HomeMy WebLinkAboutResolution 2017-045 Refunding of remaining portions of the Tangerine Farms Road Improvement District RESOLUTION NO. 2017-045
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
TOWN OF MARANA, ARIZONA, (1) PROVIDING FOR THE
SALE AND ISSUANCE OF TOWN OF MARANA, ARIZONA
TANGERINE FARMS ROAD IMPROVEMENT DISTRICT
IMPROVEMENT REFUNDING BONDS AND AN APPLICABLE
PAYMENT AMOUNT OF SUPPLEMENTAL INTEREST CERTIFI-
CATES WITH RESPECT THERETO; (2) PRESCRIBING
CERTAIN TERMS .AND CONDITIONS OF THE BONDS, THE
CERTIFICATES AND BONDS TO BE REFUNDED WITH THE
PROCEEDS OF THE SALE THEREOF INCLUDING THE
DELEGATION TO THE MANAGER OF THE TOWN OF MARANA,
ARIZONA, OF THE AUTHORITY TO DESIGNATE THE FINAL
PRINCIPAL AND PAYMENT AMOUNTS, MATURITY AND
PAYMENT DATES, INTEREST RATE AND YIELD AND OTHER
MATTERS WITH RESPECT TO THE BONDS AND THE
CERTIFICATES; (3) MAKING CERTAIN FINDINGS, CER-
TIFICATIONS AND COVENANTS WITH RESPECT TO THE
BONDS; (4) DELEGATING TO SUCH MANAGER THE
AUTHORITY TO ACCEPT A PROPOSAL FOR THE PLACEMENT
OF THE BONDS AND THE CERTIFICATES, APPROVING A
PLACEMENT AGENT AGREEMENT WITH RESPECT TO SUCH
PROPOSAL AND AUTHORIZING THE MAYOR OR VICE MAYOR
OF THE TOWN TO EXECUTE AND DELIVER SUCH
AGREEMENT; (5) RATIFYING ALL ACTIONS TAKEN TO
FURTHER THIS RESOLUTION AND AUTHORIZING THE
TAKING OF ALL OTHER ACTIONS NECESSARY TO THE
CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED BY
THIS RESOLUTION AND (6) DECLARING AN EMERGENCY
WHEREAS, on June 6, 2006, the Mayor and Common Council of
the Town. of Marana, Arizona (the "Town" ) ,, passed and adopted
Resolution No. 2406-75 (the "Resolution of Intention" ) which declared
its intention to provide the "Work" defined in the Resolution of
Intention, determined that improvement bonds be issued and sold to
represent the costs and expenses thereof (the "Bonds to be Refunded" )
and declared the Work to be of more than local or ordinary public
benefit and that the costs and expenses thereof be assessed upon a
certain district, provided that the Work be performed under the
provisions of Title 48, Chapter 4, Article 2 , Arizona Revised
Statutes, the Work, the district assessed (the "District" ) and the
Bonds issued and sold being fully described in the Resolution of
Intention to which reference is hereby made for such descriptions; and
WHEREAS, a copy of the Resolution of Intention was pub-
lished
ubT-
1ished in the Daily Terri poria l, a newspaper generally circulated in
the Town, as required by law; and
WHEREAS, the Superintendent of Streets of the Town (the
"Superintendent of Streets") caused to be posted along the line of the
Work on the streets, alleys and rights-of--way to be improved., at not
more than three hundred (300) feet apart, notices of the passage of
the Resolution of Intention, said notices being headed in letters at
least one (1) inch in height and stating the fact of the passage of
the Resolution of Intention; and
WHEREAS, within the fifteen (15) days since the date of the
last publication of the Resolution of Intention and the completion of
the posting of such notices, one protest against the Work and one
objection to the extent of the District were filed with the Clerk of
the Town during the time prescribed by law; and
WHEREAS, as such, the furnishing of all labor, materials,
transportation, services and equipment for the Work was ordered. by
Resolution No. 2006-108 adopted on July 18, 2006 by the Magor and
Common Council of the Town; and
WHEREAS, upon completion of final plans and specifications
for the Work (including any addendums with respect thereto, the "Final
Plans and Specifications" ) and the filing thereof with the Clerk of
the Town, sealed proposals were received pursuant to an "Advertisement
for Bids and Notice of the Passage of the Resolution ordering .the
Improvement and Inviting Sealed Proposals for the Work. For Town of
Marana, Arizona Tangerine Farms Road Improvement District" (the
"Notice" ) , which was duly published as provided by law, for the Work,;
and
WHEREAS, the proposal of Hunter contracting Co. (the "Con-
tractor" ) was determined to be the lowest and best bid of a
responsible bidder for the kind of material and specifications set
forth in the Final Plans and Specifications at the unit prices named
for the Work in such proposal on file in the Office of the clerk of
the Town, and such proposal in all respects complied with the terms of
the Notice; and
WHEREAS, the total amount bid by the contractor for the
Construction contract was $23 , 459, 459. 00 and the total amount of the
costs (including for the construction contract) and the incidental
expenses, before the addition of capitalized interest, as shown in the
engineer' s official estimate, was $27, 577, 500 . 15; and.
WHEREAS, on October 3 , 2006, the Magor and Council of the
Town passed and adopted Resolution No. 2006-158 (the "Resolution
Awarding contract" ) which awarded the contract for the Work (the
"Construction Contract" ) to the contractor and provided that not more
than $748, 357 . 26 would be contributed by the Town with respect to the
Works and
WHEREAS, MMEA. Psomas, the Engineers for the District,
prepared and presented to the Mayor and Common Council of the Town
duplicate diagrams of the property contained within the District
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showing each separate lot, numbered consecutively, the approximate
areas in square feet of each lot, and the location of the lot in
relation to the Work (the "Diagram") , which were approved by the Mayor
and Common Council of the Town by the Resolution Awarding Contract
along with the method. of Assessment to be applied with respect to the
Diagram (which the Mayor and Common Council of the Town hereby ratify
and confirm, including the fact that the acquisition of certain
property necessary with regard to the Work, the payment of the cost of
certain of the Work on behalf of a property owner from whom certain of
such property was necessary and a portion of the cost of the railroad
underpass are to be assessed directly against property owned by the
Town) ; and.
WHEREAS, the Superintendent of Streets has heretofore
entered into the Construction Contract with the Contractor whereby the
Contractor agreed to construct the Work in accordance with the Final
Plans and Specifications and its proposal; and
WHEREAS, the Superintendent of Streets levied and recorded
an assessment, indicating the several assessments imposed on the lots
or parcels of land benefited by the Work in the District (the
"Assessment") , and the Superintendent of Streets will execute, and the
Mayor of the Town will countersign, a warrant to the Finance Director
of the Town (the "Finance Director" ) to collect the Assessment; and
WHEREAS, the Assessment and such warrant were returned by
the Finance Director as prescribed by law; and
WHEREAS, the certified, list of unpaid amounts with respect
to the Assessment was filed with the Clerk of the Town by the
Superintendent of Streets indicating the amount that is unpaid; and
WHEREAS, the Mayor and Common Council of the Town sold and
issued the Bonds to be Refunded in the aggregate principal amount of
$25, 744, 000, payable from the Assessment and to provide for certain
other matters related thereto; and
WHEREAS, the Work has been done in accordance with the
Plans and Specifications, and the costs of the Work as assessed and
apportioned in the Assessment were in proportion to the benefits
received by the lots and parcels of land upon which imposed; and.
