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01-311° ��G � -Z��d/ CouncilFile# 0 �" 3 �� 0 R I G I�I � L Green Sheet # l � ��,St` RESOLUTION ���/,,� "' ITY OF SAINT PAUL, MINNESOTA '�"� Presented By j �����L Referred To Committee: Date ACCEPTING PROPOSAL ON SALE OF $19,000,000 GENERAL OBLIGATION CAPITAL IMPROVEMENT BONDS, SERIES 2001A, PROVIDING FOR THEIR ISSUANCE, AND LEVYING A TAX FOR THE PAYMENT THEREOF WHEREAS, the Director, Office of Financial Services, has presented proposals received for the sale of $19,000,000 General Obligation Capital Improvement Bonds, Series ZOOlA (the "Bonds"), of the City of Saint Paul, Minnesota (the "City"); and 9 WHEREAS, the proposals set forth on Exhibit A attached hereto were received 10 pursuant to the Terms of Proposal at the offices of Springsted Incorporated at 10:30 A.M., 11 Central Time, this same day; and 12 WHEREAS, the Director, Office of Financial Services, has advised this Council 13 that the proposal of ,�� e,�' m�r.�,a �r.>.�., �S ✓LeWas found to be the most advantageous 14 and has recommended that said proposal be accepted; and 15 WHEREAS, the proceeds of the Bonds will finance certain capital improvements, 16 for which the City is proceeding pursuant to its Charter and Laws of Minnesota far 1971, 17 Chapter 773, as amended, with any excess to be used for any other purpose pezmitted by law; 18 and 19 WHEREAS, the City has hereto£ore issued registered obligations in certificated 20 form, and incurs substantial costs associated with their printing and issuance, and substantial 21 continuing transaction costs relating to their payment, transfer and exchange; and 22 WHEREAS, the City has determined that significant savings in transaction costs 23 will result from issuing bonds in "global book-entry form", by which bonds are issued in 24 certificated form in large denominations, registered on the books of the City in the name of a 25 depository ar its nominee, and held in safekeeping and immobilized by such depository, and such 26 depository as part of the computerized national securities clearance and settlement system (the 27 "National System") registers transfers of ownership interests in the bonds by making 28 computerized book entries on its own books and distributes payments on the bonds to its 29 Participants shown on its books as the owners of such interests; and such Participants and other 30 banks, brokers and dealers participating in the National System will do likewise (not as agents of 31 the City) if not the beneficial owners of the bonds; and 1 12G8773v2 DI-��� WFIEREAS, "Participants" means those financial institutions for whom the Depository effects book-entry transfers and pledges of securities deposited and immobilized with lhe Depository; and WHEREAS, The Depository Trust Company, a limited purpose trust company orglnized under the laws of the State of New York, or any of its successors or successors to its functions hereunder (the "Depositary"), will act as such depository with respect to the Bonds except as set forth below, and the City has heretofare delivered a letter of representations (the "Lelter of Representations") setting forth various matters relating to the Depository and its role with respect to the Bonds; and ] 0 WHEREAS, the City will deliver the Bonds in the form of one certificate per ll maturily, each representing the entire principal amount of the Bonds due on a particular maturity 12 daYe (each a"Global Cerlificate"), which single certificate per maturity may be transferred on the 13 City's bond register as required by the Uniform Commercial Code, but not exchanged for smaller 14 denominalions unless the City determines to issue Replacement Bonds as provided below; and 15 WH�REAS, the City will be able to replace the Depository or under certain 16 circumstances to abandon the "global book-entry form" by permitting the Global Certificates to 17 Ue exchanged for smaller denominations typical of ordinary bonds registered on the City's bond 18 registei; and "Replacement Bonds" means the certificates representing the Bonds so 19 authenticated and delivered by the Bond Registrar pursuant to paragraphs 6 and 12 hereof; and 20 WHEREAS, "Holder" as used herein means the person in whose name a Bond is 21 registered on Che registration books of the City mainYained by the registrar appointed as provided 22 in paragraph 8(the "Bond Registrar"); and 23 WHEREAS, Rule 15c2-12 of the Securities and Exchange Commission prohibits 24 "participlling underwriters° from purchasing ar selling the Bonds unless the City undertakes to 25 provide cerlain continuing disclosure with respect to the Bonds; and 26 WHEREAS, pursuant to Minnesota Statutes, Section 475.60, Subdivision 2(9), 27 public sale requirements do not apply to the Bonds if the City retains an independent financial 28 ldvisor and determines to sell the Bonds by private negotiation, and the City has instead 29 autliorized a competitive sale without publication of notice thereof as a form of private 30 negoliatioi�; and 31 WHEREAS, proposals for the Bonds have been solicited by Springsted 32 Incorporlted p�u•s�iant to an Official Statement and Terms of Proposal therein: 33 NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Saint 34 Paul, Minnesota, as follows: 35 l. Acceptance of Proposal. The proposal of Banc of America Securities, 36 LLC (the "Purcl�aser"), to purchase $19,OOQ000 General Obligation Capital Improvement 37 Bonds, Series 2001A, of the City (the "Bonds", or individually a"Bond"), in accordance with the 38 Terms of Proposal for the bond sale, at the rates of interest set forth hereinafter, and to pay for 39 the Bonds the sum of $19,681,895.40, plus interest accrued to settlement, is hereby found, 2 i26877Jv2 ai-��i a 5 0 10 WHEREAS, the City will deliver the Bonds in the form of one certificate per I 1 maturity, e h representing the entire principal amount of the Bonds due on a particular maturity 12 date (each a' lobal Certificate"), which single certificate per maturity may be transferred on the 13 City's bond reg ter as required by the Uniform Commercial Code, but not exchanged for smaller 14 denominations u��ess the City determines to issue Replacement Bonds as provided below; and IS WHEf�EAS, the Citywill be able to replace the Depository or under certain 16 circumstances to abancl n the "giobal book-entry form" by permitting the Global Certificates to 17 be exchanged for smalle�enominations typica( of ordinary bonds registered on the City's bond 18 register; and "Replacemente onds" means the certificates representing the Bonds so 19 authenticated and delivered the Bond Registraz pursuant to paragraphs 6 and 12 hereof; and 20 WHEREAS, "H'�er" as used herein means the person in whose name a Bond is 21 registered on the registration boo s of the City maintained by the registrar appointed as provided 22 in paragraph 8(the "Bond Reg�straPk�); and 23 WHEREAS, Rule 15c2��12 of the Securities and Exchange Commission prohibits 24 "participating underwriters" from purcti'�sing or selling the Bonds unless the City undertakes to 25 provide certain continuing disclosure witl�respect to the Bonds; and WHEREAS, "Participants" means those financial institutions for whom the Depository effects book-entry transfers and pledges of securities deposited and immobilized with the Depository; and WHEREAS, The Depository Trust Company, a limited purpose trust company rganized under the laws of the State of New York, or any of its successors or successors to its nctions hereunder (the "Depository"), will act as such depository with respect to the Bonds ex ept as set forth below, and the City has heretofore delivered a letter of representations (the "Le r of Representations") setting forth various matters relating to the Depository and its role with spect to the Bonds; and 26 WHEREAS, pursuant to Min�esota Statutes, Section 475.60, Subdivision 2(9), 27 public sale requirements do not apply to the �gnds if the City retains an independent financial 28 advisor and determines to sell the Bonds by pn�ate negotiation, and the City has instead 29 authorized a competitive sale without publicatio�of notice thereof as a form of private 30 negotiation; and � 31 32 WHEREAS, proposals for the Bonds Incorporated pursuant to an Official Statement and 7 been solicited by Springsted ofProposaltherein: 33 34 35 36 37 38 39 NOW, THEREFORE, BE IT Paul, Minnesota, as follows: the Council of the City of Saint 1. Acceptance of Proposal. The proposal � "Purchaser") to purchase $19,000,000 General Obligation Cap 2001A, of the City (the "Bonds", or individually a"Bond"), in Proposal for the bond sale, at the rates of interesf set forth hereinafte the sum of $ �, plus interest acarued to settlement, 1268777v2 (the with the Terms of to pay for the Bonds eby found, determined ��. \ P�—�3�/ 10 11 12 13 determined and declared to be the most favorable proposal received and is hereby accepted, and the Bonds are hereby awarded to the Purchaser. The Director, Office of Financial Services, or his designee, is directed to retain the deposit of the Purchaser and to forthwith return to the others making proposals their good faith checks or drafts. 2. Title; Original Issue Date; Denominations; Maturities. The Bonds shall be tilled "General OUligation Capital Improvement Bonds, Series 2001A", shall be dated April 1, 2001, as the date of original issue and shall be issued forthwith on or after such date as fully registered bonds. The Bonds shall be numbered from R-1 upward. Global Certificates shall each be in lhe denomination of lhe entire principal amount maturing on a single date, or, if a portion of said principal amowrt is prepaid, said principal amount less the prepayment. Replacement Bonds, if isstted as provided in paragraph 6, shall be in the denomination of $5,000 each or in auy integral multiple thereof of a single maturity. The Bonds shall mature on March 1 in the years and amounts as follows: Year 2002 2003 2004 2005 2006 14 15 16 17 18 19 20 21 22 Amount $1,660,000 1,655,000 1,715,000 1,775,000 1,845,000 Year 2007 2008 2009 2010 2011 Amount $1,910,000 1,985,000 2,065,000 2,150,000 2,240,000 3. Purpose. The Bonds shall provide funds for the construction of the capital iinprovemenis in the City's 2001 capital improvement budget (the "ImprovemenYs"), including payments on a lease relating to the City's central library. The proceeds of the Bonds shall be deposited 1nd used as provided in paragraph 17, far the purpose described by Laws of Minnesota for 1971, Cl�apter 773, as amended, and any excess moneys shall be devoted to any other purpose �ermitted by law. The total cost of the Improvements, which shall include all costs enumerated in Minnesota Statutes, Section 475.65, is estimated to be at least equal to the amount of the Bonds. Work on the Improvements shall proceed with due diligence to completion. 23 4. Interest. The Bonds shall bear interest payable semiannually on March 1 24 and 5eptember 1 of each year (each, an"Interest Payment Date"), commencing September 1, 25 2001, calculated on the basis of a 360-day year of twelve 30-day months, at the respective rates 26 per amzum set forth opposite the maturity years as follows: Mlturit� 2002 2003 2004 2005 2006 27 12G8773v2 Interest Rate 4.0 % 4.5 4.5 4.5 4.5 Maturitv Year 2007 2008 2009 2010 2011 Interest Rate 5.0% 5.0 5.0 5.0 5.0 O/-3// and declared to be the most favorable proposal received and is hereby accepted, and the Bonds 2 are hereby awarded to the Purchaser. The Director, Offce of Financial Services, or his designee, 3,, is directed to retain the deposit o€'the Purchaser and to forthwith retum to the others making 4 roposals their good faith checks or drafts. 5 � 2. Title: Original Issue Date; Denominations; Maturities. The Bonds shall be 6 titlec��."General Obligation Capital Improvement Bonds, Series 2001A", shall be dated April 1, 7 2001, ns the date of original issue and shall be issued forthwith on or after such date as fully 8 register�e�l bonds. The Bonds shall be numbered from R-1 upward. Global Certificates shall each 9 be in the i� nomination of the entire principal amount maturing on a single date, or, if a portion 10 of said prin�� al amount is prepaid, said principal amount less the prepayment. Replacement 11 Bonds, if issu�d as provided in paragraph 6, shall be in the denomination of $5,000 each or in 12 any integral rnul,Giple thereof of a single maturity. The Bonds shall mature on March 1 in the 13 years and amountg as follows: Year 2002 �003 2004 2005 2006 14 15 16 17 18 19 20 21 Amount $1,660,000 1,655,000 1,715,000 1,775,000 ���,845,000 Year 2007 2008 2009 2010 2011 Amount $1,910,000 1,985,000 2,065,000 2,150,000 2,240,000 3. Purpose. Th" ; Bonds shall provide funds for the construction of the capital improvements in thc City's 2001 ca�al improvement budget (the "Improvements"), including payments on a lease relating to the City's centrai library. The proceeds of the Bonds shall be deposited and used as provided in paragYaph 17, for ti�e purpose described by Laws of Minnesota for 1971, Chapter 773, as amended, and alrfy excess moneys shall be devoted to any other purpose permitted by law. The total cost of�the Improvements, which shall include all costs enumerated in Minnesota Statutes, Section 4'7�5.65, is estimated to be at least equal to the amount 22 of the Bonds. Work on the Improvements shall proceed with due diligence to completion. 23 4. Interest. The Bonds shall bear interest payable semiannually on Mazch 1 24 and Sepiember 1 of each year (each, an "Interest P��ment Date"), commencing September 1, 25 2001, calculated on the basis of a 360}day year of t�lve 30-day months, at the respective rates 26 per annum set forth opposite the maturity years a� foll'Qws: Maturity Year 2002 2003 2004 2005 2006 27 1268773v2 Interest Rate M� urit ' \. o�u 2`0,07 20d�3 2009 2010 2011 3 Interest Rate % 01-3ir 9 10 11 12 13 14 IS 16 5. Description of the Global Certificates and Global Book-Entrv S sy tem. Upon their original issuance the Bonds will be issued in the form of a single Global Certificate for each maturity, deposited with the Depository by the Purchaser and immobilized as provided in par�graph 6. No beneficial owners of interests in the Bonds will receive certificates representing their respective interests in the Bonds except as provided in paragraph 6. Except as so provided, during the term of the Bonds, beneficial ownership (and subsequent transfers of beneficial ownership) of interests in the Global Certificates will be reflected by book entries made on the records of the Depository and its Participants and other banks, brokers, and dealers pariicipating in the National System. The Depository's book entries of beneficial ownership interests are authorized to be in increments of $5,000 of principal of the Bonds, but not smaller increments, despite the larger authorized denominations of the Global Certificates. Payment of principal of, premium, if any, and interest on the Global Certificates will be made to the Bond Regislrar as paying agent, and in turn by the Bond Registrar to the Depository or its nominee as registered owiier of the Global Certificates, and the Depository according to the laws and rules governing it will receive and forward payments on behalf of the beneficial owners of the Global Certificales. 17 Ptiymenl oPprincipal of, premium, if any, and interest on a Global Certificate may in the 18 City's discrefion be made by such other method of transferring funds as may be requested by the 19 Holder of a Global Certificate. 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 6. Immobilization of Global Certificates by the Depository; Successor Depositorv: Re�lacement Bonds. Pursuant to the request of the Purchaser to the Depository, which request is required by the Terms of Proposal, immediately upon the original delivery of tlie Bonds the Purchaser will deposit the Global Certificates representing all of the Bonds with the Depository or its agent. The Global Certificates shall be in typewritten form or otherwise as acceplable to the Depository, shall be registered in the name of the Depository ar its nominee and shall be held immobilized from circulation at the offices of the Depositary or its agent on behllf of the Purchaser and subsequent bondowners. The Depository or its nominee will be the sole holder oPrecord of the Global Certificates and no investor ar other party purchasing, selling or otherwise transfen•ing ownership of interests in any Bond is to receive, hold or deliver any bond certificates so long as the Depository holds the Global Certificates immobilized from circulation, except as provided below in this paragraph and in paragraph 12. Certificates evidencing the Bonds may not after their original delivery be transferred or exchanged except: (i) Upon registration of transfer of ownership of a Global Certificate, as provided in paragraph 12, (ii) To any successor of the Depository (or its nominee) or any substitute depository (a "substitute depository") designated pursuant to clause (iii) of this subparagraph, provided that any successor of the Depository or any substitute depository must be both a"clearing corporation" as defined in the Minnesota Uniform Commercial Code at MinnesoCa Statutes, Section 336.8-102, and a qualified and registered "clearing agency" as provided in Section 17A of the Securities Exchange Act of 1934, as amended, 12G8773v2 C! • i �' . �: . . . . � 1 5. Descrintion of the Global Certificates and Globai Book Entrv Svstem. Upon their original issuance the Bonds will be �ssued m the form of a single Global Certificate 3 for each maturity, deposited with the Depository by the Purchaser and immobilized as provided 4 paragraph 6. No beneficial owners oFinterests in the Bonds will receive certificates 5 re esenting their respective interests in the Bonds except as provided in paragraph 6. Except as 6 so p vided, during the term of the Bonds, beneficial ownership (and subsequent transfers of 7�� bene ial ownership) of interests in the Global Certificates will be reflected by book entries 8 made o the records of the Depository and its Participants and other banks, brokers, and dealers 9 participat�g in the National System. The Depository's book entries of beneficial ownership 10 interests arc� uthorized to be in increments af $5,000 of principal of the Bonds, but not smaller 11 increments, d��pite the larger authorized denominations of the Global Certificates. Payment of 12 principal of, pre: ium, if any, and interest on the Global Certificates will be made to the Bond 13 Registrar as pay�n , agent, and in turn by the Bond Registrar to the Depository o� its nominee as 14 registered owner of ih Global Certificates, and the Depository according to the laws and rules 15 governing it will recei�\nd forward payments on behalf of the beneficial owners of the Global 16 Certificates. 17 Payment ofprincipal �d�' prerriium, if any, and interest on a Global Certificate may in the 18 City's discretion be made by suC other method of transferring funds as may be requested by the 19 Holder of a Global Certificate. � 20 21 22 23 24 25 2G 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 6. Immobilizatio�of Global Certificates bv the Denositorv Successor Depositorv: Renlacement Bonds. Purs nt to the request of the Purchaser to the Depository, which request is required by the Terms o�•�roposal, immediately upon the original delivery of the Bonds the Purchaser will deposit the Glbbal Certificates representing atl of the Bonds with the Depository. Tha Global Certificates shal���e in typewritten form or otherwise as acceptable to the Depository, shall be registered in the narri of the Depository or its nominee and shall be held immobilized from circulation at the offices� {'ihe Depository on behalf of the Purchaser and subsequent bondowners. The Depository or its nom'nee will be the sole holder of record of the Global Certificates and no investor or other party pu��iasing, selling or otherwise transferring ownership of interests in any Bond is to receive; hold on,deliver any bond certificates so long as the Depository holds the Global Certificates immobilized��i�om circulation, except as provided below in this paragraph and in paragraph 12. `�,, . Certificates evidencing the Bonds may not after their exchanged except: (i) Upon registration of transfer of ownership of a provided in paragraph 12, delivery be transferred or Certificate, as (ii) To any successor of the Depository (or its nominee) or ai�,y, substitute depository (a "substitute depository") designated pursuant to clause (iii) 0�"4 �,�s subpazagraph, provided that any successor of the Depository or any substitutc deposi must be both a"clearing corporation" as defined in the Minnesota Uniform Co� Code at Minnesota Statutes, Section 336.8-102, and a qualified and registered "cl�"?�ri agency" as provided in Section 17A of the Securities Exchange Act of 1934, as ame� 1268771v2 0 0�-3�\ (iii) To a substitute depository designated by and acceptable to the City upon (a) the determination by the Depository that the Bonds shall no longer be eligible for its depository services or (b) a determination by the City that the Depository is no longer able to carry out its functions, provided that any substitute depository must be qualified to act as such, as provided in clause (ii) of this subparagraph, or (iv) To those persons to whom transfer is requested in written transfer instructions in the event that: 8 (a) the Depository shall resign or discontinue its services for the 9 Bonds and the City is unable to locate a substitute depository within two (2) 10 months following the resignation or determination of non-eligibility, or 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 �:3 29 30 31 32 33 34 35 36 37 38 39 40 (b) upon a determination by the City in its sole discretion that (1) the continuation of the book-entry systam described herein, which precludes the issuance of certificates (other than Global Certificates) to any Holder other than the Depository (or its nominee), might adversely affect the interest of the beneficial owners of the Bonds, ar(2) that it is in the best interest of the beneficial owners of the Bonds that they be able to obtain certificated bonds, in either of which events the City shall notify Holders of its determination and of the availability of certificates (the "Replacement Bonds") to Holders requesting the same and the registration, transfer and exchange of such Bonds will be conducted as provided in paragraphs 9B and 12 hereof. In the event of a succession of the Depository as may be authorized by this paragraph, the Bond Registrar upon presentation of G1oUa1 Certificates shall register their transfer to the substitute or successor depository, and the substitute or successor depository shall be treated as the Depository for all purposes and functions under this resolution. The Letter of Representations shall not apply to a substitute or successor depository unless the City and the substitute or successor depository so agree, and a similar agreement may be entered into. 7. Redem�tion. (a) Optional Redemption; Due Date. All Bonds maturing after March 1, 2009, shall be subject to redemption and prepayment at the option of the City on such date and on any day thereafter at a price of par plus accrued interest. Redemption may be in whole or in part of the Bonds subject to prepayment, If redemption is in part, those Bonds remaining unpaid may be prepaid in such order of maturity and in such amount per maturity as the City shall determine; and if only part of the Bonds having a common maturity date are called for prepayment, the Global Certificates may be prepaid in $5,000 increments of principal and, if applicable, the specific Replacement Bonds to be prepaid shall be chosen by lot by the Bond Registrar. Bonds or portions thereof called for redemption shall be due and payable on the redemption date, and interest thereon shall cease to accrue from and after the redemption date. (b) Notation on Global Certificate. Upon a reduction in the aggregate principal amount of a Global Certificate, the Holder may make a notation of such redemption on the panel 12G6773v2 5 o�-��� 1 provided on the Global Certificate stating the amount so redeemed, or may return the Global 2 Certificate to the Bond Registrar in exchange far a new Global Certificate authenticated by the 3 Bond Registrar, in proper principal amount. Such notation, if made by the Holder, shall be for 4 reference only, and may not be relied upon by any other person as being in any way 5 determinative of the principal amount of such Global Certificate outstanding, unless the Bond 6 Registrar has signed the appropriate column of the panel. 7 (c) Selection of Replacement Bonds. To effect a partial redemption of Replacement 8 Bonds having a common maturity date, the Bond Registrar prior to giving notice of redemption 9 shall assign to each Replacement Bond having a common maturity date a distinctive number for 10 each $5,000 of the principal amount of such Replacement Bond. The Bond Registrar shall then 11 select by lot, using such method of selection as it shall deem proper in its discretion, from the 12 numbers so assigned to such Replacement Bonds, as many numbers as, at $5,000 for each 13 number, shall equal the principal amount of such Replacement Bonds to be redeemed. The 14 Replacement Bonds to be redeemed shall be the Replacement Bonds to which were assigned 15 numbers so selected; provided, however, that only so much of the principal amount of each such 16 Replacement Bond of a denomination of more than $5,000 shall be redeemed as shall equal 17 $5,000 for each number assigned to it and so selected. 18 19 20 21 22 23 24 25 26 27 (d) Partial Redemntion of Replacement Bonds. If a Replacement Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the City or Bond Registrar so requires, a written instrument of transfer in form satisfactory to the City and Bond Registrar duly executed by the Holder thereof or his, her or its attorney duly authorized in writing) and the City shall execute (if necessary) and the Bond Registrar shall authenticate and deliver to the Holder of such Replacement Bond, without service charge, a new Replacement Bond or Bonds of the same series having the same stated maturity and interest rate and of any authorized denomination or denominations, as requested by such Holder, in aggegate principal amount equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered. 28 (e) Request for Redemntion. The Bond Registrar shall call Bonds for redemption and 29 payment as herein provided upon receipt by the Bond Registrar at least forty-five (45) days prior 30 to the redemption date of a request of the City, in written form if the Bond Registraz is other than 31 a City officer. Such request shall specify the principal amount of Bonds to be called for 32 redemption and the redemption date. 33 34 35 36 37 38 39 ,� (� Notice. Mailed notice of redemption shall be given to the paying agent (if other than a City officer) and to each affected Holder. If and when the City shall call any of the Bonds for redemption and payment prior to the stated maturity thereof, the Bond Registrar shall give written notice in the name of the City of its intention to redeem and pay such Bonds at the office of the Bond Registrar. Notice of redemption shall be given by first class mail, postage prepaid, mailed not less than thirty (30) days prior to the redemption date, to each Holder of Bonds to be redeemed, at the address appearing in the Bond Register. All notices of redemption shall state: (i) The redemption date; 41 (ii) The redemption price; 1268773v2 p�-�\\ 1 (iii) If ]ess than all outstanding Bonds are to be redeemed, the identification 2 (and, in the case of partial redemption, the respective principal amounts) of the Bonds to 3 be redeemed; 4 (iv) That on the redemption date, the redemption price will become due and 5 payable upon each such Bond, and that interest thereon shall cease to accrue from and 6 after said date; and (v) The place where such Bonds are to be surrendered for payment of the redemption price (which shall be the office of the Bond Registrar). 9 (g) Notice to Depositorv. Notices to The Depository Trust Company or its nominee 10 shall contain the CUSIP numbers of the Bonds. If there are any Holders of the Bonds other than 11 the Depository or its nominee, the Bond Registrar shall use its best efforts to deliver any such 12 notice to the Depository on the business day next preceding the date of mailing of such notice to 13 all other Holders. 14 8. Bond Re is� trar. U. S. Bank Trust National Association, in Saint Paul, 15 Minnesota, is appointed to act as bond registrar and transfer agent with respect to the Bonds (the 16 "Bond Registrar"), and shall do so unless and until a successor Bond Registrar is duly appointed, 17 all pursuant to any contract the City and Bond Registrar shall execute which is consistent 18 herewith. A successor Bond Registrar shall be an officer of the City or a bank or trust company 19 eligible for designation as bond registrar pursuant to Minnesota Statutes, Chapter 475, and may 20 be appointed pursuant to any contract the City and such successor Bond Registrar shall execute 21 which is consistent herewith. The Bond Registrar shall also serve as paying agent unless and 22 until a successor paying agent is duly appointed. Principal and interest on the Bonds shall be 23 paid to the Holders (or record holders) of the Bonds in the manner set forth in the forms of Bond 24 and paragraph 14 of this resolution. 25 9. Forms of Bond The Bonds shall be in the form of Global Certificates 26 unless and until Replacement Bonds are made available as provided in paragraph 6. Each form 27 of bond may contain such additional or different terms and provisions as to the form of payment, 28 record date, notices and other matters as are consistent with the Letter of Representations and 29 approved by the City Attorney. 30 A. Global Certificates. The Global Certificates, together with the Certificate of 31 Registration, the Register of Partial Payments, the form of Assignment and the registration 32 information thereon, shall be in substantially the following form and may be typewritten rather 33 than printed: 12G8773v2 O�-'a�♦ � $ GENERAL OBLIGATION CAPITAL IMPROVEMENT BOND, SERIES 2001A INTEREST RATE REGISTERED OWNER: UNITED STATES OF AMERICA STATE OF MINNESOTA RAMSEY COUNTY CITY OF SAINT PAUL MATURITY DATE DATE OF ORIGINAL ISSL7E CUSIP March 1, _ 10 PRINCIPAL AMOLJNT: 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 DOLLARS KNOW ALL PERSONS BY THESE PRESENTS that the City of Saint Paul, Ramsey County, Minnesota (the "Issuer" or "City"), certifies that it is indebted and for value received promises to pay to the registered owner specified above ar on the certificate of registration below, or registered assigns, in the manner hereinafter set forth, the principal amount specified above, on the maturity date specified above, unless called for earlier redemption, and to pay interest thereon semiannually on March 1 and September 1 of each year (each, an "Interest Payment Date"), commencing September 1, 2001, at the rate per annum specified above (calculated on the basis of a 360-day year of twelve 30-day months) until the principal sum is paid or has been provided for. This Bond will bear interest from the most recent Interest Payment Date to which interest has been paid or, if no interest has been paid, from the date of original issue hereof. The principal of and premiwn, if any, on this Bond are payable in same- day funds by 2:30 p.m., Eastern time, upon presentation and surrender hereof at the principal office of in , Minnesota (the "Bond Registrar"), acting as paying agent, or any successor paying agent duly appointed by the Issuer; provided, however, that upon a partial redemption of this Bond which results in the stated amount hereof being reduced, the Holder may in its discretion be paid without presentation of this Bond, which payment shall be received no later than 2:30 p.m., Eastern time, and may make a notation on the panel provided herein of such redemption, stating the amount so redeemed, ar may return the Bond to the Bond Registrar in exchange for a new Bond in the proper principal amount. Such notation, if made by the Holder, shall be for reference only, and may not be relied upon by any other person as being in any way determinative of the principal amount of this Bond outstanding, unless the Bond Registrar has signed the appropriate column of the panel. Interest on this Bond will be paid on each Interest Payment Date in same-day funds by 230 p.m., Eastern time, to the person in whose name this Bond is registered (the "Holder" or "Bondholder") on the registration books of the Issuer maintained by the Bond Registrar and at the address appearing thereon at the close of business on the fifteenth day of the calendar month preceding such Interest Payment April 1, 2001 1268773v2 0�-7�e 1 Date (the "Regular Record Date"). Interest payments shall be received by the Holder no later 2 than 2:30 p.m., Eastern time; and principal and premium payments shall be received by the 3 Holder no later than 2:30 p.m., Eastern time, if the Bond is surrendered for payrnent enough in 4 advance to permit payment to be made by such time. Any interest not so timely paid shall cease 5 to be payable to the person who is the Holder hereof as of the Regular Record Date, and shall be 6 payable to the person who is the Holder hereof at the close of business on a date (the "Special 7 Record Date") fixed by the Bond Registrar whenever money becomes available for payment of 8 the defaulted interest. Notice of the Special Record Date shall be given to Bondholders not less 9 than ten days prior to the Special Record Date. The principal of and premium, if any, and 10 interest on this Bond are payable in lawful money of the United States of America. 11 Date of Pavment Not Business Dav. If the date for payment of the principal of, 12 premium, if any, or interest on this Bond shall be a Saturday, Sunday, legal holiday or a day on 13 which banking institutions in the City of New York, New York, or the city where the principal 14 office of the Bond Registrar is located are authorized by law or executive order to close, then the 15 date for such payment shall be the next succeeding day which is not a Saturday, Sunday, legal 16 holiday or a day on which such banking institutions are authorized to close, and payment on such 17 date shall have the same force and effect as if made on the nominal date of payment. 