HomeMy WebLinkAbout2569CITY OF KENT, WASHINGTON
ORDINANCE N0. %�. •�
AN ORDINANCE of the City of Kent. Washington,
providing for the issuance of $2,025,000 principal
amount of Limited Tax General Obligation Refunding
Bonds, 1985, of the City for the purpose of providing
the funds to refund, pay and retire its outstanding
Limited Tax General Obligation Bonds, 1981; fixing
the date, form, maturities, interest rates, terms and
covenants of such refunding bonds; providing for and
authorizing the purchase of certain obligations out
of the proceeds of the sale of such bonds and for the
use and application of the money to be derived from
such investments; authorizing the execution of an
agreement with Rainier National Bank of Seattle,
Washington, as Refunding Trustee; providing for the
payment and redemption of the outstanding bonds to be
refunded; creating a special bond redemption fund;
and approving the sale and providing for the delivery
of such refunding bonds to Shearson Lehman Brothers
Inc., Foster & Marshall Division, of Seattle,
Washington.
WHEREAS, the City of Kent, Washington (the "City"), now has
outstanding $1,780,000 principal amount of Limited Tax General
Obligation Bonds, 1981 (the "1981 Bonds"), dated May 1, 1981,
maturing serially on May 1 of each of the years 1986 through
2001, and having various interest rates from 10% to 12% per
annum; and
WHEREAS, under the provisions of Ordinance No. 2287 author-
izing the issuance of the 1981 Bonds and in such bonds, the City
reserved the right to redeem any or all of the 1981 Bonds on or
after May 1, 1991, at par plus accrued interest to date of
redemption; and
WHEREAS, after due consideration, it appears to the City
Council that the 1981 Bonds may be refunded by the issuance and
sale of the bonds authorized herein (the "Bonds") so that a
substantial savings will be effected by the difference between
the principal and interest cost over the life of the Bonds and
the principal and interest cost over the life of the 1981 Bonds
but for such refunding, which refunding will be effected by:
(a) the issuance of the Bonds; and
(b) the payment of the principal of and inter-
est on the 1981 Bonds as the same shall become due up
to and including May 1, 1991, and the call, payment
and redemption on May 1, 1991, of all outstanding
1981 Bonds maturing on May 1 of each of the years
1992 through 2001;
and
WHEREAS, in order to effect such refunding in the manner
that will be most advantageous to the City and its taxpayers, it
is found necessary and advisable that certain Acquired Obliga-
tions (hereinafter identified), bearing interest and maturing at
such times as necessary to accomplish the refunding as afore-
said, be purchased out of a portion of the proceeds of the sale
of the Bonds and other money of the City legally available
therefor; and
WHEREAS, the City Council has determined that it is in the
City's best interest to issue and sell $2,025,000 par value of
limited tax general obligation refunding bonds to provide the
funds necessary to pay, redeem and retire the 1981 Bonds, and
Shearson Lehman Brothers Inc., Foster & Marshall Division, has
offered to purchase such bonds on the terms and conditions
hereinafter set forth; NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DO ORDAIN
as follows:
Section 1. The assessed valuation of the taxable property
of the City as ascertained by the last preceding assessment for
City purposes for the calendar year 1985 is $1,908,294,718, and
the City has outstanding general indebtedness evidenced by
limited tax general obligation bonds and conditional sales
contracts in the amount of $9,755,000 incurred within the limit
of up to 3/4 of 1% of the value of the taxable property within
the City permitted for general municipal purposes without a vote
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of the qualified voters therein, unlimited tax general obliga-
tion bonds in the principal amount of $715,000 incurred within
the limit of up to 2-1/2% of the value of the taxable property
within the City for capital purposes only pursuant to a vote of
the qualified voters of the City. and the amount of indebtedness
for which bonds are herein authorized to be issued is $2.025,000.
Section 2. For the purpose of providing a part of the
money required to pay the principal of and interest on the 1981
Bonds as the same shall become due up to and including May 1.
