1980-17 Providing for the Issuance of $12,100,000 General Obligation School Construction Bonds of the Borough and Fixing Details of Said Bonds1 \\ '1 "
KODIAK ISLAND BOROUGH
ORDINANCE NO. 80 -17 -
AN ORDINANCE OF THE KODIAK ISLAND BOROUGH, ALASKA, PROVIDING FOR
THE ISSUANCE OF $12,100,000 GENERAL OBLIGATION SCHOOL CONSTRUCTION BONDS OF
''THE BOROUGH AND FIXING DETAILS OF SAID BONDS.
�
WHEREAS, pursuant to Ordinance No. 79 -28 -OA of the Borough passed
and approved on November 7, 1979, the following question:
PROPOSITION NO. 1
Shall the Island incur
indebtedness
and issue general of acquiring
to exceed $29,000,000 for the purpose
property for, planning, designing, equipping,
improving and constructing the following and
school an an
related capital improvements in the Borough pursuant
to Ordinance No. 79- 2
Main Elementary- new or renovate;
Junior High- renovate;
Multi- Purpose Auditorium; ace;
Maintenance Shop and Storage
East elementary;
Physical Education Space
New School at Akhiok;
Outside Physical Education and Playground
Facilities for Villages; Projects.
Major Maintenance Repair
Said general obligation bonds are to mature
thirty (30) years from the date of issue;
interest at a rate not to exceed the maximum of the
allowed by law; and be secured by pledge
full faith and credit of the Kodiak Island Borough.
of 626
was passed and approved by
(herein called the "Proposition ") P
ainst Proposition No. 1, at the special election held in the
for and 532 ag canvassed and
;Borough on December 11, 1979, and said election has been duly
the results thereof certified and confirmed in accordance with law; and
WHEREAS, the Borough Assembly of the Kodiak Island Borough has
d hereby determine that it is necessary to proceed to
7 . n
\ determined and
does mP i roving and construct -
acquire property for, planning, designing, equipping,
, ing capital improvements to the school system of the Kodiak Island Borough
1 (all hereinafter collectively referred to as the "Project"); and
WHEREAS, it is deemed necessary and advisable and in the best
h and its inhabitants that $12,100,000 principal amount
interests of the Borough
,I Ord. No. 80 -17 -
Page 1
Ord. No. 80 -17 -0
Page 2
of the general obligation bonds, referred to in the Proposition, be issued
at this time in a single series, as hereinafter fixed and determined, for
the purpose of raising funds to pay the cost of constructing and acquiring
the Project;
NOW, THEREFORE, BE IT ORDAINED BY THE BOROUGH ASSEMBLY OF THE
KODIAK ISLAND BOROUGH, as follows:
Section 1. Definitions. The following terms shall have the
following meanings in the Ordinance:
(a) "Bonds" shall mean any of the Kodiak Island Borough General
Obligation School Construction Bonds, 1980 Series A, issued pursuant to
the Ordinance as the evidence of the indebtedness referred to in the
Proposition.
(b) "Borough" shall mean the Kodiak Island Borough, a municipal
corporation of the State of Alaska, organized as a second class borough
pursuant to Title 29 of the Alaska Statutes.
