposition as the
42 reconstruction and renovation of theKodiak High School the Project and to issue not
43 to exceed $8000000 principal amount of general obligation bonds referred to in
44 Proposition to pay part of the costs of the Project and costs of issuing the bonds and
45
46 WHEREAS Section 29.47.410 of theAlaskaStatutes provides that the Assembly by
47 resolution may provide for the form and manner of safe of bonds and notes and
48
Kodiak Island Borough Alaska Resolution No FY2OI 6-05
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49 WHEREAS the Assembly findsthat it is necessary and appropriate to delegate to each
50 of the Borough Manager and Borough Finance Director authority to determine the
51 maturity amounts interest rates and other detailsof the bonds and to determineother
52 mailers that are not provided for in this resolution including without limitation whether to
53 sell the Bonds to the Alaska Municipal BondBank the uBond Bank oranother
54 FinancialInstitutionor to offer the Bonds at public sale
55
56
57 NOW THEREFORE BE IT RESOLVED BY THE ASSEMBLYOF THE KODIAK
58 ISLAND BOROUGH THAT
59
60 SectIon Definitions In addition to terms which are defined in the recitals above
61 the following terms shall have the following meanings in this Resolution
62
63 Assembly means the Assembly of the Kodiak Island Borough as
64 the general legislativeauthority of theKodiak Island Borough asthe
65 same shall be duly and regularly constituted fromtime to time
66
67 Bond or Bonds means any of the General Obligation School
68 Bonds of theKodiak Island Borough the issuance and sale of which are
69 authorized herein
70
71 Bond Bank means the Alaska Municipal Bond Bank public
72 corporation of theState of Alaska
73
74 Bond Bank BondsN means the seriesof general obligation bonds
75 issued by the Bond Bank all or part Of the proceeds of which are used to
76 purchase the Bonds
77
78 Bond Register means the registration books maintained by the
79 Registrar whichincludethe names and addresses of the Registered
80 Owners of the Bonds ortheir nominees
81
82 Borough means theKodiak Island Borough municipal
83 corporation of theState of Alaska organized as second class borough
84 under Title 29 of the AlaskaStatutes
85
86 Borough Managermeans the Manager or Administrative Official
87 of the Borough
88
89 Code means the Internal Revenue Code of 1986 as amended
90 fromtime to time together with all regulations applicable thereto
91
92 U1 or Costs means thecost of planning designingacquiring
93 property for acquiringconstructing installing and equipping the Project
94 including interest on the Bonds during the period of planning designing
95 acquiringproperty for acquiringconstructing installing and equipping
96 the Project thecost whether incurred by the Borough or by another of
97 field surveys andadvance planning undertaken in connection with the
98 Project properly allocable to the Project thecost of acquisition of any
99 land or interesttherein required as the site or sitesof the Project or for
100 use in connection therewith thecost of any indemnity and surety bonds
101 and premiums on insuranceincurred in connection with the Project prior
Kodiak Island Borough Alaska Resolution No FY20 6-05
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102 to or during construction thereof all relateddirect administrative arid
103 inspection expenses whether incurred by the Borough or by another in
104 connection with the Project prior to or during constructionthereof and
105 allocable portions ofdirect costs of the Borough legal fees costs of
106 issuance of the Bonds by the Borough including financingcharges and
107 fees and expenses of bond counsel financial advisors and consultants in
108 connection therewith thecost of any bond insurance premium andbond
109 ratings the cost of audits thecost of all machinery apparatus and
110 equipment cost of engineering architectural services designs plans
111 speccations and surveys estimates of cost thereimbursement of all
112 moneys advanced from whatever source for the payment of any Item or
113 items of cost of the Project and ail other expenses necessary or
114 incidental to the acquisition and development of the Project the financing
115 thereof and the putting of the same in useand operation
116
117 Financial Institution means any bank or other financialinstitution
118 insured by the Federal Deposit Insurance Corporation or the Federal
119 Savings andLoan Insurance Corporation
120
121 Government Obligations means obligations that are either
122 direct obligations of theUnited States of America or Ii obligations of
123 an agency or instrumentality of the United Statesof America the timely
