HomeMy WebLinkAboutAgenda - 02-29-2000-5aORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: February 29, 2000
Action Agenda
Item No. ,5-.q
SUBJECT: Band Sale Resolutions
DEPARTMENT: Finance PUBLIC HEARING: (Y/N) No
ATTACHMENT(S):
Resolution Providing For Bond Sale
Resolution Approving Initial and Continuing
Disclosure
Draft OfFicial Statement (Under Separate
Cover)
INFORMATION CONTACT:
Ken Chavious, ext 2453
Bob Jessup_
TELEPHONE NUMBERS:
Hillsborough 732-8181
Chapel Hill 968501
Durham 688-7331
Mebane 33fi-227-2031
PURPOSE: To consider adopting resolutions required for the sale of $40,175,000 in general
obligation bonds for Schools, Parks and Public Buildings.
BACKGROUND: During the past several months the County Commissioners have taken
various actions related to the upcoming sale of the bonds authorized by the voters in the
November 1997 referendum. In addition, the Board authorized the staff to pursue the issuance
of two-thirds Bonds for projects approved in the CIP. All requirements of the Local Government
Commission (LGC) have been met thus far for both sets of bonds and the bond sale is
scheduled for April 4, 2000. The sale will include $34.5 million for schools, $2.830 million for
parks and 2.845 million two-thirds bonds for public buildings.
The final Board action required on the bond sale schedule is the adoption of two resolutions.
Resolution Providin For A Bond Sale - This resolution essentially provides the official approval
of the final amount of the bonds to be sold and establishes the maturity structure for the bonds.
Resolution Approving Initial and Continuing Disclosure For Bonds - This resolution approves
the form of .the official statement and the terms of the County's continuing disclosure
requirements. This resolution is a relatively new requirement of the Securities and Exchange
Commission that insures that the County will provide certain financial information to institutions
holding County bonds after the bond sale as well as throughout the term of the debt. In
addition, the resolution designates the Finance Director as the individual responsible for
insuring the disclosure requirements are met.
The resolutions have been prepared by bond counsel and are attached.
FINANCIAL IMPACT: Bond issuance costs in the $35,000 to $50,000 range will be paid in the
current year. Funding will come from capital fund balance and will be reimbursed once the
bond proceeds are received and interest accrued. Debt service payments on the bonds will
begin next fiscal year. The annual amount of the debt payments will be determined once the
bonds are sold and will be included in the Manages recommended budget for the fiscal year
2000-2001. After the sale of these proposed bonds, the balance of the 1997 bonds unissued
are as follows:
Schools $12,500,000
Parks 3,170,000
Affordable Housing 1,800,000
Sanitary Sewer 1.200.000
Total Unissued $18,670,000
RECOMMENDATION(S): The Manager recommends that the Board adopt the attached
resolutions.
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RESOLUTION PROVIDING FOR A BOND SALE
WHEREAS:
The voters of Orange County, North Cazolina (the "County"), on November 4,
1997, approved the issuance of (a) $47,000,000 of the County's general obligation bonds
to pay capital costs of providing school facilities (the "School Bonds"), and (b)
$6,000,000 of general obligation bands to pay capital costs of providing parks and
recreation facilities (the "Pazks Bonds").
In addition, on February 1, 2000, the County's Board of Commissioners (the
"Board") authorized the issuance of $2,846,000 County general obligation public
buildings bonds. These bonds do not require referendum approval.
The Boazd has now determined to issue a portion of such bonds.
BE IT THEREFORE RESOLVED by the Board of Commissioners of Orange
County, North Carolina, as follows:
1. The County shall issue and sell (a) $34,500,000 of the unissued School
Bonds and (b) $2,830,000 of the unissued Parks Bonds for their respective authorized
purposes. Such School Bonds and Parks Bonds shall be combined for sale as a single
issue (referred to in this resolution as the "Referendum Bonds") (the Referendum Bonds
and the Two-Thirds Bonds will be referred to collectively in this resolution as the
"Bonds").
