HomeMy WebLinkAboutResolutions - 1995.04.06 - 24333gr.
MIrEL-ANFouq RESOLUTION #95091 April 6, 1995
BY: FINANCE AND PERSONNEL COMMITTEE-JOHN MCCULLOCH, CHAIRPERSON
RE: TREASURER'S OFFICE
AUTHORIZATION TO BORROW AGAINST DELINQUENT 1994 TAXES
TO: THE OAKLAND COUNTY BOARD OF COMMISSIONERS
MR. CHAIRPERSON, 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
unrnliprtpd 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 that 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
antiriNtinn of the collection of those taxes by the Treasurer; and
WHEREAS, the County Board of Commissioners (the "Board") has
adopted a resolution authorizing the County's Delinquent Tax
Revolving Fund (the "Revolving Fund Program"), 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 that 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 adminiql-ratin7 fees assessed under subsection (6) of Section
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1.4
44 of Act 206) owed in 1994 to the County and the local units
(collectively, the "taxing units") that will have remained unpaid
on March 1, 1995 and the Treasurer is authorized to pledge these
amounts in addition to any amounts not already pledged for
repayment of prior series of notes (or after such prior series of
notes are retired as a secondary pledge) all as the Treasurer shall
specify in an order when the notes authorized hereunder are issued
(the "Delinquent Taxes"); and
WHEREAS, the Board has determined that in order to raise
sufficient monies to adequately fund the Revolving Fund, the County
must issue its 1995 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 be it resolved by the Oakland County Board
of Commissioners as follows:
GENERAL PROVISIONS
101. Fstahlishment of 1995 Revolving Fund. In order to
implement the rontinnatinn of the Revolving Fund Program and in
accordance with Act 206, the County hereby establishes a 1995
Delinquent Tax Revolving Fund (the "Revolving Fund") as a separate
and segregated fund within the existing Delinquent Tax Revolving
Fund of the County previously established by the Board pursuant to
Section 87b of Act 206.
102. 1-quanre of Nnt-Ps The County shall issue its 1995
General Obligation Limited Tax Notes in one or more series (the
"Notes"), in accordance with this Resolution and Sections 87c, 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 below.
103. Aggregate Amount of Notes.
(a) The Notes shall be issued in an aggregate amount to
be determined by the Treasurer in accordance with this Section.
(b) The aggregate amount of the Notes shall not be less
than the amount by which the actual or estimated Delinquent Taxes
exceeds (1J the County's participating share of Delinquent Taxes,
and (ii) any sums otherwise available to fund the Tax Payment
Account esfAbiRlied under Section 702 (including any monies held in
respect of Section 704(c)).
(c) The aggregate amount of the Notes shall not be
greater than the sum of (i) the actual amount of the Delinquent
Taxes pledged to the payment of debt service on the Notes, plus
(ii) the amount determined by the Treasurer to be allocated to a
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reserve fund. Original proceeds 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 data relevant to the current
tax year, and shall be determined based on rPI-tiflcatinn 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 may 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 certification is not
reasonably anticipated to occur to allow distribution 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 1995
Delinquent Tax Project Account and thereafter used to fund the
whole or a part of the County's 1995 Tax Payment Account, 1995 Note
Reserve Account and/or 1995 Note Payment 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 1995 Tax Payment Account, 1995 Note
Reserve Account and/or 1995 Note Payment Account, as provided in
Article VII.
105. Treasurer's Order Authorizing Notes and Establishing
aeliniquant=ax_as.. At or prior to the time any Notes are issued
pursuant to this resolution, the Treasurer, as authorized by Act
206, may issue a written order specifying the amount and character
of the Delinquent Taxes, the Article or Articles under which the
Notes are being issued and any other matters subject to the
Treasurers control under either this resolution or Act 206.
FIXED MATURITY NOTES
201. Authority. At the option of the Treasurer, exercisable
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.
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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. M11.-ity and Amnunts Notes issued pursuant to this
Article II 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 or of a series of
the Notes shall be determined by the Treasurer pursuant to written
order, but shall not be later than two years after the date of
issue. Later maturities of the Notes shall be on the first
anniversary of the preceding 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 schedule of
delinquent tax collections prepared for the tax years 1990, 1991,
1992, 1993 and, if available, 1994, 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 10q variance
between the debt service payable on each maturity date. The Notes,
and the sntislpsfsd amount of pledged monies available on such
maturity date to make payment of such debt service.
(b) Alternatively, the Notes or a series of the Notes
may be structured with a single stated maturity falling not later
than the fourth anniversary of the date of issue. 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.
204. Int_Prest R i te and Date of Record.
(a) Except as otherwise provided in this paragraph,
Notes issued pursuant to subsection (a) of Section 203 shall bear
interest payable semi-annually, with the first interest payment to
be payable on the first date, after issuance, corresponding to
the day and month on which the maturity of such Notes falls, or
(ii) if the Treasurer so orders, six months before such date. In
the event (i) any maturity of the Notes arises either less than six
months before the succeeding maturity date or less than six months
after the preceding maturity date and (ii) the Treasurer so orders
in writing, interest on the Notes shall be payable on such
succeeding or preceding maturity date. Subject to the following
sentence, Notes issued pursuant to subsection (b) of Section 203
shall, pursuant to written order of the Treasurer, bear interest
monthly, quarterly, or semiannually, as provided by written order
of the Treasurer. If Notes issued under this Article Il are sold
with a variable rate feature as provided in Article IV, such Notes
may, pursuant to written order of the Treasurer, bear interest
weekly, monthly, quarterly or on any put date, or any combination
of the foregoing, as provided by written order of the Treasurer.
