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HomeMy WebLinkAbout2007-09-17-Resolutions 07-191_Bonds - GO Series 2007A - IssuanceRESOLUTION 07-191 ]RESOLUTION AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF $6,650,000 GENERAL OBLIGATION BONDS,SERIES 2007 A (URBAN RENEWAL)AND LEVYING A TAX TO PAY THE BONDS WHEREAS,the Issuer is duly incorporated,organized and exists under and by virtue of the laws and Constitution of the State ofIowa;and WHEREAS,the Issuer is in need of funds to pay costs of aiding in the planning, undertaking and carrying out of urban renewal projects under the authority ofIowa Code Chapter 403,including the construction,reconstruction and repairing of street improvements,storm sewer improvements,sidewalk improvements,landscaping improvements,installation of street lighting and traffic signals,bike trail improvements and pedestrian underpass improvements,and acquisition of land within the Waukee Urban Renewal Area,essential corporate purposes,and it is deemed necessary and advisable that General Obligation Bonds,Series 2007 A (Urban Renewal)in the amount of $6,650,000 be issued for that purpose;and WHEREAS,pursuant to notice published as required by Sections 403.12, 384.24(3)(q),384.25 and 384.26 of said Code,the Council of the City has held public meeting and hearing upon the proposal to institute proceedings for the issuance of notes for essential corporate purposes in the amounts as above set forth,and,no petition for referendum having been received,the Council is therefore now authorized to proceed with the issuance thereof;and WHEREAS,pursuant to the provisions of Chapter 75 of the Code ofIowa,the above mentioned bonds were heretofore sold at public sale and action should now be taken to issue bonds conforming to the terms and conditions of the best bid received at the advertised public sale: NOW,THEREFORE,BE IT RESOLVED BY THE COUNCIL OF THE CITY OF WAUKEE,IOWA: Section 1.Definitions.The following terms shall have the following meanings in this Resolution unless the text expressly or by necessary implication requires otherwise: D "Authorized Denominations"shall mean $5,000 or any integral multiple thereof.I -1- D "Beneficial Owner"shall mean the person in whose name such Bond is recorded as the beneficial owner of a Bond by a Participant on the records of such Participant or such person's subrogee. D "Bond Fund"shall mean the fund created in Section 3 of this Resolution. D "Bonds"shall mean $6,650,000 General Obligation Bonds,Series 2007A (Urban Renewal)authorized to be issued by this Resolution. D "Cede &Co."shall mean Cede &Co.,the nominee ofDTC,and any successor nominee ofDTC with respect to the Bonds. D "Continuing Disclosure Certificate"shall mean that certain Continuing Disclosure Certificate executed by the Issuer and dated the date of issuance and delivery of the Bonds,as originally executed and as it may be amended from time to time in accordance with the terms thereof. D "Depository Bonds"shall mean the Bonds as issued in the form of one global certificate for each maturity,registered in the Registration Books maintained by the Registrar in the name ofDTC or its nominee. D "DTC"shall mean The Depository Trust Company,New York,New York, a limited purpose trust company,or any successor book-entry securities depository appointed for the Bonds. D "Issuer"and "City"shall mean the City of Waukee,Iowa. D "MEIA Insurance Corporation"shall mean the insurer for this issue. D "Participants"shall mean those broker-dealers,banks and other financial institutions for which DTC holds Bonds as securities depository. D "Paying Agent"shall mean Bankers Trust Company,N.A.,or such successor as may be approved by Issuer as provided herein and who shall carry out the duties prescribed herein as Issuer's agent to provide for the payment of principal of and interest on the Bonds as the same shall become due. D "Project Fund"shall mean the fund required to be established by this Resolution for the deposit of the proceeds ofthe Bonds. D "Rebate Fund"shall mean the fund so defined in and established pursuant to the Tax Exemption Certificate. -2- o "Registrar"shall mean Bankers Trust Company,N.A.of Des Moines,Iowa, or such successor as may be approved by Issuer as provided herein and who shall carry out the duties prescribed herein with respect to maintaining a register of the owners of the Bonds.Unless otherwise specified,the Registrar shall also act as Transfer Agent for the Bonds. o "Representation Letter"shall mean the Blanket Issuer Letter of Representations executed and delivered by the Issuer to DTC. o "Resolution"shall mean this resolution authorizing the Bonds. o "Tax Exemption Certificate"shall mean the Tax Exemption Certificate executed by the Treasurer and delivered at the time of issuance and delivery of the Bonds. o "Treasurer"shall mean the City Treasurer or such other officer as shall succeed to the same duties and responsibilities with respect to the recording and payment of the Bonds issued hereunder. Section 2.Levy and Certification of Annual Tax;Other Funds to be Used. (a)Levy of Annual Tax.That for the purpose of providing funds to pay the principal and interest of the Bonds hereinafter authorized to be issued,there is hereby levied for each future year the following direct annual tax on all of the taxable property in Waukee,Iowa,to-wit: -3- .._-_._-------------------------- AMOUNT FISCAL YEAR (JULY 1 TO JUNE 30) YEAR OF COLLECTION: $371,826* $464,781 $466,581 $617,981 $677,981 $679,981 $731,181 $739,581 $741,781 $742,981 $753,181 $756,981 $759,581 $370,088 2007/2008 2008/2009 2009/2010 201012011 201112012 2012/2013 201312014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 *Cash on hand (NOTE:For example the levy to be made and certified against the taxable valuations of January 1,2007,will be collected during the fiscal year commencing July 1,2008). (b)Resolution to be Filed With County Auditor.A certified copy of this Resolution should be filed with the County Auditor of Dallas County,Iowa,and the Auditor is hereby instructed in and for each of the years as provided,to levy and assess the tax hereby authorized in Section 2 of this Resolution,in like mauner as other taxes are levied and assessed,and such taxes so levied in and for each of the years aforesaid be collected in like manner as other taxes of the City are collected,and when collected be used for the purpose of paying principal and interest on the Bonds issued in anticipation of the tax,and for no other purpose whatsoever. (c)Additional City Funds Available.Principal and interest coming due at any time when the proceeds of the tax on hand shall be insufficient to pay the same shall be promptly paid when due from current funds of the City available for that purpose and reimbursement shall be made from such special fund in the amounts thus advanced. Section 3.Bond Fund.The tax shall be collected each year at the same time and in the same manner as,and in addition to,all other taxes in and for the City,and when -4- collected they shall be converted into a special fund within the Debt Service Fund to be known as the "GENERAL OBLIGATION BOND FUND 2007 NO.ONE"(the "Bond Fund"),which is hereby pledged for and shall be used only for the payment of the principal of and interest on the Bonds hereinafter authorized to be issued;and also there shall be apportioned to the fund its proportion of taxes received by the City from property that is centrally assessed by the State ofIowa. Section 4.Application of Bond Proceeds.Proceeds of the Bonds other than accrued interest except as may be provided below shall be credited to the Project Fund and expended therefrom for the purposes of issuance.Any amounts on hand in the Project Fund shall be available for the payment of the principal of or interest on the Bonds at any time that other funds shall be insufficient to the purpose,in which event such funds shall be repaid to the Project Fund at the earliest opportunity.Any balance on hand in the Project Fund and not immediately required for its purposes may be invested not inconsistent with limitations provided by law or this Resolution.Accrued interest,if any,shall be deposited in the Bond Fund. Section 5.Investments of Bond Fund Proceeds.All moneys held in the Bond Fund,provided for by Section 3 of this Resolution shall be invested in investments permitted by Chapter l2B,Code ofIowa,2007 (formerly Chapter 452,Code ofIowa,as amended)or deposited in financial institutions which are members of the Federal Deposit Insurance Corporation and the deposits in which are insured thereby and all such deposits exceeding the maximum amount insured from time to time by FDIC or its equivalent successor in anyone financial institution shall be continuously secured in compliance with the State Sinking Fund provided under Chapter 12C ofthe Code ofIowa,2007,as amended or otherwise by a valid pledge of direct obligations of the United States Government having an equivalent market value.All such interim investments shall mature before the date on which the moneys are required for payment of principal of or interest on the Bonds as herein provided. Section 6.Bond Details,Execution and Redemption. (a)Bond Details.General Obligation Bonds,Series 2007 A (Urban Renewal)of the City in the amount of $6,650,000,shall be issued pursuant to the provisions of Sections 384.24(3)(q),384.25 and 403.12 of the City Code ofIowa for the aforesaid purpose.The Bonds shall be designated "GENERAL OBLIGATION BOND",be dated October 10,2007,and bear interest from the date thereof,until payment thereof,at the office of the Paying Agent,the interest payable on June 1,2008,and semiannually thereafter on the 1st day of June and December in each year until maturity at the rates hereinafter provided. -5- The Bonds shall be executed by the manual or facsimile signature of the Mayor and attested by the manual or facsimile signature of the Clerk,and impressed or printed with the seal of the City and shall be fully registered as to both principal and interest as provided in this Resolution;principal,interest and premium,if any,shall be payable at the office of the Paying Agent by mailing of a check to the registered owner of the Bond. The Bonds shall be in the denomination of $5,000 or multiples thereof.The Bonds shall mature and bear interest as follows: Interest Principal Maturity Rate Amount June 1st 4.000%$200,000 2008 4.000%$205,000 2009 4.000%$215,000 2010 4.000%$375,000 2011 4.000%$450,000 2012 4.000%$470,000 2013 4.000%$540,000 2014 4.000%$570,000 2015 4.000%$595,000 2016 4.000%$620,000 2017 4.000%$655,000 2018 4.000%$685,000 2019 4.125%$715,000 2020 4.250%$355,000 2021 (b)Redemption.Bonds maturing after