124 payment of the principal of and interest on which are unconditionally
125 guaranteed by the United States of America
126
127 LoanAgreement means the Loan Agreement between the
128 Borough and the BondBank orotherFinancial Institution concerning the
129 Bonds
130
131 Registered Owner means the person named as the registered
132 owner of Bond in the Bond Register
133
134 Registrar means the Borough Finance Director or any
135 successor that the Borough may appoint by resolution
136
137 Resolution means this Resolution No FY2016-of the
138 Borough
139
140 SectIon Authorization of Bonds and Purpose of Issuance For the purpose of
141 providing funds for financing the Costs of the Project the Borough shall
142 issue and sell general obligation bonds designated Kodiak Island
143 Borough Alaska General Obligation School Bonds the Bonds in the
144 aggregate principal amount of notto exceed $8000000 The proceeds
145 of the Bonds shall beused to pay Costs of the Project The Project
146 serves public purpose of the Borough
147
148 The Manager andlor theFinance Director are hereby authorized to
149 determine whether the Bonds shall be sold to the BondBank or
150 Financial Institution or soldat public sale and whether to issue the Bonds
151 in one or more issues but in no event shall the aggregate principal
152 amount of the Bondsexceed $8000000
153
Kodiak Island Borough Alaska Resolution No FY2016-05
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154 SectIon Obligation of Bonds The Bonds shall be direct and general obligations of
155 the Borough and the full faith and creditof the Borough are hereby
156 pledged to the payment of the principal of and interest on the Bonds The
157 Borough hereby irrevocably pledges and covenants that it wilt levy and
158 collect taxes upon all taxable property within the Borough without
159 limitation as torate or amount in amounts sufficient together with other
160 funds legally available therefor to pay the principal of and interest on the
161 Bonds as the same becomedueand payable
162
163 SectIon Designation Maturities Interest Rates and Other Detailsof Bonds The
164 Bonds shall be designated 4Kodiak Island Borough Alaska General
165 Obligation School Bonds TheBonds shall be in thedenomination of
166 $5000 or any integralmultiple thereof shall be numbered separately in
167 the manner and with such additional designation asthe Registrar deems
168 necessary for purposes of identification and may have endorsed thereon
169 such legends or text as may be necessary or appropriate to conform to
170 the rules and regulations of any governmental authority or any usage or
171 requirement of law with respect thereto
172
173 TheBonds shall mature in one or more years commencing no earlier than
174 2015and ending no later than 2035 The Bonds shall bear interest from
175 their date payable commencing on date on or after April 2016 and
176 semi-annually thereafter Interest will be computed on thebasis of 360-
177 day year consisting of twelve 30-day months
178
179 Subject to Section and the remainder of this Section the dated date
180 the principal and interest payment dates the record dates for interest
181 payments the aggregate principal amount the principal amount of each
182 maturity and the interestrates on the Bonds shall be determined at the
183 time of execution of the Loan Agreement at or before public sale of the
184 Bonds under Section 17
185
186 SectIon Optional Redemption The Bonds if any subject to optional redemption
187 by the Borough the timeortimes when such Bonds are subject to
188 optional redemption the terms upon which such Bonds may be
189 redeemed and the redemption price or redemptionprices for such
190 Bonds shall be determined at the time of sale of the Bonds by the
191 BoroughManager or Finance Director
192
193 Section Selection of Bonds for Redemtion Notice of Redemption
194
195 Selection of Bonds for Redemption When and if the BondBank
196 or FinancialInstitution is the Registered Owner of the Bonds the
197 selection of Bonds to be redeemed shall be made as provided in the Loan
198 Agreement When and if the BondBank or FinancialInstitution is not
199 the Registered Owner of the Bonds the selectionof Bonds to be
200 redeemed shall be made as provided in this subsection If the
201 Borough redeems at any one timefewer than all of the Bonds having the
202 same maturity date the particular Bonds or portions of Bonds of such
203 maturity to be redeemed shall be selected by lot or in such other manner
204 determined by the Registrar in increments of $5000 In thecase of
205 Bond of denomination greater than $5000 the Borough shalltreat such
206 Bond as representing such number of separate Bonds each of the