1991, and to call, pay and redeem on May 1, 1991, all outstand-
ing 1981 Bonds maturing on May 1 of each of the years 1992
through 2001, and to pay the costs of issuing the bonds and the
refunding plan, the City shall issue the Limited Tax General
Obligation Refunding Bonds, 1985 (the "Bonds"), in the aggregate
principal amount of $2,025,000. The Bonds shall be dated July
1, 1985; shall be in the denomination of $5,000 each or any
integral multiple thereof within a single maturity; shall be
numbered separately in the manner and with any additional desig-
nation as the Bond Registrar (collectively, the fiscal agencies
of the State of Washington located in Seattle, Washington, and
New York, New York) deems necessary for purposes of identifica-
tion; shall bear interest at the rates set forth below (computed
on the basis of a 360 -day year of twelve 30 -day months), payable
on May 1. 1986, and semiannually thereafter on each succeeding
November 1 and May 1; and shall bear interest and mature on May
1 in years and amounts as follows:
Maturity Interest
Years Amounts Rates
1986
$ 70,000
5.25%
1987
80,000
5.90
1988
85,000
6.40
1989
90,000
6.75
1990
95,000
7.00
1991
100,000
7.30
1992
110,000
7.60
1993
110,000
7.80
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Maturity Interest
Years Amounts Rates
1994 $120,000 8.00%
1995 130,000 8.20
1996 145,000 8.40
1997 150,000 8.55
1998 165.000 8.70
1999 175,000 8.80
2000 195,000 8.90
2001 205.000 9.00
If any Bond is not redeemed upon proper presentment at its
maturity or call date, the City shall be obligated to pay inter-
est at the same rate for each such Bond from and after its
maturity or call date until such Bond, both principal and inter-
est. is paid in full or until sufficient money for such payment
in full is on deposit in the bond redemption fund hereinafter
created and such Bond has been called for payment.
Upon surrender thereof to the Bond Registrar, the Bonds may
be exchanged for Bonds in any authorized denomination of an
equal aggregate principal amount and of the same interest rate
and maturity. Bonds may be transferred only if endorsed in the
manner provided thereon and surrendered to the Bond Registrar.
Such exchange or transfer shall be without cost to the owner or
transferee.
The Bonds shall be issued only in registered form as to
both principal and interest and recorded in the books and
records maintained by the Bond Registrar (the "Bond Register").
The Bond Register shall contain the name and mailing address of
the owner of each Bond and the principal amount and number of
Bonds held by each owner.
Both principal of and interest on the Bonds shall be pay-
able in lawful money of the United States of America. Interest
on the Bonds shall be paid by check or draft mailed to the
registered owners at the addresses appearing on the Bond
Register on the fifteenth day of the month preceding the inter-
est payment date or. when requested in writing by a registered
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owner and approved by the City Treasurer, shall be paid on the
interest payment date by wire transfer to the account identified
by the requesting registered owner whose name, address and wire
transfer account number appear on the Bond Register fifteen days
preceding the interest payment date. Principal of the Bonds
shall be payable upon presentation and surrender of the Bonds by
the registered owners at either office of the Bond Registrar at
the option of such owners.
Bonds maturing in the years 1986 through 1995, inclusive,
shall be issued without the right or option of the City to
redeem the same prior to their stated maturities. The City
reserves the right and option to redeem the Bonds maturing on or
after May 1, 1996, as a whole, or in part in inverse order of
maturity (and by lot within a maturity in such manner as the
Bond Registrar shall determine), on May 1, 1995, and on any
interest payment date thereafter, at par plus accrued interest
to the date of redemption. Portions of the principal amount of
any Bond, in installments of $5,000 or any integral multiple of
$5,000, may be redeemed. If less than all of the principal
amount of any Bond is redeemed, upon surrender of such Bond at
the principal office of the Bond Registrar, there shall be
issued to the registered owner, without charge therefor, a new
Bond or Bonds, at the option of the registered owner, of like
maturity and interest rate in any of the denominations author-
ized by this ordinance.
Notice of any such intended redemption shall be given not
less than 30 nor more than 60 days prior to the date fixed for
redemption by first-class mail, postage prepaid, to the regis-
tered owner of any Bond to be redeemed at the address appearing
on the Bond Register. The requirements of this section shall be
deemed to be complied with when notice is mailed as herein
provided, whether or not it is actually received by the owner of
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any Bond. The interest on the Bonds so called for redemption
shall cease on the date fixed for redemption unless such Bond or
Bonds so called are not redeemed upon presentation made pursuant
to such call. In addition, such redemption notice shall be
mailed within the same period, postage prepaid, to Moody's
Investors Service, Inc., and Standard & Poor's Corporation at
their offices in New York, New York, or their successors, and to
Shearson Lehman Brothers Inc., Foster & Marshall Division, in
Seattle. Washington, or its successor, but such mailing shall
not be a condition precedent to the redemption of such Bonds.
