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98-243Councii Fiie # 1 b ay3 A ����.e 1 i y � (�� ' � � � l�\ � ` � 5y � C>reenSheet# `�'���`"1 O��VilV�� RESOLUTION� � �,����j1,`�,w, ts, a-�,a-� n �, , ClTY OF SAINT PAUL, MlNNESOI'A /� Prese�ted By Referred To Committee: Date 1 ACCEPTING PROPOSAI, ON SALE OF 2 $4,700,000 GENERAL OBLIGATION SEWER REVENUE 3 BONDS, SERIES 1998E, AND 4 PROVIDING FOR THEIR ISSUANCE 5 WHEREAS, the Director, Office of Financial Services, 6 has presented proposals received for the sale of $4,700,000 7 General Obligation Sewer Revenue Bonds, Series 1998E (the 8 "Bonds"l, of the City of Saint Paul, Minnesota (the "City"); and 9 WHEREAS, the proposals set forth on Exhibit A attached 10 hereto were received pursuant to the Terms of Proposal at the 11 offices of Springsted Incorporated at 10:30 A.M., Central Time, 12 this same day; and 13 WHEREAS, the Director, Office of Financial Services, 14 has advised this Council that the proposal of 15 U S ��.v�� r �r�c. was found to be the most 16 advantageous a d has recommended that said proposal be accepted; 17 and 18 WHEREAS, the proceeds of the Boncts will finance various 19 improvements to the City's wastewater and storm water systems 20 (the "Improvements"}, for which the City is proceeding pursuant 21 to its Charter and Minnesota Statutes, Chapter 475 and Sections 22 116.19 and 115.46, with any excess to be used for any other 23 purpose permitted by law; and 9207�3.2 °� g'a.`� 3 5 6 7 8 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 WHEREAS, the Bonds will provide money part of the costs of the abatement of combined of making improvements to any utility required abatement; and to pay a11 or sewer overflow and to effect the WFIEREAS� the City has heretofore issued registered obligations in certificated form, and incurs substantial costs associated with their printing and issuance, and substantial continuing transaction costs relating to their payment, transfer and exchange; and WHEREAS, the City has determined that significant savings in transaction costs will result from issuing bonds in "global book-entry form", by which bonds are issued in certificated form in large denominations, registered on the books of the City in the name of a depository or its nominee, and held in safekeeping and immobilized by such depository, and such depository as part of the computerized national securities clearance ancl settlement system (the "National System") registers transfers of ownership interests in the bonds by making computerized book entries on its own books and distributes payments on the bonds to its Participants shown on its books as the ownere of such interests; and such Participants and other banks, brokers and dealers participating in the National System will do likewise (not as agents of the City) if not the beneficial owners of the bonds; and 25 WHEREAS, "Participants" means those financial insti- 26 tutions for whom the Depository effects book-entry transfers and 27 pledges of securities deposited and immobilized with the 28 Depository; and 29 WHEREAS, The Depository Trust Company, a limited 30 purpose trust company organi2ed under the laws of the State of 31 New York, or any of its successors or successors to its functions 32 hereunder (the "Depository"), will act as such depository with 33 respect to Che Bonds except as set forth below, and the City has 34 heretofore delivered a letter of representations tthe "Letter of 35 Representations"} setting forth various matters relating to the 36 Depository and its role with respect to the Bonds; and 37 38 39 40 41 42 43 44 WHEREAS, the City will deliver the Bonds in the form of one certificate per maturity, each representing the entire principal amount of the Bonds due on a particular maturity (each a"Global Certificate"), which single certificate per maturity may be transferred on the City's bond register as required by the Uniform Commercial Code, but not exchanged smaller denominations unless the City determines to issue Replacement Bonds as grovided below; and date for �5 WHEREAS, the City will be able to replace the 26 Depository or under certain circumstances to abandon the "global 92�7a3.2 2 qg--a4 3 1 book-entry form" by permittiag the Global Certificates to be 2 exchanged for smaller denominations typical of ordinary bonds 3 registered on the City's bond register; and "Replacement Bonds" 4 means the certificates representing the Bonds so authenticatecl 5 and delivered by the Bond Registrar pursuant to paragraphs 6 and 6 12 hereof; and 7 WHEREAS, "Holder" as used herein means the person in 8 whose name a Bond is registered on the registration books of the 9 City maintained by the registrar appointed as provided in lo paragraph S(the "Bond Registrar"); and 11 WHEREAS, gross revenues (the "Revenues" as defined in 12 the City's Resolution No. 88-835, adopted May 24, 1988, being 13 referred to herein as the "General Resolution") of the City's 14 storm and sanitary sewer systems, including all piping, pumps, 15 valves, maintenance equipment and buildings, improvements and 16 real and personal property used in connection therewith, and al1 17 funds, accounts, contract rights, permits, authorization, 18 approach and intangibles related thereto (the "Sewer System"), 19 have been pledged to the payment of the City's Sewer Revenue 20 Bonds, Series 1988A, and Sewer Revenue Refunding Bonds, Series 21 1993 (the "Revenue Bonds"), and under the General Resolution the 22 pledge of Revenues to the payment of the Bonds is required to be 23 junior and subordinated to the pledge to the Revenue Bonds; and 24 WIiEREAS, the City has heretofore issued to the PFA its 25 General Obligation Sewer Revenue Note of 1993 (the "1993 Note"), 26 General Obligation Sewer Revenue Note of 1994 (the "1994 Note"), 27 General Obligation Sewer Revenue Note of 1995 (the "1995 Note"), 28 General Obligation Sewer Revenue Note of 1996 (the "1996 Note"), 29 and General Obligation Sewer Revenue Note of 1997 (the "1997 30 Note") and under the resolutions authorizing the issuance of the 31 1993 Note, 1994 Note, 1995 Note, 1996 Note and 1997 Note the 32 pledge of Revenues to the payment of the Bonds may be on a parity 33 of lien with the pledge to the 1993 Note, 1994 Note, 1995 I3ote, 34 1996 Note and 1997 Note; and 35 WHEREAS, the 1993 Note, 1994 Note, 1995 Note, 1996 Note 36 and 1997 Note are collectively referred to herein as the "PFA 37 Notes"; and 38 WHEREAS, Rule 15c2-12 of the Securities and Exchange 39 Commission prohibits "participating underwriters" from purchasing 40 or selling the Bonds unless the City undertakes to provide 41 certain continuing disclosure with respect to the Bonds; and 42 WHEREAS, pursuant to Minnesota Statutes, Section 43 475.60, Subdivision 2(9), public sale requirements do not apply 44 to the Bonds if the City retains an independent financial advisor 45 and determines to sell the Bonds by private negotiation, and the 46 City has instead authorized a competitive sale without 92D703.2 3 �g a�-t3 publication of notice thereof as a form of private negotiation; and 3 WHEREAS, proposals for 4 Springsted Incorporated pursuant 5 Terms of Proposal therein: 6 7 8 9 10 11 12 13 14 15 16 17 1. 8 19 ao 21 22 23 24 25 26 27 28 29 30 31 32 33 � 35 36 37 38 39 40 41 42 43 the Bonds have been solicited by to an Official Statement and NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Saint Paul, Minnesota, as follows: 1. Acceptance of Proposal. The proposal of U.S. Bancorp., Inc. (the "Purchaser"), to purchase $4,700,000 General Obligation Sewer Revenue Bonds, Series 1998E, of the City (the "Bonds", or individually a"Sond"}, in accordance with the Terms of Proposal for the bond sale, at the rates of interest set forth hereinafter, and to pay for the Bonds the sum of $4,639,910.40, plus interest accrued to settlement, is hereby found, 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: Oricrinal Tssue Date: Denominations: Maturities. The Boncls shall be titled "General Obligation Sewer Revenue Bonds, Series 1998E", shall be dated April 1, 1998, 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. G1oba1 Certificates sha11 each be in the denomination of the entire principal amount maturing on a single date, or, if a portion of said principal amount is prepaid, said principal amount less the prepaymenC. Replacement Bonds, if issued as provided in paragraph 6, shall be in the denomination of $5,000 each or in any integral multiple thereof of a single maturity. The Sonds shall mature on December 1 in the years and amounts as follows: Y ar 1999 20�0 2001 2002 2003 2004 2�05 2006 Amount Year Amount 920703.2 $155,000 16a,��0 165,000 175,000 180,000 190,000 195,000 205,000 2007 2��8 2009 2010 2011 2012 2a13 2018 0 $ 215,000 220,OQ0 230,000 240,000 250,000 265,000 275,OOQ 1,580,000 �U r �� / 4 5 6 7 8 1D 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 ;s 3. Purpose. The Bonds shall provide funds for the construction of various improvements to the City's wastewater and storm water systems (the "Improvements"?. The Bonds are issued to aid in financing a sewage disposal system or part thereof pursuant to Minnesota Statutes, Section 115.46. The proceeds of the Bonds shall be deposited and used as provided in paragraph 17, and any excess moneys shall be clevoted to any other purpose permitted by law. The total cost of the Improvements, which shaI1 include a11 costs enumerated in Minnesota Statutas, Section a75.65, is estimated to be at least equal to the amount of the Bonds. Work on the Improvements shall proceed with due diligence to completion. 4. Interest. The Bonds shall bear interest payable semiannually on June 1 and December 1 of each year (each, an °Interest Payment Date"), commencing December 1, 1998, calculated on the basis of a 3&0-day year of twelve 3Q-day months, at the respective rates per annum set forth opposite the maturity years as follows: Maturity Year Interest Rate Maturity Year Interest Rate 1999 2000 2001 2002 2003 2�04 2005 2006 3.70% 3.90 4.10 4.15 4.20 4.3� 4.40 4.45 2Q07 2008 2009 2010 2011 2012 2013 2015 4.50% 4.55 4.65 4.75 4.85 4.95 5.00 5.00 5. Description of the Global Certificates and Global Book-Entry System. Upon their original issuance the Bonds will be issued in the form of a single Global Certificate for each maturit�r, deposited with the Depository by the Purchaser and immobilized as provided in paragraph 6. No beneficial owners of interests in the Bonds wi11 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 participating in the National System. The Depository's book entries of beneficial ownership interests are authorized to be in increments of $5,000 of principal o£ 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 Registrar as paying agent, and in turn by the Bond Registrar 920�03.2 q �-a� 3 1 to the Depository or its nominee as registered owner of the 2 Global Certificates, and the Depository according to the laws and 3 rules governing it wi11 receive and forward payments on behalf of 4 the beneficial owners of the Global Certificates. Payment of principal of, premium, if any, and interest on a Global Certificate may in the City's discretion be made by such other method of transferring funds as may be requested by the Holder of a Global Certificate. 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 � Pursuant to 27 28 29 30 -- - - the request of the Purchaser to the Depository, which raquest is required by the Terms of Proposal, immediately upon the original delivery of the Bonds the Purchaser will deposit the Global Certificates representing all of the Bonds with the Depository. The Global Certificates shall be in typewritten form or otherwise as acceptable to the Depository, shall be registered in the name of the Depository or its nominee and shall be held immobilized from circulation at the offices of the Depository on behalf of the Purchaser and subsequent bondowners. The Depository or its nominee will be the sole holder of record of the Global Certificates and no investor or other party purchasing, selling or otherwise transferring 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, 31 (ii) To any successor of the Depository (or its 32 nominee) or any substitute depository (a '�substitute 33 depository") designated pursuant to clause (iii) of this 34 subparagraph, provided that any successor of the Depository 35 or any substitute degository must be both a"clearing 36 corporation" as defined in the Minnesota Uniform Commercial 37 Code at Minnesota Statutes, Section 336.8-102, and a 38 qualified and registered "clearing agency" as provided in 39 Section 17A of the Securities Exchange Act of 1934, as �0 amended, E1 (iii} To a substitute depository designated by and 2 acceptable to the City upon (a) the determination by the 3 Depository that the Bonds shall no longer be eligible for 4 its depository services or (b) a determination by the City 5 that the Depository is no longer able to carry out its 5 functions, provided that any substitute depository must be 920703.2 � � - �-�.� qualified to act as such, as provided in clause tii? of this subparagraph, or 3 a (iv) To those persons to whom transfer is requested in written transfer instructions in the event that: 5 (a} the Depository shall resign or discontinue 6 its services for the Bonds and the City is unable to 7 locate a substitute depository within two (2) months 8 following the resignation or determination of non- 9 eligibility, or io 11 12 13 14 15 16 17 18 (b1 upon a determination by the City in its sole discretion that (1) the continuation of the book-entry system described herein, which precludes the issuance of certificates (other than Global Certificates) to any Aolder other than the Depository (or its nominee), might adversely affect the interest of the beneficial owners o£ the Bonds, or (2) that it is in the best interest of the beneficial owners of the Bonds that they be ahle to obtain certificated bonds, 19 in either of which events the City shall notify Holders of 20 its determination and of the availability of certificates 21 (the "Replacement Bonds") to Aolders requesting the same and 22 the registration, transfer and exchange of such Bonds will 23 be conducted as provided in paragraphs 9B and 12 hereof. z� 25 26 27 28 29 3Q 31 32 33 34 35 36 37 38 39 40 41 42 43 44 In the event of a succession of the Depository as may be authorized by this paragraph, the Bond Registrar upon presentation of Global Certificates sha11 register their trans�er to the substitute or successor depository, and Che substitute or successor depository shall be treated as the Depository for all purposes and £unctions under this resolution. The Letter of Representations sha11 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. Redemption. (a) Optional Redemption. All Bonds maturing after December 1, 2006, 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 prepaymenC. 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 (treating amounts scheduled for mandatory redemption as maturities); 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 920703.2 �1 K -a-�l 3 1 principal and, if applicable, the specific Replacement Bonds to 2 be prepaid shall be chosen by lot by the Bond Registrar. 3 (b) Scheduled Mandatorv Redemption. Term Bonds 4 the year 2018 are subject to redemption and prepayment 5 December 1 in the years 2014 through 2017, inclusive, 6 of par plus accrued interest, without premium, in the amounts set forth below: Year 9 10 11 12 13 2014 2015 2016 2017 2018 Amount $290,000 300,�00 315,000 330,000 345,000 (Maturity) maturing in on each at a price years and 14 (c) Due Date. Bonds or portions thereof called for 15 redemption shall be due and payable on the redemption date, and 16 interest thereon shall cease to accrue from and after the 17 redemption date. 18 (d} Notation on Global Certificate. Upon a reduction in 19 the aggregate principal amount of a Global Certificate, the 20 Holder may make a notation of such redempCion on the panel 21 provided on the Global Certificate stating the amount so 22 redeemed, or may return the Global Certificate to the Bond 23 Registrar in exchange for a new Global Certificate authenticated 24 by the Bond Registrar, in proper principal amount. Such 25 notation, if made by the Holder, sha11 be for reference on1y, and 26 may not be relied upon by any other person as being in any way 27 determinative of the principal amount of such Global Certificate 28 outstanding, unlesa the Bond Registrar has signed the appropriate 29 column o£ the panel. � 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 (e? Selection of Replacement Bonds. To effect a partial redemption of Replacement Bonds having a common maturity date, the Bond Registrar prior to giving notice of redemption shall assign to each Replacement Bond having a common maturity date a distinctive number for each $5,000 of the principal amount of such Replacement Bond. The Sond Registrar sha11 then select by lot, using such method oP selection as it shall deem proper in its discretion, from the numbers so assigned to such Replacement Bonds, as many numbers as, at $5,000 for each number, shall equal the principal amount of such Replacement Bonds to be redeemed. The Replacement Bonds to be redeemed shall be the Replacement Bonds to which were assigned numbers so selected; provided, however, that only so much of the principal amount of each such Replacement Bond of a denomination of more than $5,000 shall be redeemed as shall equal $5,000 for each numbar assigned to it and so selected. 920703.2 �1�" 1 2 3 4 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 (f) Partial Redemption Qf Re�lacement Bonds. I£ 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 £orm satisfactory to the City and Bond Registrar duly executed by the Holder thereof or his, her or its attorney duly autharized in writing) and the City sha11 execute (if necessary) and the Bond Reqistrar sha11 authenticate and deliver to the Holder of such Replacement Bond, without service charge, a new Replacemen� 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. (g) Request for Redem�tion. The Bond Registrar shall call Bonds for redemption and payment as herein provided upon receipt by the Bond Registrar at least forty-five (45) days prior to the redemption date of a request of the City, in written form if the Bond Registrar is other than a City officer. Such request shall specify the principal amount of Bonds to be called for redemption and the redemption date. {h) Notice. Mailed notice of redemption shall be given 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 of the City of its intention to redeem and pay such Bonds at office of the Bond Registrar. Notice of redemption shall be to name the 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. Al1 notices of redemption shall state: (i) (ii) The redemption date; The redempCion price; 35 (iii) If less than all outstanding Bonds are to be 36 redeemed, the identiPication tand, in the case of partial 37 redemption, the respective principal amounts) of the Bonds 38 to be redeemed; 39 (iv) That on the redemption date, the redemption price 4o will become due and payable upon each such Bond, and that 41 interest thereon shall cease to accrue from and after said 42 date; and 43 (v) The place where such Bonds are to be surrendered 44 for payment of the redemption price (which shall be the 45 office of the Bond Registrar). 920703.2 9 ��-a�� 1 2 3 4 5 6 7 8 9 lo 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 (i) Natice to Depasitorv. Notices to The Depository Trust Company or its nominee shall contain the CUSIP numbers of the Bonds. If there are any Holders of the Bonds other than the Depository or its nominee, the Bond Registrar shall use its best efforts to deliver any such notice to the Depository on the business day next preceding the date of mailing of such notice to all other Holders. 8. Bond ReQistrar. First Trust National Association, in Saint Paul, Minnesota, is appointed to act as bond registrar and transfer agent with respect to the Bonds (the "Bond Registrar"), and shall do so unless and until a successor Bond Registrar is duly appointed, all pursuant to any contract the City and Bond Registrar shall execute which is consistent herewith. A successor Bond Registrar shall be an officer of the City or a bank or trust company eligible for designation as bond registrar pursuant to Minnesota Statutes, Chapter 475, and may be appointed pursuant to any contract the City and such successor Bond Registrar shall execute which is consistent herewith. The Bond Registrar shall also serve as paying agent unless and until a successor paying agent is duly appointed. Principal and interest on the Bonds shall be paid to the Aolders (or record holdersl of the Bonds in the manner set forth in the forms of Bond and paragraph 14 of this resolution. 9. Forms of Bond. The Bonds sha11 be in the form of Global Certificates unless and until Replacement Bonds are made available as provided in paragraph 6. Bach form of bond may contain such additional or different terms and provisions as to the form of payment, record date, notices and other matters as are consistent with the Letter of Representations and approved by the City Attorney. 31 A. Global Certificates. The Global Certi£icates, 32 together with the Certificate of Registration, Che Register of 33 Partial Payments, the form of Assignment and the registration 34 information thereon, shall be in substantially the following form 35 and may be typewritten rather than printed: 42�703.2 10 °l�-a.L1� 1 2 3 4 5 R- UNITED STATES.OF AMERICA STATE OF MINNESOTA RAMSEY COUNTY CITY OF SAINT PAUL b GENERAL OBLIGATION SEWER REVENUE � BOND, SERIES 1998E 8 INTEREST 9 RATE 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 i3 14 5 6 7 8 MATURITY DATE December 1, REGISTERED OWNER: PRINCIPAL AMOUNT: CUSIP 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 or 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 June 1 and December 1 of each year (each, an "Interest Payment Date"), commencing December 1, 1998, 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 ancl premium, 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, or 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 on1y, 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 DATE OF ORIGINAL ISSUE April 1, 1998 920703.2 �-�- `�$��N� 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Registrar has signed the appropriate column of the panel. Interest on this Bond will be paid on each Interest Payment Date in same-day £unds by 2:30 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 Date (the "Regular Record Date"). Interest payments shall be received by the Holder no later than 2:30 p.m., Eastern time; and principal and premium payments shall he received by the Holder no later than 2:30 p.m., Eastern time, if the Bond is surrendered for payment enough in advance to permit payment to be made by such time. Any interest 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 of business on a date (the "Special Record Date") fixed by the Bond Reqistrar 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. 23 Date of Pavment Not Business Dav. If the date for 24 payment of the principal of, premium, if any, or interest on this 25 8ond shall be a Saturday, Sunday, 1ega1 holiday or a day on which 26 banking institutions in the City o£ New York, New York, or the 27 city where the principal office of the Bond Registrar is located 28 are authorized by law or executive order to close, then the date 29 for such payment shall be the next succeeding day which is not a 30 Saturday, Sunday, legal holiday or a day on which such banking 31 institutions aze authorized to close, and payment on such date 32 shall have the same force and effect as if made on the nominal 33 date of payment. 34 Optional Redemotion. All Bonds of this issue ithe 35 "Bonds") maturing after December 1, 2006, are subject to 36 redemption and prepayment at the option of the Issuer on such 37 date and on any day thereafter at a price of par plus accrued 38 interest. Redemption may be in whole or in part of the Bonds 39 subject to prepayment. If redemption is in part, those Bonds 40 remaining unpaid may be prepaid in such order of maturity and in 41 such amount per maturity as the City shall determine (treating 42 amounts scheduled for mandatory redemption as maturities); and if 43 only part of the Bonds having a common maturity date are called 44 for prepayment, this Bond may be prepaid in $5,006 increments of 45 principal. 46 Scheduled Mandatory Redemption. The Bonds maturing in 47 the year 2018 shall be redeemed and prepaid on each December 1 in 48 the years 2014 through 2017, inclusive, at a price of par plus s2o�os.z 12 �'k� 1 accrued interest, without premium, in the years and amounts set 2 forth below: 3 4 5 6 Year 2014 2015 2016 2017 2018 Amount $290,000 300,000 315,000 330,000 345,000 9 Due Date. Bonds or portions 10 re@emption sha11 be due and payable on 11 interest thereon shall cease to accrue 12 redemption date. tMaturity) thereof called for the redemption date, and from and after the 13 Notice of Redemption. Mailed notice of redemption 14 shall be given to the paying agent (if other than a City officer} 15 and to each affected Holder of the Bonds. In the event any of 16 the Bonds are called for redemption, written notice thereof will 17 be given by first class mail mailed not less than thirty (30� 18 days prior to the redemption date to each Iiolder of Bonds to be 19 redeemed. In connection with any such notice, the "CUSIP" 20 numbers assigned to the Bonds shall be used. 21 Re_placement or Notation of Sonds after Partial 22 Redemption. Upon a partial redemption of this Bond which results 23 in the stated amount hereof being reduced, the Holder may in its 24 discretion make a notation on the panel provided herein of such 25 redemption, stating the amount so redeemed. Such notation, if 26 made by the Aolder, sha11 be for reference only, and may not be 27 relied upon by any other person as being in any way determinative 28 of the principal amount of the Bond outstanding, unless the Bond 29 Registrar has signed the appropriate column of the panel. 30 Otherwise, the Holder may surrender this Bond to the Bond 31 Registrar (with, if the Issuer or Sond Registrar so requires, a 32 written instrument of transfer in form satisfactory to the Issuer 33 and Bond Registrar duly executed by the Holder Chereof or his, 34 her or its attorney duly authorized in writing? and the Issuer 35 shall execute (if necessary) and the Bond Registrar shall 36 authenticate and deliver to the Holder of such Bond, without 37 service charge, a new Bond of the same series having the same 38 stated maturity and interest rate and of the authorized 39 denomination in aggregate principal amount equal to and in �0 exchange for the unredeemed portion of the principal of the Bond �l so surrendered. 2 Issuance: Purbose; General Obligation. This Bond is 3 one af an issue in the total principal amount of $4,700,000, all 4 oP like date of original issue and tenor, except as to number, 5 maturity, interest rate, denomination, and redemption privilege, 5 which Bond has been issued pursuant to and in full conformity 9ao7os.z 13 ��-a�� 4 5 6 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 41 42 43 44 45 46 47 48 with the Constitution and laws of the State o£ Minnesota, including particularly Minnesota Statutes, Chapter 475 and Sections 116.19 and 115.46, and the Charter of the Issuer, and pursuant to a resolution adopted by the City Council of the Sssuer on April l, 1998 (the "Resolution"), for the purpose of providing money to finance the acquisition, construction and repair of various improvements to the City's wastewater and sCorm water systems. This Bond is payable out of the General Obligation Bond Debt Service Account of the Sewer Service Enterprise Fund of the City, to which account have been pledged net revenues of the City's sewer system. This Bond has been issued to aid in financing a sewage disposal system or part thereof pursuant to Minnesota Statutes, Section 115.46. 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 £ull faith and credit and taxing powers of the Issuer have been and are hereby irrevocably pledged. Denominations; Exchanqe; 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 issuable 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 Sond 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. Re.placement Sonds. Replacement Bonds may be issued by the Issuer in the event that: (a) the Depository shall resign or discontinue its services for the Sonds, and only if the Issuer is unable to locate a substitute depository within two (2) months following the resignation or determination of non- eligibility, or (b) upon a determination by the Issuer in its sole discretion Chat (1) the continuation of the book-entry system described in the Resolution, which precludes the issuance of certificates (other than Global Certificates) to 920703.2 � � �''a 1 2 3 4 5 6 7 8 9 10 11 iz 13 14 15 16 17 18 19 20 21 22 23 24 25 26 any Holder other than the Depository (or its nominee), might adversely affect the interest of the beneficial owners of the Bonds, or (2) that it is in the best interest of the beneficial owners of the Bonds that they be able to obtain certificated bonds. Transfer. This Bond shall be registered in the name of the payee on the books of the Issuer by presenting this Bond for registration to the Bond Registrar, who will endorse his, her or its name and note the date of registration opposite the name of the payee in the certificate of registration attached hereto. Thereafter this Bond may be transferred by delivery with an assignment duly executed by the Aolder or his, her or its legal representatives, and the Issuer and Bond Registrar may treat the Holder as the person exclusively entitled to exercise all the rights and powers of an owner until this Sond 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 hereon by the Bond Registrar, all subject to the terms and conditions provided in the Resolution and to reasonable regulations of the Issuer contained in any agreement with, or notice to, the Bond Registrar. Transfer of this Bond may, at the direction and expense of the Tssuer, be subject to certain other restrictions if required to qualify this Bond as being "in registered form" within the meaning of Section 149(a) of the federal Internal Revenue Code of 1986, as amended. 27 Fees unon Transfer or Loss. The Bpnd Registrar may 28 require payment of a sum sufficient to cover any tax or other 29 governmental charge payable in connection with the transfer or 30 exchange of this Sond and any legal or unusual costs regarding 31 transfers and lost Bonds. 32 Treatment of Registered Owner. The Issuer and Bond 33 Registrar may treat the person in whose name this Bond is 34 registered as the owner hereof for the purpose of receiving 35 payment as herein provided (except as oCherwise provided with 36 respect to the Record Date) and for all other purposes, whether 37 or not this Sond sha11 be overdue, and neither the Issuer nor the 38 Bond Registrar shall be affected by notice to the contrary. 39 Authentication This Bond shall not be valid or become 40 obligatory for any purpose or be entitled to any security unless 41 the Certificate of Authentication hereon sha11 have been executed 42 by the Bond Registrar. 43 Not Oualified Tax-Exem_pt Obliaations. The Bonds have 44 not been designated by the Issuer as '�qualified tax-exempt 45 obligations" for purposes of Section 265(b)(3) of the federal 46 Internal Revenue Code of 1986, as amended. The Bonds do not 47 qualify for such designation. 920703,2 ].5 °l� -a.� 3 5 6 7 B 9 1Q 11 12 13 1§ 15 16 17 18 19 20 21 22 23 24 IT IS HEREBY CERTIFIED AND RECITED that al1 acts, conditions and things required by the Constitution and laws of the State of Minnesota and the Charter of the Issuer to be done, to happen and to be performed, precedent to and in the issuance of this Bond, have been done, have happened and have been performed, in regular and due form, time and manner as required by law; that the City has covenanted and agreed with the holder of this Bond that it wi11 impose and collect charges £or the service, use and availability of and connection to its municipal sewer system at the times and in amounts necessary to produce gross revenues adequate to pay all principal and interest when due on this Bond; that the City will levy a direct, annual, irrepealable ad valorem tax upon all of the taxable property in the City, without limitation as to rate or amount, for the years and in amounts sufficient to pay the principal of and interest on this Bond as they respectively become due, if the gross revenues from said municipal sewer system and any other revenues irrevocably appropriated to said General Obligation Bond Debt Service Account are insufficient therefor; and that this Bond, together with all other debts of the Issuer outstanding on the date of original issue hereof and on the date of its issuance and delivery to the original purchaser, does not exceed any constitutional or statutory or Charter limitation of indebtedness. 25 IN WITNESS WHEREOF, the City of Saint Paul, Ramsey 26 County, Minnesota, by its City Council has caused this Bond to be 27 executed on its behalf by the photocopied facsimile signature of 2& its Mayor, attested by the photocopied facsimile signature of its 29 Clerk, and countersigned by the photocopied facsimile signature 30 of its Director, Office of Financial Services, the official seal 31 having been omitted as permitted by law. 92D703.2 �-6 �t� -a'�� 1 2 3 4 Date of Registration: Registrable by: 5 BQND REGISTRAR'S 6 CERTIFICATE OF 7 AUTHENTICATIOI3 8 This Bond is one of the 9 Bonds described in the 10 Resolution mentioned 11 within. 12 13 14 , 15 Bond Registrar 16 17 18 19 20 By Authorized Signature Payable at: CITY OF SAII3T PAUL, RAMSEY COUNTY, MINNESOTA Mayor Attest: City Clerk Countersigned: Director, Office of Financial Services 21 General Obligation Sewer Revenue Bond, Series 1998E, No. R- 920703.2 17 q � -�.4 � 1 2 3 4 5 6 7 3 0 10 11 12 13 CERTSFICATE OF REGISTRATION The transfer of ownership of the principal amount of the attached Hond may be made only by the registered owner or his, her or its legal representative last noted below. DATE OF REGISTRATION REGISTERED OWNER SIGNATURE OF BOND REGISTRP.R 920703.2 m ° � 1 REGISTER OF PARTIAL PAYMENTS 2 The principal amount of the attached Bond has been prepaid on the 3 dates and in the amounts noted below: y Signature of Signature of 5 Date Amount Bondholder Bond Reaistrar 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 If a notation is made on this register, such notation has the 23 effect stated in the attached Bond., Partial payments do not 24 require the presentation of the attached Bond to the Bond 25 Registrar, and a Holder could fail to note the partial payment ?6 here. 92�703.2 �-9 a�-a�� 1 2 3 4 ABBREVIATIONS The following abbreviations, when used in the inscrigtion on the face of this Bond, sha11 be construed as though they were written out in full according to applicable laws or regulations: 5 TEN COM 6 TEN ENT 7 JT TEN 8 9 UTMA - 10 il 12 13 14 - as tenants in common - as tenants by the entireties - as joint tenants with right of survivorship and not as tenants in common as custodian for (Cust? (Minor) under the Uniform Transfers to Minors Act (State) Additianal abbreviations may also be used though not in the above list. 92�703.2 z 0 °t�-ay� F� AS S IGNMEN`P 2 For value received, the undersigned hereby sells, 3 assigns and transfers unto 4 the attached Bond and does 5 hereby irrevocably constitute and appoint y attorney to transfer the Bond on the 7 books kept for the registration thereof, with full power of 8 substitution in the premises. 9 Dated: 10 Notice: The assignor's signature to this 11 assignment must correspond with the name 12 as it appears upon the face of the 13 attached Bond in every particular, 14 without alteration or any change 15 whatever. 16 Signature Guaranteed: 17 18 Signature(s} must be guaranteed by a national bank or trust 19 company or by a brokerage firm having a membership in one of the 20 major stock exchanges or any other "Eligible Guarantor 21 Institution" as defined in 17 CFR 240.17Ad-15(a)(2). 22 The Bond Registrar will not effect transfer of this 23 Bond unless the information concerning the transferee requested 24 below is provided. 25 Name and Address: 26 27 28 29 36 (Include information for all joint owners if the Bond is held by joint accoun�.) s2o�oa.z 2 1 �t�-a� 3 1 B. Renlacement Bonds. If the City has notified 2 Holders that Replacement Bonds have been made available as 3 provided in paragraph 6, then for every Bond thereafter 4 transferred or exchanged (including an exchange to reflect the 5 partial prepayment of a Global Certificate not previously 6 exchanged for Replacement Bonds) the Bond Registrar shall deliver 7 a certificate in the form of the Replacement Bond rather than the 8 Global Certificate, but the Holder of a Global Certificate shall 9 not otherwise be required to exchange the Global Certificate for 10 one or more Replacement Bonds since the City recognizes that some 11 beneficial owners may prefer the convenience of the Depository's 12 registered ownership of the Bonds even though the entire issue is 13 no longer required to be in global book-entry form. The 14 Replacement Bonds, together with the Bond Registrar's Certificate 15 of Authentication, the form of Assignment and the registration 16 information thereon, shall be in substantially the following 17 form: 920703.2 2 2 qg"�' 1 UNITED STATES OF AMERICA 2 STATE OF MINNESOTA 3 RAMSEY COUNTY 4 CITY OF SAINT PAUL 5 R- g GENERAL OBLIGATION SEWER REVENtTE 7 BOND, SERIES 1998E 8 INTEREST MATURITY DATE OF 9 RA2'E DATE ORIGINAL ISSUE CUSIP 10 Apri1 1, 1998 11 12 13 14 15 16 17 1$ 19 20 21 22 23 24 as 26 27 28 29 30 31 32 33 34 35 i6 i7 �g 9 1 2 3 REGISTERED OTdNER: PRINCIPAL AMOUNTc DOLLARS KNOW ALL PERSONS BY THESE PRESENTS that the City of Saint Paul, Ramsey Count}r, 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 June 1 and December 1 of each year (each, an "Interest Payment Date"), commencing December 1, 1998, 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 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 successor paying agent duly appointed by the Issuer. Interest on this Bond will be gaid 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 olose of business on the fifteenth day of the calendar month preceding such Interest Payment Date (the "Regular Record Date"). Any interest not so timely paid shall cease to be payable to the person who is the Fiolder hereof as of the Regular Record Date, and sha11 be payable to the person who is the Holder hereof at the close of business on a date (the "Special Record Date") fixed by the Bond Registrar whenever money becomes available for 920703.2 Z 3 qg-�`� 1 payment of the defaulted interest. Notice of the Special Record 2 Date shall be given to Bondholders not less than ten days prior 3 to the Special Record Date. The principal of and premium, if 4 any, and interest on this Bond are payable in lawful money of the 5 United States of America. 6 REFERENCE IS HEREBY MADE TO THE FURTAER PROVISIONS OF 7 THIS BOND SET FORTH ON THE REVERSE HEREOF, WHICH PROVISIONS SHALI, 8 FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH HERE. 9 10 11 12 13 14 15 16 17 1S 19 20 21 22 23 24 25 26 27 28 29 30 31 32 IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota and the Charter of the Issuer to be done, to happen and to be performed, precedent to and in the issuance of this Bond, have been done, have happened and have been performed, in regular and due form, time and manner as required by law; that the City has covenanted and agreed with the holder of this Bond that it will impose and collect charges for the service, use and availability of and connection to its municipal sewer system at the times and in amounts necessary to produce gross revenues adequate to pay all principal and interest when due on this Bond; that the City will levy a direct, annual, irrepealable ad valorem tax upon all of the taxable property in the City, without limitation as to rate or amount, for the years and in amounts sufficient to pay the principal of and interest on this Bond as they respectively become due, if the gross revenues from said municipal sewer system and any other revenues irrevocably appropriated to said General Obligation Bond Bebt Service Account are insufficient therefor; and that this Bond, together with all other debts of the Issuer outstanding on the date of original issue hereof and on the date of its issuance and delivery to the original purchaser, does not exceed any constitutional or statutory or Charter limitation of indebtedness. 