Tab_113UNITED STATES OF AMERICA
.. ..jF. /
R-I t. l_ \.JHJ
: $2,635,000
STATE OF ALASKA
CITY AND BOROUGH OF JUNEAU
GENERAL OBLIGATION BOND, 2016
INTEREST RATE: SEE BELOW
FINAL MATURITY DATE: DECEMBER 1, 2026
REGISTERED OWNER: ALASKA MUNICIPAL BOND BANK
PRINCIPAL AMOUNT: TWO MILLION SIX HUNDRED THIRTY-FIVE THOUSAND AND NO/100 DOLLARS
THE CITY AND BOROUGH OF JUNEAU, ALASKA (the "City and Borough"), hereby acknowledges itself to owe and for
value received promises to pay to the Registered Owner identified above, or registered assigns, the Principal Amount indicated above in
accordance with the installment payment schedule set forth below (unless prepaid prior thereto as provided herein) and to pay interest
thereon from November 3, 2016, or the most recent date to which interest has been paid or duly provided for until payment of this bond
at the interest rates set forth below, payable on December 1, 2016 and semiannually thereafter on the first day of each June and
December.
Maturity Years Principal Interest
(December 1) Amounts Rates
2017 8 215,000 2.00%
2018 225,000 4.00
2019 235,000 4.00
2020 245,000 4.00
2021 255,000 4,00
2022 265,000 5,00
2023 280,000 5.00
2024 290,000 5.00
2025 305,000 5,00
2026 320,000 5.00
Both principal of and interest on this bond are payable in lawful money of the United States of America. Installments of
principal of and interest on this bond shall be paid by check or draft mailed to the Registered Owner at the address appearing on the
Bond Register on the 151h day of the month preceding the interest payment date, and principal of this bond shall be payable upon
presentation and surrender of this bond by the Registered Owner at the principal office of the Finance Director of the City and Borough
of Juneau, Alaska (the "Bond Registrar"), Notwithstanding the foregoing, so long as the Bond Bank is the Registered Owner of this
bond, payments of principal of and interest on this bond shall be made to the Bond Bank in accordance with the Loan Agreement.
This bond is a general obligation bond of the Borough and is issued pursuant to an election authorizing the same for the
purpose of making capital improvements to facilities of the City and Borough.
This bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under Ordinance
Serial No, 2012-44 of the City and Borough (the "Bond Ordinance") until the Certificate of Authentication hereon shall have been
manually signed by or on behalf of the Bond Registrar. Capitalized terms used in this bond and not otherwise defmed herein have the
meanings given such terms in the Bond Ordinance.
This bond is issued under and in accordance with the provisions of the Constitution and applicable statutes of the State of
Alaska and ordinances duly adopted by the Assembly, including the Bond Ordinance.
This bond is not subject to prepayment.
The City and Borough has obligated and bound itself to make annual levies of ad valorem taxes upon all the taxable property
within the City and Borough, without limitation as to rate or amount, in amounts sufficient, together with such other moneys of the City
and Borough available for such purposes as the Assembly of the City and Borough may, from time to time, appropriate and make
available to pay the principal of and interest on this bond as the same shall become due. The full faith, credit and resources of the City
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and Borough are hereby irrevocably pledged for the levy of such taxes and the prompt payment of such principal and interest. The
pledge of tax levies for payment of principal of and interest on the bond may be discharged prior to maturity of the bond by making
provision for the payment thereof on the terms and conditions set forth in the Bond Ordinance.
The bond is not a "private activity bond" as such term is defined in the Internal Revenue Code of 1986, as amended (the
"Code"). The City and Borough has not designated the bond as a "qualified tax-exempt obligation" under Section 265(b) of the Code for
investment by banks, thrift institutions and other financial institutions.
It is hereby certified that all acts, conditions and things required by the Constitution and statutes of the State of Alaska to exist,
to have happened, been done and performed precedent to and in the issuance of this bond have happened, been done and performed and
that the issuance of this bond does not violate any constitutional, statutory or other limitation upon the amount of bonded indebtedness
that the City and Borough may incur.
IN WITNESS WHEREOF, the City and Borough of Juneau, Alaska has caused this bond to be executed by the manual or
facsimile signature of its Finance Director and attested by the manual or facsimile of the Clerk, and the official seal of the City and
Borough to be impressed, imprinted or otherwise reproduced hereon, as of this 3rd day of November, 2016.
• GU, CITY AND BOROUGH OF JUNEAU, ALASKA
4 _ By___
Finance Director
ATTEST:
lerk
CERTIFICATE OF AUTHENTICATION
Date of Authentication: November 3, 2016
This bond is the General Obligation Bond, 2016 of the City and Borough of Juneau, Alaska, dated November 3, 2016, and
described in the within-mentioned Bond Ordinance.