The City further reserves the right to purchase any or all
of the Bonds in the open market at a price not in excess of par
plus accrued interest to the date of such purchase.
Section 3. The City irrevocably pledges to levy taxes
annually for as long as any of the Bonds is outstanding within
the constitutional and statutory tax limitations provided by law
without a vote of the electors of the City upon all of the
taxable property within the City in an amount sufficient,
together with other money legally available and to be used
therefor, to pay the principal of and interest on the Bonds as
the same shall accrue, and the full faith, credit and resources
of the City are pledged irrevocably for the annual levy and
collection of those taxes and the prompt payment of that prin-
cipal and interest.
Section 4. The Bonds shall be printed or lithographed on
good bond paper in a form consistent with the provisions of this
ordinance and state law, shall be signed by the Mayor and City
Clerk, both of whose signatures shall be in facsimile, and a
facsimile reproduction of the seal of the City shall be printed
thereon.
Only such Bonds as shall bear thereon a Certificate of
Authentication in the following form, manually executed by the
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Bond Registrar, shall be valid or obligatory for any purpose or
entitled to the benefits of this ordinance:
CERTIFICATE OF AUTHENTICATION
This bond is one of the fully registered City of
Kent, Washington, Limited Tax General Obligation
Refunding Bonds, 1985, described in the Bond
Ordinance.
WASHINGTON STATE FISCAL AGENCY
Bond Registrar
By
Authorized Officer
Such Certificate of Authentication shall be conclusive evidence
that the Bonds so authenticated have been duly executed, authen-
ticated and delivered hereunder and are entitled to the benefits
of this ordinance.
In case either or both of the officers who shall have
executed the Bonds shall cease to be such officer or officers of
the City before the Bonds so signed shall have been authenti-
cated or delivered by the Bond Registrar or issued by the City,
such Bonds nevertheless may be authenticated, delivered and
issued and upon such authentication, delivery and issue, shall
be as binding upon the City as though those whose facsimile
signatures appear on the Bonds had continued to be such officers
of the City. Any Bond also may be signed on behalf of the City
by such persons as at the actual date of execution of such Bond
shall be proper officers of the City authorized to execute Bonds
although on the original date of such Bond such persons were not
such officers of the City.
Section 5. The Bond Registrar shall keep, or cause to be
kept, at its principal corporate trust office, sufficient books
for the registration and transfer of the Bonds which shall at
all times be open to inspection by the City.
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-The Bond Registrar shall be responsible for its representa-
tions contained in the Bond Registrar's Certificate of Authenti-
cation on the Bonds. The Bond Registrar may become the owner of
Bonds with the same rights it would have if it were not the Bond
Registrar and, to the extent permitted by law, may act as
depository for and permit any of its officers or directors to
act as a member of, or in any other capacity with respect to,
any committee formed to protect the rights of Bond owners.
Section 6. The Bonds shall be negotiable instruments to
the extent provided by RCW 62A.8-102 and 62A.8-105.
Section 7. There is created and established in the office
of the City Treasurer a special fund to be known and designated
as the Limited Tax General Obligation Refunding Bond Fund, 1985
(the "Bond Fund"). The proceeds of the sale of the Bonds,
exclusive of the accrued interest thereon which shall be paid
into the Bond Fund, shall be used immediately upon the receipt
thereof to discharge to the extent practicable the obligations
of the City under Ordinance No. 2287 authorizing the 1981 Bonds
by providing for the payment of the principal of and interest on
the 1981 Bonds as the same shall become due up to and including
May 1, 1991, and for the payment, redemption and retirement on
May 1, 1991. of all outstanding 1981 Bonds maturing on May 1 of
each of the years 1992 through 2001, inclusive. The City shall
discharge fully such obligations by the purchase of United
States Treasury Certificates of Indebtedness, Notes and/or Bonds
- State and Local Government Series or other obligations of the
United States of America purchased to accomplish the refunding
authorized by this ordinance (the "Acquired Obligations"),
bearing such interest and maturing as to principal and interest
in such amounts and at such times so as to provide, together
with the beginning cash balance, for such payments. The
Acquired Obligations are more particularly described and are set
forth in Schedule A attached to the Refunding Trust Agreement
hereinafter referred to and attached hereto as Exhibit A.