June 1,2014,may be called for redemption by the Issuer and paid before maturity on such date or any date thereafter, from any funds regardless of source,in whole or from time to time in part,in any order of maturity and within an annual maturity by lot.The terms of redemption shall be par,plus accrued interest to date of call. Thirty days'notice of redemption shall be given by ordinary mail to the registered owner of the Bond.Failure to give such notice by mail to any registered owner of the Bonds or any defect therein shall not affect the validity of any proceedings for the redemption of the Bonds.All bonds or portions thereof called for redemption will cease to bear interest after the specified redemption date,provided funds for their redemption are on deposit at the place of payment. If selection by lot within a maturity is required,the Registrar shall designate the bonds to be redeemed by random selection of the names of the registered owners of the entire annual maturity until the total amount of bonds to be called has been reached. -6- Section 7.Issuance of Bonds in Book-Entry Form;Replacement Bonds. (a)Notwithstanding the other provisions of this Resolution regarding registration,ownership,transfer,payment and exchange of the Bonds,unless the Issuer determines to permit the exchange of Depository Bonds for Bonds in the Authorized Denominations,the Bonds shall be issued as Depository Bonds in denominations of the entire principal amount of each maturity of Bonds (or,if a portion of the principal amount is prepaid,the principal amount less the prepaid amount);and such Depository Bonds shall be registered in the name of Cede &Co.,as nominee ofDTC.Payment of semi- annual interest for any Depository Bond shall be made by wire transfer or New York Clearing House or equivalent next day funds to the account of Cede &Co.on the interest payment date for the Bonds at the address indicated in or pursuant to the Representation Letter. (b)With respect to Depository Bonds,neither the Issuer nor the Paying Agent shall have any responsibility or obligation to any Participant or to any Beneficial Owner. Without limiting the immediately preceding sentence,neither the Issuer nor the Paying Agent shall have any responsibility or obligation with respect to (i)the accuracy of the records ofDTC or its nominee or of any Participant with respect to any ownership interest in the Bonds,(ii)the delivery to any Participant,any Beneficial Owner or any other person,other than DTC or its nominee,of any notice with respect to the Bonds, (iii)the payment to any Participant,any Beneficial Owner or any other person,other than DTC or its nominee,of any amount with respect to the principal of,premium,if any,or interest on the Bonds,or (iv)the failure ofDTC to provide any information or notification on behalf of any Participant or Beneficial Owner. The Issuer and the Paying Agent may treat DTC or its nominee as,and deem DTC or its nominee to be,the absolute owner of each Bond for the purpose of payment of the principal of,premium,if any,and interest on such Bond,for the purpose of all other matters with respect to such Bond,for the purpose of registering transfers with respect to such Bonds,and for all other purposes whatsoever (except for the giving of certain Bondholder consents,in accordance with the practices and procedures ofDTC as may be applicable thereto).The Paying Agent shall pay all principal of,premium,if any,and interest on the Bonds only to or upon the order of the Bondholders as shown on the Registration Books,and all such payments shall be valid and effective to fully satisfy and discharge the Issuer's obligations with respect to the principal of,premium,if any,and interest on the Bonds to the extent so paid.Notwithstanding the provisions of this Resolution to the contrary (including without limitation those provisions relating to the surrender of Bonds,registration thereof,and issuance in Authorized Denominations),as long as the Bonds are Depository Bonds,full effect shall be given to the Representation -7- Letter and the procedures and practices ofDTC thereunder,and the Paying Agent shall comply therewith. (c)Upon (i)a determination by the Issuer that DTC is no longer able to carry out its functions or is otherwise determined unsatisfactory,or (ii)a determination by DTC that the Bonds are no longer eligible for its depository services or (iii)a determination by the Paying Agent that DTC has resigned or discontinued its services for the Bonds,if such substitution is authorized by law,the Issuer shall (A)designate a satisfactory substitute depository as set forth below or,if a satisfactory substitute is not found, (B)provide for the exchange of Depository Bonds for replacement Bonds in Authorized Denominations. (d)To the extent authorized by law,if the Issuer determines to provide for the exchange of Depository Bonds for Bonds in Authorized Denominations,the Issuer shall so notify the Paying Agent and shall provide the Registrar with a supply of executed unauthenticated Bonds to be so exchanged.The Registrar shall thereupon notify the owners of the Bonds and provide for such exchange,and to the extent that the Beneficial Owners are designated as the transferee by the owners,the Bonds will be delivered in appropriate form,content and Authorized Denominations to the Beneficial Owners,as their