2. The County shall also issue and sell $2,845,000 of the Two-Thirds Bands
for their authorized purpose. The Two-Thirds Bonds shall be sold as a sepazate issue but
simultaneously with the Referendum Bands.
3. The Two-Thirds Bonds shall be designated "Public Improvement Bands,
Series 2000A," and the Referendum Bonds shall be designated "Public Improvement
Bonds, Series 2000B." All the Bonds shall be dated April 1, 2000, shall be in fully
registered form in denominations of $5,000 and integral multiples thereof, and shall be
numbered from R-1 upwazd separately within each series.
4. The principal of the Referendum Bonds shall be payable in installments on
April 1 in years and amounts as follows: $1,100,000 in years 2001-2006; $1,200,p00 in
years 2007-2013; $3,800,000 in years 2014-2017; $4,400,000 in 2018; and $930,000 in
2019.
5. The principal of the Two-Thirds Bonds shall be payable in installments on
April 1 in years and amounts as follows: $100,000 in years 2001-2014; $400,000 in years
2015-2017; and $245,000 in 2018.
6. Each Bond shall beaz interest at such rate as shall be determined at the time
of its sale. Interest on each Bond shall be payable semiannually on each April 1 and
a
October 1, beginning October 1, 2000, (a) from April 1, 2000, if it is authenticated prior
to October 1, 2000, or (b) otherwise from the April 1 or October 1, that is, or immediately
precedes, the date on which it is authenticated (unless payment of interest thereon is in
default, in which case such Bonds shall bear interest from the date to which interest has
been paid). Principal, premium, if any, and interest shall be payable in lawful money of
the United States of America.
7. Bonds maturing prior to April 1, 2011, shall not be subject to redemption
prior to maturity. Bonds maturing an April 1, 2011, and thereafter shall be redeemable,
at the County's option from any moneys that may be made available for such purpose,
either in whole or in part, an ar after April 1, 2010, at the principal amount of the Bands
to be redeemed, together with interest accrued thereon to the date fixed for redemption,
plus a premium of 1 /2 of 1 % of the principal amount of each Bond to be redeemed for
each period of 12 months or part thereof between the redemption date and the maturity
date of such Bonds, such premium not to exceed 2% of such principal amount.
If less than all of the Bonds stated to mature on different dates shall be called for
redemption, the Bonds shall be redeemed in the inverse order of their maturities. If less
than all of the Bonds of any one maturity are called for redemption, the Bonds or portions
thereof of such maturity to be redeemed shall be selected by lot in such manner as the
County in its discretion may determine; provided, however, that the portion of any Band
to be redeemed shall be in the principal amount of $5,000 or some integral multiple
thereof and that, in selecting Bands for redemption, each Bond shall be considered as
representing that number of Bonds which is obtained by dividing the principal amount of
such Bond by $5,000. If a portion of a Bond is called far redemption, a new Bond in
amount equal to the unredeemed portion thereof shall be issued to the registered owner
upon the surrender thereof. For the purposes of these redemption rules, the County shall
treat the Referendum Bonds and the Two-Thirds Bands as a single issue.
The County shall give native of redemption by certified or registered mail to the
registered owners of the Bonds. The County shall mail such notice not more than 60
days and not less than 30 days prior to the date fixed for redemption.
8. The County's full faith and credit are irrevocably pledged for the payment
of the principal of and interest on the Bonds. Unless other funds are lawfully available
and appropriated for timely payment of the Bonds, the Board shall levy and collect an
annual ad valorem tax, without restriction as to rate or amount, on all locally taxable
property in the County sufficient to pay the principal of and interest on the Bonds as the
same become due.
9. The Bonds shall be in substantially the form set out in Exhibit A. The
Bonds shall be signed by the manual or facsimile signature of the Board's Chair ar Vice
Chair, shall be countersigned by the manual ar facsimile signature of the Board's Clerk or
any Assistant Clerk, and the County's seal shall be affixed thereto or a facsimile thereof
printed thereon, but no Bond shall be valid unless at least one of the signatures appearing
5
on such Bond (which may be the signature of the LGC's representative required by law)
is manually applied or until such Bond has been authenticated by the manual signature of
an authorized officer or employee of a bond registrar selected by the County.