(b) Interest shall not exceed the maximum rate permitted
by law.
(c7) Interest shall be mailed by first class mail to the
registered owner of each Note as of the applicable date of record,
provided, however, that the Treasurer may agree with the Registrar
(as defined below) on a different method of payment.
(d) Subject to Section 403 in the case of variable rate
Notes, the date of record shall be not fewer than 14 nor more than
31 days before the date of payment, as designated by the Treasurer
prior to the sale of the Notes.
205. Note Form. The form of Note shall be consistent with
the pregel-iptinns of this Resolution and shall reflect all material
terms of the Notes. Unless the Treasurer shall by written order
specify the contrary, the Notes shall be issued in fully registered
form both as to principal and interest, registrable upon the books
of a note registrar (the "Registrar") to be named by the Treasurer.
If the Notes are issued in bearer form the Treasurer shall appoint
a paying agent (the "Paying Agent"). (The Registrar or Paying
Agent so named may be any bank or trust company or other entity,
including the County, offering the necessary services pertaining to
the registration and transfer of negotiable securities.)
206 DpnnminntinnR And NumhPrs. The Notes shall be issued in
one or more denomination or denominations of $1,000 each or any
integral multiple of $1,000 in excess of $1,000, as determined by
the Treasurer. Notwithstanding the foregoing, however, in the
event the Notes are deposited under a book entry depository trust
arrangement pursuant to Section 208, the Notes shall, if required
by the depository trustee, be issued in denominations of $5,000
each or any integral multiple of $5,000. The Notes shall be
numbered from one upwards, regardless of maturity, in such order as
the Registrar shall determine.
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207. Transfer or Exchange of Notes.
(a) Notes issued in registered form shall be
1-1-11QferrAh1e on a note register maintained with respect to the
Notes upon surrender of the transferred Note, together with an
assignment executed by the registered owner or his or her duly
authorized attorney-in-fact in form satisfactory to the Registrar.
Upon receipt of a properly assigned Note, the Registrar shall
authenticate and deliver a new Note or Notes in equal aggregate
principal amount and like interest rate and maturity to the
designated transferee or transferees.
(b) Notes may likewise be exchanged for one or more
other Notes with the same interest rate and maturity in authorized
denominations aggregating the same principal amount as the Note or
Notes being exchanged, upon surrender of the Note or Notes and the
submission of written instructions to the Registrar or, in the case
of bearer Notes, to the Paying Agent. Upon receipt of a Note with
proper written intrurtinns the Registrar or Paying Agent shall
A'ithPrit-irAte and deliver a new Note or Notes to the owner thereof
or to owner's attorney-in-fact.
(c) Any service charge made by the Registrar or Paying
Agent for any such regitration, transfer or exchange shall be paid
for by the County as an expense of borrowing, unless otherwise
agreed by the Treasurer and the Registrar or Paying Agent. The
Registrar or Paying Agent may, however, require payment by a
noteholder of a sum sufficient to cover any tax or other
governmental charge payable in connection with any such
registration, transfer or exchange.
208. 1:14-ink .ntry nppnsitnry TruRt- At the option of the
Treasurer, and notwithstanding any contrary provision of Section
212, the Notes may be deposited, in whole or in part, with a
depository trustee designated by the Treasurer who shall transfer
ownership of interests in the Notes by book entry and who shall
issue depository trust receipts or acknowledgments to owners of
interests in the Notes. Such book entry depository trust
arrangement, and the form of depository trust receipts or
acknowledgments, shall be as determined by the Treasurer after
with the depository trustee. The Treasurer is
authorized to enter into any depository trust agreement on behalf
of the County upon such terms and conditions as the Treasurer shall
deem appropriate and not otherwise prohibited by the terms of this
Resolution. The depository trustee may be the same as the
Registrar otherwise named by the Treasurer, and the Notes may be
transferred in part by depository trust and in part by transfer of
physical (-(=.1-tifir.ql-PR as the Treasurer may determine.
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209. Redemption.
(a) Subject to the authority granted the Treasurer
pursuant to subsection (c) of this Section (in the case of fixed
rate Notes) and to the authority granted the Treasurer pursuant to
Section 404 (in the case of variable rate Notes), the Notes or any
maturity or maturities of the Notes shall be subject to redemption
prior to maturity on the terms set forth in subsection (b) below.
(b) Notes scheduled to mature after the first date on
which any Notes of the series are scheduled to mature shall be
subject to redemption, in inverse order of maturity, on each
interest payment date arising after the date of issue.
(c) If the Treasurer shall determine such action
necessary to enhance the marketability of the Notes or to reduce
the interest rate to be offered by perspective purchasers on any
maturity of the Notes, the Treasurer may, by written order prior to
the issuance of such Notes, (i) designate some or all of the Notes
as non-callable, regardless of their maturity date, and/or (ii)
delay the first date on which the redemption of callable Notes
would otherwise be authorized under subsection (b) above.