33 IN WITNESS WHEREOF, the City of Saint Paul, Ramsey 34 County, Minnesota, by its City Council has caused this Bond to be 35 executed on its behalf by the original or facsimile signature of 36 its Mayor, attested by the original or facsimile signature of its 37 Clerk, and countersigned by the original or facsimile signature 38 of its Director, Office of Financial Services, the official seal 39 having been omitted as permitted by law. 920703.2 2 4 q��ly� 1 2 3 4 Date of Registration: 5 BOND REGISTRAR'S 6 CERTIFICATE OF 7 AITTHENTICATION 8 This Bond is one of the 9 Bonds described in the 10 Resolution mentioned 11 within. 12 13 14 , 15 Bond Registrar 16 17 18 19 By Authorized Signature 920703.2 Registrable by: Payable at: _ CIfiY OF SAINT PAUL, RAMSEY COUNTY, MINNESOTA Mayor Attest: City Clerk Countersigned: Director, Office of Financial Services 25 qg-�y� 1 ON REVERSE OF BOND 2 Date of Payment Not Business Day. If the date for 3 payment of the principal of, premium, if any, or interest on this 4 Bond sha11 be a Saturday, Sunday, legal holiday or a day on which 5 banking institutions in the City of New York, New York, or the 6 city where the principal office of the Bond Registrar is located 7 are authorized by 1aw or executive order to close, then the date 8 for such payment shall be the next succeeding day which is not a 9 Saturday, Sunday, legal holiday or a day on which such banking 10 institutions are authorized to close, and payment on such date 11 shall have the same force and effect as if made on the nominal 12 date of payment. 13 Optional Redemption. All Bonds of this issue (the 14 "Bonds") maturing after December 1, 2006, are subject to 15 redemption and prepayment at the option of the Issuer on such 16 date and on any day thereafter at a price of par plus accrued 17 interest. Redemption may be in whole or in part of the Bonds 18 subject to prepayment. If redemption is in part, those Bonds 19 remaining unpaid may be prepaid in such order of maturity and in 20 such amount per maturity as the City shall determine (treating 21 amounts scheduled for mandatory redemption as maturities); and if 22 only part of the Bonds having a common maturity date are called 23 for prepayment, the specific Bonds to be prepaid shall be chosen 24 by lot by the Bond Registrar. 25 26 27 28 29 30 31 32 33 34 35 Scheduled Mandatory Redemption, The Bonds maturing in the year 2018 shall be redeemed and prepaid on each December 1 in the years 2�14 through 2017, inclusive, at a price o� par plus accrued interest, without premium, in the years and amounts set forth below: Year 2014 2015 2016 2017 2018 Amount $290,000 300,000 315,000 330,000 345,OD0 (Maturity) 36 ' Due Date. Bonds or portions 3'I redemption shall be due and payable on 38 interest thereon shall cease to accrue 39 redemption date. 40 41 42 43 44 45 46 47 thereof called for the redemption date, and from and after the Notice of Redemption. Mailed notice of redemption sha11 be given to the paying agent (if other than a City officer) and to each affected Holder of the Bonds. In the event any of the Bonds are called for redemption, written notice thereof will be given by first class mail mailed not less than thirty (30l days prior to the redemption date to each Holder of Bonds to be redeemed. In conneetion with any such notice, the "CtISIP" numbers assigned to the Bonds shall be used. szo�os.z 2 6 �l �' - ay� 2 3 4 9 10 11 12 13 14 15 16 1'7 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 a - 7 48 49 ' Selection of Bonds for Redemption. 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 number, shall equal the principal 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 o£ such Bond of a denomination of more than $5,000 shall be redeemed as sha11 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 sha11 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. Issuance; Purpose; General Obliaation. This Sond is one of an issue in the total principal amount of $4,700,000, 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 Mittnesota, including particularly Minnesota Statutes, Chapter 475 and Sections 116.19 and 115.46, and the Charter of the Issuex, and pursuant to a resolution adopted by the City Council of the Issuer on April 1, 1998 (the "Resolution"}, for the purpose of providing money to finance the acquisition, construction and repair of various improvements to the City's wastewater and storm water systems. This Bond is payable out the General Obligation Bond Debt Service Account of the Sewer Service Enterprise Fund of the City, to which account have been pledged net revenues of the City's sewer system. This Bond has been issued to aid in financing a sewage disposal system or part thereof pursuant to Minnesota Statutes, Section 115_46. This Sond 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 full faith and credit and taxing powers of the Issuer have been and are hereby irrevocably pledged. 920703.2 2 7 q�-��� 1 Denominations: Exchanc�e; ResoluCion. The Bonds are 2 issuable solely as fully registered bonds in the denominations of 3 $5,000 and integral multiples thereof of a single maturity and 4 are exchangeable for fully registered Bonds of other authorized 5 denominations in equal aggregate principal amounts at the 6 principal office o£ the Bond Registrar, but only in the manner 7 and•subject to the limitations provided in the Resolution. 8 Reference is hereby made to the Resolution for a description of 9 the rights and duties of the Bond Reqistrar. Copies of the 10 Resolution are on file in the principal office of the Bond 11 Registrar. 12 Transfer. This Bond is transferable by the Holder in 13 person or by his, her or its attorney duly authorized in writing 14 at the principal office of the Bond Registrar upon presentation 15 and surrender hereof to the Bond Registrar, all subject to the 16 terms and conditiotts provided in the Resolution and to reasonable 17 regulations of the Issuer contained in any agreement with, or 18 notice to, the Hond Registrar. Thereupon Che Issuer shall 19 execute and the Bond Registrar shall authenticate and deliver, in 20 exchange for this Bond, one or more new fully registered Bonds in 21 the name o£ the transferee (but not registered in blank or to 22 "bearer" or similar designation), of an authorized denomination 23 or denominations, in aggregate principal amount equal to the 24 principal amount o£ this Bond, of the same maturity and bearing 25 interest at the same rate. 26 Fees upon Transfer or Loss. The Bond Registrar may 27 require payment of a sum sufficient to cover any tax or other 2s governmental charge payable in connection with the transfer or 29 exchange of this Bond and any legal or unusual costs regarding 30 trans£ers and lost Bonds. 31 Treatment of Reaistered Owner. The Issuer and Bond 32 Registrar may treat the person in whose name this Bond is 33 registered as the owner hereof for the purpose of receiving 34 payment as herein provided (except as otherwise provided on the 35 reverse side hereo£ with respect to the Record Aate) and for all 36 other purposes, whether or not this Bond sha11 be overdue, and 37 neither the Issuer nor the Bond Registrar shall be affected by 38 notice to the contrary. 39 Authentication This Bond shall not be valid or become 40 obligatory for any purpose or be entitled to any security unless 41 the Certificate of Authentication hereon shall have been executed 42 by the Bond Registrar. 43 lvot Oualified Tax-Exempt Obliaations. The Bonds have 44 not been designated by the Issuer as "qualified tax-exempt 45 obligations" for purposes of Section 265(by(3} of the federal 46 Internal Revenue Code of 1986, as amended. The Bonds do not 47 qua�ify for such designation. 92o7D3.2 2 8 o��-ay� 1 ABBREVIATIONS 2 The following abbreviations, when used in the 3 inscription on the face of this Bond, shall be construed as 4 though they were written out in full according to applicable laws 5 or regulations: 6 TEN COM - as tenants in common '1 TEN ENT - as tenants by the entireties 8 JT TEN - as joint tenants with right of survivorship 9 and not as tenants in common 10 UTMA - as custodian for 11 (Cust) (Minor) 12 under the Uniform Transfers to Minors Act 13 (State) 14 Additional abbreviations may also be used 15 though not in the above list. 9207a3.2 Z 9 q�'��� 1 AS S I GNMEI3T 2 For value received, the undersigned hereby sells, 3 assigns and transfers unto 4 the within Bond and does 5 hereby irrevocably constitute and appoint 6 attorney to transfer the Bond on the books kept for the 7 registration thereof, with full power of substitution in the 8 premises. 9 Dated: 1� Notice: The assignor's signature to this 11 assignment must correspond with the name 12 as it appears upon the face of the 13 within Bond in every particular, without 14 alteration or any change whatever. 15 SignaCure Guaranteed: 16 17 Signature(s) must be guaranteed by a national bank or trust 18 company or by a brokerage firm having a membership in one of the 19 major stock exchanges or any other "Eligible Guarantor 20 Institution" as defined in 17 CFR 240.17Ad-15(a?(2). 21 The Bond Registrar will not effect transfer of this 22 Bond unless the information concerning the transferee requested 23 below is provided. 24 Name and Address: 25 26 27 (Include information for all joint owners 2g if the Bond is held by joint account.) 9207�3.2 3 � q8 -ay3 1 2 3 8 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 41 10. Execution. The Bonds shall be executed on behalf of the City by the signatures of its Mayor, Clerk and Director, O£fice of Financial 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 behalf of such absent or disabled officer. In case any such officer whose signature or facsimile of whose signature shall appear on the Bonds sha11 cease to be such officer before the delivery of the Bonds, such signature or facsimile sha11 nevertheless be valid and sufficient for all purposes, the same as if he or she had remained in office until delivery. 11. Authen ication• Date o£ Re�istration. No Bond shall be valid or obligatory for any purpose or be entitled to any security or bene£it 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 shall 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, 1998. The Certificate of Authentication so executed on each Bond shall be conclusive evidence that it has been authenticated and delivered under this resolution. 12. Reaistration; Tranafer; Exchanae. The City will cause to be kept at the principal office of the Bond Registrar a bond register in which, subject to such reasonable regulations as the Bond Registrar may prescribe, the Bond Registrar sha11 provifle for the registration of Bonds and the registration of transfers of Bonds entitled to be registered or transferred as herein provided. 42 A Global Certificate shall be registered in the name of 43 the payee on the books of the Bond Registrar by presenting the 44 Global Certificate for registration to the Bond Registrar, who 45 will endorse his or her name and note the date of registration 46 opposite the name of the payee in the certificate of registration 920703 .2 3 �- 9U 1 2 3 4 5 6 10 11 12 13 on the Global Certificate. Thereafter a Global Certificate 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 Aolder as the person exclusively entitled 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 this resolution and to reasonable regulations of the City contained in any agreement with, or notice to, the Bond Registrar. 14 Transfer of a Global Certificate may, at the direction 15 and expense of the City, be subject to other restrictions if 16 required to qualify the Global Certificates as being "in 17 registered form" within the meaning of Section 149(a) of the 18 federal Internal Revenue Code of 1986, as amended. 19 If a Global Certificate is to be exchanged for one or 20 more Replacement Bonds, all of the principal amount of the Global 21 Certificate shall be so exchanged. 22 23 24 25 26 27 28 29 30 31 32 Upon surrender for transfer of any Replacement Bond the principal office of the Bond Registrar, the City shall execute (if necessary), and the Bond Registrar shall authenticate, insert the date of registration (as provided in paragraph 11) of, and deliver, in the name of the designated transferee or transferees, one or more new Replacement Bonds at of any authorized denomination or denominations of a like aggregate principal amount, having the same stated maturity and interest rate, as requested by the transferor; provided, however, that no bond may be registered in blank or in the name of "bearer" or similar designation. 33 At the option of the Holder of a Replacement Bond, 34 Replacement Bonds may be exchanged for Replacement Bonds of any 35 authorized denomination or denominations of a like aggregate 36 principal amount and stated maturity, upon surrender of the 37 Replacement Bonds to be exchanged at the principal office of the 38 Bond Registrar. Whenever any Replacement Sonds are so 39 surrendered for exchange, the City shall execute Eif necessary), 40 and the Bond Registrar sha11 authenticate, insert the date of 41 registration of, and deliver the Replacement Bonds which the 42 Iiolder making the exchange is entitled to receive. Global 43 Certificates may not be exchanged for Global Certificates of 44 smaller denominations. 920703.2 3 2 9�-�y 1 All Bonds surrendered upon any exchange or transfer 2 provided for in this resolution shall be promptly cancelled by 3 the Bond Registrar and thereafter disposed of as directed by the 4 City. 5 Al1 Bonds delivered in exchange for or upon transfer of 6 Bonds shall be valid general obligations of the City evidencing 7 the same debt, and entitled to the same benefits under this 8 resolution, as the Bonds surrendered for such exchange or 9 transfer. 10 Every Bond presented or surrendered for transfer or 11 exchange sha11 be duly endorsed or be accompanied by a written 12 instrument of transfer, in form satisfactory to the Bonfl 13 Registrar, duly executed by the Holder thereof or his, her or its 14 attorney duly authorized in writing. - 15 The Bond Registrar may require payment of a sum 16 sufficient to cover any tax or other governmental charge payable 17 in connection with the transfer or exchange of any Bond and any 18 legal or unusual costs regarding transfers and lost Bonds. 19 Transfers shall also be subject to reasonable 20 regulations of the City contained in any agreement with, or 21 notice to, the Bond Registrar, including regulations which permit 22 the Bond Registrar to close its Cransfer books between record 23 dates and payment dates. 24 13. Riqhts Upon Transfer or Exchancre. Each Bond 25 delivered upon transfer of or in exchange for or in lieu of any 26 other Bond shall carry all the rights to interest accrued and 27 unpaid, and to accrue, which were carried by such other Bond. 28 29 30 31 32 33 34 35 36 37 3S 39 40 41 42 14. Interest Payment; Record Date. Interest on any Global Certificate sha11 be paid as provided in the first paragraph thereof, and interest on any Replacement Bond shall be paid on each Interest Payment Date by check or draft mailed to the person in whose name the Bond is registered (the "Holder") on the registration books of the City maintained by the Bond Registrar, and in each case at the address appearing thereon at the close of business on the fifteenth (15th) day of the calendar month preceding such Interest Payment Date (the "Regular Record Date"1. Any such interest not so timely paid shall cease to be payable to the person who is the Holder thereof as o£ the Regular Record Date, and shall be payable to the person who is the Holder thereof at the close of business 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 920�03.2 3 3 a��ay� 4 5 Special Record Date shall be given by the Bond Registrar to the Holders not less than ten (10) days prior to the Special Record Date_ 15. 6 (A) For the purposes of all actions, consents and other 7 matters a££ecting iiolders of the Bonds, other than payments, 8 redemptions, and purchases, the City may (but sha11 not be 9 obligated to) treat as the Holder of a Bond the beneficial owner 10 of the Bond instead of the person in whose name the Bond is 11 registered. For that purpose, the City may ascertain the 12 identity of the beneficial owner of the Bond by such means as the 13 Bond Registrar in its sole discretion deems appropriate, 14 including but not limited to a certificate from the person in 15 whose name the Bond is registered identifying such beneficial 16 owner. 17 (B) The City and Bond Registrar may treaC the person in 18 whose name any Bond is registered as the owner of such Bond for 19 the purpose of receiving payment of principal of and premium, if 20 any, and interest (subject to the payment provisions in paragraph 21 14 above) on, such Sond and for all other purposes whatsoever 22 whether or not such Bond shall be overdue, and neither the City 23 nor the Bond Registrar shall be affected by notice to the 24 contrary. 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 4� 41 42 (C) Any consent, request, direction, approval, objection or other instrument to be signed and executed by the Holders may be in any number of concurrent writings of similar tenor and must be signed or executed by such Holders in person or by agent appointed in writing. Proof of the execution of any such consent, request, direction, approval, objection or other instrument or of the writing appointing any such agent and of the ownership of Bonds, if made in the following manner, shall be sufficient for any of the purposes of this resolution, and sha11 be conclusive in favor of the City with regard to any action taken by it under such request or other instrument, namely: (1) The fact and date of the execution by any person of any such writing may be proved by the certificate of any o£ficer in any jurisdiction who by law has power to take acknowledgments within such jurisdiction that the person signing such writing acknowledged before him or her the execution thereof, or by an affidavit of any witness to such execution. 920103.2 34 � �_yy 1 1 (2) Subject to the provisions of subparagraph (A) 2 above, the fact of the ownership by any person of Bonds and 3 the amounts and numbers of such Bonds, and the date of the 4 holding of the same, may be proved by reference to the bond 5 register. 6 16. Delivery; Application of Proceeds. The Global 7 Certificates when so prepared and executed shall be delivered by 8 the Director, Office of Financial Services, to the Purchaser upon 9 receipt o£ the purchase price, and the Purchaser shall not be 10 obliged to see to the proper application thereof. 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 41 42 43 44 45 46 47 48 17. Fund and Accounts. There has heretofore been created (as provided in the General Resolution) a separate fund of the City designated the "Sewer Service Enterprise Fund" (the "Fund"). The Fund shall be maintained in the manner specified in the General Resolution and herein until the Revenue Bonds, and interest thereon, have been fully paid, and as specified herein until the Bonds and interest thereon have been fully paid. There shall be maintained in the Fund, in addition to the Construction Account, Operation and Maintenance Account, Revenue Bond Debt Service Account, Reserve Account, Excess Investment Earnings Account and 1993 Refunding Escrow Account heretofore established with respect to the Revenue Bonds, and the PFA Construction Account and PFA Debt Service Account heretofore established with respect to the PFA Notes, the following two (2) separate accounts, to which shall be credited and debited all income and disbursements of the Fund relating to the Bonds as hereinafter set forth. The Treasurer and all municipal officials and employees concerned therewith sha11 establish and maintain financial records of the receipts and disbursements of the Sewer System in accordance with this resolution. In such records there shall be maintained accounts of the Fund for the purposes and in the amounts as follows: (i) A"General Oblicration Bond Construction Account", to which 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 $4,63&,9�0. From the General Obligation Bond Construction 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 incurred 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 General Obligation Sond Construction 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 920703.2 35 q�-ay3 1 Revenues pledged herein; and provided further that if upon 2 completion of the Improvements there shall remain any 3 une�ended balance in the General Obligation Bond 4 Construction Account, the balance may be used for any other 5 purpose permitted by law, or transferred to the General 6 Obligation Bond Debt Service Account. A11 earnings on the 7 General Obligation Bond Construction Account shall be 8 transferred to the General Obligation Bond Debt Service 9 Account, or may remain in the General Obligation Bond 10 Construction Account. 11 (ii) A"General Obligation Bond Debt Service Account", 12 to which there shall be irrevocably appropriated, pledged 13 and credited: (a) al1 accrued interest received upon 14 delivery of the Bonds; (b) all funds paid for the Bonds in 15 excess of $4,638,900; (c) Revenues (as defined in the 16 General Resolution, and as provided in Section 4.03(A) Sixth 17 thereof) in an amount sufficient, with other moneys, to pay 18 the principal of, and interest on, the Bonds when due; (d) 19 any collections of all taxes which may hereafter be levied 20 for the payment of the Bonds and interest thereon as 21 provided in paragraph 19; (e) all funds remaining in the 22 General Obligation Bond Construction Account after 23 completion of the Improvements and payment of the costs 24 thereof, not so used for any other purpose permitted by law; 25 (f) all investment earnings on moneys held in the General 26 Obligation Bond Debt 5ervice Account; and (g) any and all 27 other moneys which are properly available and are 28 appropriated by the governing body of the City to the 29 General Obligation Bond Debt Service Account. 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 (iii) Excess Revenues may be used for any proper purpose to the extent provided in the General Resolution. The General Obligation Bond Debt Service Account sha11 be used solely to pay the grincipal and interest and any premiums for redemption of the Bonds and any other bonds of the City heretofore or hereafter issued by the City and made payable from the General Obligation Bond Debt Service Account as provided by law, or to pay any rebate due to the United States. No portion of the proceeds of the Bonds shall be used directly or indirectl� to acquire higher yielding investments or to replace funds which were used directly or indirectly to acquire higher yielding investments, except (1) for a reasonable temporary period until such proceeds are needed for the purpose for which the 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 Fund, General Obligation Bond Construction Account or General Obligation Bond Debt Service Account (or 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 9zo�os.z 3 6 ��-ay � 1 a 3 4 5 6 7 8 9 10 11 iz 13 14 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 portion" made available under the federal arbitrage regulations. In addition, the proceeds of the Bonds and money in the Fund, General Obligation Bond Construction Account or General Obligation Bond Debt Service Account shall not be invested in obligations or deposits issued by, guaranteed by or insured by Che United States or any agency or instrumentality thereof if and to the extent that such invest- ment would cause the Bonds to be "federally guaranteed" within the meaning of Section 149(b) of the federal Internal Revenue Code of 1986, as amended (the "Code"). 15 18. Coverage Test• rteacre oi xevenues• �xcess 16 Revenues• Parit� Bonds• Pledae to Produce Revenues. It is hereby 17 found, determined and declared that the Revenues of the Sewer 18 System are sufficient in amount, when used in the order provided 19 in the General Resolution, to pay when due one hundred five 20 percent {105%) of the principal of and interest on the Bonds, and 21 the 12evenues of the Sewer System are hereby pledged for the 22 payment of the Bonds, but solely to the extent required to meet, 23 with other pledged sources, one hundred five percent (lOSo) of 24 the principal of, and interest on, the Bonds as the same become 25 due. Excess Revenues may be used for any proper purpose as 26 provided in the General Resolution. 27 Nothing contained herein shall be deemed to preclude 28 the City from making further pledges and appropriations of the 29 Revenues of the Sewer System for the payment of other or 30 additional obligations of the City, provided that it has first 31 been determined by the City Council that estimated Revenues of 32 the Sewer System will be sufficient, in addition to all other 33 sources, for the payment of the Bonds and suoh additional 34 obligations, and any such pledge and appropriation of the 35 Revenues may be made superior or subordinate to, or on a parity 36 with, the pledge and appropriation herein. The Bonds are issued 37 pursuant to Minnesota Statutes, Section 115.46, and nothing 38 herein shall preclude the City from levying taxes for the payment 39 of the Bonds. 4� 41 42 43 44 45 46 47 48 Revenues are hereby pledqed to the payment of the Bonds. The lien on Revenues securing the Bonds is hereby expressly made a lien on Revenues junior and subsequent to the lien of the General Resolution as it applies to the Revenue Bonds, all as provided in Section 6.01(A) of the General Resolution. The Bonds shall be paid from the Operation and Maintenance Account of the Sewer Service Enterprise Fund as provided in Section 4.03(A) Sixth of the General Resolution, and for this purpose it is hereby found, determined and declared that 920703.2 37 qx-a�t� 1 2 4 5 6 10 the Bonds finance Improvements (as defined in the General Resolution). As provided in paragraph 10 of each of the resolutions authorizing issuance of the PFA Notes, it is hereby found, determined and declared that estimated revenues of the Sewer System will be sufficient, in addition to all other sources, for the payment of the PFA Notes and the Bonds. The pledge and appropriation of the Revenues to the payment of the Bonds shall be on a parity with the pledge and appropriation to the payment of the PFA Notes. 11 In accordance with Minnesota Statutes, Section 116.19, 12 the City hereby covenants and agrees with the holder of the Bonds 13 that it will impose and collect charges for the service, use and 14 availability of and connection to the Sewer System the times 15 and in the amounts required to produce Revenues adequate to pay 16 a11 principal and interest when due on the Bonds. Nothing herein 17 shall preclude the City from levying taxes for the payment of the 18 Bonds as permitted by Minnesota Statutes, Section 115.46. 19 19. General Obliaation Pledcre. For the prompt and 20 full payment of the principal and interest on the Bonds, as the 21 same respectively become due, the full faith, credit and taxing 22 powers of the City shall be and are hereby irrevocably pledged. 23 If the Revenues of the Sewer System appropriated and pledged to 24 the payment of principal of, and interest on, the Bonds, together 25 with other funds irrevocably appropriated to the General 26 Obligation Bond Debt Service Account referred to in paragraph 17 27 of this resolution, shall at any time be insufficient to pay such 28 principal and interest when due, the City covenants and agrees to 29 levy, without limitation as to rate or amount, an ad valorem tax 30 upon all taxable property in the City sufficient to pay such 31 principal and interest as they become due. If the balance in the 32 General Obligation Bond Debt Service Account (as defined in 33 paragraph 17 hereof) is ever insufficient to pay all principal 34 and interest then due on the Bonds payable therefrom, the 35 de£iciency shall be promptly paid out of any other funds of the 36 City which are available for such purpose, including the general 37 fund of the City, and such other funds may be reimbursed with or 38 without interest from the General Obligation Bond Debt Service 39 Account when a sufficient balance is available therein. 40 41 42 43 44 45 46 4? 20. Certificate of Reaistration. The Director, Office of Financial Services, is hereby directed to file a certified copy of this resolution witta the officer of Ramsey County, Minnesota, performing the functions of the oounty auditor (the "County Auditor"), together with such other in£ormation as the County Auditor shall require, and to obtain the County Auditor's certificate that the Bonds have been entered in the County Auditor's Bond Register. 920703.2 �7 q� 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 21. Records and Certificates. The officers of the City are hereby authorized and directed to prepare and furnish to the Purchaser, and to the attorneys approving the legality of the issuance of the Bonds, certified copies of all proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the City, and such other affidavits, certificates and information as are required to show the facts relating to the legality and marketability of the Bonds as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore furnished, shall be deemed representations of Che City as to the facts recited therein. 22. Necrative Covenants as to Use of Proceeds and Improvements. The City hereby covenants not to use the proceeds of the Bonds or to use the Improvements, or to cause or permit them to be used, or to enter into any deferred payment arrangements for the cost of the Improvements, in such a manner as to cause the Bonds to be "private activity bonds" within the meaning of Sections 1�3 and 141 through 15Q of the Code. The 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 governmental purpose of the issue. The City hereby aovenants not to use the proceeds of the Bonds in such a manner as to cause the Bonds to be "hedge bonds" within the meaning of Section 149(g) of the Code. 28 23. Tax-Exempt Status of the Bonds; Rebate; Elections. 29 The City shall comply with requirements necessary under the Code 30 to establish and maintain the exclusion from gross income under 31 Section 103 of the Code of the interest on the Bonds, including 32 without limitation requirements relating to temporary periods for 33 investments, limitations on amounts invested at a yield greater 34 than the yield on the Bonds, and the rebate of excess investment 35 earnings to the United States. 36 The City expects that the two-year expenditure 37 exception to the rebate requirements may apply to the 38 construction proceeds of the Bonds. 39 If any elections are available now or hereafter with 40 respect to arbitrage or rebate matters relating to the Bonds, the 41 Mayor, Clerk, Treasurer and Director, Office of Financial 42 Services, or any of them, are hereby authorized and directed to 43 make such elections as they deem necessary, appropriate or 44 desirable in connection with the Bonds, and all such elections 45 shall be, and shall be deemed and treated as, elections of the 46 City. 920703.2 3 9 q�_1`1� 8 9 10 11 12 13 14 15 16 24. No Desicrnation of Qualified Tax-Exempt Obligations. The Bonds, together with other obligations issued by Che City in 1998, exceed in amount those which may be qualified as "qualified tax-exempt obligations" within the meaning of Section 265(b�(3) of the Code, and hence are not designated for such purpose. 25. Letter of Representations. The Letter of Representations for the Bonds is hereby confirmed to be the Blanket Issuer Letter of Representations dated April 10, 1946, by the City and received and accepted by The Depository Trust Company. So long as The Depository Trust Company is the Depository or it or its nominee is the Holder of any Global Certificate, the City shall comply with the provisions of the Letter of Regresentations, as it may be amended or supplemented by the City from time to time with the agreement or consent of The Depository Trust Company. 17 26. Negotiated Sale. The City has retained Springsted 18 Incorporated as an independent financial advisor, and the City 19 has heretofore determined, and hereby determines, to sell the 20 Bonds by private negotiation, all as provided by Minnesota 21 Statutes, Section 475.60, Subdivision 2(9). 22 23 24 25 26 27 28 27. Continuing Disclosure. The City is an obligated person with respect to the Bonds. The City hereby agrees, in accordance with the provisions of Rule i5c2-12 (the "Rule"), promulgated by the Securities and Exchange Commission (the "COmmission") pursuant to the Securities Exchange Act of 1934, as amended, and a Continuing Disclosure Undertaking (the "Undertaking") hereinafter described, to: 29 A. Provide or cause to be grovided to each nationally 30 recognized municipal securities information repository 31 ("NRMSIR") and to the appropriate state information 32 depositor�r ("SID"�, if any, for the State of Minnesota, in 33 each case as designated by the Commission in accordance with 34 the Rule, certain annual financial intormation and operating 35 data in accordance with the Undertaking. The City reserves 36 the right to modify from time to time the terms of the 37 Undertaking as provided therein. 38 B. Provide or cause to be provided, in a timely 39 manner, to (i) each NRMSIR or to the Municipal Securities 40 Rulemaking Board ("MSRB") and (ii) the SID, notice of the 41 occurrence oP certain material events with respect to the 42 Bonds in accordance with the Undertaking. 43 C. Provide or cause to be provided, in a timely 44 manner, to (i) each NRMSIR or to Che MSRB and (ii) the SID, 45 notice of a failure by the City to provide the annual 920703.2 " 4 � q�-�y� 1 financial information with respect to the City described in 2 the Undertaking. 3 The City agrees that its covenants pursuant to the Rule 4 set forth in this paragraph 27 and in the Undertaking are 5 intended to be for the benefit of the Aolders of the Bonds and 6 shall be enforceable on behalf of such Holders; provided that the 7 right to enforce the provisions of these covenants shall be 8 limited to a right to obtain specific enforcement of the City's 9 obligations under the covenants. 10 The Mayor and Director, Office of Financial Services, 11 or any other officers of the Ci[y authorized to act in their 12 stead (the "Officers"), are hereby authorized and directed to 13 execute on behalf of the City the Undertaking in substantially 14 the form presented to the City Council, subject to such 15 modifications thereof or additions thereto as are (i) consistent 16 with the requirements under the Rule, (ii) required by the 17 Purchaser, and (iii) acceptable to the Officers. 18 28. Resolutions Supplemented. The General Resolution 19 and the resolutions authorizing the issuance of the PFA Notes are 20 hereby supplemented to the extent necessary to give effect to the 21 provisions of paragraph 17 of this resolution. 22 29. Severabilitv. I£ any section, paragraph or 23 provision of this resolution shall be held to be invalid or 24 unenforceable for any reason, the invalidity or unenforceability 25 of such section, paragraph or provision shall not affect any of 26 the remaining provisions of this resolution. 9207D3.2 4 1 ORIGINAL 1 30. Headincrs. Headings in this 2 included for convenience of reference onl 3 hereof, and shall not limit or define the 4 provision hereof. a��--ay� resolution are y and are not a part meaning of any Requested by DeQartment of: Adopted by Council: Date ��� � ���� Adoption Certified by Council Secretary B � � _ � r.,�-�----_ Approved by Mayor: D 'S ��ln �Wt °-�"'— 920703.2 � o � : �ooiL.,� � � ' � �. . -: . • � � •,r - > �!.� �ill�/4� a�-a� of Financial Setvices ��� TOTAL # OF SIGNATURE PAGES DAT6INITIATED h�.,9� GREEN SHEET ASSIGN No 60944 ■ 1� 7 eEVnnmart nx�crae � arrcouKa. _ FOR � GrtYATTORNfl' `/ ❑ GIYCLERR � ❑ FlWKYLLSFRVICESG6L ❑ FWNO4LSERV/ACCi6 � YAVOR(ORw593iANTl� ❑ _1_ (CUP ALL LOCATIONS FOR SIGNATURE) �is resolution accepts the winning proposal and awards the bid for the $4,700,000 G.O. :wer Revenue BorMS Series 1998E. This is a competi6ve borM sale and the award going to the bidder found most advantageos Qwvest cost) to the City. PLANNING COMMISSION CIB COMMITTEE qVIL SERVICE COMMISSION TIATING PROBLEM ISSUE, OPPORNNITV (Who, What, When, Where, Why) � bonds are For the purpose oi financing certam sewer prqects vrithin the City, and will repeitl by sewer revenue5. GES IF APPROVED be available tor sevrer projects. � a^tYU� �a43!IV�Gi� �Q$$?i4Csf ��_,i..,.> � �. r Y `.f, IFAPPROVED �� sewer Pmle�is wifl nW be aradable. AMOUNT OF TRANSACTION S sa�oo.000 Has this parsoM�m ever wwked u'Wer a contrac[ fw Ihis department? YES NO , Has this persoMrm ever been a city employee� YES NO Dces this persoNfirtn possess a sldll not normalty possessetl by any curceM city employee? YES NO Is this persoNfrtn a targetetl vendoR ` YES NO �������� MAR 2 3 1998 R S QSY�J ���itsC CQST/REVENUE 6UDGETED (CIRCLE ONE) ACTNITY NUMBER YES NO (IXPWN) d��--ay3 1 2 publication of notice thereof as a form of private negotiation; and 3 WHEREAS, proposals for the Bonds have been solicit 4 Springsted Incorporated pursuant to an Official Statement ar� 5 Terms of Proposal therein: � 6 NOW, THEREFORE, BE IT RESOLVED by the Council,of the 7 City of Saint Paul, Minnesota, as follows: ,r 8 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 41 42 43 §4 by l. Acceptance of Proposal. The proposal of (the "Purchaser"), to p rchase $4,70�,000 General Obligation Sewer Revenue Bonds, Series 1998E, of the City (the "Bonds", or individually a"BOn '), in accordance with the Terms ot Proposal for the bc�nd sale, at the rates of interest set forth hereinafter, and t�i pay for the Bonds the sum of S , plus interest ac�rued to settlement, is hereby found, determined and declared t�e the most favorable proposal received and is hereby accepted, d the Bonds are hereby awarded to the Purchaser. The Dir ctor, Office of Financial Services, or his designee, is irected to retain the deposit of the Purchaser and to forthwi return to the others making proposals their good faith checks or drafts. 2. Title• Ori inal I sue/Date• Denominations• Maturities. The Bonds shall be ti ed "General Obligation Sewer Revenue Bonds, Series 1998E", sha be dated April 1, 1998, as the date of original issue and s 11 be issued forthwith on or after such date as fully regist ed bonds. The Bonds shall be numbered from R-1 upward. Glo a1 Certificates shall each be in the denomination of the entir principal amount maturing on a single date, or, if a portio of said principal amount is prepaid, said principal amo nt less the prepayment. Replacement Bonds, if issued as provid d in_paragraph 6, shall be in the denomination of $5,000 ea h or in any integral multiple thereof of a single maturity. T e Bonds shall mature on December 1 in the years and amounts follows: Year 1999 2000 2001 2002 2003 20 2 5 006 2007 2008 Amount $155,000 160,000 165,000 175,000 180,000 190,000 195,000 205,000 215,000 220,000 Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Amount $230,000 240,000 250,000 265,000 275,000 290,000 300,000 315,000 330,000 345,000 z 4 o{k�-�y3 9 10 11 12 3. Purpose. The Bonds shall provide funds construction of various improvements to the City's w storm water systems (the "Improvements"). The Bonds to aid in financing a sewage disposal system or part pursuant to Minnesota Statutes, Section 115.46. The the Bonds shall be deposited and used as provided iyf 17, and any excess moneys shall be devoted to any �it permitted by law. The total cost of the Improvement shall include all costs enumerated in Minnesota tat t the ater and issued /proceeds of paragraph her purpose s, which utes, Section 475.65, is estimated to be at least equal to t e amount of the Bonds. Work on the Improvements shall proce� with due diligence to completion. 13 4. Interest. The Bonds shall ear interest payable 14 semiannually on June 1 and December 1 of ach year (each, an 15 "Interest Payment Date"), commencing Dec mber 1, 1998, calculated 16 on the basis of a 360-day year of twelv 30-day months, at the 17 respective rates per annum set forth o posite the maturity years 18 as follows: 19 Maturity Year Interest Rate Ma Year Interest Rate 20 21 22 23 24 25 26 27 28 29 30 3 ]. 