18 Redemption. All Bonds ofthis issue (the "Bonds") maturing after March 1, 2009, 19 are subject to redemption and prepayment at the option of the Issuer on such date and on any day 20 thereafter at a price of par plus accrued interest. Redemption may be in whole or in part of the 21 Bonds subj ect to prepayment. If redemption is in part, those Bonds remaining unpaid may be 22 prepaid in such order of maturity and in such amount per maturity as the City shall determine; 23 and if only part of the Bonds having a common maturity date are called for prepayment, this 24 Bond may be prepaid in $5,000 increments of principal. Bonds or portions thereof called for 25 redemption shall be due and payable on the redemption date, and interest thereon shall cease to 26 accrue from and after the redemption date. 27 Notice of Redemption. Mailed notice of redemption shall be given to the paying 28 agent (if other than a City officer) and to each affected Holder of the Bonds. In the event any of 29 the Bonds are called for redemption, written notice thereof will be given by first class mail 30 mailed not less than thirty (30) days prior to the redemption date to each Holder of Bonds to be 31 redeemed. In connection with any such notice, the "CUSII"' numbers assigned to the Bonds 32 shall be used. 33 Renlacement or Notation of Bonds after Partiai Redemption. Upon a partial 34 redemption of this Bond which results in the stated amount hereof being reduced, the Holder 35 may in its discretion make a notation on the panel provided herein of such redemption, stating 36 the amount so redeemed. Such notation, if made by the Holder, shall be for reference only, and 37 may not be relied upon by any other person as being in any way determinative of the principal 38 amount of the Bond outstanding, unless the Bond Registrar has signed the appropriate column of 39 the panel. Otherwise, the Holder may surrender this Bond to the Bond Registrar (with, if the 40 Issuer or Bond Registrar so requires, a written instrument of transfer in form satisfactory to the 41 Issuer and Bond Registrar duly executed by the Holder thereof or his, her or its attorney duly 42 authorized in writing) and the Issuer shall execute (if necessary) and the Bond Registrar shall 43 authenticate and deliver to the Holder of such Bond, without service charge, a new Bond of the 9 1268773v2 o►-��� 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 same series having the same stated maturity and interest rate and of the authorized denomination in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered. Issuance; Purpose; General Obligation. This Bond is one of an issue in the total principal amount of $19,000,000, all of like date of original issue and tenor, except as to number, maturity, interest rate, denomination, and redemption privilege, which Bond has been issued pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including particularly Laws of Minnesota for 1971, Chapter 773, as amended, and the Charter of the Issuer, and pursuant to a resolution adopted by the City Council of the Issuer on March 28, 2001 (the "Resolution"), for the purpose of providing money to finance the acquisition, construction and repair of various capital improvements in the City. This Bond is payable out of the General Debt Service Fund of the Issuer. This Bond constitutes a general obligation of the Issuer, and to provide moneys for the prompt and full payment of its principal, premium, if any, and interest when the same become due, the fuli faith and credit and taxing powers of the Issuer have been and are hereby irrevocably pledged. Denominations; Exchange; Resolution. The Bonds are issuable originally only as Global Certificates in the denomination of the entire principal amount of the issue maturing on a single date, or, if a portion of said principal is prepaid, said principal amount less the prepayment. Global Certificates are not exchangeable for fully registered bonds of smaller denominations except to evidence a partial prepayment or in exchange for Replacement Bonds if then available. Replacement Bonds, if made available as provided below, are issuabie solely as fully registered bonds in the denominations of $5,000 and integral multiples thereof of a single maturity and are exchangeable for fully registered Bonds of other authorized denominations in equal aggregate principal amounts at the principal office of the Bond Registrar, but only in the manner and subject to the limitations provided in the Resolution. Reference is hereby made to the Resolution for a description of the rights and duties of the Bond Registrar. Copies of the Resolution are on file in the principal office of the Bond Registrar. that: Reolacement Bonds. Replacement Bonds may be issued by the Issuer in the event 30 (a) the Depository shall resign or discontinue its services for the Bonds, and only 31 if the Issuer is unable to locate a substitute depository within two (2) months following 32 the resignation or determination of non-eligibility, ar 33 (b) upon a determination by the Issuer in its sole discretion that (1) the 34 continuation of the book-entry system described in the Resolution, which precludes the 35 issuance of certificates (other than Global Certificates) to any Holder other than the 36 Depository (or its nominee), might adversely affect the interest of the beneficial owners 37 of the Bonds, or (2) that it is in the best interest of the beneficial owners of the Bonds that 38 they be able to obtain certificated bonds. 39 Transfer. This Bond shall be registered in the name of the payee on the books of 40 the Issuer by presenting this Bond for registration to the Bond Registrar, who will endorse his, 41 her or its name and note the date of registration opposite the name of the payee in the certificate 10 12G8773v2 o� _� �� 1 of registration attached hereto. Thereafter this Bond may be transferred by delivery with an 2 assignment duly executed by the Holder or his, her or its legal representatives, and the Issuer and 3 Bond Registrar may treat the Holder as the person exclusively entitled to exercise all the rights 4 and powers of an owner until this Bond is presented with such assignment for registration of 5 transfer, accompanied by assurance of the nature provided by law that the assignment is genuine 6 and effective, and until such transfer is registered on said books and noted hereon by the Bond 7 Registrar, all subject to the terms and conditions provided in the Resolution and to reasonable 8 regulations of the Issuer contained in any agreement with, or notice to, the Bond Registrar. 9 Transfer of this Bond may, at the direction and expense of the Issuer, be subject to certain other 10 restrictions if required to qualify this Bond as being "in registered form" within the meaning of 11 Section 149(a) of the federal Internal Revenue Code of 1986, as amended. 12 Fees upon Transfer or Loss. The Bond Registrar may require payment of a sum 13 sufficient to cover any tax or other governmental charge payable in connection with the transfer 14 or exchange of this Bond and any legal or unusual costs regarding transfers and lost Bonds. 15 Treatment of ReQistered Owner. The Issuer and Bond Registrar may treat the 16 person in whose name this Bond is registered as the owner hereof for the purpose of receiving 17 payment as herein provided (except as otherwise provided with respect to the Record Date) and 18 for all other purposes, whether or not this Bond shall be overdue, and neither the Issuer nor the 19 Bond Registrar shall be affected by notice to the contrary. 20 Authentication. This Bond shall not be valid or become obligatory for any 21 purpose or be entitled to any security unless the Certificate of Authentication hereon shall have 22 been executed by the Bond Registrar. 23 Not Qualified Tax-Exem�t Obli atg ions. The Bonds haue not been designated by 24 the Issuer as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the federal 25 Internal Revenue Code of 1986, as amended. The Bonds do not qualify for such designation. 26 IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things 27 required by the Constitution and laws of the State of Minnesota and the Charter of the Issuer to 28 be done, to happen and to be performed, precedent to and in the issuance of this Bond, have been 29 done, have happened and have been performed, in regular and due form, time and manner as 30 required by law, and that this Bond, together with all other debts of the Issuer outstanding on the 31 date of original issue hereof and on the date of its issuance and delivery to the original purchaser, 32 does not exceed any constitutional or statutory or Charter limitation of indebtedness. 33 IN WITNESS WHEREOF, the City of Saint Paul, Ramsey County, Minnesota, by 34 its City Council has caused this Bond to be executed on its behalf by the photocopied facsimile 35 signature of its Mayor, attested by the photocopied facsimile signature of its Clerk, and 36 countersigned by the photocopied facsimile signature of its Director, Office of Financial 37 Services, the official seal having been omitted as permitted by law. 11 12G8773v2 ��-a�� 1 Date of Registration: 2 3 4 5 BOND REGISTRAR'S 6 CERTIFICATE OF 7 AUTHENTICATION 8 This Bond is one of the 9 Bonds described in the 10 Resolution mentioned 11 within. 12 13 14 15 16 Bond Registrar 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 By Authorized Signature Registrable by: Payable at: CITY OF SAINT PAUL, RAMSEY COUNTY, MINNESOTA Mayor Attest: City Clerk Countersigned: Director, Office of Financial Services General Obligation Capital Improvement Bond, Series 2001A, No. R- 12G8773v2 12 O � -'3 �� CERTIFICATB OF REGISTRATION The transfer of ownership of the principal amount of the attached Bond may be made only by the registered owner or his, her or its ]egal representative last noted below. DATE OF REGISTRATTON SIGNATiJRE OF BOND REGISTRAR 13 12G8773v2 o� -��� REGISTER OF PARTIAL PAYMENTS 3 The principal amount of the attached Bond has been prepaid on the dates and in the amounts 4 noted below: Date Amount Bondholder Bond Re ig strar If a notation is made on this register, such notation has the effect stated in the attached Bond. Partial payments do not require the presentation of the attached Bond to the Bond Registrar, and a Holder could fail to note the partial payment here. 14 1268773v2 o�-��� 1 2 3 4 5 6 7 8 9 10 11 12 13 ABBREVIATIONS The following abbreviations, when used in the inscription on the face of this Bond, shall be construed as though they were written out in full according to applicable laws or regulations: TEN COM - as tenants in common TEN ENT - as tenants by the entireties JT TEN - as joint tenants with right of survivorship and not as tenants in common UTMA - as custodian for (Cust) underthe (Minor) Uniform Transfers to Minors Act (State) Additional abbreviaYions may also be used though not in the above list. 15 12G8773v2 ol-��� ASSIGNMENT 2 For value received, the undersigned hereby sells, assigns and transfers unto 3 the attached 4 Bond and does hereby irrevocably constitute and appoint 5 attorney to transfer the Bond on the books kept for the 6 regislration thereof, with full power of substitution in the premises. 7 8 Notice: The assignor's signature to this assignment must 9 correspond with the name as it appears upon the face of 10 the attached Bond in every particular, without alteration 11 or any change whatever. 12 Signature Guaranteed: 13 14 Signatttre(s) musl be guaranteed by a national bank or trust company or by a brokerage firm 15 having � membership in oiie of the major stock exchanges or any other "Eligible Guarantor 16 InsCit�ition" as defined iii 17 CFR 240.17Ad-15(a)(2). 17 The Bond Registrar will not effect transfer of this Bond unless the information 18 coneeruing the Yransferee requested below is provided. 19 Name 1nd Address: � 21 22 23 (Include information for all joint owners ifthe Bond is held by j oint account.) 16 12G8773v2 .. � o l-'��� ASSIGNMENT 2 3 4 5 6 21 22 23 For value received, the undersigned hereby sells, assigns and transfers unto the attached Bond a d does hereby irrevocably constitute and appoint attorney to transfer the Bond on the books kept for the registratio thereof, with full power of substitution in the premises. 7 8 9 10 il 12 Signature Guaranteed: 13 Notice: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the attached Bond in every particular, without alteration , or any change whatever. 14 Signature(s) must be guaranteed by" , national bank or trust company or by a brokerage firm 15 having a membership in one of the m�`a}pr stock exchanges or any other "Eligible Guarantor 16 Institution" as defined in 17 CFR 240.1�' d-15(a)(2). l 7 The Bond Registrar will not �£€ect transfer of this Bond unless ihe information I8 concerning the transferee requested below is pYy�vided. 19 Name and Address: 20 (Include information for all by joint account.) 1268773v2 E� owners if the Bond is held o� -3�� 1 B. Replacement Bonds. If the City has notified Holders that Replacement Bonds 2 have been made available as provided in paragraph 6, then for every Bond thereafter transferred 3 or exchanged (including an exchange to reflect the partial prepayment of a Global Certificate not 4 previously exchanged for Replacement Bonds) the Bond Registrar shall deliver a certificate in 5 the form of the Replacement Bond rather than the Global Certificate, but the Holder of a Global 6 Certificate shall not otherwise be required to exchange the Global Certificate far one or more 7 Replacement Bonds since the City recognizes that some beneficial owners may prefer the 8 convenience of the Depository's registered ownership of the Bonds even though the entire issue 9 is no longer required to be in global book-entry form. The Replacement Bonds, together with the 10 Bond Registrar's Certificate of Authentication, the form of Assignment and the registration 11 information thereon, shall be in substantially the foliowing form: 17 1268773v2 o� .3�� LTNITED STATES OF AMERICA 2 STATE OF MINNESOTA 3 RAMSEY COUNTY 4 CITY OF SAINT PAUL � 6 7 C] GENERAL OBLIGATION CAPITAL IMPROVEMENT BOND, SERIES 2001A INTEREST MATURITY RATE DATE REGISTERED OWNER: 10 PRINCIPAL AMOUNT: 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 DOLLARS $ CUSIP KNOW ALL PERSONS BY THESE PRESENTS that the City of Saint Paul, Ramsey County, Minnesota (the "Issuer" or "City"), certifies that it is indebted and for value received promises to pay to the registered owner specified above, or registered assigns, in the manner hereinafter set forth, the principal amount specified above, on the maturity date specified above, unless called for earlier redemption, and to pay interest thereon semiannually on March 1 and September 1 of each year (each, an "Interest Payment Date"), commencing September 1, 2001, at the rate per annum specified above (calculated on the basis of a 360-day year of twelve 30-day months) until the principal sum is paid or has been provided for. This Bond will bear interest from the most recent Interest Payment Date to which interest has been paid or, if no interest has been paid, from the date of original issue hereo£ The principal of and premium, if any, on this Bond are payable upon presentation and surrender hereof at the principal office of ,in , (the "Bond Registrar"), acting as paying agent, or any successar paying agent duly appointed by the Issuer. Interest on this Bond will be paid on each Interest Payment Date by check or draft mailed to the person in whose name this Bond is registered (the "Holder" or "Bondholder") on the registration books of the Issuer maintained by the Bond Registrar and at the address appearing thereon at the close of business on the fifteenth day of the calendar month preceding such Interest Payment Date (the "Regular Recard Date"). Any inYerest not so timely paid shall cease to be payable to the person who is the Holder hereof as of the Regular Record Date, and shall be payable to the person who is the Holder hereof at the close ofbusiness on a date (the "Special Record Date") fixed by the Bond Registrar whenever money becomes available for payment of the defaulted interest. Notice of the Special Record Date shall be given to Bondholders not less than ten days prior to the Special Record Date. The principal of and premium, if any, and interest on this Bond are payable in lawful money of the United States of America. 12G8773v2 DATE OF ORIGINAL ISSUE April 1, 2001 IE:� o� �� �� 1 REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF 2 THIS BOND SET FOKTH ON THE REVERSE HEREOF, WHICH PROVISIONS SHALL 3 FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH HERE. 4 IT IS HEREBY CERTIFIED AND I2ECITED that all acts, conditions and things 5 required by the Constitution and laws of the State of Minnesota and the Charter of the Issuer to 6 be done, to happen and to be performed, precedent to and in the issuance of this Bond, ha�e been 7 done, have happened and have been performed, in regular and due form, time and manner as 8 required by law, and that this Bond, together with all other debts of the Issuer outstanding on the 9 date of original issue hereof and on the date of its issuance and delivery to the original purchaser, 10 does not exceed any constitutional or statutory or Charter limitation of indebtedness. 11 IN WITNESS WHEREOF, the City of Saint Paul, Ramsey County, Minnesota, by 12 its City Council has caused this Bond to be executed on its behalf by the original or facsimile 13 signature of its Mayor, attested by the original or facsimile signature of its Clerk, and 14 countersigned by the original or facsimile signature of its Director, Office of Financial Services, 15 the official seal having been omitted as permitted by law. 19 12G8773v2 t�\-'J �\ 1 Date of Registration: 2 � 5 BOND REGISTRAR'S 6 CERTIFICATE OF 7 AUTHENTICATION 8 This Bond is one of the 9 Bonds described in the 10 Resolution rnentioned 11 within. 12 13 14 15 16 Bond Registrar 17 18 19 20 21 22 23 Authorized Signature 12G8773v2 Registrable by: Payable at: CITY OF SAINT PAUL, RAMSEY COUNTY, MINNESOTA Mayor Attest: City Clerk Countersigned: Director, Office of Financial Services 20 O1-'J �\ ON REVERSE OF BOND Date of Payment Not Business Day. If the date for payment of the principal of, premium, if any, or interest on this Bond shall be a Saturday, Sunday, legal holiday or a day on which banking institutions in the City of New Yark, New York, or the city where the principal office of the Bond Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not a Saturday, Sunday, legal holiday or a day on which such banking institutions are authorized to close, and payment on such date shall have the same force and effect as ifmade on the nominal date ofpayment. 9 Redemption. All Bonds ofthis issue (the "Bonds") maturing after March 1, 2009, 10 are subject to redemption and prepayment at the option of the Issuer on such date and on any day 11 thereafter at a price of par plus accrued interest. Redemption may be in whole or in part of the 12 Bonds subject to prepayment. If redemption is in part, those Bonds remaining unpaid may be 13 prepaid in such order of maturity and in such amount per maturity as the City shall determine; 14 and if only part of the Bonds having a common maturity date are called for prepayment, the 15 specifac Bonds to be prepaid shall be chosen by lot by the Bond Registrar. Bonds or portions 16 thereof called for redemption shall be due and payable on the redemption date, and interest 17 thereon shall cease to accrue from and after the redemption date. 18 Notice of Redemption. Mailed notice of redemption shall be given to the paying 19 agent (if other than a City officer) and to each affected Holder of the Bonds. In the event any of 20 the Bonds are called for redemption, written notice thereof will be given by first class mail 21 mailed not less than thiriy (30) days prior to the redemption date to each Holder of Bonds to be 22 redeemed. In connection with any such notice, the "CU5Il"' numbers assigned to the Bonds 23 shall be used. 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 Selection o£ Bonds for Redem�tion. To effect a partial redemption of Bonds having a common maturity date, the Bond Registrar shall assign to each Bond having a common maturity date a distinctive number for each $5,000 of the principal amount of such Bond. The Bond Registrar shall then select by lot, using such method of selection as it shall deem proper in its discretion, from the numbers assigned to the Bonds, as many numbers as, at $5,000 for each mimber, shall equal the principa] amount of such Bonds to be redeemed. The Bonds to be redeemed shall be the Bonds to which were assigned numbers so selected; provided, however, that only so much of the principal amount of such Bond of a denomination of more than $5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. If a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the Issuer or Bond Registrar so requires, a written instrument of transfer in form satisfactory to the Issuer and Bond Registrar duly executed by the Holder thereof or his, her or its attorney duly authorized in writing) and the Issuer shall execute (if necessary) and the Bond Registrar shall authenticate and deliver to the Holder of such Bond, without service charge, a new Bond or Bonds of the same series having the same stated maturity and interest rate and of any authorized denomination or denominations, as requested by such Holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered. 12G8773v2 21 o�-��� 1 Issuance; Purpose; General Obli ag tion. This Bond is one of an issue in the total 2 principal amount of $19,000,000, all of like date of original issue and tenor, except as to number, 3 maturity, interest rate, denomination, and redemption privilege, which Bond has been issued 4 pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, 5 including particularly Laws of Minnesota for 1971, Chapter 773, as amended, and the Charter of 6 the Issuer, and pursuant to a resolution adopted by the City Council of the Issuer on March 28, 7 2001 (the "Resolution"), for the purpose of providing money to finance the acquisition, 8 construction and repair of various capital improvements in the City. This Bond is payable out of 9 the General Debt Service Fund of the Issuer. This Bond constitutes a general obligation of the 10 Issuer, and to provide moneys for the prompt and full payment of its principal, premium, if any, 11 and interest when the same become due, the full faith and credit and taacing powers of the Issuer 12 have been and are hereby irrevocably pledged. 13 Denominations; Exchan�e; Resolution. The Bonds are issuable solely as fully 14 registered bonds in the denominations of $5,000 and integral multiples thereof of a single 15 maturity and are exchangeable far fully registered Bonds of other authorized denominations in 16 equal aggregate principal amounts at the principal office of the Bond Registrar, but only in the 17 manner and subject to the limitations provided in the Resolution. Reference is hereby made to 18 the Resolution for a description of the rights and duties of the Bond Registrar. Copies of the 19 Resolution are on file in the principal office of the Bond Registrar. 20 Transfer. This Bond is transferable by the Holder in person or by his, her or its 21 attorney duly authorized in writing at the principal office of the Bond Registrar upon 22 presentation and surrender hereof to the Bond Registrar, all subject to the terms and conditions 23 provided in the Resolution and to reasonable regulations of the Issuer contained in any 24 agreement with, or notice to, the Bond Registrar. Thereupon the Issuer shall execute and the 25 Bond Registrar shall authenticate and deliver, in exchange for this Bond, one or more new fully 26 registered Bonds in the name of the transferee (but not registered in blank or to "bearer" or 27 similar designation), of an authorized denomination or denominations, in aggregate principal 28 amount equal to the principal amount of this Bond, of the same maturity and bearing interest at 29 the same rate. 30 Fees unon Transfer or Loss. The Bond Registrar may require payment of a sum 31 sufficienY to cover any tax or other governmental charge payable in connection with the transfer 32 or exchange of this Bond and any legal or unusual costs regarding transfers and lost Bonds. 33 Treatment of ReQistered Owner. The Issuer and Bond Registrar may treat the 34 person in whose name this Bond is registered as the owner hereof for the purpose of receiving 35 payment as herein provided (except as otherwise provided on the reverse side hereof with respect 36 to the Record Date) and for all other purposes, whether or not this Bond shall be overdue, and 37 neither the Issuer nor the Bond Registrar shall be affected by notice to the contrary. 38 Authentication. This Bond shall not be valid or become obligatory for any 39 purpose or be entitled to any security unless the Certificate of Authentication hereon shall have 40 been executed by the Bond Registrar. 22 1268773v2 D\-7\\ 1 Not Oualified Tax-Exempt Obli atg ions. The Bonds have not been designated by 2 the Issuer 1s "qualified tax-exempt obligations" far purposes of Section 265(b)(3) of the federal 3 Internal Revenue Code of 1986, as amended. The Bonds do not qualify for such designation. 23 12G8773v2 O\ -��� 1 ABBREVIATIONS 2 The following abbreviations, when used in the inscription on the face of this 3 Bond, shall be construed as though they were written out in full according to applicable laws or 4 regulations: 5 6 7 8 9 10 11 12 13 14 15 TEN COM - as tenants in common TEN ENT - as tenants by the entireties JT TEN - as joint tenants with right of survivorship and not as tenants in common UTMA - as custodian for (Cust) miderthe 12G8773v2 (Minor) Uniform Transfers to Minors Act (State) Additionai abbreviations may also be used though not in the above list. 24 D\ �� ASSIGNMENT 2 For value received, the undersigned hereby sells, assigns and transfers unto 3 the within 4 Bond 1nd does hereby irrevocably constitute and appoint 5 attomey to transfer the Bond on the books kept for the 6 regislraYion thereo£, with full power of substitution in the premises. 7 Dated: 8 Notice: The assignor's signature to this assignment must 9 correspond with the name as it appears upon the face of 10 the within Bond in every particular, without alteration or I 1 any change whatever. 12 SignaYUre Guarat�teed; iic3 14 Signalure(s) musl be guaranteed by a national bank ar trust company or by a brokerage firm 15 having a membership in one of the major stock exchanges ar any other "Eligible Guarantor 16 Institution" as defined in 17 CFR 240.17Ad-15(a)(2). 17 The Bond Registrar wi11 not effect transfer of this Bond unless the information 18 concerning the transferee requested below is provided. 19 Name and Address: 20 21 22 23 24 (Include informaYion for all joint owners if the Bond is held byjoint account.) 25 12G877Jv2 o�-��� 1 2 4 5 6 7 8 9 10 11 12 13 ASSIGNMENT � For value received, the undersigned hereby sells, assigns and transfers unto the attached Boi1d and does hereby irrevocably constitute and appoint attomey to transfer the Bond on the books kept for the registration thereof, with full power of substitution in the premises. Notice: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the attached Bond in every particular, without alteration or any change whatever. Signature Guaranteedi, 14 Signature(s) must be guaranteed by a national banlc or trust company or by a brokerage firm 15 having a membership in one of the major stock exchanges or any other "Eligible Guarantor 16 Institution" as defined in 17 CFR 240.17Ad-15(a)(2). 17 18 19 20 21 22 23 24 The Bond Registrar will not effect transfer of this Bond unless the information concerning the transferee requested befow is provided. Name and Address: (Include information for all joint owners if the Bond is held by joint account.) 12G6773v2 25 C� \ —�\� L� 10 11 12 13 14 15 16 17 18 19 20 21 22 23 10. Execution. The Bonds shall be executed on behalf of the City by the signatures of its Mayor, Clerk and Director, Office of Financia] Services, each with the effect noted on the forms of the Bonds, and be sealed with the seal of the City; provided, however, that the seal of the City may be a printed or photocopied facsimile; and provided further that any of such signatures may be printed or photocopied facsimiles and the corporate seal may be omitted on the Bonds as permitted by law. In the event of disability or resignation or other absence of any such officer, the Bonds may be signed by the manual or facsimile signature of that officer who may act on bel�alf of such absent or disabled officer. In case any such officer whose signature or facsimile of whose signature shall appear on the Bonds shall cease to be such officer before the delivery of the Bonds, such signature ar facsimile shall nevertheless be valid and sufficient for all purposes, the same as if he or she had remained in office until delivery. 11. Authentication; Date of Registration. No Bond shall be valid or obligatory for any purpose or be entitled to any security or benefit under this resolution unless a Certificate of Authentication on such Bond, substantially in the form hereinabove set forth, shall have been duly executed by an authorized representative of the Bond Registrar. Certificates of Authentication on different Bonds need not be signed by the same person. The Bond Registrar sh111 authenticate the signatures of officers of the City on each Bond by execution of the Certificate of Authentication on the Bond and by inserting as the date of registration in the space provided the date on which the Bond is authenticated. For purposes of delivering the original Global Certificates to the Purchaser, the Bond Registrar shall insert as the date of registration the date of original issue, which date is April 1, 2001. The Certificate of Authentication so executed on each Bond shall be conclusive evidence that it has been authenticated and delivered under this resolution. 24 12. Reeistration; Transfer; ExchanQe. The City will cause to be kept at the 25 principal office of the Bond Registrar a bond register in which, subject to such reasonable 26 regulations as the Bond Registrar may prescribe, the Bond Registrar shall provide for the 27 registration of Bonds and the registration of transfers of Bonds entitled to be registered or 28 transferred as herein provided. 29 30 31 32 33 34 35 36 37 38 39 40 41 42 A Global Certificate shall be registered in the name of the payee on the books of the Bond Registrar by presenting the Global Certificate for registration to the Bond Registrar, who will endorse his or her name and note the date of registration opposite the name of the payee in the certificate of registration on the Global Certificate. Thereafter a Global Certi£cate may be transferred by delivery with an assignment duly executed by the Holder or his, her or its legal representative, and the City and Bond Registrar may treat the Holder as the person exclusively entitied to exercise all the rights and powers of an owner until a Global Certificate is presented with such assignment for registration of transfer, accompanied by assurance of the nature provided by law that the assignment is genuine and effective, and until such transfer is registered on said books and noted thereon by the Bond Registrar, all subject to the terms and conditions provided in tl�is resolution and to reasonable regulations of the City contained in any agreement with, or notice to, the Bond Registrar. Transfer of a Global Certificate may, at the direction and expense of the City, be subject to other restrictions if required to qualify the Global Certificates as being "in registered 12G8773v2 26 o�-a�� 1 form" within the meaning of Section 149(a) of the federal Internal Revenue Code of 1986, as 2 amended. 3 If a Global Certificate is to be exchanged for one ar more Replacement Bonds, all 4 of the principal amount of the Global Certificate shall be so exchanged. 5 Upon surrender for transfer of any Replacement Bond at the principal office of 6 the Bond Registrar, the City shall execute (if necessary), and the Bond Registrar shall 7 authenticate, insert the date of registration (as provided in paragraph 11) of, and deliver, in the 8 name of the designated transferee or transferees, one or more new Replacement Bonds of any 9 authorized denomination or denominations of a like aggregate principal amount, having the same 10 stated maturity and interest rate, as requested by the transferor; provided, however, that no bond 11 may be registered in blank or in the name of "bearer" ar similar designation. 12 At the option of the Holder of a Replacement Bond, Replacement Bonds may be 13 exchanged far Replacement Bonds of any authorized denomination or denominations of a like 14 aggregate principal amount and stated maturity, upon surrender of the Replacement Bonds to be 15 exchanged at the principal office of the Bond Registrar. Whenever any Replacement Bonds are 16 so surrendered for exchange, the City shall execute (if necessary), and the Bond Registrar shall 17 authenticate, insert the date of registration of, and deliver the Replacement Bonds which the 18 Holder making the exchange is entitled to receive. Global Certificates may not be exchanged for 19 Global Certificates of smaller denominations. 20 All Bonds surrendered upon any exchange or transfer provided for in this 21 resolution shall be promptly cancelled by the Bond Registrar and thereafter disposed of as 22 directed by the City. 23 All Bonds delivered in exchange for or upon transfer of Bonds shall be valid 24 general obligations of the City evidencing the same debt, and entitled to the same benefits under 25 this resolution, as the Bonds surrendered for such exchange or transfer. 26 Every Bond presented or surrendered for transfer or exchange shall be duly 27 endorsed or be accompanied by a written instrument of transfer, in form satisfactory to the Bond 28 Registrar, duly executed by the Holder thereof or his, her or its attorney duly authorized in 29 writing. 30 The Bond Registrar may require payment of a sum sufficient to cover any ta�c or 31 other governmental charge payable in connection with the transfer or exchange of any Bond and 32 any legal or unusual costs regarding transfers and lost Bonds. 33 Transfers shall also be subject to reasonable regulations of the City contained in 34 any agreement with, or notice to, the Bond Registrar, including regulations which permit the 35 Bond Registrar to close its transfer books between record dates and payment dates. 36 13. Ri¢hts Upon Transfer or Exchange. Each Bond delivered upon transfer of 37 or in exchange for or in lieu of any other Bond shall carry all the rights to interest accrued and 38 unpaid, and to accrue, which were carried by such other Bond. 27 12G8773v2 o�-��� 1 14. Interest Pavment; Record Date. Interest on any Global Certificate shall be 2 paid as provided in the first paragraph thereof, and interest on any Replacement Bond shall be 3 paid on each Interest Payment Date by check or draft mailed to the person in whose name the 4 Bond is registered (the "Holder") on the registration books of the City maintained by the Bond 5 Registrar, and in each case at the address appearing thereon at the close of business on the 6 fifteenth (l Sth) day of the calendar month preceding such Interest Payment Date (the "Regular 7 Record Date"). Any such interest not so timely paid shall cease to be payable to the person who 8 is the Holder thereof as of the Regular Record Date, and shall be payable to the person who is the 9 Holder thereof at the close of business on a date (the "Special Record Date") fixed by the Bond 10 Registrar whenever money becomes available for payment of the defaulted interest. Notice of 11 the Special Record Date shall be given by the Bond Registrar to the Holders not less than ten 12 (10) days prior to the Special Record Date. 13 15. Holders: Treatment of Registered Owner; Consent of Holders. 14 A. For the purposes of all actions, consents and other matters affecting Holders of the 15 Bonds, other than payments, redemptions, and purchases, the City may (but shall not be 16 obligated to) treat as the Holder of a Bond the beneficial owner of the Bond instead of the person 17 in whose name the Bond is registered. For that purpose, the City may ascertain the identity of 18 the beneficial owner of the Bond by such means as the Bond Registrar in its sole discretion 19 deems appropriate, including but not limited to a certificate from the person in whose name the 20 Bond is registered identifying such beneficial owner. 21 B. The City and Bond Registrar may treat the person in whose name any Bond is 22 registered as the owner of such Bond for the purpose of receiving payment of principal of and 23 premium, if any, and interest (subject to the payment provisions in paragraph 14 above) on, such 24 Bond and for all other purposes whatsoever whether or not such Bond shall be overdue, and 25 neither the City nor the Bond Registrar shall be affected by notice to the contrazy. 2G C. Any consent, request, direction, approval, objection ar other instrument to be 2? signed and executed by the Holders may be in any number of concurrent writings of similar tenor 28 and must be signed or executed by such Holders in person or by agent appointed in writing. 29 Proof of the execution of any such consent, request, direction, approval, objection or other 30 instrument or of the writing appointing any such agent and of the ownership of Bonds, if made in 31 the following manner, shall be sufficient for any of the purposes of this resolution, and shall be 32 conclusive in favor of the City with regard to any action taken by it under such request or other 33 instrument, namely: 34 (1) The fact and date of the execution by any person of any such writing may 35 be proved by the certificate of any officer in any jurisdiction who by law has power to 36 take acknowledgments within such jurisdiction that the person signing such writing 37 acknowledged befare him or her the execution thereof, ar by an affidavit of any witness 38 to such execution. 39 (2) Subject to the provisions of subpazagraph (A) above, the fact of the 40 ownership by any person of Bonds and the amounts and numbers of such Bonds, and the 41 date of the holding of the same, may be proved by reference to the bond register. 28 1268773v2 o�-��� 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 16. Delivery; Application of Proceeds. The Global Certificates when so prepared and executed shall be delivered by the Director, Office of Financial Services, to the Purchaser upon receipt of the purchase price, and the Purchaser shall not be obliged to see to the proper application thereof. 