WHEREAS, pursuant to Title 48, Chapter 4, Article 2,
Arizona Revised Statutes (the "Refunding Act") , bonds may be issued
for the purpose of refunding any bonds issued pursuant to the Act, and
WHEREAS, bonds may be issued pursuant to the Refunding Act
only if the total amount of principal of and interest on the refunding
bonds does not exceed the total amount of remaining principal of and
interest on the Bonds to be Refunded; and
WHEREAS, the Superintendent of Streets will file a modified
assessment reflecting the reduction in the Assessment if such circum--
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stances can be met and the Bonds (as such term is hereinafter defined)
are issued (the "Modified Assessment") ; and
WHEREAS, the Mayor and Common Council of the Town have
determined to sell and issue bonds, payable from the Modified
Assessment if the circumstances described above can be met (the
"Bonds") ; and
WHEREAS, the Mayor and Common. Council of the Town have
further determined to sell and issue certain supplemental interest
certificates with respect to the Bonds (the "Certificates" ) ; and
WHEREAS, the Mayor and Common Council of the Town will
receive a proposal from Stifel, Nicolaus & Company, Incorporated (the
"Placement Agent" ) , and has determined that the Bonds should be placed
by the Placement Agent; and
WHEREAS, the proceeds of the Bonds and the Certificates
together with all or a portion of the amounts held in the debt service
fund for payment of principal of and interest on the Bonds to be
Refunded and other amounts lawfully available will be invested
provided such investments and any reinvestment thereof will mature
with interest so as to provide funds to pay the Bonds to be Refunded
when due, or called for redemption, together with interest thereon and
redemption premiums, if any, at maturity or on an available redemption
date, and, for such purpose, such amounts and investments shall be
deposited in trust with a national banking corporation or association
that is authorized to do trust business in this state and that is a
member of the Federal Deposit Insurance Corporation pursuant to a
trust agreement with banking corporations or associations for the
handling, safekeeping and administration of the amounts and
investments that are derived from or contributed to, the refunding;
and
WHEREAS, the Mayor and Common Council of the Town desire to
W authorize the sale and issuance and placement by the Placement
Agent of the Bonds and the Certificates; (ii) delegate to the Manager
of the Town the authority to determine certain of the terms of the
Bonds and the Certificates and various other matters; (iii) prescribe
the form of the Bonds and the Certificates and (iv) ratify and confirm
all prior acts of the Mayor and Common Council of the Town, of the
Clerk of the Town, of the Superintendent of Streets of the Town, and
of the Finance Director of the Town with respect to the District; and
WHEREAS, all things required to be done preliminary to the
authorization and issuance of the Bonds and the Certificates have been
duly done and performed in the manner required by law, and the Mayor
and. Common Council of the Town are now empowered to proceed with the
authorization of the sale and issuance of the Bonds and the Certifi-
cates,
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON
COUNCIL OF THE TOWN OF MAR.ANA, ARIZONA, THAT:
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Section 1 . (A) If the total amount of the principal of and
interest on the Bonds (including the portion of the interest evidenced
by the Certificates) will not exceed the total amount of remaining
principal of and interest on the Bonds to be Refunded, the Bonds, to
be designated 11Town of Marana, Arizona Tangerine Farms Road.
Improvement District Improvement Refunding Bonds, " and the
certificates to be designated as "Supplemental Interest Certificates" ,
are authorized to be placed and issued by the Town pursuant to, and in
accordance with, the provisions of the Refunding Act and this
Resolution to provide funds for the purposes set forth herein, the
interest evidenced by the Bonds as issued being designated as "All
interest and the interest evidenced by the Certificates as issued
being designated as 11B11 interest, all in accordance with this
Resolution and applicable law. (Unless specified or unless the
context otherwise requires, all references herein to "interest on the
Bonds11 shall be deemed to include interest designated as both "All and
"B" interest on the Bonds, the interest designated as "B" interest
being evidenced by the Certificates . )
(B) The Manager of the Town is hereby authorized and
directed to determine on behalf of the Town: (1) the denominations of
the Bonds and the Certificates; (2) the dated date and total principal
and payment amounts of the Bonds and. the Certificates; (3) the final
principal and maturity date and payment and payment date schedules of
the Bonds and the Certificates; (4) the interest rate of the Bonds and
the interest accrual period and approximate yield with respect to the
payment date for the Certificates and the dates for payment of such
interest (the "interest payment dates" ) ; (5) the provisions for
redemption in advance of maturity of the Bonds and the Bonds to be
Refunded; (6) the sales price and sales terms of the Bonds and. the
Certificates (including for original issue discount) and (7) the
provision for credit enhancement, if any, for the Bonds and the
Certificates; provided, however, that such determinations must result
in a net present value savings, net of all cots of issuance, in an
amount of not less than three percent (3 a} of the principal amount of
the Bonds to be Refunded. Notwithstanding any provisions hereof to
the contrary, the Manager of the Town is hereby authorized, if
necessary in connection with the placement of the Bonds on the most
attractive terms, to determine on behalf of the Town serial maturities
for the Bonds and associated principal amounts and rates per annum.
(C) (1) The Bonds shall bear interest designated as
"All interest at the per annum rate determined as described hereinabove
from their date to the maturity or prior redemption of each Bond.,
payable on the interest payment dates. The Bonds shall be issued in
the denominations of principal amount determined as provided herein
due on a specific maturity date or integral multiples thereof and only
in fully registered form and be numbered., by maturity, from 11 1 ll
consecutively upwards .
(2) In addition to such interest designated as
"All interest, the Bonds shall bear supplemental interest designated as
"B" interest evidenced by the Certificates which shall be owned,
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transferred, and presented for payment separately from the Bonds and
shall evidence that portion of interest designated. as "B" interest on
the Bonds coming due for the interest accrual period specified above
which the registered owners thereof are entitled to receive. The
Certificates shall be issued in the denomination of $1, 000 of interest
designated as "B" interest due on the "B" interest payment date or
integral multiples thereof and. only in fully registered form.
(D) The Finance Director of the Town will act as
"Bond Registrar and Paying Agent" with respect to the Bonds and the
Certificates. The Bond. Registrar and. Paying Agent shall maintain the
books of the Town for the registration of ownership of each Bond and
each Certificate . A Bond or a certificate may be transferred on the
registration books upon delivery of the Bond or the Certificate to the
Bond Registrar and Paying Agent, accompanied by a written instrument
of transfer in form and with guaranty of signature satisfactory to the
Bond Registrar and Paying Agent, duly executed by the registered owner
of the Bond or the certificate to be transferred or the attorney--in-
fact or legal representative thereof, containing written instructions
as to the details of the transfer of such Bond or Certificate . No
transfer of any Bond or Certificate shall be effective unti1 entered
on the registration books.