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 °s 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 a 5. Descri�tion of the Global Certiticates and Global Book-Entry System. pon their original issuance the Bonds will be issued in the fo m of a single Global Certificate for each maturity, deposite with the Depository by the Purchaser and immobilized as pr vided in paragraph 6. No beneficial owners of interests in the Bonds will receive certificates representing their respectiv interests in the Bonds except as provided in paragraph 6, xcept as so provided, during the term of the Bonds, benefi ial ownership (and subsequent transfers of beneficial o ership) of interests in the Global Certificates will be ref ected by book entries made on the reaords of the Depository and its Participants and other banks, brokers, and dealers p rticipating in the National System. The Depository's book ent ies of beneficial ownership interests are authorized to be in i crements of $5,000 of principal of the Bonds, but not smalle increments, despite the larger authorized denominations of t Global Certificates. Payment of principal of, premium, if any, and interest on the Global Certificates will be made to the Bo Registrar as paying agent, and in turn by the Bond Registrar F.'7 qg-a� 3 qualified to act as such, as provided in clause (ii) of this subparagraph, or (iv) To those persons to whom transfer is re in written transfer instructions in the event that� 5 (a) the Depository shall resign or discontinue 6 its services for the Bonds and the City is�unable to 7 locate a substitute depository within tw�o (2l months 8 following the resignation or determin� on of non- 9 eligibility, or 10 (b) upon a determination by t�Yie City in its sole 11 discretion that (1) the continuati�on of the book-entry 12 system described herein, which precludes the issuance 13 of certificates (other than Glo�ial Certificates) to any 14 Holder other than the Deposit {-}� (or its nominee), 15 might adversely affect the i erest of the beneficial 16 owners of the Bonds, or (2) that it is in the best 17 interest of the beneficial owners of the Bonds that 18 they be able to obtain ce tificated bonds, 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 in either of whic its determination (the "Replacement the registration, be conducted as p In the event be authorized by this presentation of Global to the substitute or successor depository purposes and functi999 Representations sh�']. depository unless/th depository so ag,ree, 7. h events t e City shall notify Holders of and of t e availability of certificates Bonds") to Holders requesting the same and transf r and exchange of such Bonds wi11 rovid in paragraphs 9B and 12 hereof. of a succession of the Depository as may �a agraph, the Bond Registrar upon �ertificates shall register their transfer ccessor depository, and the substiCute or �all be treated as the Depository for all s under this resolution. The Letter of not apply to a substitute or successor City and the substitute or successor and a similar agreement may be entered into. (a) O'onal Redem t'on: Due Date. All Bonds maturing after Dece er 1, 2006, shall be subject to redemption and prepaymen at the option of the City on such date and on any day thereaft r at a price of par plus accrued interest. Redemption may be 'n whole or in part of the Bonds subject to prepayment. If re mption is in part, those Bonds remaining unpaid may be prep d in such order of maturity and in such amount per maturity as t e City shall determine; and if only part of the Bonds having a c mmon maturity date are called for prepayment, the Global C tificates may be prepaid in $5,000 increments of principal d, if applicable, the specific Replacement Bonds to be prepaid hall be chosen by lot by the Bond Registrar. Bonds or portions 920703.2 7 ay 3 1 thereof called for redemption shall be due and payable on 2 redemption date, and interest thereon shall cease to accr 3 and after the redemption date. � from 4 (b) Notation on Global Certificate. Upon a redue�ion in 5 the aggregate principal amount of a Global Certifica�, the 6 Holder may make a notation of such redemption on the panel 7 provided on the Global Certificate stating the amownt so 8 redeemed, or may return the Global Certificate tor�he Bond 9 Registrar in exchange for a new Global Certificat�e authenticated 1� by the Bond Registrar, in proper principal amou`t. Such 11 notation, if made by the Holder, shall be fo�eference only, and 12 may not be relied upon by any other person as being in any way 13 determinative of the principal amount of su Global Certificate 14 outstanding, unless the Bond Registrar has signed the appropriate 15 column of the panel. 16 (c) Selection of Re lacement Bond . To effect a partial 17 redemption of Replacement Bonds having a common maturity date, 18 the Bond Registrar prior to giving no ice of redemption shall 19 assign to each Replacement Bond hav' g a common maturity date a 20 distinctive number for each $5,000 f the principal amount of 21 such Replacement Bond. The Bond gistrar shall then select by 22 lot, using such method of select' n as it shall deem proper in 23 its discretion, from the number so assigned to such Replacement 24 Bonds, as many numbers as, at ,000 for each number, shall equal 25 the principal amount of such eplacement Bonds to be redeemed. 26 The Replacement Bonds to be edeemed shall be the Replacement 27 Bonds to which were assigne numbers so selected; provided, 28 however, that only so much of the principal amount of each such 29 Replacement Bond of a den ination of more than $5,000 shall be 30 redeemed as shall equal ,000 for each number assigned to it and 31 so selected. 32 33 34 35 36 37 38 39 4D §1 42 43 44 45 (d) Partial Redefn tion of Re lacement Bonds. If a Replacement Bond is be redeemed only in part, it shall be surrendered to the B nd Registrar (with, if the City or Bond Registrar so requir s, a written instrument of transfer in form satisfactory to t 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 1if necessary) and the Bond Registrar shall authenticate and deliver to the Holder of such Replacement Bo d, without service charge, a new Replacement Bond or Bonds of t e same series having the same stated maturity and interest rat and of any authorized denomination or denominatio , as requested by such Holder, in aggregate principal ount equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered. 46 (e� Reauest for Redem�tion. The Bond Registrar shall ca11 47 Bonds f redemption and payment as herein provided upon receipt 48 by the ond Registrar at least forty-five (45) days prior to the 920703. 3 ag-�y3 1 2 3 4 5 6 7 8 9 10 ii 12 13 14 15 16 17 (ii) The redemption price; 18 (iii) If less than all outs��anding Bonds are to be 19 redeemed, the identification (a�d, in the case of partial 20 redemption, the respective pr cipal amounts? of the Bonds � 21 to be redeemed; f� 22 (iv) That on the redemption date, the redemption price 23 wi11 become due and payab� upon each such Bond, and that 24 interest thereon shall�ase to accrue from and after said 25 date; and 26 (v) The plac�here such Bonds 2'7 for payment of the edemption price 28 office of the Bonc} Registrar). 29 30 31 32 33 34 35 redemption date of a request of the City, in written form Bond Registrar is other than a City officer. Such request specify the principal amount o£ Bonds to be called for red and the redemption date. (f) Notice. Mailed notice of redemption shall be gi the paying agent (if other than a City officer3 and to eac affected Holder. If and when the City shall call any of� if the shall to 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 gonds at the office of the Bond Registrar. Notice of redemptionfshall be given by first class mail, postage prepaid, maile�`not less than thirty (30) days prior to the redemption date, t�d`each Holder of Bonds to be redeemed, at the address appearing in the Bond Register. All notices of redemption shall sta�e: (g) Notice Company or its n Bonds. If there Depository or it efforts to deliv business day ne�c all other Holcl�r (i) The redemption date; are to be surrendered (which shall be the o IA'�e osito . Notices to The Depository Trust i ee shall contain the CUSIP numbers of the ,re any Holders of the Bonds other than the nominee, the Bond Registrar shall use its best any such notice to the Depository on the preceding the date of mailing of such notice to 36 37 in Saint 38 and trans 39 Registra 40 Registr r 41 City a d 42 herew'th. 43 City or a 44 reg'strar 9 703.2 8 Sond Reaistrar. First Trust National Association, P 1, Minnesota, is appointed to act as bond registrar er agent with respect to the Bonds (the "Bond "), and shall do so unless and until a successor Bond is duly appointed, all pursuant to any contract the Bond Registrar shall execute which is consistent A successor Bond Registrar shall be an officer of the bank or trust company eligible for designation as bond pursuant to Minnesota Statutes, Chapter 475, and may be 0 a �r- a.�� 1 appointed pursuant to any contract the City and such successor 2 Bond Registrar shall execute which is consistent herewith. The 3 Bond Registrar shall also serve as paying agent unless and unti 4 a successor paying agent is duly appointed. Principal and 5 interest on the Bonds shall be paid to the Holders (or record,,r� 6 holders) of the Bonds in the manner set forth in the forms�f 7 Bond and paragraph 14 of this resolution. g 9. Forms of Bond. The Bonds shall be in th�form of 9 Global Certificates unless and until Replacement Bonds/are made 10 available as provided in paragraph 6. Each form of nd may 11 contain such additional or different terms and prov'sions as to 12 the form of payment, record date, notices and oth matters as 13 are consistent with the Letter of Representation and approved by 14 the City Attorney. 15 A. Global Certificates. The G 16 together with the Certificate of Registrat 17 Partial Payments, the form of Assignment 18 information thereon, shall be in substan i 19 and may be typewritten rather than pri ed o}�al Certificates, 6 n, the Register of d the registration lly the following form �os.z 10 �IS-��t 3 1 2 3 4 5 6 7 8 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 4� 41 42 43 44 45 46 47 48 49 Registrar has signed the appropriate column of the panel. Interest on this Bond will be paid on each Interest Payme Date in same-day.funds by 2:30 p.m., Eastern time, to the per on in whose name this Bond is registered (the "Holder" or "B dholder") on the registration books of the Issuer maintained by he Bond Registrar and at the address appearing thereon at th close of business on the fifteenth day of the calendar mont preceding such Interest Payment Date (the "Regular Record D e"). Interest payments shall be received by the Holder no late than 2:30 p.m., Eastern time; and principal and premium paymen shall be received by the Holder no later than 2:30 p.m , Eastern time, if the Bond is surrendered for payment enough i advance to permit payment to be made by such time. Any inte st not so timely paid shall cease ta be payable to the person w is the Holder hereof as of the Regular Record Date, and shall e payable to the person who is the Holder hereof at the close o business on a date (the "Special Record Date") fixed by the B d Registrar whenever money becomes available for payment of the efaulted 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 Stat of America. Date of Pavment Not u iness Da . If the date for payment of the principal of, premium, if any, or interest on this Bond shall be a Saturday, S nday, legal holiday or a day on which banking institutions in t City of New York, New York, or the city where the principal ffice of the Bond Registrar is located are authorized by law o executive order to close, then the date for such payment shall e the next succeeding day which is not a Saturday, Sunday, leg holiday or a day on which such banking institutions are aut orized to close, and payment on such date shall have the same force and effect as if made on the nominal date of payment. Rede t�ion. All Bonds of this issue (the "Bonds") maturing after ecember 1, 2006, are subject to redemption and prepayment at e option of the Issuer on such date and on any day thereafte ati a price of par plus accrued interest. Redemption m y be in whole or in part of the Bonds subject to prepayment. If redemption is in part, those Bonds remaining unpaid may e prepaid in such order of maturity and in such amount pe maturity as the City shall determine; and if only part of the B nds having a common maturity date are called for prepaym nt, this Bond may be prepaid in $5,��0 increments of princi al. Bonds or portions thereof called for redemption shall be du and payable on the redemption date, and interest thereon shal cease to accrue from and after the redemption date. Notice of R�demption. Mailed notice of redemption 1 be given to the paying agent (if other than a City officer) to each affected Holder of the Bonds_ In the event any of 920703.2 E�% �r-a.�� 1 the Bonds are called for redemption, written notice thereof wi 2 be given by first class mail mailed not less than thirty (30) 3 days prior to the redemption date to each Holder of Bonds to 4 redeemed. In connection with any such notice, the "CUSIP" 5 numbers assigned to the Bonds shall be used. 6 7 8 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 41 42 43 44 45 46 47 48 49 Redemotion. L3pon a partial redemption of this Bond w'ich results in the stated amount hereof being reduced, the Hold may in its discretion make a notation on the panel provided rein of such redemption, stating the amount so redeemed. Suc notation, if made by the Holder, shall be for reference only and may not be relied upon by any other person as being in a way determinative of the principal amount of the Bond outstand' g, unless the Bond Registrar has signed the appropriate column of the panel. Otherwise, the Holder may surrender this �nd to the Bond Registrar (with, if the Issuer or Bond R istrar so requires, a written instrument of transfer in form atisfactory to the Issuer and Bond Registrar duly executed by t Holder thereof or his, her or its attorney duly authorized ' writing) and the Issuer shall execute (if necessary) and th Bond Registrar sha11 authenticate and deliver to the Ho der of such Bond, without service charge, a new Bond of th same series having the same stated maturity and interest ra and of the authorized denomination in aggregate prin ipal amount equal to and in exchange for the unredeemed p rtion of the principal of the Bond so surrendered. Issuance• Pu o: General Oblicration. This Bond is one of an issue in the t tal principal amount of $4,700,000, all of like date of origina issue and tenor, except as to number, maturity, interest rat , denomination, and redemption privilege, which Bond has been ' sued pursuant to and in full conformity with the Constituti and laws of the State of Minnesota, including particul rly Minnesota Statutes, Chapter 475 and Sections 116.19 a d 115.46, and the Charter of the Issuer, and pursuant to a r olution adopted by the City Council of the Issuer on Apri 1, 1998 (the "Resolution"), for the purpose of providing mon to finance the acquisition, construction and repair of va ious improvements to the City's wastewater and storm water syste s. This Bond is payable out of the General Obligation Bond Debt Service Account of the Sewer Service Enterpris Fund of the City, to which account have been pledged gross r enues of the City's sewer system. This Bond has been issued o aid in financing a sewage disposal system or part there f pursuant to Minnesota Statutes, Section 115.46. This Bond constitutes a general obligation of the Issuer, and to pro ide moneys for the prompt and full payment of its principal, p mium, if any, and interest when the same become due, the fu11 ith and credit and taxing powers of the Issuer have been and are hereby irrevocably pledged. 920703.2 �-3 K� 6 7 8 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 41 42 43 44 45 46 47 48 Denominations: Exchancte; Resolution. The Bonds aofe issuable originally only as Global Certificates in the denomination of the entire principal amount of the issue maturir on a single date, or, if a portion of said principal i prepaid, said principal amount less the prepayment. Global Ce ificates are not exchangeable for fully registered bonds of s aller denominations except to evidence a partial prepaym t or in exchange for Replacement Bonds if then available. Replacement Bonds, if made available as provided below, are 'ssuable solely as fully registered bonds in the denominations f$5,000 and integral multiples thereof of a single maturi and are exchangeable for fu11y registered Bonds of o er authorized denominations in equal aggregate principal mounts at the principal office of the Bond Registrar, b only in the manner and subject to the limitations provided ' the Resolution. Reference is hereby made to the Resolut' n for a description of the rights and duties of the Bond Regi rar. Copies of the Resolution are on file in the princip 1 office of the Bond Registrar. Replacement Bonds. the Issuer in the event that: (a) the Depository services for the Bonds, locate a substitute dep following the resigna o eligibility, or (b) upon a discretion that system described issuance of cer� any Holder o adversely af the Bonds, o beneficial� certificat d �t (2) Bonds may be issued by a11 resign or discontinue its nd only if the Issuer is unable to sitory within two (2) months n or determination of non- d�termination by the Issuer in its sole �} the continuation of the book-entry in the Resolution, which precludes the ficates (other than Global Certificates) to than the Depository (or its nominee), might the interest of the beneficial owners of that it is in the best interest of the of the Bonds that they be able to obtain bonds. Tr s er. This Bond sha11 be registered in the name of the payee o the books of the Issuer by presenting this Bond for registrati to the Bond Registrax, who will endorse his, her or its name d note the date of registration opposite the name of the paye in the certificate of registration attached hereto. Thereaf r this Bond may be transferred by delivery with an assign nt duly executed by the Holder or his, her or its legal repres ntatives, and the Issuer and Bond Registrar may treat the Holde as the person exclusively entitled to exercise all the rig s and powers of an owner until this Bond is presented with suc assignment for registration of transfer, accompanied by as urance of the nature provided by law that the assignment is g nuine and effective, and until such transfer is registered on '703 . 2 14 �I�-ay said books and noted hereon by the Bond Registrar, all subje t to the terms and conditions provided in the Resolution and to reasonable regulations of the Issuer contained in any agr ement with, or notice to, the Bond Registrar. Transfer of this Bond may, at the direction and expense o£ the Issuer, be su ect to certain other restrictions if required to qualify thi Bond as being "in registered form" within the meaning of Sec ion 149(a) of the federal Internal Revenue Code of 1986, as a�ended. 9 Fees u�on Transfer or Loss. The Bond F�egistrar may 10 require payment of a sum sufficient to cover a tax or other 11 governmental charge payable in connection wit the transfer or 12 exchange of this Bond and any legal or unusu costs regarding 13 transfers and lost Bonds. 14 Treatment of Registered Owner. The Issuer and Bond 15 Registrar may treat the person in whose ame this Bond is 16 registered as the owner hereof for the purpose of receiving 17 payment as herein provided (except as otherwise provided with 18 respect to the Record Date) and for 11 other purposes, whether 19 or not this Bond shall be overdue, nd neither the Issuer nor the 20 Bond Registrar shall be affected notice to the contrary. 21 Authentication. This 22 obligatory for any purpose o� 23 the Certificate of Authentica i 24 by the Bond Registrar. 25 Not Oualltie� 26 not been designated by 27 obligations" for purpo, 28 Internal Revenue Code � 29 qualify for such desic� ond shall not be valid or become entitled to any security unless hereon shall have been executed The Bonds have � Issuer as "qualified tax-exempt of Section 265(b)(3) of the federal 1986, as amended. The Bonds do not ion. 15 q �'� � ON REVERSE OF BOND 2 Date of Pavment Not Business Dav. If the date fo 3 payment of the principal of, premium, if any, or interest n this 4 Bond shall be a Saturday, Sunday, legal holiday or a day on which 5 banking institutions in the City of New York, New York,- or the 6 city where the principal office of the Bond Registrar s located 7 are authorized by law or executive order to close, t en the date 8 for such payment shall be the next succeeding day ich is not a 9 Saturday, Sunday, legal holiday or a day on which such banking 10 institutions are authorized to close, and payme on such date 11 shall have the same force and effect as if mad on the nominal 12 date of payment. 13 RedemDtion. All Bonds of this i ue (the "Bonds") 14 maturing after December 1, 2006, are subj ct to redemption and 15 prepayment at the option of the Issuer o such date and on any 16 day thereafter at a price of par plus crued interest. 17 Redemption may be in whole or in part of the Bonds subject to 18 prepayment. If redemption is in par , those Bonds remaining 19 unpaid may be prepaid in such order of maturity and in such 20 amount per maturity as the City s 11 determine; and if only part 21 of the Bonds having a common mat ity date are called for 22 prepayment, the specific Bonds o be grepaid sha11 be chosen by 23 lot by the Bond Registrar. Bo ds or portions thereof called for 24 redemption shall be due and p yable on the redemption date, and 25 interest thereon shall ceas to accrue from and after the 26 redemption date. 27 28 29 30 31 32 33 34 shall be given to the and to each affected the Bonds are called be given by first c a days prior to the ed redeemed. In co ect tion. Mailed notice of redemption ying agent (if other than a City officer) der of the Bonds. In the event any of redemption, written notice thereof will mail mailed not less than thirty (30) tion date to each Holder of Bonds to be with any such notice, the "CUSIP" Bonds shall be used. 35 36 37 38 39 40 41 42 43 44 45 46 47 or numbers assiane to the Sel ction of Bonds for Redem tion. To effect a partial redemption o Bonds having a common maturity date, the Bond Registrar s all assign to each Bond having a common maturity date a distinct've number for each $5,000 of the principal amount of such Bon . The Bond Registrar shall then selecC by lot, using such me od of selection as it shall deem proper in its discre on, from the numbers assigned to the Bonds, as many numbe as, at $5,000 for each number, shall equal the principal amou of such Bonds to be redeemed. The Bonds to be redeemed sha be the Bonds to which were assigned numbers so selected; pr vided, however, that only so much of the principal amount of s ch Bond of a denomination of more than $5,000 shall be redeemed s shall equal $5,000 for each number assigned to it and so 920703.2 � q�-a��� 1 2 3 4 5 6 7 8 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 41 42 43 44 45 46 47 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 i writing) and the Issuer shall execute (if necessary) and the on Registrar shall authenticate and deliver to the Holder of s ch Bond, without service charge, a new Bond or Bonds of the me series having the same stated maturity and interest rate and of any auChorized denomination or denominations, as reque ed by such Holder, in aggregate principal amount equal to a d in exchange for the unredeemed portion of the principa of the Bond so surrendered. Issuance• Pu ose• General Obli ation This Bond is one of an issue in the total principal amount f$4,700,000, all of like date of original issue and tenor, ex pt as to number, maturity, interest rate, denomination, and edemption privilege, which Bond has been issued pursuant to an in full conformity with the Constitution and laws of the St e of Minnesota, including particularly Minnesota Statut s, Chapter 475 and Sections 116.19 and 115.46, and the C rter of the Issuer, and pursuant Co a resolution adopted by e City Council of the Issuer on April 1, 1998 (the "Resol tion"), for the purpose of providing money to finance the ac isition, construction and repair of various improvements t the City's wastewater and storm water systems. This Bond is pa able out the General Obligation Bond Debt Service Account of e Sewer Service Enterprise Fund of the City, to which account h e been pledged gross revenues of the City's sewer system. T is Bond has been issued to aid in financing a sewage dispos system or part thereof pursuant to Minnesota Statutes, Sect'on 115.46. This Bond constitutes a general obligation of t e Issuer, and to provide moneys for the prompt and full payme of its principal, premium, if any, and interest when the sa e become due, the full faith and credit and taxing powers of th Issuer have been and are hereby irrevocably pledged. issuable s $5,000 and are exchan pri and the�hts Reso tion Req�strar. 920703.2 Denom'natio s• Exchan e• Resolution. The Bonds are olel as fully registered bonds in the denominations of i egral multiples thereof of a single maturity and g ble for fully registered Bonds of other authorized s in equal aggregate principal amounts at the office of the Bond Registrar, but only in the manner t to the limitations provided in the Resolution. is hereby made to the Resolution for a description of and duties of the Bond Registrar. Copies of the are on file in the principal office of the Bond 27 q�-�.y� 4 5 6 10 11 12 13 14 Transfer. This Bond is transferable by the Holder in person or by his, her or its attorney duly authorized in writing at the principal office of the Bond Registrar upon presentation and surrender hereof to the Bond Registrar, all subject to the terms and conditions provided in the Resolution and to reasona`�le regulations of the Issuer contained in any agreement with, o notice to, the Sond Registrar. Thereupon the Issuer shall execute and the Bond Registrar sha11 authenticate and del' er, in exchange for this Bond, one or more new fully registered�Bonds in the name of the transferee (but not registered in blanlv` to "bearer" or similar designation), of an authorized de omination or denominations, in aggregate principal amount equa to the principal amount of this Bond, of the same maturity and bearing interest at the same rate. 15 Fees u�on Transfer or Loss. The Bon Registrar may 16 require payment of a sum sufficient to cover y tax or other 17 governmental charge payable in connection wi the transfer or 18 exchange of this Bond and any legal or unus al costs regarding 19 transfers and lost Bonds. 20 21 22 23 24 25 26 27 Registrar may treat the person in registered as the owner hereof for payment as herein provided {except reverse side hereof with respect t other purposes, whether or not th' neither the Issuer nor the Bond� notice to the contrary. ner � The Issuer and Bond os� name this Bond is � purpose of receiving otherwise provided on the the Record Date) and for all Bond shall be overdue, and strar shall be affected by 28 Authentication. T s Bond shall not be valid or become 29 obligatory for any purpose r be entitled to any security unless 30 the Certificate o£ Authent'cation hereon shall have been executed 31 by the Bond Registrar. 32 Not ua ifie Tax- x m t O li ations. The Bonds have 33 not been designated b the Issuer as qualified tax-exempt 34 obligations" for pur oses of Section 265(b)(3) of the federal 35 Internal Revenue Co e of 1986, as amended. The Bonds do not 36 qualify for such signation. m qY-a�� fiXHIBITS Exhibit A - Proposals 920703.2 Councii Fiie # 1 b ay3 A ����.e 1 i y � (�� ' � � � l�\ � ` � 5y � C>reenSheet# `�'���`"1 O��VilV�� RESOLUTION� � �,����j1,`�,w, ts, a-�,a-� n �, , ClTY OF SAINT PAUL, MlNNESOI'A /� Prese�ted By Referred To Committee: Date 1 ACCEPTING PROPOSAI, ON SALE OF 2 $4,700,000 GENERAL OBLIGATION SEWER REVENUE 3 BONDS, SERIES 1998E, AND 4 PROVIDING FOR THEIR ISSUANCE 5 WHEREAS, the Director, Office of Financial Services, 6 has presented proposals received for the sale of $4,700,000 7 General Obligation Sewer Revenue Bonds, Series 1998E (the 8 "Bonds"l, of the City of Saint Paul, Minnesota (the "City"); and 9 WHEREAS, the proposals set forth on Exhibit A attached 10 hereto were received pursuant to the Terms of Proposal at the 11 offices of Springsted Incorporated at 10:30 A.M., Central Time, 12 this same day; and 13 WHEREAS, the Director, Office of Financial Services, 14 has advised this Council that the proposal of 15 U S ��.v�� r �r�c. was found to be the most 16 advantageous a d has recommended that said proposal be accepted; 17 and 18 WHEREAS, the proceeds of the Boncts will finance various 19 improvements to the City's wastewater and storm water systems 20 (the "Improvements"}, for which the City is proceeding pursuant 21 to its Charter and Minnesota Statutes, Chapter 475 and Sections 22 116.19 and 115.46, with any excess to be used for any other 23 purpose permitted by law; and 9207�3.2 °� g'a.`� 3 5 6 7 8 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 WHEREAS, the Bonds will provide money part of the costs of the abatement of combined of making improvements to any utility required abatement; and to pay a11 or sewer overflow and to effect the WFIEREAS� the City has heretofore issued registered obligations in certificated form, and incurs substantial costs associated with their printing and issuance, and substantial continuing transaction costs relating to their payment, transfer and exchange; and WHEREAS, the City has determined that significant savings in transaction costs will result from issuing bonds in "global book-entry form", by which bonds are issued in certificated form in large denominations, registered on the books of the City in the name of a depository or its nominee, and held in safekeeping and immobilized by such depository, and such depository as part of the computerized national securities clearance ancl settlement system (the "National System") registers transfers of ownership interests in the bonds by making computerized book entries on its own books and distributes payments on the bonds to its Participants shown on its books as the ownere of such interests; and such Participants and other banks, brokers and dealers participating in the National System will do likewise (not as agents of the City) if not the beneficial owners of the bonds; and 25 WHEREAS, "Participants" means those financial insti- 26 tutions for whom the Depository effects book-entry transfers and 27 pledges of securities deposited and immobilized with the 28 Depository; and 29 WHEREAS, The Depository Trust Company, a limited 30 purpose trust company organi2ed under the laws of the State of 31 New York, or any of its successors or successors to its functions 32 hereunder (the "Depository"), will act as such depository with 33 respect to Che Bonds except as set forth below, and the City has 34 heretofore delivered a letter of representations tthe "Letter of 35 Representations"} setting forth various matters relating to the 36 Depository and its role with respect to the Bonds; and 37 38 39 40 41 42 43 44 WHEREAS, the City will deliver the Bonds in the form of one certificate per maturity, each representing the entire principal amount of the Bonds due on a particular maturity (each a"Global Certificate"), which single certificate per maturity may be transferred on the City's bond register as required by the Uniform Commercial Code, but not exchanged smaller denominations unless the City determines to issue Replacement Bonds as grovided below; and date for �5 WHEREAS, the City will be able to replace the 26 Depository or under certain circumstances to abandon the "global 92�7a3.2 2 qg--a4 3 1 book-entry form" by permittiag the Global Certificates to be 2 exchanged for smaller denominations typical of ordinary bonds 3 registered on the City's bond register; and "Replacement Bonds" 4 means the certificates representing the Bonds so authenticatecl 5 and delivered by the Bond Registrar pursuant to paragraphs 6 and 6 12 hereof; and 7 WHEREAS, "Holder" as used herein means the person in 8 whose name a Bond is registered on the registration books of the 9 City maintained by the registrar appointed as provided in lo paragraph S(the "Bond Registrar"); and 11 WHEREAS, gross revenues (the "Revenues" as defined in 12 the City's Resolution No. 88-835, adopted May 24, 1988, being 13 referred to herein as the "General Resolution") of the City's 14 storm and sanitary sewer systems, including all piping, pumps, 15 valves, maintenance equipment and buildings, improvements and 16 real and personal property used in connection therewith, and al1 17 funds, accounts, contract rights, permits, authorization, 18 approach and intangibles related thereto (the "Sewer System"), 19 have been pledged to the payment of the City's Sewer Revenue 20 Bonds, Series 1988A, and Sewer Revenue Refunding Bonds, Series 21 1993 (the "Revenue Bonds"), and under the General Resolution the 22 pledge of Revenues to the payment of the Bonds is required to be 23 junior and subordinated to the pledge to the Revenue Bonds; and 24 WIiEREAS, the City has heretofore issued to the PFA its 25 General Obligation Sewer Revenue Note of 1993 (the "1993 Note"), 26 General Obligation Sewer Revenue Note of 1994 (the "1994 Note"), 27 General Obligation Sewer Revenue Note of 1995 (the "1995 Note"), 28 General Obligation Sewer Revenue Note of 1996 (the "1996 Note"), 29 and General Obligation Sewer Revenue Note of 1997 (the "1997 30 Note") and under the resolutions authorizing the issuance of the 31 1993 Note, 1994 Note, 1995 Note, 1996 Note and 1997 Note the 32 pledge of Revenues to the payment of the Bonds may be on a parity 33 of lien with the pledge to the 1993 Note, 1994 Note, 1995 I3ote, 34 1996 Note and 1997 Note; and 35 WHEREAS, the 1993 Note, 1994 Note, 1995 Note, 1996 Note 36 and 1997 Note are collectively referred to herein as the "PFA 37 Notes"; and 38 WHEREAS, Rule 15c2-12 of the Securities and Exchange 39 Commission prohibits "participating underwriters" from purchasing 40 or selling the Bonds unless the City undertakes to provide 41 certain continuing disclosure with respect to the Bonds; and 42 WHEREAS, pursuant to Minnesota Statutes, Section 43 475.60, Subdivision 2(9), public sale requirements do not apply 44 to the Bonds if the City retains an independent financial advisor 45 and determines to sell the Bonds by private negotiation, and the 46 City has instead authorized a competitive sale without 92D703.2 3 �g a�-t3 publication of notice thereof as a form of private negotiation; and 3 WHEREAS, proposals for 4 Springsted Incorporated pursuant 5 Terms of Proposal therein: 6 7 8 9 10 11 12 13 14 15 16 17 1. 8 19 ao 21 22 23 24 25 26 27 28 29 30 31 32 33 � 35 36 37 38 39 40 41 42 43 the Bonds have been solicited by to an Official Statement and NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Saint Paul, Minnesota, as follows: 1. Acceptance of Proposal. The proposal of U.S. Bancorp., Inc. (the "Purchaser"), to purchase $4,700,000 General Obligation Sewer Revenue Bonds, Series 1998E, of the City (the "Bonds", or individually a"Sond"}, in accordance with the Terms of Proposal for the bond sale, at the rates of interest set forth hereinafter, and to pay for the Bonds the sum of $4,639,910.40, plus interest accrued to settlement, is hereby found, 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: Oricrinal Tssue Date: Denominations: Maturities. The Boncls shall be titled "General Obligation Sewer Revenue Bonds, Series 1998E", shall be dated April 1, 1998, 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. G1oba1 Certificates sha11 each be in the denomination of the entire principal amount maturing on a single date, or, if a portion of said principal amount is prepaid, said principal amount less the prepaymenC. Replacement Bonds, if issued as provided in paragraph 6, shall be in the denomination of $5,000 each or in any integral multiple thereof of a single maturity. The Sonds shall mature on December 1 in the years and amounts as follows: Y ar 1999 20�0 2001 2002 2003 2004 2�05 2006 Amount Year Amount 920703.2 $155,000 16a,��0 165,000 175,000 180,000 190,000 195,000 205,000 2007 2��8 2009 2010 2011 2012 2a13 2018 0 $ 215,000 220,OQ0 230,000 240,000 250,000 265,000 275,OOQ 1,580,000 �U r �� / 4 5 6 7 8 1D 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 ;s 3. Purpose. The Bonds shall provide funds for the construction of various improvements to the City's wastewater and storm water systems (the "Improvements"?. The Bonds are issued to aid in financing a sewage disposal system or part thereof pursuant to Minnesota Statutes, Section 115.46. The proceeds of the Bonds shall be deposited and used as provided in paragraph 17, and any excess moneys shall be clevoted to any other purpose permitted by law. The total cost of the Improvements, which shaI1 include a11 costs enumerated in Minnesota Statutas, Section a75.65, is estimated to be at least equal to the amount of the Bonds. Work on the Improvements shall proceed with due diligence to completion. 4. Interest. The Bonds shall bear interest payable semiannually on June 1 and December 1 of each year (each, an °Interest Payment Date"), commencing December 1, 1998, calculated on the basis of a 3&0-day year of twelve 3Q-day months, at the respective rates per annum set forth opposite the maturity years as follows: Maturity Year Interest Rate Maturity Year Interest Rate 1999 2000 2001 2002 2003 2�04 2005 2006 3.70% 3.90 4.10 4.15 4.20 4.3� 4.40 4.45 2Q07 2008 2009 2010 2011 2012 2013 2015 4.50% 4.55 4.65 4.75 4.85 4.95 5.00 5.00 5. Description of the Global Certificates and Global Book-Entry System. Upon their original issuance the Bonds will be issued in the form of a single Global Certificate for each maturit�r, deposited with the Depository by the Purchaser and immobilized as provided in paragraph 6. No beneficial owners of interests in the Bonds wi11 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 participating in the National System. The Depository's book entries of beneficial ownership interests are authorized to be in increments of $5,000 of principal o£ 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 Registrar as paying agent, and in turn by the Bond Registrar 920�03.2 q �-a� 3 1 to the Depository or its nominee as registered owner of the 2 Global Certificates, and the Depository according to the laws and 3 rules governing it wi11 receive and forward payments on behalf of 4 the beneficial owners of the Global Certificates. Payment of principal of, premium, if any, and interest on a Global Certificate may in the City's discretion be made by such other method of transferring funds as may be requested by the Holder of a Global Certificate. 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 � Pursuant to 27 28 29 30 -- - - the request of the Purchaser to the Depository, which raquest is required by the Terms of Proposal, immediately upon the original delivery of the Bonds the Purchaser will deposit the Global Certificates representing all of the Bonds with the Depository. The Global Certificates shall be in typewritten form or otherwise as acceptable to the Depository, shall be registered in the name of the Depository or its nominee and shall be held immobilized from circulation at the offices of the Depository on behalf of the Purchaser and subsequent bondowners. The Depository or its nominee will be the sole holder of record of the Global Certificates and no investor or other party purchasing, selling or otherwise transferring 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, 31 (ii) To any successor of the Depository (or its 32 nominee) or any substitute depository (a '�substitute 33 depository") designated pursuant to clause (iii) of this 34 subparagraph, provided that any successor of the Depository 35 or any substitute degository must be both a"clearing 36 corporation" as defined in the Minnesota Uniform Commercial 37 Code at Minnesota Statutes, Section 336.8-102, and a 38 qualified and registered "clearing agency" as provided in 39 Section 17A of the Securities Exchange Act of 1934, as �0 amended, E1 (iii} To a substitute depository designated by and 2 acceptable to the City upon (a) the determination by the 3 Depository that the Bonds shall no longer be eligible for 4 its depository services or (b) a determination by the City 5 that the Depository is no longer able to carry out its 5 functions, provided that any substitute depository must be 920703.2 � � - �-�.