Kodiak Island Borough Alaska Resolution No FY2016-05
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207 denomination of $5000 as is obtained by dividing the actual principal
208 amount of suchBond by $5000 In theevent that only portion of the
209 principal amount of Bond is redeemed upon surrender of such Bond at
210 the office of the Registrar there shall be issued to the Registered Owner
211 without charge therefor for thethen unredeemed balance of the principal
212 amount thereof at the option of the Registered Owner Bond or Bonds
213 of like maturity and interestrate in any of the denominationsauthorized
214 herein
215
216 Notice of Redemption en and if the Bond Bank or Financial
217 Institution is the Regltered Owner of the Bonds notice of any intended
218 redemption of Bonds shall be given as provided in the Loan Agreement
219 When and if the BondBank or FinancialInstitution is notthe Registered
220 Owner of the Bonds notice of any intended redemption of Bonds shall be
221 given as provided in this subsection Notice of redemption shall be
222 mailed not less than 20 or more than 45 days prior to thedate fixedfor
223 redemption by first class mail to Registered Owners of the Bonds to be
224 redeemed at their addresses as they appear on the Bond Register onthe
225 day thenotice is prepared Notice of redemption shall be deemed to
226 havebeen given when the notice is mailed as herein provided whether or
227 not it is actually received by the Registered Owners All notices of
228 redemption shall be dated and shall state the redemption date the
229 redemptIon price if fewer than all outstanding Bonds are to be
230 redeemed the identification and in the case of partial redemption the
231 respective principal amounts of the Bonds to be redeemed that on
232 the redemption datethe redemption price will become dueand payable
233 upon each such Bond or portion thereof called for redemption and that
234 interest thereon shall cease to accrue from and after said date and
235 the place where such Bonds are to be surrendered for payment of the
236 redemption price which place of payment shall be the officeof the
237 Registrar
238
239 Official notice of redemption having been given as stated above Bonds or
240 portions of Bonds to be redeemed shall on the redemption date become
241 due and payable at the redemption price therein specified and from and
242 after such date such Bonds or portions of Bonds shall cease to bear
243 interest Upon surrender of such Bonds for redemption in accordance
244 withsaid notice such Bonds shall be paid at the redemptionprice
245 Installments ofinterest dueon or prior to the redemption date shall be
246 payable as herein provided for payment of interest All Bonds which have
247 been redeemed shall be canceled and destroyed by the Registrar and
248 shall not be reissued
249
250 Eachcheck orother transferof fundsissued to pay the redemption price
251 of Bonds shall bear the CUSIP number if any identifying by maturity the
252 Bonds being redeemed with the proceeds of suchcheck or other transfer
Kodiak Island Borough Alaska Resolution No FY20 16-05
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253Section Form of Bond EachBond shall be in substantially the following form
254 with such variations omissions and insertions as may be required or
255 permitted by this Resolution
256
257 UNITEDSTATES OF AMERICA
258
259 KODIAK ISLAND BOROUGH ALASKA
260
261 NO ______$________
262
263 GENERAL OBLIGATION SCHOOL BOND
264
265 REGISTERED OWNER
266
267 PRINCIPAL AMOUNT
268
269 The Kodiak Island Borough the Borough municipal
270 corporation of theState of Alaska hereby acknowledges itself to owe and
271 for valuereceived promises to pay to the Registered Owner identified
272 above1 or its registered assigns the principal amount identified above in
273 the following installments on each of the following years and to pay
274 interest on such installments from thedate hereof payable on ____
275 201_I and semiannually thereafter on ____and ____of each year
276 at the rates per annum as follows
277
278 MaturityPrincipal Interest
279 Date Amount
280
281
282
283 When and if this Bond is owned by theAlaska Municipal Bond
284 Bank or Financial Institution payment of principal and interestshall be
285 made as provided in the Loan Agreement between the BondBank or
286 FinancialInstitution and the Borough the Loan Agreement When and
287 if this Bond is not owned by the BondBank or Financial Institution
288 installmentsof principal of and interest on this Bond shall be paidby
289 check or draft mailed by first classmail to the Registered Owner as of the
290 close of business on the15th day of the month before each installment