Money or investments remaining in the 1981 Bond Fund shall
be transferred to the Bond Fund and expended for the payment of
the interest on or principal of the Bonds first coming due.
The Acquired Obligations and the beginning cash balance of
$100.00 (which amount may be increased or decreased as required
when the exact purchase price of the Acquired Obligations is
ascertained). shall be deposited irrevocably with Rainier
National Bank, Seattle, Washington (the "Refunding Trustee").
The City reserves the right to substitute other direct United
States obligations for any of the Acquired Obligations and to
use any savings created thereby for any lawful City purpose if,
in the opinion of Roberts & Shefelman, the City's bond counsel,
the interest on the Bonds will remain exempt from federal income
taxation under Section 103(c) of the United States Internal
Revenue Code of 1954, as amended, and applicable regulations
thereunder, and if such substitution shall not impair the timely
payment of the principal of or interest on the 1981 Bonds or the
call, payment and redemption of the 1981 Bonds on May 1, 1991.
Section 8. The City calls for redemption on May 1, 1991,
all of the outstanding 1981 Bonds maturing on May 1 of each of
the years 1992 through 2001, at par plus accrued interest to the
date of such redemption.
Such call for redemption shall be irrevocable after the
delivery of the Bonds to the initial purchaser thereof.
The City Treasurer and the Refunding Trustee are authorized
and directed to give notice of the redemption of the 1981 Bonds
in accordance with the provisions of Ordinance No. 2287.
The Refunding Trustee is authorized and directed to pay the
principal of and interest on the 1981 Bonds from the Acquired
Obligations and money deposited with the Refunding Trustee
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pursuant to Section 7 of this ordinance. All Acquired Obliga-
tions and the beginning cash balance deposited with the Refund-
ing Trustee and any income therefrom shall be held, invested and
applied in accordance with the provisions of Ordinance No. 2287,
this ordinance, Chapter 39.53 RCW and other applicable statutes
of the State of Washington.
All necessary and proper fees, compensation and expenses of
the Refunding Trustee for the 1981 Bonds and all other costs
incidental to the establishment of the escrow to accomplish the
refunding of the 1981 Bonds and costs related to the issuance
and delivery of the Bonds including bond printing, rating serv-
ice fees, bond counsel's fees and other related expenses shall
be paid out of the proceeds of the Bonds.
The Mayor and City Clerk are directed to obtain from the
Refunding Trustee a Refunding Trust Agreement setting forth the
duties, obligations and responsibilities of the Refunding
Trustee in connection with the payment, redemption and retire-
ment of the 1981 Bonds as provided herein and stating that such
provisions for the payment of the fees, compensation and
expenses of such Refunding Trustee are satisfactory to it.
In order to carry out the purposes of Section 7 of this
ordinance. the Mayor and City Clerk of the City are authorized
and directed to execute a Refunding Trust Agreement substan-
tially in the form attached hereto as Exhibit A and by this
reference made a part hereof.
Section 9. In the event that money and/or "Government
Obligations," as such obligations are defined in Chapter 39.53
RCW, as now or hereafter amended, maturing at such time or times
and bearing interest to be earned thereon in amounts (together
with such money, if necessary) sufficient to redeem and retire
the Bonds in accordance with their terms, are set aside in a
special fund to effect such redemption and retirement and are
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pledged irrevocably for such purpose, then no further payments
need be made into the Bond Fund and the Bonds shall cease to be
entitled to any lien, benefit or security of this ordinance
except the right to receive the money so set aside and pledged,
and the Bonds shall be deemed not to be outstanding hereunder.
Anything herein to the contrary notwithstanding. the pledge of
the full faith and credit of the City to the payment of the
Bonds shall remain in full force and effect after the establish-
ing and full funding of such special fund. Subject to the
rights of the owners of Bonds, the City may then apply any money
in any other fund or account established for the payment or
redemption of the defeased Bonds to any lawful purposes as it
shall determine.