interests appear. (e)Any substitute depository shall be designated in writing by the Issuer to the Paying Agent.Any such substitute depository shall be a qualified and registered "clearing agency"as provided in Section 17A of the Securities Exchange Act of 1934,as amended.The substitute depository shall provide for (i)immobilization of the Depository Bonds,(ii)registration and transfer of interests in Depository Bonds by book entries made on records of the depository or its nominee and (iii)payment of principal of, premium,if any,and interest on the Bonds in accordance with and as such interests may appear with respect to such book entries. (f)The execution and delivery of the Representation Letter to DTC by the Issuer,in the form presented at this meeting with such changes,omissions,insertions and revisions as the Mayor shall deem advisable is hereby authorized and execution of the Representation Letter by the Mayor shall be conclusive evidence of such approval.The Representation Letter shall set forth certain matters with respect to,among other things, notices,consents and approvals by Bondholders and payments on the Bonds. Section 8.Registration of Bonds;Appointment of Registrar;Transfer;Ownership; Delivery;and Cancellation. (a)Registration.The ownership of Bonds may be transferred only by the making of an entry upon the books kept for the registration and transfer of ownership of the -8- Bonds,and in no other way.Bankers Trust Company,N.A.is hereby appointed as Bond Registrar under the terms of this Resolution (and under the provisions ofa separate agreement with the Issuer filed herewith which is made a part hereofby this reference.) Registrar shall maintain the books of the Issuer for the registration of ownership of the Bonds for the payment of principal of and interest on the Bonds as provided in this Resolution.All Bonds shall be negotiable as provided in Article 8 of the Uniform Commercial Code and Section 384.31 of the Code ofIowa,subject to the provisions for registration and transfer contained in the Bonds and in this Resolution. (b)Transfer.The ownership of any Bond may be transferred only upon the Registration Books kept for the registration and transfer of Bonds and only upon surrender thereof at the office of the Registrar together with an assignment duly executed by the holder or his duly authorized attorney in fact in such form as shall be satisfactory to the Registrar,along with the address and social security number or federal employer identification number of such transferee (or,if registration is to be made in the name of multiple individuals,of all such transferees).In the event that the address of the registered owner of a Bond (other than a registered owner which is the nominee of the broker or dealer in question)is that of a broker or dealer,there must be disclosed on the Registration Books the information pertaining to the registered owner required above. Upon the transfer of any such Bond,a new fully registered Bond,of any denomination or denominations permitted by this Resolution in aggregate principal amount equal to the umnatured and unredeemed principal amount of such transferred fully registered Bond, and bearing interest at the same rate and maturing on the same date or dates shall be delivered by the Registrar. (c)Registration of Transferred Bonds.In all cases of the transfer of the Bonds, the Registrar shall register,at the earliest practicable time,on the Registration Books,the Bonds,in accordance with the provisions of this Resolution. (d)Ownership.As to any Bond,the person in whose name the ownership of the same shall be registered on the Registration Books of the Registrar shall be deemed and regarded as the absolute owner thereof for all purposes,and payment of or on account of the principal of any such Bonds and the premium,if any,and interest thereon shall be made only to or upon the order of the registered owner thereof or his legal representative. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond,including the interest thereon,to the extent of the sum or sums so paid. (e)Cancellation.All Bonds which have been redeemed shall not be reissued but shall be cancelled by the Registrar.All Bonds which are cancelled by the Registrar shall be destroyed and a certificate of the destruction thereof shall be furnished promptly to the Issuer;provided that if the Issuer shall so direct,the Registrar shall forward the cancelled Bonds to the Issuer. -9- (f)Non-Presentment of Bonds.In the event any payment check representing payment of principal of or interest on the Bonds is retumed to the Paying Agent or if any bond is not presented for payment of principal at the maturity or redemption date,if funds sufficient to pay such principal of or interest on Bonds shall have been made available to the Paying Agent for the benefit ofthe owner thereof,all liability of the Issuer to the owner thereof for such interest or payment of such Bonds shall forthwith cease,terminate and be completely discharged,and thereupon it shall be the duty of the Paying Agent to hold such funds,without liability for interest thereon,for the benefit of the owner of such Bonds who shall thereafter be restricted exclusively to such funds for any claim of whatever nature on his part under this Resolution or on,or with respect to,such interest or Bonds.The Paying Agent's