291 payment date provided that the final installment of principal of and
292 interest on this Bond shall be payable upon presentation and surrender of
293 this Bond by the Registered Owner at the office of the Registrar Interest
294 will be computed on the basis of 360-day year consisting of twelve 30-
295 day months Both principal of and interest on this Bond are payable in
296 lawful money of theUnitedStates of America which on the respective
297 dates of payment thereof shall be legal tender for the payment of public
298 and private debts
299
300 This Bond is one of the General Obligation School Bonds of the
301 Kodiak Island Borough Alaska of like tenor and effect except as to
302 interest rate serial number right of redemption or prepayment and
303 maturity1 and constituting Bonds authorized for the purpose of paying the
304 cost of school and related capital improvements in the Borough and is
305 issuedunderResolution No FY2016-_of the Borough entitled
Kodiak Island Borough Alaska Resolution No FY20 6-05
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306
307 RESOLUTION OF THE KODIAKISLAND BOROUGHr-308 ASSEMBLY AUTHORIZiNG THE BOROUGH TO
309 ISSUE GENERAL OBLIGATION SCHOOLBONDS IN
310 THE PRINCIPAL AMOUNT OF NOTTO EXCEED
311 $8000000TO PROVIDE FUNDS FORSCHOOLAND
312 RELATED CAPITAL IMPROVEMENTS IN THE
313 BOROUGH AND TO PAYCOSTS OF ISSUING THE
314 BONDS FIXING CERTAIN DETAILS OFSUCH
315 BONDS AUTHORiZING THEIR SALE AND
316 PROVIDING FORRELATEDMATTERS
317
318 the Resolution
319
320 The Bonds of principal ofthis Bondjmaturing onand
321 after _____20_shall be subject to prepayment onand after _____
322 20_at the option of the Borough to any applicableprovisions
323 of the Loan Agreement in such principal amounts and from such
324 maturities as the Borough may determine and by lot within maturity at
325 redemption price equal to the principal amount to be prepaid plus
326 accrued interest to thedate of prepayment
327
328 This Bond is transferable as provided in the Resolutiononly
329 upon the Bond Register of the Borough and ii upon surrender of this
330 Bond together with written instrument oftransfer duly executed by the
331 Registered Owner or the duly authorized attorney of the Registered
332 Owner and thereupon new fully registered Bond or Bonds in the same
333 aggregate principal amount and maturity shall be issued to the transferee
334 in exchange therefor as provided in theResolution and upon the payment
335 of charges if any as therein prescribed The Borough may treat and
336 consider the person in whose name this Bond is registered as the
337 absolute owner hereof for the purpose of receiving payment of or on
338 account of the principal or redemption price if any hereof end interest
339 duehereon and for all other purposes whatsoever
340
341 This Bond is general obligation of theKodiak Island Borough
342 and the full faith and creditof the Borough are pledged for the payment of
343 the principal of and iqterest on this Bond as the same shall become due
344
345 ITIS HEREBY CERTIFIED AND RECITED that all conditions
346 acts or thingsrequired by the constitution or statutesof the State of
347 Alaska to exist to have happened or to havebeen performedprecedent
348 to or in the issuance ofthis Bond exist have happened and havebeen
349 performed and that the seriesof Bonds of which this is one together with
350 all otherindebtedness of the Borough is within everydebt and other limit
351 prescribed by such constitution orstatutes
352
353 IN WITNESS WHEREOF THE KODIAK ISLAND BOROUGH
354 ALASKA has caused this Bond to be signed in its name andon its behalf
355 by the manual or facsimile signature of its Mayor and its corporate seal
356 or facsimile thereof to be impressed orotherwise reproduced hereon
357 and attested by the manual or facsimile signature of its Clerk all as of the
358 ____day of 2p15
Kodiak Island Borough Alaska Resolution No FY2016-05
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359
360 KODIAK ISLAND BOROUGH
361
362 /speclmen/
363 Borough Mayor
364
365 ATTEST
366
367 Ispecimenl
368 Borough Clerk
369
370 SectIon Execution TheBonds shall be executed in the name of the Borough by
371 the manual or facsimile signature of the Mayor and its corporate seal or
372 facsimile thereof shall be impressed or otherwise reproduced thereon
373 and attested by the manual or facsimile signature of the Borough Clerk
374 The execution of Bondon behalf of the Borough by persons who at the
375 time of theexecutionare duly authorized to holdthe proper officesshall
376 be valid and sUfficient for all purposes although any such person shall
377 haveceased to hold office at the time of delivery of the Bond or shall not
378 have held office onthedate of the Bond
379