(d) Notes of any maturity subject to redemption may be
redeemed before their scheduled maturity date, in whole or in part,
on any permitted redemption date or dates, subject to the written
order of the Treasurer. Notes called for redemption shall be
redeemed at par, plus accrued interest to the redemption date,
plus, if the Treasurer so orders, a premium of not more than 1%.
Redemption may be made by lot or pro rata, as shall be determined
by the Treasurer.
(e) With respect to partial redemptions, any portion of
a Note outstanding in a denomination larger than the minimum
authorized denomination may be redeemed, provided such portion as
well as the amount not being redeemed constitute authorized
denominations. In the event less than the entire principal amount
of a Note is called for redemption, the Registrar or Paying Agent
shall, upon surrender of the Note by the owner thereof,
Aflthentiete and deliver to the owner a new Note in the principal
amount of the principal portion not redeemed.
(f) Notice of redemption shall be by first class mail
30 days prior to the date fixed for redemption, or such shorter
time prior to the date fixed for redemption as may be consented to
by the holders of all outstanding Notes to be called for
redemption. Such notice shall fix the date of record with respect
to the redemption if different than otherwise provided in this
Resolution. Any defect in any notice shall not affect the validity
of the redemption proceedings. Notes so called for redemption
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shall not bear interest after the date fixed for redemption,
provided funds are on hand with a paying agent to redeem the same.
210. Discount. At the option of the Treasurer, the Notes may
be offered for sale at a discount not to exceed 2%-.
211. LuL.Iia_arJILL_Laia. The Treasurer may, at the
Treasurer's option, conduct a public sale of the Notes after which
sale the Treasurer shall either award the Notes to the lowest
bidder or reject all bids. The conditions of sale shall be as
specified in a published Notice of Sale prepared by the Treasurer
announcing the principal terms of the Notes and the offering.
Alternatively, the Treasurer may, at the Treasurer's option,
negotiate a private sale of the Notes as provided in Act 206. If
required by law, or if otherwise determined by the Treasurer to be
in the best interest of the County, (a) the Notes shall be rated by
a national rating agency selected by the Treasurer, (b) a good
faith deposit shall be required of the winning bidder, and/or (c)
CUSIP numbers shall be assigned to the Notes. If a public sale is
conducted or if otherwise required by law or the purchaser of the
Notes, the Treasurer shall prepare or cause to be prepared and
disseminated an offering memorandum or official statement
containing all material terms of the offer and sale of the Notes.
Pursuant to any sale of the Notes, the County shall make such
filings, shall solicit such information and shall obtain such
governmental approvals as shall be required pursuant to any state
or federal law respecting back-up income tax withholding,
securities regulation, original issue discount or other regulated
matter.
212 Rxernfinn And nelvPry. The Treasurer is authorized and
directed to execute the Notes on behalf of the County by manual or
facsimile signature, provided that if the facsimile signature is
used the Notes shall be authentir'atPd by the Registrar or any
tender agent as may be appointed pursuant to Section 801(c). The
Notes shall be sealed with the County seal 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. Refund -ing or Advance Reurding Nnteg If at
any time it appears 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 procedures incidental to their issuance, shall be set subject
to Section 309 and, in appropriate cases, Article X.
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SHORT TERM RENEWABLE NOTES
301. Authority. At the option of the Treasurer, exercisable
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. Date and Maturity. The Notes shall be dated as of their
date of issuance or any prior date selected by the Treasurer, and
each issuance thereof 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. Trltprest 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 he consistent with
the p -ree-riptiong of this Resolution and shall reflect all material
terms of the Notes. The Notes shall, in the discretion of the
Treasurer and consistent with Section 205, either be payable to
bearer or be issued in registered form. If issued in registered
form, the Notes may be rnriRritntpd as book-entry securities
consistent with Section 208, notwithstanding any contrary provision
of Section 308.
305. Denomination and Numbers. The Notes shall be issued in
one or more denomination or denominations, as determined 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 obligations
of the Treasurer set forth in Section 212 respecting Fixed Maturity
Notes shall also apply to Notes issued under Article III.
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the maturity or maturities of the Renewal
the terms of sale of the Renewal Notes;
Notes;
Notes;
(v)
(vi)
309. Renewal or Refunding Notes.
(a) The Treasurer may by written order authorize the
issuance of renewal or refunding Notes (collectively the "Renewal
Notes"). Renewal Notes shall be sold on the maturity date of, and
the proceeds of the Renewal Notes shall be applied to the payment
of debt service on, Notes to be renewed. The maturities and
repayment terms of the Renewal Notes shall be set by written order
of the Treasurer.