obligation to hold such funds shall continue for a period equal to two years and six months following the date on which such interest or principal became due,whether at maturity,or at the date fixed for redemption thereof,or otherwise,at which time the Paying Agent,shall surrender any remaining funds so held to the Issuer,whereupon any claim under this Resolution by the Owners of such interest or Bonds of whatever nature shall be made upon the Issuer. (g)Registration and Transfer Fees.The Registrar may fumish to each owner,at the Issuer's expense,one bond for each annual maturity.The Registrar shall furnish additional bonds in lesser denominations (but not less than the minimum denomination) to an owner who so requests. Section 9.Reissuance of Mutilated,Destroyed,Stolen or Lost Bonds.In case any outstanding Bond shall become mutilated or be destroyed,stolen or lost,the Issuer shall at the request of Registrar authenticate and deliver a new Bond oflike tenor and amount as the Bond so mutilated,destroyed,stolen or lost,in exchange and substitution for such mutilated Bond to Registrar,upon surrender of such mutilated Bond,or in lieu of and substitution for the Bond destroyed,stolen or lost,upon filing with the Registrar evidence satisfactory to the Registrar and Issuer that such Bond has been destroyed,stolen or lost and proof of ownership thereof,and upon furnishing the Registrar and Issuer with satisfactory indemnity and complying with such other reasonable regulations as the Issuer or its agent may prescribe and paying such expenses as the Issuer may incur in connection therewith. Section 10.Record Date.Payments of principal and interest,otherwise than upon full redemption,made in respect of any Bond,shall be made to the registered holder thereof or to their designated agent as the same appear on the books of the Registrar on the 15th day preceding the payment date.All such payments shall fully discharge the obligations of the Issuer in respect of such Bonds to the extent of the payments so made. Payment of principal shall only be made upon surrender of the Bond to the Paying Agent. -10- Section 11.Execution,Authentication and Delivery of the Bonds.Upon the adoption of this Resolution,the Mayor and Clerk shall execute and deliver the Bonds to the Registrar,who shall authenticate the Bonds and deliver the same to or upon order of the Purchaser.No Bond shall be valid or obligatory for any purpose or shall be entitled to any right or benefit hereunder unless the Registrar shall duly endorse and execute on such Bond a Certificate of Authentication substantially in the form of the Certificate herein set forth.Such Certificate upon any Bond executed on behalf of the Issuer shall be conclusive evidence that the Bond so authenticated has been duly issued under this Resolution and that the holder thereof is entitled to the benefits of this Resolution. No Bonds shall be authenticated and delivered by the Registrar unless and until there shall have been provided the following: 1.A certified copy of the Resolution ofIssuer authorizing the issuance of the Bonds; 2.A written order ofIssuer signed by the Finance Director of the Issuer directing the authentication and delivery of the Bonds to or upon the order of the Purchaser upon payment of the purchase price as set forth therein; 3.The approving opinion of Ahlers &Cooney,P.C.,Bond Counsel, concerning the validity and legality of all the Bonds proposed to be issued. Section 12.Right to Name Substitute Paying Agent or Registrar.Issuer reserves the right to name a substitute,successor Registrar or Paying Agent upon giving prompt written notice to each registered bondholder. -11- Section 13.Form of Bond.Bonds shall be printed in substantial compliance with standards proposed by the American Standards Institute substantially in the form as follows: (6)(6) (7)(8) (1) (2)(3)(4)(5) (9) (9a) (10) (Continued on the back of this Bond) (11)(12)(13)(14)(15) FIGURE 1 (Front) -12- (10)(16) (Continued) FIGURE 2 (Back)I-13- The text of the Bonds to be located thereon at the item numbers shown shall be as follows: Item 1,figure 1 "STATE OF IOWA" "COUNTY OF DALLAS" "CITY OF WAUKEE" "GENERAL OBLIGATION BOND,SERIES 2007A, (URBAN RENEWAL)" Item 2,figure 1 Rate: Item 3,figure 1 =Maturity: Item 4,figure 1 =Bond Date:October 10,2007 Item 5,figure 1 =CusipNo.: Item 6,figure 1 ="Registered" Item 7,figure 1 =Certificate No. Item 8,figure 1 Principal Amount:$ Item 9,figure 1 =The City of Waukee,Iowa,a municipal corporation organized and existing under and by virtue of the Constitution and laws of the State ofIowa (the "Issuer"),for value received,promises to pay from the source and as hereinafter provided,on the maturity date indicated above,to Item 9A,figure 1 =(Registration panel to be completed by Registrar or Printer with name of Registered Owner). Item 10,figure 1 =or registered assigns,the principal sum of (Principal amount written out)THOUSAND DOLLARS in lawful money ofthe United States of America, on the maturity date shown above,only upon presentation and surrender hereof at the office of Bankers Trust Company,N.A.,Paying Agent of this issue,or its successor,with interest on the sum from the date hereof until paid at the rate per annum specified above, payable on June 1,2008,and semiannually thereafter on the l st day of June and December in each year. Interest