10. The Finance Officer is appointed Registrar for the Bands. As Registrar, the
Finance Officer shall maintain appropriate books and records of the ownership of the
Bonds. The County shall treat the registered owner of each Bond as the person
exclusively entitled to payment of principal, premium, if any, and interest and the
exercise of all rights and powers of the owner, except that interest payments shall be
made to the person shown as owner on the registration books on the 15th day of the
month preceding each interest payment date.
11. The County requests that the LGC sell the Bonds. After the LGC has
awarded the Bonds to the successful bidder, all County officers and employees are
authorized and directed to take all proper steps to have the Bands prepared and executed
in accordance with their terms and to deliver the Bonds to the purchasers thereof upon
payment therefor.
12. There has been presented to the Board a draft of a Notice of Sale and Bid
Form relating to the Bonds (the "Notice of Sale"). The Finance Officer, in collaboration
with the LGC, is authorized and directed to take all proper steps to advertise the Bonds
for sale substantially in accordance with the draft Notice of Sale, which is approved,
provided that the Finance Officer, in collaboration with the LGC, may make such
changes in the Norice of Sale not inconsistent with this resolution as he may consider to
be in the County's best interest.
13. The Finance Officer is authorized and directed to provide for the
publication of a notice of sale of the Bonds, in such farm as he may determine, at least
one time each in both (a) a newspaper having general circulation in the County and (b) a
recognized national financial journal, in each case at least five days prior to the sale date
for the Bands, all in accordance with LGC guidelines.
14. The Finance Officer is authorized and directed to hold the executed Bonds,
and any other documents authorized or permitted by this resolution, in escrow on the
County's behalf until the conditions for the delivery of the Bonds and other documents
have been completed to the Finance Officer's satisfaction, and thereupon to release the
executed Bonds and other documents for delivery to the appropriate persons or
organizations. Without limiting the generality of the foregoing, this authorization and
direction is specifically extended to authorize the Finance Officer (a) to enter into such
agreements or take such other actions as he may deem appropriate in connection with
obtaining bond insurance for the Bands, or (b) to approve changes to any documents or
closing certifications previously signed by County officers or employees, provided that
the Bonds shall be in substantially the farm approved by this resolution and that any such
changes shall not substantially alter the intent of such certificates from that expressed in
the forms of such certificates as executed by such officers or employees. The Finance
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Officer's authorization of the release of any such document for delivery shall constitute
conclusive evidence of his approval of any such changes.
15. Resolutions As To Tax Matters -- The County shall not take or omit to take
any action the taking or omission of which will cause the Bonds to be "arbitrage bands,"
within the meaning of Section 14$ of the "Code" (as defined below), or "private activity
bonds" within the meaning of Code Section 141, or otherwise cause interest on the Bands
to be includable in gross income for federal income tax purposes. Without limiting the
generality of the foregoing, the County shall comply with any Code provision that may
require the County at any time to pay to the United States any part of the earnings derived
from the investment of the proceeds of the Bonds, and the County shall pay any such
required rebate from its general funds. For this paragraph, "Code" means the United
States Internal Revenue Code of 19$6, as amended through the closing date of the Bonds,
including applicable Treasury regulations.
16. Book Entry System for Bond Registration -- The Bonds shall be issued
by means of a book-entry system, with one bond certificate for each maturity
immobilized at The Depository Trust Company, New York, New York ("DTC"), and not
available for distribution to the public. Transfer of beneficial ownership interests in the
Bonds in the principal amounts of $5,000 or any integral multiple thereof shall be
effected an the records of DTC and its participants pursuant to rules and procedures
established by DTC and its participants. The County shall pay principal, premium, if any,
and interest on the Bonds to DTC or its nominee as registered owner of the Bonds. The
County shall not be responsible or liable for such transfer of payments to parties other
than DTC or for maintaining, supervising or reviewing the records maintained by DTC or
any other person related to the Bonds.
