HomeMy WebLinkAboutResolutions - 1989.02.23 - 17252MISCELLANEOUS RESOLUTION # '9 ' ° Date: Feb. 23 , 1989
BY: FINANCE COMMITTEE, G. WILLIAM CADDELL, Chairperson
RE: TREASURER'S OFFICE-
AUTHORIZATION TO BORROW AGAINST DELINQUENT 1988 TAXES
TO: OAKLAND COUNTY BOARD OF COMMISSIONERS
MR. CHAIRMAN, LADIES AND GENTLEMEN:
WHEREAS, ad valorem real property taxes are imposed by
the County and the local taxing units within the County on July
1 and/or December 1 of each year; and
WHEREAS, a certain portion of these taxes remain
unpaid and uncollected on March .1 of the year following
assessment, at which time they are returned delinquent to the
County 's treasurer (the "Treasurer");. and
WHEREAS, the Treasurer is bound to collect all
delinquent taxes, interest and property tax administration fees
which would otherwise be payable to the local taxing units
within the County; and
WHEREAS, the statutes of the State of Michigan
authorize the County to establish a fund, in whole or in part
from borrowed proceeds, to pay local taxing units within the
County their respective shares of delinquent ad valorem real
property taxes, in anticipation of the collection of those
taxes by the Treasurer; an
WHEREAS, the County Board of Commissioners (the
"Board"..) has adopted a resolution authorizing the County's
Delinquent Tax Revolving Fund, pursuant to Section 87b of Act
No. 206, Michigan Public Acts of 1893, as amended ("Act 206");
and
WHEREAS, such fund has been established to provide a
source of monies from which the Treasurer may pay any or all
delinquent ad valorem real property taxes which are due the
County, and any city, township, school district, intermediate
school district, community college district, special assessment
district, drainage district, or other political unit within the
geographical boundaries of the County participating in the
County's Revolving Fund program pursuant to Act 206 ("local
units").; and
WHEREAS, the Treasurer is authorized under Act 206,
and has been directed by the Board, to make such payments with
respect to delinquent ad valorem real property taxes (including
the property tax administration fees assessed under subsection
(6) of Section 44 of Act 206) owed in 1988 to the County and
the local units (collectively, the "taxing units") which will
have remained unpaid on March 1, 1989 (the "Delinquent Taxes");
and
WHEREAS, the Board has determined that in order to
raise sufficient monies te adequately fund the Revolving Fund
the County must issue its 1989 General Obligation Limited Tax
Notes, in one or more series, in accordance with Sections 87c,
87d, 87e, 87f, 87g and 89 of Act 206 and on the terms and
conditions set forth below.'
NOW:THEREFORE, IT IS RESOLVED BY THE BOARD AS FOLLOWS:
1
GENERAL PROVISIONS
101. Establishment of 1989 Revolving Fund, In
Anticipation of the program addressed in this Resolution and in
accordance With Act• 206,t4e County hereby establishes a 1989
Delinquent ,Tax Revolving Fund (the "Revolving Fund"), as a
separate and segregated fund within the existing Delinquent Tax
:HRevolving Fund of the County previously established by the
Board pursuant to Section 87b of Act 206.
102. Issuance of Notes. The County shall issue its
1989 General Obligation Limited Tax Notes in one or more series
(the "NOtee"),,in-::accordance with this Resolution and Sections
870:, 87d, 87e; 87f, 87g and 89 of Act 206, payable in whole or
in part from the Delinquent Taxes and/or from the other sources
specified -beldW.
102. Aggregate Amount of Notes. (a) The Notes shall
be issuedin ap aggregate amount to be determined in accordance
with this Section by the Treasurer.
(b) The aggregate amount of the Notes shall not be
less than the amount by which the actual or estimated Delin-
quent Taxes exceeds (i): the County's participating share of
:Delinquent Taxes and (ii) any sums otherwise available to fund
the Tax Payment Account established under Section 702
(including any monies held in respect of Section 704(0),
(e) The aggregate amount of the Notes shall not be
greater than the sum of (0 the actual amount of the Delinquent
Taxes pledged to the paymentof debt service on the Notes, plus
(ii) the amount determined by the Treasurer to be allocated to
a reserve fund. Proceed of the Notes devoted to a reserve
fund shall not exceed the lesser of (A) the amount reasonably
required for those of the Notes secured by the reserve fund,
(B) 10% of the proceeds Of such Notes, (C) the maximum amount
of annual debt service On such Notes, or (D) 125% of average
annual debt service on Such Notes.