and principal shall be paid to the registered holder of the Bond as shown on the records of ownership maintained by the Registrar as of the 15th day preceding such interest payment date.Interest shall be computed on the basis of a 360-day year of twelve 30-day months. This Bond is issued pursuant to the provisions of Sections 384.24(3)(q),384.25 and 403.12 of the City Code of Iowa,for the purpose of paying costs of aiding in the planning,undertaking and carrying out of urban renewal projects under the authority of -14- Iowa Code Chapter 403,including the construction,reconstruction and repairing of street improvements,storm sewer improvements,sidewalk improvements,landscaping improvements,installation of street lighting and traffic signals,bike trail improvements and pedestrian underpass improvements,and acquisition ofland within the Waukee Urban Renewal Area,in conformity to a Resolution of the Council of the City duly passed and approved. Unless this certificate is presented by an authorized representative of The Depository Trust Company,a limited purpose trust company ("DTC"),to the Issuer or its agent for registration of transfer,exchange or payment,and any certificate issued is registered in the name of Cede &Co.or such other name as requested by an authorized representative of DTC (and any payment is made to Cede &Co.or to such other entity as is requested by an authorized representative ofDTC),ANY TRANSFER,PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof,Cede &Co.,has an interest herein. Bonds maturing after June 1,2014,may be called for redemption by the Issuer and paid before maturity on that date or any date thereafter,from any funds regardless of source,in whole or from time to time in part,in any order of maturity and within an annual maturity by lot.The terms of redemption shall be par,plus accrued interest to date 0 f call. Thirty days'notice of redemption shall be given by ordinary mail to the registered owner of the Bond.Failure to give such notice by mail to any registered owner of the Bonds or any defect therein shall not affect the validity of any proceedings for the redemption of the Bonds.All bonds or portions thereof called for redemption will cease to bear interest after the specified redemption date,provided funds for their redemption are on deposit at the place of payment. If selection by lot within a maturity is required,the Registrar shall designate the bonds to be redeemed by random selection of the names of the registered owners ofthe entire aunual maturity until the total amount of bonds to be called has been reached. Ownership of this Bond may be transferred only by transfer upon the books kept for such purpose by Bankers Trust Company,N.A.,the Registrar.Such transfer on the books shall occur only upon presentation and surrender of this Bond at the office of the Registrar as designated below,together with an assignment duly executed by the owner hereof or his duly authorized attorney in the form as shall be satisfactory to the Registrar. Issuer reserves the right to substitute the Registrar and Paying Agent but shall,however, promptly give notice to registered bondholders of such change.All bonds shall be negotiable as provided in Article 8 of the Uniform Commercial Code and Section 384.31 -15-I of the Code ofIowa,subject to the provisions for registration and transfer contained in the Bond Resolution. And it is hereby represented and certified that all acts,conditions and things requisite,according to the laws and Constitution of the State of Iowa,to exist,to be had, to be done,or to be performed precedent to the lawful issue of this Bond,have been existent,had,done and performed as required by law;that provision has been made for the levy of a sufficient continuing annual tax on all the taxable property within the territory of the Issuer for the payment of the principal and interest of this Bond as the same will respectively become due;that the faith,credit,revenues and resources and all the real and personal property of the Issuer are irrevocably pledged for the prompt payment hereof,both principal and interest;and the total indebtedness of the Issuer including this Bond,does not exceed the constitutional or statutory limitations. IN TESTIMONY WHEREOF,the Issuer by its Council,has caused this Bond to be signed by the facsimile signature of its Mayor and attested by the facsimile signature of its City Clerk,with the seal of the City printed hereon,and to be authenticated by the manual signature of an authorized representative of the Registrar,Bankers Trust Company,N.A.,Des Moines,Iowa. Item 11,figure 1 =Date of authentication:__-----=-,-----,-----,-----_---,-----,--_ Item 12,figure 1 =This is one of the Bonds described in the within mentioned Resolution,as registered by Bankers Trust Company,N.A. BANKERS TRUST COMPANY,N.A.,Registrar Des Moines,Iowa 50309 By:---,-------,----_---,----_ Authorized Signature Item 13,figure 1 =Registrar and Transfer Agent: Bankers Trust Company,N.A. Paying Agent:Bankers Trust Company,N.A. SEE REVERSE FOR CERTAIN DEFINITIONS Item 14,figure 1 =(Seal) Item 15,figure 1 =[Signature Block] CITY OF WAUKEE,IOWA -16- By:(facsimile signature) Mayor ATTEST: By:(facsimile signature) City Clerk Item 16,fignre 2 =[Insurance Statement] STATEMENT OF INSURANCE MBIA Insurance Corporation (the "Insurer")has issued a