Section 10. Shearson Lehman Brothers Inc., Foster &
Marshall Division, of Seattle. Washington, has presented a
purchase contract dated June 17, 1985 (the "Purchase Contract.")
to the City offering to purchase the Bonds under the terms and
conditions provided in the Purchase Contract and to purchase on
behalf of the City the Acquired Obligations at the prices speci-
fied in Schedule A of Exhibit A (subject to substitution), which
written Purchase Contract is on file with the City Clerk and is
incorporated herein by this reference. The City Council finds
that entering into the Purchase Contract is in the City's best
interest and therefore accepts the offer contained in the
Purchase Contract and authorizes the execution of the Purchase
Contract by City officials.
The Bonds will be printed at City expense and will be
delivered to the purchaser in accordance with the Purchase
Contract, with the approving legal opinion of Roberts &
Shefelman, municipal bond counsel of Seattle, Washington,
relative to the issuance of the Bonds, printed on each Bond.
Bond counsel shall not be required to review or express any
opinion concerning the completeness or accuracy of any official
statement, offering circular or other sales material issued or
used in connection with the Bonds and bond counsel's opinion
shall so state.
The proper City officials are authorized and directed to do
everything necessary for the prompt delivery of the Bonds to the
purchaser and for the proper application and use of the proceeds
of the sale thereof.
Section 11. This ordinance shall take effect and be in
force from and after its passage and five (5) days following its
publication as required by law.
ATTEST:
City Cler
FORM APPROVED:
pCity
��d, o
Passed:
Approvedy.
Published:,./,
1778k
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MAYOR
EXHIBIT A
REFUNDING TRUST AGREEMENT
THIS AGREEMENT made and entered into as of the day of
July, 1985, by and between the CITY OF KENT, WASHINGTON (the
"City"), and RAINIER NATIONAL BANK, Seattle, Washington (the
"Refunding Trustee");
W I T N E S S E T H:
SECTION 1. Recitals. The City has outstanding $1,780,000
of Limited Tax General Obligation Bonds, 1981 (the "1981
Bonds"), dated May 1, 1981, maturing serially on May 1 of each
of the years 1986 through 2001, and bearing various interest
rates from 10% to 12% per annum, and, pursuant to Ordinance No.
(the "Refunding Bond Ordinance"), the City has determined
to pay the principal of and interest on the 1981 Bonds as the
same shall become due up to and including May 1, 1991, and, on
May 1. 1991, to call, pay and redeem all outstanding 1981 Bonds
maturing on May 1 of each of the years 1992 through 2001 out of
the proceeds of the sale of its Limited Tax General Obligation
Refunding Bonds, 1985 (the "Refunding Bonds"), and other City
money legally available therefor.
SECTION 2. Provisions for Refunding the_1981 Bonds. To
accomplish the refunding of the 1981 Bonds as aforesaid, the
City, simultaneously with the delivery of the Refunding Bonds
issued pursuant to the Refunding Bond Ordinance, agrees to
deposit irrevocably with the Refunding Trustee in trust for the
security and benefit of the owners of the 1981 Bonds and the
Refunding Bonds, the sum of $ in cash and certain
Acquired Obligations with amounts, interest rates and maturities
as more particularly set forth in Schedule A attached to this
Agreement and by this reference incorporated herein, which
securities hereinafter are referred to as Acquired Obligations.
Such cash and Acquired Obligations, with the investment income
therefrom, will be sufficient to provide the funds required to
pay the principal of and interest on the 1981 Bonds as the same
shall become due up to and including May 1, 1991, and, on May 1,
1991, to redeem and retire all outstanding 1981 Bonds maturing
on May 1 of each of the years 1992 through 2001.
The City reserves the right to substitute other direct
United States obligations for any of the Acquired Obligations
if, in the opinion of Roberts & Shefelman, the interest on the
Refunding Bonds will remain exempt from federal income taxation
under Section 103(c) of the Internal Revenue Code of 1954, as
amended, and ;applicable regulations thereunder, and if such
substitution shall not impair the timely payment of principal of
or interest on the 1981 Bonds up through May 1, 1991, and the
amount of principal required to pay and redeem the 1981 Bonds to
be called prior to maturity on their call date.