17. Fund and Account. There is hereby created a special account to be designated the "Capital Improvement Bonds of 2001A Account" (the "AccounY') to be administered and maintained by the City Treasurer as a bookkeeping account separate and apart from all other accounts maintained in the officiai financial records of the City. There has been heretofore created and established the General Debt Service Fund (mimbered 960, herein the "Fund"). The Fund and the Account shall each be maintained in the manner herein specified until all of the Sonds and the interest thereon haue been fully paid. (i) Account. To the Account there shall be credited the proceeds of the sale of the Bonds, less accrued interest received thereon, and less any amount paid for the Bonds in excess of $18,857,500. From the Account there shall be paid all costs and expenses of making the Improvements, including the cost of any construction contracts heretofore let and all other costs incurred and to be incuned of the kind authorized in Minnesota Statutes, Section 475.65 (including interest on the Bonds payable during the construction period); and the moneys in the Account shall be used for no other purpose except as otherwise provided by law; provided that the proceeds of the Bonds may also be used to the extent necessary to pay interest on the Bonds due prior to the anticipated date of commencement of the collection of taxes levied herein; and provided further that if upon completion of the Improvements there shall remain any unexpended balance in the Account, the balance may be transferred by the Council to the fund of any other improvement instituted pursuant to Laws of Minnesota for 1971, Chapter 773, as amended, or used for any other puipose permitted by law, ar transfened to the Fund. All eamings on the Account shall be transferred to the Fund, or may remain in the Account. (ii) Fund. There is hereby pledged and there shall be credited to the Fund, to a special sinking fund account which is hereby created and established therein for the payment of the Bonds: (a) all accrued interest received upon delivery of the Bonds; (b) all funds paid for the Bonds in excess of $18,857,500; (c) any collections of all taxes which are herein levied for the payment of the Bonds and interest thereon as provided in paragraph 1$; (d) all funds remaining in the Account after completion of the Improvements and payrnent of the costs thereof, not so transferred to the account of another improvement or used for any other purpose permitted by law; (e) all inveshnent earnings on moneys held in said special account in the Fund; and (� any and all other moneys which are properly available and are appropriated by the governing body of the City to said special account in the Fund. 41 Said special account created in the Fund shall be used solely to pay the principal and 42 interest and any premiums for redemption of the Bonds and any other bonds of the City 43 heretofore or hereafter issued by the City and made payable from said special account in the 29 1268773v2 o�-��� 10 11 12 l3 14 15 16 17 Fund as provided by law, ar to pay any rebate due to the United States. No portion of the proceeds of the Bonds shall be used directly or indirectly to acquire higher yielding investments or to replace funds which were used directly or indirectly to acquire higher yielding inveshnents, except (1) for a reasonable temporary period until such proceeds are needed for the purpose for which tl�e Bonds were issued, and (2) in addition to the above in an amount not greater than $100,000. To this effect, any proceeds of the Bonds and any sums from time to time held in the Account or said specia] account in the Fund (ar any other City account which will be used to pay principal or interest to become due on the bonds payable therefrom) in excess of amounts which under then-applicable federal arbitrage regulations may be invested without regard as to yield shall not be invested at a yield in excess of the applicable yield restrictions imposed by said arbitrage regulations on such investments after taking into account any applicable "temporary periods" or "minor porlion° made available under the federal arbitrage regulations. In addition, die proceeds of thc Bonds and money in the Account or the Fund shall not be invested in obligalions or deposits issued by, guaranteed by or insured by the United States or any agency or instrwneutaliCy thereof if and to the extent that such investment would cause the Bonds to be "federally guaranleed" within the meaning of Section 149(b) of the federal Internal Revenue Code of 1986, as amended (the "Code"). 18 18. Tax Levv; Covera e� Test. To provide moneys for payment of the 19 priucipal and intex'esf on the Bonds there is hereby levied upon all of the taacable property in the 20 CiYy a direcC amival ad valorem tax which shall be spread upon the tax rolls and collected with 21 and 1s part of other general property taxes in the City for the years and in the amounts as 22 follows: Year of Tax Lev 2000* 2001 2002 2003 2004 2005 2006 2007 2008 2009 Year of Tax Levy 2001* 2002 2003 2004 2005 2006 2007 2008 2009 2010 Amount $2,607,759* 2,611,403 2,596,204 2,578,170 2,567,802 2,548,875 2,527,350 2,507,138 2,487,975 2,469,600 23 " heretofore levied or provided from other available City funds, including premium received 24 u�oiz sale of lhe bonds 25 The tax levies are such that if collected in full they, together with estimated 26 collections of any other revenues herein pledged for the payment of the Bonds, will produce at 27 leasl five percent (5%) in excess of the amount needed to meet when due the principal and 28 interest plyments on the Bonds. The tax levies shall be irrepealable so long as any of the Bonds 29 are outstai�ding and unpaid, provided that the City reserves the righY and power to reduce the 30 12G8773v2 2 4 5 6 10 11 12 13 14 IS 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Di ��i Fund as provided by law, or to pay any rebate due to the United States. No portion of the roceeds of the Bonds shall be used directly or indirectly to acquire higher yielding investments to replace funds which were used directly or indirectly to acquire higher yielding investments, ex ept (1) for a reasonable temporary period until such proceeds are needed for the puipose for whi the Bonds were issued, and (2) in addition to the above in an amount not greater ihan $] 00, 00. To this effect, any proceeds of the Bonds and any sums from time to time held in the Accoun or said special account in the Fund (or any other City account which will be used to pay principal r interest to become due on the bonds payable therefrom) in excess of amounts which under then- plicable federal arbitrage regulations may be invested without regard as to yield shall not be i vested at a yield in excess of the applicable yield restrictions imposed by said arbihage regul ions on such investments after taking into account any applicable "temporary periods" or "min x portion" made available under the federal arbitrage regulations. In addition, the proceeds of the��, o obligations or deposiF� instrumentality therem "federally guaranteed" Code of 1986, as amer and money in the Account or the Fund shall not be invested in issued by, guaranteed by or insured by the United States or any agency or �if and to the extent that such investment would cause the Bonds to be wi�hin the meaning of Section 149(b) of the federal Internal Revenue ied ���he "Code"). 18. Tax Lev'� principal and interest on the Bo City a direct annual ad valorem and as part of other general pro� follows: Year of Tax Levv 2000• 2001 2002 2003 2004 2005 200G 2007 2008 2009 overage Test. To provide moneys for payment of the there is hereby levied upon all of the taxable property in the ; which shall be spread upon the tax rolls and collected with y���axes in the City for the years and in the amounts as ar o f Tax Levv Amount 1• 2004 2005 200G 2007 2008 2009 2010 � heretofore levied or provided from other available City funds $ The tax levies are such that if collected in full they, toge�her with estimated collections of any other revenues herein pledged for the payment of the Bbnds, least five percent (5%) in excess of the amount needed to meet when due tfi�, p interest payments on the Bonds. The tax levies shall be irrepealable so long as are outstanding and unpaid, provided that the City reserves the right and power levies in the manner and to the extent permitted by Minnesota Statutes, Section Subdivision 3. t2van��z 30 will produce at rincipal and any of the Bonds �to reduce the �, ,, r �4 • �l �\_'>�� levies in tl�e manner and to the exlent permitted by Minnesota SYatutes, Section 475.61, Subdivision 3. 3 19. General Obli�ation Pled�e. For the prompt and full payment of the 4 priucipal and interest on the Bonds, as the same respectively become due, the full faith, credit 5 and taxing powers of the City shall be and are hereby in�evocably pledged. If the balance in the 6 Fund (as defined in paragraph 17 hereo fl is ever insufficient to pay all principal and interest then 7 due on the Bonds payable therefrom, the deficiency shall be promptly paid out of any other funds 8 of the City which are available for such purpose, including the general fund of the City, and such 9 other fimds may be reimbursed with or without interest from the Fund when a sufficient balance 10 is available lherein. i l 20. Certificate of Registration. The Director, Office of Financial Services, is 12 hereby directed to file a certified copy of this resolution with the officer of Ramsey County, 13 Minnesota, performing the fimctions of the county auditar (the "County Auditor"), together with 14 such other information as the County Auditor shall require, and to obtain the County Auditor's 15 certificate ihat the Bonds have been entered in the County Auditor's Bond Register, and that the 16 lax levy requi��ed by law has been made. 17 21. Records and Certificates. The officers of the City are hereby authorized 18 and directed to prepare and fiirnish to the Purchaser, and to the attorneys approving the legality 19 of the issttance of the Bouds, certified copies of all proceedings and recards of the City relating 20 to lhe Bonds and to the Gnancial condition and affairs of the City, and such other affidavits, 21 cerlificales and infornlalion as are required to show the facts relating to the legality and 22 marketabilily of the Bonds as the same appear from the books and records under their custody 23 and control or as otherwise lrnown to them, and all such certified copies, certificates and 24 affidavits, including any heretofore furnished, shall be deemed representations ofthe City as to 25 the facls recited therein. 26 22. Ne�ative Covenants as to Use of Proceeds and Imnrovements. The City 27 hereby covenants not to ttse the proceeds of the Bonds or to use the Improvements, or to cause or 28 permit them to be used, or to enter into any deferred payment arrangements for the cost of the 29 Improvements, in such a manner as to cause the Bonds to be "private activity bonds" within the 30 meaning of Sections 103 and 141 through 150 of the Code. The City reasonably expects that no 31 actious will be taken over the term of the Bonds that woutd cause them to be private activity 32 bonds, and lhe average term of the Bonds is not longer than reasonably necessary for the 33 govermnent�l purpose of the issue. The City hereby covenants not to use the proceeds of the 34 Bonds in such a maimer as to cause the Bonds to be "hedge bonds" within the meaning of 35 Section 149(g) of tl�e Code. 36 23. T1x-Exemnt Status of the Bonds; Rebate; Elections. The City shall 37 comply wifh requirements necessary under the Code to establish and maintain the exclusion from 38 gross income under Section 103 of the Code of the interest on the Bonds, including without 39 limitllion requirements relating to teinporary periods far investments, limitations on amounts 40 iuvested at a yield greater than the yield on the Bonds, and the rebate of excess investment 41 earnings to the United States. 31 izvs775�2 d�-�ii other fund�n ay be reimbursed with or without interest from the Fund when a sufficient balance is available t�erein. - 19. General Obligation Pledee. For the prompt and full payment of the nc�pal and interest on the Bonds, as the same respectively become due, the full faith, credit an taxing powers of the City shall be and are hereby irrevocably pledged. If the balance in the Fun �as defined in paragraph 17 hereo� is ever insufficient to pay all principal and interest then due on`�he Bonds payable therefrom, the deficiency shall be promptly paid out of any other funds of the C�t��+ which are available for such purpose, including the general fund of the City, and such s 9 2Q Certificate of R�istration. The Director, Office of Financial Services, is 10 hereby directed to �le a certified copy of this resolution with the officer of Ramsey County, i l Minnesota, perforniing the functions of the county auditor (the "County Auditor"), together with 12 such other informatio�,as the County Auditor shall require, and to obtain the County Auditor's 13 certificate that the Bonc�� have been entered in the County Auditor's Bond Register, and that the 14 tax levy required by law h�s been made. 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 21. Records and Certificates. The officers of the City are hereby authorized and directed to prepare and furri�sh to the Purchaser, and to the attorneys approving the legality of the issuance of the Bonds, certFfied copies of all proceedings and records of the City relating to the Bonds and to the financial co`t�dition and affairs of the City, and such other affidavits, certificates and information as are required to show the facts relating to the legality and mazketability of the Bonds as the same'appear from the books and records under their custody and control or as otherwise known to theil�, and all such certified copies, certificates and affidavits, including any heretofore furnishLd, shall be deemed representations of the City as to the facts recited therein. � � �, 22. Nccative Covenants as to�Use of Proceeds and Improvements. The City hereby covenants not to use the proceeds of the B�nds or to use the Improvements, or to cause or permit them to be used, or to enter into any deferrek�payment arrange-ments for the cost of the Improvements, in such a manner as to cause the Bontls to be "private activity bonds" within the meaning of Sections ] 03 and 141 through 150 of the C'ode. '1'he City reasonably expects that no actions will be taken over the term of the Bonds that would cause them to be private activity bonds, and the average term of the Bonds is not longer than reasonably necessary for the govemmental purpose of the issue. The Gity hereby covenants not to use ihe proceeds of the Bonds in such a manner as to cause the Bonds to be "hedge bo�ds" within the meaning of Section 149(g) of the Code. ��� 23. Tax-Exempt Status of the Bonds: Rebate; Electioi comply with requirements necessary under the Code to establish and��na gross income under Section 103 of the Code of the interest on the Borid: limitation requirements relating to temporary periods for investments, lii invested at a yield greater than the yield on the Bonds, and the rebate of earnings to the United States. . The City shall itain the exclusion from including without itations on amounts ecess investment 40 The City expects that the two-year expenditure exception to the`��bate 41 requirements may apply to the construction proceeds oFthe Bonds. \. �. \. • �; 31 1268777v2 � `•`\ � \ o�-��� The City expects that the two-year expenditure exception to the rebate requirements may apply to the construction proceeds of the Bonds. If any elections are available now or hereafter with respect to arbitrage or rebate matte�s relating to the Bonds, the Mayor, Clerk, Treasurer and Director, Office of Financial Seivices, or nny of them, are hereby autharized and directed to make such elections as they deem necessary, appropriate or desirable in connection with the Bonds, and all such elections shall be, and sh111 be deemed and treated as, elections of the City. 8 24. No Desianation of Oualified Tax-Exempt Obligations. The Bonds, 9 together with other obligations issued by the City in 2001, exceed in amount those which may be 10 qualified as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the 11 Code, and hence are not designated for such purpose. 12 25. Letter of Representations. The Letter of Representations for the Bonds is 13 hereby confirmed to be the Blanket Issuer Letter of Representations dated April 10, 1996, by the 14 City and received and accepted by The Depository Trust Company. So long as The Depository 15 Trust Company is the Depository or it or its nominee is the Holder of any Global Certificate, the 16 City shall comply with the provisions of the Letter of Representations, as it may be amended ar 17 supplemented Uy lhe City from time to time with the agreement or consent of The Depository 18 Trust Comp�ny. 19 26. Negotiated Sale. The City has retained Springsted Incorporated as an 20 indepei�dent financial advisor, and the City has heretofore determined, and hereby determines, to 21 sell the Bonds by private negotiation, all as provided by Minnesota Statutes, Section 475.60, 22 Subdivision 2O). 23 27. Continuin� Disclosure. The City is an obligated person with respect to the 24 Bonds. The City hereby agrees, in accordance with the provisions of Rule 15c2-12 (the "Rule"), 25 promulgated by the Securities and Exchange Commission (the "Commission") pursuant to the 26 Secttrities Exchange Act of 1934, as amended, and a Continuing Disclosure Undertaking (the 27 "Undertaking") hereinafter described, to: 28 A. Provide or cause to be provided to each nationally recognized municipal 29 sec�irities information repository ("NRMSIR") and to Yhe appropriate state information 30 deposiCory ("SID"), if any, for the State o£Minnesota, in each case as designated by the 31 Commission in accordance with the Rule, certain annual financial information and 32 operating data in accordance with the Undertaking. The City reserves the right to modify 33 firom time to time the terms of the Undertaking as provided therein. 34 B. Provide or cause to be provided, in a timely manner, to (i) each NRMSIR 35 or to the Manicipal Securities Rulemaking Board ("MSRB") and (ii) the SID, notice of 36 the occtn�rence of certain material events with respect to the Bonds in accordance with the 37 Undertal<ing. 38 C. Provide or cause to be provided, in a timely manner, to (i) each NRMSIR 39 or Yo lhe MSRB and (ii) the SID, notice of a failure by the City to provide the annual 40 Fnancial information with respect to the City described in the Undertaking. 32 126R77Jv2 e�_.��� If any elections are available now or hereafter with respect to arbitrage or rebate atters relating to the Bonds, the Mayor, Clerk, Treasurer and Director, Office of Financial Se 'ces, or any of them, are hereby authorized and directed to make such elections as they deem necess , appropriate or desirable in connection with the Bonds, and all such elections shall be, and shall� deemed and treated as, elections of the City. 6 4. No Desienation of Oualified Tax-Exe�t Obli ations. The Bonds, 7 together with ot er obligations issued by the City in 2001, exceed in amount those which may be 8 qualified as "quali ied tax-exempt obligations" within the meaning of Section 265(b)(3) of the 9 Code, and hence a��not designated for such purpose. 10 I1 12 13 14 15 16 25. �Detter of Re ?resentations. The Letter of Representations for the Bonds is hereby confirmed to be t BM lanket Issuer Letter of Representations dated April 10, 1996, by the City and received and acce�ted by The Depository Trust Company. So long as The Depository Trust Company is the Depositpry or it or its nominee is the Holder of any Global Certificate, the City shall comply with the proJi,sions of the Letter of Representations, as it may be amended or supplemented by the City from tii�ie to time with the agreement or consent of The Depository Trust Company. � 17 2G. Neeotiated Sale`�,The City has retained Springsted Incorporated as an 18 independent financial advisor, and the CiEy has heretofore determined, and hereby determines, to 19 sell the Bonds by private negotiation, all as'��rovided by Minnesota Statutes, Section 475.6Q 20 Subdivision 2(9). �, 21 27. Continuin� Disclosure. '�he City is an obligated pecson with respect to the 22 Bonds. The City hercby agrees, in accordance wiY the provisions of Rule 15c2-12 (the "Rule"), 23 promulgated by the Securities and Exchange Com�jssion (the "Commission") pursuant to the 24 Securities Exchange Act of 1934, as amended, and a�ontinuing Disclosure Undertaking (the 25 "Undertaking") hereinafter described, to: ��� 2G 27 28 29 30 31 A. Provide or cause to be provided to ` ch nationally recognized municipal securities information repository ("NRMSIR") and�he appropriate state information depository ("SID"), if any, for the State of Minnesota, � each case as designated by the Commission in accordance with the Rule, certain annualWfinancial information and operating data in accordance with the Undertaking. The C4jty reserves the right to modify from time to time the terms of the Undertaking as provided t�erein. 32 B. Provide or cause to be provided, in a timely ma�er, to (i) each NRM5IR 33 or to the Municipal Securities Rulemaking Board ("MSRB") an �ii) the SID, notice of 34 the occurrence of certain material events with respect to the Bonds� acwrdance with the 35 Undertaking. 36 C. Provide or cause to be provided, in a timely manner, to r each NRMSIR 37 or to the MSRB and (ii) the SID, notice of a failure by the City to provi�the annuai 38 financial information with respect to the City described in the Undertaking. 39 The City agrees that its covenants pursuant to the Rule set forth in this , aragraph 40 27 and in the Undertaking are intended to be for the benefit of the Holders of the Bonds`and shall 32 12G8773v2 o�-��� 1 The City agrees that its covenants pursuant to the Rule set forth in this paragraph 2 27 and in the Uiidertaking are intended to be for the benefit of the Holders of the Bonds and shall 3 be enforceable on behalf of such Holders; provided that the right to enforce the provisions of 4 these covenauts shall be limited to a right to obtain specific enforcement of the City's obligations 5 imder the covenants. 6 The Mayor and Director, Office of Financial Services, or any other officers of the 7 City autliorized to act in their stead (the "Officers"), are hereby authorized and directed to 8 execute ou behalf of the City the Undertaking in substantially the form presented to the City 9 Council, subjecl lo such modifications thereof or additions thereto as are (i) consistent with the 10 requiremevts under the Rule, (ii) required by the Purchaser, and (iii) acceptable to the Officers. 11 28. Severabilitv. If any section, paragraph or provision of this resolution 12 shall be lield to be invalid or unenforceable for any reason, the invalidity or unenforceability of 13 such section, paragraph or provision shall not affect any of the remaining provisions of this 14 resolution. 33 i zes��s�z di-3i� enforceable on behalf of such Holders; provided that the right to enforce the provisions of se covenants shall be limited to a right to obtain specific enforcement of the City's obligations 9erthe covenants. 4 '� The Mayor and Director, Office of Financial Services, or any other officers of the 5 City 8uthorized to act in their stead (the "Officers"), are hereby authorized and directed to 6 execute on behalf of the City the Undertaking in substantially the form presented to the City 7 Council;.�ubject to such modifications thereof or additions thereto as are (i) consistent with the 8 requirements under the Rule, (ii) required by the Purchaser, and (iii) acceptable to the Officers. 9 '. 28. Severabilitv. If any section, paragaph or provision of this resolution 10 shall be held to,.be invalid or unenforceable for any reason, the invalidity or unenforceability of 11 such section, par�graph or provision shall not affect any of the remaining provisions of this 12 resolution. 1 �( �268773v2 t �\ `. k � \ 33 0�-'3�� 29. HeadinQS. Headings in this resolution are included for convenience of reference only and are not a part hereof, and shail not limit or define the meaning of any provision hereof. Adopted by Council: Date�� �,p �-F� a-<� c�� Adoption Certified by Council Secretary By: I \��`\��� � � Approved by Mayor: Date ! 2�� By: � 12G8773v2 34 Reques db r.t�nt f: �'�NAN��A�' ge ��`� 3 �� By:� Form Approved by City Attorney By: �G.'— `�._ � � � /�'- o � for SulSmfssioGfto Council � � of Financial Services BE ON COUNGL TOTAL # OF SIGNATURE PAGES DATEINITIATED ,s,zoo, GREEN SH NUMBERFOR ROUTING o�-��� No 103538 u OEPNRTMENTDIRECTOR `�// f/ u GITYCOUNCIL � CITYATTpRNEY � ❑ CITYCLERK ❑ FINANCIALSERVIGESOIR. ❑ FINANCIALSERVIACQG � MAVOR ❑ 1_ (CLIP ALL LOCATIONS FOR SIGNATURE) iis resolution accepls the wlnning proposal and awards lhe bid for the $19,000,000 G.O. 3pilal Improvemenl Bonds Serles 2007A. Thls is a competitive bond sale and the award going to the bidder found most advantageos (lowest cost) to the City. JUA I IUN HP(1fOVB (H) Of KBJBC[ PLANNING COMMISSION CIB COMMITTEE CIVIL SERVICE COMMISSION PERSONAL SERVICE CONTRACTS MUST ANSWER THE FOLLOWING QUESTlONS: 1. HasthlspersoNfirmeverworkedunderaconlractforthisdepartmenl'7 YES NO 2. Has this persoNfirm ever been a city employee? YES NO 3. Does this persoNFlrm possess a skill not normally possessed by any arrent ciry employee� YES NO 4 Is this persoNfrm a targeted vendoR VES NO 3 PROBLEM ISSUE, OPPOR7UNITV (Who, What, When, Where, Why) are forthe purpose of Ponding the 6ond Mancine potlion ofthe Capllal Improvement Budget. be avallable for the CIB Budget. needed for capltal proJects wlll nol be avalleble. AMOUNT OF TRANSACTION S s�e.o0o.000 FUNDING SOURCE �.��"�}'�� ���������g�� �, � � �6� ��b�� COST/REVENUE BUDGETED (CIRCLE ONE) ACTIVIN NUMBER YES NO INFORMATION (EXPLAIN) ° ��G � -Z��d/ CouncilFile# 0 �" 3 �� 0 R I G I�I � L Green Sheet # l � ��,St` RESOLUTION ���/,,� "' ITY OF SAINT PAUL, MINNESOTA '�"� Presented By j �����L Referred To Committee: Date ACCEPTING PROPOSAL ON SALE OF $19,000,000 GENERAL OBLIGATION CAPITAL IMPROVEMENT BONDS, SERIES 2001A, PROVIDING FOR THEIR ISSUANCE, AND LEVYING A TAX FOR THE PAYMENT THEREOF WHEREAS, the Director, Office of Financial Services, has presented proposals received for the sale of $19,000,000 General Obligation Capital Improvement Bonds, Series ZOOlA (the "Bonds"), of the City of Saint Paul, Minnesota (the "City"); and 9 WHEREAS, the proposals set forth on Exhibit A attached hereto were received 10 pursuant to the Terms of Proposal at the offices of Springsted Incorporated at 10:30 A.M., 11 Central Time, this same day; and 12 WHEREAS, the Director, Office of Financial Services, has advised this Council 13 that the proposal of ,�� e,�' m�r.�,a �r.>.�., �S ✓LeWas found to be the most advantageous 14 and has recommended that said proposal be accepted; and 15 WHEREAS, the proceeds of the Bonds will finance certain capital improvements, 16 for which the City is proceeding pursuant to its Charter and Laws of Minnesota far 1971, 17 Chapter 773, as amended, with any excess to be used for any other purpose pezmitted by law; 18 and 19 WHEREAS, the City has hereto£ore issued registered obligations in certificated 20 form, and incurs substantial costs associated with their printing and issuance, and substantial 21 continuing transaction costs relating to their payment, transfer and exchange; and 22 WHEREAS, the City has determined that significant savings in transaction costs 23 will result from issuing bonds in "global book-entry form", by which bonds are issued in 24 certificated form in large denominations, registered on the books of the City in the name of a 25 depository ar its nominee, and held in safekeeping and immobilized by such depository, and such 26 depository as part of the computerized national securities clearance and settlement system (the 27 "National System") registers transfers of ownership interests in the bonds by making 28 computerized book entries on its own books and distributes payments on the bonds to its 29 Participants shown on its books as the owners of such interests; and such Participants and other 30 banks, brokers and dealers participating in the National System will do likewise (not as agents of 31 the City) if not the beneficial owners of the bonds; and 1 12G8773v2 DI-��� WFIEREAS, "Participants" means those financial institutions for whom the Depository effects book-entry transfers and pledges of securities deposited and immobilized with lhe Depository; and WHEREAS, The Depository Trust Company, a limited purpose trust company orglnized under the laws of the State of New York, or any of its successors or successors to its functions hereunder (the "Depositary"), will act as such depository with respect to the Bonds except as set forth below, and the City has heretofare delivered a letter of representations (the "Lelter of Representations") setting forth various matters relating to the Depository and its role with respect to the Bonds; and ] 0 WHEREAS, the City will deliver the Bonds in the form of one certificate per ll maturily, each representing the entire principal amount of the Bonds due on a particular maturity 12 daYe (each a"Global Cerlificate"), which single certificate per maturity may be transferred on the 13 City's bond register as required by the Uniform Commercial Code, but not exchanged for smaller 14 denominalions unless the City determines to issue Replacement Bonds as provided below; and 15 WH�REAS, the City will be able to replace the Depository or under certain 16 circumstances to abandon the "global book-entry form" by permitting the Global Certificates to 17 Ue exchanged for smaller denominations typical of ordinary bonds registered on the City's bond 18 registei; and "Replacement Bonds" means the certificates representing the Bonds so 19 authenticated and delivered by the Bond Registrar pursuant to paragraphs 6 and 12 hereof; and 20 WHEREAS, "Holder" as used herein means the person in whose name a Bond is 21 registered on Che registration books of the City mainYained by the registrar appointed as provided 22 in paragraph 8(the "Bond Registrar"); and 23 WHEREAS, Rule 15c2-12 of the Securities and Exchange Commission prohibits 24 "participlling underwriters° from purchasing ar selling the Bonds unless the City undertakes to 25 provide cerlain continuing disclosure with respect to the Bonds; and 26 WHEREAS, pursuant to Minnesota Statutes, Section 475.60, Subdivision 2(9), 27 public sale requirements do not apply to the Bonds if the City retains an independent financial 28 ldvisor and determines to sell the Bonds by private negotiation, and the City has instead 29 autliorized a competitive sale without publication of notice thereof as a form of private 30 negoliatioi�; and 31 WHEREAS, proposals for the Bonds have been solicited by Springsted 32 Incorporlted p�u•s�iant to an Official Statement and Terms of Proposal therein: 33 NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Saint 34 Paul, Minnesota, as follows: 35 l. Acceptance of Proposal. The proposal of Banc of America Securities, 36 LLC (the "Purcl�aser"), to purchase $19,OOQ000 General Obligation Capital Improvement 37 Bonds, Series 2001A, of the City (the "Bonds", or individually a"Bond"), in accordance with the 38 Terms of Proposal for the bond sale, at the rates of interest set forth hereinafter, and to pay for 39 the Bonds the sum of $19,681,895.40, plus interest accrued to settlement, is hereby found, 2 i26877Jv2 ai-��i a 5 0 10 WHEREAS, the City will deliver the Bonds in the form of one certificate per I 1 maturity, e h representing the entire principal amount of the Bonds due on a particular maturity 12 date (each a' lobal Certificate"), which single certificate per maturity may be transferred on the 13 City's bond reg ter as required by the Uniform Commercial Code, but not exchanged for smaller 14 denominations u��ess the City determines to issue Replacement Bonds as provided below; and IS WHEf�EAS, the Citywill be able to replace the Depository or under certain 16 circumstances to abancl n the "giobal book-entry form" by permitting the Global Certificates to 17 be exchanged for smalle�enominations typica( of ordinary bonds registered on the City's bond 18 register; and "Replacemente onds" means the certificates representing the Bonds so 19 authenticated and delivered the Bond Registraz pursuant to paragraphs 6 and 12 hereof; and 20 WHEREAS, "H'�er" as used herein means the person in whose name a Bond is 21 registered on the registration boo s of the City maintained by the registrar appointed as provided 22 in paragraph 8(the "Bond Reg�straPk�); and 23 WHEREAS, Rule 15c2��12 of the Securities and Exchange Commission prohibits 24 "participating underwriters" from purcti'�sing or selling the Bonds unless the City undertakes to 25 provide certain continuing disclosure witl�respect to the Bonds; and WHEREAS, "Participants" means those financial institutions for whom the Depository effects book-entry transfers and pledges of securities deposited and immobilized with the Depository; and WHEREAS, The Depository Trust Company, a limited purpose trust company rganized under the laws of the State of New York, or any of its successors or successors to its nctions hereunder (the "Depository"), will act as such depository with respect to the Bonds ex ept as set forth below, and the City has heretofore delivered a letter of representations (the "Le r of Representations") setting forth various matters relating to the Depository and its role with spect to the Bonds; and 26 WHEREAS, pursuant to Min�esota Statutes, Section 475.60, Subdivision 2(9), 27 public sale requirements do not apply to the �gnds if the City retains an independent financial 28 advisor and determines to sell the Bonds by pn�ate negotiation, and the City has instead 29 authorized a competitive sale without publicatio�of notice thereof as a form of private 30 negotiation; and � 31 32 WHEREAS, proposals for the Bonds Incorporated pursuant to an Official Statement and 7 been solicited by Springsted ofProposaltherein: 33 34 35 36 37 38 39 NOW, THEREFORE, BE IT Paul, Minnesota, as follows: the Council of the City of Saint 1. Acceptance of Proposal. The proposal � "Purchaser") to purchase $19,000,000 General Obligation Cap 2001A, of the City (the "Bonds", or individually a"Bond"), in Proposal for the bond sale, at the rates of interesf set forth hereinafte the sum of $ �, plus interest acarued to settlement, 1268777v2 (the with the Terms of to pay for the Bonds eby found, determined ��. \ P�—�3�/ 10 11 12 13 determined and declared to be the most favorable proposal received and is hereby accepted, and the Bonds are hereby awarded to the Purchaser. The Director, Office of Financial Services, or his designee, is directed to retain the deposit of the Purchaser and to forthwith return to the others making proposals their good faith checks or drafts. 2. Title; Original Issue Date; Denominations; Maturities. The Bonds shall be tilled "General OUligation Capital Improvement Bonds, Series 2001A", shall be dated April 1, 2001, as the date of original issue and shall be issued forthwith on or after such date as fully registered bonds. The Bonds shall be numbered from R-1 upward. Global Certificates shall each be in lhe denomination of lhe entire principal amount maturing on a single date, or, if a portion of said principal amowrt is prepaid, said principal amount less the prepayment. Replacement Bonds, if isstted as provided in paragraph 6, shall be in the denomination of $5,000 each or in auy integral multiple thereof of a single maturity. The Bonds shall mature on March 1 in the years and amounts as follows: Year 2002 2003 2004 2005 2006 14 15 16 17 18 19 20 21 22 Amount $1,660,000 1,655,000 1,715,000 1,775,000 1,845,000 Year 2007 2008 2009 2010 2011 Amount $1,910,000 1,985,000 2,065,000 2,150,000 2,240,000 3. Purpose. The Bonds shall provide funds for the construction of the capital iinprovemenis in the City's 2001 capital improvement budget (the "ImprovemenYs"), including payments on a lease relating to the City's central library. The proceeds of the Bonds shall be deposited 1nd used as provided in paragraph 17, far the purpose described by Laws of Minnesota for 1971, Cl�apter 773, as amended, and any excess moneys shall be devoted to any other purpose �ermitted by law. The total cost of the Improvements, which shall include all costs enumerated in Minnesota Statutes, Section 475.65, is estimated to be at least equal to the amount of the Bonds. Work on the Improvements shall proceed with due diligence to completion. 23 4. Interest. The Bonds shall bear interest payable semiannually on March 1 24 and 5eptember 1 of each year (each, an"Interest Payment Date"), commencing September 1, 25 2001, calculated on the basis of a 360-day year of twelve 30-day months, at the respective rates 26 per amzum set forth opposite the maturity years as follows: Mlturit� 2002 2003 2004 2005 2006 27 12G8773v2 Interest Rate 4.0 % 4.5 4.5 4.5 4.5 Maturitv Year 2007 2008 2009 2010 2011 Interest Rate 5.0% 5.0 5.0 5.0 5.0 O/-3// and declared to be the most favorable proposal received and is hereby accepted, and the Bonds 2 are hereby awarded to the Purchaser. The Director, Offce of Financial Services, or his designee, 3,, is directed to retain the deposit o€'the Purchaser and to forthwith retum to the others making 4 roposals their good faith checks or drafts. 