� qualified to act as such, as provided in clause tii? of this subparagraph, or 3 a (iv) To those persons to whom transfer is requested in written transfer instructions in the event that: 5 (a} the Depository shall resign or discontinue 6 its services for the Bonds and the City is unable to 7 locate a substitute depository within two (2) months 8 following the resignation or determination of non- 9 eligibility, or io 11 12 13 14 15 16 17 18 (b1 upon a determination by the City in its sole discretion that (1) the continuation of the book-entry system described herein, which precludes the issuance of certificates (other than Global Certificates) to any Aolder other than the Depository (or its nominee), might adversely affect the interest of the beneficial owners o£ the Bonds, or (2) that it is in the best interest of the beneficial owners of the Bonds that they be ahle to obtain certificated bonds, 19 in either of which events the City shall notify Holders of 20 its determination and of the availability of certificates 21 (the "Replacement Bonds") to Aolders requesting the same and 22 the registration, transfer and exchange of such Bonds will 23 be conducted as provided in paragraphs 9B and 12 hereof. z� 25 26 27 28 29 3Q 31 32 33 34 35 36 37 38 39 40 41 42 43 44 In the event of a succession of the Depository as may be authorized by this paragraph, the Bond Registrar upon presentation of Global Certificates sha11 register their trans�er to the substitute or successor depository, and Che substitute or successor depository shall be treated as the Depository for all purposes and £unctions under this resolution. The Letter of Representations sha11 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. Redemption. (a) Optional Redemption. All Bonds maturing after December 1, 2006, 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 prepaymenC. 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 (treating amounts scheduled for mandatory redemption as maturities); 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 920703.2 �1 K -a-�l 3 1 principal and, if applicable, the specific Replacement Bonds to 2 be prepaid shall be chosen by lot by the Bond Registrar. 3 (b) Scheduled Mandatorv Redemption. Term Bonds 4 the year 2018 are subject to redemption and prepayment 5 December 1 in the years 2014 through 2017, inclusive, 6 of par plus accrued interest, without premium, in the amounts set forth below: Year 9 10 11 12 13 2014 2015 2016 2017 2018 Amount $290,000 300,�00 315,000 330,000 345,000 (Maturity) maturing in on each at a price years and 14 (c) Due Date. Bonds or portions thereof called for 15 redemption shall be due and payable on the redemption date, and 16 interest thereon shall cease to accrue from and after the 17 redemption date. 18 (d} Notation on Global Certificate. Upon a reduction in 19 the aggregate principal amount of a Global Certificate, the 20 Holder may make a notation of such redempCion on the panel 21 provided on the Global Certificate stating the amount so 22 redeemed, or may return the Global Certificate to the Bond 23 Registrar in exchange for a new Global Certificate authenticated 24 by the Bond Registrar, in proper principal amount. Such 25 notation, if made by the Holder, sha11 be for reference on1y, and 26 may not be relied upon by any other person as being in any way 27 determinative of the principal amount of such Global Certificate 28 outstanding, unlesa the Bond Registrar has signed the appropriate 29 column o£ the panel. � 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 (e? Selection of Replacement Bonds. To effect a partial redemption of Replacement Bonds having a common maturity date, the Bond Registrar prior to giving notice of redemption shall assign to each Replacement Bond having a common maturity date a distinctive number for each $5,000 of the principal amount of such Replacement Bond. The Sond Registrar sha11 then select by lot, using such method oP selection as it shall deem proper in its discretion, from the numbers so assigned to such Replacement Bonds, as many numbers as, at $5,000 for each number, shall equal the principal amount of such Replacement Bonds to be redeemed. The Replacement Bonds to be redeemed shall be the Replacement Bonds to which were assigned numbers so selected; provided, however, that only so much of the principal amount of each such Replacement Bond of a denomination of more than $5,000 shall be redeemed as shall equal $5,000 for each numbar assigned to it and so selected. 920703.2 �1�" 1 2 3 4 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 (f) Partial Redemption Qf Re�lacement Bonds. I£ 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 £orm satisfactory to the City and Bond Registrar duly executed by the Holder thereof or his, her or its attorney duly autharized in writing) and the City sha11 execute (if necessary) and the Bond Reqistrar sha11 authenticate and deliver to the Holder of such Replacement Bond, without service charge, a new Replacemen� 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. (g) Request for Redem�tion. The Bond Registrar shall call Bonds for redemption and payment as herein provided upon receipt by the Bond Registrar at least forty-five (45) days prior to the redemption date of a request of the City, in written form if the Bond Registrar is other than a City officer. Such request shall specify the principal amount of Bonds to be called for redemption and the redemption date. {h) Notice. Mailed notice of redemption shall be given 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 of the City of its intention to redeem and pay such Bonds at office of the Bond Registrar. Notice of redemption shall be to name the 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. Al1 notices of redemption shall state: (i) (ii) The redemption date; The redempCion price; 35 (iii) If less than all outstanding Bonds are to be 36 redeemed, the identiPication tand, in the case of partial 37 redemption, the respective principal amounts) of the Bonds 38 to be redeemed; 39 (iv) That on the redemption date, the redemption price 4o will become due and payable upon each such Bond, and that 41 interest thereon shall cease to accrue from and after said 42 date; and 43 (v) The place where such Bonds are to be surrendered 44 for payment of the redemption price (which shall be the 45 office of the Bond Registrar). 920703.2 9 ��-a�� 1 2 3 4 5 6 7 8 9 lo 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 (i) Natice to Depasitorv. Notices to The Depository Trust Company or its nominee shall contain the CUSIP numbers of the Bonds. If there are any Holders of the Bonds other than the Depository or its nominee, the Bond Registrar shall use its best efforts to deliver any such notice to the Depository on the business day next preceding the date of mailing of such notice to all other Holders. 8. Bond ReQistrar. First Trust National Association, in Saint Paul, Minnesota, is appointed to act as bond registrar and transfer agent with respect to the Bonds (the "Bond Registrar"), and shall do so unless and until a successor Bond Registrar is duly appointed, all pursuant to any contract the City and Bond Registrar shall execute which is consistent herewith. A successor Bond Registrar shall be an officer of the City or a bank or trust company eligible for designation as bond registrar pursuant to Minnesota Statutes, Chapter 475, and may be appointed pursuant to any contract the City and such successor Bond Registrar shall execute which is consistent herewith. The Bond Registrar shall also serve as paying agent unless and until a successor paying agent is duly appointed. Principal and interest on the Bonds shall be paid to the Aolders (or record holdersl of the Bonds in the manner set forth in the forms of Bond and paragraph 14 of this resolution. 9. Forms of Bond. The Bonds sha11 be in the form of Global Certificates unless and until Replacement Bonds are made available as provided in paragraph 6. Bach form of bond may contain such additional or different terms and provisions as to the form of payment, record date, notices and other matters as are consistent with the Letter of Representations and approved by the City Attorney. 31 A. Global Certificates. The Global Certi£icates, 32 together with the Certificate of Registration, Che Register of 33 Partial Payments, the form of Assignment and the registration 34 information thereon, shall be in substantially the following form 35 and may be typewritten rather than printed: 42�703.2 10 °l�-a.L1� 1 2 3 4 5 R- UNITED STATES.OF AMERICA STATE OF MINNESOTA RAMSEY COUNTY CITY OF SAINT PAUL b GENERAL OBLIGATION SEWER REVENUE � BOND, SERIES 1998E 8 INTEREST 9 RATE 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 i3 14 5 6 7 8 MATURITY DATE December 1, REGISTERED OWNER: PRINCIPAL AMOUNT: CUSIP 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 or 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 June 1 and December 1 of each year (each, an "Interest Payment Date"), commencing December 1, 1998, 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 ancl premium, 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, or 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 on1y, 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 DATE OF ORIGINAL ISSUE April 1, 1998 920703.2 �-�- `�$��N� 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Registrar has signed the appropriate column of the panel. Interest on this Bond will be paid on each Interest Payment Date in same-day £unds by 2:30 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 Date (the "Regular Record Date"). Interest payments shall be received by the Holder no later than 2:30 p.m., Eastern time; and principal and premium payments shall he received by the Holder no later than 2:30 p.m., Eastern time, if the Bond is surrendered for payment enough in advance to permit payment to be made by such time. Any interest 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 of business on a date (the "Special Record Date") fixed by the Bond Reqistrar 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. 23 Date of Pavment Not Business Dav. If the date for 24 payment of the principal of, premium, if any, or interest on this 25 8ond shall be a Saturday, Sunday, 1ega1 holiday or a day on which 26 banking institutions in the City o£ New York, New York, or the 27 city where the principal office of the Bond Registrar is located 28 are authorized by law or executive order to close, then the date 29 for such payment shall be the next succeeding day which is not a 30 Saturday, Sunday, legal holiday or a day on which such banking 31 institutions aze authorized to close, and payment on such date 32 shall have the same force and effect as if made on the nominal 33 date of payment. 34 Optional Redemotion. All Bonds of this issue ithe 35 "Bonds") maturing after December 1, 2006, are subject to 36 redemption and prepayment at the option of the Issuer on such 37 date and on any day thereafter at a price of par plus accrued 38 interest. Redemption may be in whole or in part of the Bonds 39 subject to prepayment. If redemption is in part, those Bonds 40 remaining unpaid may be prepaid in such order of maturity and in 41 such amount per maturity as the City shall determine (treating 42 amounts scheduled for mandatory redemption as maturities); and if 43 only part of the Bonds having a common maturity date are called 44 for prepayment, this Bond may be prepaid in $5,006 increments of 45 principal. 46 Scheduled Mandatory Redemption. The Bonds maturing in 47 the year 2018 shall be redeemed and prepaid on each December 1 in 48 the years 2014 through 2017, inclusive, at a price of par plus s2o�os.z 12 �'k� 1 accrued interest, without premium, in the years and amounts set 2 forth below: 3 4 5 6 Year 2014 2015 2016 2017 2018 Amount $290,000 300,000 315,000 330,000 345,000 9 Due Date. Bonds or portions 10 re@emption sha11 be due and payable on 11 interest thereon shall cease to accrue 12 redemption date. tMaturity) thereof called for the redemption date, and from and after the 13 Notice of Redemption. Mailed notice of redemption 14 shall be given to the paying agent (if other than a City officer} 15 and to each affected Holder of the Bonds. In the event any of 16 the Bonds are called for redemption, written notice thereof will 17 be given by first class mail mailed not less than thirty (30� 18 days prior to the redemption date to each Iiolder of Bonds to be 19 redeemed. In connection with any such notice, the "CUSIP" 20 numbers assigned to the Bonds shall be used. 21 Re_placement or Notation of Sonds after Partial 22 Redemption. Upon a partial redemption of this Bond which results 23 in the stated amount hereof being reduced, the Holder may in its 24 discretion make a notation on the panel provided herein of such 25 redemption, stating the amount so redeemed. Such notation, if 26 made by the Aolder, sha11 be for reference only, and may not be 27 relied upon by any other person as being in any way determinative 28 of the principal amount of the Bond outstanding, unless the Bond 29 Registrar has signed the appropriate column of the panel. 30 Otherwise, the Holder may surrender this Bond to the Bond 31 Registrar (with, if the Issuer or Sond Registrar so requires, a 32 written instrument of transfer in form satisfactory to the Issuer 33 and Bond Registrar duly executed by the Holder Chereof or his, 34 her or its attorney duly authorized in writing? and the Issuer 35 shall execute (if necessary) and the Bond Registrar shall 36 authenticate and deliver to the Holder of such Bond, without 37 service charge, a new Bond of the same series having the same 38 stated maturity and interest rate and of the authorized 39 denomination in aggregate principal amount equal to and in �0 exchange for the unredeemed portion of the principal of the Bond �l so surrendered. 2 Issuance: Purbose; General Obligation. This Bond is 3 one af an issue in the total principal amount of $4,700,000, all 4 oP like date of original issue and tenor, except as to number, 5 maturity, interest rate, denomination, and redemption privilege, 5 which Bond has been issued pursuant to and in full conformity 9ao7os.z 13 ��-a�� 4 5 6 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 41 42 43 44 45 46 47 48 with the Constitution and laws of the State o£ Minnesota, including particularly Minnesota Statutes, Chapter 475 and Sections 116.19 and 115.46, and the Charter of the Issuer, and pursuant to a resolution adopted by the City Council of the Sssuer on April l, 1998 (the "Resolution"), for the purpose of providing money to finance the acquisition, construction and repair of various improvements to the City's wastewater and sCorm water systems. This Bond is payable out of the General Obligation Bond Debt Service Account of the Sewer Service Enterprise Fund of the City, to which account have been pledged net revenues of the City's sewer system. This Bond has been issued to aid in financing a sewage disposal system or part thereof pursuant to Minnesota Statutes, Section 115.46. 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 £ull faith and credit and taxing powers of the Issuer have been and are hereby irrevocably pledged. Denominations; Exchanqe; 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 issuable 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 Sond 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. Re.placement Sonds. Replacement Bonds may be issued by the Issuer in the event that: (a) the Depository shall resign or discontinue its services for the Sonds, and only if the Issuer is unable to locate a substitute depository within two (2) months following the resignation or determination of non- eligibility, or (b) upon a determination by the Issuer in its sole discretion Chat (1) the continuation of the book-entry system described in the Resolution, which precludes the issuance of certificates (other than Global Certificates) to 920703.2 � � �''a 1 2 3 4 5 6 7 8 9 10 11 iz 13 14 15 16 17 18 19 20 21 22 23 24 25 26 any Holder other than the Depository (or its nominee), might adversely affect the interest of the beneficial owners of the Bonds, or (2) that it is in the best interest of the beneficial owners of the Bonds that they be able to obtain certificated bonds. Transfer. This Bond shall be registered in the name of the payee on the books of the Issuer by presenting this Bond for registration to the Bond Registrar, who will endorse his, her or its name and note the date of registration opposite the name of the payee in the certificate of registration attached hereto. Thereafter this Bond may be transferred by delivery with an assignment duly executed by the Aolder or his, her or its legal representatives, and the Issuer and Bond Registrar may treat the Holder as the person exclusively entitled to exercise all the rights and powers of an owner until this Sond 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 hereon by the Bond Registrar, all subject to the terms and conditions provided in the Resolution and to reasonable regulations of the Issuer contained in any agreement with, or notice to, the Bond Registrar. Transfer of this Bond may, at the direction and expense of the Tssuer, be subject to certain other restrictions if required to qualify this Bond as being "in registered form" within the meaning of Section 149(a) of the federal Internal Revenue Code of 1986, as amended. 27 Fees unon Transfer or Loss. The Bpnd Registrar may 28 require payment of a sum sufficient to cover any tax or other 29 governmental charge payable in connection with the transfer or 30 exchange of this Sond and any legal or unusual costs regarding 31 transfers and lost Bonds. 32 Treatment of Registered Owner. The Issuer and Bond 33 Registrar may treat the person in whose name this Bond is 34 registered as the owner hereof for the purpose of receiving 35 payment as herein provided (except as oCherwise provided with 36 respect to the Record Date) and for all other purposes, whether 37 or not this Sond sha11 be overdue, and neither the Issuer nor the 38 Bond Registrar shall be affected by notice to the contrary. 39 Authentication This Bond shall not be valid or become 40 obligatory for any purpose or be entitled to any security unless 41 the Certificate of Authentication hereon sha11 have been executed 42 by the Bond Registrar. 43 Not Oualified Tax-Exem_pt Obliaations. The Bonds have 44 not been designated by the Issuer as '�qualified tax-exempt 45 obligations" for purposes of Section 265(b)(3) of the federal 46 Internal Revenue Code of 1986, as amended. The Bonds do not 47 qualify for such designation. 920703,2 ].5 °l� -a.� 3 5 6 7 B 9 1Q 11 12 13 1§ 15 16 17 18 19 20 21 22 23 24 IT IS HEREBY CERTIFIED AND RECITED that al1 acts, conditions and things required by the Constitution and laws of the State of Minnesota and the Charter of the Issuer to be done, to happen and to be performed, precedent to and in the issuance of this Bond, have been done, have happened and have been performed, in regular and due form, time and manner as required by law; that the City has covenanted and agreed with the holder of this Bond that it wi11 impose and collect charges £or the service, use and availability of and connection to its municipal sewer system at the times and in amounts necessary to produce gross revenues adequate to pay all principal and interest when due on this Bond; that the City will levy a direct, annual, irrepealable ad valorem tax upon all of the taxable property in the City, without limitation as to rate or amount, for the years and in amounts sufficient to pay the principal of and interest on this Bond as they respectively become due, if the gross revenues from said municipal sewer system and any other revenues irrevocably appropriated to said General Obligation Bond Debt Service Account are insufficient therefor; and that this Bond, together with all other debts of the Issuer outstanding on the date of original issue hereof and on the date of its issuance and delivery to the original purchaser, does not exceed any constitutional or statutory or Charter limitation of indebtedness. 25 IN WITNESS WHEREOF, the City of Saint Paul, Ramsey 26 County, Minnesota, by its City Council has caused this Bond to be 27 executed on its behalf by the photocopied facsimile signature of 2& its Mayor, attested by the photocopied facsimile signature of its 29 Clerk, and countersigned by the photocopied facsimile signature 30 of its Director, Office of Financial Services, the official seal 31 having been omitted as permitted by law. 92D703.2 �-6 �t� -a'�� 1 2 3 4 Date of Registration: Registrable by: 5 BQND REGISTRAR'S 6 CERTIFICATE OF 7 AUTHENTICATIOI3 8 This Bond is one of the 9 Bonds described in the 10 Resolution mentioned 11 within. 12 13 14 , 15 Bond Registrar 16 17 18 19 20 By Authorized Signature Payable at: CITY OF SAII3T PAUL, RAMSEY COUNTY, MINNESOTA Mayor Attest: City Clerk Countersigned: Director, Office of Financial Services 21 General Obligation Sewer Revenue Bond, Series 1998E, No. R- 920703.2 17 q � -�.4 � 1 2 3 4 5 6 7 3 0 10 11 12 13 CERTSFICATE OF REGISTRATION The transfer of ownership of the principal amount of the attached Hond may be made only by the registered owner or his, her or its legal representative last noted below. DATE OF REGISTRATION REGISTERED OWNER SIGNATURE OF BOND REGISTRP.R 920703.2 m ° � 1 REGISTER OF PARTIAL PAYMENTS 2 The principal amount of the attached Bond has been prepaid on the 3 dates and in the amounts noted below: y Signature of Signature of 5 Date Amount Bondholder Bond Reaistrar 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 If a notation is made on this register, such notation has the 23 effect stated in the attached Bond., Partial payments do not 24 require the presentation of the attached Bond to the Bond 25 Registrar, and a Holder could fail to note the partial payment ?6 here. 92�703.2 �-9 a�-a�� 1 2 3 4 ABBREVIATIONS The following abbreviations, when used in the inscrigtion on the face of this Bond, sha11 be construed as though they were written out in full according to applicable laws or regulations: 5 TEN COM 6 TEN ENT 7 JT TEN 8 9 UTMA - 10 il 12 13 14 - as tenants in common - as tenants by the entireties - as joint tenants with right of survivorship and not as tenants in common as custodian for (Cust? (Minor) under the Uniform Transfers to Minors Act (State) Additianal abbreviations may also be used though not in the above list. 92�703.2 z 0 °t�-ay� F� AS S IGNMEN`P 2 For value received, the undersigned hereby sells, 3 assigns and transfers unto 4 the attached Bond and does 5 hereby irrevocably constitute and appoint y attorney to transfer the Bond on the 7 books kept for the registration thereof, with full power of 8 substitution in the premises. 9 Dated: 10 Notice: The assignor's signature to this 11 assignment must correspond with the name 12 as it appears upon the face of the 13 attached Bond in every particular, 14 without alteration or any change 15 whatever. 16 Signature Guaranteed: 17 18 Signature(s} must be guaranteed by a national bank or trust 19 company or by a brokerage firm having a membership in one of the 20 major stock exchanges or any other "Eligible Guarantor 21 Institution" as defined in 17 CFR 240.17Ad-15(a)(2). 22 The Bond Registrar will not effect transfer of this 23 Bond unless the information concerning the transferee requested 24 below is provided. 25 Name and Address: 26 27 28 29 36 (Include information for all joint owners if the Bond is held by joint accoun�.) s2o�oa.z 2 1 �t�-a� 3 1 B. Renlacement Bonds. If the City has notified 2 Holders that Replacement Bonds have been made available as 3 provided in paragraph 6, then for every Bond thereafter 4 transferred or exchanged (including an exchange to reflect the 5 partial prepayment of a Global Certificate not previously 6 exchanged for Replacement Bonds) the Bond Registrar shall deliver 7 a certificate in the form of the Replacement Bond rather than the 8 Global Certificate, but the Holder of a Global Certificate shall 9 not otherwise be required to exchange the Global Certificate for 10 one or more Replacement Bonds since the City recognizes that some 11 beneficial owners may prefer the convenience of the Depository's 12 registered ownership of the Bonds even though the entire issue is 13 no longer required to be in global book-entry form. The 14 Replacement Bonds, together with the Bond Registrar's Certificate 15 of Authentication, the form of Assignment and the registration 16 information thereon, shall be in substantially the following 17 form: 920703.2 2 2 qg"�' 1 UNITED STATES OF AMERICA 2 STATE OF MINNESOTA 3 RAMSEY COUNTY 4 CITY OF SAINT PAUL 5 R- g GENERAL OBLIGATION SEWER REVENtTE 7 BOND, SERIES 1998E 8 INTEREST MATURITY DATE OF 9 RA2'E DATE ORIGINAL ISSUE CUSIP 10 Apri1 1, 1998 11 12 13 14 15 16 17 1$ 19 20 21 22 23 24 as 26 27 28 29 30 31 32 33 34 35 i6 i7 �g 9 1 2 3 REGISTERED OTdNER: PRINCIPAL AMOUNTc DOLLARS KNOW ALL PERSONS BY THESE PRESENTS that the City of Saint Paul, Ramsey Count}r, 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 June 1 and December 1 of each year (each, an "Interest Payment Date"), commencing December 1, 1998, 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 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 successor paying agent duly appointed by the Issuer. Interest on this Bond will be gaid 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 olose of business on the fifteenth day of the calendar month preceding such Interest Payment Date (the "Regular Record Date"). Any interest not so timely paid shall cease to be payable to the person who is the Fiolder hereof as of the Regular Record Date, and sha11 be payable to the person who is the Holder hereof at the close of business on a date (the "Special Record Date") fixed by the Bond Registrar whenever money becomes available for 920703.2 Z 3 qg-�`� 1 payment of the defaulted interest. Notice of the Special Record 2 Date shall be given to Bondholders not less than ten days prior 3 to the Special Record Date. The principal of and premium, if 4 any, and interest on this Bond are payable in lawful money of the 5 United States of America. 6 REFERENCE IS HEREBY MADE TO THE FURTAER PROVISIONS OF 7 THIS BOND SET FORTH ON THE REVERSE HEREOF, WHICH PROVISIONS SHALI, 8 FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH HERE. 9 10 11 12 13 14 15 16 17 1S 19 20 21 22 23 24 25 26 27 28 29 30 31 32 IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota and the Charter of the Issuer to be done, to happen and to be performed, precedent to and in the issuance of this Bond, have been done, have happened and have been performed, in regular and due form, time and manner as required by law; that the City has covenanted and agreed with the holder of this Bond that it will impose and collect charges for the service, use and availability of and connection to its municipal sewer system at the times and in amounts necessary to produce gross revenues adequate to pay all principal and interest when due on this Bond; that the City will levy a direct, annual, irrepealable ad valorem tax upon all of the taxable property in the City, without limitation as to rate or amount, for the years and in amounts sufficient to pay the principal of and interest on this Bond as they respectively become due, if the gross revenues from said municipal sewer system and any other revenues irrevocably appropriated to said General Obligation Bond Bebt Service Account are insufficient therefor; and that this Bond, together with all other debts of the Issuer outstanding on the date of original issue hereof and on the date of its issuance and delivery to the original purchaser, does not exceed any constitutional or statutory or Charter limitation of indebtedness. 33 IN WITNESS WHEREOF, the City of Saint Paul, Ramsey 34 County, Minnesota, by its City Council has caused this Bond to be 35 executed on its behalf by the original or facsimile signature of 36 its Mayor, attested by the original or facsimile signature of its 37 Clerk, and countersigned by the original or facsimile signature 38 of its Director, Office of Financial Services, the official seal 39 having been omitted as permitted by law. 920703.2 2 4 q��ly� 1 2 3 4 Date of Registration: 5 BOND REGISTRAR'S 6 CERTIFICATE OF 7 AITTHENTICATION 8 This Bond is one of the 9 Bonds described in the 10 Resolution mentioned 11 within. 12 13 14 , 15 Bond Registrar 16 17 18 19 By Authorized Signature 920703.2 Registrable by: Payable at: _ CIfiY OF SAINT PAUL, RAMSEY COUNTY, MINNESOTA Mayor Attest: City Clerk Countersigned: Director, Office of Financial Services 25 qg-�y� 1 ON REVERSE OF BOND 2 Date of Payment Not Business Day. If the date for 3 payment of the principal of, premium, if any, or interest on this 4 Bond sha11 be a Saturday, Sunday, legal holiday or a day on which 5 banking institutions in the City of New York, New York, or the 6 city where the principal office of the Bond Registrar is located 7 are authorized by 1aw or executive order to close, then the date 8 for such payment shall be the next succeeding day which is not a 9 Saturday, Sunday, legal holiday or a day on which such banking 10 institutions are authorized to close, and payment on such date 11 shall have the same force and effect as if made on the nominal 12 date of payment. 13 Optional Redemption. All Bonds of this issue (the 14 "Bonds") maturing after December 1, 2006, are subject to 15 redemption and prepayment at the option of the Issuer on such 16 date and on any day thereafter at a price of par plus accrued 17 interest. Redemption may be in whole or in part of the Bonds 18 subject to prepayment. If redemption is in part, those Bonds 19 remaining unpaid may be prepaid in such order of maturity and in 20 such amount per maturity as the City shall determine (treating 21 amounts scheduled for mandatory redemption as maturities); and if 22 only part of the Bonds having a common maturity date are called 23 for prepayment, the specific Bonds to be prepaid shall be chosen 24 by lot by the Bond Registrar. 25 26 27 28 29 30 31 32 33 34 35 Scheduled Mandatory Redemption, The Bonds maturing in the year 2018 shall be redeemed and prepaid on each December 1 in the years 2�14 through 2017, inclusive, at a price o� par plus accrued interest, without premium, in the years and amounts set forth below: Year 2014 2015 2016 2017 2018 Amount $290,000 300,000 315,000 330,000 345,OD0 (Maturity) 36 ' Due Date. Bonds or portions 3'I redemption shall be due and payable on 38 interest thereon shall cease to accrue 39 redemption date. 40 41 42 43 44 45 46 47 thereof called for the redemption date, and from and after the Notice of Redemption. Mailed notice of redemption sha11 be given to the paying agent (if other than a City officer) and to each affected Holder of the Bonds. In the event any of the Bonds are called for redemption, written notice thereof will be given by first class mail mailed not less than thirty (30l days prior to the redemption date to each Holder of Bonds to be redeemed. In conneetion with any such notice, the "CtISIP" numbers assigned to the Bonds shall be used. szo�os.z 2 6 �l �' - ay� 2 3 4 9 10 11 12 13 14 15 16 1'7 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 a - 7 48 49 ' Selection of Bonds for Redemption. 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 number, shall equal the principal 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 o£ such Bond of a denomination of more than $5,000 shall be redeemed as sha11 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 sha11 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. Issuance; Purpose; General Obliaation. This Sond is one of an issue in the total principal amount of $4,700,000, 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 Mittnesota, including particularly Minnesota Statutes, Chapter 475 and Sections 116.19 and 115.46, and the Charter of the Issuex, and pursuant to a resolution adopted by the City Council of the Issuer on April 1, 1998 (the "Resolution"}, for the purpose of providing money to finance the acquisition, construction and repair of various improvements to the City's wastewater and storm water systems. This Bond is payable out the General Obligation Bond Debt Service Account of the Sewer Service Enterprise Fund of the City, to which account have been pledged net revenues of the City's sewer system. This Bond has been issued to aid in financing a sewage disposal system or part thereof pursuant to Minnesota Statutes, Section 115_46. This Sond 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 full faith and credit and taxing powers of the Issuer have been and are hereby irrevocably pledged. 920703.2 2 7 q�-��� 1 Denominations: Exchanc�e; ResoluCion. The Bonds are 2 issuable solely as fully registered bonds in the denominations of 3 $5,000 and integral multiples thereof of a single maturity and 4 are exchangeable for fully registered Bonds of other authorized 5 denominations in equal aggregate principal amounts at the 6 principal office o£ the Bond Registrar, but only in the manner 7 and•subject to the limitations provided in the Resolution. 8 Reference is hereby made to the Resolution for a description of 9 the rights and duties of the Bond Reqistrar. Copies of the 10 Resolution are on file in the principal office of the Bond 11 Registrar. 12 Transfer. This Bond is transferable by the Holder in 13 person or by his, her or its attorney duly authorized in writing 14 at the principal office of the Bond Registrar upon presentation 15 and surrender hereof to the Bond Registrar, all subject to the 16 terms and conditiotts provided in the Resolution and to reasonable 17 regulations of the Issuer contained in any agreement with, or 18 notice to, the Hond Registrar. Thereupon Che Issuer shall 19 execute and the Bond Registrar shall authenticate and deliver, in 20 exchange for this Bond, one or more new fully registered Bonds in 21 the name o£ the transferee (but not registered in blank or to 22 "bearer" or similar designation), of an authorized denomination 23 or denominations, in aggregate principal amount equal to the 24 principal amount o£ this Bond, of the same maturity and bearing 25 interest at the same rate. 26 Fees upon Transfer or Loss. The Bond Registrar may 27 require payment of a sum sufficient to cover any tax or other 2s governmental charge payable in connection with the transfer or 29 exchange of this Bond and any legal or unusual costs regarding 30 trans£ers and lost Bonds. 31 Treatment of Reaistered Owner. The Issuer and Bond 32 Registrar may treat the person in whose name this Bond is 33 registered as the owner hereof for the purpose of receiving 34 payment as herein provided (except as otherwise provided on the 35 reverse side hereo£ with respect to the Record Aate) and for all 36 other purposes, whether or not this Bond sha11 be overdue, and 37 neither the Issuer nor the Bond Registrar shall be affected by 38 notice to the contrary. 39 Authentication This Bond shall not be valid or become 40 obligatory for any purpose or be entitled to any security unless 41 the Certificate of Authentication hereon shall have been executed 42 by the Bond Registrar. 43 lvot Oualified Tax-Exempt Obliaations. The Bonds have 44 not been designated by the Issuer as "qualified tax-exempt 45 obligations" for purposes of Section 265(by(3} of the federal 46 Internal Revenue Code of 1986, as amended. The Bonds do not 47 qua�ify for such designation. 92o7D3.2 2 8 o��-ay� 1 ABBREVIATIONS 2 The following abbreviations, when used in the 3 inscription on the face of this Bond, shall be construed as 4 though they were written out in full according to applicable laws 5 or regulations: 6 TEN COM - as tenants in common '1 TEN ENT - as tenants by the entireties 8 JT TEN - as joint tenants with right of survivorship 9 and not as tenants in common 10 UTMA - as custodian for 11 (Cust) (Minor) 12 under the Uniform Transfers to Minors Act 13 (State) 14 Additional abbreviations may also be used 15 though not in the above list. 9207a3.2 Z 9 q�'��� 1 AS S I GNMEI3T 2 For value received, the undersigned hereby sells, 3 assigns and transfers unto 4 the within Bond and does 5 hereby irrevocably constitute and appoint 6 attorney to transfer the Bond on the books kept for the 7 registration thereof, with full power of substitution in the 8 premises. 9 Dated: 1� Notice: The assignor's signature to this 11 assignment must correspond with the name 12 as it appears upon the face of the 13 within Bond in every particular, without 14 alteration or any change whatever. 15 SignaCure Guaranteed: 16 17 Signature(s) must be guaranteed by a national bank or trust 18 company or by a brokerage firm having a membership in one of the 19 major stock exchanges or any other "Eligible Guarantor 20 Institution" as defined in 17 CFR 240.17Ad-15(a?(2). 21 The Bond Registrar will not effect transfer of this 22 Bond unless the information concerning the transferee requested 23 below is provided. 24 Name and Address: 25 26 27 (Include information for all joint owners 2g if the Bond is held by joint account.) 9207�3.2 3 � q8 -ay3 1 2 3 8 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 41 10. Execution. The Bonds shall be executed on behalf of the City by the signatures of its Mayor, Clerk and Director, O£fice of Financial 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 behalf of such absent or disabled officer. In case any such officer whose signature or facsimile of whose signature shall appear on the Bonds sha11 cease to be such officer before the delivery of the Bonds, such signature or facsimile sha11 nevertheless be valid and sufficient for all purposes, the same as if he or she had remained in office until delivery. 11. Authen ication• Date o£ Re�istration. No Bond shall be valid or obligatory for any purpose or be entitled to any security or bene£it 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 shall 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, 1998. The Certificate of Authentication so executed on each Bond shall be conclusive evidence that it has been authenticated and delivered under this resolution. 12. Reaistration; Tranafer; Exchanae. The City will cause to be kept at the principal office of the Bond Registrar a bond register in which, subject to such reasonable regulations as the Bond Registrar may prescribe, the Bond Registrar sha11 provifle for the registration of Bonds and the registration of transfers of Bonds entitled to be registered or transferred as herein provided. 42 A Global Certificate shall be registered in the name of 43 the payee on the books of the Bond Registrar by presenting the 44 Global Certificate for registration to the Bond Registrar, who 45 will endorse his or her name and note the date of registration 46 opposite the name of the payee in the certificate of registration 920703 .2 3 �- 9U 1 2 3 4 5 6 10 11 12 13 on the Global Certificate. Thereafter a Global Certificate 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 Aolder as the person exclusively entitled 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 this resolution and to reasonable regulations of the City contained in any agreement with, or notice to, the Bond Registrar. 14 Transfer of a Global Certificate may, at the direction 15 and expense of the City, be subject to other restrictions if 16 required to qualify the Global Certificates as being "in 17 registered form" within the meaning of Section 149(a) of the 18 federal Internal Revenue Code of 1986, as amended. 19 If a Global Certificate is to be exchanged for one or 20 more Replacement Bonds, all of the principal amount of the Global 21 Certificate shall be so exchanged. 22 23 24 25 26 27 28 29 30 31 32 Upon surrender for transfer of any Replacement Bond the principal office of the Bond Registrar, the City shall execute (if necessary), and the Bond Registrar shall authenticate, insert the date of registration (as provided in paragraph 11) of, and deliver, in the name of the designated transferee or transferees, one or more new Replacement Bonds at of any authorized denomination or denominations of a like aggregate principal amount, having the same stated maturity and interest rate, as requested by the transferor; provided, however, that no bond may be registered in blank or in the name of "bearer" or similar designation. 33 At the option of the Holder of a Replacement Bond, 34 Replacement Bonds may be exchanged for Replacement Bonds of any 35 authorized denomination or denominations of a like aggregate 36 principal amount and stated maturity, upon surrender of the 37 Replacement Bonds to be exchanged at the principal office of the 38 Bond Registrar. Whenever any Replacement Sonds are so 39 surrendered for exchange, the City shall execute Eif necessary), 40 and the Bond Registrar sha11 authenticate, insert the date of 41 registration of, and deliver the Replacement Bonds which the 42 Iiolder making the exchange is entitled to receive. Global 43 Certificates may not be exchanged for Global Certificates of 44 smaller denominations. 920703.2 3 2 9�-�y 1 All Bonds surrendered upon any exchange or transfer 2 provided for in this resolution shall be promptly cancelled by 3 the Bond Registrar and thereafter disposed of as directed by the 4 City. 5 Al1 Bonds delivered in exchange for or upon transfer of 6 Bonds shall be valid general obligations of the City evidencing 7 the same debt, and entitled to the same benefits under this 8 resolution, as the Bonds surrendered for such exchange or 9 transfer. 