(d) The aggregate amount of the Notes shall be
designated by the Treasurer by written order after (i) the
amount :of the DelinqUent Taxes, or the amount of Delinquent
Taxes to be funded by the issuance of the Notes, has been
estimated or determined; and (ii) the amount of the reasonably
required reserve fund has been calculated. Delinquent Taxes
shall be estimated based on delinquencies experienced during
the past three , fiscal years and on demographic and economic
.iiat4 relevant to the current tax year, and shall be determined
based on certification from each of the taxing units. The
amount of the reasonably required reserve fund shall be
calculated pursuant to such analyses and certificates as the
Treasurer :Tay request.
104. Proceeds. If the Notes are issued and sold
before the Treasurer has received certification from the taxing
units of the amount of the Delinquent Taxes and if such certi-
fication is not reasonably anticipated to occur to allow dis-
tribution of the proceeds of the Notes within 20 days after the
date of issue, the proceeds of the Notes shall be deposited in
the County's 1989 Delinquent Tax Project Account and thereafter
used to fund the whole or :a part -of the County's 1989 Tax Pay
merit Account, 1989 Note Reserve Account and/or 1989 Note Pay-
ment Account, Subject to and in accordance with Article VII.
• If the Notes are issued and sold on or after such time, the
proceeds of the Notes Shall be deposited directly into the
County's 1989 Tax Payment Account, 1989 Note Reserve Account
and/or 1989 Note Payment Account, as provided in Article VII.
• II
e FIXED MATURITY NOTES
201. Authority. At the option of the Treasurer, exer-
cisable by written order, Notes may be issued in accordance
with this Article II. All reference to "Notes" in Article II
refers only to Notes issued pursuant to Article II, unless
otherwise specified.
202. Date. The Notes shall be dated as of the date
of issue or as of such earlier date specified by written order
of the Treasurer.
203. Maturity and Amounts. Notes issued pursuant to
this Article shall be structured in accordance with
subsections (a). or (b) below, as determined by the Treasurer
pursuant to written order.
(a) The first. maturity of the Notes shall be
determined by the Treasurer pursuant to written order, but
shall not be later than one year after the date of issue.
Later maturities of the Notes shall be on the first anniversary
of the preceeding maturity or on such earlier date as the
Treasurer , may specify by written order. The Notes shall be
structured with the number of maturities determined by the
Treasurer to be necessary or appropriate, and the last maturity
shall be scheduled for no later than the fourth anniversary of
the date of issue. The amount of each maturity shall be set by
the Treasurer when the amount of Delinquent Taxes is determined
by the Treasurer or when a reliable estimate of the Delinquent
Taxes is available to the Treasurer. In determining the exact
amount of each maturity the Treasurer shall consider the sched-
ule of delinquent tax collections prepared for the tax years
1985, 1986, 1987 and, if available, 1988, and the corollary
schedule setting forth the anticipated rate of collection of
those Delinquent Taxes which are pledged to the repayment of
the Notes, The amount of each maturity and the scheduled
maturity dates of the Notes shall be established to take into
account the dates on which the Treasurer reasonably anticipates
the collection of such Delinquent Taxes and shall allow for no
more than a 10% variance between the debt service payable on
each maturity date and the anticipated amount of pledged monies
available on such maturity date to make payment of such debt
service.
(b) Alternatively, the Notes may be structured with a
single stated maturity falling not later than the fourth
anniversary of the date of issue. The amount of the stated
maturity shall be the aggregate principal amount determined in
accordance with Section 103. Notes issued under this
subsection (b) shall be Subject to redemption on such terms
consistent with Section 209 as shall be ordered by the
Treasurer, but in no event shall such Notes be subject to
redemption less frequently than annually.
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zeal or imprinted with a facsimile of such seal, The Treasurer
is authorized and directed to then deliver the Notes to the
purchaser thereof upon receipt of the purchase price. The
Notes shall be delivered at the expense of the County in such
• city or cities as may be designated by the Treasurer.
213. Renewal, Refunding or Advance Refunding Notes.
If at any time it appear e to be in the best interests of the
County, the Treasurer, by written order, may authorize the
issuance of renewal, refunding or advance refunding Notes. The
terms of such Notes, and the precedures incidental to their
issuance, shall be set subject to Section 309 and, in
appropriate cases, Article X.