(E) The final payment of principal of and premium, if
any, on the Bonds shall be payable upon presentation and surrender
thereof to the Bond Registrar and Paying Agent . The interest
designated as "B" interest evidenced by the Certificates shall be
payable upon presentation and surrender to the Bond Registrar and
Paying Agent . Principal of and premium, if any, and interest on the
Bonds shall otherwise be payable by wire transfer to the registered
owner thereof, as shown on the registration books for the Bonds
maintained by the Bond Registrar and Paying Agent to the account
appearing therein at the close of business on the 15th day of the
calendar month next preceding that payment date . The principal of and
premium, if any, or interest on the Bonds and interest evidenced by
the Certificates shall be payable in lawful money of the United States
of America.
(F) In all cases upon the transfer of a Bond or a
Certificate, the Bond Registrar and Paying Agent shall enter the
transfer of ownership in the registration books and shall authenticate
and deliver in the name of the transferee a new fully registered Bond,
or certificate, as applicable, as the case may be, of the appropriate
denominations for the aggregate principal or payment amount which the
registered owner is entitled to receive at the earliest practicable
time in accordance with the provisions of this Section. The Town or
the Bond Registrar and Paying Agent shall charge the registered owner
of such Bond or Certificate, for every such transfer of a Bond, an
amount sufficient to reimburse them for any transfer fee, tax or
governmental charge required to be paid with respect to such transfer
and may require that such transfer fee, tax or governmental charge be
paid before any such new Bond or certificate shall be delivered.
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(G) The Town and the Bond Registrar and. Paying Agent
shall not be required to issue or transfer the Bonds during a period
beginning with the opening of business on the 15th business day next
preceding any interest payment date and ending with the close of
business on the interest payment date .
(H) (1) Based on the determinations made as
described hereinabove, the Bonds shall be subject to redemption prior
to maturity, in whole or in part, on any date on or after a date
determined by the Manager of the Town from prepayment of, and from
amounts collected pursuant to a public auction of property upon a
delinquency in payment of installments of, the Modified Assessment by
the payment of the principal amount of each Bond to be redeemed plus
C
nterest accrued to the date fixed for redemption and plus a premium,
the premium to be calculated as a percentage of the principal amount
of such Bond to be redeemed, as determined by the Manager of the
Town. ]
(2) Based on such determinations, the Bonds
shall also be subject to redemption prior to maturity, in whole or in
part, on any date determined by the Manager of the Town by the payment
of the principal amount of each Bond to be redeemed., plus accrued
interest to the date fixed for redemption and plus a premium, the
premium to be calculated as a percentage of the principal amount of
such Bond to be redeemed., as determined by the Manager of the Town.
(I) The Bonds shall be redeemed only so that
approximately equal debt service shall be paid each year.
(J) Not more than forty-five (4 5) nor less than
thirty (34) days before any redemption date, the Bond Registrar and
Paying Agent shall cause a notice of any redemption described in
subsection (H) (1) to be mailed by first--class mail, postage prepaid,
to the registered owner of the Bonds at the address shown on the
registration books maintained by the Bond Registrar and Paying Agent .
(K) Any Bond or portion thereof shall be deemed paid
and defeased and thereafter shall have no claim on the Bond Fund W
if there is deposited with a bank or comparable financial institution,
in trust, moneys or obligations issued by or guaranteed by the United
States government ("Defeasance obligations" ) or both which, with the
maturing principal of and interest on such Defeasance obligations, if
any, will be sufficient, as evidenced by a certificate or report of an
accountant, to pay the principal of and interest and any premium on
such Bond or portion thereof as the same matures, comes due or becomes
payable upon prior redemption and (ii) i f such def eased. Bond or
portion thereof is to be redeemed, notice of such redemption has been
given in accordance with provisions hereof . Bonds the payment of
which has been provided for in accordance with this section shall no
longer be deemed payable or outstanding hereunder and thereafter such
Bonds shall be entitled to payment only from the moneys or Defeasance
Obligations deposited to provide for the payment of such Bonds .
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W The Bonds and the certificates shall be in
physically, certificated form and be executed on behalf of the Town by
the manual or facsimile signature of the Mayor of the Town and
attested by the manual or facsimile signature of the Clerk of the
Town, and such officials are hereby authorized and directed to execute
and attest the Bonds and the Certificates as aforesaid.
(M) (1) The Bonds shall be in substantially the
following form, allowing those executing the Bonds to make insertions
and deletions necessary to conform the Bonds as provided by the
delegations allowed by this Resolution:
REGISTERED REGISTERED
NO. ■ . ■ . . . . . ► . . $ . . . . . ■ ■ . .
UNITED STATES OF AMERICA
STATE OF ARIZONA COUNTY OF PIMA
TOWN OF MARANA, ARIZONA
TANGERINE FARMS ROAD IMPROVEMENT DISTRICT
IMPROVEMENT REFUNDING BOND
original
Interest Rate : Maturity Date: Issue Date:
"A" . . . . . % per annum January 1, . . . . 2015
REG I S T E R E D OWNER: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PRINCIPAL AMOUNT: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . DOLLARS
KNOW ALL MEN BY THESE PRESENTS:
THAT THE TOWN OF MARANA, ARIZONA, a duly organized
municipal corporation (the "Town" ) , for value received., hereby
promises to pay to the Registered owner specified above or registered
assigns, solely from the sources hereinafter specified, the Principal
Amount specified above on the aforesaid Maturity Date and to pay
interest designated. as "A" interest on the Principal Amount at the
aforesaid Interest Rate on . . . . . . . . . . . . 1, and on January 1 and
July 1 of each year thereafter (each an "interest payment date" ) from
the date of this Bond to its maturity or its redemption prior to
maturity. The final payment of principal of and premium, if any, on
this Bond are payable upon presentation and surrender hereof at the
office of the Finance Director of the Town, as "Bond Registrar and
Paying .Agent . " Principal of and premium, if any, and interest
designated as "A" interest on this Bond are payable by wire transfer
to the Registered owner of the account shown on the registration books
for the Bonds of the issue of which this Bond is one (the "Bonds" )
maintained by the Bond Registrar and Paying Agent at the close of
business on the 15th day of the calendar month next preceding that
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payment date. The principal of and any premium, if any, and interest
designated as 11All interest on this Bond are payable in lawful money of
the United States of America on the respective dates when principal
and interest become due.