()::) In the order authorizing Renewal Notes, the
Treasurer shall specify whether the Notes shall be issued in
accordance with this Article III, in which event the provisions of
Article III shall govern the issuance of the Notes, or whether the
Notes shall be issued in accordance with Article II, in which event
the provisions of Article II shall govern the issuance of the
Notes. The order shall also provide for and shall also govern with
respect to:
(i) the aggregate amount of the Renewal Notes;
(ii) the date of the Renewal Notes;
(iii) the denominations of the Renewal Notes;
(iv) the interest payment dates of the Renewal
(vii) whether any Renewal Notes issued in accordance
with Article II shall be subject to redemption and, if so, the
terms thereof; and
(viii) any other terms of the Renewal Notes consistent
with, but not specified in, Article II or Article III.
(c) Regardless of whether Renewal Notes need be
approved by prior order of the Department of Treasury, the
Treasurer, pursuant to Section 89(5)(d) of Act 206, shall promptly
report to the Department of Treasury the issuance of any Renewal
Notes.
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IV.
VARIABLE INTEREST RATE
401. Variable Rate Option. At the option of the Treasurer,
exercisable by written order, the Notes, whether issued pursuant to
Article II or Article III, may be issued with a variable interest
rate, provided that the rate shall not exceed the maximum rate of
interest permitted by law.
402. Determination of Rate. The order of the Treasurer shall
provide how often the variable interest rate shall be subject to
le.r.AirelAtine, the formula or procedure for determining the
variable interest rate, whether and on what terms the rate shall be
determined by a remarketing agent in the case of demand obligations
consistent with Section 801(d), and whether and on what terms a
fixed rate of interest may be converted to or from a variable rate
of interest. Such formula or procedure shall be as determined by
the Treasurer, but shall track or float within a specified
percentage band around the rates generated by any one or more of
the following indices:
(i) Publicly reported prices or yields of obligarinns
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 unimpaired
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. DAI,g=1.1a11=EacQXL.. The Date of Record shall be not fewer
than one nor more than 31 days before the date of payment, as
designated by written order of the Treasurer.
404, Redemption. Notwithstanding any contrary provision of
sehppetinnq (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
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pursuant to written order of the Treasurer. Notes shall not be
subject to redemption more frequently than monthly.
405. Remarketing, Repurchase and Resale.
(a) In the event Notes issued under this Article IV are
constituted as demand obligations, the interest rate on the Notes
shall be governed by, and shall be subject to, remarketing by a
remarketing agent appointed in accordance with Section 801(c),
under the terms of a put agreement employed in accordance with
Section 801(d).
(b) The County shall be authorized, consistent with Act
206 and pursuant to order of the Treasurer, to partiripate 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. Any
purchase of Notes pursuant to this subsection (b) shall be made
with unpledged monies drawn from revolving funds established by the
County in connection with retired general obligation limited tax
notes.
V.
MULTIPLE SERIES
501. .T.au -1.rfr_anal.j.ipar.,&.,,Lie.,,u, At the option of the
Treasurer, exPrrinAhlP by written order, the Notes issued under
Article II, Article III or Article X 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
eworriqable 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 Resolution in
all respects (and the term "Notes" shall be deemed to include each
series of Notes throughout this Resolution), provided that:
(a) The aggregate principal amount of the Notes of all
series shall not exceed the maximum aggregate amount permitted
under Section 103;
(b) Each series shall be issued pursuant to Article II
or Article III, and different series may be issued pursuant to
different Articles;
(c) Each series shall be issued pursuant to Section 502
or Section 503, and different series may be issued pursuant to
different Sections;
(d) A series may be issued under Article II for one,
two, or three of the annual maturities set forth in Article II with
the balance of the annual maturities being issued under Article II
or under Article III in one or more other series, provided that the
minimum annual maturities set forth in Section 203 shall be reduced
and applied pro rata to all Notes so issued; and
;e) The Notes of all series issued pursuant to Article
II above shall not, in aggregate, mature in amounts or on dates
exceeding the maximum authorized maturities set forth in Section
203.
502. Seles secured Par' Pass. If the Notes are issued in
multiple series pursuant to this Article V, each series of Notes
may, by written order of the Treasurer, be secured pan i passu with
the other by the security described in and the amounts pledged by
Article VII below. Moreover, such security may, pursuant to
further order of the Treasurer, be segregated in accordance with
the following provisions.
(a) The Treasurer may by written order establish
separate sub-accounts in the County's 1995 Note Reserve Account for
each series of Notes, into which shall be deposited the amount
borrowed for the Note Reserve Account for each such series.
(b) The Treasurer may by written order establish
separate sub-accounts in the County's 1995 Note Payment Account for
each series of Notes, and all amounts deposited in the Note Payment
Account shall be allocated to the sub-accounts.
(c)(i) In the event separate sub-accounts are
established pursuant to subsection (b) above, and subject to
Paragraph (ii) below, the percentage of deposits to the County's
1995 Note Payment Account allocated to each sub-account may be set
equal to the percentage that Notes issued in the corresponding
series bears to all Notes issued under this Resolution or to any
other percentage designated by the Treasurer pursuant to written
order; provided that if the various series are issued at different
times or if the various series are structured with different
maturity dates, (I) sums deposited in the Note Payment Account
prior to the issuance of one or more series may upon the issuance
of each such series be reallocated among the various sub-accounts
e9tai-eher1 under Subsection (b) above to achieve a balance among
the sub-accounts proportionate to the designated percentage alloca-
tion, and/or (II) deposits to the Note Payment Account may be
allocated among the sub-accounts according to the total amount of
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debt service that will actually be paid from the respective sub-
accounts.