policy containing the following provisions,such policy being on file at Bankers Trust Company,N.A.,Des Moines,Iowa. The Insurer,in consideration of the payment of the premium and subject to the terms of this policy,hereby unconditionally and irrevocably gnarantees to any owner,as hereinafter defmed,of the following described obligations,the full and complete payment required to be made by or on behalf of the Issuer to Bankers Trust Company,N.A.,Des Moines,Iowa,or its successor (the "Paying Agent")of an amount equal to (i)the principal of (either at the stated maturity or by any advancement of maturity pursuant to a mandatory sinking fund payment)and interest on,the Obligations (as that term is defmed below)as such payments shall become due but shall not be so paid (except that in the event of any acceleration of the due date of such principal by reason of mandatory or optional redemption or acceleration resulting from default or otherwise,other than any advancement of maturity pursuant to a mandatory sinking fund payment,the payments gnaranteed hereby shall be made in such amounts and at such times as such payments of principal would have been due had there not been any such acceleration,unless the Insurer elects in its sole discretion,to pay in whole or in part any principal due by reason of such acceleration);and (ii)the reimbursement of any such payment which is subsequently recovered from any owner pursuant to a final judgment by a court of competent jurisdiction that such payment constitutes an avoidable preference to such owner within the meaning of any applicable bankruptcy law.The amounts referred to in clauses (i)and (ii)of the preceding sentence shall be referred to herein collectively as the "Insured Amounts.""Obligations"shall mean: $6,650,000 Waukee,Iowa General Obligation Bonds,Series 2007 A (Urban Renewal) -17- Upon receipt of telephonic or telegraphic notice,such notice subsequently confirmed in writing by registered or certified mail,or upon receipt of written notice by registered or certified mail,by the Insurer from the Paying Agent or any owner of an Obligation the payment of an Insured Amount for which is then due,that such required payment has not been made,the Insurer on the due date of such payment or within one business day after receipt of notice of such nonpayment,whichever is later,will make a deposit of funds,in an account with U.S.Bank Trust National Association,in New York, New York,or its successor,sufficient for the payment of any such Insured Amounts which are then due.Upon presentment and surrender of such Obligations or presentment of such other proof of ownership of the Obligations,together with any appropriate instruments of assignment to evidence the assignment of the Insured Amounts due on the Obligations as are paid by the Insurer,and appropriate instruments to effect the appointment of the Insurer as agent for such owners of the Obligations in any legal proceeding related to payment of Insured Amounts on the Obligations,such instruments being in a form satisfactory to U.S.Bank Trust National Association,U.S.Bank Trust National Association shall disburse to such owners or the Paying Agent payment of the Insured Amounts due on such Obligations,less any amount held by the Paying Agent for the payment of such Insured Amounts and legally available therefor.This policy does not insure against loss of any prepayment premium which may at any time be payable with respect to any Obligation. As used herein,the term "owner"shall mean the registered owner of any Obligation as indicated in the books maintained by the Paying Agent,the Issuer,or any designee of the Issuer for such purpose.The term owner shall not include the Issuer or any party whose agreement with the Issuer constitutes the underlying security for the Obligations. Any service of process on the Insurer may be made to the Insurer at its offices located at 113 King Street,Armonk,New York,10504 and such service of process shall be valid and binding. This policy is non-cancellable for any reason.The preminm on this policy is not refundable for any reason including the payment prior to maturity ofthe Obligations. META INSURANCE CORPORATION [Assignment Block] [Information Required for Registration] -18- ASSIGNMENT For value received,the undersigned hereby sells,assigns and transfers unto ----,----,__--,--------,---,--__(Social Security or Tax Identification No.)the within Bond and does hereby irrevocably constitute and appoint _ attorney in fact to transfer the Bond on the books kept for registration of the within Bond, with full power of substitution in the premises. Dated _ (person(s)executing this Assignment sign(s)here) SIGNATURE) GUARANTEED) IMPORTANT -READ CAREFULLY The signature(s)to this Power must correspond with the name(s)as written upon the face of the certificate(s)or bond(s)in every particular without alteration or enlargement or any change whatever.Signature guarantee must be provided in accordance with the prevailing standards and procedures of the Registrar and Transfer Agent.Such standards and procedures may require signature to be guaranteed by certain eligible guarantor institutions that participate in a recognized signature guarantee program. INFORMATION REQUIRED FOR REGISTRATION OF TRANSFER Name of Transferee(s)_ Address of Transferee(s)_ Social Security or Tax