If (a) DTC determines not to continue to act as securities depository for the Bonds
or (b) the County so elects, the County will discontinue the book-entry system with DTC.
If the County fails to identify another qualified securities depository to replace DTC, the
County shall deliver fully-registered certificates as replacements far Bonds in book-entry
form. Such certificates shall be in such form as the Board may hereafter authorize.
So long as a book-entry system with DTC is used far determining beneficial
ownership of Bonds, if less than all of the Bonds within any maturity are to be redeemed,
DTC shall determine (or provide for the determination of) which of the Bonds within
such maturity are to be redeemed. Sa long as DTC or its nominee is the registered owner
of all the Bonds, the County shall not be responsible for mailing notices of redemption to
anyone other than DTC or its nominee.
17. Miscellaneous Provisions -- All County officers and employees are
authorized and directed to take all such further action as they may consider necessary or
desirable in connection with the furtherance of the purposes of this resolution. All such
prior actions of County officers and employees are ratified, approved and confirmed. All
other resolutions, or parts thereof, in conflict with this resolution are repealed, to the
extent of the conflict. This resolution shall take effect immediately.
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EXHIBIT A -Form of Bonds
REGISTERED REGISTERED
Number R-X
UNITED STATES OF AMERICA
STATE OF NORTH CAROLINA
ORANGE COUNTY
Public Im rovement Bond Series z000A /Public Im rovement Bond Series 2000B
INTEREST RATE MATURITY
DATE DATED DATE CUSIP
A ril 1, Aril 1, 2000
REGISTERED OWNER:*****CEDE & CO.*****
PRINCIPAL AMOUNT: **** THOUSAND DOLLARS ($ ,000)***
Orange County, North Carolina (the "County"), for value received, promises to
pay to the registered owner hereof, or registered assigns or legal representative, the
principal amount stated above on the maturity date stated above, subject to prior
redemption as described herein, and to pay interest on this Bond semiannually on each
April 1 and October 1, beginning October 1, 2000, at the annual rate stated above.
Interest is payable (a) from April 1, 2000, if this Bond is authenticated prior to October 1,
2000, or (b) otherwise from the April 1 or October 1 that is, or immediately precedes, the
date on which this Bond is authenticated (unless payment of interest hereon is in default,
in which case this Bond shall bear interest from the date to which interest has been paid).
Principal, premium, if any, and interest are payable in lawful money of the United States
of America.
[This Bond is one of an issue of the County's $37,330,000 Public Improvement
Bonds, Series 2000B (the "Bonds"), of like date and tenor, except as to number,
denomination, rate of interest, privilege of redemption and maturity. The Bands have
been authorized by a bond order adopted by the County's Board of Commissioners on
August 2S, 1997, and are issued pursuant to a resolution adapted by such Board on
February 29, 2000, and the Constitution and laws of the State of North Carolina,
including the Local Government Band Act.]
[This Bond is one of an issue of the County's $2,845,000 Public Improvement
Bonds, Series 2000A (the "Bonds"), of like date and tenor, except as to number,
9
denomination, rate of interest, privilege of redemption and maturity. The Bonds have
been authorized by a bond order adopted by the County's Board of Commissioners on
February 1, 2000, and are issued pursuant to a resolution adopted by such Board an
February 29, 2000, and the Constitution and laws of the State of North Carolina,
including the Local Government Bond Act, to provide funds, together with other
available funds, to pay capital costs of providing public buildings.]
The County's full faith and credit are pledged for the payment of principal of and
interest on this Bond.