5 � 2. Title: Original Issue Date; Denominations; Maturities. The Bonds shall be 6 titlec��."General Obligation Capital Improvement Bonds, Series 2001A", shall be dated April 1, 7 2001, ns the date of original issue and shall be issued forthwith on or after such date as fully 8 register�e�l bonds. The Bonds shall be numbered from R-1 upward. Global Certificates shall each 9 be in the i� nomination of the entire principal amount maturing on a single date, or, if a portion 10 of said prin�� al amount is prepaid, said principal amount less the prepayment. Replacement 11 Bonds, if issu�d as provided in paragraph 6, shall be in the denomination of $5,000 each or in 12 any integral rnul,Giple thereof of a single maturity. The Bonds shall mature on March 1 in the 13 years and amountg as follows: Year 2002 �003 2004 2005 2006 14 15 16 17 18 19 20 21 Amount $1,660,000 1,655,000 1,715,000 1,775,000 ���,845,000 Year 2007 2008 2009 2010 2011 Amount $1,910,000 1,985,000 2,065,000 2,150,000 2,240,000 3. Purpose. Th" ; Bonds shall provide funds for the construction of the capital improvements in thc City's 2001 ca�al improvement budget (the "Improvements"), including payments on a lease relating to the City's centrai library. The proceeds of the Bonds shall be deposited and used as provided in paragYaph 17, for ti�e purpose described by Laws of Minnesota for 1971, Chapter 773, as amended, and alrfy excess moneys shall be devoted to any other purpose permitted by law. The total cost of�the Improvements, which shall include all costs enumerated in Minnesota Statutes, Section 4'7�5.65, is estimated to be at least equal to the amount 22 of the Bonds. Work on the Improvements shall proceed with due diligence to completion. 23 4. Interest. The Bonds shall bear interest payable semiannually on Mazch 1 24 and Sepiember 1 of each year (each, an "Interest P��ment Date"), commencing September 1, 25 2001, calculated on the basis of a 360}day year of t�lve 30-day months, at the respective rates 26 per annum set forth opposite the maturity years a� foll'Qws: Maturity Year 2002 2003 2004 2005 2006 27 1268773v2 Interest Rate M� urit ' \. o�u 2`0,07 20d�3 2009 2010 2011 3 Interest Rate % 01-3ir 9 10 11 12 13 14 IS 16 5. Description of the Global Certificates and Global Book-Entrv S sy tem. Upon their original issuance the Bonds will be issued in the form of a single Global Certificate for each maturity, deposited with the Depository by the Purchaser and immobilized as provided in par�graph 6. No beneficial owners of interests in the Bonds will receive certificates representing their respective interests in the Bonds except as provided in paragraph 6. Except as so provided, during the term of the Bonds, beneficial ownership (and subsequent transfers of beneficial ownership) of interests in the Global Certificates will be reflected by book entries made on the records of the Depository and its Participants and other banks, brokers, and dealers pariicipating in the National System. The Depository's book entries of beneficial ownership interests are authorized to be in increments of $5,000 of principal of the Bonds, but not smaller increments, despite the larger authorized denominations of the Global Certificates. Payment of principal of, premium, if any, and interest on the Global Certificates will be made to the Bond Regislrar as paying agent, and in turn by the Bond Registrar to the Depository or its nominee as registered owiier of the Global Certificates, and the Depository according to the laws and rules governing it will receive and forward payments on behalf of the beneficial owners of the Global Certificales. 17 Ptiymenl oPprincipal of, premium, if any, and interest on a Global Certificate may in the 18 City's discrefion be made by such other method of transferring funds as may be requested by the 19 Holder of a Global Certificate. 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 6. Immobilization of Global Certificates by the Depository; Successor Depositorv: Re�lacement Bonds. Pursuant to the request of the Purchaser to the Depository, which request is required by the Terms of Proposal, immediately upon the original delivery of tlie Bonds the Purchaser will deposit the Global Certificates representing all of the Bonds with the Depository or its agent. The Global Certificates shall be in typewritten form or otherwise as acceplable to the Depository, shall be registered in the name of the Depository ar its nominee and shall be held immobilized from circulation at the offices of the Depositary or its agent on behllf of the Purchaser and subsequent bondowners. The Depository or its nominee will be the sole holder oPrecord of the Global Certificates and no investor ar other party purchasing, selling or otherwise transfen•ing ownership of interests in any Bond is to receive, hold or deliver any bond certificates so long as the Depository holds the Global Certificates immobilized from circulation, except as provided below in this paragraph and in paragraph 12. Certificates evidencing the Bonds may not after their original delivery be transferred or exchanged except: (i) Upon registration of transfer of ownership of a Global Certificate, as provided in paragraph 12, (ii) To any successor of the Depository (or its nominee) or any substitute depository (a "substitute depository") designated pursuant to clause (iii) of this subparagraph, provided that any successor of the Depository or any substitute depository must be both a"clearing corporation" as defined in the Minnesota Uniform Commercial Code at MinnesoCa Statutes, Section 336.8-102, and a qualified and registered "clearing agency" as provided in Section 17A of the Securities Exchange Act of 1934, as amended, 12G8773v2 C! • i �' . �: . . . . � 1 5. Descrintion of the Global Certificates and Globai Book Entrv Svstem. Upon their original issuance the Bonds will be �ssued m the form of a single Global Certificate 3 for each maturity, deposited with the Depository by the Purchaser and immobilized as provided 4 paragraph 6. No beneficial owners oFinterests in the Bonds will receive certificates 5 re esenting their respective interests in the Bonds except as provided in paragraph 6. Except as 6 so p vided, during the term of the Bonds, beneficial ownership (and subsequent transfers of 7�� bene ial ownership) of interests in the Global Certificates will be reflected by book entries 8 made o the records of the Depository and its Participants and other banks, brokers, and dealers 9 participat�g in the National System. The Depository's book entries of beneficial ownership 10 interests arc� uthorized to be in increments af $5,000 of principal of the Bonds, but not smaller 11 increments, d��pite the larger authorized denominations of the Global Certificates. Payment of 12 principal of, pre: ium, if any, and interest on the Global Certificates will be made to the Bond 13 Registrar as pay�n , agent, and in turn by the Bond Registrar to the Depository o� its nominee as 14 registered owner of ih Global Certificates, and the Depository according to the laws and rules 15 governing it will recei�\nd forward payments on behalf of the beneficial owners of the Global 16 Certificates. 17 Payment ofprincipal �d�' prerriium, if any, and interest on a Global Certificate may in the 18 City's discretion be made by suC other method of transferring funds as may be requested by the 19 Holder of a Global Certificate. � 20 21 22 23 24 25 2G 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 6. Immobilizatio�of Global Certificates bv the Denositorv Successor Depositorv: Renlacement Bonds. Purs nt to the request of the Purchaser to the Depository, which request is required by the Terms o�•�roposal, immediately upon the original delivery of the Bonds the Purchaser will deposit the Glbbal Certificates representing atl of the Bonds with the Depository. Tha Global Certificates shal���e in typewritten form or otherwise as acceptable to the Depository, shall be registered in the narri of the Depository or its nominee and shall be held immobilized from circulation at the offices� {'ihe Depository on behalf of the Purchaser and subsequent bondowners. The Depository or its nom'nee will be the sole holder of record of the Global Certificates and no investor or other party pu��iasing, selling or otherwise transferring ownership of interests in any Bond is to receive; hold on,deliver any bond certificates so long as the Depository holds the Global Certificates immobilized��i�om circulation, except as provided below in this paragraph and in paragraph 12. `�,, . Certificates evidencing the Bonds may not after their exchanged except: (i) Upon registration of transfer of ownership of a provided in paragraph 12, delivery be transferred or Certificate, as (ii) To any successor of the Depository (or its nominee) or ai�,y, substitute depository (a "substitute depository") designated pursuant to clause (iii) 0�"4 �,�s subpazagraph, provided that any successor of the Depository or any substitutc deposi must be both a"clearing corporation" as defined in the Minnesota Uniform Co� Code at Minnesota Statutes, Section 336.8-102, and a qualified and registered "cl�"?�ri agency" as provided in Section 17A of the Securities Exchange Act of 1934, as ame� 1268771v2 0 0�-3�\ (iii) To a substitute depository designated by and acceptable to the City upon (a) the determination by the Depository that the Bonds shall no longer be eligible for its depository services or (b) a determination by the City that the Depository is no longer able to carry out its functions, provided that any substitute depository must be qualified to act as such, as provided in clause (ii) of this subparagraph, or (iv) To those persons to whom transfer is requested in written transfer instructions in the event that: 8 (a) the Depository shall resign or discontinue its services for the 9 Bonds and the City is unable to locate a substitute depository within two (2) 10 months following the resignation or determination of non-eligibility, or 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 �:3 29 30 31 32 33 34 35 36 37 38 39 40 (b) upon a determination by the City in its sole discretion that (1) the continuation of the book-entry systam described herein, which precludes the issuance of certificates (other than Global Certificates) to any Holder other than the Depository (or its nominee), might adversely affect the interest of the beneficial owners of the Bonds, ar(2) that it is in the best interest of the beneficial owners of the Bonds that they be able to obtain certificated bonds, in either of which events the City shall notify Holders of its determination and of the availability of certificates (the "Replacement Bonds") to Holders requesting the same and the registration, transfer and exchange of such Bonds will be conducted as provided in paragraphs 9B and 12 hereof. In the event of a succession of the Depository as may be authorized by this paragraph, the Bond Registrar upon presentation of G1oUa1 Certificates shall register their transfer to the substitute or successor depository, and the substitute or successor depository shall be treated as the Depository for all purposes and functions under this resolution. The Letter of Representations shall not apply to a substitute or successor depository unless the City and the substitute or successor depository so agree, and a similar agreement may be entered into. 7. Redem�tion. (a) Optional Redemption; Due Date. All Bonds maturing after March 1, 2009, shall be subject to redemption and prepayment at the option of the City on such date and on any day thereafter at a price of par plus accrued interest. Redemption may be in whole or in part of the Bonds subject to prepayment, If redemption is in part, those Bonds remaining unpaid may be prepaid in such order of maturity and in such amount per maturity as the City shall determine; and if only part of the Bonds having a common maturity date are called for prepayment, the Global Certificates may be prepaid in $5,000 increments of principal and, if applicable, the specific Replacement Bonds to be prepaid shall be chosen by lot by the Bond Registrar. Bonds or portions thereof called for redemption shall be due and payable on the redemption date, and interest thereon shall cease to accrue from and after the redemption date. (b) Notation on Global Certificate. Upon a reduction in the aggregate principal amount of a Global Certificate, the Holder may make a notation of such redemption on the panel 12G6773v2 5 o�-��� 1 provided on the Global Certificate stating the amount so redeemed, or may return the Global 2 Certificate to the Bond Registrar in exchange far a new Global Certificate authenticated by the 3 Bond Registrar, in proper principal amount. Such notation, if made by the Holder, shall be for 4 reference only, and may not be relied upon by any other person as being in any way 5 determinative of the principal amount of such Global Certificate outstanding, unless the Bond 6 Registrar has signed the appropriate column of the panel. 7 (c) Selection of Replacement Bonds. To effect a partial redemption of Replacement 8 Bonds having a common maturity date, the Bond Registrar prior to giving notice of redemption 9 shall assign to each Replacement Bond having a common maturity date a distinctive number for 10 each $5,000 of the principal amount of such Replacement Bond. The Bond Registrar shall then 11 select by lot, using such method of selection as it shall deem proper in its discretion, from the 12 numbers so assigned to such Replacement Bonds, as many numbers as, at $5,000 for each 13 number, shall equal the principal amount of such Replacement Bonds to be redeemed. The 14 Replacement Bonds to be redeemed shall be the Replacement Bonds to which were assigned 15 numbers so selected; provided, however, that only so much of the principal amount of each such 16 Replacement Bond of a denomination of more than $5,000 shall be redeemed as shall equal 17 $5,000 for each number assigned to it and so selected. 18 19 20 21 22 23 24 25 26 27 (d) Partial Redemntion of Replacement Bonds. If a Replacement Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the City or Bond Registrar so requires, a written instrument of transfer in form satisfactory to the City and Bond Registrar duly executed by the Holder thereof or his, her or its attorney duly authorized in writing) and the City shall execute (if necessary) and the Bond Registrar shall authenticate and deliver to the Holder of such Replacement Bond, without service charge, a new Replacement Bond or Bonds of the same series having the same stated maturity and interest rate and of any authorized denomination or denominations, as requested by such Holder, in aggegate principal amount equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered. 28 (e) Request for Redemntion. The Bond Registrar shall call Bonds for redemption and 29 payment as herein provided upon receipt by the Bond Registrar at least forty-five (45) days prior 30 to the redemption date of a request of the City, in written form if the Bond Registraz is other than 31 a City officer. Such request shall specify the principal amount of Bonds to be called for 32 redemption and the redemption date. 33 34 35 36 37 38 39 ,� (� Notice. Mailed notice of redemption shall be given to the paying agent (if other than a City officer) and to each affected Holder. If and when the City shall call any of the Bonds for redemption and payment prior to the stated maturity thereof, the Bond Registrar shall give written notice in the name of the City of its intention to redeem and pay such Bonds at the office of the Bond Registrar. Notice of redemption shall be given by first class mail, postage prepaid, mailed not less than thirty (30) days prior to the redemption date, to each Holder of Bonds to be redeemed, at the address appearing in the Bond Register. All notices of redemption shall state: (i) The redemption date; 41 (ii) The redemption price; 1268773v2 p�-�\\ 1 (iii) If ]ess than all outstanding Bonds are to be redeemed, the identification 2 (and, in the case of partial redemption, the respective principal amounts) of the Bonds to 3 be redeemed; 4 (iv) That on the redemption date, the redemption price will become due and 5 payable upon each such Bond, and that interest thereon shall cease to accrue from and 6 after said date; and (v) The place where such Bonds are to be surrendered for payment of the redemption price (which shall be the office of the Bond Registrar). 9 (g) Notice to Depositorv. Notices to The Depository Trust Company or its nominee 10 shall contain the CUSIP numbers of the Bonds. If there are any Holders of the Bonds other than 11 the Depository or its nominee, the Bond Registrar shall use its best efforts to deliver any such 12 notice to the Depository on the business day next preceding the date of mailing of such notice to 13 all other Holders. 14 8. Bond Re is� trar. U. S. Bank Trust National Association, in Saint Paul, 15 Minnesota, is appointed to act as bond registrar and transfer agent with respect to the Bonds (the 16 "Bond Registrar"), and shall do so unless and until a successor Bond Registrar is duly appointed, 17 all pursuant to any contract the City and Bond Registrar shall execute which is consistent 18 herewith. A successor Bond Registrar shall be an officer of the City or a bank or trust company 19 eligible for designation as bond registrar pursuant to Minnesota Statutes, Chapter 475, and may 20 be appointed pursuant to any contract the City and such successor Bond Registrar shall execute 21 which is consistent herewith. The Bond Registrar shall also serve as paying agent unless and 22 until a successor paying agent is duly appointed. Principal and interest on the Bonds shall be 23 paid to the Holders (or record holders) of the Bonds in the manner set forth in the forms of Bond 24 and paragraph 14 of this resolution. 25 9. Forms of Bond The Bonds shall be in the form of Global Certificates 26 unless and until Replacement Bonds are made available as provided in paragraph 6. Each form 27 of bond may contain such additional or different terms and provisions as to the form of payment, 28 record date, notices and other matters as are consistent with the Letter of Representations and 29 approved by the City Attorney. 30 A. Global Certificates. The Global Certificates, together with the Certificate of 31 Registration, the Register of Partial Payments, the form of Assignment and the registration 32 information thereon, shall be in substantially the following form and may be typewritten rather 33 than printed: 12G8773v2 O�-'a�♦ � $ GENERAL OBLIGATION CAPITAL IMPROVEMENT BOND, SERIES 2001A INTEREST RATE REGISTERED OWNER: UNITED STATES OF AMERICA STATE OF MINNESOTA RAMSEY COUNTY CITY OF SAINT PAUL MATURITY DATE DATE OF ORIGINAL ISSL7E CUSIP March 1, _ 10 PRINCIPAL AMOLJNT: 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 DOLLARS KNOW ALL PERSONS BY THESE PRESENTS that the City of Saint Paul, Ramsey County, Minnesota (the "Issuer" or "City"), certifies that it is indebted and for value received promises to pay to the registered owner specified above ar on the certificate of registration below, or registered assigns, in the manner hereinafter set forth, the principal amount specified above, on the maturity date specified above, unless called for earlier redemption, and to pay interest thereon semiannually on March 1 and September 1 of each year (each, an "Interest Payment Date"), commencing September 1, 2001, at the rate per annum specified above (calculated on the basis of a 360-day year of twelve 30-day months) until the principal sum is paid or has been provided for. This Bond will bear interest from the most recent Interest Payment Date to which interest has been paid or, if no interest has been paid, from the date of original issue hereof. The principal of and premiwn, if any, on this Bond are payable in same- day funds by 2:30 p.m., Eastern time, upon presentation and surrender hereof at the principal office of in , Minnesota (the "Bond Registrar"), acting as paying agent, or any successor paying agent duly appointed by the Issuer; provided, however, that upon a partial redemption of this Bond which results in the stated amount hereof being reduced, the Holder may in its discretion be paid without presentation of this Bond, which payment shall be received no later than 2:30 p.m., Eastern time, and may make a notation on the panel provided herein of such redemption, stating the amount so redeemed, ar may return the Bond to the Bond Registrar in exchange for a new Bond in the proper principal amount. Such notation, if made by the Holder, shall be for reference only, and may not be relied upon by any other person as being in any way determinative of the principal amount of this Bond outstanding, unless the Bond Registrar has signed the appropriate column of the panel. Interest on this Bond will be paid on each Interest Payment Date in same-day funds by 230 p.m., Eastern time, to the person in whose name this Bond is registered (the "Holder" or "Bondholder") on the registration books of the Issuer maintained by the Bond Registrar and at the address appearing thereon at the close of business on the fifteenth day of the calendar month preceding such Interest Payment April 1, 2001 1268773v2 0�-7�e 1 Date (the "Regular Record Date"). Interest payments shall be received by the Holder no later 2 than 2:30 p.m., Eastern time; and principal and premium payments shall be received by the 3 Holder no later than 2:30 p.m., Eastern time, if the Bond is surrendered for payrnent enough in 4 advance to permit payment to be made by such time. Any interest not so timely paid shall cease 5 to be payable to the person who is the Holder hereof as of the Regular Record Date, and shall be 6 payable to the person who is the Holder hereof at the close of business on a date (the "Special 7 Record Date") fixed by the Bond Registrar whenever money becomes available for payment of 8 the defaulted interest. Notice of the Special Record Date shall be given to Bondholders not less 9 than ten days prior to the Special Record Date. The principal of and premium, if any, and 10 interest on this Bond are payable in lawful money of the United States of America. 11 Date of Pavment Not Business Dav. If the date for payment of the principal of, 12 premium, if any, or interest on this Bond shall be a Saturday, Sunday, legal holiday or a day on 13 which banking institutions in the City of New York, New York, or the city where the principal 14 office of the Bond Registrar is located are authorized by law or executive order to close, then the 15 date for such payment shall be the next succeeding day which is not a Saturday, Sunday, legal 16 holiday or a day on which such banking institutions are authorized to close, and payment on such 17 date shall have the same force and effect as if made on the nominal date of payment. 18 Redemption. All Bonds ofthis issue (the "Bonds") maturing after March 1, 2009, 19 are subject to redemption and prepayment at the option of the Issuer on such date and on any day 20 thereafter at a price of par plus accrued interest. Redemption may be in whole or in part of the 21 Bonds subj ect to prepayment. If redemption is in part, those Bonds remaining unpaid may be 22 prepaid in such order of maturity and in such amount per maturity as the City shall determine; 23 and if only part of the Bonds having a common maturity date are called for prepayment, this 24 Bond may be prepaid in $5,000 increments of principal. Bonds or portions thereof called for 25 redemption shall be due and payable on the redemption date, and interest thereon shall cease to 26 accrue from and after the redemption date. 27 Notice of Redemption. Mailed notice of redemption shall be given to the paying 28 agent (if other than a City officer) and to each affected Holder of the Bonds. In the event any of 29 the Bonds are called for redemption, written notice thereof will be given by first class mail 30 mailed not less than thirty (30) days prior to the redemption date to each Holder of Bonds to be 31 redeemed. In connection with any such notice, the "CUSII"' numbers assigned to the Bonds 32 shall be used. 33 Renlacement or Notation of Bonds after Partiai Redemption. Upon a partial 34 redemption of this Bond which results in the stated amount hereof being reduced, the Holder 35 may in its discretion make a notation on the panel provided herein of such redemption, stating 36 the amount so redeemed. Such notation, if made by the Holder, shall be for reference only, and 37 may not be relied upon by any other person as being in any way determinative of the principal 38 amount of the Bond outstanding, unless the Bond Registrar has signed the appropriate column of 39 the panel. Otherwise, the Holder may surrender this Bond to the Bond Registrar (with, if the 40 Issuer or Bond Registrar so requires, a written instrument of transfer in form satisfactory to the 41 Issuer and Bond Registrar duly executed by the Holder thereof or his, her or its attorney duly 42 authorized in writing) and the Issuer shall execute (if necessary) and the Bond Registrar shall 43 authenticate and deliver to the Holder of such Bond, without service charge, a new Bond of the 9 1268773v2 o►-��� 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 same series having the same stated maturity and interest rate and of the authorized denomination in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered. Issuance; Purpose; General Obligation. This Bond is one of an issue in the total principal amount of $19,000,000, all of like date of original issue and tenor, except as to number, maturity, interest rate, denomination, and redemption privilege, which Bond has been issued pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including particularly Laws of Minnesota for 1971, Chapter 773, as amended, and the Charter of the Issuer, and pursuant to a resolution adopted by the City Council of the Issuer on March 28, 2001 (the "Resolution"), for the purpose of providing money to finance the acquisition, construction and repair of various capital improvements in the City. This Bond is payable out of the General Debt Service Fund of the Issuer. This Bond constitutes a general obligation of the Issuer, and to provide moneys for the prompt and full payment of its principal, premium, if any, and interest when the same become due, the fuli faith and credit and taxing powers of the Issuer have been and are hereby irrevocably pledged. Denominations; Exchange; Resolution. The Bonds are issuable originally only as Global Certificates in the denomination of the entire principal amount of the issue maturing on a single date, or, if a portion of said principal is prepaid, said principal amount less the prepayment. Global Certificates are not exchangeable for fully registered bonds of smaller denominations except to evidence a partial prepayment or in exchange for Replacement Bonds if then available. Replacement Bonds, if made available as provided below, are issuabie solely as fully registered bonds in the denominations of $5,000 and integral multiples thereof of a single maturity and are exchangeable for fully registered Bonds of other authorized denominations in equal aggregate principal amounts at the principal office of the Bond Registrar, but only in the manner and subject to the limitations provided in the Resolution. Reference is hereby made to the Resolution for a description of the rights and duties of the Bond Registrar. Copies of the Resolution are on file in the principal office of the Bond Registrar. that: Reolacement Bonds. Replacement Bonds may be issued by the Issuer in the event 30 (a) the Depository shall resign or discontinue its services for the Bonds, and only 31 if the Issuer is unable to locate a substitute depository within two (2) months following 32 the resignation or determination of non-eligibility, ar 33 (b) upon a determination by the Issuer in its sole discretion that (1) the 34 continuation of the book-entry system described in the Resolution, which precludes the 35 issuance of certificates (other than Global Certificates) to any Holder other than the 36 Depository (or its nominee), might adversely affect the interest of the beneficial owners 37 of the Bonds, or (2) that it is in the best interest of the beneficial owners of the Bonds that 38 they be able to obtain certificated bonds. 39 Transfer. This Bond shall be registered in the name of the payee on the books of 40 the Issuer by presenting this Bond for registration to the Bond Registrar, who will endorse his, 41 her or its name and note the date of registration opposite the name of the payee in the certificate 10 12G8773v2 o� _� �� 1 of registration attached hereto. Thereafter this Bond may be transferred by delivery with an 2 assignment duly executed by the Holder or his, her or its legal representatives, and the Issuer and 3 Bond Registrar may treat the Holder as the person exclusively entitled to exercise all the rights 4 and powers of an owner until this Bond is presented with such assignment for registration of 5 transfer, accompanied by assurance of the nature provided by law that the assignment is genuine 6 and effective, and until such transfer is registered on said books and noted hereon by the Bond 7 Registrar, all subject to the terms and conditions provided in the Resolution and to reasonable 8 regulations of the Issuer contained in any agreement with, or notice to, the Bond Registrar. 9 Transfer of this Bond may, at the direction and expense of the Issuer, be subject to certain other 10 restrictions if required to qualify this Bond as being "in registered form" within the meaning of 11 Section 149(a) of the federal Internal Revenue Code of 1986, as amended. 12 Fees upon Transfer or Loss. The Bond Registrar may require payment of a sum 13 sufficient to cover any tax or other governmental charge payable in connection with the transfer 14 or exchange of this Bond and any legal or unusual costs regarding transfers and lost Bonds. 15 Treatment of ReQistered Owner. The Issuer and Bond Registrar may treat the 16 person in whose name this Bond is registered as the owner hereof for the purpose of receiving 17 payment as herein provided (except as otherwise provided with respect to the Record Date) and 18 for all other purposes, whether or not this Bond shall be overdue, and neither the Issuer nor the 19 Bond Registrar shall be affected by notice to the contrary. 20 Authentication. This Bond shall not be valid or become obligatory for any 21 purpose or be entitled to any security unless the Certificate of Authentication hereon shall have 22 been executed by the Bond Registrar. 23 Not Qualified Tax-Exem�t Obli atg ions. The Bonds haue not been designated by 24 the Issuer as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the federal 25 Internal Revenue Code of 1986, as amended. The Bonds do not qualify for such designation. 26 IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things 27 required by the Constitution and laws of the State of Minnesota and the Charter of the Issuer to 28 be done, to happen and to be performed, precedent to and in the issuance of this Bond, have been 29 done, have happened and have been performed, in regular and due form, time and manner as 30 required by law, and that this Bond, together with all other debts of the Issuer outstanding on the 31 date of original issue hereof and on the date of its issuance and delivery to the original purchaser, 32 does not exceed any constitutional or statutory or Charter limitation of indebtedness. 33 IN WITNESS WHEREOF, the City of Saint Paul, Ramsey County, Minnesota, by 34 its City Council has caused this Bond to be executed on its behalf by the photocopied facsimile 35 signature of its Mayor, attested by the photocopied facsimile signature of its Clerk, and 36 countersigned by the photocopied facsimile signature of its Director, Office of Financial 37 Services, the official seal having been omitted as permitted by law. 11 12G8773v2 ��-a�� 1 Date of Registration: 2 3 4 5 BOND REGISTRAR'S 6 CERTIFICATE OF 7 AUTHENTICATION 8 This Bond is one of the 9 Bonds described in the 10 Resolution mentioned 11 within. 12 13 14 15 16 Bond Registrar 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 By Authorized Signature Registrable by: Payable at: CITY OF SAINT PAUL, RAMSEY COUNTY, MINNESOTA Mayor Attest: City Clerk Countersigned: Director, Office of Financial Services General Obligation Capital Improvement Bond, Series 2001A, No. R- 12G8773v2 12 O � -'3 �� CERTIFICATB OF REGISTRATION The transfer of ownership of the principal amount of the attached Bond may be made only by the registered owner or his, her or its ]egal representative last noted below. DATE OF REGISTRATTON SIGNATiJRE OF BOND REGISTRAR 13 12G8773v2 o� -��� REGISTER OF PARTIAL PAYMENTS 3 The principal amount of the attached Bond has been prepaid on the dates and in the amounts 4 noted below: Date Amount Bondholder Bond Re ig strar If a notation is made on this register, such notation has the effect stated in the attached Bond. Partial payments do not require the presentation of the attached Bond to the Bond Registrar, and a Holder could fail to note the partial payment here. 14 1268773v2 o�-��� 1 2 3 4 5 6 7 8 9 10 11 12 13 ABBREVIATIONS The following abbreviations, when used in the inscription on the face of this Bond, shall be construed as though they were written out in full according to applicable laws or regulations: TEN COM - as tenants in common TEN ENT - as tenants by the entireties JT TEN - as joint tenants with right of survivorship and not as tenants in common UTMA - as custodian for (Cust) underthe (Minor) Uniform Transfers to Minors Act (State) Additional abbreviaYions may also be used though not in the above list. 15 12G8773v2 ol-��� ASSIGNMENT 2 For value received, the undersigned hereby sells, assigns and transfers unto 3 the attached 4 Bond and does hereby irrevocably constitute and appoint 5 attorney to transfer the Bond on the books kept for the 6 regislration thereof, with full power of substitution in the premises. 7 8 Notice: The assignor's signature to this assignment must 9 correspond with the name as it appears upon the face of 10 the attached Bond in every particular, without alteration 11 or any change whatever. 12 Signature Guaranteed: 13 14 Signatttre(s) musl be guaranteed by a national bank or trust company or by a brokerage firm 15 having � membership in oiie of the major stock exchanges or any other "Eligible Guarantor 16 InsCit�ition" as defined iii 17 CFR 240.17Ad-15(a)(2). 17 The Bond Registrar will not effect transfer of this Bond unless the information 18 coneeruing the Yransferee requested below is provided. 19 Name 1nd Address: � 21 22 23 (Include information for all joint owners ifthe Bond is held by j oint account.) 16 12G8773v2 .. � o l-'��� ASSIGNMENT 2 3 4 5 6 21 22 23 For value received, the undersigned hereby sells, assigns and transfers unto the attached Bond a d does hereby irrevocably constitute and appoint attorney to transfer the Bond on the books kept for the registratio thereof, with full power of substitution in the premises. 7 8 9 10 il 12 Signature Guaranteed: 13 Notice: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the attached Bond in every particular, without alteration , or any change whatever. 14 Signature(s) must be guaranteed by" , national bank or trust company or by a brokerage firm 15 having a membership in one of the m�`a}pr stock exchanges or any other "Eligible Guarantor 16 Institution" as defined in 17 CFR 240.1�' d-15(a)(2). l 7 The Bond Registrar will not �£€ect transfer of this Bond unless ihe information I8 concerning the transferee requested below is pYy�vided. 19 Name and Address: 20 (Include information for all by joint account.) 1268773v2 E� owners if the Bond is held o� -3�� 1 B. Replacement Bonds. If the City has notified Holders that Replacement Bonds 2 have been made available as provided in paragraph 6, then for every Bond thereafter transferred 3 or exchanged (including an exchange to reflect the partial prepayment of a Global Certificate not 4 previously exchanged for Replacement Bonds) the Bond Registrar shall deliver a certificate in 5 the form of the Replacement Bond rather than the Global Certificate, but the Holder of a Global 6 Certificate shall not otherwise be required to exchange the Global Certificate far one or more 7 Replacement Bonds since the City recognizes that some beneficial owners may prefer the 8 convenience of the Depository's registered ownership of the Bonds even though the entire issue 9 is no longer required to be in global book-entry form. The Replacement Bonds, together with the 10 Bond Registrar's Certificate of Authentication, the form of Assignment and the registration 11 information thereon, shall be in substantially the foliowing form: 17 1268773v2 o� .3�� LTNITED STATES OF AMERICA 2 STATE OF MINNESOTA 3 RAMSEY COUNTY 4 CITY OF SAINT PAUL � 6 7 C] GENERAL OBLIGATION CAPITAL IMPROVEMENT BOND, SERIES 2001A INTEREST MATURITY RATE DATE REGISTERED OWNER: 10 PRINCIPAL AMOUNT: 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 DOLLARS $ CUSIP KNOW ALL PERSONS BY THESE PRESENTS that the City of Saint Paul, Ramsey County, Minnesota (the "Issuer" or "City"), certifies that it is indebted and for value received promises to pay to the registered owner specified above, or registered assigns, in the manner hereinafter set forth, the principal amount specified above, on the maturity date specified above, unless called for earlier redemption, and to pay interest thereon semiannually on March 1 and September 1 of each year (each, an "Interest Payment Date"), commencing September 1, 2001, at the rate per annum specified above (calculated on the basis of a 360-day year of twelve 30-day months) until the principal sum is paid or has been provided for. This Bond will bear interest from the most recent Interest Payment Date to which interest has been paid or, if no interest has been paid, from the date of original issue hereo£ The principal of and premium, if any, on this Bond are payable upon presentation and surrender hereof at the principal office of ,in , (the "Bond Registrar"), acting as paying agent, or any successar paying agent duly appointed by the Issuer. Interest on this Bond will be paid on each Interest Payment Date by check or draft mailed to the person in whose name this Bond is registered (the "Holder" or "Bondholder") on the registration books of the Issuer maintained by the Bond Registrar and at the address appearing thereon at the close of business on the fifteenth day of the calendar month preceding such Interest Payment Date (the "Regular Recard Date"). Any inYerest not so timely paid shall cease to be payable to the person who is the Holder hereof as of the Regular Record Date, and shall be payable to the person who is the Holder hereof at the close ofbusiness on a date (the "Special Record Date") fixed by the Bond Registrar whenever money becomes available for payment of the defaulted interest. Notice of the Special Record Date shall be given to Bondholders not less than ten days prior to the Special Record Date. The principal of and premium, if any, and interest on this Bond are payable in lawful money of the United States of America. 