(c) "Cost" shall mean the cost of acquiring and developing the
Project, including interest on the Bonds prior to and during the perioL
of acquiring and developing the Project, and reasonable fees of the
Paying Agents for the payment of such interest, the cost whether incurred
by the Borough or another of field surveys and advance planning under-
taken in connection with the Project properly allocable to the Project
and\the cost of acquisition of any land of interest therein required as
the site of the Project or for use in connection therewith, the cost of
preparation of the site of the Project and of any land to be used in
connection therewith, the cost of any indemnity and surety bonds and
premiums on insurance incurred in connection with the Project prior to
or during construction thereof and all related direct administrative
and inspection expenses whether incurred by it or by another in connec-
tion with the Project prior to or during construction thereof and
allocable portions of direct costs of the Borough, legal fees, fees and
expenses of the Paying Agents, cost of issuance of the Bonds by the
T
1►,
I Borough and financing charges and fees and expenses of bond counsel,
financial advisors and consultants in connection therewith, cost of
audits, the cost of all machinery, apparatus and equipment, cost of
engineering, architectural services, design, plans, specifications and
surveys, estimates of cost, the reimbursement of all moneys advanced
from whatever source, for the payment of any item or items of cost of
the Project, and all other expenses necessary or incident to determining
the feasibility or practicability of the Project, and such other expenses
not specified herein as may be necessary or incident to the acquisition
and development of the Project, the financing thereof and the placing
of the same in use and operation.
(d) "Ordinance" shall mean this Ordinance of the Borough.
(e) "Paying Agent" and "Principal Paying Agent" shall mean the
banks, trust companies, or national banking association appointed by
the Borough pursuant to Section 18 hereof.
Section 2. Authority for Ordinance. The Borough has ascertained
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I and hereby determines that each and every matter and thing as to which
I
;provision is made in this Ordinance is necessary in order to carry out and
I I effectuate the purposes of the Borough in accordance with the Constitution
and statues of the State of Alaska, and to incur the indebtedness and issue
the Bonds as referred to in the Proposition.
Section 3. Purpose and Authorization of Bonds. For the purpose
of raising funds to pay the cost of acquiring and developing the Project as
authorized by the Proposition, which, in accordance with the Proposition is
hereby determined to be necessary, general obligation bonds of the Borough
referred to in the Proposition, each to be designated "Kodiak Island Borough
General Obligation School Construction Bond, 1980 Series A ", shall be issued
in the aggregate principal amount of TWELVE MILLION ONE HUNDRED THOUSAND
DOLLARS ($12,100,000) as a single issue and sold at public sale or at private
sale including sale to the Alaska Municipal Bond Bank on a date to be set by
resolution of the Assembly passed prior to the sale.
Ord. No. 80 -17 -0
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Ord. No. 80 -17 -0
Page 4
Section 4. Date and Maturities of Bonds. The Bonds shall mature
on June 1 in the following amounts in the years set opposite such amounts:
Amounts Year
$ 325,000 1982
350,000 1983
375,000 1984
405,000 1985
440,000 1986
475,000 1987
510,000 1988
555,000 1989
600,000 1990
645,000 1991
695,000 1992
755,000 1993
815,000 1994
880,000 1995
950,000 1996
1,025,000 1997
1,105,000 1998
1,195,000 1999
Section 5. Payment Dates, Form and Numbering of Bonds. Each
Bond shall bear interest from its date payable on the first day of June and
December in each year beginning in 1981 at such rate or rates per annum as
may be fixed and determined by resolution adopted prior to the delivery
thereof.
The Bonds shall be coupon in form and payable to bearer and
registrable as to principal alone as herein provided, or, in the case of sale
to the Alaska Municipal Bond Bank, in the form of one fully registered bond
without coupons and payable to the Alaska Municipal Bond Bank. The Bonds
coupon in form (herein called "coupon Bonds ") shall each be of the denomination
of Five Thousand Dollars ($5,000). The coupon Bonds and the registered Bond
shall be, respectively, substantially in the forms of such Bonds hereinafter
I I
set forth with such appropriate variations, omissions or insertions as are
permitted or required by this Ordinance or any resolution of the Borough
adopted pursuant to the provisions of this Ordinance 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. The coupon Bonds shall be numbered
0 , ; -,
n 9 _ 9 1
I from on e upwards in order of maturity.