This Bond is one of an issue of . . . . . . . . . . . . . . . . Dollars
($ . . . . . . . . , 000) in aggregate principal amount issued pursuant to law
and. Resolution No. . . . . . . . . adopted on May 16, 2017 (the "Resolu--
tion") , by the Mayor and Common Council of the Town, to refinance the
work and improvements described (i) in the "Plans" on file in the
offices of the Superintendent of Streets and Clerk of the Town
described in Resolution No. 2006--75, adopted on June 6, 2006 (the
"Resolution of Intention") , by the Mayor and Common Council of the
Town and (ii) in summary fashion in Exhibit C to the Resolution of
Intention (collectively, the "Work") to be performed, the Work having
been initiated pursuant to the Resolution of Intention, and is payable
only out of a special fund to be held by the Town, collected from
installments of special assessments imposed on the lots, pieces and
parcels of land benefited by the Work (the "Special Fund" ) . The
Special Fund is set apart by law for the payment of the Bonds and can
be used for no other purpose.
It is hereby certified and declared that the Work is
authorized by law; that all the acts, conditions and things required
to be done, precedent to and in the issuance of the Bonds, have been
done and performed in regular and due form as required by the laws of
the State of Arizona and all ordinances and resolutions of the Town;
that the special assessments out of which the Bonds are to be paid are
first liens on the property assessed, subject only to the lien for
general taxes and prior special assessments; and that any bona fide
purchaser for value of this Bond has the right to rely on the recitals
herein contained. For the assessment or reassessment, collection and
payment of said special assessments, the full faith and diligence of
the Town are hereby irrevocably pledged.
(In addition to the interest designated as "A" interest at
the rate indicated above, the Bonds shall bear supplemental interest
designated as "B" interest during the interest accrual period set
forth below, payable on the date and in the amount as follows:
Amount of
"B" Interest
"B" Payable on
Interest Accrual Interest "B" Interest
Period Pa moment Date Payment Date
e n e r • e , . . . . ,
through ■ . r e ■ ■ o ■ 1, 0000 $ . . . 1000
and including
Such interest is evidenced by fully registered Supplemental Interest
Certificates which shall be owned, transferred and presented for
payment separately from this Bond. )
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The Bonds are subject to redemption prior to maturity, in
whole or in part, on any interest payment date on or after . . . . . . . . .
it 200 . . . , from prepayment of the special assessments out of which the
Bonds are to be paid and from amounts collected pursuant to a public
auction of property upon a delinquency in payment of installments of
such an Assessment by the payment of the principal amount of each Bond
to be redeemed plus interest accrued to the date fixed for redemption
and plus a premium, the premium to be calculated as a percentage of
the principal amount of such Bond to be redeemed as follows :
Redem t i ora. Dates Premium
[Not before Supps paid in full . ]
January 1, . . . . , through and including December 31, . . . . . . . Q
January 1, . . . . , through and including December 31, 0000 a . .
January 1, . . . . , and thereafter . . .
The Bonds are also subject to redemption prior to maturity,
in whole or in part, on any date on or after January 1, 20 . . . , by the
payment of the principal amount of each Bond to be redeemed, plus
interest accrued to the date fixed for redemption and plus a premium,
the premium to be calculated as a percentage of the principal amount
of such Bond to be redeemed as follows :
Redemption Dates Premium
January 1, . . . . , through and including December 31, . . . . . . . -0
January 1, . . . . , through and including December 31, . . . . . . o
January 1, . . . . , and thereafter P .
The Bonds maturing on January 1 of the following years will
be redeemed on January 1 of the following years (and as chosen by lot
by the Bond. Registrar and. Paying Agent from such maturity) and in the
following principal amounts at a price equal to the principal amount
thereof plus interest accrued to the date of redemption, but without
premium:
Term Bond. Maturing January 1, 20 . . .
Year Redeemed Principal Amount Redeemed
r . s e $ . . ■ , 0 0 0/
Term Bond Maturing January 1, 20 . . .
Year Redeemed Principal Amount Redeemed
. ■ ■ ■ $ . . . , V V V
0004, . . . , 000
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The Bonds shall be redeemed only so that approximately
equal principal and interest shall be paid each year. Not more than
45 nor less than 30 days before any redemption date, the Bond
Registrar and Paying Agent shall cause a notice of any optional
redemption to be mailed by first-class mail, postage prepaid., to the
registered owner of the Bonds at the address shown on the registration
books maintained by the Bond Registrar and. Paying Agent .
The Bond Registrar and Paying Agent will maintain the
registration books of the Town for the registration of ownership of
each Bond as provided in the Resolution. This Bond may be transferred
on the registration books upon delivery hereof to the Bond Registrar
and Paying Agent, accompanied by a written instrument of transfer in
form and with guaranty of signature satisfactory to the Bond Registrar
and Paying Agent, duly executed by the registered owner of this Bond
or the attorney-in-fact or legal representative thereof, containing
written instructions as to the details of the transfer. No transfer
of this Bond shall be effective until entered on the registration
books . The Town and the Bond Registrar and Paying Agent will not be
required to issue or transfer any Bonds during a period beginning with
the opening of business on the 15th business day next preceding any
interest payment date and ending with the close of business on the
interest payment date .
In all cases upon the transfer of a Bond, the Bond
Registrar and Paying Agent will enter the transfer of ownership in the
registration books and will authenticate and deliver in the name of
the transferee a new fully registered Bond for the aggregate principal
amount which the registered owner is entitled to receive at the
earliest practicable time in accordance with the provisions of the
Resolution. The Town or the Bond Registrar and Paying Agent will
charge the registered owner of such Bond, for every such transfer of a
Bond, an amount sufficient to reimburse them for any transfer fee, tax
or other governmental charge required to be paid with respect to such
transfer, and may require that such transfer fee, tax or governmental
charge be paid before any such new Bond shall be delivered.
Pursuant to the Resolution, payment of all or any part of
the Bonds may be provided for by the irrevocable deposit, in trust, of
moneys or obligations issued or guaranteed by the United States of
America ( "Defeasance obligations") or both, which, with the maturing
principal of and interest on such Defeasance obligations, if any, will
be sufficient, as evidenced by a certificate of an accountant, to pay
when due the principal or redemption price of and interest on such
Bonds . Any Bonds so provided for will no longer be outstanding under
the Bond Resolution or payable from ad valorem taxes on taxable
property in the District, and the owners of such Bonds shall
thereafter be entitled to payment only from the amounts and Defeasance
Obligations deposited in trust .
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This Bond shall not be entitled to any security or benefit
under the Resolution or be valid or become obligatory for any purpose
until the certificate of authentication hereon shall have been signed
by the Bond Registrar and Paging Agent .
IN WITNESS WHEREOF, the TOWN OF MAP-ANA, ARIZONA, has caused
this Bond to be signed in its name by the facsimile- signature of the
Mayor of the Town and attested by the facsimile signature of the Clerk
of the Town..
TOWN OF MARANA, ARIZONA
By (Facsimile)
Mayor, Town of Marana, Arizona
ATTEST:
(Facsimile)
Clerk, Town of Marana,
Arizona
Date of Authentication: . . . . . . . . . . . . . . . . . . . . . . . . . . .