12G8773v2 DATE OF ORIGINAL ISSUE April 1, 2001 IE:� o� �� �� 1 REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF 2 THIS BOND SET FOKTH ON THE REVERSE HEREOF, WHICH PROVISIONS SHALL 3 FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH HERE. 4 IT IS HEREBY CERTIFIED AND I2ECITED that all acts, conditions and things 5 required by the Constitution and laws of the State of Minnesota and the Charter of the Issuer to 6 be done, to happen and to be performed, precedent to and in the issuance of this Bond, ha�e been 7 done, have happened and have been performed, in regular and due form, time and manner as 8 required by law, and that this Bond, together with all other debts of the Issuer outstanding on the 9 date of original issue hereof and on the date of its issuance and delivery to the original purchaser, 10 does not exceed any constitutional or statutory or Charter limitation of indebtedness. 11 IN WITNESS WHEREOF, the City of Saint Paul, Ramsey County, Minnesota, by 12 its City Council has caused this Bond to be executed on its behalf by the original or facsimile 13 signature of its Mayor, attested by the original or facsimile signature of its Clerk, and 14 countersigned by the original or facsimile signature of its Director, Office of Financial Services, 15 the official seal having been omitted as permitted by law. 19 12G8773v2 t�\-'J �\ 1 Date of Registration: 2 � 5 BOND REGISTRAR'S 6 CERTIFICATE OF 7 AUTHENTICATION 8 This Bond is one of the 9 Bonds described in the 10 Resolution rnentioned 11 within. 12 13 14 15 16 Bond Registrar 17 18 19 20 21 22 23 Authorized Signature 12G8773v2 Registrable by: Payable at: CITY OF SAINT PAUL, RAMSEY COUNTY, MINNESOTA Mayor Attest: City Clerk Countersigned: Director, Office of Financial Services 20 O1-'J �\ ON REVERSE OF BOND Date of Payment Not Business Day. If the date for payment of the principal of, premium, if any, or interest on this Bond shall be a Saturday, Sunday, legal holiday or a day on which banking institutions in the City of New Yark, New York, or the city where the principal office of the Bond Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not a Saturday, Sunday, legal holiday or a day on which such banking institutions are authorized to close, and payment on such date shall have the same force and effect as ifmade on the nominal date ofpayment. 9 Redemption. All Bonds ofthis issue (the "Bonds") maturing after March 1, 2009, 10 are subject to redemption and prepayment at the option of the Issuer on such date and on any day 11 thereafter at a price of par plus accrued interest. Redemption may be in whole or in part of the 12 Bonds subject to prepayment. If redemption is in part, those Bonds remaining unpaid may be 13 prepaid in such order of maturity and in such amount per maturity as the City shall determine; 14 and if only part of the Bonds having a common maturity date are called for prepayment, the 15 specifac Bonds to be prepaid shall be chosen by lot by the Bond Registrar. Bonds or portions 16 thereof called for redemption shall be due and payable on the redemption date, and interest 17 thereon shall cease to accrue from and after the redemption date. 18 Notice of Redemption. Mailed notice of redemption shall be given to the paying 19 agent (if other than a City officer) and to each affected Holder of the Bonds. In the event any of 20 the Bonds are called for redemption, written notice thereof will be given by first class mail 21 mailed not less than thiriy (30) days prior to the redemption date to each Holder of Bonds to be 22 redeemed. In connection with any such notice, the "CU5Il"' numbers assigned to the Bonds 23 shall be used. 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 Selection o£ Bonds for Redem�tion. To effect a partial redemption of Bonds having a common maturity date, the Bond Registrar shall assign to each Bond having a common maturity date a distinctive number for each $5,000 of the principal amount of such Bond. The Bond Registrar shall then select by lot, using such method of selection as it shall deem proper in its discretion, from the numbers assigned to the Bonds, as many numbers as, at $5,000 for each mimber, shall equal the principa] amount of such Bonds to be redeemed. The Bonds to be redeemed shall be the Bonds to which were assigned numbers so selected; provided, however, that only so much of the principal amount of such Bond of a denomination of more than $5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. If a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the Issuer or Bond Registrar so requires, a written instrument of transfer in form satisfactory to the Issuer and Bond Registrar duly executed by the Holder thereof or his, her or its attorney duly authorized in writing) and the Issuer shall execute (if necessary) and the Bond Registrar shall authenticate and deliver to the Holder of such Bond, without service charge, a new Bond or Bonds of the same series having the same stated maturity and interest rate and of any authorized denomination or denominations, as requested by such Holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered. 12G8773v2 21 o�-��� 1 Issuance; Purpose; General Obli ag tion. This Bond is one of an issue in the total 2 principal amount of $19,000,000, all of like date of original issue and tenor, except as to number, 3 maturity, interest rate, denomination, and redemption privilege, which Bond has been issued 4 pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, 5 including particularly Laws of Minnesota for 1971, Chapter 773, as amended, and the Charter of 6 the Issuer, and pursuant to a resolution adopted by the City Council of the Issuer on March 28, 7 2001 (the "Resolution"), for the purpose of providing money to finance the acquisition, 8 construction and repair of various capital improvements in the City. This Bond is payable out of 9 the General Debt Service Fund of the Issuer. This Bond constitutes a general obligation of the 10 Issuer, and to provide moneys for the prompt and full payment of its principal, premium, if any, 11 and interest when the same become due, the full faith and credit and taacing powers of the Issuer 12 have been and are hereby irrevocably pledged. 13 Denominations; Exchan�e; Resolution. The Bonds are issuable solely as fully 14 registered bonds in the denominations of $5,000 and integral multiples thereof of a single 15 maturity and are exchangeable far fully registered Bonds of other authorized denominations in 16 equal aggregate principal amounts at the principal office of the Bond Registrar, but only in the 17 manner and subject to the limitations provided in the Resolution. Reference is hereby made to 18 the Resolution for a description of the rights and duties of the Bond Registrar. Copies of the 19 Resolution are on file in the principal office of the Bond Registrar. 20 Transfer. This Bond is transferable by the Holder in person or by his, her or its 21 attorney duly authorized in writing at the principal office of the Bond Registrar upon 22 presentation and surrender hereof to the Bond Registrar, all subject to the terms and conditions 23 provided in the Resolution and to reasonable regulations of the Issuer contained in any 24 agreement with, or notice to, the Bond Registrar. Thereupon the Issuer shall execute and the 25 Bond Registrar shall authenticate and deliver, in exchange for this Bond, one or more new fully 26 registered Bonds in the name of the transferee (but not registered in blank or to "bearer" or 27 similar designation), of an authorized denomination or denominations, in aggregate principal 28 amount equal to the principal amount of this Bond, of the same maturity and bearing interest at 29 the same rate. 30 Fees unon Transfer or Loss. The Bond Registrar may require payment of a sum 31 sufficienY to cover any tax or other governmental charge payable in connection with the transfer 32 or exchange of this Bond and any legal or unusual costs regarding transfers and lost Bonds. 33 Treatment of ReQistered Owner. The Issuer and Bond Registrar may treat the 34 person in whose name this Bond is registered as the owner hereof for the purpose of receiving 35 payment as herein provided (except as otherwise provided on the reverse side hereof with respect 36 to the Record Date) and for all other purposes, whether or not this Bond shall be overdue, and 37 neither the Issuer nor the Bond Registrar shall be affected by notice to the contrary. 38 Authentication. This Bond shall not be valid or become obligatory for any 39 purpose or be entitled to any security unless the Certificate of Authentication hereon shall have 40 been executed by the Bond Registrar. 22 1268773v2 D\-7\\ 1 Not Oualified Tax-Exempt Obli atg ions. The Bonds have not been designated by 2 the Issuer 1s "qualified tax-exempt obligations" far purposes of Section 265(b)(3) of the federal 3 Internal Revenue Code of 1986, as amended. The Bonds do not qualify for such designation. 23 12G8773v2 O\ -��� 1 ABBREVIATIONS 2 The following abbreviations, when used in the inscription on the face of this 3 Bond, shall be construed as though they were written out in full according to applicable laws or 4 regulations: 5 6 7 8 9 10 11 12 13 14 15 TEN COM - as tenants in common TEN ENT - as tenants by the entireties JT TEN - as joint tenants with right of survivorship and not as tenants in common UTMA - as custodian for (Cust) miderthe 12G8773v2 (Minor) Uniform Transfers to Minors Act (State) Additionai abbreviations may also be used though not in the above list. 24 D\ �� ASSIGNMENT 2 For value received, the undersigned hereby sells, assigns and transfers unto 3 the within 4 Bond 1nd does hereby irrevocably constitute and appoint 5 attomey to transfer the Bond on the books kept for the 6 regislraYion thereo£, with full power of substitution in the premises. 7 Dated: 8 Notice: The assignor's signature to this assignment must 9 correspond with the name as it appears upon the face of 10 the within Bond in every particular, without alteration or I 1 any change whatever. 12 SignaYUre Guarat�teed; iic3 14 Signalure(s) musl be guaranteed by a national bank ar trust company or by a brokerage firm 15 having a membership in one of the major stock exchanges ar any other "Eligible Guarantor 16 Institution" as defined in 17 CFR 240.17Ad-15(a)(2). 17 The Bond Registrar wi11 not effect transfer of this Bond unless the information 18 concerning the transferee requested below is provided. 19 Name and Address: 20 21 22 23 24 (Include informaYion for all joint owners if the Bond is held byjoint account.) 25 12G877Jv2 o�-��� 1 2 4 5 6 7 8 9 10 11 12 13 ASSIGNMENT � For value received, the undersigned hereby sells, assigns and transfers unto the attached Boi1d and does hereby irrevocably constitute and appoint attomey to transfer the Bond on the books kept for the registration thereof, with full power of substitution in the premises. Notice: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the attached Bond in every particular, without alteration or any change whatever. Signature Guaranteedi, 14 Signature(s) must be guaranteed by a national banlc or trust company or by a brokerage firm 15 having a membership in one of the major stock exchanges or any other "Eligible Guarantor 16 Institution" as defined in 17 CFR 240.17Ad-15(a)(2). 17 18 19 20 21 22 23 24 The Bond Registrar will not effect transfer of this Bond unless the information concerning the transferee requested befow is provided. Name and Address: (Include information for all joint owners if the Bond is held by joint account.) 12G6773v2 25 C� \ —�\� L� 10 11 12 13 14 15 16 17 18 19 20 21 22 23 10. Execution. The Bonds shall be executed on behalf of the City by the signatures of its Mayor, Clerk and Director, Office of Financia] Services, each with the effect noted on the forms of the Bonds, and be sealed with the seal of the City; provided, however, that the seal of the City may be a printed or photocopied facsimile; and provided further that any of such signatures may be printed or photocopied facsimiles and the corporate seal may be omitted on the Bonds as permitted by law. In the event of disability or resignation or other absence of any such officer, the Bonds may be signed by the manual or facsimile signature of that officer who may act on bel�alf of such absent or disabled officer. In case any such officer whose signature or facsimile of whose signature shall appear on the Bonds shall cease to be such officer before the delivery of the Bonds, such signature ar facsimile shall nevertheless be valid and sufficient for all purposes, the same as if he or she had remained in office until delivery. 11. Authentication; Date of Registration. No Bond shall be valid or obligatory for any purpose or be entitled to any security or benefit under this resolution unless a Certificate of Authentication on such Bond, substantially in the form hereinabove set forth, shall have been duly executed by an authorized representative of the Bond Registrar. Certificates of Authentication on different Bonds need not be signed by the same person. The Bond Registrar sh111 authenticate the signatures of officers of the City on each Bond by execution of the Certificate of Authentication on the Bond and by inserting as the date of registration in the space provided the date on which the Bond is authenticated. For purposes of delivering the original Global Certificates to the Purchaser, the Bond Registrar shall insert as the date of registration the date of original issue, which date is April 1, 2001. The Certificate of Authentication so executed on each Bond shall be conclusive evidence that it has been authenticated and delivered under this resolution. 24 12. Reeistration; Transfer; ExchanQe. The City will cause to be kept at the 25 principal office of the Bond Registrar a bond register in which, subject to such reasonable 26 regulations as the Bond Registrar may prescribe, the Bond Registrar shall provide for the 27 registration of Bonds and the registration of transfers of Bonds entitled to be registered or 28 transferred as herein provided. 29 30 31 32 33 34 35 36 37 38 39 40 41 42 A Global Certificate shall be registered in the name of the payee on the books of the Bond Registrar by presenting the Global Certificate for registration to the Bond Registrar, who will endorse his or her name and note the date of registration opposite the name of the payee in the certificate of registration on the Global Certificate. Thereafter a Global Certi£cate may be transferred by delivery with an assignment duly executed by the Holder or his, her or its legal representative, and the City and Bond Registrar may treat the Holder as the person exclusively entitied to exercise all the rights and powers of an owner until a Global Certificate is presented with such assignment for registration of transfer, accompanied by assurance of the nature provided by law that the assignment is genuine and effective, and until such transfer is registered on said books and noted thereon by the Bond Registrar, all subject to the terms and conditions provided in tl�is resolution and to reasonable regulations of the City contained in any agreement with, or notice to, the Bond Registrar. Transfer of a Global Certificate may, at the direction and expense of the City, be subject to other restrictions if required to qualify the Global Certificates as being "in registered 12G8773v2 26 o�-a�� 1 form" within the meaning of Section 149(a) of the federal Internal Revenue Code of 1986, as 2 amended. 3 If a Global Certificate is to be exchanged for one ar more Replacement Bonds, all 4 of the principal amount of the Global Certificate shall be so exchanged. 5 Upon surrender for transfer of any Replacement Bond at the principal office of 6 the Bond Registrar, the City shall execute (if necessary), and the Bond Registrar shall 7 authenticate, insert the date of registration (as provided in paragraph 11) of, and deliver, in the 8 name of the designated transferee or transferees, one or more new Replacement Bonds of any 9 authorized denomination or denominations of a like aggregate principal amount, having the same 10 stated maturity and interest rate, as requested by the transferor; provided, however, that no bond 11 may be registered in blank or in the name of "bearer" ar similar designation. 12 At the option of the Holder of a Replacement Bond, Replacement Bonds may be 13 exchanged far Replacement Bonds of any authorized denomination or denominations of a like 14 aggregate principal amount and stated maturity, upon surrender of the Replacement Bonds to be 15 exchanged at the principal office of the Bond Registrar. Whenever any Replacement Bonds are 16 so surrendered for exchange, the City shall execute (if necessary), and the Bond Registrar shall 17 authenticate, insert the date of registration of, and deliver the Replacement Bonds which the 18 Holder making the exchange is entitled to receive. Global Certificates may not be exchanged for 19 Global Certificates of smaller denominations. 20 All Bonds surrendered upon any exchange or transfer provided for in this 21 resolution shall be promptly cancelled by the Bond Registrar and thereafter disposed of as 22 directed by the City. 23 All Bonds delivered in exchange for or upon transfer of Bonds shall be valid 24 general obligations of the City evidencing the same debt, and entitled to the same benefits under 25 this resolution, as the Bonds surrendered for such exchange or transfer. 26 Every Bond presented or surrendered for transfer or exchange shall be duly 27 endorsed or be accompanied by a written instrument of transfer, in form satisfactory to the Bond 28 Registrar, duly executed by the Holder thereof or his, her or its attorney duly authorized in 29 writing. 30 The Bond Registrar may require payment of a sum sufficient to cover any ta�c or 31 other governmental charge payable in connection with the transfer or exchange of any Bond and 32 any legal or unusual costs regarding transfers and lost Bonds. 33 Transfers shall also be subject to reasonable regulations of the City contained in 34 any agreement with, or notice to, the Bond Registrar, including regulations which permit the 35 Bond Registrar to close its transfer books between record dates and payment dates. 36 13. Ri¢hts Upon Transfer or Exchange. Each Bond delivered upon transfer of 37 or in exchange for or in lieu of any other Bond shall carry all the rights to interest accrued and 38 unpaid, and to accrue, which were carried by such other Bond. 27 12G8773v2 o�-��� 1 14. Interest Pavment; Record Date. Interest on any Global Certificate shall be 2 paid as provided in the first paragraph thereof, and interest on any Replacement Bond shall be 3 paid on each Interest Payment Date by check or draft mailed to the person in whose name the 4 Bond is registered (the "Holder") on the registration books of the City maintained by the Bond 5 Registrar, and in each case at the address appearing thereon at the close of business on the 6 fifteenth (l Sth) day of the calendar month preceding such Interest Payment Date (the "Regular 7 Record Date"). Any such interest not so timely paid shall cease to be payable to the person who 8 is the Holder thereof as of the Regular Record Date, and shall be payable to the person who is the 9 Holder thereof at the close of business on a date (the "Special Record Date") fixed by the Bond 10 Registrar whenever money becomes available for payment of the defaulted interest. Notice of 11 the Special Record Date shall be given by the Bond Registrar to the Holders not less than ten 12 (10) days prior to the Special Record Date. 13 15. Holders: Treatment of Registered Owner; Consent of Holders. 14 A. For the purposes of all actions, consents and other matters affecting Holders of the 15 Bonds, other than payments, redemptions, and purchases, the City may (but shall not be 16 obligated to) treat as the Holder of a Bond the beneficial owner of the Bond instead of the person 17 in whose name the Bond is registered. For that purpose, the City may ascertain the identity of 18 the beneficial owner of the Bond by such means as the Bond Registrar in its sole discretion 19 deems appropriate, including but not limited to a certificate from the person in whose name the 20 Bond is registered identifying such beneficial owner. 21 B. The City and Bond Registrar may treat the person in whose name any Bond is 22 registered as the owner of such Bond for the purpose of receiving payment of principal of and 23 premium, if any, and interest (subject to the payment provisions in paragraph 14 above) on, such 24 Bond and for all other purposes whatsoever whether or not such Bond shall be overdue, and 25 neither the City nor the Bond Registrar shall be affected by notice to the contrazy. 2G C. Any consent, request, direction, approval, objection ar other instrument to be 2? signed and executed by the Holders may be in any number of concurrent writings of similar tenor 28 and must be signed or executed by such Holders in person or by agent appointed in writing. 29 Proof of the execution of any such consent, request, direction, approval, objection or other 30 instrument or of the writing appointing any such agent and of the ownership of Bonds, if made in 31 the following manner, shall be sufficient for any of the purposes of this resolution, and shall be 32 conclusive in favor of the City with regard to any action taken by it under such request or other 33 instrument, namely: 34 (1) The fact and date of the execution by any person of any such writing may 35 be proved by the certificate of any officer in any jurisdiction who by law has power to 36 take acknowledgments within such jurisdiction that the person signing such writing 37 acknowledged befare him or her the execution thereof, ar by an affidavit of any witness 38 to such execution. 39 (2) Subject to the provisions of subpazagraph (A) above, the fact of the 40 ownership by any person of Bonds and the amounts and numbers of such Bonds, and the 41 date of the holding of the same, may be proved by reference to the bond register. 28 1268773v2 o�-��� 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 16. Delivery; Application of Proceeds. The Global Certificates when so prepared and executed shall be delivered by the Director, Office of Financial Services, to the Purchaser upon receipt of the purchase price, and the Purchaser shall not be obliged to see to the proper application thereof. 17. Fund and Account. There is hereby created a special account to be designated the "Capital Improvement Bonds of 2001A Account" (the "AccounY') to be administered and maintained by the City Treasurer as a bookkeeping account separate and apart from all other accounts maintained in the officiai financial records of the City. There has been heretofore created and established the General Debt Service Fund (mimbered 960, herein the "Fund"). The Fund and the Account shall each be maintained in the manner herein specified until all of the Sonds and the interest thereon haue been fully paid. (i) Account. To the Account there shall be credited the proceeds of the sale of the Bonds, less accrued interest received thereon, and less any amount paid for the Bonds in excess of $18,857,500. From the Account there shall be paid all costs and expenses of making the Improvements, including the cost of any construction contracts heretofore let and all other costs incurred and to be incuned of the kind authorized in Minnesota Statutes, Section 475.65 (including interest on the Bonds payable during the construction period); and the moneys in the Account shall be used for no other purpose except as otherwise provided by law; provided that the proceeds of the Bonds may also be used to the extent necessary to pay interest on the Bonds due prior to the anticipated date of commencement of the collection of taxes levied herein; and provided further that if upon completion of the Improvements there shall remain any unexpended balance in the Account, the balance may be transferred by the Council to the fund of any other improvement instituted pursuant to Laws of Minnesota for 1971, Chapter 773, as amended, or used for any other puipose permitted by law, ar transfened to the Fund. All eamings on the Account shall be transferred to the Fund, or may remain in the Account. (ii) Fund. There is hereby pledged and there shall be credited to the Fund, to a special sinking fund account which is hereby created and established therein for the payment of the Bonds: (a) all accrued interest received upon delivery of the Bonds; (b) all funds paid for the Bonds in excess of $18,857,500; (c) any collections of all taxes which are herein levied for the payment of the Bonds and interest thereon as provided in paragraph 1$; (d) all funds remaining in the Account after completion of the Improvements and payrnent of the costs thereof, not so transferred to the account of another improvement or used for any other purpose permitted by law; (e) all inveshnent earnings on moneys held in said special account in the Fund; and (� any and all other moneys which are properly available and are appropriated by the governing body of the City to said special account in the Fund. 41 Said special account created in the Fund shall be used solely to pay the principal and 42 interest and any premiums for redemption of the Bonds and any other bonds of the City 43 heretofore or hereafter issued by the City and made payable from said special account in the 29 1268773v2 o�-��� 10 11 12 l3 14 15 16 17 Fund as provided by law, ar to pay any rebate due to the United States. No portion of the proceeds of the Bonds shall be used directly or indirectly to acquire higher yielding investments or to replace funds which were used directly or indirectly to acquire higher yielding inveshnents, except (1) for a reasonable temporary period until such proceeds are needed for the purpose for which tl�e Bonds were issued, and (2) in addition to the above in an amount not greater than $100,000. To this effect, any proceeds of the Bonds and any sums from time to time held in the Account or said specia] account in the Fund (ar any other City account which will be used to pay principal or interest to become due on the bonds payable therefrom) in excess of amounts which under then-applicable federal arbitrage regulations may be invested without regard as to yield shall not be invested at a yield in excess of the applicable yield restrictions imposed by said arbitrage regulations on such investments after taking into account any applicable "temporary periods" or "minor porlion° made available under the federal arbitrage regulations. In addition, die proceeds of thc Bonds and money in the Account or the Fund shall not be invested in obligalions or deposits issued by, guaranteed by or insured by the United States or any agency or instrwneutaliCy thereof if and to the extent that such investment would cause the Bonds to be "federally guaranleed" within the meaning of Section 149(b) of the federal Internal Revenue Code of 1986, as amended (the "Code"). 18 18. Tax Levv; Covera e� Test. To provide moneys for payment of the 19 priucipal and intex'esf on the Bonds there is hereby levied upon all of the taacable property in the 20 CiYy a direcC amival ad valorem tax which shall be spread upon the tax rolls and collected with 21 and 1s part of other general property taxes in the City for the years and in the amounts as 22 follows: Year of Tax Lev 2000* 2001 2002 2003 2004 2005 2006 2007 2008 2009 Year of Tax Levy 2001* 2002 2003 2004 2005 2006 2007 2008 2009 2010 Amount $2,607,759* 2,611,403 2,596,204 2,578,170 2,567,802 2,548,875 2,527,350 2,507,138 2,487,975 2,469,600 23 " heretofore levied or provided from other available City funds, including premium received 24 u�oiz sale of lhe bonds 25 The tax levies are such that if collected in full they, together with estimated 26 collections of any other revenues herein pledged for the payment of the Bonds, will produce at 27 leasl five percent (5%) in excess of the amount needed to meet when due the principal and 28 interest plyments on the Bonds. The tax levies shall be irrepealable so long as any of the Bonds 29 are outstai�ding and unpaid, provided that the City reserves the righY and power to reduce the 30 12G8773v2 2 4 5 6 10 11 12 13 14 IS 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Di ��i Fund as provided by law, or to pay any rebate due to the United States. No portion of the roceeds of the Bonds shall be used directly or indirectly to acquire higher yielding investments to replace funds which were used directly or indirectly to acquire higher yielding investments, ex ept (1) for a reasonable temporary period until such proceeds are needed for the puipose for whi the Bonds were issued, and (2) in addition to the above in an amount not greater ihan $] 00, 00. To this effect, any proceeds of the Bonds and any sums from time to time held in the Accoun or said special account in the Fund (or any other City account which will be used to pay principal r interest to become due on the bonds payable therefrom) in excess of amounts which under then- plicable federal arbitrage regulations may be invested without regard as to yield shall not be i vested at a yield in excess of the applicable yield restrictions imposed by said arbihage regul ions on such investments after taking into account any applicable "temporary periods" or "min x portion" made available under the federal arbitrage regulations. In addition, the proceeds of the��, o obligations or deposiF� instrumentality therem "federally guaranteed" Code of 1986, as amer and money in the Account or the Fund shall not be invested in issued by, guaranteed by or insured by the United States or any agency or �if and to the extent that such investment would cause the Bonds to be wi�hin the meaning of Section 149(b) of the federal Internal Revenue ied ���he "Code"). 18. Tax Lev'� principal and interest on the Bo City a direct annual ad valorem and as part of other general pro� follows: Year of Tax Levv 2000• 2001 2002 2003 2004 2005 200G 2007 2008 2009 overage Test. To provide moneys for payment of the there is hereby levied upon all of the taxable property in the ; which shall be spread upon the tax rolls and collected with y���axes in the City for the years and in the amounts as ar o f Tax Levv Amount 1• 2004 2005 200G 2007 2008 2009 2010 � heretofore levied or provided from other available City funds $ The tax levies are such that if collected in full they, toge�her with estimated collections of any other revenues herein pledged for the payment of the Bbnds, least five percent (5%) in excess of the amount needed to meet when due tfi�, p interest payments on the Bonds. The tax levies shall be irrepealable so long as are outstanding and unpaid, provided that the City reserves the right and power levies in the manner and to the extent permitted by Minnesota Statutes, Section Subdivision 3. t2van��z 30 will produce at rincipal and any of the Bonds �to reduce the �, ,, r �4 • �l �\_'>�� levies in tl�e manner and to the exlent permitted by Minnesota SYatutes, Section 475.61, Subdivision 3. 3 19. General Obli�ation Pled�e. For the prompt and full payment of the 4 priucipal and interest on the Bonds, as the same respectively become due, the full faith, credit 5 and taxing powers of the City shall be and are hereby in�evocably pledged. If the balance in the 6 Fund (as defined in paragraph 17 hereo fl is ever insufficient to pay all principal and interest then 7 due on the Bonds payable therefrom, the deficiency shall be promptly paid out of any other funds 8 of the City which are available for such purpose, including the general fund of the City, and such 9 other fimds may be reimbursed with or without interest from the Fund when a sufficient balance 10 is available lherein. i l 20. Certificate of Registration. The Director, Office of Financial Services, is 12 hereby directed to file a certified copy of this resolution with the officer of Ramsey County, 13 Minnesota, performing the fimctions of the county auditar (the "County Auditor"), together with 14 such other information as the County Auditor shall require, and to obtain the County Auditor's 15 certificate ihat the Bonds have been entered in the County Auditor's Bond Register, and that the 16 lax levy requi��ed by law has been made. 17 21. Records and Certificates. The officers of the City are hereby authorized 18 and directed to prepare and fiirnish to the Purchaser, and to the attorneys approving the legality 19 of the issttance of the Bouds, certified copies of all proceedings and recards of the City relating 20 to lhe Bonds and to the Gnancial condition and affairs of the City, and such other affidavits, 21 cerlificales and infornlalion as are required to show the facts relating to the legality and 22 marketabilily of the Bonds as the same appear from the books and records under their custody 23 and control or as otherwise lrnown to them, and all such certified copies, certificates and 24 affidavits, including any heretofore furnished, shall be deemed representations ofthe City as to 25 the facls recited therein. 26 22. Ne�ative Covenants as to Use of Proceeds and Imnrovements. The City 27 hereby covenants not to ttse the proceeds of the Bonds or to use the Improvements, or to cause or 28 permit them to be used, or to enter into any deferred payment arrangements for the cost of the 29 Improvements, in such a manner as to cause the Bonds to be "private activity bonds" within the 30 meaning of Sections 103 and 141 through 150 of the Code. The City reasonably expects that no 31 actious will be taken over the term of the Bonds that woutd cause them to be private activity 32 bonds, and lhe average term of the Bonds is not longer than reasonably necessary for the 33 govermnent�l purpose of the issue. The City hereby covenants not to use the proceeds of the 34 Bonds in such a maimer as to cause the Bonds to be "hedge bonds" within the meaning of 35 Section 149(g) of tl�e Code. 36 23. T1x-Exemnt Status of the Bonds; Rebate; Elections. The City shall 37 comply wifh requirements necessary under the Code to establish and maintain the exclusion from 38 gross income under Section 103 of the Code of the interest on the Bonds, including without 39 limitllion requirements relating to teinporary periods far investments, limitations on amounts 40 iuvested at a yield greater than the yield on the Bonds, and the rebate of excess investment 41 earnings to the United States. 31 izvs775�2 d�-�ii other fund�n ay be reimbursed with or without interest from the Fund when a sufficient balance is available t�erein. - 19. General Obligation Pledee. For the prompt and full payment of the nc�pal and interest on the Bonds, as the same respectively become due, the full faith, credit an taxing powers of the City shall be and are hereby irrevocably pledged. If the balance in the Fun �as defined in paragraph 17 hereo� is ever insufficient to pay all principal and interest then due on`�he Bonds payable therefrom, the deficiency shall be promptly paid out of any other funds of the C�t��+ which are available for such purpose, including the general fund of the City, and such s 9 2Q Certificate of R�istration. The Director, Office of Financial Services, is 10 hereby directed to �le a certified copy of this resolution with the officer of Ramsey County, i l Minnesota, perforniing the functions of the county auditor (the "County Auditor"), together with 12 such other informatio�,as the County Auditor shall require, and to obtain the County Auditor's 13 certificate that the Bonc�� have been entered in the County Auditor's Bond Register, and that the 14 tax levy required by law h�s been made. 