380 SectIon Payment ofPrincipal and Interest TheBonds shall be payable in lawful
381 money of theUnitedStates of America which at the time of payment is
382 legal tender for the payment of public and private debts When and if the
383 BondBank orFinancialInstitution is the Registered Owner of the
384 Bonds payment of principal of and interest on the Bonds shall be made
385 as provided in the Loan Agreement When and if the BondBank or
386 FinancialInstitution is notthe Registered Owner of the Bonds
387 installments of principal of and interest on the Bonds shall be paidby
388 check mailed by first class mail to the Registered Owner as of the record
389 date for the installment payment at the address appearing on the Bond
390 Registerprovided that the final installmentof principal and interest on
391 Bond shall be payable upon presentation and surrender of the Bond by
392 the Registered Owner at the office of the Registrar
393
394 Section 10 Registration The Bonds shall be issued only in registered form as to
395 both principal and interest The Borough designates the Borough
396 Finance Director as Registrar for the Bonds The Registrar shall keep or
397 cause to be kept the Bond Register at the principal office of the Borough
398 The Borough covenants that until all Bonds havebeen surrendered and
399 canceled it will maintain system for recording the ownership of each
400 Bond that complies with the provisions of Section149 of the Code The
401 Borough and the Registrar may treat the person in whose name any Bond
402 shall be registered asthe absolute owner of such Bond for all purposes
403 whether or notthe Bond shall be overdue and all payments of principal of
404 and interest on Bond made to the Registered Owner thereof or upon its
405 order shall be valid and effectualto satisfy and discharge the liability upon
406 such Bond to the extent of the sum or sums so paid and neither the
407 Borough nor the Registrar shall be affected byany notice to the contrary
408
409SectIon 11 Transfer and Exchange Bonds shall be transferred only upon the Bond
410 Register Upon surrender for transfer or exchange of any Bond at the
411 office of the Registrartogether with written instrument oftransfer or
Kodiak Island Borough Alaska Resolution No FY2016-05
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412 authorization for exchange in form and with guaranty of signature
413 satisfactory to the Rgistrar duly executed by the Registered Owner or
414 the duly authorized attorney of the Registered Owner the Borough shall
415 execute and deliver an equalaggregate principal amount of Bonds of the
416 same maturity of any authorized denominations subject to such
417 reasonable regulations asthe Borough may prescribe and upon payment
418 sufficient to reimburse it for any tax fee or other governmental charge
419 required to be paid in connectionwith such transferor exchange All
420 Bonds surrendered for transfer or exchange shall becanceled by the
421 Registrar
422
423 Section 12 Bonds Mutilated Destroyed Stolen or Lost Upon surrender to the
424 Registrar of mutilated Bond the Borough shall execute and deliver
425 new Bond of like maturity and principal amount Upon filing with the
426 Registrar of evidence satisfactory to the Borough that Bondhasbeen
427 destroyed stolen or lost and of the ownership thereof and upon
428 furnishing the Borough with indemnity satisfactory to It the Borough shall
429 execute and deliver new Bond oflike maturity and principal amount
430 The personrequesting the execution and delivery of new Bond under
431 this section shall comply with such otherreasonable regulations as the
432 Borough may prescribe and shall pay such expenses as the Borough may
433 incur in connection therewith
434
435 Section 13 Disposition of theSale Proceeds of the Bonds The sale proceeds of the
436 Bonds representing accrued interest on the Bonds shall be applied to pay
437 portion of the interest due on the Bonds on the first interest payment
438 date for the Bonds The sale proceeds of the Bonds representing original
439 issue premium on the Bonds shall be applied to pay portion of the
440 interest due on the Bonds on the first interest payment date for the
441 Bonds or Costs of the Project and shall be deposited in such manner as
442 the BoroughManager or the Borough Finance Director may determine
443 The remaining sale proceeds of the Bonds shall be applied to pay Costs
444 of the Project and shall be deposited in the appropriate funds or accounts
445 of the Borough for such purposes
446
447SectIon 14 Tax Covenants The Borough covenants to comply with any and all
448 applicablerequirements set forth in the Code In effect fromtime to time to