CERTIFICATE OF AUTHENTICATION
This Bond is one of the Bonds described in the within-
mentioned Resolution and is one of the Town of Marana, Arizona
Tangerine Farms Road. Improvement District Improvement Refunding Bonds.
Finance Director, Town of Marana,
Arizona, as Bond Registrar and Paying
Agent
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ASSIGNMENT
For value received., the undersigned sells, assigns and
transfers unto . . . . . . . . . . . . . . . ■ . . . . . . • . . . . . . . the within Bond and
irrevocably constitutes and appoints . . . . . . . ■ . . . . . . . • . attorney to
transfer the within Bond on the books kept for registration thereof,
with full power of substitution in the premises .
Dated: 0 . . . . . . . . .
Signature
Signature Guaranteed:
[Insert proper legend]
Notice: The assignor' s signature to this assignment must correspond
with the name as it appears upon the face of the within
Bond in every particular, without alteration or any change
whatsoever.
ALL FEES .AND COSTS OF TRANSFER SHALL BE PAID BY THE
TRANSFEROR
The following abbreviations, when used in the inscription
on the face of the within Bond, shall be construed as though they were
written out in full according to applicable laws or regulations:
TEN COM - as tenants in common
TEN ENT - as tenants by the entireties
JT TEN - as joint tenants with right of survivorship
and not as tenants in common
UNIF GIFT/TRANS MIN ACT . . . . . . . . . . . Custodian . . . . . . . .
(Cult) (Minor)
under Uniform Gifts/Transfers to Minors Act . . . . . . . . . . .
(State)
Additional abbreviations may also be used though not
included in the above list.
(2) The certificates shall be in substantially
the following form, allowing those executing the Certificates to make
insertions and deletions necessary to conform the Certificates as
provided by the delegations allowing by this Resolution:
13
REGISTERED REGISTERED
NO. . . . . . . . . . . . . . . $ . . . . . . . . . .
UNITED STATES OF AMERICA
STATE OF ARIZONA COUNTY OF MARICOPA
TOWN OF MARANA, ARIZONA
TANGERINE FARMS ROAD IMPROVEMENT DISTRICT
IMPROVEMENT REFUNDING BOND
SUPPLEMENTAL, INTEREST CERTIFICATE
Payment Date: Dated:
. ■ . . . ■ • • , 2016
REGISTERED O wN E R: • . . . . . . . . . . . . . i . . . . . . . . . . . . . . . . . . . . . . . G
"B" INTEREST AMOUNT: ■ . * # 0009 - 4000 . . . . DOLLARS
THAT THE TOWN OF MARANA, ARIZONA, a duly organized.
municipal corporation (the "Town" ) , for value received, hereby
promises to pay to the aforesaid registered owner, or registered
assigns, on the payment date specified above, the amount specified
above, which evidences a portion of the interest designated as "B"
interest (computed on the basis of a 360-day year of twelve 30-day
months) which shall become due and payable on such payment date on the
outstanding principal amount of the Town' s Tangerine Farms Road.
Improvement District Improvement Refunding Bonds, dated. . . . . . . . . . . . . . .
2017, issued in the principal amount of $ . . . . , 000 (the "Bonds" ) , for
the period beginning from the January 1 or July 1, as applicable,
immediately preceding such payment date through the day immediately
prior to such payment date . The interest designated as "B" interest
on the Bonds evidenced by this Certificate is payable upon
presentation and surrender hereof at the office of the Finance
Director of the Town, as "Bond Registrar and Paying Agent" .
The Bonds and the interest designated as "B" interest
thereon evidenced by the Supplemental Interest Certificates of which
this is one (the "Certificates" ) have been issued pursuant to law and
Resolution No. . . . . . . . . . . adopted on May 16, 2017 (the "Resolution" ) ,
by the Mayor and. common Council of the Town, to refinance the work and
improvements described (i) in the "Plans" on file in the offices of
the Superintendent of Streets and clerk of the Town described in
Resolution No. 2006-75, adopted on June 6, 2006 (the "Resolution of
Intention" ) , by the Mayor and Common council of the Town and. (ii) in
summary fashion in Exhibit C to the Resolution of Intention (collec-
tively, the "Work" ) to be performed, the work having been initiated
pursuant to the Resolution of Intention, and are payable only out of a
special fund to be held by the Town, collected from installments of
14
special assessments imposed on the lots, pieces and parcels of land
benefited by the Work (the "Special Fund" ) . The Special Fund is set
apart by law for the payment of the Bonds and. the Certificates can be
used for no other purpose.
It is hereby certified and declared that the Work is
authorized by law; that all the acts, conditions and things required
to be done, precedent to and in the issuance of the Bonds and the
Certificates, have been done and performed in regular and due form as
required by the laws of the State of Arizona and all ordinances and
resolutions of the Town; that the special assessments out of which the
Bonds and the Certificates are to be paid are first liens on the
property assessed, subject only to the lien for general taxes and
prior special assessments; and that any bona fide purchaser for value
of this Certificate has the right to rely on the recitals herein
contained.. For the assessment or reassessment, collection and payment
of said special assessments, the full faith and diligence of the Town
are hereby irrevocably pledged.
The Certificates are not subject to prepayment prior to
their payment date.
The Bond. Registrar and Paying Agent will maintain the
registration books of the Town for the registration of ownership of
each Certificate as provided in the Resolution. This Certificate may
be transferred on the registration books upon delivery hereof to the
Bond Registrar and Paying Agent at its designated corporate trust
office, accompanied by a written instrument of transfer in form and
with guaranty of signature satisfactory to the Bond Registrar and
Paying Agent, duly executed by the registered owner of this
Certificate to be transferred or the attorney-lin-fact or legal
representative thereof, containing written instructions as to the
details of the transfer. No transfer of any Certificate shall be
effective until entered on the registration books .
In all cases upon the transfer of a Certificate, the Bond
Registrar and. Paying Agent will enter the transfer of ownership in the
registration books and shall authenticate and deliver in the name of
the transferee a new fully registered Certificate for the aggregate
amount of "B" interest which the registered owner is entitled to
receive at the earliest practicable time in accordance with the
provisions of the Resolution. The Town and the Bond Registrar and
Paying Agent shall charge the owner of such Certificate, for every
transfer of a Certificate, an amount sufficient to reimburse them for
any transfer fee, tax or other governmental charge required to be paid
with respect to such transfer, and may require that such transfer fee,
tax or governmental charge be paid before any such new Certificate
shall be delivered.
This Certificate shall not be entitled to any security or
benefit under the Resolution or be valid or become obligatory for any
purpose until the certificate of authentication hereon shall have been
signed by the Bond Registrar and Paying Agent .
15
IN WITNESS WHEREOF, the TOWN OF MARANA, ARIZONA, has caused
this Certificate to be signed in its name by the facsimile signature
of the Mayor of the Town and attested by the facsimile signature of
the Clerk of the Town.
TOWN OF MAR..A.NA, AR I z ONA
By (Facsimile)
Mayor, Town of Marana, Arizona
A'T'TEST
(Facsimile)
e . . . . ■ • ■ . . . . . . . . . . . . . . . . .