III
SHORT TERM RENEWABLE NOTES
301. Authority At the option of the Treasurer,
exerdisahle by written order, Notes may be issued in accordance
with this Article III. All references to "Notes" in Article
III refer only to Notes issued pursuant to Article III, unless
otherwise specified
302.. Pate and Maturity, The Notes shall be dated as
Of their: date Of issuance or any prior date selected by the
Treasurer 'and shall mature on such date or dates not exceeding
one year from the date of their issuance as may be specified by
written order of the Treasurer .
303. Interest and Date of Record, The Notes shall
bear interest payable at maturity at such rate or rates as may
be determined by the Treasurer not exceeding the maximum rate
of interest permitted by law on the date the Notes are issued.
The date of record shall be not fewer than two nor more than 31
days before the date of payment, as designated by the Treasurer
prior to the sale of the Notes.
304, Note Form, The form of Note shall be consistent
with the prescriptions of this Resolution and shall reflect all
material terms of the Notes. The Notes shall, in the discre-
tion of the Treasurer and. consistent with Section 205, either
be payable to bearer or bee issued in registered form. If
issued in registered form, the Notes may be constituted as
book-entry securities consistent with Section 208, notwith-
standing any contrary provision of Section 308.
305. Denomination and Numbers, The Notes shall be
issued in one or more denomination or denominations, as deter-
mined by the Treasurer. The Notes shall be numbered from one
upwards; in such order as the Treasurer determines.
306. Redemption. The Notes shall not be subject to
redemption prior to maturity.
307. Sale of Notes. The authority and obligations of
the Treasurer set forth in Sections 210 and 211 respecting
Fixed Maturity Notes shall apply also to Notes issued under
Article III.
308. Execution and Delivery. The authority and obli-
gations of the Treasurer set forth in Section 212 respecting
Fixed Maturity Notes shall also apply to Notes issued under
Article III.
7
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( V )
I'
Not es;
(i) Publicly reported prices or yields of oblige-
. tions of the United States of America;
(ii) An index of municipal obligations periodically
reported by a nationally recognized source;
(iii) The prime lending rate from time to time set
by any bank or trust company in the United States with unim-
paired capital and surplus exceeding $40,000,000;
(iv) Any other rate or index that may be designated
by order of the Treasurer provided such rate or index is set or
reported by a source which is independent of and not controlled
by the treasurer or the County.
The procedure for determining the variable rate may involve one
or more of the above indices as alternatives or may involve the
setting of the rate by a municipal bond specialist provided
such rate shall be within a stated percentage range of one or
more of the 'indices set forth above.
403. Date of Record, The Date of Record shall be not
fewer than one nor more than 31 days before the date of pay-
ment, as designated by written order of the Treasurer.
404. Redemption. Notwithstanding any contrary pro-
vision of subsections (b) and (c) of Section 209 but subject to
the last sentence of this Section 404, Notes bearing interest
at a variable rate may be subject to redemption by the County
and/or put by the holder at any time or times and in any order,
as may be determined pursuant to written order of the Trea-
surer. Notes shall not be subject to redemption more fre-
quently than monthly.
405. Repurchase and Resale. In the event Notes
issued under this Article IV are constituted as demand obli-
gations subject to remarketing, the County shall be authorized,
consistent with Act 206 and pursuant to order of the Treasurer,
to participate in the repurchase and resale of Notes, in order
to reduce the cost of, or increase the revenue, attendant to
the establishment of the Revolving Fund and the issuance and
discharge of the Notes. The purchase of Notes pursuant to this
Section Shall be made with unpledged monies drawn from re-
volving funds established by the County in connection with
retired general obligation limited taw notes.