1 Section 6. Details of Bonds. The coupon Bonds shall be dated
an d bear interest from July 1, 1980. The registered Bond shall bear interest
from its date,
and shall be dated as of the date of its issuance, or as of
July 1, 1980 at the election of the Borough.
i the manual or facsimile
Each of the Bonds shall be signed by
signature of the Mayor, and the official seal of the Borough (or a facsimile
thereof) shall be affixed, imprinted or otherwise reproduced on the Bonds,
and attested by
the manual or facsimile signature of the Borough Clerk. The
coupons attached to the coupon Bonds shall be executed whose h s a acs file
signature of the Borough Clerk. In case any officer wh
ear on any Bond or coupon shall cease
facsimile of whose signature shall app d, such signature or such
to be such officer before the delivery of such Bon the
facsimile shall nevertheless be valid and sufficient for all purposes
same as if he had remained in office until such delivery' and the signature
In the event both the signature of the Mayor
the Clerk are in facsimile form, the Bonds shall contain a certificate
of a Paying Agent certifying the authentication of such signatures in the
following form:
Ord. No. 80 -17 -
Page 5
PAYING AGENT'S CERTIFICATE
OF AUTHENTICATION
ICATE
This Bond is one of the Bonds described in the
mentioned Ordinance and the signaturesnifpritede
othereon are t andaClerk of the Borough.
of the Mayor
(Name)
Paying Agent
BY
Authorize Officer
I rice of and the interest on
Both the principal and redemption p
I the Bonds shall be payable in any coin or currency of the United States of
America which, at the respective dates of payment thereof, is legal tender
for the payment of public and private debts.
9 1
The principal and the interest on all coupon Bonds shall be
payable at the principal office of the Paying Agents. Payment of the interest
on the coupon Bonds shall be made only upon presentation and surrender of
the coupons, if any, representing such interest as the same respectively
fall due. The interest on the registered Bond shall be paid on each interest
payment date to the Alaska Municipal Bond Bank or its registered assigns.
Section 7. Exchange of Registered Bond. The registered Bond,
upon surrender thereof at the principal office of the Borough, together with
an assignment duly executed by the registered owner or his attorney in such
form as shall be satisfactory to the Borough, may, at the option of the
registered owner thereof, be exchanged for an equal aggregate principal
amount of coupon Bonds with coupons attached representing all unpaid interest
due or to become due thereon.
Section 8. Negotiability of Bonds. Title to any coupon Bond,
unless such Bond is registered as to principal in the manner hereinafter
provided, and to any interest coupon, shall pass by delivery in the same manner
as a negotiable instrument payable to bearer. At the option of the bearer,
any coupon Bond may be registered as to principal alone on books for the
registration and transfer of Bonds, kept by the Principal Paying Agent as
Bond Registrar, upon presentation thereof to the Principal Paying Agent,
which shall make notation of such registration thereon. Any such Bond
registered as to principal alone may thereafter be transferred only upon an
assignment duly executed by the registered owner or his attorney in such
form as shall be satisfactory to the Principal Paying Agent such transfer
to be made on such books and endorsed on the Bond by the Principal Paying
Agent. Such transfer may be to bearer and thereby transferability by
delivery shall be restored subject, however, to successive registration and
transfers as before. Registration of any coupon Bond as to principal,
however, shall not affect the negotiability by delivery of the coupons
appertaining to such Bond, but every such coupon shall continue to pass by
delivery merely and shall remain payable to bearer.
Ord. No. 80 -17 -0
Page 6
1
Section 9. Transfer of Registered Bond, Delivery of New Bonds
and Fees of Borough and Principal Paying Agent. The registered Bond may be
transferred only upon books of the Borough kept for the registration and
transfer of the Bond, upon presentation thereof at the office of the Borough,
together with an assignment duly executed by the registered owner or his
attorney in such form as shall be satisfactory to the Borough. Upon the
transfer of the registered Bond, the Borough shall make notation of such
transfer thereon.
In the case in which the registered Bond shall be exchanged,
there shall be executed, and the Borough shall authenticate and deliver,
coupon Bonds in accordance with the provisions of this Ordinance. The Bond
surrendered in any such exchange shall forthwith be cancelled by the Borough.