Clerk, Town of Marana,
Arizona
CERTIFICATE OF AUTHENTICATION
This Supplemental Interest Certificate is one of the
Certificates evidencing the "B" interest described in the within--
mentioned Resolution.
Date of Authentication: . . . . . . . • ■ . . • . . • . . . . ■ . • .
Finance Director, Town of Marana,
Arizona, as Bond Registrar and Paying
Agent
16
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned sells, assigns and
transfers unto . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(Name and Address of Transferee)
the within Certificate and irrevocably constitutes and appoints
00 attorney to
transfer the within Certificate on the books kept for registration
thereof, with full power of substitution in the premises .
Dated: . 6 6 & 6 a a a a 0 0 & 0 0 6 0 0 & 0 0 a 0 . . . . . . . . .
Signature
Signature Guaranteed:
. . . . . . . . . . . . . . . 0 . . . . . . . . . . . . . . . . . . . . . . . . . .
[-Tnsert proper legend] Signature
Note: The signature (s) on this
assignment must correspond with
the name (s) as it appears upon
the face of the within Certifi-
cate in every particular, with-
out alteration or any change
whatsoever.
The following abbreviations, when used in the inscription
on the face of the within Certificate, shall be construed as though
they were written out in full according to applicable laws or
regulations:
TEN COM as tenants in common
TEN ENT as tenants by the entireties
JT TEN as joint tenants with right of
survivorship and not as
tenants in common
UNIF GIFT MIN ACT . . . . . . . . . . . Custodian . . . . . . .
(Cust) (Minor)
under Uniform Gifts to Minors Act . . . . . . . . . . . . . . . . . .
(State)
Additional abbreviations may also be used though not
included in the above list .
ALL FEES AND COSTS OF TRANSFER
SHALL BE PAID BY THE TRANSFEROR
17
Section 2 . (A) The Modified Assessment showing the
remaining unpaid installments of the Assessment recalculated and
modified so that the amounts to be collected equal the amounts needed
to repay the Bonds and the Certificates is hereby approved.
(B) All provisions of Title 48, Chapter 4, Article 3 ,
Arizona Revised Statutes regarding the collection, payment and
enforcement of the Assessment and the validity and priority of the
lien of the assessments for the Bonds remain in full force and effect .
Except as modified pursuant to this section, the Assessment survives
the payment or defeasance of the Bonds to be Refunded and remains in
full force and effect, securing the Bonds until the payment in full of
the Bonds and the certificates.
(C) If there is a deficiency in the funds collected
from the Modified Assessment to pay the principal of or interest on
the Bonds (including interest evidenced by the Certificates) when due,
the Town shall, pursuant to the authority contained in Title 48,
Chapter 4, Article 2, Section 48-609, Arizona Revised Statutes, and
without condition, on or before December 31 and June 30 in each of the
years in which the payments of the principal of or interest on the
Bonds (including interest evidenced by the certificates) are due, make
good such deficiency by making a temporary loan to the special fund
which is set apart for the payment of the principal of or interest on
the Bonds (including interest evidenced by the Certificates) (the
"Special Fund" ) , so that the principal of and the interest on the
Bonds (including interest evidenced by the Certificates) shall be paid
when due on the next succeeding January 1 or July 1 as the case may
b e.
Section 3 . (A) .Any capitalized interest with respect to
the Bonds shall be deposited in the Special Fund.
(B) The Finance Director of the Town shall cause to
be safe kept and administered the portion of the proceeds of the Bonds
and the Certificates together with all or a portion of the amounts
held in the debt service fund for payment of principal of and interest
on the Bonds to be Refunded and other amounts lawfully available so as
to provide funds to pay the Bonds to be Refunded when due, or called
for redemption, together with interest thereon and redemption
premiums, if any, at maturity or on an available redemption date . The
Bonds to be Refunded shall be deemed to have been paid and shall have
no further interest in the Assessment .
(C) Amounts to pay expenses incurred in connection
with the authorization and issuance of the Bonds and the Certificates
and the refunding of the Bonds to be Refunded shall be held and paid
by the Finance Director of the Town.
Section 4 . (A) The Finance Director of the Town is hereby
authorized to accept a proposal for the purchase of the Bonds and the
Certificates, and the Bonds and the Certificates are hereby ordered to
be placed accordingly, substantially in accordance with the terms of
18
the Placement Agent Agreement in standard form (the "Placement Agent
Agreement") . The Mayor, or in the absence thereof, Vice Mayor of the
Town is hereby authorized to execute, and the Clerk of the Town to
attest and deliver, the Placement Agent Agreement, for and on behalf
of the Mayor and Common Council of the Town, in such form, with
necessary changes, satisfactory to the Mayor, or in the absence
thereof, Vice Mayor of the Town, and such execution by the Mayor or
Vice Mayor of the Town shall indicate the approval thereof on behalf
of the Mayor and Common Council of the Town by the Mayor or Vice Mayor
of the Town.
(B) The Mayor and other officers of the Town are
hereby authorized and directed to cause the Bonds and the Certificates
to be delivered upon receipt of payment therefor and satisfaction of
the other conditions for delivery thereof in accordance with the terms
of the sale accepted by the Finance Director of the Town.
Section S . All prior acts of the Mayor and. Common Council
of the Town, of the Town, of the Superintendent of Streets of the Town
and of the Finance Director of the Town are hereby ratified and
confirmed. The Mayor, or in the absence thereof, Vice Mayor of the
Town and the other officers of the Town are hereby authorized to
execute such certificates and receipts as in the opinion of bond
counsel opining upon issuance of the Bonds are necessary in connection
with the issuance and delivery of the Bonds and the Certificates.
Section 6 . (A) As to be provided in further detail in the
Certificate As To Federal Tax Matters to be delivered by the Town in
connection with the issuance of the Bonds (the "Tax Certificate") , no
investment or other use of the proceeds of any Bonds or Certificates
shall be made or directed to be made which would cause such Bonds or
Certificates to be "arbitrage bonds" as that term is defined in
section 148 (or any successor provision thereto) of the Internal
Revenue Code of 1986, as amended, or "private activity bonds" as that
term is defined in section 141 (or any successor provision thereto) of
such Code, and the requirements of such Code sections and related
regulations shall be complied with throughout the term of the Bonds
and the Certificates . In consideration of the purchase and acceptance
of the Bonds by the holders from time to time thereof and of retaining
such exclusion and as authorized by Title 35, Chapter 3 , Article 7,
Arizona Revised Statutes, the Mayor and Common Council of the Town
covenant, and the appropriate officials of the Town are hereby
directed, to take all action required to preserve such exclusion or to
refrain from taking any action prohibited by such Code which would
adversely affect in any respect such exclusion.