The Bonds are issued by means of a book-entry system, with one bond certificate
for each maturity immobilized at The Depository Trust Company, New York, New York
("DTC"), and not available for distribution to the public. Transfer of beneficial ownership
interests in the Bonds in the principal amount of $5,000 or any integral multiple thereof
shall be effected on the records of DTC and its participants pursuant to rules and
procedures established by DTC and its participants. Principal, premium, if any, and
interest on the Bonds are payable by the County to DTC or its nominee as registered
owner of the Bonds. The County is not responsible or liable for such transfer of
ownership or payments or for maintaining, supervising or reviewing the records
maintained by DTC, its participants or persons acting through such participants.
Bonds maturing prior to April 1, 2011, are not subject to redemption prior to
maturity. Bonds maturing on April 1, 2011, and thereafter are redeemable, at the
County's option from any moneys that may be made available for such purpose, either in
whole or in part, on or after April 1, 2010, at the principal amount of the Bonds to be
redeemed, together with interest accrued thereon to the date fixed for redemption, plus a
premium of 1/2 of 1% of the principal amount of each Bond to be redeemed for each
period of 12 months or part thereof between the redemption date and the maturity date of
such Bonds, such premium not to exceed 2% of such principal amount.
If less than all of the Bonds stated to mature on different dates shall be called for
redemption, the Bonds shall be redeemed in the inverse order of their maturities. If less
than all of the Bonds of any one maturity are called for redemption, the particular Bonds
or portions of Bonds of such maturity to be redeemed shall be selected by lot in such
manner as the County in its discretion may determine; provided, however, that the
portion of each Bond to be redeemed shall be in the principal amount of $5,000 or some
integral multiple thereof, and that, in selecting Bands for redemption, each Bond shall be
considered as representing that number of Bonds which is obtained by dividing the
principal amount of such Bond by $5,000. Notwithstanding the foregoing, so long as a
book-entry system with DTC is used for determining beneficial ownership of Bonds, if
less than all of the Bonds within a maturity are to be redeemed, DTC and its participants
shall determine which of the Bonds within any such maturity are to be redeemed. If a
portion of a Bond is called for redemption, a new Bond in principal amount equal to the
unredeemed portion thereof shall be issued to the registered owner upon the surrender
thereof.
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The County shall give notice of redemption by certified or registered mail to DTC
or its nominee as the registered owner of the Bonds. The County shall mail such notice
not more than 60 days and not less than 30 days prior to the date fixed for redemption.
The County is not responsible far sending notices of redemption to anyone other than
DTC or its nominee.
If (a) DTC determines not to continue to act as securities depository for the Bonds
or (b) the County so elects, the County will discontinue the book-entry system with DTC.
If the County fails to identify another qualified securities depository to replace DTC, the
County shall deliver replacement Bonds in the form of fully-registered certificates.
The County Finance Officer has been appointed Registrar for the Bonds. As
Registrar, the Finance Officer shall maintain appropriate books and records indicating
ownership of the Bonds. The County shall treat the registered owner of this Band as the
person exclusively entitled to payment of principal, premium, if any, and interest and the
exercise of all other rights and powers of the owner, except that interest payments shall
be made to the person shown as owner on the County's registration books on the 15th day
of the month preceding each interest payment date.
All acts, conditions and things required by the Constitutian and laws of the State
of North Carolina to happen, exist or be performed precedent to and in the issuance of
this Bond have happened, exist and have been performed, and the issue of Bonds of
which this Bond is one, together will all other indebtedness of the County, is within every
debt and other limit prescribed by the Constitution and laws of the State of North
Carolina.
IN WITNESS WHEREOF, Orange County, North Carolina, has caused this
Bond to signed by the Chair of its Board of Commissioners, to be countersigned by the
Clerk to such Board, its seal to be impressed hereon and this Bond to be dated April 1,
2000.
