HomeMy WebLinkAbout66-82 Ordinance
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ORDINANCE NO. ~ t - ~ 2-
AN ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF $1,910,000
OF THE VILLAGE OF DUBLIN, OHIO INDUSTRIAL DEVELOPMENT FIRST
H>RTGAGE REVENUE BONDS (MEDICAL FACILITIES PR.OJECT) (GRANT
HOSPITAL - GUARANTOR) FOR THE PURPOSE. OF MlnNG A LOAM TO
I ASSIST KENNETH N. CARPENTER, PATRICIA A. CARPENTER AND
DUBLIN MEDICAL CLINIC, INC. IN THE FINANCING OF COSTS.. OF A
"PROJECT" WITHIN THE MEANING OF CHAPTER 165,OHIO REVISED
CODE; AUTHORIZING THE ISSUANCE OF ADDITIONAL BONDS; AND
AUTHORIZING THE EXECUTION AND DELIVERY OF A LOAN AGREEMENT
PERTAINING TO THE PROJECT AND THE EXECUTION AND DELIVERY OF
A TRUST INDENTURE SECURING THE PAYMENT OF SAID BONDS; AND
DECLARING AN EMERGENCY.
WHEREAS, the Village of Dublin, Ohio, a municipal corporation and
political subdivision duly organized and validly existing under the laws of
the State of Ohio, by virtue of the laws of said State, including Section 13
of Article VIII, Ohio Constitution, and the Act, is authorized and empowered,
among other things, (a) to issue its revenue bonds for the purpose of making
a loan to assist in the financing of costs of acquiring, constructing,
installing, equipping or improving a "project", as defined in Section 165.01,
Ohio Revised Code, comprising a commercial facility, located within the
boundaries of the Village of Dublin, Ohio, (b) to enter into a loan agreement
and to provide for "revenues", as defined in said Section 165.01, sufficient
to pay the principal of and premium, if any, and interest on such revenue
bonds, (c) to secure such revenue bonds by a trust indenture as provided for
herein and (d) to enact this Bond Legislation and enter into the Indenture
and the Agreement all as hereinafter defined, upon the terms and conditions
provided herein and therein;
I NOW THEREFORE, BE IT ORDAINED by the Village Council of the Village
of Dublin, State of Ohio, that:
Section 1. Definitions. In addition to the words and terms else-
where defined in this Bond Legislation, in the Indenture or in any other
document the following words and terms as used in this Bond Legislation and
in the Indenture shall have the following meanings unless the context or use
clearly indicates another meaning or intent:
"Act" means Chapter 165, Ohio Revised Code, as enacted and amended
pursuant to Section 13 of Article VIII, Ohio Constitution.
"Additional Bonds" means Bonds of the Issuer which may be issued
under Section 8 of this Bond Legislation.
"Additional NOtes" means any non-negotiable promissory note or
notes, in addition to the Project Note, delivered by the Borrowers to the
Trustee in connection with the issuance of Additional Bonds, as provided in
the Agreement.
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"Agreeaent" aeans the Loan Agreeaent between the Issuer and the
Borrowers, dated as of December 1, 1982, as from time to time duly amended or
supplemented.
"Authorized Borrowers Representative" aeans the person at the time
designated pursuant to the Agreeaent to act on behalf of the Borrowers.
"Bond" or "Bonds" aeans the Project Bonds and any Additional Bonds.
I "Bond Fund" means the Bond Fund created by Section 7 hereof.
"Bondholder" or "holder" or "holder of Bonds" aeans the bearer of a
coupon Bond which is not registered as to principal or the principal of which
is registered to bearer, or the person in whose name a registered Bond is
registered, and "holder" when used with reference to a coupon means the
bearer of the coupon.
"Bond Legislation" aeans (a) when used with reference to the Project
Bonds, this ordinance; (b) when used with reference to an issue of Additional
Bonds, this ordinance to the extent applicable and the legislation providing
for the issuance of such Additional Bonds; and (c) when used with reference
to Bonds when Additional Bonds are outstanding, this ordinance and the
legislation providing for the issuance of Additional Bonds; all as from time
to time duly amended or supplemented.
"Bond service charges" aeans, for any time period, the principal of
and premium, if any, and interest on the Bonds for such tiae period.
"Borrowers" aeans the Company and the Individual Borrowers.
"Capitalized Interest Payment" means an amount from the proceeds of
the Project Bonds deposited into the Bond Fund equal to the interest accrued
I on the Project Bonds from December 1, 1982 to August 1, 1983, which amount
shall be applied to the payment of interest accruing on the Project Bonds
during the Construction Period.