V
MULTIPLE SERIES
501. Issuance of Multiple Series. At the option of
the Treasurer, exercisable by written order, the Notes may be
issued in two or more individually designated series. Each
series shall bear its own rate of interest, which may be fixed
or variable in accordance with Article IV, Various series need
not be issued at the same time and may be issued from time to
time in the discretion of the Treasurer exercisable by written
order. In determining the dates of issuance of the respective
series the Treasurer shall consider, among other pertinent
factors, the impact the dates selected may have on the
marketability, rating and/or qualification for credit support
or liquidity support for, or insurance of, the Notes. The
Notes of each such series shall be issued according to this
9
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or
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i n
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The form
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12
the expenses of the offering of the Notes. In the event the
Treasurer by written order so directs, additional funding of
the Project Account may be undertaken, and any surplus proceeds
remaining in the Project Account after the Treasurer has
completed the funding of the Tax Payment Account may be
transferred to either the 1989 Note Reserve Account created
under Section 703 or the 1989 Note Payment Account created
under Section 704. Monies in the Project Account may be
disbursed by the escrow agent to the County's 1989 Tax Payment
Account at any time and from time to time, upon receipt of a
written requisition signed by the Treasurer.
702. 1989 Tax Payment Account. The County's 1989 Tax
Payment Account (the "Tax Payment Account") is hereby
established as a distinct account within the Revolving Fund.
The Treasurer shall designate all or a portion of the proceeds
of the Notes, not to exceed the amount of Delinquent Taxes, for
deposit in the Tax Payment Account. If, however, the proceeds
of the Notes are initially deposited in the Project Account
pursuant to Section 701, the Treasurer is instead authorized
and directed to transfer monies included in the Project Account
to the Tax Payment Account in accordance with the procedures
set forth in Section 701. The County shall apply the monies in
the Tax Payment Account to the payment of the Delinquent Taxes
or expenses of the borrowing in accordance with Act 206. The
allocation of monies from the Tax Payment Account may be made
pursuant to a single, comprehensive disbursement or may instead
be made from time to time, within the time constraints of Act
206, to particular taxing units as monies are paid into the Tax
Payment Account, such that the source of the monies (whether
from the County's own funds or from the proceeds of a
borrowing) may be traced to the particular taxing unit
receiving the funds. Moreover, and regardless of whether
multiple series of Notes are issued, the Tax Payment Account
may be divided into separate sub-accounts in order to allow the
Treasurer to designate which taxing units shall receive bor-
rowed funds and which shall receive funds otherwise contributed
by the County.
703. 1989 Note Reserve Account. In the event funding
is provided as described in this Section 703, the Treasurer
shall establish a 1989 Note Reserve Account (the "Note Reserve
Account") as a distinct account within the Revolvingt,Fund.
After depositing all of the monies to fund the Tax Payment
Account pursuant to Section 702, the Treasurer shall next
transfer to the Note Reserve Account, either from the Project
Account or directly from the proceeds of Notes, any proceeds
remaining from the initial issuance of the Notes. In addition,
the Treasurer may transfer unpledged monies from other County
sources to the Note Reserve Account in an amount which, when
added to any other amounts to be deposited in the Note Reserve
Account, does not exceed the amount reasonably required for the
Notes secured by the Reserve Account or, if less, 20% of the
total amount of the Notes secured by the Reserve Account.
Except as provided below, all monies in the Note Reserve
Account shall be used solely for payment of principal of,
premium, if any, and interest on the Notes to the extent that
monies required for such payment are not available in the
County's 1989 Note Payment Account. Monies in the Note Reserve
Account shall be withdrawn first for payment of principal of,
premium, if any, and interest on the. Notes before County
general funds are used to make the payments. All income or
interest earned by or increment to, the Note Reserve Account
due to its investment or reinvestment shall be deposited in the
Note Reserve Account. When the Note Reserve Account is
13
lact Account
Reserve
703.
(v)
after the tz:=12 ,L
Account "
11
by . the
interest
used
and
prcwide
lbsection
and
es, in
5yment
or
any
ion !c.) SUMS
from the Note
b611 he determined
that only
(a) shall
applied
which av
Account
p1,1,art
othr, 7
deT„criec;
Payment
in aceorda:::,:
of the Notes, the
3.te not
to the
the
!count:
(ii) Prior to
Treasurer may by wr.L
earlier than !Aar:7:h 1,
Note - Fayment Aidunt
cutoff ie shc,11 17)
°:77.civle that
en depositd into
c1].t7s owed
1 moni, otherwise
be discharged and r:
(d) The Tro
at such time 2s *5.Uftr.
the Mote Pay:lent Acc
under the Noe.5
payable to the 7qot,
stat .. interPg't r,17, t Delinquent Taxes,
• Delinque:
• ex.oeTvi..s f
(iii) All
aN5, net
borro7;i
tax Ze7771.1 tration fees on the
applied toward the
. .(iv) Any
....Treasurer from t
the un,".711ect4Y:.
aceived by the •
ca:J.e of
14
th7?reon,
used
te not
iuie
7 the
Notes
..suffitient to
the .Treas
to r,v1ha
availae
TreE;7,u
Account
. 'dOsig-aa
1989 Note
account wi
Payment Ac.,
account that
Payment Acc;.:tul
Account".) Fr!,
Payment Accour,
below in Paragr
excluded pur .