The Borough and the Principal Paying Agent may make a charge for every
registration, exchange or transfer of Bonds sufficient to reimburse them
for any tax, fee or other governmental charge required to be paid with
respect to such registration, exchange, or transfer, or any other charges
of the Borough incurred in connection therewith, and such charge or charges
shall be paid before any such new Bond shall be delivered. Neither the
Borough nor the Principal Paying Agent shall be required to make any such
registration, exchange, or transfer of a Bond during the ten (10) days next
preceding an interest payment date on such Bond.
Section 10. Ownership of Registered Bonds. As to the registered
Bond or any coupon Bond registered as to principal other than bearer, the
person in whose name the same shall be registered shall be deemed and regarded
as the absolute owner thereof for all purposes, and payment of or on account
of the principal on such Bond and the interest on the registered Bond shall
be made only to or upon the order of the registered owner thereof or his
1legal representative, but such registration may be changed as hereinabove
provided. All such payments shall be valid and effectual to satisfy and
';discharge the liability upon such Bond, including the interest thereon to
,the extent of the sum or sums so paid. The Borough and the Paying Agents may
Ord. No. 80 -17 -0
Page 7
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I
1111111111117 '1
i t 1
1 'I
I
ii
deem and treat the bearer of any coupon Bond registered to bearer or not
registered as to principal, and the bearer of any coupon appertaining to
any coupon Bonds, whether or not such coupon Bond shall be registered as to
principal, as the absolute owner of such Bond or coupon, as the case may be,
for the purpose of receiving payment thereof and for all other purposes
whatsoever, and neither the Borough nor the Paying Agent shall be affected
by any notice to the contrary.
i
Section 11. Mutilated, Destroyed, Stolen or Lost Bonds. In
case any Bond shall become mutilated or be destroyed, stolen, or lost, the
,Borough may cause to be executed, and delivered, a new Bond of like interest
;rate, principal amount and maturity in exchange and substitution for and
upon cancellation of such mutilated Bond and its interest coupons, if any,
in lieu of and in substitution for such Bond destroyed, stolen or lost, and
its coupons, if any, upon the holder paying the reasonable expenses and
charges of the Borough in connection therewith and, in the case of a Bond
destroyed, stolen or lost, his filing with the Borough evidence satisfactory
to it that such Bond or coupons, if any, were destroyed, stolen or lost,
and of his ownership thereof, and furnishing the Borough with indemnity
satisfactory to it. Any new Bond so delivered may bear a number differing
from the number on the Bond it replaces.
Section 12. Exchange of Bonds. The Borough shall make provision
for the exchange of Bonds at the principal office of the Principal Paying
Agent, and shall cause books to be kept by the Principal Paying Agent, as
' Bond Registrar, for the registration and transfer of Bonds as provided in
this Ordinance, except that the books for the registered Bond shall be kept
at the office of the Borough.
Section 13. Redemption of Bonds. The Bonds maturing on or after
( July 1, 1991 shall be subject to redemption by or on behalf of the Borough
• prior to maturity and upon notice as hereinafter provided, as a whole or in
part in inverse order of maturity on any interest payment date on or after
July 1, 1990, at a redemption price equal to the principal amount of each
! Ord. No. 80 -17 -0
Page 8
,1 ? 9 1 -/
w i
2 9 i •
Bond to be redeemed
together with interest accred thereon to the redemption
da te•
are to be redeemed
If less than all of the Bonds of like maturity
the particular Bonds to be redeemed shall be selected in inverse numerical
When the Borough determines
Notice of Redemption.