(ii) Alternatively, the Treasurer may, by written
order, rank the sub-accounts established under Subsection (b) above
in order of priority, and specify that each such sub-account shall
receive deposits only after all sub-accounts having a higher
priority have received deposits sufficient to discharge all (or any
specified percentage of) Notes whose series corresponds to any of
the sub-accounts having priority.
(d) In the absence of a written order of the Treasurer
to the contrary, the amounts in each sub-account established
pursuant to this Section 502 shall secure only the Notes issued in
the series for which such sub-account was establisher', until such
Notes and interest on such Notes are paid in full, after which the
amounts in such sub-account may, pursuant to written order of the
Treasurer, be added pro rata to the amounts in the other sub-
accounts and thereafter used as part of such other sub-accounts to
secure all Notes and interest on such Notes for which such other
sub-accounts were created, until paid in full. Alternatively,
amounts held in two or more sub-accounts within either the Note
Reserve Account or the Note Payment Account may be commingled, and
if commingled shall be held pan i passu for the benefit of the
holders of each series of Notes pertaining to the relevant sub-
accounts.
303 qpripp Tndependenl-ly SerurRd. If the Notes are issued
in multiple series pursuant to this Article V, each series of Notes
may, by written order of the Treasurer, be independently secured in
accordance with this Section 503.
(a) Each series of Notes shall pertain to one or more
taxing units, as designated by the Treasurer pursuant to written
order, and no two series of Notes shall pertain to the same taxing
unit. A school district, intermediate school district, or
community college district extending beyond the boundaries of a
city in which it is located may, pursuant to written order of the
Treasurer, be subdivided along the boundaries of one or more cities
and each such subdivision shall be deemed a taxing unit for
purposes of this Section 503.
(b) Separate sub-accounts shall be established in the
County's 1995 Tax Payment Account. Each sub-account shall receive
the proceeds of one and only one series of Notes, and amounts shall
be disbursed from the sub-account to only those taxing units
designated as being in that series.
(c) In the event Notes are issued for deposit into the
Project Account established under Section 701, separate sub-
accounts shall be Pqt-1-11shf-ri in the Project Account. Each sub-
14
account shall receive the proceeds of one and only one series of
Notes, and amounts shall be disbursed from the sub-account only to
accounts, sub-accounts and/or taxing units designated as being in
the series co=asponailag to the sub-account from which disbursement
is being made.
(d) A separate sub-account shall be established in the
County's 1995 Note Reserve Account for each series of Notes, into
which shall be deposited the amount determined by the Treasurer
under Section 103 or Section 703 with respect to the series. Each
sub-account shall secure one and only one series.
(e) A separate sub-account shall be established in the
County's 1995 Note Payment Account for each series of Notes. Each
sub-account shall be allocated only those amounts described in
Section 704 which pertain to the taxing units included in the
series er)rrepenrileg to the sub-account. Chargebacks received from
a taxing unit pursuant to Section 905 shall be deposited in the
sub-account corresponding to the series in which the taxing unit is
included. Amounts held in each sub-account shall secure the debt
epra,sent.ed by only those Notes included in the series
er,,-,-.-ereNneling to the sub-account, and disbursements from each sub-
account may be applied toward the payment of only those Notes
included in the series CULDIEEIJEUth= to the sub-account.
(f) The amounts in each sub-account established
pursuant to this Section 503 shall secure only the Notes issued in
the series for which such sub-account was established until such
Notes and interest on such Notes are paid in full, after which any
amounts remaining in such sub-account shall accrue to the County
and shall no longer be pledged toward payment of the Notes.
VI.
TAXABILITY OF INTEREST
601. Federal Tax. The County acknowledges that the current
state of Federal law mandates that the Notes be structured as
taxable nhligei-ielfle Consequently, the Notes shall, subject to
Article X, be issued as obligations the interest on which is not
excluded from gross income for purposes of Federal income tax.
602. State of Michigan Tax. Consistent with the treatment
accorded all obligations issued pursuant to Act 206, interest on
the Notes shall be exempt from the imposition of the State of
Michigan income tax and the State of Michigan single business tax,
and the Notes shall not be subject to the State of Michigan
intangibles tax.
15
603. r hnoua_iII_ELIgIal_Laac„staL11„a. In the event there is a
change in the Federal tax law or regulations, a ruling by the U.S.
Department of Treasury or Internal Revenue Service establishes that
the Notes may be issued as exempt from Federal income taxes or a
change in Michigan law causes the Notes in the opinion of counsel
to be exempt from federal income taxes, the Notes may be so issued.
VII.
FUNDS AND SECURITY
701. ae1jx.LiligLI_Te.c.1_11r.c.a-.=. If the Notes are issued
and sold before the Treasurer has received ce,--tifcRtion from the
taxing units of the amount of the Delinquent Taxes and if such
rtifiratinn is not reasonably anticipated in time to allow
distribution of the proceeds of the Notes within 20 days after the
date of issue, a 1995 Delinquent Tax Project Account (the "Project
Account") shall be established by the Treasurer as a separate and
distinct fund of the County within its general fund. The Project
Account shall receive all proceeds from the sale of the Notes,
including any premium or accrued interest received at the time of
sale. The Project Account shall be held in trust by an escrow
agent until the monies therein are disbursed in accordance with
this Article VI:. The escrow agent shall be a commercial bank,
shall be located in Michigan, shall have authority to exercise
trust powers, and shall have a net worth in excess of $25,000,000.