10 Every Bond presented or surrendered for transfer or 11 exchange sha11 be duly endorsed or be accompanied by a written 12 instrument of transfer, in form satisfactory to the Bonfl 13 Registrar, duly executed by the Holder thereof or his, her or its 14 attorney duly authorized in writing. - 15 The Bond Registrar may require payment of a sum 16 sufficient to cover any tax or other governmental charge payable 17 in connection with the transfer or exchange of any Bond and any 18 legal or unusual costs regarding transfers and lost Bonds. 19 Transfers shall also be subject to reasonable 20 regulations of the City contained in any agreement with, or 21 notice to, the Bond Registrar, including regulations which permit 22 the Bond Registrar to close its Cransfer books between record 23 dates and payment dates. 24 13. Riqhts Upon Transfer or Exchancre. Each Bond 25 delivered upon transfer of or in exchange for or in lieu of any 26 other Bond shall carry all the rights to interest accrued and 27 unpaid, and to accrue, which were carried by such other Bond. 28 29 30 31 32 33 34 35 36 37 3S 39 40 41 42 14. Interest Payment; Record Date. Interest on any Global Certificate sha11 be paid as provided in the first paragraph thereof, and interest on any Replacement Bond shall be paid on each Interest Payment Date by check or draft mailed to the person in whose name the Bond is registered (the "Holder") on the registration books of the City maintained by the Bond Registrar, and in each case at the address appearing thereon at the close of business on the fifteenth (15th) day of the calendar month preceding such Interest Payment Date (the "Regular Record Date"1. Any such interest not so timely paid shall cease to be payable to the person who is the Holder thereof as o£ the Regular Record Date, and shall be payable to the person who is the Holder thereof at the close of business 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 920�03.2 3 3 a��ay� 4 5 Special Record Date shall be given by the Bond Registrar to the Holders not less than ten (10) days prior to the Special Record Date_ 15. 6 (A) For the purposes of all actions, consents and other 7 matters a££ecting iiolders of the Bonds, other than payments, 8 redemptions, and purchases, the City may (but sha11 not be 9 obligated to) treat as the Holder of a Bond the beneficial owner 10 of the Bond instead of the person in whose name the Bond is 11 registered. For that purpose, the City may ascertain the 12 identity of the beneficial owner of the Bond by such means as the 13 Bond Registrar in its sole discretion deems appropriate, 14 including but not limited to a certificate from the person in 15 whose name the Bond is registered identifying such beneficial 16 owner. 17 (B) The City and Bond Registrar may treaC the person in 18 whose name any Bond is registered as the owner of such Bond for 19 the purpose of receiving payment of principal of and premium, if 20 any, and interest (subject to the payment provisions in paragraph 21 14 above) on, such Sond and for all other purposes whatsoever 22 whether or not such Bond shall be overdue, and neither the City 23 nor the Bond Registrar shall be affected by notice to the 24 contrary. 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 4� 41 42 (C) Any consent, request, direction, approval, objection or other instrument to be signed and executed by the Holders may be in any number of concurrent writings of similar tenor and must be signed or executed by such Holders in person or by agent appointed in writing. Proof of the execution of any such consent, request, direction, approval, objection or other instrument or of the writing appointing any such agent and of the ownership of Bonds, if made in the following manner, shall be sufficient for any of the purposes of this resolution, and sha11 be conclusive in favor of the City with regard to any action taken by it under such request or other instrument, namely: (1) The fact and date of the execution by any person of any such writing may be proved by the certificate of any o£ficer in any jurisdiction who by law has power to take acknowledgments within such jurisdiction that the person signing such writing acknowledged before him or her the execution thereof, or by an affidavit of any witness to such execution. 920103.2 34 � �_yy 1 1 (2) Subject to the provisions of subparagraph (A) 2 above, the fact of the ownership by any person of Bonds and 3 the amounts and numbers of such Bonds, and the date of the 4 holding of the same, may be proved by reference to the bond 5 register. 6 16. Delivery; Application of Proceeds. The Global 7 Certificates when so prepared and executed shall be delivered by 8 the Director, Office of Financial Services, to the Purchaser upon 9 receipt o£ the purchase price, and the Purchaser shall not be 10 obliged to see to the proper application thereof. 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 41 42 43 44 45 46 47 48 17. Fund and Accounts. There has heretofore been created (as provided in the General Resolution) a separate fund of the City designated the "Sewer Service Enterprise Fund" (the "Fund"). The Fund shall be maintained in the manner specified in the General Resolution and herein until the Revenue Bonds, and interest thereon, have been fully paid, and as specified herein until the Bonds and interest thereon have been fully paid. There shall be maintained in the Fund, in addition to the Construction Account, Operation and Maintenance Account, Revenue Bond Debt Service Account, Reserve Account, Excess Investment Earnings Account and 1993 Refunding Escrow Account heretofore established with respect to the Revenue Bonds, and the PFA Construction Account and PFA Debt Service Account heretofore established with respect to the PFA Notes, the following two (2) separate accounts, to which shall be credited and debited all income and disbursements of the Fund relating to the Bonds as hereinafter set forth. The Treasurer and all municipal officials and employees concerned therewith sha11 establish and maintain financial records of the receipts and disbursements of the Sewer System in accordance with this resolution. In such records there shall be maintained accounts of the Fund for the purposes and in the amounts as follows: (i) A"General Oblicration Bond Construction Account", to which 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 $4,63&,9�0. From the General Obligation Bond Construction 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 incurred 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 General Obligation Sond Construction 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 920703.2 35 q�-ay3 1 Revenues pledged herein; and provided further that if upon 2 completion of the Improvements there shall remain any 3 une�ended balance in the General Obligation Bond 4 Construction Account, the balance may be used for any other 5 purpose permitted by law, or transferred to the General 6 Obligation Bond Debt Service Account. A11 earnings on the 7 General Obligation Bond Construction Account shall be 8 transferred to the General Obligation Bond Debt Service 9 Account, or may remain in the General Obligation Bond 10 Construction Account. 11 (ii) A"General Obligation Bond Debt Service Account", 12 to which there shall be irrevocably appropriated, pledged 13 and credited: (a) al1 accrued interest received upon 14 delivery of the Bonds; (b) all funds paid for the Bonds in 15 excess of $4,638,900; (c) Revenues (as defined in the 16 General Resolution, and as provided in Section 4.03(A) Sixth 17 thereof) in an amount sufficient, with other moneys, to pay 18 the principal of, and interest on, the Bonds when due; (d) 19 any collections of all taxes which may hereafter be levied 20 for the payment of the Bonds and interest thereon as 21 provided in paragraph 19; (e) all funds remaining in the 22 General Obligation Bond Construction Account after 23 completion of the Improvements and payment of the costs 24 thereof, not so used for any other purpose permitted by law; 25 (f) all investment earnings on moneys held in the General 26 Obligation Bond Debt 5ervice Account; and (g) any and all 27 other moneys which are properly available and are 28 appropriated by the governing body of the City to the 29 General Obligation Bond Debt Service Account. 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 (iii) Excess Revenues may be used for any proper purpose to the extent provided in the General Resolution. The General Obligation Bond Debt Service Account sha11 be used solely to pay the grincipal and interest and any premiums for redemption of the Bonds and any other bonds of the City heretofore or hereafter issued by the City and made payable from the General Obligation Bond Debt Service Account as provided by law, or to pay any rebate due to the United States. No portion of the proceeds of the Bonds shall be used directly or indirectl� to acquire higher yielding investments or to replace funds which were used directly or indirectly to acquire higher yielding investments, except (1) for a reasonable temporary period until such proceeds are needed for the purpose for which the 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 Fund, General Obligation Bond Construction Account or General Obligation Bond Debt Service Account (or 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 9zo�os.z 3 6 ��-ay � 1 a 3 4 5 6 7 8 9 10 11 iz 13 14 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 portion" made available under the federal arbitrage regulations. In addition, the proceeds of the Bonds and money in the Fund, General Obligation Bond Construction Account or General Obligation Bond Debt Service Account shall not be invested in obligations or deposits issued by, guaranteed by or insured by Che United States or any agency or instrumentality thereof if and to the extent that such invest- ment would cause the Bonds to be "federally guaranteed" within the meaning of Section 149(b) of the federal Internal Revenue Code of 1986, as amended (the "Code"). 15 18. Coverage Test• rteacre oi xevenues• �xcess 16 Revenues• Parit� Bonds• Pledae to Produce Revenues. It is hereby 17 found, determined and declared that the Revenues of the Sewer 18 System are sufficient in amount, when used in the order provided 19 in the General Resolution, to pay when due one hundred five 20 percent {105%) of the principal of and interest on the Bonds, and 21 the 12evenues of the Sewer System are hereby pledged for the 22 payment of the Bonds, but solely to the extent required to meet, 23 with other pledged sources, one hundred five percent (lOSo) of 24 the principal of, and interest on, the Bonds as the same become 25 due. Excess Revenues may be used for any proper purpose as 26 provided in the General Resolution. 27 Nothing contained herein shall be deemed to preclude 28 the City from making further pledges and appropriations of the 29 Revenues of the Sewer System for the payment of other or 30 additional obligations of the City, provided that it has first 31 been determined by the City Council that estimated Revenues of 32 the Sewer System will be sufficient, in addition to all other 33 sources, for the payment of the Bonds and suoh additional 34 obligations, and any such pledge and appropriation of the 35 Revenues may be made superior or subordinate to, or on a parity 36 with, the pledge and appropriation herein. The Bonds are issued 37 pursuant to Minnesota Statutes, Section 115.46, and nothing 38 herein shall preclude the City from levying taxes for the payment 39 of the Bonds. 4� 41 42 43 44 45 46 47 48 Revenues are hereby pledqed to the payment of the Bonds. The lien on Revenues securing the Bonds is hereby expressly made a lien on Revenues junior and subsequent to the lien of the General Resolution as it applies to the Revenue Bonds, all as provided in Section 6.01(A) of the General Resolution. The Bonds shall be paid from the Operation and Maintenance Account of the Sewer Service Enterprise Fund as provided in Section 4.03(A) Sixth of the General Resolution, and for this purpose it is hereby found, determined and declared that 920703.2 37 qx-a�t� 1 2 4 5 6 10 the Bonds finance Improvements (as defined in the General Resolution). As provided in paragraph 10 of each of the resolutions authorizing issuance of the PFA Notes, it is hereby found, determined and declared that estimated revenues of the Sewer System will be sufficient, in addition to all other sources, for the payment of the PFA Notes and the Bonds. The pledge and appropriation of the Revenues to the payment of the Bonds shall be on a parity with the pledge and appropriation to the payment of the PFA Notes. 11 In accordance with Minnesota Statutes, Section 116.19, 12 the City hereby covenants and agrees with the holder of the Bonds 13 that it will impose and collect charges for the service, use and 14 availability of and connection to the Sewer System the times 15 and in the amounts required to produce Revenues adequate to pay 16 a11 principal and interest when due on the Bonds. Nothing herein 17 shall preclude the City from levying taxes for the payment of the 18 Bonds as permitted by Minnesota Statutes, Section 115.46. 19 19. General Obliaation Pledcre. For the prompt and 20 full payment of the principal and interest on the Bonds, as the 21 same respectively become due, the full faith, credit and taxing 22 powers of the City shall be and are hereby irrevocably pledged. 23 If the Revenues of the Sewer System appropriated and pledged to 24 the payment of principal of, and interest on, the Bonds, together 25 with other funds irrevocably appropriated to the General 26 Obligation Bond Debt Service Account referred to in paragraph 17 27 of this resolution, shall at any time be insufficient to pay such 28 principal and interest when due, the City covenants and agrees to 29 levy, without limitation as to rate or amount, an ad valorem tax 30 upon all taxable property in the City sufficient to pay such 31 principal and interest as they become due. If the balance in the 32 General Obligation Bond Debt Service Account (as defined in 33 paragraph 17 hereof) is ever insufficient to pay all principal 34 and interest then due on the Bonds payable therefrom, the 35 de£iciency shall be promptly paid out of any other funds of the 36 City which are available for such purpose, including the general 37 fund of the City, and such other funds may be reimbursed with or 38 without interest from the General Obligation Bond Debt Service 39 Account when a sufficient balance is available therein. 40 41 42 43 44 45 46 4? 20. Certificate of Reaistration. The Director, Office of Financial Services, is hereby directed to file a certified copy of this resolution witta the officer of Ramsey County, Minnesota, performing the functions of the oounty auditor (the "County Auditor"), together with such other in£ormation as the County Auditor shall require, and to obtain the County Auditor's certificate that the Bonds have been entered in the County Auditor's Bond Register. 920703.2 �7 q� 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 21. Records and Certificates. The officers of the City are hereby authorized and directed to prepare and furnish to the Purchaser, and to the attorneys approving the legality of the issuance of the Bonds, certified copies of all proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the City, and such other affidavits, certificates and information as are required to show the facts relating to the legality and marketability of the Bonds as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore furnished, shall be deemed representations of Che City as to the facts recited therein. 22. Necrative Covenants as to Use of Proceeds and Improvements. The City hereby covenants not to use the proceeds of the Bonds or to use the Improvements, or to cause or permit them to be used, or to enter into any deferred payment arrangements for the cost of the Improvements, in such a manner as to cause the Bonds to be "private activity bonds" within the meaning of Sections 1�3 and 141 through 15Q of the Code. The 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 governmental purpose of the issue. The City hereby aovenants not to use the proceeds of the Bonds in such a manner as to cause the Bonds to be "hedge bonds" within the meaning of Section 149(g) of the Code. 28 23. Tax-Exempt Status of the Bonds; Rebate; Elections. 29 The City shall comply with requirements necessary under the Code 30 to establish and maintain the exclusion from gross income under 31 Section 103 of the Code of the interest on the Bonds, including 32 without limitation requirements relating to temporary periods for 33 investments, limitations on amounts invested at a yield greater 34 than the yield on the Bonds, and the rebate of excess investment 35 earnings to the United States. 36 The City expects that the two-year expenditure 37 exception to the rebate requirements may apply to the 38 construction proceeds of the Bonds. 39 If any elections are available now or hereafter with 40 respect to arbitrage or rebate matters relating to the Bonds, the 41 Mayor, Clerk, Treasurer and Director, Office of Financial 42 Services, or any of them, are hereby authorized and directed to 43 make such elections as they deem necessary, appropriate or 44 desirable in connection with the Bonds, and all such elections 45 shall be, and shall be deemed and treated as, elections of the 46 City. 920703.2 3 9 q�_1`1� 8 9 10 11 12 13 14 15 16 24. No Desicrnation of Qualified Tax-Exempt Obligations. The Bonds, together with other obligations issued by Che City in 1998, exceed in amount those which may be qualified as "qualified tax-exempt obligations" within the meaning of Section 265(b�(3) of the Code, and hence are not designated for such purpose. 25. Letter of Representations. The Letter of Representations for the Bonds is hereby confirmed to be the Blanket Issuer Letter of Representations dated April 10, 1946, by the City and received and accepted by The Depository Trust Company. So long as The Depository Trust Company is the Depository or it or its nominee is the Holder of any Global Certificate, the City shall comply with the provisions of the Letter of Regresentations, as it may be amended or supplemented by the City from time to time with the agreement or consent of The Depository Trust Company. 17 26. Negotiated Sale. The City has retained Springsted 18 Incorporated as an independent financial advisor, and the City 19 has heretofore determined, and hereby determines, to sell the 20 Bonds by private negotiation, all as provided by Minnesota 21 Statutes, Section 475.60, Subdivision 2(9). 22 23 24 25 26 27 28 27. Continuing Disclosure. The City is an obligated person with respect to the Bonds. The City hereby agrees, in accordance with the provisions of Rule i5c2-12 (the "Rule"), promulgated by the Securities and Exchange Commission (the "COmmission") pursuant to the Securities Exchange Act of 1934, as amended, and a Continuing Disclosure Undertaking (the "Undertaking") hereinafter described, to: 29 A. Provide or cause to be grovided to each nationally 30 recognized municipal securities information repository 31 ("NRMSIR") and to the appropriate state information 32 depositor�r ("SID"�, if any, for the State of Minnesota, in 33 each case as designated by the Commission in accordance with 34 the Rule, certain annual financial intormation and operating 35 data in accordance with the Undertaking. The City reserves 36 the right to modify from time to time the terms of the 37 Undertaking as provided therein. 38 B. Provide or cause to be provided, in a timely 39 manner, to (i) each NRMSIR or to the Municipal Securities 40 Rulemaking Board ("MSRB") and (ii) the SID, notice of the 41 occurrence oP certain material events with respect to the 42 Bonds in accordance with the Undertaking. 43 C. Provide or cause to be provided, in a timely 44 manner, to (i) each NRMSIR or to Che MSRB and (ii) the SID, 45 notice of a failure by the City to provide the annual 920703.2 " 4 � q�-�y� 1 financial information with respect to the City described in 2 the Undertaking. 3 The City agrees that its covenants pursuant to the Rule 4 set forth in this paragraph 27 and in the Undertaking are 5 intended to be for the benefit of the Aolders of the Bonds and 6 shall be enforceable on behalf of such Holders; provided that the 7 right to enforce the provisions of these covenants shall be 8 limited to a right to obtain specific enforcement of the City's 9 obligations under the covenants. 10 The Mayor and Director, Office of Financial Services, 11 or any other officers of the Ci[y authorized to act in their 12 stead (the "Officers"), are hereby authorized and directed to 13 execute on behalf of the City the Undertaking in substantially 14 the form presented to the City Council, subject to such 15 modifications thereof or additions thereto as are (i) consistent 16 with the requirements under the Rule, (ii) required by the 17 Purchaser, and (iii) acceptable to the Officers. 18 28. Resolutions Supplemented. The General Resolution 19 and the resolutions authorizing the issuance of the PFA Notes are 20 hereby supplemented to the extent necessary to give effect to the 21 provisions of paragraph 17 of this resolution. 22 29. Severabilitv. I£ any section, paragraph or 23 provision of this resolution shall be held to be invalid or 24 unenforceable for any reason, the invalidity or unenforceability 25 of such section, paragraph or provision shall not affect any of 26 the remaining provisions of this resolution. 9207D3.2 4 1 ORIGINAL 1 30. Headincrs. Headings in this 2 included for convenience of reference onl 3 hereof, and shall not limit or define the 4 provision hereof. a��--ay� resolution are y and are not a part meaning of any Requested by DeQartment of: Adopted by Council: Date ��� � ���� Adoption Certified by Council Secretary B � � _ � r.,�-�----_ Approved by Mayor: D 'S ��ln �Wt °-�"'— 920703.2 � o � : �ooiL.,� � � ' � �. . -: . • � � •,r - > �!.� �ill�/4� a�-a� of Financial Setvices ��� TOTAL # OF SIGNATURE PAGES DAT6INITIATED h�.,9� GREEN SHEET ASSIGN No 60944 ■ 1� 7 eEVnnmart nx�crae � arrcouKa. _ FOR � GrtYATTORNfl' `/ ❑ GIYCLERR � ❑ FlWKYLLSFRVICESG6L ❑ FWNO4LSERV/ACCi6 � YAVOR(ORw593iANTl� ❑ _1_ (CUP ALL LOCATIONS FOR SIGNATURE) �is resolution accepts the winning proposal and awards the bid for the $4,700,000 G.O. :wer Revenue BorMS Series 1998E. This is a competi6ve borM sale and the award going to the bidder found most advantageos Qwvest cost) to the City. PLANNING COMMISSION CIB COMMITTEE qVIL SERVICE COMMISSION TIATING PROBLEM ISSUE, OPPORNNITV (Who, What, When, Where, Why) � bonds are For the purpose oi financing certam sewer prqects vrithin the City, and will repeitl by sewer revenue5. GES IF APPROVED be available tor sevrer projects. � a^tYU� �a43!IV�Gi� �Q$$?i4Csf ��_,i..,.> � �. r Y `.f, IFAPPROVED �� sewer Pmle�is wifl nW be aradable. AMOUNT OF TRANSACTION S sa�oo.000 Has this parsoM�m ever wwked u'Wer a contrac[ fw Ihis department? YES NO , Has this persoMrm ever been a city employee� YES NO Dces this persoNfirtn possess a sldll not normalty possessetl by any curceM city employee? YES NO Is this persoNfrtn a targetetl vendoR ` YES NO �������� MAR 2 3 1998 R S QSY�J ���itsC CQST/REVENUE 6UDGETED (CIRCLE ONE) ACTNITY NUMBER YES NO (IXPWN) d��--ay3 1 2 publication of notice thereof as a form of private negotiation; and 3 WHEREAS, proposals for the Bonds have been solicit 4 Springsted Incorporated pursuant to an Official Statement ar� 5 Terms of Proposal therein: � 6 NOW, THEREFORE, BE IT RESOLVED by the Council,of the 7 City of Saint Paul, Minnesota, as follows: ,r 8 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 41 42 43 §4 by l. Acceptance of Proposal. The proposal of (the "Purchaser"), to p rchase $4,70�,000 General Obligation Sewer Revenue Bonds, Series 1998E, of the City (the "Bonds", or individually a"BOn '), in accordance with the Terms ot Proposal for the bc�nd sale, at the rates of interest set forth hereinafter, and t�i pay for the Bonds the sum of S , plus interest ac�rued to settlement, is hereby found, determined and declared t�e the most favorable proposal received and is hereby accepted, d the Bonds are hereby awarded to the Purchaser. The Dir ctor, Office of Financial Services, or his designee, is irected to retain the deposit of the Purchaser and to forthwi return to the others making proposals their good faith checks or drafts. 2. Title• Ori inal I sue/Date• Denominations• Maturities. The Bonds shall be ti ed "General Obligation Sewer Revenue Bonds, Series 1998E", sha be dated April 1, 1998, as the date of original issue and s 11 be issued forthwith on or after such date as fully regist ed bonds. The Bonds shall be numbered from R-1 upward. Glo a1 Certificates shall each be in the denomination of the entir principal amount maturing on a single date, or, if a portio of said principal amount is prepaid, said principal amo nt less the prepayment. Replacement Bonds, if issued as provid d in_paragraph 6, shall be in the denomination of $5,000 ea h or in any integral multiple thereof of a single maturity. T e Bonds shall mature on December 1 in the years and amounts follows: Year 1999 2000 2001 2002 2003 20 2 5 006 2007 2008 Amount $155,000 160,000 165,000 175,000 180,000 190,000 195,000 205,000 215,000 220,000 Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Amount $230,000 240,000 250,000 265,000 275,000 290,000 300,000 315,000 330,000 345,000 z 4 o{k�-�y3 9 10 11 12 3. Purpose. The Bonds shall provide funds construction of various improvements to the City's w storm water systems (the "Improvements"). The Bonds to aid in financing a sewage disposal system or part pursuant to Minnesota Statutes, Section 115.46. The the Bonds shall be deposited and used as provided iyf 17, and any excess moneys shall be devoted to any �it permitted by law. The total cost of the Improvement shall include all costs enumerated in Minnesota tat t the ater and issued /proceeds of paragraph her purpose s, which utes, Section 475.65, is estimated to be at least equal to t e amount of the Bonds. Work on the Improvements shall proce� with due diligence to completion. 13 4. Interest. The Bonds shall ear interest payable 14 semiannually on June 1 and December 1 of ach year (each, an 15 "Interest Payment Date"), commencing Dec mber 1, 1998, calculated 16 on the basis of a 360-day year of twelv 30-day months, at the 17 respective rates per annum set forth o posite the maturity years 18 as follows: 19 Maturity Year Interest Rate Ma Year Interest Rate 20 21 22 23 24 25 26 27 28 29 30 3 ]. 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 °s 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 a 5. Descri�tion of the Global Certiticates and Global Book-Entry System. pon their original issuance the Bonds will be issued in the fo m of a single Global Certificate for each maturity, deposite with the Depository by the Purchaser and immobilized as pr vided in paragraph 6. No beneficial owners of interests in the Bonds will receive certificates representing their respectiv interests in the Bonds except as provided in paragraph 6, xcept as so provided, during the term of the Bonds, benefi ial ownership (and subsequent transfers of beneficial o ership) of interests in the Global Certificates will be ref ected by book entries made on the reaords of the Depository and its Participants and other banks, brokers, and dealers p rticipating in the National System. The Depository's book ent ies of beneficial ownership interests are authorized to be in i crements of $5,000 of principal of the Bonds, but not smalle increments, despite the larger authorized denominations of t Global Certificates. Payment of principal of, premium, if any, and interest on the Global Certificates will be made to the Bo Registrar as paying agent, and in turn by the Bond Registrar F.'7 qg-a� 3 qualified to act as such, as provided in clause (ii) of this subparagraph, or (iv) To those persons to whom transfer is re in written transfer instructions in the event that� 5 (a) the Depository shall resign or discontinue 6 its services for the Bonds and the City is�unable to 7 locate a substitute depository within tw�o (2l months 8 following the resignation or determin� on of non- 9 eligibility, or 10 (b) upon a determination by t�Yie City in its sole 11 discretion that (1) the continuati�on of the book-entry 12 system described herein, which precludes the issuance 13 of certificates (other than Glo�ial Certificates) to any 14 Holder other than the Deposit {-}� (or its nominee), 15 might adversely affect the i erest of the beneficial 16 owners of the Bonds, or (2) that it is in the best 17 interest of the beneficial owners of the Bonds that 18 they be able to obtain ce tificated bonds, 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 in either of whic its determination (the "Replacement the registration, be conducted as p In the event be authorized by this presentation of Global to the substitute or successor depository purposes and functi999 Representations sh�']. depository unless/th depository so ag,ree, 7. h events t e City shall notify Holders of and of t e availability of certificates Bonds") to Holders requesting the same and transf r and exchange of such Bonds wi11 rovid in paragraphs 9B and 12 hereof. of a succession of the Depository as may �a agraph, the Bond Registrar upon �ertificates shall register their transfer ccessor depository, and the substiCute or �all be treated as the Depository for all s under this resolution. The Letter of not apply to a substitute or successor City and the substitute or successor and a similar agreement may be entered into. (a) O'onal Redem t'on: Due Date. All Bonds maturing after Dece er 1, 2006, shall be subject to redemption and prepaymen at the option of the City on such date and on any day thereaft r at a price of par plus accrued interest. Redemption may be 'n whole or in part of the Bonds subject to prepayment. If re mption is in part, those Bonds remaining unpaid may be prep d in such order of maturity and in such amount per maturity as t e City shall determine; and if only part of the Bonds having a c mmon maturity date are called for prepayment, the Global C tificates may be prepaid in $5,000 increments of principal d, if applicable, the specific Replacement Bonds to be prepaid hall be chosen by lot by the Bond Registrar. Bonds or portions 920703.2 7 ay 3 1 thereof called for redemption shall be due and payable on 2 redemption date, and interest thereon shall cease to accr 3 and after the redemption date. � from 4 (b) Notation on Global Certificate. Upon a redue�ion in 5 the aggregate principal amount of a Global Certifica�, the 6 Holder may make a notation of such redemption on the panel 7 provided on the Global Certificate stating the amownt so 8 redeemed, or may return the Global Certificate tor�he Bond 9 Registrar in exchange for a new Global Certificat�e authenticated 1� by the Bond Registrar, in proper principal amou`t. Such 11 notation, if made by the Holder, shall be fo�eference only, and 12 may not be relied upon by any other person as being in any way 13 determinative of the principal amount of su Global Certificate 14 outstanding, unless the Bond Registrar has signed the appropriate 15 column of the panel. 16 (c) Selection of Re lacement Bond . To effect a partial 17 redemption of Replacement Bonds having a common maturity date, 18 the Bond Registrar prior to giving no ice of redemption shall 19 assign to each Replacement Bond hav' g a common maturity date a 20 distinctive number for each $5,000 f the principal amount of 21 such Replacement Bond. The Bond gistrar shall then select by 22 lot, using such method of select' n as it shall deem proper in 23 its discretion, from the number so assigned to such Replacement 24 Bonds, as many numbers as, at ,000 for each number, shall equal 25 the principal amount of such eplacement Bonds to be redeemed. 26 The Replacement Bonds to be edeemed shall be the Replacement 27 Bonds to which were assigne numbers so selected; provided, 28 however, that only so much of the principal amount of each such 29 Replacement Bond of a den ination of more than $5,000 shall be 30 redeemed as shall equal ,000 for each number assigned to it and 31 so selected. 32 33 34 35 36 37 38 39 4D §1 42 43 44 45 (d) Partial Redefn tion of Re lacement Bonds. If a Replacement Bond is be redeemed only in part, it shall be surrendered to the B nd Registrar (with, if the City or Bond Registrar so requir s, a written instrument of transfer in form satisfactory to t 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 1if necessary) and the Bond Registrar shall authenticate and deliver to the Holder of such Replacement Bo d, without service charge, a new Replacement Bond or Bonds of t e same series having the same stated maturity and interest rat and of any authorized denomination or denominatio , as requested by such Holder, in aggregate principal ount equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered. 46 (e� Reauest for Redem�tion. The Bond Registrar shall ca11 47 Bonds f redemption and payment as herein provided upon receipt 48 by the ond Registrar at least forty-five (45) days prior to the 920703. 3 ag-�y3 1 2 3 4 5 6 7 8 9 10 ii 12 13 14 15 16 17 (ii) The redemption price; 18 (iii) If less than all outs��anding Bonds are to be 19 redeemed, the identification (a�d, in the case of partial 20 redemption, the respective pr cipal amounts? of the Bonds � 21 to be redeemed; f� 22 (iv) That on the redemption date, the redemption price 23 wi11 become due and payab� upon each such Bond, and that 24 interest thereon shall�ase to accrue from and after said 25 date; and 26 (v) The plac�here such Bonds 2'7 for payment of the edemption price 28 office of the Bonc} Registrar). 29 30 31 32 33 34 35 redemption date of a request of the City, in written form Bond Registrar is other than a City officer. Such request specify the principal amount o£ Bonds to be called for red and the redemption date. (f) Notice. Mailed notice of redemption shall be gi the paying agent (if other than a City officer3 and to eac affected Holder. If and when the City shall call any of� if the shall to 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 gonds at the office of the Bond Registrar. Notice of redemptionfshall be given by first class mail, postage prepaid, maile�`not less than thirty (30) days prior to the redemption date, t�d`each Holder of Bonds to be redeemed, at the address appearing in the Bond Register. All notices of redemption shall sta�e: (g) Notice Company or its n Bonds. If there Depository or it efforts to deliv business day ne�c all other Holcl�r (i) The redemption date; are to be surrendered (which shall be the o IA'�e osito . Notices to The Depository Trust i ee shall contain the CUSIP numbers of the ,re any Holders of the Bonds other than the nominee, the Bond Registrar shall use its best any such notice to the Depository on the preceding the date of mailing of such notice to 36 37 in Saint 38 and trans 39 Registra 40 Registr r 41 City a d 42 herew'th. 43 City or a 44 reg'strar 9 703.2 8 Sond Reaistrar. First Trust National Association, P 1, Minnesota, is appointed to act as bond registrar er agent with respect to the Bonds (the "Bond "), and shall do so unless and until a successor Bond is duly appointed, all pursuant to any contract the Bond Registrar shall execute which is consistent A successor Bond Registrar shall be an officer of the bank or trust company eligible for designation as bond pursuant to Minnesota Statutes, Chapter 475, and may be 0 a �r- a.�� 1 appointed pursuant to any contract the City and such successor 2 Bond Registrar shall execute which is consistent herewith. The 3 Bond Registrar shall also serve as paying agent unless and unti 4 a successor paying agent is duly appointed. Principal and 5 interest on the Bonds shall be paid to the Holders (or record,,r� 6 holders) of the Bonds in the manner set forth in the forms�f 7 Bond and paragraph 14 of this resolution. g 9. Forms of Bond. The Bonds shall be in th�form of 9 Global Certificates unless and until Replacement Bonds/are made 10 available as provided in paragraph 6. Each form of nd may 11 contain such additional or different terms and prov'sions as to 12 the form of payment, record date, notices and oth matters as 13 are consistent with the Letter of Representation and approved by 14 the City Attorney. 15 A. Global Certificates. The G 16 together with the Certificate of Registrat 17 Partial Payments, the form of Assignment 18 information thereon, shall be in substan i 19 and may be typewritten rather than pri ed o}�al Certificates, 6 n, the Register of d the registration lly the following form �os.z 10 �IS-��t 3 1 2 3 4 5 6 7 8 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 4� 41 42 43 44 45 46 47 48 49 Registrar has signed the appropriate column of the panel. Interest on this Bond will be paid on each Interest Payme Date in same-day.funds by 2:30 p.m., Eastern time, to the per on in whose name this Bond is registered (the "Holder" or "B dholder") on the registration books of the Issuer maintained by he Bond Registrar and at the address appearing thereon at th close of business on the fifteenth day of the calendar mont preceding such Interest Payment Date (the "Regular Record D e"). Interest payments shall be received by the Holder no late than 2:30 p.m., Eastern time; and principal and premium paymen shall be received by the Holder no later than 2:30 p.m , Eastern time, if the Bond is surrendered for payment enough i advance to permit payment to be made by such time. Any inte st not so timely paid shall cease ta be payable to the person w is the Holder hereof as of the Regular Record Date, and shall e payable to the person who is the Holder hereof at the close o business on a date (the "Special Record Date") fixed by the B d Registrar whenever money becomes available for payment of the efaulted 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 Stat of America. Date of Pavment Not u iness Da . If the date for payment of the principal of, premium, if any, or interest on this Bond shall be a Saturday, S nday, legal holiday or a day on which banking institutions in t City of New York, New York, or the city where the principal ffice of the Bond Registrar is located are authorized by law o executive order to close, then the date for such payment shall e the next succeeding day which is not a Saturday, Sunday, leg holiday or a day on which such banking institutions are aut orized to close, and payment on such date shall have the same force and effect as if made on the nominal date of payment. Rede t�ion. All Bonds of this issue (the "Bonds") maturing after ecember 1, 2006, are subject to redemption and prepayment at e option of the Issuer on such date and on any day thereafte ati a price of par plus accrued interest. Redemption m y be in whole or in part of the Bonds subject to prepayment. If redemption is in part, those Bonds remaining unpaid may e prepaid in such order of maturity and in such amount pe maturity as the City shall determine; and if only part of the B nds having a common maturity date are called for prepaym nt, this Bond may be prepaid in $5,��0 increments of princi al. Bonds or portions thereof called for redemption shall be du and payable on the redemption date, and interest thereon shal cease to accrue from and after the redemption date. Notice of R�demption. Mailed notice of redemption 1 be given to the paying agent (if other than a City officer) to each affected Holder of the Bonds_ In the event any of 920703.2 E�% �r-a.