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 21. Records and Certificates. The officers of the City are hereby authorized and directed to prepare and furri�sh to the Purchaser, and to the attorneys approving the legality of the issuance of the Bonds, certFfied copies of all proceedings and records of the City relating to the Bonds and to the financial co`t�dition and affairs of the City, and such other affidavits, certificates and information as are required to show the facts relating to the legality and mazketability of the Bonds as the same'appear from the books and records under their custody and control or as otherwise known to theil�, and all such certified copies, certificates and affidavits, including any heretofore furnishLd, shall be deemed representations of the City as to the facts recited therein. � � �, 22. Nccative Covenants as to�Use of Proceeds and Improvements. The City hereby covenants not to use the proceeds of the B�nds or to use the Improvements, or to cause or permit them to be used, or to enter into any deferrek�payment arrange-ments for the cost of the Improvements, in such a manner as to cause the Bontls to be "private activity bonds" within the meaning of Sections ] 03 and 141 through 150 of the C'ode. '1'he City reasonably expects that no actions will be taken over the term of the Bonds that would cause them to be private activity bonds, and the average term of the Bonds is not longer than reasonably necessary for the govemmental purpose of the issue. The Gity hereby covenants not to use ihe proceeds of the Bonds in such a manner as to cause the Bonds to be "hedge bo�ds" within the meaning of Section 149(g) of the Code. ��� 23. Tax-Exempt Status of the Bonds: Rebate; Electioi comply with requirements necessary under the Code to establish and��na gross income under Section 103 of the Code of the interest on the Borid: limitation requirements relating to temporary periods for investments, lii invested at a yield greater than the yield on the Bonds, and the rebate of earnings to the United States. . The City shall itain the exclusion from including without itations on amounts ecess investment 40 The City expects that the two-year expenditure exception to the`��bate 41 requirements may apply to the construction proceeds oFthe Bonds. \. �. \. • �; 31 1268777v2 � `•`\ � \ o�-��� The City expects that the two-year expenditure exception to the rebate requirements may apply to the construction proceeds of the Bonds. If any elections are available now or hereafter with respect to arbitrage or rebate matte�s relating to the Bonds, the Mayor, Clerk, Treasurer and Director, Office of Financial Seivices, or nny of them, are hereby autharized and directed to make such elections as they deem necessary, appropriate or desirable in connection with the Bonds, and all such elections shall be, and sh111 be deemed and treated as, elections of the City. 8 24. No Desianation of Oualified Tax-Exempt Obligations. The Bonds, 9 together with other obligations issued by the City in 2001, exceed in amount those which may be 10 qualified as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the 11 Code, and hence are not designated for such purpose. 12 25. Letter of Representations. The Letter of Representations for the Bonds is 13 hereby confirmed to be the Blanket Issuer Letter of Representations dated April 10, 1996, by the 14 City and received and accepted by The Depository Trust Company. So long as The Depository 15 Trust Company is the Depository or it or its nominee is the Holder of any Global Certificate, the 16 City shall comply with the provisions of the Letter of Representations, as it may be amended ar 17 supplemented Uy lhe City from time to time with the agreement or consent of The Depository 18 Trust Comp�ny. 19 26. Negotiated Sale. The City has retained Springsted Incorporated as an 20 indepei�dent financial advisor, and the City has heretofore determined, and hereby determines, to 21 sell the Bonds by private negotiation, all as provided by Minnesota Statutes, Section 475.60, 22 Subdivision 2O). 23 27. Continuin� Disclosure. The City is an obligated person with respect to the 24 Bonds. The City hereby agrees, in accordance with the provisions of Rule 15c2-12 (the "Rule"), 25 promulgated by the Securities and Exchange Commission (the "Commission") pursuant to the 26 Secttrities Exchange Act of 1934, as amended, and a Continuing Disclosure Undertaking (the 27 "Undertaking") hereinafter described, to: 28 A. Provide or cause to be provided to each nationally recognized municipal 29 sec�irities information repository ("NRMSIR") and to Yhe appropriate state information 30 deposiCory ("SID"), if any, for the State o£Minnesota, in each case as designated by the 31 Commission in accordance with the Rule, certain annual financial information and 32 operating data in accordance with the Undertaking. The City reserves the right to modify 33 firom time to time the terms of the Undertaking as provided therein. 34 B. Provide or cause to be provided, in a timely manner, to (i) each NRMSIR 35 or to the Manicipal Securities Rulemaking Board ("MSRB") and (ii) the SID, notice of 36 the occtn�rence of certain material events with respect to the Bonds in accordance with the 37 Undertal<ing. 38 C. Provide or cause to be provided, in a timely manner, to (i) each NRMSIR 39 or Yo lhe MSRB and (ii) the SID, notice of a failure by the City to provide the annual 40 Fnancial information with respect to the City described in the Undertaking. 32 126R77Jv2 e�_.��� If any elections are available now or hereafter with respect to arbitrage or rebate atters relating to the Bonds, the Mayor, Clerk, Treasurer and Director, Office of Financial Se 'ces, or any of them, are hereby authorized and directed to make such elections as they deem necess , appropriate or desirable in connection with the Bonds, and all such elections shall be, and shall� deemed and treated as, elections of the City. 6 4. No Desienation of Oualified Tax-Exe�t Obli ations. The Bonds, 7 together with ot er obligations issued by the City in 2001, exceed in amount those which may be 8 qualified as "quali ied tax-exempt obligations" within the meaning of Section 265(b)(3) of the 9 Code, and hence a��not designated for such purpose. 10 I1 12 13 14 15 16 25. �Detter of Re ?resentations. The Letter of Representations for the Bonds is hereby confirmed to be t BM lanket Issuer Letter of Representations dated April 10, 1996, by the City and received and acce�ted by The Depository Trust Company. So long as The Depository Trust Company is the Depositpry or it or its nominee is the Holder of any Global Certificate, the City shall comply with the proJi,sions of the Letter of Representations, as it may be amended or supplemented by the City from tii�ie to time with the agreement or consent of The Depository Trust Company. � 17 2G. Neeotiated Sale`�,The City has retained Springsted Incorporated as an 18 independent financial advisor, and the CiEy has heretofore determined, and hereby determines, to 19 sell the Bonds by private negotiation, all as'��rovided by Minnesota Statutes, Section 475.6Q 20 Subdivision 2(9). �, 21 27. Continuin� Disclosure. '�he City is an obligated pecson with respect to the 22 Bonds. The City hercby agrees, in accordance wiY the provisions of Rule 15c2-12 (the "Rule"), 23 promulgated by the Securities and Exchange Com�jssion (the "Commission") pursuant to the 24 Securities Exchange Act of 1934, as amended, and a�ontinuing Disclosure Undertaking (the 25 "Undertaking") hereinafter described, to: ��� 2G 27 28 29 30 31 A. Provide or cause to be provided to ` ch nationally recognized municipal securities information repository ("NRMSIR") and�he appropriate state information depository ("SID"), if any, for the State of Minnesota, � each case as designated by the Commission in accordance with the Rule, certain annualWfinancial information and operating data in accordance with the Undertaking. The C4jty reserves the right to modify from time to time the terms of the Undertaking as provided t�erein. 32 B. Provide or cause to be provided, in a timely ma�er, to (i) each NRM5IR 33 or to the Municipal Securities Rulemaking Board ("MSRB") an �ii) the SID, notice of 34 the occurrence of certain material events with respect to the Bonds� acwrdance with the 35 Undertaking. 36 C. Provide or cause to be provided, in a timely manner, to r each NRMSIR 37 or to the MSRB and (ii) the SID, notice of a failure by the City to provi�the annuai 38 financial information with respect to the City described in the Undertaking. 39 The City agrees that its covenants pursuant to the Rule set forth in this , aragraph 40 27 and in the Undertaking are intended to be for the benefit of the Holders of the Bonds`and shall 32 12G8773v2 o�-��� 1 The City agrees that its covenants pursuant to the Rule set forth in this paragraph 2 27 and in the Uiidertaking are intended to be for the benefit of the Holders of the Bonds and shall 3 be enforceable on behalf of such Holders; provided that the right to enforce the provisions of 4 these covenauts shall be limited to a right to obtain specific enforcement of the City's obligations 5 imder the covenants. 6 The Mayor and Director, Office of Financial Services, or any other officers of the 7 City autliorized to act in their stead (the "Officers"), are hereby authorized and directed to 8 execute ou behalf of the City the Undertaking in substantially the form presented to the City 9 Council, subjecl lo such modifications thereof or additions thereto as are (i) consistent with the 10 requiremevts under the Rule, (ii) required by the Purchaser, and (iii) acceptable to the Officers. 11 28. Severabilitv. If any section, paragraph or provision of this resolution 12 shall be lield to be invalid or unenforceable for any reason, the invalidity or unenforceability of 13 such section, paragraph or provision shall not affect any of the remaining provisions of this 14 resolution. 33 i zes��s�z di-3i� enforceable on behalf of such Holders; provided that the right to enforce the provisions of se covenants shall be limited to a right to obtain specific enforcement of the City's obligations 9erthe covenants. 4 '� The Mayor and Director, Office of Financial Services, or any other officers of the 5 City 8uthorized to act in their stead (the "Officers"), are hereby authorized and directed to 6 execute on behalf of the City the Undertaking in substantially the form presented to the City 7 Council;.�ubject to such modifications thereof or additions thereto as are (i) consistent with the 8 requirements under the Rule, (ii) required by the Purchaser, and (iii) acceptable to the Officers. 9 '. 28. Severabilitv. If any section, paragaph or provision of this resolution 10 shall be held to,.be invalid or unenforceable for any reason, the invalidity or unenforceability of 11 such section, par�graph or provision shall not affect any of the remaining provisions of this 12 resolution. 1 �( �268773v2 t �\ `. k � \ 33 0�-'3�� 29. HeadinQS. Headings in this resolution are included for convenience of reference only and are not a part hereof, and shail not limit or define the meaning of any provision hereof. Adopted by Council: Date�� �,p �-F� a-<� c�� Adoption Certified by Council Secretary By: I \��`\��� � � Approved by Mayor: Date ! 2�� By: � 12G8773v2 34 Reques db r.t�nt f: �'�NAN��A�' ge ��`� 3 �� By:� Form Approved by City Attorney By: �G.'— `�._ � � � /�'- o � for SulSmfssioGfto Council � � of Financial Services BE ON COUNGL TOTAL # OF SIGNATURE PAGES DATEINITIATED ,s,zoo, GREEN SH NUMBERFOR ROUTING o�-��� No 103538 u OEPNRTMENTDIRECTOR `�// f/ u GITYCOUNCIL � CITYATTpRNEY � ❑ CITYCLERK ❑ FINANCIALSERVIGESOIR. ❑ FINANCIALSERVIACQG � MAVOR ❑ 1_ (CLIP ALL LOCATIONS FOR SIGNATURE) iis resolution accepls the wlnning proposal and awards lhe bid for the $19,000,000 G.O. 3pilal Improvemenl Bonds Serles 2007A. Thls is a competitive bond sale and the award going to the bidder found most advantageos (lowest cost) to the City. JUA I IUN HP(1fOVB (H) Of KBJBC[ PLANNING COMMISSION CIB COMMITTEE CIVIL SERVICE COMMISSION PERSONAL SERVICE CONTRACTS MUST ANSWER THE FOLLOWING QUESTlONS: 1. HasthlspersoNfirmeverworkedunderaconlractforthisdepartmenl'7 YES NO 2. Has this persoNfirm ever been a city employee? YES NO 3. Does this persoNFlrm possess a skill not normally possessed by any arrent ciry employee� YES NO 4 Is this persoNfrm a targeted vendoR VES NO 3 PROBLEM ISSUE, OPPOR7UNITV (Who, What, When, Where, Why) are forthe purpose of Ponding the 6ond Mancine potlion ofthe Capllal Improvement Budget. be avallable for the CIB Budget. needed for capltal proJects wlll nol be avalleble. AMOUNT OF TRANSACTION S s�e.o0o.000 FUNDING SOURCE �.��"�}'�� ���������g�� �, � � �6� ��b�� COST/REVENUE BUDGETED (CIRCLE ONE) ACTIVIN NUMBER YES NO INFORMATION (EXPLAIN) ° ��G � -Z��d/ CouncilFile# 0 �" 3 �� 0 R I G I�I � L Green Sheet # l � ��,St` RESOLUTION ���/,,� "' ITY OF SAINT PAUL, MINNESOTA '�"� Presented By j �����L Referred To Committee: Date ACCEPTING PROPOSAL ON SALE OF $19,000,000 GENERAL OBLIGATION CAPITAL IMPROVEMENT BONDS, SERIES 2001A, PROVIDING FOR THEIR ISSUANCE, AND LEVYING A TAX FOR THE PAYMENT THEREOF WHEREAS, the Director, Office of Financial Services, has presented proposals received for the sale of $19,000,000 General Obligation Capital Improvement Bonds, Series ZOOlA (the "Bonds"), of the City of Saint Paul, Minnesota (the "City"); and 9 WHEREAS, the proposals set forth on Exhibit A attached hereto were received 10 pursuant to the Terms of Proposal at the offices of Springsted Incorporated at 10:30 A.M., 11 Central Time, this same day; and 12 WHEREAS, the Director, Office of Financial Services, has advised this Council 13 that the proposal of ,�� e,�' m�r.�,a �r.>.�., �S ✓LeWas found to be the most advantageous 14 and has recommended that said proposal be accepted; and 15 WHEREAS, the proceeds of the Bonds will finance certain capital improvements, 16 for which the City is proceeding pursuant to its Charter and Laws of Minnesota far 1971, 17 Chapter 773, as amended, with any excess to be used for any other purpose pezmitted by law; 18 and 19 WHEREAS, the City has hereto£ore issued registered obligations in certificated 20 form, and incurs substantial costs associated with their printing and issuance, and substantial 21 continuing transaction costs relating to their payment, transfer and exchange; and 22 WHEREAS, the City has determined that significant savings in transaction costs 23 will result from issuing bonds in "global book-entry form", by which bonds are issued in 24 certificated form in large denominations, registered on the books of the City in the name of a 25 depository ar its nominee, and held in safekeeping and immobilized by such depository, and such 26 depository as part of the computerized national securities clearance and settlement system (the 27 "National System") registers transfers of ownership interests in the bonds by making 28 computerized book entries on its own books and distributes payments on the bonds to its 29 Participants shown on its books as the owners of such interests; and such Participants and other 30 banks, brokers and dealers participating in the National System will do likewise (not as agents of 31 the City) if not the beneficial owners of the bonds; and 1 12G8773v2 DI-��� WFIEREAS, "Participants" means those financial institutions for whom the Depository effects book-entry transfers and pledges of securities deposited and immobilized with lhe Depository; and WHEREAS, The Depository Trust Company, a limited purpose trust company orglnized under the laws of the State of New York, or any of its successors or successors to its functions hereunder (the "Depositary"), will act as such depository with respect to the Bonds except as set forth below, and the City has heretofare delivered a letter of representations (the "Lelter of Representations") setting forth various matters relating to the Depository and its role with respect to the Bonds; and ] 0 WHEREAS, the City will deliver the Bonds in the form of one certificate per ll maturily, each representing the entire principal amount of the Bonds due on a particular maturity 12 daYe (each a"Global Cerlificate"), which single certificate per maturity may be transferred on the 13 City's bond register as required by the Uniform Commercial Code, but not exchanged for smaller 14 denominalions unless the City determines to issue Replacement Bonds as provided below; and 15 WH�REAS, the City will be able to replace the Depository or under certain 16 circumstances to abandon the "global book-entry form" by permitting the Global Certificates to 17 Ue exchanged for smaller denominations typical of ordinary bonds registered on the City's bond 18 registei; and "Replacement Bonds" means the certificates representing the Bonds so 19 authenticated and delivered by the Bond Registrar pursuant to paragraphs 6 and 12 hereof; and 20 WHEREAS, "Holder" as used herein means the person in whose name a Bond is 21 registered on Che registration books of the City mainYained by the registrar appointed as provided 22 in paragraph 8(the "Bond Registrar"); and 23 WHEREAS, Rule 15c2-12 of the Securities and Exchange Commission prohibits 24 "participlling underwriters° from purchasing ar selling the Bonds unless the City undertakes to 25 provide cerlain continuing disclosure with respect to the Bonds; and 26 WHEREAS, pursuant to Minnesota Statutes, Section 475.60, Subdivision 2(9), 27 public sale requirements do not apply to the Bonds if the City retains an independent financial 28 ldvisor and determines to sell the Bonds by private negotiation, and the City has instead 29 autliorized a competitive sale without publication of notice thereof as a form of private 30 negoliatioi�; and 31 WHEREAS, proposals for the Bonds have been solicited by Springsted 32 Incorporlted p�u•s�iant to an Official Statement and Terms of Proposal therein: 33 NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Saint 34 Paul, Minnesota, as follows: 35 l. Acceptance of Proposal. The proposal of Banc of America Securities, 36 LLC (the "Purcl�aser"), to purchase $19,OOQ000 General Obligation Capital Improvement 37 Bonds, Series 2001A, of the City (the "Bonds", or individually a"Bond"), in accordance with the 38 Terms of Proposal for the bond sale, at the rates of interest set forth hereinafter, and to pay for 39 the Bonds the sum of $19,681,895.40, plus interest accrued to settlement, is hereby found, 2 i26877Jv2 ai-��i a 5 0 10 WHEREAS, the City will deliver the Bonds in the form of one certificate per I 1 maturity, e h representing the entire principal amount of the Bonds due on a particular maturity 12 date (each a' lobal Certificate"), which single certificate per maturity may be transferred on the 13 City's bond reg ter as required by the Uniform Commercial Code, but not exchanged for smaller 14 denominations u��ess the City determines to issue Replacement Bonds as provided below; and IS WHEf�EAS, the Citywill be able to replace the Depository or under certain 16 circumstances to abancl n the "giobal book-entry form" by permitting the Global Certificates to 17 be exchanged for smalle�enominations typica( of ordinary bonds registered on the City's bond 18 register; and "Replacemente onds" means the certificates representing the Bonds so 19 authenticated and delivered the Bond Registraz pursuant to paragraphs 6 and 12 hereof; and 20 WHEREAS, "H'�er" as used herein means the person in whose name a Bond is 21 registered on the registration boo s of the City maintained by the registrar appointed as provided 22 in paragraph 8(the "Bond Reg�straPk�); and 23 WHEREAS, Rule 15c2��12 of the Securities and Exchange Commission prohibits 24 "participating underwriters" from purcti'�sing or selling the Bonds unless the City undertakes to 25 provide certain continuing disclosure witl�respect to the Bonds; and WHEREAS, "Participants" means those financial institutions for whom the Depository effects book-entry transfers and pledges of securities deposited and immobilized with the Depository; and WHEREAS, The Depository Trust Company, a limited purpose trust company rganized under the laws of the State of New York, or any of its successors or successors to its nctions hereunder (the "Depository"), will act as such depository with respect to the Bonds ex ept as set forth below, and the City has heretofore delivered a letter of representations (the "Le r of Representations") setting forth various matters relating to the Depository and its role with spect to the Bonds; and 26 WHEREAS, pursuant to Min�esota Statutes, Section 475.60, Subdivision 2(9), 27 public sale requirements do not apply to the �gnds if the City retains an independent financial 28 advisor and determines to sell the Bonds by pn�ate negotiation, and the City has instead 29 authorized a competitive sale without publicatio�of notice thereof as a form of private 30 negotiation; and � 31 32 WHEREAS, proposals for the Bonds Incorporated pursuant to an Official Statement and 7 been solicited by Springsted ofProposaltherein: 33 34 35 36 37 38 39 NOW, THEREFORE, BE IT Paul, Minnesota, as follows: the Council of the City of Saint 1. Acceptance of Proposal. The proposal � "Purchaser") to purchase $19,000,000 General Obligation Cap 2001A, of the City (the "Bonds", or individually a"Bond"), in Proposal for the bond sale, at the rates of interesf set forth hereinafte the sum of $ �, plus interest acarued to settlement, 1268777v2 (the with the Terms of to pay for the Bonds eby found, determined ��. \ P�—�3�/ 10 11 12 13 determined and declared to be the most favorable proposal received and is hereby accepted, and the Bonds are hereby awarded to the Purchaser. The Director, Office of Financial Services, or his designee, is directed to retain the deposit of the Purchaser and to forthwith return to the others making proposals their good faith checks or drafts. 2. Title; Original Issue Date; Denominations; Maturities. The Bonds shall be tilled "General OUligation Capital Improvement Bonds, Series 2001A", shall be dated April 1, 2001, as the date of original issue and shall be issued forthwith on or after such date as fully registered bonds. The Bonds shall be numbered from R-1 upward. Global Certificates shall each be in lhe denomination of lhe entire principal amount maturing on a single date, or, if a portion of said principal amowrt is prepaid, said principal amount less the prepayment. Replacement Bonds, if isstted as provided in paragraph 6, shall be in the denomination of $5,000 each or in auy integral multiple thereof of a single maturity. The Bonds shall mature on March 1 in the years and amounts as follows: Year 2002 2003 2004 2005 2006 14 15 16 17 18 19 20 21 22 Amount $1,660,000 1,655,000 1,715,000 1,775,000 1,845,000 Year 2007 2008 2009 2010 2011 Amount $1,910,000 1,985,000 2,065,000 2,150,000 2,240,000 3. Purpose. The Bonds shall provide funds for the construction of the capital iinprovemenis in the City's 2001 capital improvement budget (the "ImprovemenYs"), including payments on a lease relating to the City's central library. The proceeds of the Bonds shall be deposited 1nd used as provided in paragraph 17, far the purpose described by Laws of Minnesota for 1971, Cl�apter 773, as amended, and any excess moneys shall be devoted to any other purpose �ermitted by law. The total cost of the Improvements, which shall include all costs enumerated in Minnesota Statutes, Section 475.65, is estimated to be at least equal to the amount of the Bonds. Work on the Improvements shall proceed with due diligence to completion. 23 4. Interest. The Bonds shall bear interest payable semiannually on March 1 24 and 5eptember 1 of each year (each, an"Interest Payment Date"), commencing September 1, 25 2001, calculated on the basis of a 360-day year of twelve 30-day months, at the respective rates 26 per amzum set forth opposite the maturity years as follows: Mlturit� 2002 2003 2004 2005 2006 27 12G8773v2 Interest Rate 4.0 % 4.5 4.5 4.5 4.5 Maturitv Year 2007 2008 2009 2010 2011 Interest Rate 5.0% 5.0 5.0 5.0 5.0 O/-3// and declared to be the most favorable proposal received and is hereby accepted, and the Bonds 2 are hereby awarded to the Purchaser. The Director, Offce of Financial Services, or his designee, 3,, is directed to retain the deposit o€'the Purchaser and to forthwith retum to the others making 4 roposals their good faith checks or drafts. 5 � 2. Title: Original Issue Date; Denominations; Maturities. The Bonds shall be 6 titlec��."General Obligation Capital Improvement Bonds, Series 2001A", shall be dated April 1, 7 2001, ns the date of original issue and shall be issued forthwith on or after such date as fully 8 register�e�l bonds. The Bonds shall be numbered from R-1 upward. Global Certificates shall each 9 be in the i� nomination of the entire principal amount maturing on a single date, or, if a portion 10 of said prin�� al amount is prepaid, said principal amount less the prepayment. Replacement 11 Bonds, if issu�d as provided in paragraph 6, shall be in the denomination of $5,000 each or in 12 any integral rnul,Giple thereof of a single maturity. The Bonds shall mature on March 1 in the 13 years and amountg as follows: Year 2002 �003 2004 2005 2006 14 15 16 17 18 19 20 21 Amount $1,660,000 1,655,000 1,715,000 1,775,000 ���,845,000 Year 2007 2008 2009 2010 2011 Amount $1,910,000 1,985,000 2,065,000 2,150,000 2,240,000 3. Purpose. Th" ; Bonds shall provide funds for the construction of the capital improvements in thc City's 2001 ca�al improvement budget (the "Improvements"), including payments on a lease relating to the City's centrai library. The proceeds of the Bonds shall be deposited and used as provided in paragYaph 17, for ti�e purpose described by Laws of Minnesota for 1971, Chapter 773, as amended, and alrfy excess moneys shall be devoted to any other purpose permitted by law. The total cost of�the Improvements, which shall include all costs enumerated in Minnesota Statutes, Section 4'7�5.65, is estimated to be at least equal to the amount 22 of the Bonds. Work on the Improvements shall proceed with due diligence to completion. 23 4. Interest. The Bonds shall bear interest payable semiannually on Mazch 1 24 and Sepiember 1 of each year (each, an "Interest P��ment Date"), commencing September 1, 25 2001, calculated on the basis of a 360}day year of t�lve 30-day months, at the respective rates 26 per annum set forth opposite the maturity years a� foll'Qws: Maturity Year 2002 2003 2004 2005 2006 27 1268773v2 Interest Rate M� urit ' \. o�u 2`0,07 20d�3 2009 2010 2011 3 Interest Rate % 01-3ir 9 10 11 12 13 14 IS 16 5. Description of the Global Certificates and Global Book-Entrv S sy tem. Upon their original issuance the Bonds will be issued in the form of a single Global Certificate for each maturity, deposited with the Depository by the Purchaser and immobilized as provided in par�graph 6. No beneficial owners of interests in the Bonds will receive certificates representing their respective interests in the Bonds except as provided in paragraph 6. Except as so provided, during the term of the Bonds, beneficial ownership (and subsequent transfers of beneficial ownership) of interests in the Global Certificates will be reflected by book entries made on the records of the Depository and its Participants and other banks, brokers, and dealers pariicipating in the National System. The Depository's book entries of beneficial ownership interests are authorized to be in increments of $5,000 of principal of the Bonds, but not smaller increments, despite the larger authorized denominations of the Global Certificates. Payment of principal of, premium, if any, and interest on the Global Certificates will be made to the Bond Regislrar as paying agent, and in turn by the Bond Registrar to the Depository or its nominee as registered owiier of the Global Certificates, and the Depository according to the laws and rules governing it will receive and forward payments on behalf of the beneficial owners of the Global Certificales. 17 Ptiymenl oPprincipal of, premium, if any, and interest on a Global Certificate may in the 18 City's discrefion be made by such other method of transferring funds as may be requested by the 19 Holder of a Global Certificate. 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 6. Immobilization of Global Certificates by the Depository; Successor Depositorv: Re�lacement Bonds. Pursuant to the request of the Purchaser to the Depository, which request is required by the Terms of Proposal, immediately upon the original delivery of tlie Bonds the Purchaser will deposit the Global Certificates representing all of the Bonds with the Depository or its agent. The Global Certificates shall be in typewritten form or otherwise as acceplable to the Depository, shall be registered in the name of the Depository ar its nominee and shall be held immobilized from circulation at the offices of the Depositary or its agent on behllf of the Purchaser and subsequent bondowners. The Depository or its nominee will be the sole holder oPrecord of the Global Certificates and no investor ar other party purchasing, selling or otherwise transfen•ing ownership of interests in any Bond is to receive, hold or deliver any bond certificates so long as the Depository holds the Global Certificates immobilized from circulation, except as provided below in this paragraph and in paragraph 12. Certificates evidencing the Bonds may not after their original delivery be transferred or exchanged except: (i) Upon registration of transfer of ownership of a Global Certificate, as provided in paragraph 12, (ii) To any successor of the Depository (or its nominee) or any substitute depository (a "substitute depository") designated pursuant to clause (iii) of this subparagraph, provided that any successor of the Depository or any substitute depository must be both a"clearing corporation" as defined in the Minnesota Uniform Commercial Code at MinnesoCa Statutes, Section 336.8-102, and a qualified and registered "clearing agency" as provided in Section 17A of the Securities Exchange Act of 1934, as amended, 12G8773v2 C! • i �' . �: . . . . � 1 5. Descrintion of the Global Certificates and Globai Book Entrv Svstem. Upon their original issuance the Bonds will be �ssued m the form of a single Global Certificate 3 for each maturity, deposited with the Depository by the Purchaser and immobilized as provided 4 paragraph 6. No beneficial owners oFinterests in the Bonds will receive certificates 5 re esenting their respective interests in the Bonds except as provided in paragraph 6. Except as 6 so p vided, during the term of the Bonds, beneficial ownership (and subsequent transfers of 7�� bene ial ownership) of interests in the Global Certificates will be reflected by book entries 8 made o the records of the Depository and its Participants and other banks, brokers, and dealers 9 participat�g in the National System. The Depository's book entries of beneficial ownership 10 interests arc� uthorized to be in increments af $5,000 of principal of the Bonds, but not smaller 11 increments, d��pite the larger authorized denominations of the Global Certificates. Payment of 12 principal of, pre: ium, if any, and interest on the Global Certificates will be made to the Bond 13 Registrar as pay�n , agent, and in turn by the Bond Registrar to the Depository o� its nominee as 14 registered owner of ih Global Certificates, and the Depository according to the laws and rules 15 governing it will recei�\nd forward payments on behalf of the beneficial owners of the Global 16 Certificates. 17 Payment ofprincipal �d�' prerriium, if any, and interest on a Global Certificate may in the 18 City's discretion be made by suC other method of transferring funds as may be requested by the 19 Holder of a Global Certificate. � 20 21 22 23 24 25 2G 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 6. Immobilizatio�of Global Certificates bv the Denositorv Successor Depositorv: Renlacement Bonds. Purs nt to the request of the Purchaser to the Depository, which request is required by the Terms o�•�roposal, immediately upon the original delivery of the Bonds the Purchaser will deposit the Glbbal Certificates representing atl of the Bonds with the Depository. Tha Global Certificates shal���e in typewritten form or otherwise as acceptable to the Depository, shall be registered in the narri of the Depository or its nominee and shall be held immobilized from circulation at the offices� {'ihe Depository on behalf of the Purchaser and subsequent bondowners. The Depository or its nom'nee will be the sole holder of record of the Global Certificates and no investor or other party pu��iasing, selling or otherwise transferring ownership of interests in any Bond is to receive; hold on,deliver any bond certificates so long as the Depository holds the Global Certificates immobilized��i�om circulation, except as provided below in this paragraph and in paragraph 12. `�,, . Certificates evidencing the Bonds may not after their exchanged except: (i) Upon registration of transfer of ownership of a provided in paragraph 12, delivery be transferred or Certificate, as (ii) To any successor of the Depository (or its nominee) or ai�,y, substitute depository (a "substitute depository") designated pursuant to clause (iii) 0�"4 �,�s subpazagraph, provided that any successor of the Depository or any substitutc deposi must be both a"clearing corporation" as defined in the Minnesota Uniform Co� Code at Minnesota Statutes, Section 336.8-102, and a qualified and registered "cl�"?�ri agency" as provided in Section 17A of the Securities Exchange Act of 1934, as ame� 1268771v2 0 0�-3�\ (iii) To a substitute depository designated by and acceptable to the City upon (a) the determination by the Depository that the Bonds shall no longer be eligible for its depository services or (b) a determination by the City that the Depository is no longer able to carry out its functions, provided that any substitute depository must be qualified to act as such, as provided in clause (ii) of this subparagraph, or (iv) To those persons to whom transfer is requested in written transfer instructions in the event that: 8 (a) the Depository shall resign or discontinue its services for the 9 Bonds and the City is unable to locate a substitute depository within two (2) 10 months following the resignation or determination of non-eligibility, or 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 �:3 29 30 31 32 33 34 35 36 37 38 39 40 (b) upon a determination by the City in its sole discretion that (1) the continuation of the book-entry systam described herein, which precludes the issuance of certificates (other than Global Certificates) to any Holder other than the Depository (or its nominee), might adversely affect the interest of the beneficial owners of the Bonds, ar(2) that it is in the best interest of the beneficial owners of the Bonds that they be able to obtain certificated bonds, in either of which events the City shall notify Holders of its determination and of the availability of certificates (the "Replacement Bonds") to Holders requesting the same and the registration, transfer and exchange of such Bonds will be conducted as provided in paragraphs 9B and 12 hereof. In the event of a succession of the Depository as may be authorized by this paragraph, the Bond Registrar upon presentation of G1oUa1 Certificates shall register their transfer to the substitute or successor depository, and the substitute or successor depository shall be treated as the Depository for all purposes and functions under this resolution. The Letter of Representations shall not apply to a substitute or successor depository unless the City and the substitute or successor depository so agree, and a similar agreement may be entered into. 7. Redem�tion. (a) Optional Redemption; Due Date. All Bonds maturing after March 1, 2009, shall be subject to redemption and prepayment at the option of the City on such date and on any day thereafter at a price of par plus accrued interest. Redemption may be in whole or in part of the Bonds subject to prepayment, If redemption is in part, those Bonds remaining unpaid may be prepaid in such order of maturity and in such amount per maturity as the City shall determine; and if only part of the Bonds having a common maturity date are called for prepayment, the Global Certificates may be prepaid in $5,000 increments of principal and, if applicable, the specific Replacement Bonds to be prepaid shall be chosen by lot by the Bond Registrar. Bonds or portions thereof called for redemption shall be due and payable on the redemption date, and interest thereon shall cease to accrue from and after the redemption date. (b) Notation on Global Certificate. Upon a reduction in the aggregate principal amount of a Global Certificate, the Holder may make a notation of such redemption on the panel 12G6773v2 5 o�-��� 1 provided on the Global Certificate stating the amount so redeemed, or may return the Global 2 Certificate to the Bond Registrar in exchange far a new Global Certificate authenticated by the 3 Bond Registrar, in proper principal amount. Such notation, if made by the Holder, shall be for 4 reference only, and may not be relied upon by any other person as being in any way 5 determinative of the principal amount of such Global Certificate outstanding, unless the Bond 6 Registrar has signed the appropriate column of the panel. 