SECTION 3. Provisions Applicable to Refunding. On or
before the delivery of the Refunding Bonds, the City agrees that
it will cause to be delivered to the Refunding Trustee a state-
ment setting forth the amount of interest and principal to be
paid on each semiannual interest payment date on the 1981 Bonds
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up through May 1, 1991, and the amount of principal required to
pay and redeem the 1981 Bonds to be called prior to maturity on
their call date.
In the Refunding Bond Ordinance, the City has called for
redemption or prepayment all of the 1981 Bonds to be called as
above set forth on their call date. Such call for redemption or
prepayment shall be irrevocable upon the delivery of the Refund-
ing Bonds. The Refunding Trustee, in conjunction with the City
Treasurer, shall provide for publication and mailing of the
proper notices of such redemption or prepayments in accordance
with the applicable provisions of Ordinance No. 2287 pertaining
to the 1981 Bonds.
Irrevocable provision for the giving of such notices of
redemption or prepayment has been made by the City.
SECTION 4. Disbursements by Refunding Trustee. The
Refunding Trustee shall present for payment on the due date
thereof the Acquired Obligations so deposited and shall apply
the proceeds derived therefrom in accordance with the provisions
of this section.
Money shall be transferred by the Refunding Trustee to the
City Treasurer, or to either fiscal agency of the State of
Washington in Seattle, Washington, and New York, New York (the
"Fiscal Agent"), in amounts sufficient to pay the interest on
and principal of the 1981 Bonds coming due and payable on or
before each payment date.
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SECTION 5. Restrictions on Reinvestment of Funds; Custod
and Safekeeping of Acquired Obligations. All money deposited
with the Refunding Trustee or received by the Refunding Trustee
as maturing principal or interest on Acquired Obligations prior
to the time required to make the payments hereinbefore set forth
shall be reinvested in United States Treasury Certificates of
Indebtedness, Notes and/or Bonds -- State and Local Government
Series, bearing interest at a rate of 0%. Subscriptions for the
purchase of such obligations shall be filed with the Federal
Reserve Bank at least 20 days (but not more than 60 days) prior
to the actual date of purchase, or at such time as may be
requireLf by the then applicable rules and regulations relating
to the purchase of such obligations.
All income derived from the Acquired Obligations and any
money deposited with the Refunding Trustee pursuant to Section 2
hereof in the hands of the Refunding Trustee (which money is not
required to make the payments hereinbefore required to be made)
shall be paid to the City Treasurer or Fiscal Agent for the
credit of the Limited Tax General Obligation Refunding Bond
Fund. 1985, of the City (the "Bond Fund") as and when realized
and collected for use and application as other money deposited
In such Bond Fund.
For as long as any of the 1981 Bonds are outstanding. on or
before the 10th day of every month, commencing with the month of
August, 1985. the Refunding Trustee shall render a statement as
of the last day of the preceding month to the City, which
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statement shall set forth the Acquired Obligations which have
matured and the amounts received by the Refunding Trustee by
reason of such maturity; the investment income received from
such Acquired Obligations; the dates of payment and amounts paid
to the City or Fiscal Agent for the payment of the interest on
and principal of the outstanding 1981 Bonds until May 1, 1991,
the call date and final principal payment date for the outstand-
ing 1981 Bonds to be called; and any other transactions of the
Refunding Trustee pertaining to its duties and obligations as
set forth herein.
All Acquired Obligations, money and investment income
deposited with or received by the Refunding Trustee pursuant to
this Agreement :call be subject to the trust created by this
Agreement and the Refunding Trustee shall be liable for the
preservation and safekeeping thereof.