�� 1 the Bonds are called for redemption, written notice thereof wi 2 be given by first class mail mailed not less than thirty (30) 3 days prior to the redemption date to each Holder of Bonds to 4 redeemed. In connection with any such notice, the "CUSIP" 5 numbers assigned to the Bonds shall be used. 6 7 8 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 41 42 43 44 45 46 47 48 49 Redemotion. L3pon a partial redemption of this Bond w'ich results in the stated amount hereof being reduced, the Hold may in its discretion make a notation on the panel provided rein of such redemption, stating the amount so redeemed. Suc notation, if made by the Holder, shall be for reference only and may not be relied upon by any other person as being in a way determinative of the principal amount of the Bond outstand' g, unless the Bond Registrar has signed the appropriate column of the panel. Otherwise, the Holder may surrender this �nd to the Bond Registrar (with, if the Issuer or Bond R istrar so requires, a written instrument of transfer in form atisfactory to the Issuer and Bond Registrar duly executed by t Holder thereof or his, her or its attorney duly authorized ' writing) and the Issuer shall execute (if necessary) and th Bond Registrar sha11 authenticate and deliver to the Ho der of such Bond, without service charge, a new Bond of th same series having the same stated maturity and interest ra and of the authorized denomination in aggregate prin ipal amount equal to and in exchange for the unredeemed p rtion of the principal of the Bond so surrendered. Issuance• Pu o: General Oblicration. This Bond is one of an issue in the t tal principal amount of $4,700,000, all of like date of origina issue and tenor, except as to number, maturity, interest rat , denomination, and redemption privilege, which Bond has been ' sued pursuant to and in full conformity with the Constituti and laws of the State of Minnesota, including particul rly Minnesota Statutes, Chapter 475 and Sections 116.19 a d 115.46, and the Charter of the Issuer, and pursuant to a r olution adopted by the City Council of the Issuer on Apri 1, 1998 (the "Resolution"), for the purpose of providing mon to finance the acquisition, construction and repair of va ious improvements to the City's wastewater and storm water syste s. This Bond is payable out of the General Obligation Bond Debt Service Account of the Sewer Service Enterpris Fund of the City, to which account have been pledged gross r enues of the City's sewer system. This Bond has been issued o aid in financing a sewage disposal system or part there f pursuant to Minnesota Statutes, Section 115.46. This Bond constitutes a general obligation of the Issuer, and to pro ide moneys for the prompt and full payment of its principal, p mium, if any, and interest when the same become due, the fu11 ith and credit and taxing powers of the Issuer have been and are hereby irrevocably pledged. 920703.2 �-3 K� 6 7 8 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 41 42 43 44 45 46 47 48 Denominations: Exchancte; Resolution. The Bonds aofe issuable originally only as Global Certificates in the denomination of the entire principal amount of the issue maturir on a single date, or, if a portion of said principal i prepaid, said principal amount less the prepayment. Global Ce ificates are not exchangeable for fully registered bonds of s aller denominations except to evidence a partial prepaym t or in exchange for Replacement Bonds if then available. Replacement Bonds, if made available as provided below, are 'ssuable solely as fully registered bonds in the denominations f$5,000 and integral multiples thereof of a single maturi and are exchangeable for fu11y registered Bonds of o er authorized denominations in equal aggregate principal mounts at the principal office of the Bond Registrar, b only in the manner and subject to the limitations provided ' the Resolution. Reference is hereby made to the Resolut' n for a description of the rights and duties of the Bond Regi rar. Copies of the Resolution are on file in the princip 1 office of the Bond Registrar. Replacement Bonds. the Issuer in the event that: (a) the Depository services for the Bonds, locate a substitute dep following the resigna o eligibility, or (b) upon a discretion that system described issuance of cer� any Holder o adversely af the Bonds, o beneficial� certificat d �t (2) Bonds may be issued by a11 resign or discontinue its nd only if the Issuer is unable to sitory within two (2) months n or determination of non- d�termination by the Issuer in its sole �} the continuation of the book-entry in the Resolution, which precludes the ficates (other than Global Certificates) to than the Depository (or its nominee), might the interest of the beneficial owners of that it is in the best interest of the of the Bonds that they be able to obtain bonds. Tr s er. This Bond sha11 be registered in the name of the payee o the books of the Issuer by presenting this Bond for registrati to the Bond Registrax, who will endorse his, her or its name d note the date of registration opposite the name of the paye in the certificate of registration attached hereto. Thereaf r this Bond may be transferred by delivery with an assign nt duly executed by the Holder or his, her or its legal repres ntatives, and the Issuer and Bond Registrar may treat the Holde as the person exclusively entitled to exercise all the rig s and powers of an owner until this Bond is presented with suc assignment for registration of transfer, accompanied by as urance of the nature provided by law that the assignment is g nuine and effective, and until such transfer is registered on '703 . 2 14 �I�-ay said books and noted hereon by the Bond Registrar, all subje t to the terms and conditions provided in the Resolution and to reasonable regulations of the Issuer contained in any agr ement with, or notice to, the Bond Registrar. Transfer of this Bond may, at the direction and expense o£ the Issuer, be su ect to certain other restrictions if required to qualify thi Bond as being "in registered form" within the meaning of Sec ion 149(a) of the federal Internal Revenue Code of 1986, as a�ended. 9 Fees u�on Transfer or Loss. The Bond F�egistrar may 10 require payment of a sum sufficient to cover a tax or other 11 governmental charge payable in connection wit the transfer or 12 exchange of this Bond and any legal or unusu costs regarding 13 transfers and lost Bonds. 14 Treatment of Registered Owner. The Issuer and Bond 15 Registrar may treat the person in whose ame this Bond is 16 registered as the owner hereof for the purpose of receiving 17 payment as herein provided (except as otherwise provided with 18 respect to the Record Date) and for 11 other purposes, whether 19 or not this Bond shall be overdue, nd neither the Issuer nor the 20 Bond Registrar shall be affected notice to the contrary. 21 Authentication. This 22 obligatory for any purpose o� 23 the Certificate of Authentica i 24 by the Bond Registrar. 25 Not Oualltie� 26 not been designated by 27 obligations" for purpo, 28 Internal Revenue Code � 29 qualify for such desic� ond shall not be valid or become entitled to any security unless hereon shall have been executed The Bonds have � Issuer as "qualified tax-exempt of Section 265(b)(3) of the federal 1986, as amended. The Bonds do not ion. 15 q �'� � ON REVERSE OF BOND 2 Date of Pavment Not Business Dav. If the date fo 3 payment of the principal of, premium, if any, or interest n this 4 Bond shall be a Saturday, Sunday, legal holiday or a day on which 5 banking institutions in the City of New York, New York,- or the 6 city where the principal office of the Bond Registrar s located 7 are authorized by law or executive order to close, t en the date 8 for such payment shall be the next succeeding day ich is not a 9 Saturday, Sunday, legal holiday or a day on which such banking 10 institutions are authorized to close, and payme on such date 11 shall have the same force and effect as if mad on the nominal 12 date of payment. 13 RedemDtion. All Bonds of this i ue (the "Bonds") 14 maturing after December 1, 2006, are subj ct to redemption and 15 prepayment at the option of the Issuer o such date and on any 16 day thereafter at a price of par plus crued interest. 17 Redemption may be in whole or in part of the Bonds subject to 18 prepayment. If redemption is in par , those Bonds remaining 19 unpaid may be prepaid in such order of maturity and in such 20 amount per maturity as the City s 11 determine; and if only part 21 of the Bonds having a common mat ity date are called for 22 prepayment, the specific Bonds o be grepaid sha11 be chosen by 23 lot by the Bond Registrar. Bo ds or portions thereof called for 24 redemption shall be due and p yable on the redemption date, and 25 interest thereon shall ceas to accrue from and after the 26 redemption date. 27 28 29 30 31 32 33 34 shall be given to the and to each affected the Bonds are called be given by first c a days prior to the ed redeemed. In co ect tion. Mailed notice of redemption ying agent (if other than a City officer) der of the Bonds. In the event any of redemption, written notice thereof will mail mailed not less than thirty (30) tion date to each Holder of Bonds to be with any such notice, the "CUSIP" Bonds shall be used. 35 36 37 38 39 40 41 42 43 44 45 46 47 or numbers assiane to the Sel ction of Bonds for Redem tion. To effect a partial redemption o Bonds having a common maturity date, the Bond Registrar s all assign to each Bond having a common maturity date a distinct've number for each $5,000 of the principal amount of such Bon . The Bond Registrar shall then selecC by lot, using such me od of selection as it shall deem proper in its discre on, from the numbers assigned to the Bonds, as many numbe as, at $5,000 for each number, shall equal the principal amou of such Bonds to be redeemed. The Bonds to be redeemed sha be the Bonds to which were assigned numbers so selected; pr vided, however, that only so much of the principal amount of s ch Bond of a denomination of more than $5,000 shall be redeemed s shall equal $5,000 for each number assigned to it and so 920703.2 � q�-a��� 1 2 3 4 5 6 7 8 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 41 42 43 44 45 46 47 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 i writing) and the Issuer shall execute (if necessary) and the on Registrar shall authenticate and deliver to the Holder of s ch Bond, without service charge, a new Bond or Bonds of the me series having the same stated maturity and interest rate and of any auChorized denomination or denominations, as reque ed by such Holder, in aggregate principal amount equal to a d in exchange for the unredeemed portion of the principa of the Bond so surrendered. Issuance• Pu ose• General Obli ation This Bond is one of an issue in the total principal amount f$4,700,000, all of like date of original issue and tenor, ex pt as to number, maturity, interest rate, denomination, and edemption privilege, which Bond has been issued pursuant to an in full conformity with the Constitution and laws of the St e of Minnesota, including particularly Minnesota Statut s, Chapter 475 and Sections 116.19 and 115.46, and the C rter of the Issuer, and pursuant Co a resolution adopted by e City Council of the Issuer on April 1, 1998 (the "Resol tion"), for the purpose of providing money to finance the ac isition, construction and repair of various improvements t the City's wastewater and storm water systems. This Bond is pa able out the General Obligation Bond Debt Service Account of e Sewer Service Enterprise Fund of the City, to which account h e been pledged gross revenues of the City's sewer system. T is Bond has been issued to aid in financing a sewage dispos system or part thereof pursuant to Minnesota Statutes, Sect'on 115.46. This Bond constitutes a general obligation of t e Issuer, and to provide moneys for the prompt and full payme of its principal, premium, if any, and interest when the sa e become due, the full faith and credit and taxing powers of th Issuer have been and are hereby irrevocably pledged. issuable s $5,000 and are exchan pri and the�hts Reso tion Req�strar. 920703.2 Denom'natio s• Exchan e• Resolution. The Bonds are olel as fully registered bonds in the denominations of i egral multiples thereof of a single maturity and g ble for fully registered Bonds of other authorized s in equal aggregate principal amounts at the office of the Bond Registrar, but only in the manner t to the limitations provided in the Resolution. is hereby made to the Resolution for a description of and duties of the Bond Registrar. Copies of the are on file in the principal office of the Bond 27 q�-�.y� 4 5 6 10 11 12 13 14 Transfer. This Bond is transferable by the Holder in person or by his, her or its attorney duly authorized in writing at the principal office of the Bond Registrar upon presentation and surrender hereof to the Bond Registrar, all subject to the terms and conditions provided in the Resolution and to reasona`�le regulations of the Issuer contained in any agreement with, o notice to, the Sond Registrar. Thereupon the Issuer shall execute and the Bond Registrar sha11 authenticate and del' er, in exchange for this Bond, one or more new fully registered�Bonds in the name of the transferee (but not registered in blanlv` to "bearer" or similar designation), of an authorized de omination or denominations, in aggregate principal amount equa to the principal amount of this Bond, of the same maturity and bearing interest at the same rate. 15 Fees u�on Transfer or Loss. The Bon Registrar may 16 require payment of a sum sufficient to cover y tax or other 17 governmental charge payable in connection wi the transfer or 18 exchange of this Bond and any legal or unus al costs regarding 19 transfers and lost Bonds. 20 21 22 23 24 25 26 27 Registrar may treat the person in registered as the owner hereof for payment as herein provided {except reverse side hereof with respect t other purposes, whether or not th' neither the Issuer nor the Bond� notice to the contrary. ner � The Issuer and Bond os� name this Bond is � purpose of receiving otherwise provided on the the Record Date) and for all Bond shall be overdue, and strar shall be affected by 28 Authentication. T s Bond shall not be valid or become 29 obligatory for any purpose r be entitled to any security unless 30 the Certificate o£ Authent'cation hereon shall have been executed 31 by the Bond Registrar. 32 Not ua ifie Tax- x m t O li ations. The Bonds have 33 not been designated b the Issuer as qualified tax-exempt 34 obligations" for pur oses of Section 265(b)(3) of the federal 35 Internal Revenue Co e of 1986, as amended. The Bonds do not 36 qualify for such signation. m qY-a�� fiXHIBITS Exhibit A - Proposals 920703.2 Councii Fiie # 1 b ay3 A ����.e 1 i y � (�� ' � � � l�\ � ` � 5y � C>reenSheet# `�'���`"1 O��VilV�� RESOLUTION� � �,����j1,`�,w, ts, a-�,a-� n �, , ClTY OF SAINT PAUL, MlNNESOI'A /� Prese�ted By Referred To Committee: Date 1 ACCEPTING PROPOSAI, ON SALE OF 2 $4,700,000 GENERAL OBLIGATION SEWER REVENUE 3 BONDS, SERIES 1998E, AND 4 PROVIDING FOR THEIR ISSUANCE 5 WHEREAS, the Director, Office of Financial Services, 6 has presented proposals received for the sale of $4,700,000 7 General Obligation Sewer Revenue Bonds, Series 1998E (the 8 "Bonds"l, of the City of Saint Paul, Minnesota (the "City"); and 9 WHEREAS, the proposals set forth on Exhibit A attached 10 hereto were received pursuant to the Terms of Proposal at the 11 offices of Springsted Incorporated at 10:30 A.M., Central Time, 12 this same day; and 13 WHEREAS, the Director, Office of Financial Services, 14 has advised this Council that the proposal of 15 U S ��.v�� r �r�c. was found to be the most 16 advantageous a d has recommended that said proposal be accepted; 17 and 18 WHEREAS, the proceeds of the Boncts will finance various 19 improvements to the City's wastewater and storm water systems 20 (the "Improvements"}, for which the City is proceeding pursuant 21 to its Charter and Minnesota Statutes, Chapter 475 and Sections 22 116.19 and 115.46, with any excess to be used for any other 23 purpose permitted by law; and 9207�3.2 °� g'a.`� 3 5 6 7 8 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 WHEREAS, the Bonds will provide money part of the costs of the abatement of combined of making improvements to any utility required abatement; and to pay a11 or sewer overflow and to effect the WFIEREAS� the City has heretofore issued registered obligations in certificated form, and incurs substantial costs associated with their printing and issuance, and substantial continuing transaction costs relating to their payment, transfer and exchange; and WHEREAS, the City has determined that significant savings in transaction costs will result from issuing bonds in "global book-entry form", by which bonds are issued in certificated form in large denominations, registered on the books of the City in the name of a depository or its nominee, and held in safekeeping and immobilized by such depository, and such depository as part of the computerized national securities clearance ancl settlement system (the "National System") registers transfers of ownership interests in the bonds by making computerized book entries on its own books and distributes payments on the bonds to its Participants shown on its books as the ownere of such interests; and such Participants and other banks, brokers and dealers participating in the National System will do likewise (not as agents of the City) if not the beneficial owners of the bonds; and 25 WHEREAS, "Participants" means those financial insti- 26 tutions for whom the Depository effects book-entry transfers and 27 pledges of securities deposited and immobilized with the 28 Depository; and 29 WHEREAS, The Depository Trust Company, a limited 30 purpose trust company organi2ed under the laws of the State of 31 New York, or any of its successors or successors to its functions 32 hereunder (the "Depository"), will act as such depository with 33 respect to Che Bonds except as set forth below, and the City has 34 heretofore delivered a letter of representations tthe "Letter of 35 Representations"} setting forth various matters relating to the 36 Depository and its role with respect to the Bonds; and 37 38 39 40 41 42 43 44 WHEREAS, the City will deliver the Bonds in the form of one certificate per maturity, each representing the entire principal amount of the Bonds due on a particular maturity (each a"Global Certificate"), which single certificate per maturity may be transferred on the City's bond register as required by the Uniform Commercial Code, but not exchanged smaller denominations unless the City determines to issue Replacement Bonds as grovided below; and date for �5 WHEREAS, the City will be able to replace the 26 Depository or under certain circumstances to abandon the "global 92�7a3.2 2 qg--a4 3 1 book-entry form" by permittiag the Global Certificates to be 2 exchanged for smaller denominations typical of ordinary bonds 3 registered on the City's bond register; and "Replacement Bonds" 4 means the certificates representing the Bonds so authenticatecl 5 and delivered by the Bond Registrar pursuant to paragraphs 6 and 6 12 hereof; and 7 WHEREAS, "Holder" as used herein means the person in 8 whose name a Bond is registered on the registration books of the 9 City maintained by the registrar appointed as provided in lo paragraph S(the "Bond Registrar"); and 11 WHEREAS, gross revenues (the "Revenues" as defined in 12 the City's Resolution No. 88-835, adopted May 24, 1988, being 13 referred to herein as the "General Resolution") of the City's 14 storm and sanitary sewer systems, including all piping, pumps, 15 valves, maintenance equipment and buildings, improvements and 16 real and personal property used in connection therewith, and al1 17 funds, accounts, contract rights, permits, authorization, 18 approach and intangibles related thereto (the "Sewer System"), 19 have been pledged to the payment of the City's Sewer Revenue 20 Bonds, Series 1988A, and Sewer Revenue Refunding Bonds, Series 21 1993 (the "Revenue Bonds"), and under the General Resolution the 22 pledge of Revenues to the payment of the Bonds is required to be 23 junior and subordinated to the pledge to the Revenue Bonds; and 24 WIiEREAS, the City has heretofore issued to the PFA its 25 General Obligation Sewer Revenue Note of 1993 (the "1993 Note"), 26 General Obligation Sewer Revenue Note of 1994 (the "1994 Note"), 27 General Obligation Sewer Revenue Note of 1995 (the "1995 Note"), 28 General Obligation Sewer Revenue Note of 1996 (the "1996 Note"), 29 and General Obligation Sewer Revenue Note of 1997 (the "1997 30 Note") and under the resolutions authorizing the issuance of the 31 1993 Note, 1994 Note, 1995 Note, 1996 Note and 1997 Note the 32 pledge of Revenues to the payment of the Bonds may be on a parity 33 of lien with the pledge to the 1993 Note, 1994 Note, 1995 I3ote, 34 1996 Note and 1997 Note; and 35 WHEREAS, the 1993 Note, 1994 Note, 1995 Note, 1996 Note 36 and 1997 Note are collectively referred to herein as the "PFA 37 Notes"; and 38 WHEREAS, Rule 15c2-12 of the Securities and Exchange 39 Commission prohibits "participating underwriters" from purchasing 40 or selling the Bonds unless the City undertakes to provide 41 certain continuing disclosure with respect to the Bonds; and 42 WHEREAS, pursuant to Minnesota Statutes, Section 43 475.60, Subdivision 2(9), public sale requirements do not apply 44 to the Bonds if the City retains an independent financial advisor 45 and determines to sell the Bonds by private negotiation, and the 46 City has instead authorized a competitive sale without 92D703.2 3 �g a�-t3 publication of notice thereof as a form of private negotiation; and 3 WHEREAS, proposals for 4 Springsted Incorporated pursuant 5 Terms of Proposal therein: 6 7 8 9 10 11 12 13 14 15 16 17 1. 8 19 ao 21 22 23 24 25 26 27 28 29 30 31 32 33 � 35 36 37 38 39 40 41 42 43 the Bonds have been solicited by to an Official Statement and NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Saint Paul, Minnesota, as follows: 1. Acceptance of Proposal. The proposal of U.S. Bancorp., Inc. (the "Purchaser"), to purchase $4,700,000 General Obligation Sewer Revenue Bonds, Series 1998E, of the City (the "Bonds", or individually a"Sond"}, in accordance with the Terms of Proposal for the bond sale, at the rates of interest set forth hereinafter, and to pay for the Bonds the sum of $4,639,910.40, plus interest accrued to settlement, is hereby found, 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: Oricrinal Tssue Date: Denominations: Maturities. The Boncls shall be titled "General Obligation Sewer Revenue Bonds, Series 1998E", shall be dated April 1, 1998, 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. G1oba1 Certificates sha11 each be in the denomination of the entire principal amount maturing on a single date, or, if a portion of said principal amount is prepaid, said principal amount less the prepaymenC. Replacement Bonds, if issued as provided in paragraph 6, shall be in the denomination of $5,000 each or in any integral multiple thereof of a single maturity. The Sonds shall mature on December 1 in the years and amounts as follows: Y ar 1999 20�0 2001 2002 2003 2004 2�05 2006 Amount Year Amount 920703.2 $155,000 16a,��0 165,000 175,000 180,000 190,000 195,000 205,000 2007 2��8 2009 2010 2011 2012 2a13 2018 0 $ 215,000 220,OQ0 230,000 240,000 250,000 265,000 275,OOQ 1,580,000 �U r �� / 4 5 6 7 8 1D 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 ;s 3. Purpose. The Bonds shall provide funds for the construction of various improvements to the City's wastewater and storm water systems (the "Improvements"?. The Bonds are issued to aid in financing a sewage disposal system or part thereof pursuant to Minnesota Statutes, Section 115.46. The proceeds of the Bonds shall be deposited and used as provided in paragraph 17, and any excess moneys shall be clevoted to any other purpose permitted by law. The total cost of the Improvements, which shaI1 include a11 costs enumerated in Minnesota Statutas, Section a75.65, is estimated to be at least equal to the amount of the Bonds. Work on the Improvements shall proceed with due diligence to completion. 4. Interest. The Bonds shall bear interest payable semiannually on June 1 and December 1 of each year (each, an °Interest Payment Date"), commencing December 1, 1998, calculated on the basis of a 3&0-day year of twelve 3Q-day months, at the respective rates per annum set forth opposite the maturity years as follows: Maturity Year Interest Rate Maturity Year Interest Rate 1999 2000 2001 2002 2003 2�04 2005 2006 3.70% 3.90 4.10 4.15 4.20 4.3� 4.40 4.45 2Q07 2008 2009 2010 2011 2012 2013 2015 4.50% 4.55 4.65 4.75 4.85 4.95 5.00 5.00 5. Description of the Global Certificates and Global Book-Entry System. Upon their original issuance the Bonds will be issued in the form of a single Global Certificate for each maturit�r, deposited with the Depository by the Purchaser and immobilized as provided in paragraph 6. No beneficial owners of interests in the Bonds wi11 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 participating in the National System. The Depository's book entries of beneficial ownership interests are authorized to be in increments of $5,000 of principal o£ 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 Registrar as paying agent, and in turn by the Bond Registrar 920�03.2 q �-a� 3 1 to the Depository or its nominee as registered owner of the 2 Global Certificates, and the Depository according to the laws and 3 rules governing it wi11 receive and forward payments on behalf of 4 the beneficial owners of the Global Certificates. Payment of principal of, premium, if any, and interest on a Global Certificate may in the City's discretion be made by such other method of transferring funds as may be requested by the Holder of a Global Certificate. 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 � Pursuant to 27 28 29 30 -- - - the request of the Purchaser to the Depository, which raquest is required by the Terms of Proposal, immediately upon the original delivery of the Bonds the Purchaser will deposit the Global Certificates representing all of the Bonds with the Depository. The Global Certificates shall be in typewritten form or otherwise as acceptable to the Depository, shall be registered in the name of the Depository or its nominee and shall be held immobilized from circulation at the offices of the Depository on behalf of the Purchaser and subsequent bondowners. The Depository or its nominee will be the sole holder of record of the Global Certificates and no investor or other party purchasing, selling or otherwise transferring 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, 31 (ii) To any successor of the Depository (or its 32 nominee) or any substitute depository (a '�substitute 33 depository") designated pursuant to clause (iii) of this 34 subparagraph, provided that any successor of the Depository 35 or any substitute degository must be both a"clearing 36 corporation" as defined in the Minnesota Uniform Commercial 37 Code at Minnesota Statutes, Section 336.8-102, and a 38 qualified and registered "clearing agency" as provided in 39 Section 17A of the Securities Exchange Act of 1934, as �0 amended, E1 (iii} To a substitute depository designated by and 2 acceptable to the City upon (a) the determination by the 3 Depository that the Bonds shall no longer be eligible for 4 its depository services or (b) a determination by the City 5 that the Depository is no longer able to carry out its 5 functions, provided that any substitute depository must be 920703.2 � � - �-�.� qualified to act as such, as provided in clause tii? of this subparagraph, or 3 a (iv) To those persons to whom transfer is requested in written transfer instructions in the event that: 5 (a} the Depository shall resign or discontinue 6 its services for the Bonds and the City is unable to 7 locate a substitute depository within two (2) months 8 following the resignation or determination of non- 9 eligibility, or io 11 12 13 14 15 16 17 18 (b1 upon a determination by the City in its sole discretion that (1) the continuation of the book-entry system described herein, which precludes the issuance of certificates (other than Global Certificates) to any Aolder other than the Depository (or its nominee), might adversely affect the interest of the beneficial owners o£ the Bonds, or (2) that it is in the best interest of the beneficial owners of the Bonds that they be ahle to obtain certificated bonds, 19 in either of which events the City shall notify Holders of 20 its determination and of the availability of certificates 21 (the "Replacement Bonds") to Aolders requesting the same and 22 the registration, transfer and exchange of such Bonds will 23 be conducted as provided in paragraphs 9B and 12 hereof. z� 25 26 27 28 29 3Q 31 32 33 34 35 36 37 38 39 40 41 42 43 44 In the event of a succession of the Depository as may be authorized by this paragraph, the Bond Registrar upon presentation of Global Certificates sha11 register their trans�er to the substitute or successor depository, and Che substitute or successor depository shall be treated as the Depository for all purposes and £unctions under this resolution. The Letter of Representations sha11 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. Redemption. (a) Optional Redemption. All Bonds maturing after December 1, 2006, 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 prepaymenC. 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 (treating amounts scheduled for mandatory redemption as maturities); 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 920703.2 �1 K -a-�l 3 1 principal and, if applicable, the specific Replacement Bonds to 2 be prepaid shall be chosen by lot by the Bond Registrar. 3 (b) Scheduled Mandatorv Redemption. Term Bonds 4 the year 2018 are subject to redemption and prepayment 5 December 1 in the years 2014 through 2017, inclusive, 6 of par plus accrued interest, without premium, in the amounts set forth below: Year 9 10 11 12 13 2014 2015 2016 2017 2018 Amount $290,000 300,�00 315,000 330,000 345,000 (Maturity) maturing in on each at a price years and 14 (c) Due Date. Bonds or portions thereof called for 15 redemption shall be due and payable on the redemption date, and 16 interest thereon shall cease to accrue from and after the 17 redemption date. 18 (d} Notation on Global Certificate. Upon a reduction in 19 the aggregate principal amount of a Global Certificate, the 20 Holder may make a notation of such redempCion on the panel 21 provided on the Global Certificate stating the amount so 22 redeemed, or may return the Global Certificate to the Bond 23 Registrar in exchange for a new Global Certificate authenticated 24 by the Bond Registrar, in proper principal amount. Such 25 notation, if made by the Holder, sha11 be for reference on1y, and 26 may not be relied upon by any other person as being in any way 27 determinative of the principal amount of such Global Certificate 28 outstanding, unlesa the Bond Registrar has signed the appropriate 29 column o£ the panel. � 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 (e? Selection of Replacement Bonds. To effect a partial redemption of Replacement Bonds having a common maturity date, the Bond Registrar prior to giving notice of redemption shall assign to each Replacement Bond having a common maturity date a distinctive number for each $5,000 of the principal amount of such Replacement Bond. The Sond Registrar sha11 then select by lot, using such method oP selection as it shall deem proper in its discretion, from the numbers so assigned to such Replacement Bonds, as many numbers as, at $5,000 for each number, shall equal the principal amount of such Replacement Bonds to be redeemed. The Replacement Bonds to be redeemed shall be the Replacement Bonds to which were assigned numbers so selected; provided, however, that only so much of the principal amount of each such Replacement Bond of a denomination of more than $5,000 shall be redeemed as shall equal $5,000 for each numbar assigned to it and so selected. 920703.2 �1�" 1 2 3 4 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 (f) Partial Redemption Qf Re�lacement Bonds. I£ 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 £orm satisfactory to the City and Bond Registrar duly executed by the Holder thereof or his, her or its attorney duly autharized in writing) and the City sha11 execute (if necessary) and the Bond Reqistrar sha11 authenticate and deliver to the Holder of such Replacement Bond, without service charge, a new Replacemen� 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. (g) Request for Redem�tion. The Bond Registrar shall call Bonds for redemption and payment as herein provided upon receipt by the Bond Registrar at least forty-five (45) days prior to the redemption date of a request of the City, in written form if the Bond Registrar is other than a City officer. Such request shall specify the principal amount of Bonds to be called for redemption and the redemption date. {h) Notice. Mailed notice of redemption shall be given 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 of the City of its intention to redeem and pay such Bonds at office of the Bond Registrar. Notice of redemption shall be to name the 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. Al1 notices of redemption shall state: (i) (ii) The redemption date; The redempCion price; 35 (iii) If less than all outstanding Bonds are to be 36 redeemed, the identiPication tand, in the case of partial 37 redemption, the respective principal amounts) of the Bonds 38 to be redeemed; 39 (iv) That on the redemption date, the redemption price 4o will become due and payable upon each such Bond, and that 41 interest thereon shall cease to accrue from and after said 42 date; and 43 (v) The place where such Bonds are to be surrendered 44 for payment of the redemption price (which shall be the 45 office of the Bond Registrar). 920703.2 9 ��-a�� 1 2 3 4 5 6 7 8 9 lo 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 (i) Natice to Depasitorv. Notices to The Depository Trust Company or its nominee shall contain the CUSIP numbers of the Bonds. If there are any Holders of the Bonds other than the Depository or its nominee, the Bond Registrar shall use its best efforts to deliver any such notice to the Depository on the business day next preceding the date of mailing of such notice to all other Holders. 8. Bond ReQistrar. First Trust National Association, in Saint Paul, Minnesota, is appointed to act as bond registrar and transfer agent with respect to the Bonds (the "Bond Registrar"), and shall do so unless and until a successor Bond Registrar is duly appointed, all pursuant to any contract the City and Bond Registrar shall execute which is consistent herewith. A successor Bond Registrar shall be an officer of the City or a bank or trust company eligible for designation as bond registrar pursuant to Minnesota Statutes, Chapter 475, and may be appointed pursuant to any contract the City and such successor Bond Registrar shall execute which is consistent herewith. The Bond Registrar shall also serve as paying agent unless and until a successor paying agent is duly appointed. Principal and interest on the Bonds shall be paid to the Aolders (or record holdersl of the Bonds in the manner set forth in the forms of Bond and paragraph 14 of this resolution. 9. Forms of Bond. The Bonds sha11 be in the form of Global Certificates unless and until Replacement Bonds are made available as provided in paragraph 6. Bach form of bond may contain such additional or different terms and provisions as to the form of payment, record date, notices and other matters as are consistent with the Letter of Representations and approved by the City Attorney. 31 A. Global Certificates. The Global Certi£icates, 32 together with the Certificate of Registration, Che Register of 33 Partial Payments, the form of Assignment and the registration 34 information thereon, shall be in substantially the following form 35 and may be typewritten rather than printed: 42�703.2 10 °l�-a.L1� 1 2 3 4 5 R- UNITED STATES.OF AMERICA STATE OF MINNESOTA RAMSEY COUNTY CITY OF SAINT PAUL b GENERAL OBLIGATION SEWER REVENUE � BOND, SERIES 1998E 8 INTEREST 9 RATE 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 i3 14 5 6 7 8 MATURITY DATE December 1, REGISTERED OWNER: PRINCIPAL AMOUNT: CUSIP 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 or 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 June 1 and December 1 of each year (each, an "Interest Payment Date"), commencing December 1, 1998, 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 ancl premium, 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, or 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 on1y, 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 DATE OF ORIGINAL ISSUE April 1, 1998 920703.2 �-�- `�$��N� 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Registrar has signed the appropriate column of the panel. Interest on this Bond will be paid on each Interest Payment Date in same-day £unds by 2:30 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 Date (the "Regular Record Date"). Interest payments shall be received by the Holder no later than 2:30 p.m., Eastern time; and principal and premium payments shall he received by the Holder no later than 2:30 p.m., Eastern time, if the Bond is surrendered for payment enough in advance to permit payment to be made by such time. Any interest 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 of business on a date (the "Special Record Date") fixed by the Bond Reqistrar 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. 23 Date of Pavment Not Business Dav. If the date for 24 payment of the principal of, premium, if any, or interest on this 25 8ond shall be a Saturday, Sunday, 1ega1 holiday or a day on which 26 banking institutions in the City o£ New York, New York, or the 27 city where the principal office of the Bond Registrar is located 28 are authorized by law or executive order to close, then the date 29 for such payment shall be the next succeeding day which is not a 30 Saturday, Sunday, legal holiday or a day on which such banking 31 institutions aze authorized to close, and payment on such date 32 shall have the same force and effect as if made on the nominal 33 date of payment. 34 Optional Redemotion. All Bonds of this issue ithe 35 "Bonds") maturing after December 1, 2006, are subject to 36 redemption and prepayment at the option of the Issuer on such 37 date and on any day thereafter at a price of par plus accrued 38 interest. Redemption may be in whole or in part of the Bonds 39 subject to prepayment. If redemption is in part, those Bonds 40 remaining unpaid may be prepaid in such order of maturity and in 41 such amount per maturity as the City shall determine (treating 42 amounts scheduled for mandatory redemption as maturities); and if 43 only part of the Bonds having a common maturity date are called 44 for prepayment, this Bond may be prepaid in $5,006 increments of 45 principal. 46 Scheduled Mandatory Redemption. The Bonds maturing in 47 the year 2018 shall be redeemed and prepaid on each December 1 in 48 the years 2014 through 2017, inclusive, at a price of par plus s2o�os.z 12 �'k� 1 accrued interest, without premium, in the years and amounts set 2 forth below: 3 4 5 6 Year 2014 2015 2016 2017 2018 Amount $290,000 300,000 315,000 330,000 345,000 9 Due Date. Bonds or portions 10 re@emption sha11 be due and payable on 11 interest thereon shall cease to accrue 12 redemption date. tMaturity) thereof called for the redemption date, and from and after the 13 Notice of Redemption. Mailed notice of redemption 14 shall be given to the paying agent (if other than a City officer} 15 and to each affected Holder of the Bonds. In the event any of 16 the Bonds are called for redemption, written notice thereof will 17 be given by first class mail mailed not less than thirty (30� 18 days prior to the redemption date to each Iiolder of Bonds to be 19 redeemed. In connection with any such notice, the "CUSIP" 20 numbers assigned to the Bonds shall be used. 21 Re_placement or Notation of Sonds after Partial 22 Redemption. Upon a partial redemption of this Bond which results 23 in the stated amount hereof being reduced, the Holder may in its 24 discretion make a notation on the panel provided herein of such 25 redemption, stating the amount so redeemed. Such notation, if 26 made by the Aolder, sha11 be for reference only, and may not be 27 relied upon by any other person as being in any way determinative 28 of the principal amount of the Bond outstanding, unless the Bond 29 Registrar has signed the appropriate column of the panel. 30 Otherwise, the Holder may surrender this Bond to the Bond 31 Registrar (with, if the Issuer or Sond Registrar so requires, a 32 written instrument of transfer in form satisfactory to the Issuer 33 and Bond Registrar duly executed by the Holder Chereof or his, 34 her or its attorney duly authorized in writing? and the Issuer 35 shall execute (if necessary) and the Bond Registrar shall 36 authenticate and deliver to the Holder of such Bond, without 37 service charge, a new Bond of the same series having the same 38 stated maturity and interest rate and of the authorized 39 denomination in aggregate principal amount equal to and in �0 exchange for the unredeemed portion of the principal of the Bond �l so surrendered. 