7 (c) Selection of Replacement Bonds. To effect a partial redemption of Replacement 8 Bonds having a common maturity date, the Bond Registrar prior to giving notice of redemption 9 shall assign to each Replacement Bond having a common maturity date a distinctive number for 10 each $5,000 of the principal amount of such Replacement Bond. The Bond Registrar shall then 11 select by lot, using such method of selection as it shall deem proper in its discretion, from the 12 numbers so assigned to such Replacement Bonds, as many numbers as, at $5,000 for each 13 number, shall equal the principal amount of such Replacement Bonds to be redeemed. The 14 Replacement Bonds to be redeemed shall be the Replacement Bonds to which were assigned 15 numbers so selected; provided, however, that only so much of the principal amount of each such 16 Replacement Bond of a denomination of more than $5,000 shall be redeemed as shall equal 17 $5,000 for each number assigned to it and so selected. 18 19 20 21 22 23 24 25 26 27 (d) Partial Redemntion of Replacement Bonds. If a Replacement Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the City or Bond Registrar so requires, a written instrument of transfer in form satisfactory to the City and Bond Registrar duly executed by the Holder thereof or his, her or its attorney duly authorized in writing) and the City shall execute (if necessary) and the Bond Registrar shall authenticate and deliver to the Holder of such Replacement Bond, without service charge, a new Replacement Bond or Bonds of the same series having the same stated maturity and interest rate and of any authorized denomination or denominations, as requested by such Holder, in aggegate principal amount equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered. 28 (e) Request for Redemntion. The Bond Registrar shall call Bonds for redemption and 29 payment as herein provided upon receipt by the Bond Registrar at least forty-five (45) days prior 30 to the redemption date of a request of the City, in written form if the Bond Registraz is other than 31 a City officer. Such request shall specify the principal amount of Bonds to be called for 32 redemption and the redemption date. 33 34 35 36 37 38 39 ,� (� Notice. Mailed notice of redemption shall be given to the paying agent (if other than a City officer) and to each affected Holder. If and when the City shall call any of the Bonds for redemption and payment prior to the stated maturity thereof, the Bond Registrar shall give written notice in the name of the City of its intention to redeem and pay such Bonds at the office of the Bond Registrar. Notice of redemption shall be given by first class mail, postage prepaid, mailed not less than thirty (30) days prior to the redemption date, to each Holder of Bonds to be redeemed, at the address appearing in the Bond Register. All notices of redemption shall state: (i) The redemption date; 41 (ii) The redemption price; 1268773v2 p�-�\\ 1 (iii) If ]ess than all outstanding Bonds are to be redeemed, the identification 2 (and, in the case of partial redemption, the respective principal amounts) of the Bonds to 3 be redeemed; 4 (iv) That on the redemption date, the redemption price will become due and 5 payable upon each such Bond, and that interest thereon shall cease to accrue from and 6 after said date; and (v) The place where such Bonds are to be surrendered for payment of the redemption price (which shall be the office of the Bond Registrar). 9 (g) Notice to Depositorv. Notices to The Depository Trust Company or its nominee 10 shall contain the CUSIP numbers of the Bonds. If there are any Holders of the Bonds other than 11 the Depository or its nominee, the Bond Registrar shall use its best efforts to deliver any such 12 notice to the Depository on the business day next preceding the date of mailing of such notice to 13 all other Holders. 14 8. Bond Re is� trar. U. S. Bank Trust National Association, in Saint Paul, 15 Minnesota, is appointed to act as bond registrar and transfer agent with respect to the Bonds (the 16 "Bond Registrar"), and shall do so unless and until a successor Bond Registrar is duly appointed, 17 all pursuant to any contract the City and Bond Registrar shall execute which is consistent 18 herewith. A successor Bond Registrar shall be an officer of the City or a bank or trust company 19 eligible for designation as bond registrar pursuant to Minnesota Statutes, Chapter 475, and may 20 be appointed pursuant to any contract the City and such successor Bond Registrar shall execute 21 which is consistent herewith. The Bond Registrar shall also serve as paying agent unless and 22 until a successor paying agent is duly appointed. Principal and interest on the Bonds shall be 23 paid to the Holders (or record holders) of the Bonds in the manner set forth in the forms of Bond 24 and paragraph 14 of this resolution. 25 9. Forms of Bond The Bonds shall be in the form of Global Certificates 26 unless and until Replacement Bonds are made available as provided in paragraph 6. Each form 27 of bond may contain such additional or different terms and provisions as to the form of payment, 28 record date, notices and other matters as are consistent with the Letter of Representations and 29 approved by the City Attorney. 30 A. Global Certificates. The Global Certificates, together with the Certificate of 31 Registration, the Register of Partial Payments, the form of Assignment and the registration 32 information thereon, shall be in substantially the following form and may be typewritten rather 33 than printed: 12G8773v2 O�-'a�♦ � $ GENERAL OBLIGATION CAPITAL IMPROVEMENT BOND, SERIES 2001A INTEREST RATE REGISTERED OWNER: UNITED STATES OF AMERICA STATE OF MINNESOTA RAMSEY COUNTY CITY OF SAINT PAUL MATURITY DATE DATE OF ORIGINAL ISSL7E CUSIP March 1, _ 10 PRINCIPAL AMOLJNT: 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 DOLLARS KNOW ALL PERSONS BY THESE PRESENTS that the City of Saint Paul, Ramsey County, Minnesota (the "Issuer" or "City"), certifies that it is indebted and for value received promises to pay to the registered owner specified above ar on the certificate of registration below, or registered assigns, in the manner hereinafter set forth, the principal amount specified above, on the maturity date specified above, unless called for earlier redemption, and to pay interest thereon semiannually on March 1 and September 1 of each year (each, an "Interest Payment Date"), commencing September 1, 2001, at the rate per annum specified above (calculated on the basis of a 360-day year of twelve 30-day months) until the principal sum is paid or has been provided for. This Bond will bear interest from the most recent Interest Payment Date to which interest has been paid or, if no interest has been paid, from the date of original issue hereof. The principal of and premiwn, if any, on this Bond are payable in same- day funds by 2:30 p.m., Eastern time, upon presentation and surrender hereof at the principal office of in , Minnesota (the "Bond Registrar"), acting as paying agent, or any successor paying agent duly appointed by the Issuer; provided, however, that upon a partial redemption of this Bond which results in the stated amount hereof being reduced, the Holder may in its discretion be paid without presentation of this Bond, which payment shall be received no later than 2:30 p.m., Eastern time, and may make a notation on the panel provided herein of such redemption, stating the amount so redeemed, ar may return the Bond to the Bond Registrar in exchange for a new Bond in the proper principal amount. Such notation, if made by the Holder, shall be for reference only, and may not be relied upon by any other person as being in any way determinative of the principal amount of this Bond outstanding, unless the Bond Registrar has signed the appropriate column of the panel. Interest on this Bond will be paid on each Interest Payment Date in same-day funds by 230 p.m., Eastern time, to the person in whose name this Bond is registered (the "Holder" or "Bondholder") on the registration books of the Issuer maintained by the Bond Registrar and at the address appearing thereon at the close of business on the fifteenth day of the calendar month preceding such Interest Payment April 1, 2001 1268773v2 0�-7�e 1 Date (the "Regular Record Date"). Interest payments shall be received by the Holder no later 2 than 2:30 p.m., Eastern time; and principal and premium payments shall be received by the 3 Holder no later than 2:30 p.m., Eastern time, if the Bond is surrendered for payrnent enough in 4 advance to permit payment to be made by such time. Any interest not so timely paid shall cease 5 to be payable to the person who is the Holder hereof as of the Regular Record Date, and shall be 6 payable to the person who is the Holder hereof at the close of business on a date (the "Special 7 Record Date") fixed by the Bond Registrar whenever money becomes available for payment of 8 the defaulted interest. Notice of the Special Record Date shall be given to Bondholders not less 9 than ten days prior to the Special Record Date. The principal of and premium, if any, and 10 interest on this Bond are payable in lawful money of the United States of America. 11 Date of Pavment Not Business Dav. If the date for payment of the principal of, 12 premium, if any, or interest on this Bond shall be a Saturday, Sunday, legal holiday or a day on 13 which banking institutions in the City of New York, New York, or the city where the principal 14 office of the Bond Registrar is located are authorized by law or executive order to close, then the 15 date for such payment shall be the next succeeding day which is not a Saturday, Sunday, legal 16 holiday or a day on which such banking institutions are authorized to close, and payment on such 17 date shall have the same force and effect as if made on the nominal date of payment. 18 Redemption. All Bonds ofthis issue (the "Bonds") maturing after March 1, 2009, 19 are subject to redemption and prepayment at the option of the Issuer on such date and on any day 20 thereafter at a price of par plus accrued interest. Redemption may be in whole or in part of the 21 Bonds subj ect to prepayment. If redemption is in part, those Bonds remaining unpaid may be 22 prepaid in such order of maturity and in such amount per maturity as the City shall determine; 23 and if only part of the Bonds having a common maturity date are called for prepayment, this 24 Bond may be prepaid in $5,000 increments of principal. Bonds or portions thereof called for 25 redemption shall be due and payable on the redemption date, and interest thereon shall cease to 26 accrue from and after the redemption date. 27 Notice of Redemption. Mailed notice of redemption shall be given to the paying 28 agent (if other than a City officer) and to each affected Holder of the Bonds. In the event any of 29 the Bonds are called for redemption, written notice thereof will be given by first class mail 30 mailed not less than thirty (30) days prior to the redemption date to each Holder of Bonds to be 31 redeemed. In connection with any such notice, the "CUSII"' numbers assigned to the Bonds 32 shall be used. 33 Renlacement or Notation of Bonds after Partiai Redemption. Upon a partial 34 redemption of this Bond which results in the stated amount hereof being reduced, the Holder 35 may in its discretion make a notation on the panel provided herein of such redemption, stating 36 the amount so redeemed. Such notation, if made by the Holder, shall be for reference only, and 37 may not be relied upon by any other person as being in any way determinative of the principal 38 amount of the Bond outstanding, unless the Bond Registrar has signed the appropriate column of 39 the panel. Otherwise, the Holder may surrender this Bond to the Bond Registrar (with, if the 40 Issuer or Bond Registrar so requires, a written instrument of transfer in form satisfactory to the 41 Issuer and Bond Registrar duly executed by the Holder thereof or his, her or its attorney duly 42 authorized in writing) and the Issuer shall execute (if necessary) and the Bond Registrar shall 43 authenticate and deliver to the Holder of such Bond, without service charge, a new Bond of the 9 1268773v2 o►-��� 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 same series having the same stated maturity and interest rate and of the authorized denomination in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered. Issuance; Purpose; General Obligation. This Bond is one of an issue in the total principal amount of $19,000,000, all of like date of original issue and tenor, except as to number, maturity, interest rate, denomination, and redemption privilege, which Bond has been issued pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including particularly Laws of Minnesota for 1971, Chapter 773, as amended, and the Charter of the Issuer, and pursuant to a resolution adopted by the City Council of the Issuer on March 28, 2001 (the "Resolution"), for the purpose of providing money to finance the acquisition, construction and repair of various capital improvements in the City. This Bond is payable out of the General Debt Service Fund of the Issuer. This Bond constitutes a general obligation of the Issuer, and to provide moneys for the prompt and full payment of its principal, premium, if any, and interest when the same become due, the fuli faith and credit and taxing powers of the Issuer have been and are hereby irrevocably pledged. Denominations; Exchange; Resolution. The Bonds are issuable originally only as Global Certificates in the denomination of the entire principal amount of the issue maturing on a single date, or, if a portion of said principal is prepaid, said principal amount less the prepayment. Global Certificates are not exchangeable for fully registered bonds of smaller denominations except to evidence a partial prepayment or in exchange for Replacement Bonds if then available. Replacement Bonds, if made available as provided below, are issuabie solely as fully registered bonds in the denominations of $5,000 and integral multiples thereof of a single maturity and are exchangeable for fully registered Bonds of other authorized denominations in equal aggregate principal amounts at the principal office of the Bond Registrar, but only in the manner and subject to the limitations provided in the Resolution. Reference is hereby made to the Resolution for a description of the rights and duties of the Bond Registrar. Copies of the Resolution are on file in the principal office of the Bond Registrar. that: Reolacement Bonds. Replacement Bonds may be issued by the Issuer in the event 30 (a) the Depository shall resign or discontinue its services for the Bonds, and only 31 if the Issuer is unable to locate a substitute depository within two (2) months following 32 the resignation or determination of non-eligibility, ar 33 (b) upon a determination by the Issuer in its sole discretion that (1) the 34 continuation of the book-entry system described in the Resolution, which precludes the 35 issuance of certificates (other than Global Certificates) to any Holder other than the 36 Depository (or its nominee), might adversely affect the interest of the beneficial owners 37 of the Bonds, or (2) that it is in the best interest of the beneficial owners of the Bonds that 38 they be able to obtain certificated bonds. 39 Transfer. This Bond shall be registered in the name of the payee on the books of 40 the Issuer by presenting this Bond for registration to the Bond Registrar, who will endorse his, 41 her or its name and note the date of registration opposite the name of the payee in the certificate 10 12G8773v2 o� _� �� 1 of registration attached hereto. Thereafter this Bond may be transferred by delivery with an 2 assignment duly executed by the Holder or his, her or its legal representatives, and the Issuer and 3 Bond Registrar may treat the Holder as the person exclusively entitled to exercise all the rights 4 and powers of an owner until this Bond is presented with such assignment for registration of 5 transfer, accompanied by assurance of the nature provided by law that the assignment is genuine 6 and effective, and until such transfer is registered on said books and noted hereon by the Bond 7 Registrar, all subject to the terms and conditions provided in the Resolution and to reasonable 8 regulations of the Issuer contained in any agreement with, or notice to, the Bond Registrar. 9 Transfer of this Bond may, at the direction and expense of the Issuer, be subject to certain other 10 restrictions if required to qualify this Bond as being "in registered form" within the meaning of 11 Section 149(a) of the federal Internal Revenue Code of 1986, as amended. 12 Fees upon Transfer or Loss. The Bond Registrar may require payment of a sum 13 sufficient to cover any tax or other governmental charge payable in connection with the transfer 14 or exchange of this Bond and any legal or unusual costs regarding transfers and lost Bonds. 15 Treatment of ReQistered Owner. The Issuer and Bond Registrar may treat the 16 person in whose name this Bond is registered as the owner hereof for the purpose of receiving 17 payment as herein provided (except as otherwise provided with respect to the Record Date) and 18 for all other purposes, whether or not this Bond shall be overdue, and neither the Issuer nor the 19 Bond Registrar shall be affected by notice to the contrary. 20 Authentication. This Bond shall not be valid or become obligatory for any 21 purpose or be entitled to any security unless the Certificate of Authentication hereon shall have 22 been executed by the Bond Registrar. 23 Not Qualified Tax-Exem�t Obli atg ions. The Bonds haue not been designated by 24 the Issuer as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the federal 25 Internal Revenue Code of 1986, as amended. The Bonds do not qualify for such designation. 26 IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things 27 required by the Constitution and laws of the State of Minnesota and the Charter of the Issuer to 28 be done, to happen and to be performed, precedent to and in the issuance of this Bond, have been 29 done, have happened and have been performed, in regular and due form, time and manner as 30 required by law, and that this Bond, together with all other debts of the Issuer outstanding on the 31 date of original issue hereof and on the date of its issuance and delivery to the original purchaser, 32 does not exceed any constitutional or statutory or Charter limitation of indebtedness. 33 IN WITNESS WHEREOF, the City of Saint Paul, Ramsey County, Minnesota, by 34 its City Council has caused this Bond to be executed on its behalf by the photocopied facsimile 35 signature of its Mayor, attested by the photocopied facsimile signature of its Clerk, and 36 countersigned by the photocopied facsimile signature of its Director, Office of Financial 37 Services, the official seal having been omitted as permitted by law. 11 12G8773v2 ��-a�� 1 Date of Registration: 2 3 4 5 BOND REGISTRAR'S 6 CERTIFICATE OF 7 AUTHENTICATION 8 This Bond is one of the 9 Bonds described in the 10 Resolution mentioned 11 within. 12 13 14 15 16 Bond Registrar 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 By Authorized Signature Registrable by: Payable at: CITY OF SAINT PAUL, RAMSEY COUNTY, MINNESOTA Mayor Attest: City Clerk Countersigned: Director, Office of Financial Services General Obligation Capital Improvement Bond, Series 2001A, No. R- 12G8773v2 12 O � -'3 �� CERTIFICATB OF REGISTRATION The transfer of ownership of the principal amount of the attached Bond may be made only by the registered owner or his, her or its ]egal representative last noted below. DATE OF REGISTRATTON SIGNATiJRE OF BOND REGISTRAR 13 12G8773v2 o� -��� REGISTER OF PARTIAL PAYMENTS 3 The principal amount of the attached Bond has been prepaid on the dates and in the amounts 4 noted below: Date Amount Bondholder Bond Re ig strar If a notation is made on this register, such notation has the effect stated in the attached Bond. Partial payments do not require the presentation of the attached Bond to the Bond Registrar, and a Holder could fail to note the partial payment here. 14 1268773v2 o�-��� 1 2 3 4 5 6 7 8 9 10 11 12 13 ABBREVIATIONS The following abbreviations, when used in the inscription on the face of this Bond, shall be construed as though they were written out in full according to applicable laws or regulations: TEN COM - as tenants in common TEN ENT - as tenants by the entireties JT TEN - as joint tenants with right of survivorship and not as tenants in common UTMA - as custodian for (Cust) underthe (Minor) Uniform Transfers to Minors Act (State) Additional abbreviaYions may also be used though not in the above list. 15 12G8773v2 ol-��� ASSIGNMENT 2 For value received, the undersigned hereby sells, assigns and transfers unto 3 the attached 4 Bond and does hereby irrevocably constitute and appoint 5 attorney to transfer the Bond on the books kept for the 6 regislration thereof, with full power of substitution in the premises. 7 8 Notice: The assignor's signature to this assignment must 9 correspond with the name as it appears upon the face of 10 the attached Bond in every particular, without alteration 11 or any change whatever. 12 Signature Guaranteed: 13 14 Signatttre(s) musl be guaranteed by a national bank or trust company or by a brokerage firm 15 having � membership in oiie of the major stock exchanges or any other "Eligible Guarantor 16 InsCit�ition" as defined iii 17 CFR 240.17Ad-15(a)(2). 17 The Bond Registrar will not effect transfer of this Bond unless the information 18 coneeruing the Yransferee requested below is provided. 19 Name 1nd Address: � 21 22 23 (Include information for all joint owners ifthe Bond is held by j oint account.) 16 12G8773v2 .. � o l-'��� ASSIGNMENT 2 3 4 5 6 21 22 23 For value received, the undersigned hereby sells, assigns and transfers unto the attached Bond a d does hereby irrevocably constitute and appoint attorney to transfer the Bond on the books kept for the registratio thereof, with full power of substitution in the premises. 7 8 9 10 il 12 Signature Guaranteed: 13 Notice: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the attached Bond in every particular, without alteration , or any change whatever. 14 Signature(s) must be guaranteed by" , national bank or trust company or by a brokerage firm 15 having a membership in one of the m�`a}pr stock exchanges or any other "Eligible Guarantor 16 Institution" as defined in 17 CFR 240.1�' d-15(a)(2). l 7 The Bond Registrar will not �£€ect transfer of this Bond unless ihe information I8 concerning the transferee requested below is pYy�vided. 19 Name and Address: 20 (Include information for all by joint account.) 1268773v2 E� owners if the Bond is held o� -3�� 1 B. Replacement Bonds. If the City has notified Holders that Replacement Bonds 2 have been made available as provided in paragraph 6, then for every Bond thereafter transferred 3 or exchanged (including an exchange to reflect the partial prepayment of a Global Certificate not 4 previously exchanged for Replacement Bonds) the Bond Registrar shall deliver a certificate in 5 the form of the Replacement Bond rather than the Global Certificate, but the Holder of a Global 6 Certificate shall not otherwise be required to exchange the Global Certificate far one or more 7 Replacement Bonds since the City recognizes that some beneficial owners may prefer the 8 convenience of the Depository's registered ownership of the Bonds even though the entire issue 9 is no longer required to be in global book-entry form. The Replacement Bonds, together with the 10 Bond Registrar's Certificate of Authentication, the form of Assignment and the registration 11 information thereon, shall be in substantially the foliowing form: 17 1268773v2 o� .3�� LTNITED STATES OF AMERICA 2 STATE OF MINNESOTA 3 RAMSEY COUNTY 4 CITY OF SAINT PAUL � 6 7 C] GENERAL OBLIGATION CAPITAL IMPROVEMENT BOND, SERIES 2001A INTEREST MATURITY RATE DATE REGISTERED OWNER: 10 PRINCIPAL AMOUNT: 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 DOLLARS $ CUSIP KNOW ALL PERSONS BY THESE PRESENTS that the City of Saint Paul, Ramsey County, Minnesota (the "Issuer" or "City"), certifies that it is indebted and for value received promises to pay to the registered owner specified above, or registered assigns, in the manner hereinafter set forth, the principal amount specified above, on the maturity date specified above, unless called for earlier redemption, and to pay interest thereon semiannually on March 1 and September 1 of each year (each, an "Interest Payment Date"), commencing September 1, 2001, at the rate per annum specified above (calculated on the basis of a 360-day year of twelve 30-day months) until the principal sum is paid or has been provided for. This Bond will bear interest from the most recent Interest Payment Date to which interest has been paid or, if no interest has been paid, from the date of original issue hereo£ The principal of and premium, if any, on this Bond are payable upon presentation and surrender hereof at the principal office of ,in , (the "Bond Registrar"), acting as paying agent, or any successar paying agent duly appointed by the Issuer. Interest on this Bond will be paid on each Interest Payment Date by check or draft mailed to the person in whose name this Bond is registered (the "Holder" or "Bondholder") on the registration books of the Issuer maintained by the Bond Registrar and at the address appearing thereon at the close of business on the fifteenth day of the calendar month preceding such Interest Payment Date (the "Regular Recard Date"). Any inYerest not so timely paid shall cease to be payable to the person who is the Holder hereof as of the Regular Record Date, and shall be payable to the person who is the Holder hereof at the close ofbusiness on a date (the "Special Record Date") fixed by the Bond Registrar whenever money becomes available for payment of the defaulted interest. Notice of the Special Record Date shall be given to Bondholders not less than ten days prior to the Special Record Date. The principal of and premium, if any, and interest on this Bond are payable in lawful money of the United States of America. 12G8773v2 DATE OF ORIGINAL ISSUE April 1, 2001 IE:� o� �� �� 1 REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF 2 THIS BOND SET FOKTH ON THE REVERSE HEREOF, WHICH PROVISIONS SHALL 3 FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH HERE. 4 IT IS HEREBY CERTIFIED AND I2ECITED that all acts, conditions and things 5 required by the Constitution and laws of the State of Minnesota and the Charter of the Issuer to 6 be done, to happen and to be performed, precedent to and in the issuance of this Bond, ha�e been 7 done, have happened and have been performed, in regular and due form, time and manner as 8 required by law, and that this Bond, together with all other debts of the Issuer outstanding on the 9 date of original issue hereof and on the date of its issuance and delivery to the original purchaser, 10 does not exceed any constitutional or statutory or Charter limitation of indebtedness. 11 IN WITNESS WHEREOF, the City of Saint Paul, Ramsey County, Minnesota, by 12 its City Council has caused this Bond to be executed on its behalf by the original or facsimile 13 signature of its Mayor, attested by the original or facsimile signature of its Clerk, and 14 countersigned by the original or facsimile signature of its Director, Office of Financial Services, 15 the official seal having been omitted as permitted by law. 19 12G8773v2 t�\-'J �\ 1 Date of Registration: 2 � 5 BOND REGISTRAR'S 6 CERTIFICATE OF 7 AUTHENTICATION 8 This Bond is one of the 9 Bonds described in the 10 Resolution rnentioned 11 within. 12 13 14 15 16 Bond Registrar 17 18 19 20 21 22 23 Authorized Signature 12G8773v2 Registrable by: Payable at: CITY OF SAINT PAUL, RAMSEY COUNTY, MINNESOTA Mayor Attest: City Clerk Countersigned: Director, Office of Financial Services 20 O1-'J �\ ON REVERSE OF BOND Date of Payment Not Business Day. If the date for payment of the principal of, premium, if any, or interest on this Bond shall be a Saturday, Sunday, legal holiday or a day on which banking institutions in the City of New Yark, New York, or the city where the principal office of the Bond Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not a Saturday, Sunday, legal holiday or a day on which such banking institutions are authorized to close, and payment on such date shall have the same force and effect as ifmade on the nominal date ofpayment. 9 Redemption. All Bonds ofthis issue (the "Bonds") maturing after March 1, 2009, 10 are subject to redemption and prepayment at the option of the Issuer on such date and on any day 11 thereafter at a price of par plus accrued interest. Redemption may be in whole or in part of the 12 Bonds subject to prepayment. If redemption is in part, those Bonds remaining unpaid may be 13 prepaid in such order of maturity and in such amount per maturity as the City shall determine; 14 and if only part of the Bonds having a common maturity date are called for prepayment, the 15 specifac Bonds to be prepaid shall be chosen by lot by the Bond Registrar. Bonds or portions 16 thereof called for redemption shall be due and payable on the redemption date, and interest 17 thereon shall cease to accrue from and after the redemption date. 18 Notice of Redemption. Mailed notice of redemption shall be given to the paying 19 agent (if other than a City officer) and to each affected Holder of the Bonds. In the event any of 20 the Bonds are called for redemption, written notice thereof will be given by first class mail 21 mailed not less than thiriy (30) days prior to the redemption date to each Holder of Bonds to be 22 redeemed. In connection with any such notice, the "CU5Il"' numbers assigned to the Bonds 23 shall be used. 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 Selection o£ Bonds for Redem�tion. To effect a partial redemption of Bonds having a common maturity date, the Bond Registrar shall assign to each Bond having a common maturity date a distinctive number for each $5,000 of the principal amount of such Bond. The Bond Registrar shall then select by lot, using such method of selection as it shall deem proper in its discretion, from the numbers assigned to the Bonds, as many numbers as, at $5,000 for each mimber, shall equal the principa] amount of such Bonds to be redeemed. The Bonds to be redeemed shall be the Bonds to which were assigned numbers so selected; provided, however, that only so much of the principal amount of such Bond of a denomination of more than $5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. If a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the Issuer or Bond Registrar so requires, a written instrument of transfer in form satisfactory to the Issuer and Bond Registrar duly executed by the Holder thereof or his, her or its attorney duly authorized in writing) and the Issuer shall execute (if necessary) and the Bond Registrar shall authenticate and deliver to the Holder of such Bond, without service charge, a new Bond or Bonds of the same series having the same stated maturity and interest rate and of any authorized denomination or denominations, as requested by such Holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered. 12G8773v2 21 o�-��� 1 Issuance; Purpose; General Obli ag tion. This Bond is one of an issue in the total 2 principal amount of $19,000,000, all of like date of original issue and tenor, except as to number, 3 maturity, interest rate, denomination, and redemption privilege, which Bond has been issued 4 pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, 5 including particularly Laws of Minnesota for 1971, Chapter 773, as amended, and the Charter of 6 the Issuer, and pursuant to a resolution adopted by the City Council of the Issuer on March 28, 7 2001 (the "Resolution"), for the purpose of providing money to finance the acquisition, 8 construction and repair of various capital improvements in the City. This Bond is payable out of 9 the General Debt Service Fund of the Issuer. This Bond constitutes a general obligation of the 10 Issuer, and to provide moneys for the prompt and full payment of its principal, premium, if any, 11 and interest when the same become due, the full faith and credit and taacing powers of the Issuer 12 have been and are hereby irrevocably pledged. 13 Denominations; Exchan�e; Resolution. The Bonds are issuable solely as fully 14 registered bonds in the denominations of $5,000 and integral multiples thereof of a single 15 maturity and are exchangeable far fully registered Bonds of other authorized denominations in 16 equal aggregate principal amounts at the principal office of the Bond Registrar, but only in the 17 manner and subject to the limitations provided in the Resolution. Reference is hereby made to 18 the Resolution for a description of the rights and duties of the Bond Registrar. Copies of the 19 Resolution are on file in the principal office of the Bond Registrar. 20 Transfer. This Bond is transferable by the Holder in person or by his, her or its 21 attorney duly authorized in writing at the principal office of the Bond Registrar upon 22 presentation and surrender hereof to the Bond Registrar, all subject to the terms and conditions 23 provided in the Resolution and to reasonable regulations of the Issuer contained in any 24 agreement with, or notice to, the Bond Registrar. Thereupon the Issuer shall execute and the 25 Bond Registrar shall authenticate and deliver, in exchange for this Bond, one or more new fully 26 registered Bonds in the name of the transferee (but not registered in blank or to "bearer" or 27 similar designation), of an authorized denomination or denominations, in aggregate principal 28 amount equal to the principal amount of this Bond, of the same maturity and bearing interest at 29 the same rate. 30 Fees unon Transfer or Loss. The Bond Registrar may require payment of a sum 31 sufficienY to cover any tax or other governmental charge payable in connection with the transfer 32 or exchange of this Bond and any legal or unusual costs regarding transfers and lost Bonds. 33 Treatment of ReQistered Owner. The Issuer and Bond Registrar may treat the 34 person in whose name this Bond is registered as the owner hereof for the purpose of receiving 35 payment as herein provided (except as otherwise provided on the reverse side hereof with respect 36 to the Record Date) and for all other purposes, whether or not this Bond shall be overdue, and 37 neither the Issuer nor the Bond Registrar shall be affected by notice to the contrary. 38 Authentication. This Bond shall not be valid or become obligatory for any 39 purpose or be entitled to any security unless the Certificate of Authentication hereon shall have 40 been executed by the Bond Registrar. 22 1268773v2 D\-7\\ 1 Not Oualified Tax-Exempt Obli atg ions. The Bonds have not been designated by 2 the Issuer 1s "qualified tax-exempt obligations" far purposes of Section 265(b)(3) of the federal 3 Internal Revenue Code of 1986, as amended. The Bonds do not qualify for such designation. 23 12G8773v2 O\ -��� 1 ABBREVIATIONS 2 The following abbreviations, when used in the inscription on the face of this 3 Bond, shall be construed as though they were written out in full according to applicable laws or 4 regulations: 5 6 7 8 9 10 11 12 13 14 15 TEN COM - as tenants in common TEN ENT - as tenants by the entireties JT TEN - as joint tenants with right of survivorship and not as tenants in common UTMA - as custodian for (Cust) miderthe 12G8773v2 (Minor) Uniform Transfers to Minors Act (State) Additionai abbreviations may also be used though not in the above list. 24 D\ �� ASSIGNMENT 2 For value received, the undersigned hereby sells, assigns and transfers unto 3 the within 4 Bond 1nd does hereby irrevocably constitute and appoint 5 attomey to transfer the Bond on the books kept for the 6 regislraYion thereo£, with full power of substitution in the premises. 7 Dated: 8 Notice: The assignor's signature to this assignment must 9 correspond with the name as it appears upon the face of 10 the within Bond in every particular, without alteration or I 1 any change whatever. 12 SignaYUre Guarat�teed; iic3 14 Signalure(s) musl be guaranteed by a national bank ar trust company or by a brokerage firm 15 having a membership in one of the major stock exchanges ar any other "Eligible Guarantor 16 Institution" as defined in 17 CFR 240.17Ad-15(a)(2). 17 The Bond Registrar wi11 not effect transfer of this Bond unless the information 18 concerning the transferee requested below is provided. 19 Name and Address: 20 21 22 23 24 (Include informaYion for all joint owners if the Bond is held byjoint account.) 25 12G877Jv2 o�-��� 1 2 4 5 6 7 8 9 10 11 12 13 ASSIGNMENT � For value received, the undersigned hereby sells, assigns and transfers unto the attached Boi1d and does hereby irrevocably constitute and appoint attomey to transfer the Bond on the books kept for the registration thereof, with full power of substitution in the premises. Notice: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the attached Bond in every particular, without alteration or any change whatever. Signature Guaranteedi, 14 Signature(s) must be guaranteed by a national banlc or trust company or by a brokerage firm 15 having a membership in one of the major stock exchanges or any other "Eligible Guarantor 16 Institution" as defined in 17 CFR 240.17Ad-15(a)(2). 