COUNTERSIGNED: (SEAL)
jSam~le only - do not sienl
Clerk, Board of
Commissioners, Orange
County, North Carolina
f Sample only - do not si~nl
Chair, Board of Commissioners,
Orange County, North Carolina
The Bonds have been approved by the North Carolina Local Government
Commission in accordance with the Local Government Bond Act.
s/Robert M. High
Secretary, Local Government Commission
ASSIGNMENT
FOR VALUE RECEIVED the undersigned se11(s), assign(s) and transfer(s) unto
(Please print or type Transferee's name and address, including zip code)
PLEASE INSERT SOCIAL SECURITY OR OTHER
IDENTIFYING NUMBER OR TRANSFEREE:
the within bond and all rights thereunder, irrevocably constituting and appointing
Attorney, to transfer said bond on the books kept for
the registration thereof, with full power of substitution in the premises.
Dated:
Signature Guaranteed:
NOTICE: Signature(s) must be
guaranteed by a member firm of
the New York Stock Exchange or
a commercial bank or trust company
(Signature of Registered Owner)
NOTICE: The signature above
must correspond with the name
the registered owner as it appears
on the front of this bond in every
particular without alteration or
enlargement or any change
whatsoever.
tz
Resolution A~pnroving Initial and Continuing Disclosure for Bonds
WHEREAS:
The Board of Commissioners (the "Board") of Orange County, North Carolina
(the "County"), has approved the issuance and sale of County general obligation bands in
the aggregate principal amount of $40,175,000 (the "2000 Bonds").
There has been provided to each member of the Board the form of an official
statement (the "Official Statement") relating to the 2000 Bonds, pursuant to which the
2000 Bonds will be offered for sale. The Official Statement remains subject to
completion and amendment.
The Finance Officer has advised the Board concerning the County's obligation for
complete and accurate disclosure in the initial offering of the 2000 Bonds, and the need
for the County to make certain undertakings concerning continuing disclosure.
BE IT THEREFORE RESOLVED by the Board of Commissioners of Orange
County, North Carolina, as follows:
1. Approval of Official Statement for Offering -- The Official Statement is
approved as the form of official statement pursuant to which the 2000 Bonds shall be
offered for sale. The actions of the Finance Officer, in collaboration with representatives
of the North Carolina Local Government Commission (the "LGC"), to prepare the
Official Statement are ratified, approved and confirmed. The Board approves the LGC's
distribution of the Official Statement to prospective purchasers of the 2000 Bonds. The
Official Statement as so distributed shall be in substantially the form presented to this
meeting, with such changes as the Finance Officer may approve.
2. Completion of Official Statement after Sale -- After bids have been
received and the LGC has awarded the 2004 Bonds to the successful purchaser, the
Finance Officer is authorized and directed to prepare, in collaboration with the LGC, a
supplement to the Official Statement containing, among such other matters as may be
appropriate, information required pursuant to Rule 15c2-12 ("Rule 15c2-12")
promulgated by the United States Securities and Exchange Commission under the United
States Securities Act of 1934, as amended. The County, together with the LGC, shall
arrange for the delivery within seven business days of the date the 2000 Bonds are sold of
a reasonable number of copies of the supplemented Off cial Statement to the successful
bidder on the 2000 Bonds for delivery to each potential investor requesting a copy of the
supplemented Official Statement and to each person to whom such bidder and members
of the bidding group initially sell the 2000 Bands.
3. Official Statements Deemed Final -- The Finance Officer is authorized,
on the County's behalf, to deem the supplemented Official Statement to be a "Final
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Official Statement" within the meaning of Rule 15c2-12. The LGC's distribution of the
supplemented Official Statement shall be conclusive evidence that the County has
deemed it final as of its date. A11 County officers are authorized and directed to execute
the final supplemented Official Statement in the form approved by the Finance Officer.