2 Issuance: Purbose; General Obligation. This Bond is 3 one af an issue in the total principal amount of $4,700,000, all 4 oP like date of original issue and tenor, except as to number, 5 maturity, interest rate, denomination, and redemption privilege, 5 which Bond has been issued pursuant to and in full conformity 9ao7os.z 13 ��-a�� 4 5 6 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 41 42 43 44 45 46 47 48 with the Constitution and laws of the State o£ Minnesota, including particularly Minnesota Statutes, Chapter 475 and Sections 116.19 and 115.46, and the Charter of the Issuer, and pursuant to a resolution adopted by the City Council of the Sssuer on April l, 1998 (the "Resolution"), for the purpose of providing money to finance the acquisition, construction and repair of various improvements to the City's wastewater and sCorm water systems. This Bond is payable out of the General Obligation Bond Debt Service Account of the Sewer Service Enterprise Fund of the City, to which account have been pledged net revenues of the City's sewer system. This Bond has been issued to aid in financing a sewage disposal system or part thereof pursuant to Minnesota Statutes, Section 115.46. 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 £ull faith and credit and taxing powers of the Issuer have been and are hereby irrevocably pledged. Denominations; Exchanqe; 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 issuable 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 Sond 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. Re.placement Sonds. Replacement Bonds may be issued by the Issuer in the event that: (a) the Depository shall resign or discontinue its services for the Sonds, and only if the Issuer is unable to locate a substitute depository within two (2) months following the resignation or determination of non- eligibility, or (b) upon a determination by the Issuer in its sole discretion Chat (1) the continuation of the book-entry system described in the Resolution, which precludes the issuance of certificates (other than Global Certificates) to 920703.2 � � �''a 1 2 3 4 5 6 7 8 9 10 11 iz 13 14 15 16 17 18 19 20 21 22 23 24 25 26 any Holder other than the Depository (or its nominee), might adversely affect the interest of the beneficial owners of the Bonds, or (2) that it is in the best interest of the beneficial owners of the Bonds that they be able to obtain certificated bonds. Transfer. This Bond shall be registered in the name of the payee on the books of the Issuer by presenting this Bond for registration to the Bond Registrar, who will endorse his, her or its name and note the date of registration opposite the name of the payee in the certificate of registration attached hereto. Thereafter this Bond may be transferred by delivery with an assignment duly executed by the Aolder or his, her or its legal representatives, and the Issuer and Bond Registrar may treat the Holder as the person exclusively entitled to exercise all the rights and powers of an owner until this Sond 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 hereon by the Bond Registrar, all subject to the terms and conditions provided in the Resolution and to reasonable regulations of the Issuer contained in any agreement with, or notice to, the Bond Registrar. Transfer of this Bond may, at the direction and expense of the Tssuer, be subject to certain other restrictions if required to qualify this Bond as being "in registered form" within the meaning of Section 149(a) of the federal Internal Revenue Code of 1986, as amended. 27 Fees unon Transfer or Loss. The Bpnd Registrar may 28 require payment of a sum sufficient to cover any tax or other 29 governmental charge payable in connection with the transfer or 30 exchange of this Sond and any legal or unusual costs regarding 31 transfers and lost Bonds. 32 Treatment of Registered Owner. The Issuer and Bond 33 Registrar may treat the person in whose name this Bond is 34 registered as the owner hereof for the purpose of receiving 35 payment as herein provided (except as oCherwise provided with 36 respect to the Record Date) and for all other purposes, whether 37 or not this Sond sha11 be overdue, and neither the Issuer nor the 38 Bond Registrar shall be affected by notice to the contrary. 39 Authentication This Bond shall not be valid or become 40 obligatory for any purpose or be entitled to any security unless 41 the Certificate of Authentication hereon sha11 have been executed 42 by the Bond Registrar. 43 Not Oualified Tax-Exem_pt Obliaations. The Bonds have 44 not been designated by the Issuer as '�qualified tax-exempt 45 obligations" for purposes of Section 265(b)(3) of the federal 46 Internal Revenue Code of 1986, as amended. The Bonds do not 47 qualify for such designation. 920703,2 ].5 °l� -a.� 3 5 6 7 B 9 1Q 11 12 13 1§ 15 16 17 18 19 20 21 22 23 24 IT IS HEREBY CERTIFIED AND RECITED that al1 acts, conditions and things required by the Constitution and laws of the State of Minnesota and the Charter of the Issuer to be done, to happen and to be performed, precedent to and in the issuance of this Bond, have been done, have happened and have been performed, in regular and due form, time and manner as required by law; that the City has covenanted and agreed with the holder of this Bond that it wi11 impose and collect charges £or the service, use and availability of and connection to its municipal sewer system at the times and in amounts necessary to produce gross revenues adequate to pay all principal and interest when due on this Bond; that the City will levy a direct, annual, irrepealable ad valorem tax upon all of the taxable property in the City, without limitation as to rate or amount, for the years and in amounts sufficient to pay the principal of and interest on this Bond as they respectively become due, if the gross revenues from said municipal sewer system and any other revenues irrevocably appropriated to said General Obligation Bond Debt Service Account are insufficient therefor; and that this Bond, together with all other debts of the Issuer outstanding on the date of original issue hereof and on the date of its issuance and delivery to the original purchaser, does not exceed any constitutional or statutory or Charter limitation of indebtedness. 25 IN WITNESS WHEREOF, the City of Saint Paul, Ramsey 26 County, Minnesota, by its City Council has caused this Bond to be 27 executed on its behalf by the photocopied facsimile signature of 2& its Mayor, attested by the photocopied facsimile signature of its 29 Clerk, and countersigned by the photocopied facsimile signature 30 of its Director, Office of Financial Services, the official seal 31 having been omitted as permitted by law. 92D703.2 �-6 �t� -a'�� 1 2 3 4 Date of Registration: Registrable by: 5 BQND REGISTRAR'S 6 CERTIFICATE OF 7 AUTHENTICATIOI3 8 This Bond is one of the 9 Bonds described in the 10 Resolution mentioned 11 within. 12 13 14 , 15 Bond Registrar 16 17 18 19 20 By Authorized Signature Payable at: CITY OF SAII3T PAUL, RAMSEY COUNTY, MINNESOTA Mayor Attest: City Clerk Countersigned: Director, Office of Financial Services 21 General Obligation Sewer Revenue Bond, Series 1998E, No. R- 920703.2 17 q � -�.4 � 1 2 3 4 5 6 7 3 0 10 11 12 13 CERTSFICATE OF REGISTRATION The transfer of ownership of the principal amount of the attached Hond may be made only by the registered owner or his, her or its legal representative last noted below. DATE OF REGISTRATION REGISTERED OWNER SIGNATURE OF BOND REGISTRP.R 920703.2 m ° � 1 REGISTER OF PARTIAL PAYMENTS 2 The principal amount of the attached Bond has been prepaid on the 3 dates and in the amounts noted below: y Signature of Signature of 5 Date Amount Bondholder Bond Reaistrar 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 If a notation is made on this register, such notation has the 23 effect stated in the attached Bond., Partial payments do not 24 require the presentation of the attached Bond to the Bond 25 Registrar, and a Holder could fail to note the partial payment ?6 here. 92�703.2 �-9 a�-a�� 1 2 3 4 ABBREVIATIONS The following abbreviations, when used in the inscrigtion on the face of this Bond, sha11 be construed as though they were written out in full according to applicable laws or regulations: 5 TEN COM 6 TEN ENT 7 JT TEN 8 9 UTMA - 10 il 12 13 14 - as tenants in common - as tenants by the entireties - as joint tenants with right of survivorship and not as tenants in common as custodian for (Cust? (Minor) under the Uniform Transfers to Minors Act (State) Additianal abbreviations may also be used though not in the above list. 92�703.2 z 0 °t�-ay� F� AS S IGNMEN`P 2 For value received, the undersigned hereby sells, 3 assigns and transfers unto 4 the attached Bond and does 5 hereby irrevocably constitute and appoint y attorney to transfer the Bond on the 7 books kept for the registration thereof, with full power of 8 substitution in the premises. 9 Dated: 10 Notice: The assignor's signature to this 11 assignment must correspond with the name 12 as it appears upon the face of the 13 attached Bond in every particular, 14 without alteration or any change 15 whatever. 16 Signature Guaranteed: 17 18 Signature(s} must be guaranteed by a national bank or trust 19 company or by a brokerage firm having a membership in one of the 20 major stock exchanges or any other "Eligible Guarantor 21 Institution" as defined in 17 CFR 240.17Ad-15(a)(2). 22 The Bond Registrar will not effect transfer of this 23 Bond unless the information concerning the transferee requested 24 below is provided. 25 Name and Address: 26 27 28 29 36 (Include information for all joint owners if the Bond is held by joint accoun�.) s2o�oa.z 2 1 �t�-a� 3 1 B. Renlacement Bonds. If the City has notified 2 Holders that Replacement Bonds have been made available as 3 provided in paragraph 6, then for every Bond thereafter 4 transferred or exchanged (including an exchange to reflect the 5 partial prepayment of a Global Certificate not previously 6 exchanged for Replacement Bonds) the Bond Registrar shall deliver 7 a certificate in the form of the Replacement Bond rather than the 8 Global Certificate, but the Holder of a Global Certificate shall 9 not otherwise be required to exchange the Global Certificate for 10 one or more Replacement Bonds since the City recognizes that some 11 beneficial owners may prefer the convenience of the Depository's 12 registered ownership of the Bonds even though the entire issue is 13 no longer required to be in global book-entry form. The 14 Replacement Bonds, together with the Bond Registrar's Certificate 15 of Authentication, the form of Assignment and the registration 16 information thereon, shall be in substantially the following 17 form: 920703.2 2 2 qg"�' 1 UNITED STATES OF AMERICA 2 STATE OF MINNESOTA 3 RAMSEY COUNTY 4 CITY OF SAINT PAUL 5 R- g GENERAL OBLIGATION SEWER REVENtTE 7 BOND, SERIES 1998E 8 INTEREST MATURITY DATE OF 9 RA2'E DATE ORIGINAL ISSUE CUSIP 10 Apri1 1, 1998 11 12 13 14 15 16 17 1$ 19 20 21 22 23 24 as 26 27 28 29 30 31 32 33 34 35 i6 i7 �g 9 1 2 3 REGISTERED OTdNER: PRINCIPAL AMOUNTc DOLLARS KNOW ALL PERSONS BY THESE PRESENTS that the City of Saint Paul, Ramsey Count}r, 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 June 1 and December 1 of each year (each, an "Interest Payment Date"), commencing December 1, 1998, 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 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 successor paying agent duly appointed by the Issuer. Interest on this Bond will be gaid 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 olose of business on the fifteenth day of the calendar month preceding such Interest Payment Date (the "Regular Record Date"). Any interest not so timely paid shall cease to be payable to the person who is the Fiolder hereof as of the Regular Record Date, and sha11 be payable to the person who is the Holder hereof at the close of business on a date (the "Special Record Date") fixed by the Bond Registrar whenever money becomes available for 920703.2 Z 3 qg-�`� 1 payment of the defaulted interest. Notice of the Special Record 2 Date shall be given to Bondholders not less than ten days prior 3 to the Special Record Date. The principal of and premium, if 4 any, and interest on this Bond are payable in lawful money of the 5 United States of America. 6 REFERENCE IS HEREBY MADE TO THE FURTAER PROVISIONS OF 7 THIS BOND SET FORTH ON THE REVERSE HEREOF, WHICH PROVISIONS SHALI, 8 FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH HERE. 9 10 11 12 13 14 15 16 17 1S 19 20 21 22 23 24 25 26 27 28 29 30 31 32 IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota and the Charter of the Issuer to be done, to happen and to be performed, precedent to and in the issuance of this Bond, have been done, have happened and have been performed, in regular and due form, time and manner as required by law; that the City has covenanted and agreed with the holder of this Bond that it will impose and collect charges for the service, use and availability of and connection to its municipal sewer system at the times and in amounts necessary to produce gross revenues adequate to pay all principal and interest when due on this Bond; that the City will levy a direct, annual, irrepealable ad valorem tax upon all of the taxable property in the City, without limitation as to rate or amount, for the years and in amounts sufficient to pay the principal of and interest on this Bond as they respectively become due, if the gross revenues from said municipal sewer system and any other revenues irrevocably appropriated to said General Obligation Bond Bebt Service Account are insufficient therefor; and that this Bond, together with all other debts of the Issuer outstanding on the date of original issue hereof and on the date of its issuance and delivery to the original purchaser, does not exceed any constitutional or statutory or Charter limitation of indebtedness. 33 IN WITNESS WHEREOF, the City of Saint Paul, Ramsey 34 County, Minnesota, by its City Council has caused this Bond to be 35 executed on its behalf by the original or facsimile signature of 36 its Mayor, attested by the original or facsimile signature of its 37 Clerk, and countersigned by the original or facsimile signature 38 of its Director, Office of Financial Services, the official seal 39 having been omitted as permitted by law. 920703.2 2 4 q��ly� 1 2 3 4 Date of Registration: 5 BOND REGISTRAR'S 6 CERTIFICATE OF 7 AITTHENTICATION 8 This Bond is one of the 9 Bonds described in the 10 Resolution mentioned 11 within. 12 13 14 , 15 Bond Registrar 16 17 18 19 By Authorized Signature 920703.2 Registrable by: Payable at: _ CIfiY OF SAINT PAUL, RAMSEY COUNTY, MINNESOTA Mayor Attest: City Clerk Countersigned: Director, Office of Financial Services 25 qg-�y� 1 ON REVERSE OF BOND 2 Date of Payment Not Business Day. If the date for 3 payment of the principal of, premium, if any, or interest on this 4 Bond sha11 be a Saturday, Sunday, legal holiday or a day on which 5 banking institutions in the City of New York, New York, or the 6 city where the principal office of the Bond Registrar is located 7 are authorized by 1aw or executive order to close, then the date 8 for such payment shall be the next succeeding day which is not a 9 Saturday, Sunday, legal holiday or a day on which such banking 10 institutions are authorized to close, and payment on such date 11 shall have the same force and effect as if made on the nominal 12 date of payment. 13 Optional Redemption. All Bonds of this issue (the 14 "Bonds") maturing after December 1, 2006, are subject to 15 redemption and prepayment at the option of the Issuer on such 16 date and on any day thereafter at a price of par plus accrued 17 interest. Redemption may be in whole or in part of the Bonds 18 subject to prepayment. If redemption is in part, those Bonds 19 remaining unpaid may be prepaid in such order of maturity and in 20 such amount per maturity as the City shall determine (treating 21 amounts scheduled for mandatory redemption as maturities); and if 22 only part of the Bonds having a common maturity date are called 23 for prepayment, the specific Bonds to be prepaid shall be chosen 24 by lot by the Bond Registrar. 25 26 27 28 29 30 31 32 33 34 35 Scheduled Mandatory Redemption, The Bonds maturing in the year 2018 shall be redeemed and prepaid on each December 1 in the years 2�14 through 2017, inclusive, at a price o� par plus accrued interest, without premium, in the years and amounts set forth below: Year 2014 2015 2016 2017 2018 Amount $290,000 300,000 315,000 330,000 345,OD0 (Maturity) 36 ' Due Date. Bonds or portions 3'I redemption shall be due and payable on 38 interest thereon shall cease to accrue 39 redemption date. 40 41 42 43 44 45 46 47 thereof called for the redemption date, and from and after the Notice of Redemption. Mailed notice of redemption sha11 be given to the paying agent (if other than a City officer) and to each affected Holder of the Bonds. In the event any of the Bonds are called for redemption, written notice thereof will be given by first class mail mailed not less than thirty (30l days prior to the redemption date to each Holder of Bonds to be redeemed. In conneetion with any such notice, the "CtISIP" numbers assigned to the Bonds shall be used. szo�os.z 2 6 �l �' - ay� 2 3 4 9 10 11 12 13 14 15 16 1'7 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 a - 7 48 49 ' Selection of Bonds for Redemption. 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 number, shall equal the principal 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 o£ such Bond of a denomination of more than $5,000 shall be redeemed as sha11 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 sha11 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. Issuance; Purpose; General Obliaation. This Sond is one of an issue in the total principal amount of $4,700,000, 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 Mittnesota, including particularly Minnesota Statutes, Chapter 475 and Sections 116.19 and 115.46, and the Charter of the Issuex, and pursuant to a resolution adopted by the City Council of the Issuer on April 1, 1998 (the "Resolution"}, for the purpose of providing money to finance the acquisition, construction and repair of various improvements to the City's wastewater and storm water systems. This Bond is payable out the General Obligation Bond Debt Service Account of the Sewer Service Enterprise Fund of the City, to which account have been pledged net revenues of the City's sewer system. This Bond has been issued to aid in financing a sewage disposal system or part thereof pursuant to Minnesota Statutes, Section 115_46. This Sond 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 full faith and credit and taxing powers of the Issuer have been and are hereby irrevocably pledged. 920703.2 2 7 q�-��� 1 Denominations: Exchanc�e; ResoluCion. The Bonds are 2 issuable solely as fully registered bonds in the denominations of 3 $5,000 and integral multiples thereof of a single maturity and 4 are exchangeable for fully registered Bonds of other authorized 5 denominations in equal aggregate principal amounts at the 6 principal office o£ the Bond Registrar, but only in the manner 7 and•subject to the limitations provided in the Resolution. 8 Reference is hereby made to the Resolution for a description of 9 the rights and duties of the Bond Reqistrar. Copies of the 10 Resolution are on file in the principal office of the Bond 11 Registrar. 12 Transfer. This Bond is transferable by the Holder in 13 person or by his, her or its attorney duly authorized in writing 14 at the principal office of the Bond Registrar upon presentation 15 and surrender hereof to the Bond Registrar, all subject to the 16 terms and conditiotts provided in the Resolution and to reasonable 17 regulations of the Issuer contained in any agreement with, or 18 notice to, the Hond Registrar. Thereupon Che Issuer shall 19 execute and the Bond Registrar shall authenticate and deliver, in 20 exchange for this Bond, one or more new fully registered Bonds in 21 the name o£ the transferee (but not registered in blank or to 22 "bearer" or similar designation), of an authorized denomination 23 or denominations, in aggregate principal amount equal to the 24 principal amount o£ this Bond, of the same maturity and bearing 25 interest at the same rate. 26 Fees upon Transfer or Loss. The Bond Registrar may 27 require payment of a sum sufficient to cover any tax or other 2s governmental charge payable in connection with the transfer or 29 exchange of this Bond and any legal or unusual costs regarding 30 trans£ers and lost Bonds. 31 Treatment of Reaistered Owner. The Issuer and Bond 32 Registrar may treat the person in whose name this Bond is 33 registered as the owner hereof for the purpose of receiving 34 payment as herein provided (except as otherwise provided on the 35 reverse side hereo£ with respect to the Record Aate) and for all 36 other purposes, whether or not this Bond sha11 be overdue, and 37 neither the Issuer nor the Bond Registrar shall be affected by 38 notice to the contrary. 39 Authentication This Bond shall not be valid or become 40 obligatory for any purpose or be entitled to any security unless 41 the Certificate of Authentication hereon shall have been executed 42 by the Bond Registrar. 43 lvot Oualified Tax-Exempt Obliaations. The Bonds have 44 not been designated by the Issuer as "qualified tax-exempt 45 obligations" for purposes of Section 265(by(3} of the federal 46 Internal Revenue Code of 1986, as amended. The Bonds do not 47 qua�ify for such designation. 92o7D3.2 2 8 o��-ay� 1 ABBREVIATIONS 2 The following abbreviations, when used in the 3 inscription on the face of this Bond, shall be construed as 4 though they were written out in full according to applicable laws 5 or regulations: 6 TEN COM - as tenants in common '1 TEN ENT - as tenants by the entireties 8 JT TEN - as joint tenants with right of survivorship 9 and not as tenants in common 10 UTMA - as custodian for 11 (Cust) (Minor) 12 under the Uniform Transfers to Minors Act 13 (State) 14 Additional abbreviations may also be used 15 though not in the above list. 9207a3.2 Z 9 q�'��� 1 AS S I GNMEI3T 2 For value received, the undersigned hereby sells, 3 assigns and transfers unto 4 the within Bond and does 5 hereby irrevocably constitute and appoint 6 attorney to transfer the Bond on the books kept for the 7 registration thereof, with full power of substitution in the 8 premises. 9 Dated: 1� Notice: The assignor's signature to this 11 assignment must correspond with the name 12 as it appears upon the face of the 13 within Bond in every particular, without 14 alteration or any change whatever. 15 SignaCure Guaranteed: 16 17 Signature(s) must be guaranteed by a national bank or trust 18 company or by a brokerage firm having a membership in one of the 19 major stock exchanges or any other "Eligible Guarantor 20 Institution" as defined in 17 CFR 240.17Ad-15(a?(2). 21 The Bond Registrar will not effect transfer of this 22 Bond unless the information concerning the transferee requested 23 below is provided. 24 Name and Address: 25 26 27 (Include information for all joint owners 2g if the Bond is held by joint account.) 9207�3.2 3 � q8 -ay3 1 2 3 8 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 41 10. Execution. The Bonds shall be executed on behalf of the City by the signatures of its Mayor, Clerk and Director, O£fice of Financial 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 behalf of such absent or disabled officer. In case any such officer whose signature or facsimile of whose signature shall appear on the Bonds sha11 cease to be such officer before the delivery of the Bonds, such signature or facsimile sha11 nevertheless be valid and sufficient for all purposes, the same as if he or she had remained in office until delivery. 11. Authen ication• Date o£ Re�istration. No Bond shall be valid or obligatory for any purpose or be entitled to any security or bene£it 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 shall 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, 1998. The Certificate of Authentication so executed on each Bond shall be conclusive evidence that it has been authenticated and delivered under this resolution. 12. Reaistration; Tranafer; Exchanae. The City will cause to be kept at the principal office of the Bond Registrar a bond register in which, subject to such reasonable regulations as the Bond Registrar may prescribe, the Bond Registrar sha11 provifle for the registration of Bonds and the registration of transfers of Bonds entitled to be registered or transferred as herein provided. 42 A Global Certificate shall be registered in the name of 43 the payee on the books of the Bond Registrar by presenting the 44 Global Certificate for registration to the Bond Registrar, who 45 will endorse his or her name and note the date of registration 46 opposite the name of the payee in the certificate of registration 920703 .2 3 �- 9U 1 2 3 4 5 6 10 11 12 13 on the Global Certificate. Thereafter a Global Certificate 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 Aolder as the person exclusively entitled 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 this resolution and to reasonable regulations of the City contained in any agreement with, or notice to, the Bond Registrar. 14 Transfer of a Global Certificate may, at the direction 15 and expense of the City, be subject to other restrictions if 16 required to qualify the Global Certificates as being "in 17 registered form" within the meaning of Section 149(a) of the 18 federal Internal Revenue Code of 1986, as amended. 19 If a Global Certificate is to be exchanged for one or 20 more Replacement Bonds, all of the principal amount of the Global 21 Certificate shall be so exchanged. 22 23 24 25 26 27 28 29 30 31 32 Upon surrender for transfer of any Replacement Bond the principal office of the Bond Registrar, the City shall execute (if necessary), and the Bond Registrar shall authenticate, insert the date of registration (as provided in paragraph 11) of, and deliver, in the name of the designated transferee or transferees, one or more new Replacement Bonds at of any authorized denomination or denominations of a like aggregate principal amount, having the same stated maturity and interest rate, as requested by the transferor; provided, however, that no bond may be registered in blank or in the name of "bearer" or similar designation. 33 At the option of the Holder of a Replacement Bond, 34 Replacement Bonds may be exchanged for Replacement Bonds of any 35 authorized denomination or denominations of a like aggregate 36 principal amount and stated maturity, upon surrender of the 37 Replacement Bonds to be exchanged at the principal office of the 38 Bond Registrar. Whenever any Replacement Sonds are so 39 surrendered for exchange, the City shall execute Eif necessary), 40 and the Bond Registrar sha11 authenticate, insert the date of 41 registration of, and deliver the Replacement Bonds which the 42 Iiolder making the exchange is entitled to receive. Global 43 Certificates may not be exchanged for Global Certificates of 44 smaller denominations. 920703.2 3 2 9�-�y 1 All Bonds surrendered upon any exchange or transfer 2 provided for in this resolution shall be promptly cancelled by 3 the Bond Registrar and thereafter disposed of as directed by the 4 City. 5 Al1 Bonds delivered in exchange for or upon transfer of 6 Bonds shall be valid general obligations of the City evidencing 7 the same debt, and entitled to the same benefits under this 8 resolution, as the Bonds surrendered for such exchange or 9 transfer. 10 Every Bond presented or surrendered for transfer or 11 exchange sha11 be duly endorsed or be accompanied by a written 12 instrument of transfer, in form satisfactory to the Bonfl 13 Registrar, duly executed by the Holder thereof or his, her or its 14 attorney duly authorized in writing. - 15 The Bond Registrar may require payment of a sum 16 sufficient to cover any tax or other governmental charge payable 17 in connection with the transfer or exchange of any Bond and any 18 legal or unusual costs regarding transfers and lost Bonds. 19 Transfers shall also be subject to reasonable 20 regulations of the City contained in any agreement with, or 21 notice to, the Bond Registrar, including regulations which permit 22 the Bond Registrar to close its Cransfer books between record 23 dates and payment dates. 24 13. Riqhts Upon Transfer or Exchancre. Each Bond 25 delivered upon transfer of or in exchange for or in lieu of any 26 other Bond shall carry all the rights to interest accrued and 27 unpaid, and to accrue, which were carried by such other Bond. 28 29 30 31 32 33 34 35 36 37 3S 39 40 41 42 14. Interest Payment; Record Date. Interest on any Global Certificate sha11 be paid as provided in the first paragraph thereof, and interest on any Replacement Bond shall be paid on each Interest Payment Date by check or draft mailed to the person in whose name the Bond is registered (the "Holder") on the registration books of the City maintained by the Bond Registrar, and in each case at the address appearing thereon at the close of business on the fifteenth (15th) day of the calendar month preceding such Interest Payment Date (the "Regular Record Date"1. Any such interest not so timely paid shall cease to be payable to the person who is the Holder thereof as o£ the Regular Record Date, and shall be payable to the person who is the Holder thereof at the close of business 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 920�03.2 3 3 a��ay� 4 5 Special Record Date shall be given by the Bond Registrar to the Holders not less than ten (10) days prior to the Special Record Date_ 15. 6 (A) For the purposes of all actions, consents and other 7 matters a££ecting iiolders of the Bonds, other than payments, 8 redemptions, and purchases, the City may (but sha11 not be 9 obligated to) treat as the Holder of a Bond the beneficial owner 10 of the Bond instead of the person in whose name the Bond is 11 registered. For that purpose, the City may ascertain the 12 identity of the beneficial owner of the Bond by such means as the 13 Bond Registrar in its sole discretion deems appropriate, 14 including but not limited to a certificate from the person in 15 whose name the Bond is registered identifying such beneficial 16 owner. 17 (B) The City and Bond Registrar may treaC the person in 18 whose name any Bond is registered as the owner of such Bond for 19 the purpose of receiving payment of principal of and premium, if 20 any, and interest (subject to the payment provisions in paragraph 21 14 above) on, such Sond and for all other purposes whatsoever 22 whether or not such Bond shall be overdue, and neither the City 23 nor the Bond Registrar shall be affected by notice to the 24 contrary. 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 4� 41 42 (C) Any consent, request, direction, approval, objection or other instrument to be signed and executed by the Holders may be in any number of concurrent writings of similar tenor and must be signed or executed by such Holders in person or by agent appointed in writing. Proof of the execution of any such consent, request, direction, approval, objection or other instrument or of the writing appointing any such agent and of the ownership of Bonds, if made in the following manner, shall be sufficient for any of the purposes of this resolution, and sha11 be conclusive in favor of the City with regard to any action taken by it under such request or other instrument, namely: (1) The fact and date of the execution by any person of any such writing may be proved by the certificate of any o£ficer in any jurisdiction who by law has power to take acknowledgments within such jurisdiction that the person signing such writing acknowledged before him or her the execution thereof, or by an affidavit of any witness to such execution. 920103.2 34 � �_yy 1 1 (2) Subject to the provisions of subparagraph (A) 2 above, the fact of the ownership by any person of Bonds and 3 the amounts and numbers of such Bonds, and the date of the 4 holding of the same, may be proved by reference to the bond 5 register. 6 16. Delivery; Application of Proceeds. The Global 7 Certificates when so prepared and executed shall be delivered by 8 the Director, Office of Financial Services, to the Purchaser upon 9 receipt o£ the purchase price, and the Purchaser shall not be 10 obliged to see to the proper application thereof. 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 41 42 43 44 45 46 47 48 17. Fund and Accounts. There has heretofore been created (as provided in the General Resolution) a separate fund of the City designated the "Sewer Service Enterprise Fund" (the "Fund"). The Fund shall be maintained in the manner specified in the General Resolution and herein until the Revenue Bonds, and interest thereon, have been fully paid, and as specified herein until the Bonds and interest thereon have been fully paid. There shall be maintained in the Fund, in addition to the Construction Account, Operation and Maintenance Account, Revenue Bond Debt Service Account, Reserve Account, Excess Investment Earnings Account and 1993 Refunding Escrow Account heretofore established with respect to the Revenue Bonds, and the PFA Construction Account and PFA Debt Service Account heretofore established with respect to the PFA Notes, the following two (2) separate accounts, to which shall be credited and debited all income and disbursements of the Fund relating to the Bonds as hereinafter set forth. The Treasurer and all municipal officials and employees concerned therewith sha11 establish and maintain financial records of the receipts and disbursements of the Sewer System in accordance with this resolution. In such records there shall be maintained accounts of the Fund for the purposes and in the amounts as follows: (i) A"General Oblicration Bond Construction Account", to which 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 $4,63&,9�0. From the General Obligation Bond Construction 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 incurred 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 General Obligation Sond Construction 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 920703.2 35 q�-ay3 1 Revenues pledged herein; and provided further that if upon 2 completion of the Improvements there shall remain any 3 une�ended balance in the General Obligation Bond 4 Construction Account, the balance may be used for any other 5 purpose permitted by law, or transferred to the General 6 Obligation Bond Debt Service Account. A11 earnings on the 7 General Obligation Bond Construction Account shall be 8 transferred to the General Obligation Bond Debt Service 9 Account, or may remain in the General Obligation Bond 10 Construction Account. 11 (ii) A"General Obligation Bond Debt Service Account", 12 to which there shall be irrevocably appropriated, pledged 13 and credited: (a) al1 accrued interest received upon 14 delivery of the Bonds; (b) all funds paid for the Bonds in 15 excess of $4,638,900; (c) Revenues (as defined in the 16 General Resolution, and as provided in Section 4.03(A) Sixth 17 thereof) in an amount sufficient, with other moneys, to pay 18 the principal of, and interest on, the Bonds when due; (d) 19 any collections of all taxes which may hereafter be levied 20 for the payment of the Bonds and interest thereon as 21 provided in paragraph 19; (e) all funds remaining in the 22 General Obligation Bond Construction Account after 23 completion of the Improvements and payment of the costs 24 thereof, not so used for any other purpose permitted by law; 25 (f) all investment earnings on moneys held in the General 26 Obligation Bond Debt 5ervice Account; and (g) any and all 27 other moneys which are properly available and are 28 appropriated by the governing body of the City to the 29 General Obligation Bond Debt Service Account. 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 (iii) Excess Revenues may be used for any proper purpose to the extent provided in the General Resolution. The General Obligation Bond Debt Service Account sha11 be used solely to pay the grincipal and interest and any premiums for redemption of the Bonds and any other bonds of the City heretofore or hereafter issued by the City and made payable from the General Obligation Bond Debt Service Account as provided by law, or to pay any rebate due to the United States. No portion of the proceeds of the Bonds shall be used directly or indirectl� to acquire higher yielding investments or to replace funds which were used directly or indirectly to acquire higher yielding investments, except (1) for a reasonable temporary period until such proceeds are needed for the purpose for which the 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 Fund, General Obligation Bond Construction Account or General Obligation Bond Debt Service Account (or 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 9zo�os.z 3 6 ��-ay � 1 a 3 4 5 6 7 8 9 10 11 iz 13 14 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 portion" made available under the federal arbitrage regulations. In addition, the proceeds of the Bonds and money in the Fund, General Obligation Bond Construction Account or General Obligation Bond Debt Service Account shall not be invested in obligations or deposits issued by, guaranteed by or insured by Che United States or any agency or instrumentality thereof if and to the extent that such invest- ment would cause the Bonds to be "federally guaranteed" within the meaning of Section 149(b) of the federal Internal Revenue Code of 1986, as amended (the "Code"). 15 18. Coverage Test• rteacre oi xevenues• �xcess 16 Revenues• Parit� Bonds• Pledae to Produce Revenues. It is hereby 17 found, determined and declared that the Revenues of the Sewer 18 System are sufficient in amount, when used in the order provided 19 in the General Resolution, to pay when due one hundred five 20 percent {105%) of the principal of and interest on the Bonds, and 21 the 12evenues of the Sewer System are hereby pledged for the 22 payment of the Bonds, but solely to the extent required to meet, 23 with other pledged sources, one hundred five percent (lOSo) of 24 the principal of, and interest on, the Bonds as the same become 25 due. Excess Revenues may be used for any proper purpose as 26 provided in the General Resolution. 27 Nothing contained herein shall be deemed to preclude 28 the City from making further pledges and appropriations of the 29 Revenues of the Sewer System for the payment of other or 30 additional obligations of the City, provided that it has first 31 been determined by the City Council that estimated Revenues of 32 the Sewer System will be sufficient, in addition to all other 33 sources, for the payment of the Bonds and suoh additional 34 obligations, and any such pledge and appropriation of the 35 Revenues may be made superior or subordinate to, or on a parity 36 with, the pledge and appropriation herein. The Bonds are issued 37 pursuant to Minnesota Statutes, Section 115.46, and nothing 38 herein shall preclude the City from levying taxes for the payment 39 of the Bonds. 4� 41 42 43 44 45 46 47 48 Revenues are hereby pledqed to the payment of the Bonds. The lien on Revenues securing the Bonds is hereby expressly made a lien on Revenues junior and subsequent to the lien of the General Resolution as it applies to the Revenue Bonds, all as provided in Section 6.01(A) of the General Resolution. The Bonds shall be paid from the Operation and Maintenance Account of the Sewer Service Enterprise Fund as provided in Section 4.03(A) Sixth of the General Resolution, and for this purpose it is hereby found, determined and declared that 920703.2 37 qx-a�t� 1 2 4 5 6 10 the Bonds finance Improvements (as defined in the General Resolution). As provided in paragraph 10 of each of the resolutions authorizing issuance of the PFA Notes, it is hereby found, determined and declared that estimated revenues of the Sewer System will be sufficient, in addition to all other sources, for the payment of the PFA Notes and the Bonds. The pledge and appropriation of the Revenues to the payment of the Bonds shall be on a parity with the pledge and appropriation to the payment of the PFA Notes. 11 In accordance with Minnesota Statutes, Section 116.19, 12 the City hereby covenants and agrees with the holder of the Bonds 13 that it will impose and collect charges for the service, use and 14 availability of and connection to the Sewer System the times 15 and in the amounts required to produce Revenues adequate to pay 16 a11 principal and interest when due on the Bonds. Nothing herein 17 shall preclude the City from levying taxes for the payment of the 18 Bonds as permitted by Minnesota Statutes, Section 115.46. 19 19. General Obliaation Pledcre. For the prompt and 20 full payment of the principal and interest on the Bonds, as the 21 same respectively become due, the full faith, credit and taxing 22 powers of the City shall be and are hereby irrevocably pledged. 