The form and content of the agreement between the County and the
escrow agent shall be approved by the Treasurer. Subject to the
following sentence, monies deposited in the Project Account shall
be expended only (i) for the purpose of funding the Tax Payment
Account eqi-Ahliqherl under Section 702 and (ii) to the extent
permitted by Act 206, for the purpose of paying 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 trangferrpd to either the 1995 Note Reserve
Account created under Section 703 or the 1995 Note Payment Account
created under Section 704. Monies in the Project Account may be
disbursed by the escrow agent to the County's 1995 Tax Payment
Account at any time and from time to time, upon receipt of a
written regnisition signed by the Treasurer.
702. 1.1,1iZ24003p..=-12if.r.Lu=. The County's 1995 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
16
included in the Project 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, from the proceeds of a tax exempt borrowing or
from the proceeds of a taxable 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 borrowed funds and which shall receive funds otherwise
contributed by the County,
703. 1995 Note Reserve Account. In the event funding is
provided as described in this Section 703, the Treasurer shall
establish a 1995 Note Reserve Account (the "Note Reserve Account")
as a distinct account within the Revolving 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 1995
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 sufficient to retire the Notes and accrued
interest thereon, the Treasurer may order that the Note Reserve
Account be used to purchase the Notes on the market, or, if the
Notes are not available, to retire the Notes when due. If so
ordered by the Treasurer, all or any specified portion of the Note
Reserve Account may be applied toward the redemption of any Notes
designated for redemption in accordance with Section 209.
17
704. 995 Note Payment Account.
a) The County's 1995 Note Payment Account is hereby
p9 e 0 1-,11Qhr1 as a distinct account within the Revolving Fund. (The
County's 1995 Nate Payment Account, as supplemented by monies held
in any interim account that are designated for transfer to the 1995
Note Payment Account, is herein referred to as the "Note Payment
Account".) The Treasurer is directed to deposit into the Note
Payment Account, promptly on receipt, those amounts described below
in Paragraphs (i), (ii), (iv), and (v) that are not excluded
pursuant to Subsection (c) below. Furthermore, the Treasurer may,
by written order, deposit into the Note Payment Account all or any
portion of the amounts described below in Paragraph (iii).
(i) All Delinquent Taxes.
(ii) All statutory interest on the Delinquent Taxes.
(iii) All property tax adaHnistration fees on the
Delinquent Taxes, net of any amounts applied toward the expenses of
this borrowing.
(iv) Any amounts that are received by the Treasurer
from the taxing units within the County because of the
unrn-lphility of the Delinquent Taxes.
(v) Any amounts remaining in the Project Account
after the transfers to the Tax Payment Account and Note Reserve
Account have been made as specified in Sections 702 and 703.
(b) Monies in the Note Payment Account shall be used by
the County to pay principal of, premium, if any, and interest on
the Notes as the same become due and payable.
(c) (i) The Treasurer may by written order provide that
only a portion of the sums described above in Subsection (a) shall
be deposited into the Note Payment Account and applied toward the
payment of debt service on the Notes, in which event those sums
which are withheld from the Note Payment Account shall be deposited
into the Tax Payment Account or, pursuant to further order of the
Treasurer, applied toward any other purpose consistent with Act
206. The portion of any sums described in Subsection (a) which are
withheld from the Note Payment Account pursuant to this Subsection
shall be determined in accordance with the following Paragraph.
(ii) Prior to the issuance of the Notes, the Treasurer
may by written order specify a cut-off date not earlier than March
1, 1995, and only those sums payable to the Note Payment Account
and received by the County after the cut-off date shall be applied
to the Note Payment Account.
18
(d) The Treasurer may by written order provide that at
such time as sufficient funds shall have been deposited into the
Note Payment Account to pay all remaining amounts owed under the
Notes the pledge on any additional monies otherwise payable to the
Note Payment Account shall be discharged and 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 that
would otherwise be included in the Note Payment Account or the Note
Reserve Account (or any sub-account therein for a particular series
of Notes) shall not include any amounts received by the County
prior to the latest maturity date of any series of Notes previously
issued under Article II and/or Article III.
7C5. Limited Tax General Obligation and Pledge.
(a) The Notes shall be the general obligation of the
County, backed by the County's full faith and credit, the County's
tax obligation (within applicable conRtitntinnal and statutory
limits) and the County's general funds. The County budget shall
provide that if the pledged monies are not 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 any 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;
(iii) All amounts deposited in the Note Payment
Account 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 Reserve
Account; and
19
0 ELCI Pavme on
(vi) Any supplemental monies placed in the Note
Payment Account and drawn in the discretion of the Treasurer from
unpledged sums on the revolving funds, 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
inAgTi-nrien -ly secured series extend only to monies in accounts or
sub-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. Pursuant to
written order of the Treasurer, the County may later reimburse
itself for such payments from the Delinquent Taxes collected.