Treasurer may,
Account all or
Paragraph
(i) All
Cunty's
:;ote
interim
the 1A.9 Note
"Note 1,0:;:ynn
into the No
ts descrbed
t are not
alore., the
ayment
tnz: aecr5od below in
Dell
such monies shall not be deposited into the Note Payment
Account or otherwise pledged toward payment of the Notes.
(e) The Treasurer may by written order provide that
in the eVent Notes are issued pursuant to Article III, amounts
which would otherwise be included in the Note Payment Account
or the Note Reserve Account (or any sub-account therein for a
particular series of Note) th3.11 not include any amounts
received by the County prior te the latest maturity date of any
series of Notes previously ieLl under Article IT and/or
Article
• 705, Limited, Tax General Obliaation and Pledge, (a)
The Notes shall be the general obligation of the County, backed
by the Ceunty's full faith and credit, the County's tax
obligation (within applicable constitutional and statutory
limits) and the County's general funds, The County budget
shall provide that if the pledged monies are net collected in
sufficient Amounts to meet the payments of the principal and
interest due on the Notes, the County, before paying any other
budgeted amounts, shall promptly advance from its general funds
sufficient monies to pay such principal and interest*
(b) In addition, the monies listed below are pledged
to the repayment of the Notes and subject to Section 901,
shall be used solely for repayment of the Notes until the
principal of-, premium (if any) and interest on the Notes are
paid in full:
(i) All amounts deposited or earned in the
Project Account, until disbursed in
accordance with Section 701;
(ii) All net proceeds from the sale of the Notes
deposited or earned in the Tax Payment
Account, until disbursed in accordance with •
Section 702;
All amounts deposited in the Note Payment
• Accouat pursuant to Section 704(a);
.• • ,
(iv) • All amounts deposited in the Note Reserve
Account;
(v) All amounts earned from the investment of
monies held in the Note- Payment, Account or
the Note Feerve Account; and
• (vi)
Any monies placed in the Note Payment
Account and drawn in the discretion of the
Treasurer from unpledged sums held in
respeet of - revolving funds established
before August 1, 1985, which pledge shall be
subject to such limitations or exceptions as
shall be set forth in the written order of
the Treasurer.
(c) If the Notes shall be issued in various series
pursuant to Article V, this pledge shall in the case of any
-independently secured series extend only to monies in accounts
or tub-accounts pertaining to the particular series,
.(d) If the amounts so pledged are not sufficient to
pay the principal and interest when due, the County shall pay
the same from its general funds or other available sources.
15
line
similar
e ki it
of the Treasurer, the County may
such p.ro:.ts from the Delinquent ...•-Pursuant to written order
••
later reimb&se tfo -(
Taxes collected,
706, srl?,citv for Renewal, Refunding or Advance
Refunding Note. Renewal, rei'1 ,4 or i.',vance refund .,nq Yotes
. shall be secur: all o t the ame
securing the Notes bein.y 'i:enewad, refunded or advance
refunded The monies I . Seo7,ion 705 for the repayment
of the Notes are also pi"-' iged Lorrepayment of the principal
of, and premium, if any, and interest on any renewal, refunding
or advance refunding Notes issued pursuant to this Resolution,
and any such re .newal, refunding or ,;•vance refunding Notes
shall be the gc:nc)ral oh.l.igation of the C .:m_ty, backed by its
full faith and c .redithich shall inlvkie the tax obligation
of the County, within applicable constitutional and statutory
limits.