SECTION 6. Substituted Securities. Notwithstanding the
foregoing or any other provision of this Agreement, at the
request of the City and upon compliance with the conditions
hereinafter stated, the Refunding Trustee shall have the power
to and shall, in simultaneous transactions, sell, transfer,
otherwise dispose of or request the redemption of any or all of
the Acquired Obligations held hereunder and to substitute
therefor direct obligations of the United States of America, or
obligations the principal of and interest on which are uncondi-
tionally guaranteed by the United States of America, subject to
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the conditions that such money or securities held by the Refund-
ing Trustee shall be sufficient to pay the principal of and
Interest on the outstanding 1981 Bonds, whether at maturity or
upon the redemption thereof. The City covenants and agrees that
it will not request the Refunding Trustee to exercise any of the
powers described in the preceding sentence in any manner which
will cause the Refunding Bonds to be arbitrage bonds within the
meaning of Section 103(c) of the Internal Revenue Code of 1954,
as amended, and the regulations thereunder in effect on the date
of such request and applicable to obligations issued on the
issue date of the Refunding Bonds. The Refunding Trustee shall
purchase such substituted securities with the proceeds derived
from the maturity, sale, tranifer, disposition or redemption of
the Acquired Obligations held hereunder or from other money
available. The transactions may be effected only if there shall
have been obtained at the expense of the City: (1) an indepen-
dent verification by a nationally recognized independent certi-
fied public accounting firm acceptable to the Refunding Trustee
concerning the adequacy of such substituted securities with
respect to the principal of and the interest thereon and any
other money or securities held for such purpose to pay the
principal and interest on the outstanding 1981 Bonds, whether at
maturity or upon the redemption thereof; and (2) an'opinion to
the City from Roberts & Shefelman, bond counsel to the City, to
the effect that the disposition and substitution or purchase of
such securities will not, under the statutes, rules and regula-
tions then in force and applicable to the Refunding Bonds, cause
the interest on the Refunding Bonds not to be exempt from
federal income taxation and that such disposition and substitu-
tion or purchase is not inconsistent with the statutes and
regulations applicable to the Refunding Bonds. Any surplus
money resulting from the sale, transfer, other disposition or
redemption of th(' Acquired Obligations held hereunder and the
substitution therefor of direct obligations of the United States
of America, shall be released from the trust estate and shall be
transferred to the City.
SECTION 7. Duties and Obligations of Refunding Trustee.
The duties and obligations of the Refunding Trustee shall be as
prescribed by the provisions of this Agreement, and the Refund-
ing Trustee shall not be liable except for the performance of
its duties and obligations as specifically set forth herein and
to act in good faith in the performance thereof and no implied
duties or obligations shall be incurred by such Refunding
Trustee other than those specified herein.
The Refunding Trustee may consult with counsel of its
choice (except as provided below) and the opinion of such
counsel shall be full and complete authorization and protection
in respect of any action taken or not taken or suffered by it
hereunder in good faith and in accordance with the opinion of
such counsel. For any questions relating to the tax exempt
status of the interest on the 1981 Bonds or the Refunding Bonds,
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the Refunding Trustee must consult with Roberts & Shefelman,
bond counsel to the City.
Provisions for the fees, compensation and expenses of the
Refunding Trustee satisfactory to it have been made.
CITY OF KENT, WASHINGTON
By
Mayor
By
City Clerk
RAINIER NATIONAL BANK
By Trust Officer
1792k
SCHEDULE A
ACQUIRED OBLIGATIONS
TYPE* PAR AMOUNTS
SLGS
47,700.00
SLGS
60,500.00
SLGS
11,000.00
SLGS
66,400.00
SLGS
10,800.00
SLC S
71,300.00
SLGS
10,700.00
SLGS
76,200.00
SLGS
10,700.00
SLGS
86,200.00
SLGS
10,800.00
SLGS
1,486,200.00
INTEREST RATE MATURITY
7.00%
11/1/85
7.25
5/1/86
7.75
11/1/86
8.25
5/1/87
8.50
11/1/87
8.50
5/1/88
8.75
11/1/88
9.00
c-',/1/89
9.00
11/1/89
9.00
5/1/90
9.00
11/1/90
9.80
5/1/91
* U.S. Treasury Certificates of
Indebtedness, Notes and Bonds,
State and Local Government Series
I, MARIE JENSEN, City Clerk of the City of Kent, Washington,
hereby certify that the attached copy of Ordinance No.'`�2':5-46
is a true and correct copy of the original ordinance passed on
the 17 day of june, 1985, as that ordinance appears on the
Minute Book of the City.
DATED this v�� day of June, 1985.
MARIE JE �,Ci�tyC`lerk��