449 theextent that such compliance shall be necessary for the exclusion of
450 the interest on the Bonds from gross income for federal income tax
451 purposes The Borough covenants that it will make nouse of the
452 proceeds of the Bonds which will cause the Bonds to be arbitrage bonds
453 subject to federal income taxation by reason of Section 148 of the Code
454 The Borough covenants that it will nottake or permit any action that
455 would cause the Bonds to be private activity bonds as defined in Section
456 141 of the Code
457
458Section 15 Amendatory and Supplemental Resolutions
459
460 The Assembly fromtime to time and at any time may adopt
481 resolutionorresolutions supplementalhereto which resolution or
462 resolutions thereaftershall become part ofthis Resolution for any one
463 or more of the following purposes
464
Kodiak Island Borough Alaska Resolution No FY2016-05
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465 Toadd to thecovenants and agreements of the Borough in
466 this Resolution other covenants and agreements thereafter to be
467 observed or to surrender any right or power hereinreserved to or
468 conferred upon the Borough
469
470 To make such provisions for the purpose of curing any
471 ambiguities or of curing correcting or supplementing any defective
472 provision contained in this Resolution or in regard to matters or
473 questions arising undr this Resolution as the Assembly may
474 deem necessary or desirable and not inconsistent with this
475 Resolution and which shall not adversely affect the interests of the
476 Registered Owners of the Bonds
477
478 Any such supplemental resolution may be adopted withouttheconsent of
479 the Registered Owners of any of the Bonds at any time outsLanding
480 notwithstanding any of the provisions of subsection ofthis section
481
482 Withtheconsent of the Registered Owners of not less than 80
483 percent in aggregate principal amount of the Bonds at thetime
484 outstanding the Assembly may adopt resolution or resolutions
485 supplemental hereto for the purpose of adding any provisions to or
486 changing in any manner or eliminating any of the provisions ofthis
487 Resolution or of any supplementalresolutionprovided however that no
488 such supplemental resolution shall
489
490 Extendthe fixed maturity of any of the Bonds or reduce
491 the rate of interest thereon or extend the time of payments of
492 interest from their due date or reduce the amount of the principal
493 thereof or reduce any premium payable on the redemption
494 thereof without theconsent of the Registered Owner of each
495 Bond so affected or
496
497 Reduce the aforesaid percentage of Registered Owners of
498 Bonds required to approve any such supplemental resolution
499 without theconsent of the Registered Owners of all of the Bonds
500 then outstanding
501
502 It shall not be necessary for the consent of the Registered Owners of the
503 Bonds under this subsection to approve the particular form of any
504 proposedsupplementalresolution but it shall be sufficient if such consent
505 approves the substance thereof
506
507 Upon the adoption of any supplemental resolution under this
508 section this Resolution shall be deemed to be modified and amended in
509 accordance therewith and the respective rights duties and obligations
510 under this Resolution of the Borough and all Registered Owners of
511 outstanding Bonds shall thereafter be subject in all respects to such
512 modification and amendment and all the terms and conditions of the
513 supplemental resolutionshall be deemed to be part of the terms and
514 conditions of this Resolution for any and all purposes
515
516 Bonds executed and delivered after the adoption of any
517 supplemental resolution under this section may bearnotation as to any
Kodiak Island Borough Alaska Resolution No FY2016-05
Page 10 of 12
518 matter provided for in such supplemental resolution and if such
519 supplemental resolutionshall so provide new Bonds modified soas to
520 conform in the opinion ofthe Borough to any modification of this
521 Resolution contained in any such supplemental resolution may be
522 prepared by .the Borough and deliveredwithoutcost to the Registered
523 Owners of the Bonds then outstanding upon surrender for cancellationof
524 such Bonds in equalaggregate principal amounts
525
526Section 16 Defeasance In theevent money and/or non-callable Government
527 Obligationsmaturing at such times and bearing interest to be earned
528 thereon in amounts sufficient to redeem and retire any or all of the Bonds
529 in accordance with their termsare set aside in special trust account to
530 effect such redemption or retirement andsuch moneys and the principal