Section 14.
o rder.
to redeem any Bonds,
it shall give notice of such redempti on, which notice
I shall state the redemption date and identify the Bonds to be redeemed by
redemption date
ce to their numbers and further state that on nd the print pal amount
referee on each such B
up price ")
as the "Redemption
there shall become due and payable
thereof (hereinafter in this Ordinance referred date, and that from and
together with interest accrued to the redemption accrue. Such notice shall to
after such date interest thereon shall cease
ner of each Bond at the
be given by mailing notice to the registered ublication at least once
t o n the books of the Borough and by P
address kept
a newspaper which
than sixty days prior to the redemption date in s (other
than legal holidays) in each calendar week, P
not less f at least five day
ublished at least once a day lish language,
is customarily P printed in the Eng
in one newspaper of general circulation in the Borough of
ton.
are registered, no P
published i of Seattle, Washing
a nd Pub York, or the City
City and State of New required.
Section IS. Pa
Manhattan publication shall be req
Bonds arredemption
In the event all Notice of edemp
ent of R edeemed onds• the Bonds so called
manner provided in Section 14,
given in the ma stated
',having been g the redemption date
for redemption shall become due and payable on
applicable Redem tion Price on said date plus interest
,in said notice at the app P date, and, upon presentation and
unpaid to the redemption Paying Agent or in the
;'� accrued and P
at the p g with,
' rinicpal office of the PaY � surrender thereof together
at the office of the Borough,
\case of the registered Bond, a written instrument
case of Bonds registered otherwise than to bearer, authorized
inthec or his duly
the registered owner
of transfer duly executed by interest, all
li
attorney
and, in the case of Bonds not registered as to
'.I
I Ord. No. 8O -17 -0
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i
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No,
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a ppurtenant coupons maturing subsequent to the redemption date, such Bonds
shall be paid at the said Redemption Price plus interest accrued and unpaid
to the redemption date not represented by coupons for matured interest
installments. All interest installments represented by coupons which shall
have matured on or prior to the redemption date shall continue to be payable
to the bearers of such coupons. If, on the redemption date, moneys for the
redemption of all the Bonds to be redeemed, together with interest accrued
and unpaid to the redemption date, shall be held on behalf of the Borough
at the principal office of the Paying Agents so as to be available therefor
on said date and if notice of redemption shall have been published as
aforesaid, then from and after the redemption date the Bonds so called for
redemption shall cease to bear interest and the coupons for interest
appertaining thereto maturing subsequent to the redemption date shall be
void and said Bonds and coupons shall no longer be considered as outstanding
hereunder.
Section 16. Form of Coupon Bond. Each coupon Bond, the coupons
to be attached thereto and the provisions for registration to be endorsed
thereon, if any, shall be, respectively, in substantially the form following
with such variations, omissions and insertions as may be required or permitted
by this Ordinance and as may be required by any resolution or resolutions
adopted by the Borough.
UNITED STATES OF AMERICA
STATE OF ALASKA
KODIAK ISLAND BOROUGH
General Obligation School Construction Bond
1980 Series A
$5,000
The Kodiak Island Borough, a municpal corporation of the State
° f Alaska, for value received, acknowledges itself indebted and hereby
promises to pay to the bearer or, if this bond be registered as herein
P the registered owner hereof, on the first day of July, 19 ,
4 presentation and surrender hereof, the principal sum of Five Thousand
Dollars ($5,000), and to pay interest on such principal sum from the date
� No. 80 -17 -0
P age 10
I n 2 9
hereof until the Borough's obligation with respect to the payment of such
principal sum shall be discharged, at the rate of per
centum ( %) per annum, payable on July 1, 1981, and semi - annually
thereafter in each year on the first day of January and July, but only,
in case of interest due at or before maturity of this bond, according to
the tenor of the respective coupons therefor annexed hereto and upon presenta-
tion and surrender of said coupons as they severally become due. The
principal of, and interest on this bond, when due, will be payable at the
principal office in the
(hereinafter called the "Principal Paying Agent "), or at the option of the
holder, at the principaloffice in the
(hereinafter collectively, together with the Principal Paying Agent, called
the "Paying Agents "), in any coin or currency of the United States of
America which at the time of payment is legal tender for the payment of
public and private debts.