(B) The Town shall be the owner of the facilities
ref inanced with the proceeds of the sale of the Bonds (the
"Facilities" ) for federal income tax purposes . Except as otherwise
advised in a Bond Counsel ' s opinion (as such term is defined in the
next Section) , the Town shall not enter into (1) any management or
service contract with any entity other than a governmental entity for
the operation of any portion of the Facilities unless the management
19
or service contract complies with the requirements of Revenue
Procedure 97--13 or such other authority as may control at the time, or
(ii) any lease or other arrangement with any entity other than a
governmental entity that gives such entity special legal entitlements
with respect to any portion of the Facilities .
(C) The procedures and covenants contained in any
arbitrage rebate provision or separate agreement executed in
connection with the issuance of the Bonds (initially those in
Section 7) shall be complied with for so long as compliance is
necessary in order to maintain the exclusion from gross income for
federal income tax purposes of interest on the Bonds (including that
evidenced by the Certificates) .
(D) The payment of principal and interest with
respect to the Bonds (including interest evidenced by the
Certificates) shall not be guaranteed (in whole or in part) by the
United States or any agency or instrumentality of the United. States.
The proceeds of the Bonds and the Certificates, or amounts treated as
proceeds of the Bonds and the certificates, shall not be invested
(directly or indirectly) in federally insured deposits or accounts,
except to the extent such proceeds (i) may be so invested for an
initial temporary period until needed for the purpose for which the
Bonds are being issued, (ii) may be so used in making investments of a
bona fide debt service fund. or (iii) may be invested in obligations
issued by the United States Treasury.
(E) (1) All necessary and desirable steps to comply
with the requirements hereunder in order to ensure that interest on
the Bonds (including that evidenced by the Certificates) is excluded
from gross income for federal income tax purposes under such Code
shall be taken; provided, however, compliance with any such
requirement shall not be required in the event the Town receives a
Bond counsel ' s opinion (as such term is defined in the next section)
that either (i) compliance with such requirement is not required to
maintain the exclusion from gross income of interest on the Bonds
(including that evidenced by the Certificates) , or (ii) compliance
with some other requirement will meet the requirements of such code.
In the event the Town receives such a Bond Counsel ' s opinion, this
Resolution shall be amended to conform to the requirements set forth
in such opinion.
(2) If for any reason any requirement hereunder
is not complied with, all necessary and desirable steps to correct
such noncompliance shall be taken within a reasonable period of time
after such noncompliance is discovered or should have been discovered
with the exercise of reasonable diligence, and the Town shall pay any
required interest or penalty under Regulations section 1 . 148-3 (h)
hereinafter described.
(F) written procedures have been established for the
Town to ensure that all nonqualified obligations are remediated
according to the requirements under such Code and related Regulations
20
and to monitor the requirements of section 148 of the Code relating to
arbitrage, with which the Town will comply.
Section 7 . (A) Terms not otherwise defined in Subsection
(B) hereof shall have the meanings given to them in the Tax
Certif icate.
(B) The following terms shall have the following
meanings:
Bond Counsel ' s opinion shall mean an opinion signed by
an attorney or firm of attorneys of nationally recognized standing in
the field, of law relating to municipal bonds selected by the Town.
Bond Year shall mean each one -year period beginning on
the day after the expiration of the preceding Bond Year. The first
Bond Year shall begin on the date of issue of the Bonds and shall end
on the date selected by the Town, provided that the first Bond Year
shall not exceed one calendar year. The last Bond Year shall end on
the date of retirement of the last Bond.
Bond Yield is as indicated in the Tax Certificate .
Bond. Yield shall be recomputed if required by Regulations section
1. 148-4 (b) (4) or 4 (h) (3) . Bond Yield shall mean the discount rate
that produces a present value equal to the Issue Price of all
unconditionally payable payments of principal, interest and fees for
qualified guarantees within the meaning of Regulations section
1 . 148-4 (f) and amounts reasonably expected to be paid as fees for
qualified guarantees in connection with the Bonds as determined. under
Regulations section 1 . 148-4 (b) . The present value of all such pay-
ments shall be computed as of the date of issue of the Bonds and using
semiannual compounding on the basis of a 360-day year
Code shall mean the Internal Revenue Code of 1986, as
amended, and any successor provisions thereto.
Gross Proceeds shall mean:
(i) any amounts actually or constructively
received by the Town from the sale of the Bonds but excluding amounts
used to pay accrued interest on the Bonds within one year of the date
of issuance of the Bonds;
(ii) transferred proceeds of the Bonds under
Regulations section 1 . 148-9;
(iii) any amounts actually or constructively
received from investing amounts described in (i) , (ii) or this (iii) ;
and
(iv) replacement proceeds of the Bonds within
the meaning of Regulations section 1 . 148-1 (c) . Replacement proceeds
include amounts reasonably expected to be used directly or indirectly
21
to pay debt service on the Bonds, pledged amounts where there is
reasonable assurance that such amounts will be available to pay
principal or interest on the Bonds in the event the Town encounters
financial difficulties and other replacement proceeds within the
meaning of Regulations section 1 . 148-1 (c) (4) . Whether an amount is
Gross Proceeds is determined without regard to whether the amount is
held in any fund or account established under this Resolution.
Investment Property shall mean any security, obliga-
tion (other than a tax-exempt bond within the meaning of Code section.
148 (b) (3) (A) ) , annuity contract or investment-type property within the
meaning of Regulations section 1. 148 -1 (b) .
Issue Price is as indicated in the Tax Certificate,
which is the initial offering price of the Bonds . Issue price shall
be determined as provided in Regulations section 1 . 148-1 (b) .
Nonpurpose Investment shall mean any Investment Prop-
erty acquired with Gross Proceeds, and which is not acquired to carry
out the governmental purposes of the Bonds.
Payment shall mean any payment within the meaning of
Regulations section 1 . 148-3 (d) (1) with respect to a Nonpurpose Invest-
ment .
Rebate Requirement shall mean at any time the excess
of the future value of all Receipts over the future value of all
Payments. For purposes of calculating the Rebate Requirement the Bond
Yield shall be used to determine the future value of Receipts and Pay-
ments in accordance with Regulations section 1 . 148-3 (c) . The Rebate
Requirement is zero for any Nonpurpose Investment meeting the require-
ments of a rebate exception under section 148 (f) (4) of the Code or
Regulations section 1 . 148--7 .
Receipt shall mean any receipt within the meaning of
Regulations section 1 . 148-3 (d) (2) with respect to a Nonpurpose
Investment .
Regulations shall mean the sections 1 . 148-1 through
1. 14811 and section 1 . 150-1 of the regulations of the United States
Department of the Treasury promulgated under the Code, including and
any amendments thereto or successor regulations .
(C) Within 60 days after the end of each Bond Year
unless an exception to the requirement to do so is established, the
Town shall cause the Rebate Requirement to be calculated and shall pay
to the United States of America:
(1) not later than 60 days after the end of the
fifth Bond. Year and every fifth Bond Year, thereafter,
an amount which, when added to the future value of all
previous rebate payments with respect to the Bonds
(determined as of such Computation Date) , is equal to
22
at least 9001 of the sum of the Rebate Requirement
(determined as of the last day of such Bond Year) plus
the future value of all previous rebate payments with
respect to the Bonds (determined as of the last day of
such Bond Year) ; and
(2) not later than 60 days after the retirement
of the last Bond, an amount equal to 100% of the
Rebate Requirement (determined as of the date of
retirement of the last Bond) .