706. c(t0nrity for Renewal. Refunding or Advance Refunding
Notes. Renewal, refunding, or advance refunding Notes shall be
secured by all or any portion of the same security securing the
Notes being renewed, refunded or advance refunded. The monies
pledged in Section 705 for the repayment of the Notes are also
pledged for the repayment of the principal of, premium, if any, and
interest on any renewal, refunding, or advance refunding Notes
issued pursuant to this Resolution, and any such renewal,
refunding, or advance refunding Notes shall be the general
obligation of the County, backed by its full faith and credit,
which shall include the tax obligation of the County, within
applicable rnnqtitntinnpl and statutory limits.
707.
Payment. After all principal of, premium, if any, and interest on
the Notes have been paid in full or provision therefor by
investments of pledged amounts in direct noncallable obligations of
the United States of America in amounts and with maturities
sufficient to pay all such principal, premium, if any, and interest
when due, any further collection of Delinquent Taxes and all excess
monies in any fund or account of the Revolving Fund, and any
interest or income 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 Fund including the securing of
subsequent issues of notes.
VIII.
SUPPLEMENTAL AGREEMENTS
801. ;Supplemental Agreements and Documents. The Treasurer,
on behalf of the County, is authorized to enter into any or all of
the following agreements or commitments as may, in the Treasurer's
discretion, be necessary, desirable or beneficial in connection
20
with the issuance of the Notes, upon such terms and conditions as
the Treasurer may determine appropriate:
(a) A letter of credit, line of credit, repurchase
agreement, note insurance, or similar instrument, providing backup
liquidity and/or credit support for the Notes;
(b) A reimbursement agreement, revolving credit
agreement, revolving credit note, or similar instrument, setting
forth repayments of and security for amounts drawn under the letter
of credit, line of credit, repurchase agreement or similar
instrument;
(c) A marketing, remarketing, placement,
'Itlig.nt-lratng, paying or tender agent agreement or dealer
agreement designating a marketing, remarketing, authenticating,
paying, tender or placement agent or dealer and prescribing the
duties of such person or persons with respect to the Notes; and
(d) A put agreement or provision allowing the purchaser
of the Notes to require the County to repurchase the Notes upon
demand at such times as may be provided in such put agreement or
provision.
e) An agreement to use amounts formerly pledged to
other years borrowings as security for the Notes when no longer so
pledged.
802. Revolving Credit Notes. If the Treasurer enters into a
revolving credit agreement (the "Agreement") pursuant to Section
801 above, the Agreement may call for the issuance of one or more
revolving credit notes (the "Revolving Credit Notes") for the
purpose of renewing all or part of maturing Notes or Notes that
have been put pursuant to a put agreement or provision. Such
Revolving Credit Notes shall be issued pursuant to Article II or
II:, as apprnprHate, and in accordance with the following
provisions:
(a) Interest on the Revolving Credit Notes may be
payable on maturity, on prior redemption, monthly, bi-monthly,
quarterly, or as otherwise provided in the Agreement.
(b) The Revolving Credit Notes may mature on one or
more date or dates not later than the final maturity date of the
Notes, as provided in the Agreement.
(c) The Treasurer may, at the time of the original
issuance of the Notes, execute and deliver one Revolving Credit
Note in a maximum principal amount not exceeding the lending
commitment under the Agreement from time to time in force (and may
substitute one such Note in a lesser principal amount for another
in the event the lending commitment is reduced), provided that a
21
V
schedule shall be attached to such Note on which loans and
repayments of principal and interest are evidenced and further
provided that the making of a loan and the evidencing of such loan
on the schedule of any such Note shall constitute the issuance of
a renewal Note for purposes of this Resolution.
IX.
MISCELLANEOUS PROVISIONS
901. Expenses. Expenses incurred in connection with the
Notes shall be paid from the property tax administration fees
collected on the Delinquent Taxes and, if so ordered by the
Treasurer, from any earnings on the proceeds of the offering or
from other monies available to the County.
902 Application to Department of Treasury. The Treasurer is
authorized to make appliratinn to the Department of Treasury on
behalf of the County for an order permitting the County to make
this borrowing and issue the Notes. If the Treasurer deems it
approp-inte, the Treasurer is alternatively authorized to apply to
the Department of Treasury for an exception to prior approval.
903. Bond Counsel. The Notes (and any renewal, refunding or
advance refunding Notes) shall be delivered with the unqualified
opinion of John R. Axe and Associates, which selection of bond
counsel may, at the option of the Treasurer, be for one or more
years,
904. LiQ,4,ia1_LQL,alalLALLa Municipal Financial Consultants
:ncorro -rat-Pci, Grosse Pointe Farms, Michigan, is hereby retained to
act as financial consultant and advisor to the County in connection
with the sale and delivery of the Bonds.
905. Complete Records. The Treasurer shall keep full and
complete records of all deposits to and withdrawals from each of
the funds and accounts in the Revolving Fund and any account or
sub-account created pursuant to this Resolution and of all other
trAmgArtinrs relating to such funds, accounts and sub-accounts,
including investments of money in, and gain derived from, such
funds and accounts.