"Code" means the Internal Revenue Code of 1954, as amended, and
references to the Code and Sections of the Code shall include relevant
regulations and proposed regulations thereunder and any sucessor provisions
to such Sections, regulations or proposed regulations.
"Company" aeans Dublin Medical Clinic, Inc., a professional
corporation for profit duly organized and validly existing under the laws of
the State, and its lawful successors and assigns.
"Completion Date" means the date of completion of the Project to be
furnished by the Borrowers pursuant to Section 3.6 of the Agreement.
"Construction Fund" means the Construction Fund created by Section 6
hereof.
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"Construction Period" means the period between the beginning of the
acquisition, construction, installation, equipment or improvement of the
Project or the date on which the Project Bonds are delivered to the Original
Purchaser, whichever is earlier, and the Completion Date.
"Coupon" or "interest coupon" means any of the coupons issued here-
under evidencing the installments of interest on the applicable coupon Bond.
I "Coupon Bond registered as to principal" means any coupon Bond at
the time registered as to principal in the name of the Bondholder.
"Eligible Investments" means (i) obligations issued or guaranteed by
the United States of America or by any person controlled or supervised by or
acting as an instrumentality of the United States of America pursuant to
authority granted by Congress; (ii) obligations issued or guaranteed by any
state or political subdivision thereof rated A or MIG 1, as applicable, or
higher by Mbody's Investors Serviee, Inc. or by Standard & Poor's
Corporation, both of New York, New York, or their successors; (iii)
commercial or finance paper which is rated in the highest rating category by
a nationally recognized rating agency; (iv) interest bearing deposit accounts
(which may be represented by bankers' acceptances, certificates of deposit or
bearer deposit notes) in one or more banks, trust companies or savings and
loan associations, including the Trustee or any bank affiliated with the
Trustee organized under the laws of Canada, the United States of America or
any state thereof, each having a reported capital and surplus of at least
$25,000,000 in dollars of the United States of America; (v) repurchase
agreements of a bank, including the Trustee or any bank affiliated with the
Trustee or savings and loan association fully secured by obligations of the
type specified in (i) above; provided that any such investment or deposit is
not prohibited by applicable law; and (vi) shares of an investment company
registered under the Investment Company Act of 1940, as amended, the assets
of which are invested in any or all of the categories of investments
I specified above.
"Executive" means the Village Manager of the Issuer.
"Fiscal Officer" means the Director of Finance of the Issuer.
"Guarantor" means Grant Hospital, a corporation not for profit duly
organized and validly existing under the laws of the State.
"Guaranty" means the Guaranty Agreement between the Guarantor and
the Trustee, dated as of December 1, 1982, with respect to the Project Bonds,
as from time to time duly supplemented or amended.
"Indenture" means the Trust Indenture between the Issuer and the
Trustee, dated as of December 1, 1982, including this Bond Legislation as
part thereof, as from time to time duly amended or supplemented.
"Individual Borrowers" means Kenneth N. Carpenter and Patricia A.
Carpenter, husband and wife, of 1474 Bridgeton Drive, Columbus, Ohio 43220
and their respective heirs, executors, personal representatives and assigns.
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"Interest Payment Date" means, as to the Project Bonds, each June 1
and December 1, c01llllencing June 1, 1983 and, as to Additional Bonds, the
dates designated as such by or pursuant to the applicable Bond Legislation.
"Issuer" means the Village of Dublin, Ohio.
I "Legal Officer" means the Director of Law of the Issuer.
"Legislative Authority" means the Village Council of the Issuer.
"Loan" means the loan by the Issuer to the Borrowers of the proceeds
from the sale of the Bonds, after deducting any accrued interest paid by the
Original Purchaser.
"Loan Payments" means the 8IDOunts required to be paid by the
Borrowers in repayment Qf the Loan pursuant to the provisions of Section 4.1
of the Agreement.
"MOrtgage" means the Open-End MOrtgage and Security Agreement, dated
as of December 1, 1982, and given by the Individual Borrowers to the Trustee
to secure performance of the Agreement, as from time to time duly amended or
supplemented.
"Notes" means the Project Note and any Additional Notes.
"Original Purchaser" means, as to the Project Bonds, The Ohio
Company, Columbus, Ohio, and, as to Additional Bonds, the person or persons
identified as such in the applicable Bond Legislation.