23 If the Revenues of the Sewer System appropriated and pledged to 24 the payment of principal of, and interest on, the Bonds, together 25 with other funds irrevocably appropriated to the General 26 Obligation Bond Debt Service Account referred to in paragraph 17 27 of this resolution, shall at any time be insufficient to pay such 28 principal and interest when due, the City covenants and agrees to 29 levy, without limitation as to rate or amount, an ad valorem tax 30 upon all taxable property in the City sufficient to pay such 31 principal and interest as they become due. If the balance in the 32 General Obligation Bond Debt Service Account (as defined in 33 paragraph 17 hereof) is ever insufficient to pay all principal 34 and interest then due on the Bonds payable therefrom, the 35 de£iciency shall be promptly paid out of any other funds of the 36 City which are available for such purpose, including the general 37 fund of the City, and such other funds may be reimbursed with or 38 without interest from the General Obligation Bond Debt Service 39 Account when a sufficient balance is available therein. 40 41 42 43 44 45 46 4? 20. Certificate of Reaistration. The Director, Office of Financial Services, is hereby directed to file a certified copy of this resolution witta the officer of Ramsey County, Minnesota, performing the functions of the oounty auditor (the "County Auditor"), together with such other in£ormation as the County Auditor shall require, and to obtain the County Auditor's certificate that the Bonds have been entered in the County Auditor's Bond Register. 920703.2 �7 q� 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 21. Records and Certificates. The officers of the City are hereby authorized and directed to prepare and furnish to the Purchaser, and to the attorneys approving the legality of the issuance of the Bonds, certified copies of all proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the City, and such other affidavits, certificates and information as are required to show the facts relating to the legality and marketability of the Bonds as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore furnished, shall be deemed representations of Che City as to the facts recited therein. 22. Necrative Covenants as to Use of Proceeds and Improvements. The City hereby covenants not to use the proceeds of the Bonds or to use the Improvements, or to cause or permit them to be used, or to enter into any deferred payment arrangements for the cost of the Improvements, in such a manner as to cause the Bonds to be "private activity bonds" within the meaning of Sections 1�3 and 141 through 15Q of the Code. The 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 governmental purpose of the issue. The City hereby aovenants not to use the proceeds of the Bonds in such a manner as to cause the Bonds to be "hedge bonds" within the meaning of Section 149(g) of the Code. 28 23. Tax-Exempt Status of the Bonds; Rebate; Elections. 29 The City shall comply with requirements necessary under the Code 30 to establish and maintain the exclusion from gross income under 31 Section 103 of the Code of the interest on the Bonds, including 32 without limitation requirements relating to temporary periods for 33 investments, limitations on amounts invested at a yield greater 34 than the yield on the Bonds, and the rebate of excess investment 35 earnings to the United States. 36 The City expects that the two-year expenditure 37 exception to the rebate requirements may apply to the 38 construction proceeds of the Bonds. 39 If any elections are available now or hereafter with 40 respect to arbitrage or rebate matters relating to the Bonds, the 41 Mayor, Clerk, Treasurer and Director, Office of Financial 42 Services, or any of them, are hereby authorized and directed to 43 make such elections as they deem necessary, appropriate or 44 desirable in connection with the Bonds, and all such elections 45 shall be, and shall be deemed and treated as, elections of the 46 City. 920703.2 3 9 q�_1`1� 8 9 10 11 12 13 14 15 16 24. No Desicrnation of Qualified Tax-Exempt Obligations. The Bonds, together with other obligations issued by Che City in 1998, exceed in amount those which may be qualified as "qualified tax-exempt obligations" within the meaning of Section 265(b�(3) of the Code, and hence are not designated for such purpose. 25. Letter of Representations. The Letter of Representations for the Bonds is hereby confirmed to be the Blanket Issuer Letter of Representations dated April 10, 1946, by the City and received and accepted by The Depository Trust Company. So long as The Depository Trust Company is the Depository or it or its nominee is the Holder of any Global Certificate, the City shall comply with the provisions of the Letter of Regresentations, as it may be amended or supplemented by the City from time to time with the agreement or consent of The Depository Trust Company. 17 26. Negotiated Sale. The City has retained Springsted 18 Incorporated as an independent financial advisor, and the City 19 has heretofore determined, and hereby determines, to sell the 20 Bonds by private negotiation, all as provided by Minnesota 21 Statutes, Section 475.60, Subdivision 2(9). 22 23 24 25 26 27 28 27. Continuing Disclosure. The City is an obligated person with respect to the Bonds. The City hereby agrees, in accordance with the provisions of Rule i5c2-12 (the "Rule"), promulgated by the Securities and Exchange Commission (the "COmmission") pursuant to the Securities Exchange Act of 1934, as amended, and a Continuing Disclosure Undertaking (the "Undertaking") hereinafter described, to: 29 A. Provide or cause to be grovided to each nationally 30 recognized municipal securities information repository 31 ("NRMSIR") and to the appropriate state information 32 depositor�r ("SID"�, if any, for the State of Minnesota, in 33 each case as designated by the Commission in accordance with 34 the Rule, certain annual financial intormation and operating 35 data in accordance with the Undertaking. The City reserves 36 the right to modify from time to time the terms of the 37 Undertaking as provided therein. 38 B. Provide or cause to be provided, in a timely 39 manner, to (i) each NRMSIR or to the Municipal Securities 40 Rulemaking Board ("MSRB") and (ii) the SID, notice of the 41 occurrence oP certain material events with respect to the 42 Bonds in accordance with the Undertaking. 43 C. Provide or cause to be provided, in a timely 44 manner, to (i) each NRMSIR or to Che MSRB and (ii) the SID, 45 notice of a failure by the City to provide the annual 920703.2 " 4 � q�-�y� 1 financial information with respect to the City described in 2 the Undertaking. 3 The City agrees that its covenants pursuant to the Rule 4 set forth in this paragraph 27 and in the Undertaking are 5 intended to be for the benefit of the Aolders of the Bonds and 6 shall be enforceable on behalf of such Holders; provided that the 7 right to enforce the provisions of these covenants shall be 8 limited to a right to obtain specific enforcement of the City's 9 obligations under the covenants. 10 The Mayor and Director, Office of Financial Services, 11 or any other officers of the Ci[y authorized to act in their 12 stead (the "Officers"), are hereby authorized and directed to 13 execute on behalf of the City the Undertaking in substantially 14 the form presented to the City Council, subject to such 15 modifications thereof or additions thereto as are (i) consistent 16 with the requirements under the Rule, (ii) required by the 17 Purchaser, and (iii) acceptable to the Officers. 18 28. Resolutions Supplemented. The General Resolution 19 and the resolutions authorizing the issuance of the PFA Notes are 20 hereby supplemented to the extent necessary to give effect to the 21 provisions of paragraph 17 of this resolution. 22 29. Severabilitv. I£ any section, paragraph or 23 provision of this resolution shall be held to be invalid or 24 unenforceable for any reason, the invalidity or unenforceability 25 of such section, paragraph or provision shall not affect any of 26 the remaining provisions of this resolution. 9207D3.2 4 1 ORIGINAL 1 30. Headincrs. Headings in this 2 included for convenience of reference onl 3 hereof, and shall not limit or define the 4 provision hereof. a��--ay� resolution are y and are not a part meaning of any Requested by DeQartment of: Adopted by Council: Date ��� � ���� Adoption Certified by Council Secretary B � � _ � r.,�-�----_ Approved by Mayor: D 'S ��ln �Wt °-�"'— 920703.2 � o � : �ooiL.,� � � ' � �. . -: . • � � •,r - > �!.� �ill�/4� a�-a� of Financial Setvices ��� TOTAL # OF SIGNATURE PAGES DAT6INITIATED h�.,9� GREEN SHEET ASSIGN No 60944 ■ 1� 7 eEVnnmart nx�crae � arrcouKa. _ FOR � GrtYATTORNfl' `/ ❑ GIYCLERR � ❑ FlWKYLLSFRVICESG6L ❑ FWNO4LSERV/ACCi6 � YAVOR(ORw593iANTl� ❑ _1_ (CUP ALL LOCATIONS FOR SIGNATURE) �is resolution accepts the winning proposal and awards the bid for the $4,700,000 G.O. :wer Revenue BorMS Series 1998E. This is a competi6ve borM sale and the award going to the bidder found most advantageos Qwvest cost) to the City. PLANNING COMMISSION CIB COMMITTEE qVIL SERVICE COMMISSION TIATING PROBLEM ISSUE, OPPORNNITV (Who, What, When, Where, Why) � bonds are For the purpose oi financing certam sewer prqects vrithin the City, and will repeitl by sewer revenue5. GES IF APPROVED be available tor sevrer projects. � a^tYU� �a43!IV�Gi� �Q$$?i4Csf ��_,i..,.> � �. r Y `.f, IFAPPROVED �� sewer Pmle�is wifl nW be aradable. AMOUNT OF TRANSACTION S sa�oo.000 Has this parsoM�m ever wwked u'Wer a contrac[ fw Ihis department? YES NO , Has this persoMrm ever been a city employee� YES NO Dces this persoNfirtn possess a sldll not normalty possessetl by any curceM city employee? YES NO Is this persoNfrtn a targetetl vendoR ` YES NO �������� MAR 2 3 1998 R S QSY�J ���itsC CQST/REVENUE 6UDGETED (CIRCLE ONE) ACTNITY NUMBER YES NO (IXPWN) d��--ay3 1 2 publication of notice thereof as a form of private negotiation; and 3 WHEREAS, proposals for the Bonds have been solicit 4 Springsted Incorporated pursuant to an Official Statement ar� 5 Terms of Proposal therein: � 6 NOW, THEREFORE, BE IT RESOLVED by the Council,of the 7 City of Saint Paul, Minnesota, as follows: ,r 8 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 41 42 43 §4 by l. Acceptance of Proposal. The proposal of (the "Purchaser"), to p rchase $4,70�,000 General Obligation Sewer Revenue Bonds, Series 1998E, of the City (the "Bonds", or individually a"BOn '), in accordance with the Terms ot Proposal for the bc�nd sale, at the rates of interest set forth hereinafter, and t�i pay for the Bonds the sum of S , plus interest ac�rued to settlement, is hereby found, determined and declared t�e the most favorable proposal received and is hereby accepted, d the Bonds are hereby awarded to the Purchaser. The Dir ctor, Office of Financial Services, or his designee, is irected to retain the deposit of the Purchaser and to forthwi return to the others making proposals their good faith checks or drafts. 2. Title• Ori inal I sue/Date• Denominations• Maturities. The Bonds shall be ti ed "General Obligation Sewer Revenue Bonds, Series 1998E", sha be dated April 1, 1998, as the date of original issue and s 11 be issued forthwith on or after such date as fully regist ed bonds. The Bonds shall be numbered from R-1 upward. Glo a1 Certificates shall each be in the denomination of the entir principal amount maturing on a single date, or, if a portio of said principal amount is prepaid, said principal amo nt less the prepayment. Replacement Bonds, if issued as provid d in_paragraph 6, shall be in the denomination of $5,000 ea h or in any integral multiple thereof of a single maturity. T e Bonds shall mature on December 1 in the years and amounts follows: Year 1999 2000 2001 2002 2003 20 2 5 006 2007 2008 Amount $155,000 160,000 165,000 175,000 180,000 190,000 195,000 205,000 215,000 220,000 Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Amount $230,000 240,000 250,000 265,000 275,000 290,000 300,000 315,000 330,000 345,000 z 4 o{k�-�y3 9 10 11 12 3. Purpose. The Bonds shall provide funds construction of various improvements to the City's w storm water systems (the "Improvements"). The Bonds to aid in financing a sewage disposal system or part pursuant to Minnesota Statutes, Section 115.46. The the Bonds shall be deposited and used as provided iyf 17, and any excess moneys shall be devoted to any �it permitted by law. The total cost of the Improvement shall include all costs enumerated in Minnesota tat t the ater and issued /proceeds of paragraph her purpose s, which utes, Section 475.65, is estimated to be at least equal to t e amount of the Bonds. Work on the Improvements shall proce� with due diligence to completion. 13 4. Interest. The Bonds shall ear interest payable 14 semiannually on June 1 and December 1 of ach year (each, an 15 "Interest Payment Date"), commencing Dec mber 1, 1998, calculated 16 on the basis of a 360-day year of twelv 30-day months, at the 17 respective rates per annum set forth o posite the maturity years 18 as follows: 19 Maturity Year Interest Rate Ma Year Interest Rate 20 21 22 23 24 25 26 27 28 29 30 3 ]. 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 °s 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 a 5. Descri�tion of the Global Certiticates and Global Book-Entry System. pon their original issuance the Bonds will be issued in the fo m of a single Global Certificate for each maturity, deposite with the Depository by the Purchaser and immobilized as pr vided in paragraph 6. No beneficial owners of interests in the Bonds will receive certificates representing their respectiv interests in the Bonds except as provided in paragraph 6, xcept as so provided, during the term of the Bonds, benefi ial ownership (and subsequent transfers of beneficial o ership) of interests in the Global Certificates will be ref ected by book entries made on the reaords of the Depository and its Participants and other banks, brokers, and dealers p rticipating in the National System. The Depository's book ent ies of beneficial ownership interests are authorized to be in i crements of $5,000 of principal of the Bonds, but not smalle increments, despite the larger authorized denominations of t Global Certificates. Payment of principal of, premium, if any, and interest on the Global Certificates will be made to the Bo Registrar as paying agent, and in turn by the Bond Registrar F.'7 qg-a� 3 qualified to act as such, as provided in clause (ii) of this subparagraph, or (iv) To those persons to whom transfer is re in written transfer instructions in the event that� 5 (a) the Depository shall resign or discontinue 6 its services for the Bonds and the City is�unable to 7 locate a substitute depository within tw�o (2l months 8 following the resignation or determin� on of non- 9 eligibility, or 10 (b) upon a determination by t�Yie City in its sole 11 discretion that (1) the continuati�on of the book-entry 12 system described herein, which precludes the issuance 13 of certificates (other than Glo�ial Certificates) to any 14 Holder other than the Deposit {-}� (or its nominee), 15 might adversely affect the i erest of the beneficial 16 owners of the Bonds, or (2) that it is in the best 17 interest of the beneficial owners of the Bonds that 18 they be able to obtain ce tificated bonds, 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 in either of whic its determination (the "Replacement the registration, be conducted as p In the event be authorized by this presentation of Global to the substitute or successor depository purposes and functi999 Representations sh�']. depository unless/th depository so ag,ree, 7. h events t e City shall notify Holders of and of t e availability of certificates Bonds") to Holders requesting the same and transf r and exchange of such Bonds wi11 rovid in paragraphs 9B and 12 hereof. of a succession of the Depository as may �a agraph, the Bond Registrar upon �ertificates shall register their transfer ccessor depository, and the substiCute or �all be treated as the Depository for all s under this resolution. The Letter of not apply to a substitute or successor City and the substitute or successor and a similar agreement may be entered into. (a) O'onal Redem t'on: Due Date. All Bonds maturing after Dece er 1, 2006, shall be subject to redemption and prepaymen at the option of the City on such date and on any day thereaft r at a price of par plus accrued interest. Redemption may be 'n whole or in part of the Bonds subject to prepayment. If re mption is in part, those Bonds remaining unpaid may be prep d in such order of maturity and in such amount per maturity as t e City shall determine; and if only part of the Bonds having a c mmon maturity date are called for prepayment, the Global C tificates may be prepaid in $5,000 increments of principal d, if applicable, the specific Replacement Bonds to be prepaid hall be chosen by lot by the Bond Registrar. Bonds or portions 920703.2 7 ay 3 1 thereof called for redemption shall be due and payable on 2 redemption date, and interest thereon shall cease to accr 3 and after the redemption date. � from 4 (b) Notation on Global Certificate. Upon a redue�ion in 5 the aggregate principal amount of a Global Certifica�, the 6 Holder may make a notation of such redemption on the panel 7 provided on the Global Certificate stating the amownt so 8 redeemed, or may return the Global Certificate tor�he Bond 9 Registrar in exchange for a new Global Certificat�e authenticated 1� by the Bond Registrar, in proper principal amou`t. Such 11 notation, if made by the Holder, shall be fo�eference only, and 12 may not be relied upon by any other person as being in any way 13 determinative of the principal amount of su Global Certificate 14 outstanding, unless the Bond Registrar has signed the appropriate 15 column of the panel. 16 (c) Selection of Re lacement Bond . To effect a partial 17 redemption of Replacement Bonds having a common maturity date, 18 the Bond Registrar prior to giving no ice of redemption shall 19 assign to each Replacement Bond hav' g a common maturity date a 20 distinctive number for each $5,000 f the principal amount of 21 such Replacement Bond. The Bond gistrar shall then select by 22 lot, using such method of select' n as it shall deem proper in 23 its discretion, from the number so assigned to such Replacement 24 Bonds, as many numbers as, at ,000 for each number, shall equal 25 the principal amount of such eplacement Bonds to be redeemed. 26 The Replacement Bonds to be edeemed shall be the Replacement 27 Bonds to which were assigne numbers so selected; provided, 28 however, that only so much of the principal amount of each such 29 Replacement Bond of a den ination of more than $5,000 shall be 30 redeemed as shall equal ,000 for each number assigned to it and 31 so selected. 32 33 34 35 36 37 38 39 4D §1 42 43 44 45 (d) Partial Redefn tion of Re lacement Bonds. If a Replacement Bond is be redeemed only in part, it shall be surrendered to the B nd Registrar (with, if the City or Bond Registrar so requir s, a written instrument of transfer in form satisfactory to t 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 1if necessary) and the Bond Registrar shall authenticate and deliver to the Holder of such Replacement Bo d, without service charge, a new Replacement Bond or Bonds of t e same series having the same stated maturity and interest rat and of any authorized denomination or denominatio , as requested by such Holder, in aggregate principal ount equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered. 46 (e� Reauest for Redem�tion. The Bond Registrar shall ca11 47 Bonds f redemption and payment as herein provided upon receipt 48 by the ond Registrar at least forty-five (45) days prior to the 920703. 3 ag-�y3 1 2 3 4 5 6 7 8 9 10 ii 12 13 14 15 16 17 (ii) The redemption price; 18 (iii) If less than all outs��anding Bonds are to be 19 redeemed, the identification (a�d, in the case of partial 20 redemption, the respective pr cipal amounts? of the Bonds � 21 to be redeemed; f� 22 (iv) That on the redemption date, the redemption price 23 wi11 become due and payab� upon each such Bond, and that 24 interest thereon shall�ase to accrue from and after said 25 date; and 26 (v) The plac�here such Bonds 2'7 for payment of the edemption price 28 office of the Bonc} Registrar). 29 30 31 32 33 34 35 redemption date of a request of the City, in written form Bond Registrar is other than a City officer. Such request specify the principal amount o£ Bonds to be called for red and the redemption date. (f) Notice. Mailed notice of redemption shall be gi the paying agent (if other than a City officer3 and to eac affected Holder. If and when the City shall call any of� if the shall to 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 gonds at the office of the Bond Registrar. Notice of redemptionfshall be given by first class mail, postage prepaid, maile�`not less than thirty (30) days prior to the redemption date, t�d`each Holder of Bonds to be redeemed, at the address appearing in the Bond Register. All notices of redemption shall sta�e: (g) Notice Company or its n Bonds. If there Depository or it efforts to deliv business day ne�c all other Holcl�r (i) The redemption date; are to be surrendered (which shall be the o IA'�e osito . Notices to The Depository Trust i ee shall contain the CUSIP numbers of the ,re any Holders of the Bonds other than the nominee, the Bond Registrar shall use its best any such notice to the Depository on the preceding the date of mailing of such notice to 36 37 in Saint 38 and trans 39 Registra 40 Registr r 41 City a d 42 herew'th. 43 City or a 44 reg'strar 9 703.2 8 Sond Reaistrar. First Trust National Association, P 1, Minnesota, is appointed to act as bond registrar er agent with respect to the Bonds (the "Bond "), and shall do so unless and until a successor Bond is duly appointed, all pursuant to any contract the Bond Registrar shall execute which is consistent A successor Bond Registrar shall be an officer of the bank or trust company eligible for designation as bond pursuant to Minnesota Statutes, Chapter 475, and may be 0 a �r- a.�� 1 appointed pursuant to any contract the City and such successor 2 Bond Registrar shall execute which is consistent herewith. The 3 Bond Registrar shall also serve as paying agent unless and unti 4 a successor paying agent is duly appointed. Principal and 5 interest on the Bonds shall be paid to the Holders (or record,,r� 6 holders) of the Bonds in the manner set forth in the forms�f 7 Bond and paragraph 14 of this resolution. g 9. Forms of Bond. The Bonds shall be in th�form of 9 Global Certificates unless and until Replacement Bonds/are made 10 available as provided in paragraph 6. Each form of nd may 11 contain such additional or different terms and prov'sions as to 12 the form of payment, record date, notices and oth matters as 13 are consistent with the Letter of Representation and approved by 14 the City Attorney. 15 A. Global Certificates. The G 16 together with the Certificate of Registrat 17 Partial Payments, the form of Assignment 18 information thereon, shall be in substan i 19 and may be typewritten rather than pri ed o}�al Certificates, 6 n, the Register of d the registration lly the following form �os.z 10 �IS-��t 3 1 2 3 4 5 6 7 8 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 4� 41 42 43 44 45 46 47 48 49 Registrar has signed the appropriate column of the panel. Interest on this Bond will be paid on each Interest Payme Date in same-day.funds by 2:30 p.m., Eastern time, to the per on in whose name this Bond is registered (the "Holder" or "B dholder") on the registration books of the Issuer maintained by he Bond Registrar and at the address appearing thereon at th close of business on the fifteenth day of the calendar mont preceding such Interest Payment Date (the "Regular Record D e"). Interest payments shall be received by the Holder no late than 2:30 p.m., Eastern time; and principal and premium paymen shall be received by the Holder no later than 2:30 p.m , Eastern time, if the Bond is surrendered for payment enough i advance to permit payment to be made by such time. Any inte st not so timely paid shall cease ta be payable to the person w is the Holder hereof as of the Regular Record Date, and shall e payable to the person who is the Holder hereof at the close o business on a date (the "Special Record Date") fixed by the B d Registrar whenever money becomes available for payment of the efaulted 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 Stat of America. Date of Pavment Not u iness Da . If the date for payment of the principal of, premium, if any, or interest on this Bond shall be a Saturday, S nday, legal holiday or a day on which banking institutions in t City of New York, New York, or the city where the principal ffice of the Bond Registrar is located are authorized by law o executive order to close, then the date for such payment shall e the next succeeding day which is not a Saturday, Sunday, leg holiday or a day on which such banking institutions are aut orized to close, and payment on such date shall have the same force and effect as if made on the nominal date of payment. Rede t�ion. All Bonds of this issue (the "Bonds") maturing after ecember 1, 2006, are subject to redemption and prepayment at e option of the Issuer on such date and on any day thereafte ati a price of par plus accrued interest. Redemption m y be in whole or in part of the Bonds subject to prepayment. If redemption is in part, those Bonds remaining unpaid may e prepaid in such order of maturity and in such amount pe maturity as the City shall determine; and if only part of the B nds having a common maturity date are called for prepaym nt, this Bond may be prepaid in $5,��0 increments of princi al. Bonds or portions thereof called for redemption shall be du and payable on the redemption date, and interest thereon shal cease to accrue from and after the redemption date. Notice of R�demption. Mailed notice of redemption 1 be given to the paying agent (if other than a City officer) to each affected Holder of the Bonds_ In the event any of 920703.2 E�% �r-a.�� 1 the Bonds are called for redemption, written notice thereof wi 2 be given by first class mail mailed not less than thirty (30) 3 days prior to the redemption date to each Holder of Bonds to 4 redeemed. In connection with any such notice, the "CUSIP" 5 numbers assigned to the Bonds shall be used. 6 7 8 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 41 42 43 44 45 46 47 48 49 Redemotion. L3pon a partial redemption of this Bond w'ich results in the stated amount hereof being reduced, the Hold may in its discretion make a notation on the panel provided rein of such redemption, stating the amount so redeemed. Suc notation, if made by the Holder, shall be for reference only and may not be relied upon by any other person as being in a way determinative of the principal amount of the Bond outstand' g, unless the Bond Registrar has signed the appropriate column of the panel. Otherwise, the Holder may surrender this �nd to the Bond Registrar (with, if the Issuer or Bond R istrar so requires, a written instrument of transfer in form atisfactory to the Issuer and Bond Registrar duly executed by t Holder thereof or his, her or its attorney duly authorized ' writing) and the Issuer shall execute (if necessary) and th Bond Registrar sha11 authenticate and deliver to the Ho der of such Bond, without service charge, a new Bond of th same series having the same stated maturity and interest ra and of the authorized denomination in aggregate prin ipal amount equal to and in exchange for the unredeemed p rtion of the principal of the Bond so surrendered. Issuance• Pu o: General Oblicration. This Bond is one of an issue in the t tal principal amount of $4,700,000, all of like date of origina issue and tenor, except as to number, maturity, interest rat , denomination, and redemption privilege, which Bond has been ' sued pursuant to and in full conformity with the Constituti and laws of the State of Minnesota, including particul rly Minnesota Statutes, Chapter 475 and Sections 116.19 a d 115.46, and the Charter of the Issuer, and pursuant to a r olution adopted by the City Council of the Issuer on Apri 1, 1998 (the "Resolution"), for the purpose of providing mon to finance the acquisition, construction and repair of va ious improvements to the City's wastewater and storm water syste s. This Bond is payable out of the General Obligation Bond Debt Service Account of the Sewer Service Enterpris Fund of the City, to which account have been pledged gross r enues of the City's sewer system. This Bond has been issued o aid in financing a sewage disposal system or part there f pursuant to Minnesota Statutes, Section 115.46. This Bond constitutes a general obligation of the Issuer, and to pro ide moneys for the prompt and full payment of its principal, p mium, if any, and interest when the same become due, the fu11 ith and credit and taxing powers of the Issuer have been and are hereby irrevocably pledged. 920703.2 �-3 K� 6 7 8 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 41 42 43 44 45 46 47 48 Denominations: Exchancte; Resolution. The Bonds aofe issuable originally only as Global Certificates in the denomination of the entire principal amount of the issue maturir on a single date, or, if a portion of said principal i prepaid, said principal amount less the prepayment. Global Ce ificates are not exchangeable for fully registered bonds of s aller denominations except to evidence a partial prepaym t or in exchange for Replacement Bonds if then available. Replacement Bonds, if made available as provided below, are 'ssuable solely as fully registered bonds in the denominations f$5,000 and integral multiples thereof of a single maturi and are exchangeable for fu11y registered Bonds of o er authorized denominations in equal aggregate principal mounts at the principal office of the Bond Registrar, b only in the manner and subject to the limitations provided ' the Resolution. Reference is hereby made to the Resolut' n for a description of the rights and duties of the Bond Regi rar. Copies of the Resolution are on file in the princip 1 office of the Bond Registrar. Replacement Bonds. the Issuer in the event that: (a) the Depository services for the Bonds, locate a substitute dep following the resigna o eligibility, or (b) upon a discretion that system described issuance of cer� any Holder o adversely af the Bonds, o beneficial� certificat d �t (2) Bonds may be issued by a11 resign or discontinue its nd only if the Issuer is unable to sitory within two (2) months n or determination of non- d�termination by the Issuer in its sole �} the continuation of the book-entry in the Resolution, which precludes the ficates (other than Global Certificates) to than the Depository (or its nominee), might the interest of the beneficial owners of that it is in the best interest of the of the Bonds that they be able to obtain bonds. Tr s er. This Bond sha11 be registered in the name of the payee o the books of the Issuer by presenting this Bond for registrati to the Bond Registrax, who will endorse his, her or its name d note the date of registration opposite the name of the paye in the certificate of registration attached hereto. Thereaf r this Bond may be transferred by delivery with an assign nt duly executed by the Holder or his, her or its legal repres ntatives, and the Issuer and Bond Registrar may treat the Holde as the person exclusively entitled to exercise all the rig s and powers of an owner until this Bond is presented with suc assignment for registration of transfer, accompanied by as urance of the nature provided by law that the assignment is g nuine and effective, and until such transfer is registered on '703 . 2 14 �I�-ay said books and noted hereon by the Bond Registrar, all subje t to the terms and conditions provided in the Resolution and to reasonable regulations of the Issuer contained in any agr ement with, or notice to, the Bond Registrar. Transfer of this Bond may, at the direction and expense o£ the Issuer, be su ect to certain other restrictions if required to qualify thi Bond as being "in registered form" within the meaning of Sec ion 149(a) of the federal Internal Revenue Code of 1986, as a�ended. 9 Fees u�on Transfer or Loss. The Bond F�egistrar may 10 require payment of a sum sufficient to cover a tax or other 11 governmental charge payable in connection wit the transfer or 12 exchange of this Bond and any legal or unusu costs regarding 13 transfers and lost Bonds. 14 Treatment of Registered Owner. The Issuer and Bond 15 Registrar may treat the person in whose ame this Bond is 16 registered as the owner hereof for the purpose of receiving 17 payment as herein provided (except as otherwise provided with 18 respect to the Record Date) and for 11 other purposes, whether 19 or not this Bond shall be overdue, nd neither the Issuer nor the 20 Bond Registrar shall be affected notice to the contrary. 21 Authentication. This 22 obligatory for any purpose o� 23 the Certificate of Authentica i 24 by the Bond Registrar. 25 Not Oualltie� 26 not been designated by 27 obligations" for purpo, 28 Internal Revenue Code � 29 qualify for such desic� ond shall not be valid or become entitled to any security unless hereon shall have been executed The Bonds have � Issuer as "qualified tax-exempt of Section 265(b)(3) of the federal 1986, as amended. The Bonds do not ion. 15 q �'� � ON REVERSE OF BOND 2 Date of Pavment Not Business Dav. If the date fo 3 payment of the principal of, premium, if any, or interest n this 4 Bond shall be a Saturday, Sunday, legal holiday or a day on which 5 banking institutions in the City of New York, New York,- or the 6 city where the principal office of the Bond Registrar s located 7 are authorized by law or executive order to close, t en the date 8 for such payment shall be the next succeeding day ich is not a 9 Saturday, Sunday, legal holiday or a day on which such banking 10 institutions are authorized to close, and payme on such date 11 shall have the same force and effect as if mad on the nominal 12 date of payment. 13 RedemDtion. All Bonds of this i ue (the "Bonds") 14 maturing after December 1, 2006, are subj ct to redemption and 15 prepayment at the option of the Issuer o such date and on any 16 day thereafter at a price of par plus crued interest. 17 Redemption may be in whole or in part of the Bonds subject to 18 prepayment. If redemption is in par , those Bonds remaining 19 unpaid may be prepaid in such order of maturity and in such 20 amount per maturity as the City s 11 determine; and if only part 21 of the Bonds having a common mat ity date are called for 22 prepayment, the specific Bonds o be grepaid sha11 be chosen by 23 lot by the Bond Registrar. Bo ds or portions thereof called for 24 redemption shall be due and p yable on the redemption date, and 25 interest thereon shall ceas to accrue from and after the 26 redemption date. 27 28 29 30 31 32 33 34 shall be given to the and to each affected the Bonds are called be given by first c a days prior to the ed redeemed. In co ect tion. Mailed notice of redemption ying agent (if other than a City officer) der of the Bonds. In the event any of redemption, written notice thereof will mail mailed not less than thirty (30) tion date to each Holder of Bonds to be with any such notice, the "CUSIP" Bonds shall be used. 35 36 37 38 39 40 41 42 43 44 45 46 47 or numbers assiane to the Sel ction of Bonds for Redem tion. To effect a partial redemption o Bonds having a common maturity date, the Bond Registrar s all assign to each Bond having a common maturity date a distinct've number for each $5,000 of the principal amount of such Bon . The Bond Registrar shall then selecC by lot, using such me od of selection as it shall deem proper in its discre on, from the numbers assigned to the Bonds, as many numbe as, at $5,000 for each number, shall equal the principal amou of such Bonds to be redeemed. The Bonds to be redeemed sha be the Bonds to which were assigned numbers so selected; pr vided, however, that only so much of the principal amount of s ch Bond of a denomination of more than $5,000 shall be redeemed s shall equal $5,000 for each number assigned to it and so 920703.2 � q�-a��� 1 2 3 4 5 6 7 8 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 41 42 43 44 45 46 47 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 i writing) and the Issuer shall execute (if necessary) and the on Registrar shall authenticate and deliver to the Holder of s ch Bond, without service charge, a new Bond or Bonds of the me series having the same stated maturity and interest rate and of any auChorized denomination or denominations, as reque ed by such Holder, in aggregate principal amount equal to a d in exchange for the unredeemed portion of the principa of the Bond so surrendered. Issuance• Pu ose• General Obli ation This Bond is one of an issue in the total principal amount f$4,700,000, all of like date of original issue and tenor, ex pt as to number, maturity, interest rate, denomination, and edemption privilege, which Bond has been issued pursuant to an in full conformity with the Constitution and laws of the St e of Minnesota, including particularly Minnesota Statut s, Chapter 475 and Sections 116.19 and 115.46, and the C rter of the Issuer, and pursuant Co a resolution adopted by e City Council of the Issuer on April 1, 1998 (the "Resol tion"), for the purpose of providing money to finance the ac isition, construction and repair of various improvements t the City's wastewater and storm water systems. This Bond is pa able out the General Obligation Bond Debt Service Account of e Sewer Service Enterprise Fund of the City, to which account h e been pledged gross revenues of the City's sewer system. T is Bond has been issued to aid in financing a sewage dispos system or part thereof pursuant to Minnesota Statutes, Sect'on 115.46. This Bond constitutes a general obligation of t e Issuer, and to provide moneys for the prompt and full payme of its principal, premium, if any, and interest when the sa e become due, the full faith and credit and taxing powers of th Issuer have been and are hereby irrevocably pledged. issuable s $5,000 and are exchan pri and the�hts Reso tion Req�strar. 920703.2 Denom'natio s• Exchan e• Resolution. The Bonds are olel as fully registered bonds in the denominations of i egral multiples thereof of a single maturity and g ble for fully registered Bonds of other authorized s in equal aggregate principal amounts at the office of the Bond Registrar, but only in the manner t to the limitations provided in the Resolution. is hereby made to the Resolution for a description of and duties of the Bond Registrar. Copies of the are on file in the principal office of the Bond 27 q�-�.y� 4 5 6 10 11 12 13 14 Transfer. This Bond is transferable by the Holder in person or by his, her or its attorney duly authorized in writing at the principal office of the Bond Registrar upon presentation and surrender hereof to the Bond Registrar, all subject to the terms and conditions provided in the Resolution and to reasona`�le regulations of the Issuer contained in any agreement with, o notice to, the Sond Registrar. Thereupon the Issuer shall execute and the Bond Registrar sha11 authenticate and del' er, in exchange for this Bond, one or more new fully registered�Bonds in the name of the transferee (but not registered in blanlv` to "bearer" or similar designation), of an authorized de omination or denominations, in aggregate principal amount equa to the principal amount of this Bond, of the same maturity and bearing interest at the same rate. 15 Fees u�on Transfer or Loss. The Bon Registrar may 16 require payment of a sum sufficient to cover y tax or other 17 governmental charge payable in connection wi the transfer or 18 exchange of this Bond and any legal or unus al costs regarding 19 transfers and lost Bonds. 20 21 22 23 24 25 26 27 Registrar may treat the person in registered as the owner hereof for payment as herein provided {except reverse side hereof with respect t other purposes, whether or not th' neither the Issuer nor the Bond� notice to the contrary. ner � The Issuer and Bond os� name this Bond is � purpose of receiving otherwise provided on the the Record Date) and for all Bond shall be overdue, and strar shall be affected by 28 Authentication. T s Bond shall not be valid or become 29 obligatory for any purpose r be entitled to any security unless 30 the Certificate o£ Authent'cation hereon shall have been executed 31 by the Bond Registrar. 32 Not ua ifie Tax- x m t O li ations. The Bonds have 33 not been designated b the Issuer as qualified tax-exempt 34 obligations" for pur oses of Section 265(b)(3) of the federal 35 Internal Revenue Co e of 1986, as amended. The Bonds do not 36 qualify for such signation. m qY-a�� fiXHIBITS Exhibit A - Proposals 920703.2