17 18 19 20 21 22 23 24 The Bond Registrar will not effect transfer of this Bond unless the information concerning the transferee requested befow is provided. Name and Address: (Include information for all joint owners if the Bond is held by joint account.) 12G6773v2 25 C� \ —�\� L� 10 11 12 13 14 15 16 17 18 19 20 21 22 23 10. Execution. The Bonds shall be executed on behalf of the City by the signatures of its Mayor, Clerk and Director, Office of Financia] Services, each with the effect noted on the forms of the Bonds, and be sealed with the seal of the City; provided, however, that the seal of the City may be a printed or photocopied facsimile; and provided further that any of such signatures may be printed or photocopied facsimiles and the corporate seal may be omitted on the Bonds as permitted by law. In the event of disability or resignation or other absence of any such officer, the Bonds may be signed by the manual or facsimile signature of that officer who may act on bel�alf of such absent or disabled officer. In case any such officer whose signature or facsimile of whose signature shall appear on the Bonds shall cease to be such officer before the delivery of the Bonds, such signature ar facsimile shall nevertheless be valid and sufficient for all purposes, the same as if he or she had remained in office until delivery. 11. Authentication; Date of Registration. No Bond shall be valid or obligatory for any purpose or be entitled to any security or benefit under this resolution unless a Certificate of Authentication on such Bond, substantially in the form hereinabove set forth, shall have been duly executed by an authorized representative of the Bond Registrar. Certificates of Authentication on different Bonds need not be signed by the same person. The Bond Registrar sh111 authenticate the signatures of officers of the City on each Bond by execution of the Certificate of Authentication on the Bond and by inserting as the date of registration in the space provided the date on which the Bond is authenticated. For purposes of delivering the original Global Certificates to the Purchaser, the Bond Registrar shall insert as the date of registration the date of original issue, which date is April 1, 2001. The Certificate of Authentication so executed on each Bond shall be conclusive evidence that it has been authenticated and delivered under this resolution. 24 12. Reeistration; Transfer; ExchanQe. The City will cause to be kept at the 25 principal office of the Bond Registrar a bond register in which, subject to such reasonable 26 regulations as the Bond Registrar may prescribe, the Bond Registrar shall provide for the 27 registration of Bonds and the registration of transfers of Bonds entitled to be registered or 28 transferred as herein provided. 29 30 31 32 33 34 35 36 37 38 39 40 41 42 A Global Certificate shall be registered in the name of the payee on the books of the Bond Registrar by presenting the Global Certificate for registration to the Bond Registrar, who will endorse his or her name and note the date of registration opposite the name of the payee in the certificate of registration on the Global Certificate. Thereafter a Global Certi£cate may be transferred by delivery with an assignment duly executed by the Holder or his, her or its legal representative, and the City and Bond Registrar may treat the Holder as the person exclusively entitied to exercise all the rights and powers of an owner until a Global Certificate is presented with such assignment for registration of transfer, accompanied by assurance of the nature provided by law that the assignment is genuine and effective, and until such transfer is registered on said books and noted thereon by the Bond Registrar, all subject to the terms and conditions provided in tl�is resolution and to reasonable regulations of the City contained in any agreement with, or notice to, the Bond Registrar. Transfer of a Global Certificate may, at the direction and expense of the City, be subject to other restrictions if required to qualify the Global Certificates as being "in registered 12G8773v2 26 o�-a�� 1 form" within the meaning of Section 149(a) of the federal Internal Revenue Code of 1986, as 2 amended. 3 If a Global Certificate is to be exchanged for one ar more Replacement Bonds, all 4 of the principal amount of the Global Certificate shall be so exchanged. 5 Upon surrender for transfer of any Replacement Bond at the principal office of 6 the Bond Registrar, the City shall execute (if necessary), and the Bond Registrar shall 7 authenticate, insert the date of registration (as provided in paragraph 11) of, and deliver, in the 8 name of the designated transferee or transferees, one or more new Replacement Bonds of any 9 authorized denomination or denominations of a like aggregate principal amount, having the same 10 stated maturity and interest rate, as requested by the transferor; provided, however, that no bond 11 may be registered in blank or in the name of "bearer" ar similar designation. 12 At the option of the Holder of a Replacement Bond, Replacement Bonds may be 13 exchanged far Replacement Bonds of any authorized denomination or denominations of a like 14 aggregate principal amount and stated maturity, upon surrender of the Replacement Bonds to be 15 exchanged at the principal office of the Bond Registrar. Whenever any Replacement Bonds are 16 so surrendered for exchange, the City shall execute (if necessary), and the Bond Registrar shall 17 authenticate, insert the date of registration of, and deliver the Replacement Bonds which the 18 Holder making the exchange is entitled to receive. Global Certificates may not be exchanged for 19 Global Certificates of smaller denominations. 20 All Bonds surrendered upon any exchange or transfer provided for in this 21 resolution shall be promptly cancelled by the Bond Registrar and thereafter disposed of as 22 directed by the City. 23 All Bonds delivered in exchange for or upon transfer of Bonds shall be valid 24 general obligations of the City evidencing the same debt, and entitled to the same benefits under 25 this resolution, as the Bonds surrendered for such exchange or transfer. 26 Every Bond presented or surrendered for transfer or exchange shall be duly 27 endorsed or be accompanied by a written instrument of transfer, in form satisfactory to the Bond 28 Registrar, duly executed by the Holder thereof or his, her or its attorney duly authorized in 29 writing. 30 The Bond Registrar may require payment of a sum sufficient to cover any ta�c or 31 other governmental charge payable in connection with the transfer or exchange of any Bond and 32 any legal or unusual costs regarding transfers and lost Bonds. 33 Transfers shall also be subject to reasonable regulations of the City contained in 34 any agreement with, or notice to, the Bond Registrar, including regulations which permit the 35 Bond Registrar to close its transfer books between record dates and payment dates. 36 13. Ri¢hts Upon Transfer or Exchange. Each Bond delivered upon transfer of 37 or in exchange for or in lieu of any other Bond shall carry all the rights to interest accrued and 38 unpaid, and to accrue, which were carried by such other Bond. 27 12G8773v2 o�-��� 1 14. Interest Pavment; Record Date. Interest on any Global Certificate shall be 2 paid as provided in the first paragraph thereof, and interest on any Replacement Bond shall be 3 paid on each Interest Payment Date by check or draft mailed to the person in whose name the 4 Bond is registered (the "Holder") on the registration books of the City maintained by the Bond 5 Registrar, and in each case at the address appearing thereon at the close of business on the 6 fifteenth (l Sth) day of the calendar month preceding such Interest Payment Date (the "Regular 7 Record Date"). Any such interest not so timely paid shall cease to be payable to the person who 8 is the Holder thereof as of the Regular Record Date, and shall be payable to the person who is the 9 Holder thereof at the close of business on a date (the "Special Record Date") fixed by the Bond 10 Registrar whenever money becomes available for payment of the defaulted interest. Notice of 11 the Special Record Date shall be given by the Bond Registrar to the Holders not less than ten 12 (10) days prior to the Special Record Date. 13 15. Holders: Treatment of Registered Owner; Consent of Holders. 14 A. For the purposes of all actions, consents and other matters affecting Holders of the 15 Bonds, other than payments, redemptions, and purchases, the City may (but shall not be 16 obligated to) treat as the Holder of a Bond the beneficial owner of the Bond instead of the person 17 in whose name the Bond is registered. For that purpose, the City may ascertain the identity of 18 the beneficial owner of the Bond by such means as the Bond Registrar in its sole discretion 19 deems appropriate, including but not limited to a certificate from the person in whose name the 20 Bond is registered identifying such beneficial owner. 21 B. The City and Bond Registrar may treat the person in whose name any Bond is 22 registered as the owner of such Bond for the purpose of receiving payment of principal of and 23 premium, if any, and interest (subject to the payment provisions in paragraph 14 above) on, such 24 Bond and for all other purposes whatsoever whether or not such Bond shall be overdue, and 25 neither the City nor the Bond Registrar shall be affected by notice to the contrazy. 2G C. Any consent, request, direction, approval, objection ar other instrument to be 2? signed and executed by the Holders may be in any number of concurrent writings of similar tenor 28 and must be signed or executed by such Holders in person or by agent appointed in writing. 29 Proof of the execution of any such consent, request, direction, approval, objection or other 30 instrument or of the writing appointing any such agent and of the ownership of Bonds, if made in 31 the following manner, shall be sufficient for any of the purposes of this resolution, and shall be 32 conclusive in favor of the City with regard to any action taken by it under such request or other 33 instrument, namely: 34 (1) The fact and date of the execution by any person of any such writing may 35 be proved by the certificate of any officer in any jurisdiction who by law has power to 36 take acknowledgments within such jurisdiction that the person signing such writing 37 acknowledged befare him or her the execution thereof, ar by an affidavit of any witness 38 to such execution. 39 (2) Subject to the provisions of subpazagraph (A) above, the fact of the 40 ownership by any person of Bonds and the amounts and numbers of such Bonds, and the 41 date of the holding of the same, may be proved by reference to the bond register. 28 1268773v2 o�-��� 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 16. Delivery; Application of Proceeds. The Global Certificates when so prepared and executed shall be delivered by the Director, Office of Financial Services, to the Purchaser upon receipt of the purchase price, and the Purchaser shall not be obliged to see to the proper application thereof. 17. Fund and Account. There is hereby created a special account to be designated the "Capital Improvement Bonds of 2001A Account" (the "AccounY') to be administered and maintained by the City Treasurer as a bookkeeping account separate and apart from all other accounts maintained in the officiai financial records of the City. There has been heretofore created and established the General Debt Service Fund (mimbered 960, herein the "Fund"). The Fund and the Account shall each be maintained in the manner herein specified until all of the Sonds and the interest thereon haue been fully paid. (i) Account. To the Account there shall be credited the proceeds of the sale of the Bonds, less accrued interest received thereon, and less any amount paid for the Bonds in excess of $18,857,500. From the Account there shall be paid all costs and expenses of making the Improvements, including the cost of any construction contracts heretofore let and all other costs incurred and to be incuned of the kind authorized in Minnesota Statutes, Section 475.65 (including interest on the Bonds payable during the construction period); and the moneys in the Account shall be used for no other purpose except as otherwise provided by law; provided that the proceeds of the Bonds may also be used to the extent necessary to pay interest on the Bonds due prior to the anticipated date of commencement of the collection of taxes levied herein; and provided further that if upon completion of the Improvements there shall remain any unexpended balance in the Account, the balance may be transferred by the Council to the fund of any other improvement instituted pursuant to Laws of Minnesota for 1971, Chapter 773, as amended, or used for any other puipose permitted by law, ar transfened to the Fund. All eamings on the Account shall be transferred to the Fund, or may remain in the Account. (ii) Fund. There is hereby pledged and there shall be credited to the Fund, to a special sinking fund account which is hereby created and established therein for the payment of the Bonds: (a) all accrued interest received upon delivery of the Bonds; (b) all funds paid for the Bonds in excess of $18,857,500; (c) any collections of all taxes which are herein levied for the payment of the Bonds and interest thereon as provided in paragraph 1$; (d) all funds remaining in the Account after completion of the Improvements and payrnent of the costs thereof, not so transferred to the account of another improvement or used for any other purpose permitted by law; (e) all inveshnent earnings on moneys held in said special account in the Fund; and (� any and all other moneys which are properly available and are appropriated by the governing body of the City to said special account in the Fund. 41 Said special account created in the Fund shall be used solely to pay the principal and 42 interest and any premiums for redemption of the Bonds and any other bonds of the City 43 heretofore or hereafter issued by the City and made payable from said special account in the 29 1268773v2 o�-��� 10 11 12 l3 14 15 16 17 Fund as provided by law, ar to pay any rebate due to the United States. No portion of the proceeds of the Bonds shall be used directly or indirectly to acquire higher yielding investments or to replace funds which were used directly or indirectly to acquire higher yielding inveshnents, except (1) for a reasonable temporary period until such proceeds are needed for the purpose for which tl�e Bonds were issued, and (2) in addition to the above in an amount not greater than $100,000. To this effect, any proceeds of the Bonds and any sums from time to time held in the Account or said specia] account in the Fund (ar any other City account which will be used to pay principal or interest to become due on the bonds payable therefrom) in excess of amounts which under then-applicable federal arbitrage regulations may be invested without regard as to yield shall not be invested at a yield in excess of the applicable yield restrictions imposed by said arbitrage regulations on such investments after taking into account any applicable "temporary periods" or "minor porlion° made available under the federal arbitrage regulations. In addition, die proceeds of thc Bonds and money in the Account or the Fund shall not be invested in obligalions or deposits issued by, guaranteed by or insured by the United States or any agency or instrwneutaliCy thereof if and to the extent that such investment would cause the Bonds to be "federally guaranleed" within the meaning of Section 149(b) of the federal Internal Revenue Code of 1986, as amended (the "Code"). 18 18. Tax Levv; Covera e� Test. To provide moneys for payment of the 19 priucipal and intex'esf on the Bonds there is hereby levied upon all of the taacable property in the 20 CiYy a direcC amival ad valorem tax which shall be spread upon the tax rolls and collected with 21 and 1s part of other general property taxes in the City for the years and in the amounts as 22 follows: Year of Tax Lev 2000* 2001 2002 2003 2004 2005 2006 2007 2008 2009 Year of Tax Levy 2001* 2002 2003 2004 2005 2006 2007 2008 2009 2010 Amount $2,607,759* 2,611,403 2,596,204 2,578,170 2,567,802 2,548,875 2,527,350 2,507,138 2,487,975 2,469,600 23 " heretofore levied or provided from other available City funds, including premium received 24 u�oiz sale of lhe bonds 25 The tax levies are such that if collected in full they, together with estimated 26 collections of any other revenues herein pledged for the payment of the Bonds, will produce at 27 leasl five percent (5%) in excess of the amount needed to meet when due the principal and 28 interest plyments on the Bonds. The tax levies shall be irrepealable so long as any of the Bonds 29 are outstai�ding and unpaid, provided that the City reserves the righY and power to reduce the 30 12G8773v2 2 4 5 6 10 11 12 13 14 IS 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Di ��i Fund as provided by law, or to pay any rebate due to the United States. No portion of the roceeds of the Bonds shall be used directly or indirectly to acquire higher yielding investments to replace funds which were used directly or indirectly to acquire higher yielding investments, ex ept (1) for a reasonable temporary period until such proceeds are needed for the puipose for whi the Bonds were issued, and (2) in addition to the above in an amount not greater ihan $] 00, 00. To this effect, any proceeds of the Bonds and any sums from time to time held in the Accoun or said special account in the Fund (or any other City account which will be used to pay principal r interest to become due on the bonds payable therefrom) in excess of amounts which under then- plicable federal arbitrage regulations may be invested without regard as to yield shall not be i vested at a yield in excess of the applicable yield restrictions imposed by said arbihage regul ions on such investments after taking into account any applicable "temporary periods" or "min x portion" made available under the federal arbitrage regulations. In addition, the proceeds of the��, o obligations or deposiF� instrumentality therem "federally guaranteed" Code of 1986, as amer and money in the Account or the Fund shall not be invested in issued by, guaranteed by or insured by the United States or any agency or �if and to the extent that such investment would cause the Bonds to be wi�hin the meaning of Section 149(b) of the federal Internal Revenue ied ���he "Code"). 18. Tax Lev'� principal and interest on the Bo City a direct annual ad valorem and as part of other general pro� follows: Year of Tax Levv 2000• 2001 2002 2003 2004 2005 200G 2007 2008 2009 overage Test. To provide moneys for payment of the there is hereby levied upon all of the taxable property in the ; which shall be spread upon the tax rolls and collected with y���axes in the City for the years and in the amounts as ar o f Tax Levv Amount 1• 2004 2005 200G 2007 2008 2009 2010 � heretofore levied or provided from other available City funds $ The tax levies are such that if collected in full they, toge�her with estimated collections of any other revenues herein pledged for the payment of the Bbnds, least five percent (5%) in excess of the amount needed to meet when due tfi�, p interest payments on the Bonds. The tax levies shall be irrepealable so long as are outstanding and unpaid, provided that the City reserves the right and power levies in the manner and to the extent permitted by Minnesota Statutes, Section Subdivision 3. t2van��z 30 will produce at rincipal and any of the Bonds �to reduce the �, ,, r �4 • �l �\_'>�� levies in tl�e manner and to the exlent permitted by Minnesota SYatutes, Section 475.61, Subdivision 3. 3 19. General Obli�ation Pled�e. For the prompt and full payment of the 4 priucipal and interest on the Bonds, as the same respectively become due, the full faith, credit 5 and taxing powers of the City shall be and are hereby in�evocably pledged. If the balance in the 6 Fund (as defined in paragraph 17 hereo fl is ever insufficient to pay all principal and interest then 7 due on the Bonds payable therefrom, the deficiency shall be promptly paid out of any other funds 8 of the City which are available for such purpose, including the general fund of the City, and such 9 other fimds may be reimbursed with or without interest from the Fund when a sufficient balance 10 is available lherein. i l 20. Certificate of Registration. The Director, Office of Financial Services, is 12 hereby directed to file a certified copy of this resolution with the officer of Ramsey County, 13 Minnesota, performing the fimctions of the county auditar (the "County Auditor"), together with 14 such other information as the County Auditor shall require, and to obtain the County Auditor's 15 certificate ihat the Bonds have been entered in the County Auditor's Bond Register, and that the 16 lax levy requi��ed by law has been made. 17 21. Records and Certificates. The officers of the City are hereby authorized 18 and directed to prepare and fiirnish to the Purchaser, and to the attorneys approving the legality 19 of the issttance of the Bouds, certified copies of all proceedings and recards of the City relating 20 to lhe Bonds and to the Gnancial condition and affairs of the City, and such other affidavits, 21 cerlificales and infornlalion as are required to show the facts relating to the legality and 22 marketabilily of the Bonds as the same appear from the books and records under their custody 23 and control or as otherwise lrnown to them, and all such certified copies, certificates and 24 affidavits, including any heretofore furnished, shall be deemed representations ofthe City as to 25 the facls recited therein. 26 22. Ne�ative Covenants as to Use of Proceeds and Imnrovements. The City 27 hereby covenants not to ttse the proceeds of the Bonds or to use the Improvements, or to cause or 28 permit them to be used, or to enter into any deferred payment arrangements for the cost of the 29 Improvements, in such a manner as to cause the Bonds to be "private activity bonds" within the 30 meaning of Sections 103 and 141 through 150 of the Code. The City reasonably expects that no 31 actious will be taken over the term of the Bonds that woutd cause them to be private activity 32 bonds, and lhe average term of the Bonds is not longer than reasonably necessary for the 33 govermnent�l purpose of the issue. The City hereby covenants not to use the proceeds of the 34 Bonds in such a maimer as to cause the Bonds to be "hedge bonds" within the meaning of 35 Section 149(g) of tl�e Code. 36 23. T1x-Exemnt Status of the Bonds; Rebate; Elections. The City shall 37 comply wifh requirements necessary under the Code to establish and maintain the exclusion from 38 gross income under Section 103 of the Code of the interest on the Bonds, including without 39 limitllion requirements relating to teinporary periods far investments, limitations on amounts 40 iuvested at a yield greater than the yield on the Bonds, and the rebate of excess investment 41 earnings to the United States. 31 izvs775�2 d�-�ii other fund�n ay be reimbursed with or without interest from the Fund when a sufficient balance is available t�erein. - 19. General Obligation Pledee. For the prompt and full payment of the nc�pal and interest on the Bonds, as the same respectively become due, the full faith, credit an taxing powers of the City shall be and are hereby irrevocably pledged. If the balance in the Fun �as defined in paragraph 17 hereo� is ever insufficient to pay all principal and interest then due on`�he Bonds payable therefrom, the deficiency shall be promptly paid out of any other funds of the C�t��+ which are available for such purpose, including the general fund of the City, and such s 9 2Q Certificate of R�istration. The Director, Office of Financial Services, is 10 hereby directed to �le a certified copy of this resolution with the officer of Ramsey County, i l Minnesota, perforniing the functions of the county auditor (the "County Auditor"), together with 12 such other informatio�,as the County Auditor shall require, and to obtain the County Auditor's 13 certificate that the Bonc�� have been entered in the County Auditor's Bond Register, and that the 14 tax levy required by law h�s been made. 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 21. Records and Certificates. The officers of the City are hereby authorized and directed to prepare and furri�sh to the Purchaser, and to the attorneys approving the legality of the issuance of the Bonds, certFfied copies of all proceedings and records of the City relating to the Bonds and to the financial co`t�dition and affairs of the City, and such other affidavits, certificates and information as are required to show the facts relating to the legality and mazketability of the Bonds as the same'appear from the books and records under their custody and control or as otherwise known to theil�, and all such certified copies, certificates and affidavits, including any heretofore furnishLd, shall be deemed representations of the City as to the facts recited therein. � � �, 22. Nccative Covenants as to�Use of Proceeds and Improvements. The City hereby covenants not to use the proceeds of the B�nds or to use the Improvements, or to cause or permit them to be used, or to enter into any deferrek�payment arrange-ments for the cost of the Improvements, in such a manner as to cause the Bontls to be "private activity bonds" within the meaning of Sections ] 03 and 141 through 150 of the C'ode. '1'he City reasonably expects that no actions will be taken over the term of the Bonds that would cause them to be private activity bonds, and the average term of the Bonds is not longer than reasonably necessary for the govemmental purpose of the issue. The Gity hereby covenants not to use ihe proceeds of the Bonds in such a manner as to cause the Bonds to be "hedge bo�ds" within the meaning of Section 149(g) of the Code. ��� 23. Tax-Exempt Status of the Bonds: Rebate; Electioi comply with requirements necessary under the Code to establish and��na gross income under Section 103 of the Code of the interest on the Borid: limitation requirements relating to temporary periods for investments, lii invested at a yield greater than the yield on the Bonds, and the rebate of earnings to the United States. . The City shall itain the exclusion from including without itations on amounts ecess investment 40 The City expects that the two-year expenditure exception to the`��bate 41 requirements may apply to the construction proceeds oFthe Bonds. \. �. \. • �; 31 1268777v2 � `•`\ � \ o�-��� The City expects that the two-year expenditure exception to the rebate requirements may apply to the construction proceeds of the Bonds. If any elections are available now or hereafter with respect to arbitrage or rebate matte�s relating to the Bonds, the Mayor, Clerk, Treasurer and Director, Office of Financial Seivices, or nny of them, are hereby autharized and directed to make such elections as they deem necessary, appropriate or desirable in connection with the Bonds, and all such elections shall be, and sh111 be deemed and treated as, elections of the City. 8 24. No Desianation of Oualified Tax-Exempt Obligations. The Bonds, 9 together with other obligations issued by the City in 2001, exceed in amount those which may be 10 qualified as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the 11 Code, and hence are not designated for such purpose. 12 25. Letter of Representations. The Letter of Representations for the Bonds is 13 hereby confirmed to be the Blanket Issuer Letter of Representations dated April 10, 1996, by the 14 City and received and accepted by The Depository Trust Company. So long as The Depository 15 Trust Company is the Depository or it or its nominee is the Holder of any Global Certificate, the 16 City shall comply with the provisions of the Letter of Representations, as it may be amended ar 17 supplemented Uy lhe City from time to time with the agreement or consent of The Depository 18 Trust Comp�ny. 19 26. Negotiated Sale. The City has retained Springsted Incorporated as an 20 indepei�dent financial advisor, and the City has heretofore determined, and hereby determines, to 21 sell the Bonds by private negotiation, all as provided by Minnesota Statutes, Section 475.60, 22 Subdivision 2O). 23 27. Continuin� Disclosure. The City is an obligated person with respect to the 24 Bonds. The City hereby agrees, in accordance with the provisions of Rule 15c2-12 (the "Rule"), 25 promulgated by the Securities and Exchange Commission (the "Commission") pursuant to the 26 Secttrities Exchange Act of 1934, as amended, and a Continuing Disclosure Undertaking (the 27 "Undertaking") hereinafter described, to: 28 A. Provide or cause to be provided to each nationally recognized municipal 29 sec�irities information repository ("NRMSIR") and to Yhe appropriate state information 30 deposiCory ("SID"), if any, for the State o£Minnesota, in each case as designated by the 31 Commission in accordance with the Rule, certain annual financial information and 32 operating data in accordance with the Undertaking. The City reserves the right to modify 33 firom time to time the terms of the Undertaking as provided therein. 34 B. Provide or cause to be provided, in a timely manner, to (i) each NRMSIR 35 or to the Manicipal Securities Rulemaking Board ("MSRB") and (ii) the SID, notice of 36 the occtn�rence of certain material events with respect to the Bonds in accordance with the 37 Undertal<ing. 38 C. Provide or cause to be provided, in a timely manner, to (i) each NRMSIR 39 or Yo lhe MSRB and (ii) the SID, notice of a failure by the City to provide the annual 40 Fnancial information with respect to the City described in the Undertaking. 32 126R77Jv2 e�_.��� If any elections are available now or hereafter with respect to arbitrage or rebate atters relating to the Bonds, the Mayor, Clerk, Treasurer and Director, Office of Financial Se 'ces, or any of them, are hereby authorized and directed to make such elections as they deem necess , appropriate or desirable in connection with the Bonds, and all such elections shall be, and shall� deemed and treated as, elections of the City. 6 4. No Desienation of Oualified Tax-Exe�t Obli ations. The Bonds, 7 together with ot er obligations issued by the City in 2001, exceed in amount those which may be 8 qualified as "quali ied tax-exempt obligations" within the meaning of Section 265(b)(3) of the 9 Code, and hence a��not designated for such purpose. 10 I1 12 13 14 15 16 25. �Detter of Re ?resentations. The Letter of Representations for the Bonds is hereby confirmed to be t BM lanket Issuer Letter of Representations dated April 10, 1996, by the City and received and acce�ted by The Depository Trust Company. So long as The Depository Trust Company is the Depositpry or it or its nominee is the Holder of any Global Certificate, the City shall comply with the proJi,sions of the Letter of Representations, as it may be amended or supplemented by the City from tii�ie to time with the agreement or consent of The Depository Trust Company. � 17 2G. Neeotiated Sale`�,The City has retained Springsted Incorporated as an 18 independent financial advisor, and the CiEy has heretofore determined, and hereby determines, to 19 sell the Bonds by private negotiation, all as'��rovided by Minnesota Statutes, Section 475.6Q 20 Subdivision 2(9). �, 21 27. Continuin� Disclosure. '�he City is an obligated pecson with respect to the 22 Bonds. The City hercby agrees, in accordance wiY the provisions of Rule 15c2-12 (the "Rule"), 23 promulgated by the Securities and Exchange Com�jssion (the "Commission") pursuant to the 24 Securities Exchange Act of 1934, as amended, and a�ontinuing Disclosure Undertaking (the 25 "Undertaking") hereinafter described, to: ��� 2G 27 28 29 30 31 A. Provide or cause to be provided to ` ch nationally recognized municipal securities information repository ("NRMSIR") and�he appropriate state information depository ("SID"), if any, for the State of Minnesota, � each case as designated by the Commission in accordance with the Rule, certain annualWfinancial information and operating data in accordance with the Undertaking. The C4jty reserves the right to modify from time to time the terms of the Undertaking as provided t�erein. 32 B. Provide or cause to be provided, in a timely ma�er, to (i) each NRM5IR 33 or to the Municipal Securities Rulemaking Board ("MSRB") an �ii) the SID, notice of 34 the occurrence of certain material events with respect to the Bonds� acwrdance with the 35 Undertaking. 36 C. Provide or cause to be provided, in a timely manner, to r each NRMSIR 37 or to the MSRB and (ii) the SID, notice of a failure by the City to provi�the annuai 38 financial information with respect to the City described in the Undertaking. 39 The City agrees that its covenants pursuant to the Rule set forth in this , aragraph 40 27 and in the Undertaking are intended to be for the benefit of the Holders of the Bonds`and shall 32 12G8773v2 o�-��� 1 The City agrees that its covenants pursuant to the Rule set forth in this paragraph 2 27 and in the Uiidertaking are intended to be for the benefit of the Holders of the Bonds and shall 3 be enforceable on behalf of such Holders; provided that the right to enforce the provisions of 4 these covenauts shall be limited to a right to obtain specific enforcement of the City's obligations 5 imder the covenants. 6 The Mayor and Director, Office of Financial Services, or any other officers of the 7 City autliorized to act in their stead (the "Officers"), are hereby authorized and directed to 8 execute ou behalf of the City the Undertaking in substantially the form presented to the City 9 Council, subjecl lo such modifications thereof or additions thereto as are (i) consistent with the 10 requiremevts under the Rule, (ii) required by the Purchaser, and (iii) acceptable to the Officers. 11 28. Severabilitv. If any section, paragraph or provision of this resolution 12 shall be lield to be invalid or unenforceable for any reason, the invalidity or unenforceability of 13 such section, paragraph or provision shall not affect any of the remaining provisions of this 14 resolution. 33 i zes��s�z di-3i� enforceable on behalf of such Holders; provided that the right to enforce the provisions of se covenants shall be limited to a right to obtain specific enforcement of the City's obligations 9erthe covenants. 4 '� The Mayor and Director, Office of Financial Services, or any other officers of the 5 City 8uthorized to act in their stead (the "Officers"), are hereby authorized and directed to 6 execute on behalf of the City the Undertaking in substantially the form presented to the City 7 Council;.�ubject to such modifications thereof or additions thereto as are (i) consistent with the 8 requirements under the Rule, (ii) required by the Purchaser, and (iii) acceptable to the Officers. 9 '. 28. Severabilitv. If any section, paragaph or provision of this resolution 10 shall be held to,.be invalid or unenforceable for any reason, the invalidity or unenforceability of 11 such section, par�graph or provision shall not affect any of the remaining provisions of this 12 resolution. 1 �( �268773v2 t �\ `. k � \ 33 0�-'3�� 29. HeadinQS. Headings in this resolution are included for convenience of reference only and are not a part hereof, and shail not limit or define the meaning of any provision hereof. Adopted by Council: Date�� �,p �-F� a-<� c�� Adoption Certified by Council Secretary By: I \��`\��� � � Approved by Mayor: Date ! 2�� By: � 12G8773v2 34 Reques db r.t�nt f: �'�NAN��A�' ge ��`� 3 �� By:� Form Approved by City Attorney By: �G.'— `�._ � � � /�'- o � for SulSmfssioGfto Council � � of Financial Services BE ON COUNGL TOTAL # OF SIGNATURE PAGES DATEINITIATED ,s,zoo, GREEN SH NUMBERFOR ROUTING o�-��� No 103538 u OEPNRTMENTDIRECTOR `�// f/ u GITYCOUNCIL � CITYATTpRNEY � ❑ CITYCLERK ❑ FINANCIALSERVIGESOIR. ❑ FINANCIALSERVIACQG � MAVOR ❑ 1_ (CLIP ALL LOCATIONS FOR SIGNATURE) iis resolution accepls the wlnning proposal and awards lhe bid for the $19,000,000 G.O. 3pilal Improvemenl Bonds Serles 2007A. Thls is a competitive bond sale and the award going to the bidder found most advantageos (lowest cost) to the City. JUA I IUN HP(1fOVB (H) Of KBJBC[ PLANNING COMMISSION CIB COMMITTEE CIVIL SERVICE COMMISSION PERSONAL SERVICE CONTRACTS MUST ANSWER THE FOLLOWING QUESTlONS: 1. HasthlspersoNfirmeverworkedunderaconlractforthisdepartmenl'7 YES NO 2. Has this persoNfirm ever been a city employee? YES NO 3. Does this persoNFlrm possess a skill not normally possessed by any arrent ciry employee� YES NO 4 Is this persoNfrm a targeted vendoR VES NO 3 PROBLEM ISSUE, OPPOR7UNITV (Who, What, When, Where, Why) are forthe purpose of Ponding the 6ond Mancine potlion ofthe Capllal Improvement Budget. be avallable for the CIB Budget. needed for capltal proJects wlll nol be avalleble. AMOUNT OF TRANSACTION S s�e.o0o.000 FUNDING SOURCE �.��"�}'�� ���������g�� �, � � �6� ��b�� COST/REVENUE BUDGETED (CIRCLE ONE) ACTIVIN NUMBER YES NO INFORMATION (EXPLAIN)