906. Chargebacks. If, by the date which is three months
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 prior to the
latest tax sale transacted two or more months before the final
maturity of the 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
22
ED <e mu CLCLIAaCi__O
to Article V, the proceeds of such chargebacks shall be deposited
into the County's 1995 Note Payment Account no later than five
weeks prior to the final maturity of the Notes. This Section 905
shall not be construed to limit the authority of the Treasurer
under State law to charge back under other circumstances or at
other times.
907. 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 that is astahlishad pursuant to this
Resolution in any one or more of the investments 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, 367, 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 astahlishElki pursuant to
this Resolution.
908. Metflated. 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
flrl-Pnc1-Pc3 to the Treasurer or the Registrar or Paying Agent. In
the case of a lost, stolen, or destroyed Note, a replacement Note
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 NOTES OR REFUNDING
1001.
Debt. The County acknowledges that the current state of Federal
law precludes the issuance of the Notes as obligations the interest
on which is exempt from Federal income tax. However, the County
presently contemplates that anticipated amendments to the Internal
Revenue Code of 1986 (the "Code") and/or the Treasury Regulations
issued thereunder (the "Regulations") or a change in Michigan law
changing the character of the Notes may 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 tax-exempt notes or issue
nh1 r-nc to refund any or all outstanding Notes issued as
23
•
taxable obligations, at the time, on the terms, and to the extent
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, Regulations, Internal
Revenue Service pronouncements or judicial rulings which, as
confirmed by the written opinion of bond counsel, 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 Refunding. Subject to the other provisions
of this Section 1003, the Refunding Notes shall refund all Notes
outstanding at or after the effective date of any change in the law
described in Section 1002. This Section 1003 hall 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
(including interest expense, professional fees and administrative
outlays) than would arise if the Note were to remain outstanding.
1004. Confirmatory Action_ Subsequent to any change in the
law described in Section 1002, the Board shall convene to consider
any terms of the Refunding Bonds requiring specific ratification by
the Board.
1005. Xrbitrage Covenant and Tax Law Compliance. In the
event tax-exempt Notes or Refunding Notes are issued pursuant to
this Article X, the following covenants shall be observed by the
County:
(i) the County will make no use of the proceeds
of the Notes or Refunding Notes and will undertake no other
intentional act with respect to the Notes or Refunding Notes which,
if such use or act had been reasonably expected on the date of
issuance of the Notes or Refunding Notes or if such use or act were
intentionally made or undertaken after the date of issuance of the
Notes or Refunding Notes, would cause the Notes or Refunding Notes
to be "arbitrage bonds," as defined in Section 148 of the Internal
Revenue Code of 1986, as amended (the "Code"), in the Regulations
promulgated under Sections 103 and 148 of the Code or in any
successor or supplementary provision of law ;IPrPinafter
promulgated,
(ii) the County will undertake all actions as shall
he necessary to maintain the Notes or Refunding Notes as
obligations the interest on which qualifies for the tax exemption
provided by Section 103(a) of the Code, including, where
PlepneTveln -e and without limitation, filing informational returns
24
• *i• .•
with the Secretary of Treasury, keeping accurate account of all
monies earned in any fund, account or sub-account authorized by
this Resolution or any resolution adopted in accordance with
Section 1004 above, certifying cumulative cash flow deficits of the
County and the local units, and investing any required portion of
the gross proceeds of the Notes or Refunding Notes, whether on
behalf of the County or the local units, in tax-exempt obligations
or State and Local Government Series obligations, and
(iii) the County will make timely payment to the
United States of any investment earnings, realized by the County on
the gross proceeds of the Notes or Refunding Notes, as may be
subject to rebate under Section 148(f) of the Code, and, to the
extent required under applicable law or deemed by the Treasurer to
be in the best interest of the County pursuant to written order,
the County's obligation to make such payment to the United States
shall also account for excess investment earnings realized by local
units on all or a portion of the gross proceeds distributed to, and
held by, the local units pursuant to Section 702.
(iv) the Treasurer shall be directed to take such
actions and to enter into such agreements and rertifinstinnR, on
behalf of the County, as the Treasurer shall deem necessary or
appropriate to comply with the foregoing covenants.
Mr. inAirperROTU on behalf of the Finance and Personnel Committee,
move the adoption of the foregoing resolution.
FINANCE AND PERSONNEL COMMITTEE
25
Resolution #95091 April 6, 1995
Moved by McCulloch supported by Kingzett the resolution be adopted.
AYES: Devine, W.ngeldey, Douglas, Garfield, Holbert, Huntoon, Jacobs,
Jensen, Johnson, Kaczmar, Kingzett, Law, McCulloch, McPherson, Moffitt, Obrecht,
Palmer, Pernick, Powers, Schmid, Taub, Wolf, Amos, Crake. (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, do hereby certify that the
foregoing resolution is a true and accurate copy of a resolution adopted by the
Oakland County Board of Commissioners on April 6, 1995 with the original record
thereof now remaining in my office.
In Testimony Whereof, I have hereunto Set my hand and affixed the seal of the
County of Oakland at Pontiac, Michigan this 6th day ttApril
D. Allen, County Clerk