The bond is one of the General Obligation School Construction
Bonds, 1980 Series A, of the Kodiak Island Borough, Alaska, of like tenor
and effect except as to interest rates, serial number and maturity, is one
of a series of the Bonds aggregating $12,100,000 in principal amount and is
part of $29,000,000 aggregate principal amount of Bonds authorized to pay
the cost of acquiring property for, planning, designing, equipping, constructing
school and related capital improvements in the Borough with the question of
'their issuance for such purpose approved and ratified by a majority vote of
the qualified voters of the Borough who voted on a Proposition authorizing
the Bonds at the special election held on December 11, 1979, and is issued
pursuant to Ordinance No. 80 -17 -0 of the Borough (herein collectively called
the "Ordinance ").
The Bonds are numbered from one consecutively upwards in order
of maturity.
•
The Bonds maturing on or after July 1, 1991, are subject to
redemption by or on behalf of the Borough prior to maturity and upon notice
Ord. No. 80 -17 -0
Page 11
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as set forth in the Ordinance, as a whole or in part in inverse order of
maturity on any interest payment date on or after July 1, 1990, at the
principal amount of each Bond to be redeemed, together with interest accrued
thereon to the redemption date.
If less than all of the Bonds of like maturity are to be redeemed,
the particular Bonds to be redeemed shall be redeemed in inverse numerical
order as provided in the Ordinance.
This bond is transferable by delivery, unless registered as to
principal other than to bearer. It may be registered as to principal in
the name of the bearer on the books of the Borough kept for the purpose at
the principal office of the Principal Paying Agent, such registration to
be noted hereon, after which no transfer hereof shall be valid unless made
on said books by the registered owner hereof in person or by his attorney
duly authorized in writing, and similarly noted hereon; but this bond may
be discharged from registration by being in like manner transferred to
bearer, after which it shall again become transferable by delivery. This
bond may again, from time to time, be registered or discharged from registra-
tion in the same manner. Such registration, however, shall not affect the
negotiability by delivery of the coupons appertaining hereto, which shall
continue to pass by delivery merely and shall remain payable to bearer. The
Borough and the Paying Agents of the Borough may treat and consider the
bearer of this bond or, if it be registered as herein provided, the person
in whose name it is registered, as the holder and absolute owner of this
bond for the purpose of receiving payment of, or on account of, the principal
hereof and for all other purposes whatever except for the purpose of receiving
payment of coupons, and may treat and consider the bearer of any coupon
appertaining hereto as the holder and absolute owner thereof for the purpose
of receiving payment thereof and for all other purposes whatsoever.
The Bonds are issuable in the form of coupon Bonds in the
denomination of $5,000.
Ord. No. 80 -17 -0
Page 12
(S E A L)
A T T E S T:
Borough Clerk
Ord. No. 80 -17 -0
Page 13
This bond is a general obligation of the Kodiak Island Borough,
Alaska, and the full faith and credit of the Borough are pledged for the
payment of the principal of and interest this bond as the same shall become
due.
IT IS HEREBY CERTIFIED AND RECITED that all conditions, acts
or things required by the Constitution and laws 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 issue of Bonds of which this is one, together with all other indebt-
edness of the Borough, is within every debt and other limit prescribed by
said Constitution and statutes.
IN WITNESS WHERE OF, THE KODIAK ISLAND BOROUGH has caused this
bond to be signed in its name and on its behalf by the manual or facsimile
signature of the Mayor and its corporate seal (or a facsimile thereof) to
be hereunto affixed, imprinted or otherwise reproduced, and attested by the
manual or facsimile signature of the Borough Clerk, and coupons for interest,
bearing and signed by the facsimile signature of the Clerk, to be attached
hereto, all as of this first day of July, 1980.