4. Undertaking for Continuing Disclosure -The County undertakes, far the
benefit of the beneficial owners of the 2000 Bonds, to provide the following:
(a) by not later than seven months from the end of each of the County's fiscal
years, to each nationally recognized municipal securities information repository
("NRMSIR"), and the state information depository for the State of North Carolina
("SID"), if any, audited County financial statements for such fiscal year, if available,
prepared in accordance with Section 159-34 of the General Statutes of North Carolina, as
it may be amended form time to time, or any successor statute, or, if such audited
financial statements are not available by seven months from the end of any fiscal year,
unaudited County financial statements for such fiscal year, to be replaced subsequently
by audited County financial statements to be delivered within 15 days after such audited
financial statements became available for distribution;
(b) by not later than seven months from the end of each of the County's fiscal
years, to each NRMSIR, and to the SID, if any, (i) the financial and statistical data as of a
date not earlier than the end of the preceding fiscal year (which data shall be prepazed at
least annually, shall specify the date as to which such information was prepared and shall
be delivered with any subsequent material events notices specified in subparagraph (c)
below) for the type of information included under heading "The County -Debt
Information" and "- Tax Information" in the final Official Statement (excluding any
information on overlapping or underlying units), and (ii) the combined budget of the
County for the current fiscal year, to the extent such items aze not included in the audited
financial statements referred to in (a) above;
(c) in a timely manner, to each NRMSIR or to the Municipal Securities
Rulemaking Board ("MSRB"), and to the SID, if any, notice of any of the following
events with respect to the 2000 Bonds, if material:
(1) principal and interest payment delinquencies;
(2) non-payment related defaults;
(3) unscheduled draws on debt service reserves reflecting financial
difficulties;
(4) unscheduled draws on any credit enhancements reflecting financial
difficulties;
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(5) substitution of credit or liquidity providers, or their failure to
perform;
(6) adverse tax opinions or events affecting the tax-exempt status of the
2000 Bonds;
(7) modifications to rights of the beneficial owners of the 2000 Bands;
(8) Band calls;
(9) defeasances;
(10) release, substitution or sale of any property securing repayment of
the 2000 Bonds; and
(11) rating changes; and
(d) in a timely manner, to each NRMSIR or to the MSRB, and to the SID, if
any, notice of a failure of the County to provide required annual financial infarmarian
described in (a) or (b) above on or before the date specified.
If the County fails to comply with the undertaking described above, any beneficial
owner of the 2000 Bonds may take action to protect and enforce the rights of all
beneficial owners with respect to such undertaking, including an action for specific
performance; provided, however, that failure to comply with such undertaking shall not
be an event of default and shall not result in any acceleration of payment of the 2000
Bonds. A11 actions shall be instituted, had and maintained in the manner provided in this
paragraph for the benefit of all benef cial owners of the 2000 Bonds.
The County reserves the right to modify from time to time the infarmation to be
provided to the extent necessary or appropriate in the County's judgment, provided that:
(i) any such modification may only be made in connection with a change in
circumstances that arises from a change in legal requirements, change in law, or change
in the identity, nature, or status of the County;
(ii) the information to be provided, as modified, would have complied with the
requirements of Rule 15c2-12 as of the date of the final Official Statement, after taking
into account any amendments or interpretations of Rule 15c2-12, as well as any changes
in circumstances; and
(iii) any such modification does not materially impair the interests of the
beneficial owners, as determined either by parties unaffiliated with the County or by the
approving vote of the registered owners of a majority in principal amount of the 2000
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Bonds pursuant to the terms of the bond resolution, as it may be amended from time to
time, at the time of the amendment.
Any annual Financial information containing modified operating data or financial
information shall explain, in narrative form, the reasons for the modification and the
impact of the change in the type of operating data or financial information being
provided.
The provisions of this Section shall terminate upon payment, or provision having
been made for payment, in a manner consistent with Rule 15c2-12, in full of the principal
of and interest on all of the 2000 Bonds.
S. Designation of Primary Responsible Official -The Boazd designates the
Finance Officer as the County officer to be primarily responsible for the County"s
compliance with its undertakings in this resolution. The Finance Officer shall provide for
the filings and reports provided for in this resolution (including the reports of material
events as described above).
6. Miscellaneous Provisions -- All other actions of County officers and
employees in furtherance of the purposes of this resolution aze ratified, approved and
confirmed. All other resolutions, ar parts thereof, in conflict with this resolution aze
repealed, to the extent of the conflict. This resolution shall take effect immediately.