707. Use of FIMds_After Full Pa -.-:-ent or Provision for
Payment. After all principal of, premium, if any, and interest
on the Notes have been:::pad in full or provision therefor by
investments of pledged •Nounts in direct noncallable obliga-
tions of the United States of America in amounts and with
maturities sufficien to pRy all such premium, if
any and interes e furthel,i collection of Delin-
quent Taxes and all excess ronies in ,n .y fund or account of the
Revolving Fund, and any interest or inm• on any such amounts,
may, pursuant to written order of the Treasurer and subject to
Article V, be used for any proper purpose within the Revolving
Fun•
• V
SUP2LEMENTAL AGREEMtNTS
801, 6nppintal AcTreemonts ,d. Documents. The
Treasurer, on be17,alf -che County, is riitshzi:id to enter into
any or all of the following agrents
in the Treasurer's discretion, ce ri.-{.-.ry, desirable or
beneficial in connection with the issuarloo o - Notes, u•• such
terms andconditions .LF:s the TT .rer may fj,irmine approprte:
ramitments as may,
(a) A letter
agreement, note insu:
backup liquidity and/or
credit, repurcde
instrument, providing
the Notes;
(b) A reimbu_:-7n7rIent agreement, revolving credit
agreement, revolving or similar instrument,
setting forth repaymev..cs pf ncl security for amounts drawn
under the letter of credit, line of credit, repurchase
agreement or similar inL:trumnt;
(c) A marketing, rem
tender agent agreement o7
marketing, remarketing, 1
dealer and prescribing
with respect to the Note;
(d) A put agreement or provision allowing
pUtchaser of the Notes to require the County to repurchase
Notes upon demand at suCh time as may be provided in such
agreement or provision.
16
'keting, placement, paying or
C r agreement designating a
,,Ider or placement agent or
es of such person or persons
the
the
put
Cr e dit Note.F may be
, monthly, qtly,
(a) Interest on
payable on maturIty, or
or as othenys
v mature on one or
mati-rity date of
(b) The RiEo
more date or ,ilates
the Notes , a prrHvido6
into a re',o7%
Section 801
one or more
Notes") for
Notes or Note..
or provision,
pursuant to Art c,
accordance with the 11.1.c
anJ.
Treal:Irer. onters
to
1anc4 of
t.-]7.7edit
V2ring
;=ent
ued
in
If
'Agat
f(-) the
(the "Revolvi
7 or part ot t,
203: Bond
refunding or advancc
the unqualified opin
which solaction (
or more years,
(and any renewal,
11
:livered with
Treasurer,
be for one
902.
Treasurer is aut
Of Treasury ol
County to
Treasu re r
authc.:.sC o dk7;
exception. prior ap7
trurxt of Treasury, The
!::Ion to the Department
or(2,er permitting the
Nor:es, if the
alternatively
T',:ery for an
MISCELL:
in connecticn with
admiiE7retion
if so n -r7dd by
Or0055 if the
to the County,
901,
the NiA-e shall
fees :''o31)cted on t
•
the Tresrer,
offerlaq from oth
(c) To Trtsui:
issuance of Notes, o:cut
Note in a ma.71.m-JYT
commitment T.Ider
may substitute
another in the
provided that a
which loans and
evidenced and fur -I'
the evidencing of
shall constituti7, s
this Resolution,
of the original
Revolving C r edit
exceeding tio lending
to time in o (and
for
.c .:xicnitert is:eilaced),
to such Note on
end interel-:,t are
ing of a can and
,J11 the of any Note
7al. Note for purp7,ses of
904, Comr.leto
and complete rc.(.
each of the funds
account .or sub-accom
of all other transacti•;
sub-accounts,
derived from such fr
tr.yzial-er shall keep full
d withdrawals from
evclving Fund and any
this Resolution and
'JInds, accounts and
oc,nvy in and gain
17
905, Chargebacks, If by the date which is three
menths prior to the final maturity date of the Notes sufficient
monies are not on deposit in the Note Payment Account and the
Note Reserve Account to pay all principal of and interest on
the Notes when due, Delinquent Taxes not then paid or recovered
at or prier to the latest tax sale transacted two or more
' months before the final maturity of ti-er: Notes shall, if
, necessary to ensure full and timely payment on the date of
final maturity, be charged back to the local units in such
fashion as the Treasurer may determine, and, subject to Article
V. the proceeds of such chargebacks shall be deposited into the
County's 1989 Note Payment Account no later than five weeks
priot to the final maturity of the Notes, This Section 905
shall neybe construed to limit the authority of the Treasurer
under State law to charge back under other circumstances or at
other times,
•.906. Investments, The Treasurer is authorized to
invest all monies in the Project Account, in the Revolving Fund
or in any account or sub-account therein which is established
pursuant to this Resolution in any one or more of the invest-
ments authorized as lawful investments for counties under Act
. No. 20, Public Acts of 1943, as amended, The Treasurer is
further authorized to enter into a contract on behalf of the
• County under the Surplus Funds Investment Pool Act, Act No.