531 of and interest onsuch Government Obligations are irrevocably set aside
532 and pledged for such purpose then no further payments needbe made to
533 pay orsecure the payment of the principal of and interest onsuchBonds
534 andsuch Bonds shall be deemed not to be outstanding
535
536 Section 17 Sale of Bonds The Bonds shall be sold at negotiated sale to the Bond
537 Bank or Financial Institution as provided in the form of Loan Agreement
538 or at public sale asthe BoroughManager and Finance Director determine
539 isin the best interestof the Borough Subject to the limitations provided
540 in Sections andeach of the BoroughManager and the Borough
541 Finance Director is hereby authorized to determine the aggregate
542 principal amount maturity amounts interest rates yields dated date
543 principal and interest payment dates redemption terms if any for the
544 Bonds and other detailsof the Bonds provided that the trueinterest cost
545 of the Bonds expressed as an annual rate does not exceed 6.0 percent
546 In determining the maturity amounts interest rates yields and
547 redemption terms if any for the Bonds the Borough Manager or Borough
548 FinanceDirector shall take into account those factors which in the
549 judgment of each will result in thelowest trueinterest cost on the Bonds
550 to their maturity including without limitation current financial market
551 conditions and current interestrates for obligations comparable in tenor
552 and quality to the Bonds Based upon the foregoingdeterminations the
553 BoroughManager and the Borough FinanceDirector each is authorized
554 to executethe Loan Agreement In substantially the form presented at this
555 meeting or to sell the Bonds at public sale as they deem appropriate and
556 cost effective to and in the best interest of the Borough
557
558 SectIon 18 Authority of Officers The Mayor the Borough Manager the Borough
559 Finance Director and the Borough Clerk each is authorized and directed
560 to doand perform all things and determine all matters not determined by
561 this Resolution to the end that the Borough may carry out its obligations
562 under the Bonds and this Resolution
563
564 Section 19 Prohibited Sae of Bonds No person firm or corporation or anyagent or
565 employee thereof acting as financial consultant to the Borough under an
566 agreement for payment in connection with the saleofthe Bonds is eligible
567 to purchase the Bond as member of the original underwritingsyndicate
568 either at public or private sale
569
Kodiak Island Borough Alaska Resolution No FY2016-05
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570 SectIon 20 Ongoing Disclosure The Borough acknowledges that under Rule5c2-
571 12 of the Securities and Exchange Commission the Rule the Borough
572 may now or in the future be an obligated person In accordance with the
573 Rule and as the Bond Bank or FinancialInstitution may require the
574 Borough shall undertake to provide certain annual financial information
575 and operating dataas shall be setforth in the Loan Agreement
576
577 SectIon 21 Miscellaneous
578
579 All payments made by the Borough of or on account of the
580 principal oforinterest on the Bonds shall be made on theseveral Bonds
581 ratably and in proportion to the amount due thereon respectively for
582 principal or interest asthecase may be
583
584 No recourse shall behad for the payment of the principal of or the
585 interest on the Bonds orfor any claim based thereon or on this Resolution
586 against any member of the Assembly or officerof the Borough or any
587 person executing the Bonds The Bonds are not and shall not be in any
588 way debt or liability of theState of Alaska or of any political subdivision
589 thereof except the Borough anddo not and shall not create orconstitute
590 an Indebtedness or obligation either legal moral or otherwise of such
591 state or of any political subdivision thereof except the Borough
592
593 SectIon 22 Severability If any one or more of the provisions ofthis Resolution shall
594 be declared by any court of competent jurisdiction to be contrary to law
595 then such provision shall be null and void and shall be deemed separable
596 from the remainingprovisions of this Resolution and shall in no way affect
597 the validity of the other provisions ofthis Resolution or of the Bonds
598
599 SectIon 23 Effective Date This Resolution shall become effective upon passage and
600 approval
601
602 ADOPTED BY THE ASSEMBLYOF THE KODIAK ISLAND BOROUGH
603 THIS TWENTIETH DAY OF AUGUST 2015
604
605 KODIAKISLAND BOROUGH
606
610 Jerrol Friend BoroughMayor
611
612 ATTEST
______
617 Nova Javie Borough erk
Kodiak Island Borough Alaska Resolution No FY2016-05
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