Identification Nnmber of Transferee(s)-----,_ Transferee is a(n): Individual*Corporation _ Partnership Trust _ *Ifthe Bond is to be registered in the names of multiple individual owners,the names of all such owners and one address and social security number must be provided. -19- The following abbreviations,when used in the inscription on the face of this Bond, shall be construed as though written out in full according to applicable laws or regulations: TEN COM -as tenants in common TEN ENT -as tenants by the entireties JT TEN -as joint tenants with right of survivorship and not as tenants in common IA UNIF TRANS MIN ACT -............Custodian . (Cust)(Minor) under Iowa Uniform Transfers to Minors Act... (State) ADDITIONAL ABBREVIATIONS MAY ALSO BE USED THOUGH NOT IN THE ABOVE LIST Section 14.Contract Between Issuer and Purchaser.This Resolution constitutes a contract between the City and the purchaser of the Bonds. Section 15.Non-Arbitrage Covenants.The Issuer reasonably expects and covenants that no use will be made of the proceeds from the issuance and sale of the Bonds issued hereunder which will cause any of the Bonds to be classified as arbitrage bonds within the meaning of Sections 148(a)and (b)of the Internal Revenue Code of the United States,as amended,and that throughout the term of the Bonds it will comply with the requirements of statutes and regulations issued thereunder. -20- To the best knowledge and belief of the Issuer,there are no facts or circumstances that would materially change the foregoing statements or the conclusion that it is not expected that the proceeds of the Bonds will be used in a manner that would cause the Bonds to be arbitrage bonds.Without limiting the generality of the foregoing,the Issuer hereby agrees to comply with the provisions of the Tax Exemption Certificate and the provisions of the Tax Exemption Certificate are hereby incorporated by reference as part of this Resolution.The Treasurer is hereby directed to make and insert all calculations and determinations necessary to complete the Tax Exemption Certificate in all respects and to execute and deliver the Tax Exemption Certificate at issuance of the Bonds to certify as to the reasonable expectations and covenants of the Issuer at that date. Section 16.Severability Clause.If any section,paragraph,clause or provision of this Resolution be held invalid,such invalidity shall not affect any of the remaining provisions hereof,and this Resolution shall become effective immediately upon its passage and approval. Section 17.Continuing Disclosure.The Issuer hereby covenants and agrees that it will comply with and carry out all of the provisions of the Continuing Disclosure Certificate,and the provisions of the Continuing Disclosure Certificate are hereby incorporated by reference as part of this Resolution and made a part hereof. Notwithstanding any other provision of this Resolution,failure of the Issuer to comply with the Continuing Disclosure Certificate shall not be considered an event of default under this Resolution;however,any holder of the Bonds or Beneficial Owner may take such actions as may be necessary and appropriate,including seeking specific performance by court order,to cause the Issuer to comply with its obligations under the Continuing Disclosure Certificate.For purposes of this section,"Beneficial Owner" means any person which (a)has the power,directly or indirectly,to vote or consent with respect to,or to dispose of ownership of,any Bond (including persons holding Bonds through nominees,depositories or other intermediaries),or (b)is treated as the owner of any Bonds for federal income tax purposes. Section 18.Additional Covenants,Representations and Warranties of the Issuer. The Issuer certifies and covenants with the purchasers and holders of the Bonds from time to time outstanding that the Issuer through its officers,(a)will make such further specific covenants,representations and assurances as may be necessary or advisable;(b) comply with all representations,covenants and assurances contained in the Tax Exemption Certificate,which Tax Exemption Certificate shall constitute a part of the contract between the Issuer and the owners of the Bonds;(c)consult with bond counsel (as defined in the Tax Exemption Certificate);(d)pay to the United States,as necessary, such sums of money representing required rebates of excess arbitrage profits relating to the Bonds;(e)file such forms,statements and supporting documents as may be required and in a timely manner;and (f)if deemed necessary or advisable by its officers,to -21- employ and pay fiscal agents,financial advisors,attorneys and other persons to assist the Issuer in such compliance. Section 19.Amendment of Resolution to Maintain Tax Exemption.This Resolution may be amended without the consent of any owner of the Bonds if,in the opinion of bond counsel,such amendment is necessary to maintain tax exemption with respect to the Bonds under applicable Federal law or regulations. Section 20.Repeal of Conflicting Resolutions or Ordinances.That all ordinances and resolutions and parts of ordinances and resolutions in conflict herewith are hereby repealed. -22- PASSED AND APPROVED this 17th day of September,2007.~dl ATTEST: ROLL CALL VOTE Donald L.Bailey,Jr. Isaiah McGee Jeff Mertz Darlene Stanton Mike Watts AYE X X X NAY -23- ABSENT X X