367e Michigan Public Acts of 1982, as amended, and to invest in
any investment pool created thereby monies held in the Project
Account, in the Revolving Fund, or in any account or sub-account
therein which is established pursuant to this Resolution,
907, Mutilated, Lost, Stolen or Destroyed Notes, In
the event any Note is mutilated, lost, stolen or destroyed, the
Treasurer may, on behalf of the County, execute and deliver, or
order the Registrar or Paying Agent to authenticate and
deliver, a new Note having a number not then outstanding, of
like date, maturity and denomination as that mutilated, lost,
stolen or destroyed. In the case of a mutilated Note, a
replacement Note shall not be delivered unless and until such
mutilated Note is surrendered to the Treasurer or the Registrar
or Paying Agent. In the case of a lost, stolen or destroyed
Note, a replacement Ncte shall not be delivered unless and
until the Treasurer and the Registrar or Paying Agent shall
have received such proof of ownership and loss and indemnity as
they determine to be sufficient,
ARTICLE X
TAX-EXEMPT REFUNDING
1001, Refunding of Taxable Debt, The County pres-
ently contemplates that anticipated amendments to the Internal
Revenue Code Of 1986 (the "Code") and/or the Treasury Regula-
tions issued thereunder (the "Regulations") will in the future
permit the issuance of general obligation limited tax notes on
a tax-exempt basis, and, in view of this expectation, the
County:, through the offices of the Treasurer, shall issue obli-
gations to refund any or all outstanding Notes, at the time, on
the terms, and to the exteat set forth in this Article X.
1002; Timing of Refunding-, The aforementioned
refunding obligations (the "Refunding Notes") shall be issued
after the effective date of any change in the Code, Regula-
tiens, Internal Revenue Service pronouncements or judicial
rulings which, as confirmed by the written opinion of bond
18
countel permit the refunding of all or some of the outstanding
Notes with proceeds from obligations the interest on which is
excluded from gross income for purposes of Federal income tax.
- 1003. " Extent of ofrndi_ag, SubTiect to the other
provisions of this Section 1003, the Refunding Notes shall
refund all Notes outstnIding at or after the effective date of
any change in the law described in Section 1002, This Section
1003 shall not; however be construed to require the refunding
of any Note prior to the time such Note may be refunded on a
tax-exempt basis, nor shall this Section 1003 be construed to
require the refunding of any Note, if that refunding would
result in greater cost to the County than would arise if the
Note were to remain outstanding or if in the judgment of the
Treaturer, as confirmed by the written advice of the County's
financial consultant, such refunding would not be warranted in
view of the County's then-current financial circumstances and
resources,
1004, Confirmatory Action. Subsequent to any
change in the law described in Secti o n 1002, the County Beard
shall convene to considz,r any terms of the Refunding Bonds
requiring Specific ratification by the
Mr. Chairman, on behalf of the Finance Committee,
move the adoption of the resolution.
19
(7)/7
RESOLUTION # Ho4o Feb nay 23, 190..
Moved by Caddell supported by Chester the resolution be adopted.
AYES: Calandra, Chester, Crake, Gosling, Hobart, Jensen, Johnson,
R. Kuhn, S. Kuhn, Law, Luxon, McConnell, McCulloch, McPherson, Moffitt,
Oaks, Olsen, Pappageorge, Pernick, Rewold, Skarritt, Wolf, Aaron, Caddell. (24)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution was
adopted.
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lynn D. Allen, Clerk of the County of Oakland and having a seal, do
hereby certify that I have compared the annexed copy of the attached resolution,
adopted by the Oakland County Board of Commissioners at their regular meeting
held on February 23, , 1989 with the original record thereof now remaining
on file in my office, and that it is a true and correct transcript therefrom,
and of the whole thereof.
In Testimony Whereof, I have hereunto set my hand and affixed the seal
of said County at Pontiao,Michigan this 23(d day of FetrilArY , 1989
LY9'D. ALLEN, County Clerk
Register of Deeds
76-plty C1eF