Mayor
J
FORM OF PROVISIONS FOR REGISTRATION
Notice: No Writing Below Except by the
Paying Agent as Registrar
Authorized
Date of Name of Signature of
Registration Registered Owner Registrar
Ord. No. 80 -17 -0
Page 14
FORM OF COUPONS
No. $
On the first day of . 19 , the Kodiak
Island Borough will pay to the bearer at the principal office in the
a Paying Agent of the Borough, or at the
option of the holder, at the principal office in the
, a Paying Agent of the Borough,
Dollars
upon surrender of this coupon,
($ ), in any coin or currency of the United States of America
which at the time of payment is legal tender for the payment of public
and private debts, being six months interest then due on its Kodiak
Island Borough General Obligation School Construction Bond, 1980
Series A.
Borough Clerk
Kodiak Island Borough
Section 17. Form of Fully Registered Bond. The fully registered
Bond shall be in substantially the form of the coupon Bonds hereinabove set
forth with such insertions or variations as may be required or permitted
by the Ordinance, except that there shall be no coupons to be attached
thereto and that the first, second, third, fourth and tenth paragraphs
1 thereof shall be in substantially the following forms respectively:
1
I T i n
The Kodiak Island Borough, a municipal corporation of the State of Alaska,
acknowledges itself indebted and for value received hereby promises to pay
to Alaska Municipal Bond Bank or registered assigns, the principal sum of
Twelve Million One Hundred Thousand Dollars ($12,100,000) in the following
installments on July 1 of each of the following years, and to pay to the
registered owner hereof until the Borough's obligation with respect to the
payment of such installment shall be discharged, on the first days of July
and January of each year, beginning July 1, 1981, as follows:
This Bond, as to principal and interest when due, will be payable at the
office of the Borough in any coin or currency of the United States of
America which at the time of payment is legal tender for the payment of
public and private debts.
SECOND PARAGRAPH
This Bond is the single registered Bond of the series of Bonds entitled
General Obligation School Construction Bond, 1980 Series A, of the Kodiak
Island Borough, Alaska, aggregating $12,100,000 in principal amount and is
part of $29,000,000 aggregate principal amount of Bonds authorized for the
1 purpose of providing funds to pay the costs of acquiring property for,
Ord. No. 80 -17 -0
Page 15
FIRST PARAGRAPH
Interest
Year Amount Rate
1982 $ 325,000
1983 350,000
1984 375,000
1985 405,000
1986 440,000
1987 475,000
1988 510,000
1989 555,000
1990 600,000
1991 645,000
1992 695,000
1993 755,000
1994 815,000
1995 880,000
1996 950,000
1997 1,025,000
1998 1,105,000
1999 1,195,000
of the Borough who voted on a Proposition authorizing the Bonds at the
special election held on December 11, 1979, and is issued pursuant to
Ordinance No. 80 -17 -0 of the Borough (herein called the "Ordinance ").
THIRD PARAGRAPH
The installments of this Bond becoming due on or after July 1, 1991, are
subject to redemption by or on behalf of the Borough prior to maturity and
upon notice as set forth in the Ordinance as a whole or in part in inverse
order of maturity on any interest payment date on or after July 1, 1990 at
a redemption price calculated with respect to each installment or portion
thereof to be redeemed equal to the amount thereof, plus accrued interest
to the date of redemption.
planning, designing, equipping and constructing schools and related capital
improvements in the Borough, with the question of their issuance for such
purposes approved and ratified by majority vote of the qualified voters
FOURTH PARAGRAPH
This Bond is transferable, as provided in the Ordinance, only upon the books
of the Borough kept for that purpose at the principal office of the Borough
by the registered owner hereof in person or by his attorney duly authorized
in writing upon surrender hereof together with a written instrument of
transfer satisfactory to the Borough duly executed by the registered owner,
the Borough shall issue coupon Bonds with appropriate coupons attached, of
the same aggregate principal amount as the surrendered Bond as provided in
the Ordinance and upon the payment of the charges therein prescribed. The
Borough may treat and consider the person in whose name this Bond is
registered as the holder and absolute owner hereof for the purpose of
receiving payment of, or on account of, the principal hereof and interest
due hereon and for all other purposes whatsoever.