Finance Director, City and Borough of Juneau, Alaska,
as Bond Registrar
By
~a\h 2 ~ o
Authoriz d Signer
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November 3, 2016
City and Borough of Juneau
Juneau, Alaska
Alaska Municipal Bond Bank
Juneau, Alaska
Re: City and Borough of Juneau, Alaska
General Obligation Bond, 2016 -$2,635,000
Ladies and Gentlemen:
We have acted as bond counsel to the City and Borough of Juneau, Alaska (the "City and Borough"), and have examined a certified transcript
of the proceedings taken in the matter of the issuance by the City and Borough of its General Obligation Bond, 2016, dated November 3, 2016, in the total
principal amount of $2,635,000 (the "Bond"), The Bond is issued pursuant to Ordinance Serial No. 2012-44 of the City and Borough passed on
December 17, 2012, and Resolution No. 2773 passed on October 17, 2016 (together, the "Bond Ordinance"). As authorized by the Bond Ordinance, the
City and Borough has entered into a loan agreement dated October 18, 2016 (the "Loan Agreement") with the Alaska Municipal Bond Bank (the "Bond
Bank") for the sale of the Bond to the Bond Bank, Capitalized terms not otherwise defined in this opinion shall have the meanings given such terms in the
Bond Ordinance,
The Bond is not subject to prepayment.
As to questions of fact material to our opinion, we have relied on representations of the City and Borough contained in the Bond Ordinance and
Loan Agreement and in the certified proceedings and other certifications of public officials and others furnished to us without undertaking to verity the
same by independent investigation.
Based on the foregoing, we are of the opinion that, under existing law:
1, The Bond has been legally issued and constitutes a valid and binding general obligation of the City and Borough, except to the
extent that the enforcement of the rights and remedies of the holders and owners of the Bond may be limited by laws relating to bankruptcy, insolvency,
moratorium, reorganization or other similar laws of general application affecting the rights of creditors, by the application of equitable principles and the
exercise ofjudicial discretion,
2. Both principal of and interest on the Bond are payable out of annual levies of aciva/oram taxes lobe made upon all of the taxable
property within the City and Borough without limitation as to rate or amount and in amounts which, together with other available funds, will be sufficient
to pay such principal and interest as the same shall become due,
The City and Borough is duly organized and legally existing under the laws of the State of Alaska,
4, The Bond has been duly authorized and executed by the City and Borough and is issued in full compliance with the provisions of
the Constitution and laws of the State of Alaska and the legislation of City and Borough relating thereto,
5. The Loan Agreement has been duly authorized, executed, delivered by, and (assuming due authorization, execution and delivery of
the Loan Agreement by the Bond Bank) constitutes a valid and binding agreement of the City and Borough, enforceable in accordance with its terms,
except for provisions therein that purport to obligate the City and Borough to indemnity the Bond Bank and except to the extent that the enforcement of the
rights and remedies of the Bond Bank may be subject to the laws of bankruptcy, insolvency, moratorium, reorganization or other similar laws of general
application affecting the rights of creditors, by the application of equitable principles and the exercise ofjudicial discretion,
6. Interest on the Bond is excludable from gross income for federal income tax purposes and is not an item of tax preference for
purposes of the federal alternative minimum tax imposed on individuals and corporations; however, interest on the Bond is taken into account in
determining adjusted current earnings for the purpose of computing the alternative minimum tax imposed on certain corporations. The opinion set forth in
the preceding sentence is subject to the condition that the City and Borough comply with all requirements of the Internal Revenue Code of 1986, as
amended (the "Code"), that must be satisfied subsequent to the issuance of the Bond in order that the interest thereon be, and continue to be, excludable
from gross income for federal income tax purposes. The City and Borough has covenanted to comply with all applicable requirements. Failure to comply
with certain of such covenants may cause interest on the Bond to be included in gross income for federal income tax purposes retroactively to the date of
issuance of the Bond,
7. Interest on the Bond is not included in taxable income for purposes of the Alaska income tax imposed on corporations. Interest on
the Bond may be indirectly subject to the Alaska alternative minimum tax imposed on corporations to the extent that interest on the Bond is subject to the
federal alternative minimum tax,
The City and Borough has not designated the Bond as a "qualified tax-exempt obligation" under Section 265(b)(3) of the Code.
We express no opinion regarding any other federal, state or local tax consequences arising with respect to ownership of the Bond.
We have not been engaged nor have we undertaken to review the accuracy, completeness or sufficiency of the official statement or other
offering material related to the Bond Bank's General Obligation and Refunding Bonds, 2016 Series Three and General Obligation and Refunding Bonds,
2016 Series Four (except to the extent, if any, stated is the official statement), and we express no opinion relating thereto,
This opinion is given as of the date hereof and we assume no obligation to update, revise or supplement this opinion to reflect any facts or
circumstances that may hereafter come to our attention or any changes in law that may hereafter occur.
Very truly yours,
K&L GATES LLP
/I 4tP
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