Each payment required to be made under this Section shall be filed
with the Internal Revenue Service Center, Ogden, Utah 84201, on or
before the date such payment is due, and shall be accompanied by IRS
Form 8038T-T.
(D) No Nonpurpose Investment shall be acquired for an
amount in excess of its fair market value. No Nonpurpose Investment
shall be sold or otherwise disposed of for an amount less than its
fair market value .
(E) For purposes of Subsection (D) , whether a Nonpur-
pose Investment has been purchased or sold or disposed of for its fair
market value shall be determined as follows :
(1) The fair market value of a Nonpurpose
Investment generally shall be the price at which a willing
buyer would purchase the Nonpurpose Investment from a
willing seller in a bona fide arm' s length transaction.
Fair market value shall be determined on the date on which
a contract to purchase or sell the Nonpurpose Investment
becomes binding.
(2) Except as provided in Subsection M or
(G) , a Nonpurpose Investment that is not of a type traded
on an established securities market, within the meaning of
Code section 1273 , is reputably presumed to be acquired or
disposed of for a price that is not equal to its fair
market value .
(3) If a United States Treasury obligation is
acquired directly from or sold or disposed of directly to
the United States Treasury, such acquisition or sale or
disposition shall be treated as establishing the fair
market value of the obligation.
(F) The purchase price of a certificate of deposit
that has a fixed interest rate, a fixed payment schedule and a
substantial penalty for early withdrawal is considered to be its fair
market value if the yield on the certificate of deposit is not less
than:P
23
(1) the yield on reasonably comparable direct
obligations of the United States, and
(2) the highest yield that is published or
posted by the provider to be currently available from the
provider on reasonably comparable certificates of deposit
offered to the public.
(G) A guaranteed investment contract shall be
considered acquired and disposed of for an amount equal to its fair
market value if
(l) A bona fide solicitation in writing for a
specified guaranteed investment contract, including all
material terms, is timely forwarded to all potential
providers . The solicitation must include a statement that
the submission of a bid is a representation that the
potential provider did not consult with any other potential
provider about its bid, that the bid was determined without
regard to any other formal or informal agreement that the
potential provider has with the Town or any other person
(whether or not in connection with the Bonds) , and that the
bid is not being submitted solely as a courtesy to the Town
or any other person for purposes of satisfying the require-
ments
equire-ments in the Regulations that the Town receive bids from at
least one reasonably competitive provider and at least
three providers that do not have a material financial
interest in the Bonds .
(2) All potential providers have an equal
opportunity to bid, with no potential provider having the
opportunity to review other bids before providing a bid.
(3) At least three reasonably competitive
providers (i .e. having an established industry reputation
as a competitive provider of the type of investments being
purchased) are solicited for bids . At least three bids
must be received from providers that have no material
financial interest in the Bonds (e.g. , a lead underwriter
within 15 days of the issue date of the Bonds or a
financial advisor with respect to the investment) and at
least one of such three bids must be from a reasonably
competitive provider. If the Town uses an agent to conduct
the bidding, the agent may not bid..
(4) The highest--yielding guaranteed investment
contract for which a qualifying bid is made (determined net
of broker' s fees) i s purchased.
(5) The determination of the terms of the
guaranteed investment contract takes into account as a
significant factor the reasonably expected deposit and
drawdown schedule for the amounts to be invested.
24
(6) The terms for the guaranteed investment
contract are commercially reasonable (i .e . have a legiti-
mate business purpose other than to increase the purchase
price or reduce the yield of the guaranteed investment
contract) .
(7) The provider of the investment contract
certifies the administrative costs (as defined in Regula-
tions
egula--
tions section 1 . 148-5 (e) ) that it pays (or expects to pay)
to third parties in connection with the guaranteed invest-
ment contract.
(8) The Town retains until three years after
the last outstanding Bond is retired, (i) a copy of the
guaranteed investment contract, (ii) a receipt or other
record of the amount actually paid for the guaranteed
investment contract, including any administrative costs
paid by the Town and a copy of the provider' s certification
described in (7) above, (iii) the name of the person and
entity submitting each bid., the time and date of the bid.,
and the bid results and (iv) the bid solicitation form and.,
if the terms of the guaranteed investment contract deviates
from the bid solicitation form or a submitted bid is
modified, a brief statement explaining the deviation and
stating the purpose of the deviation.
(H) The employment of such experts and consultants to
make, as necessary, any calculations in respect of rebates to be made
to the United. States of America in accordance with Section 148 (f) of
the Code with respect to the Bonds, is hereby authorized.
Section 8 . All of the provisions of this Resolution shall
constitute a contract between the Town and the registered owners of
the Bonds and the Certificates, and no amendments, alterations or
modifications of this Resolution shall be made which shall in any
manner impair, impede or lessen the rights of the registered owners of
the Bonds or the Certificates then outstanding.
Section 9 . If any section, paragraph, clause or provision
of this Resolution shall for any reason be held to be invalid or
unenforceable, the invalidity or unenforceability of such section,
paragraph, clause or provision shall not affect any of the remaining
provisions of this Resolution.
Section 10 . All resolutions or parts thereof, inconsistent
herewith, are hereby waived to the extent only of such inconsistency.
This waiver shall not be construed as reviving any resolution or any
part thereof .
Section 11 . The immediate operation of the provisions of
this Resolution is necessary for the preservation of the public peace,
health and safety of the residents and citizens of the Town for the
reason that the Bonds and the Certificates must be sold without delay;
25
an emergency is, therefore hereby declared to exist; this Resolution
is enacted as an emergency measure and shall be in full force and
effect immediately upon its passage and adoption by the Mayor and
Common Council of the Town, as required by law and this Resolution is
hereby exempt from the referendum provisions of the Constitution and
laws of the state of Arizona. After the issuance and delivery of the
Bonds, this Resolution shall be and remain irrepealable until the
Bonds and the Certificates and the interest thereon shall have been
fully paid, cancelled and discharged.
26
PASSED, ADOPTED AND APPROVED by the Mayor and Common
Council of the Town of Marana, Arizona, this 16th day of May, 2017 .
. . . . . . . . . .
Edward Honea, Mayor
ATTEST:
Ail
J elyn B, son, Town Clerk
N'-,
PHX 332431772v1
27
CERTIFICATION
I hereby certify that the foregoing Resolution No.
was duly passed and adopted by the Mayor and Common Council of the
Town of Marana, at a regular meeting held on 'May 16, 2017, and that a
quorum was present thereat and the vote was ayes and nays .
■
. . . . . . . . . . . . . . . . . . . .
ocely Bronson, Town Clerk