Ord. 80 -17 -0
Page 16
H i r1 1 ? 7 a ',
IN WITNESS WHEREOF, THE KODIAK ISLAND BOROUGH has caused this
bond to be signed in its name and on its behalf by the manual signature of
the Mayor and the official seal of the Borough (or a facsimile thereof) to
! be affixed, imprinted, or otherwise reproduced hereon, and attested by the
1 manual or facsimile signature of the Borough Clerk, all as of the
day of , 19
(S E A L)
A T T E S T:
Borough Clerk
TENTH PARAGRAPH
Mayor
Section 18. Paying Agents. One or more Paying Agents shall be
appointed by a resolution adopted by the Borough prior to the time of sale
of the Bonds, unless the Bonds are sold at private sale in the form of a
single registered bond to the Alaska Municipal Bond Bank, in which case no
Paying Agents need be appointed by the Borough until such time as the
I
Alaska Municipal Bond Bank shall elect to exchange the single registered
Bond for coupon Bonds. The Borough shall indemnify and save harmless the
Paying Agents against any liabilities which they may incur in the exercise
and performance of their powers and duties as Paying Agents which are not
,�1due to their negligence or default, and shall pay their reasonable charges
for their services as Paying Agents. The Paying Agents may become the
owners of or may deal in Bonds, as fully and with the same rights
1they were not Paying Agents.
Section 19. Authority of Officers.
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
Ord. No. 80 -17 -0
Page 17
as if
The Mayor, Manager and the
71,
under the Bonds and this Ordinance.
Section 20. 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 Borough 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 any indebtedness or obligation, either legal, moral or otherwise,
of said State or of any said political subdivision thereof, except the
Borough, and neither said State, nor any said political subdivision, except
the Borough, shall be liable on the Bonds, and the Bonds are not and shall
not be payable out of any funds other than those of the Borough.
Section 21. Sale of Bonds. The Bonds shall be sold at public
it
ii or private sale, including sale to the Alaska Municipal Bond Bank, upon
Ordinance or to be determined by a subsequent ordinance or resolution of
I the Borough, to the end that the Borough may carry out its obligations
such terms and conditions as may be fixed and determined by a resolution
!I adopted by the Borough Assembly prior to the time of sale.
Section 22. Arbitrage Covenant. The Borough covenants with
I lthe holders of all Bonds at any time outstanding that it will make no use
of the proceeds of the Bonds which will cause the bonds to be "arbitrage
bonds" subject to federal income taxation by reason of Section 103(c) of
the Internal Revenue Code of 1954. To that end, so long as any of the
Bonds are outstanding, the Borough, with respect to the proceeds of the
Bonds, shall comply with all requirements of said Section 103(c) and of
Ord. No. 80 -17 -0
Page 18
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all regulations of the United States Department of the Treasury issued
thereunder, to the extent that such requirements are, at the time,
applicable and in effect.
Section 23. Variation of Terms. The amount, date, maturities,
payment dates and redemption provisions of the Bonds may be varied or
changed by the Borough Assembly by resolution adopted prior to the time
of sale.
Section 24. 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.
Section 25. Pledge. 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 available therefor, to pay principal
and interest on the Bonds as the same become due and payable.
Section 26. Effective Date. This Ordinance shall take effect
immediately.
Borough, this lst day of May
ATTEST:
PASSED AND APPROVED by the Assembly of the Kodiak Island
, 1980.
Presi•ing Of cer (May. )(Acting)
First Reading Date: April 3, 1980
Second Reading, Public Hearing, Adoption Date: May 1, 1980
Effective Date: May 1, 1980
Prepared By: Robert B. Flint, Wohlforth 6 Flint, Bond Counsel
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