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"Outstanding Bonds" or "Bonds outstanding" or "outstanding" as
t applied to Bonds, means, as of any date, all Bonds which have been authenti-
cated and delivered by the Trustee under the Indenture except:
(a) Bonds surrendered for and replaced upon exchange or
.. transfer, or cancelled because of payment or redemp-
tion prior to maturity, at or prior to such date;
(b) Bonds for the payment, redemption or purchase for
cancellation of which sufficient moneys have been
deposited prior to such date with the Trustee (whe-
ther upon or prior to the maturity or redemption date
of any such Bonds), or which are deemed to have been
paid and discharged pursuant to the provisions of the
Indenture; provided that if such Bonds are to be
redeemed prior to the maturity thereof, notice of
such redemption shall have been given or arrangements
to the reasonable satisfaction of the Trustee shall
have been made therefor, or waiver of such notice
satisfactory in form to the Trustee shall have been
filed with the Trustee; and
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(c) Bonds in lieu of which others have been authenticated
(or payaent, when due, of which is made without
replacement) under Section 2.05 of the Indenture.
"Paying Agent" means, as to the Project Bonds, the Trustee, and, as
to Additional Bonds, any bank or trust company designated as such by or
pursuant to the applicable Bond Legislation, and their successors aesignated
I pursuant to the Indenture.
"Person" or words importing persons mean and include firms, associa-
tions, partnerships (including limited partnerships), societies, trusts (pub-
lic or private), corporations or other legal entities including public or
governmental bodies, as well as natural persons.
"Project" means (a) the real estate at the time comprising the
Project Site as defined in the Agreement and (b) the real and personal prop-
erty at the time comprising the Project Facilities as defined in the Agree-
ment, together constituting a "project" as defined in the Act.
"Project Bonds" means the $1,910,000 Industrial Development First
MOrtgage Revenue Bonds (Medical Facilities Project) (Grant Hospital -
Guarantor) of the Issuer authorized in Section 3 hereof.
"Project Note" means the non-negotiable pro1Dissory note of the
Borrowers in the form attached to the Agreement as Exhibit A, in the
principal amount of $1,910,000 evidencing the obligation of the Borrowers to
Dl4ke Loan Payments and delivered by the Borrowers to the Trustee pursuant to
the Agreement.
"Project Purposes" means acquiring, constructing, installing,
equipping or improving real and personal property comprising a commercial
facility to be used as a medical office building and urgent care center, or
I such use as may otherwise be permitted by the Agreement.
"Registered Bonds" means Bonds registered in the name of the holder,
including coupon Bonds registered as to principal (except to bearer) and
fully registered Bonds; and "fully registered Bonds" means Bonds without
coupons registered as to both principal and interest.
"Revenues" means (a) the Loan Payaents, (b) subject to the provi-
sions of Sections 3.04 and 8.02 of the Indenture with respect to the Trustee
holding moneys for the benefit of the holders of particular Bonds, all other
IDOneys received or to be received by the Issuer, or the Trustee for the
account of the Issuer, in respect of repayment of the Loan including IIOneys
in the Bond Fund, (c) unexpended IDOneys in the Construction Fund and (d) all
income and profit from the investment of the Loan Payments and such other
moneys.
"State" means the State of Ohio.
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"Trustee" means the trustee under the Indenture, originally BancOhio
National Bank, Columbus, Ohio, and any successor Trustee as determined or
designated under or pursuant to the Indenture.
Any reference herein to the Issuer, to the Legislative Authority or
to any member or officer of either, shall include those succeeding to their
functions, duties or responsibilities pursuant to or by operation of law or
I lawfully performing their functions. Any reference to a section or provision
of the Constitution of the State or the Act, or to a section, provision or
chapter of the Ohio Revised Code shall include such section or provision or
chapter as from time to time amended, llOdified, revised, supplemented or
superseded, provided that no such change in said Constitution or laws shall
be applicable solely by reason of this provision if such change in any way
. constitutes an impairment of the rights or obligations of the Issuer, the
Bondholders, the Trustee or the Borrowers under this Bond Legislation, the
Project Bonds, the Agree1Dent, the Project Note, the !t>rtgage or the
Indenture, or any other document executed in connection with any of the
foregoing, including, without l1ndtation, any alteration of the obligation to
pay the Bond service charges in the amount and manner, at the times, and from
the sources provided in this Bond Legislation and the Indenture, except as
otherwise herein permitted.
Unless the context shall otherwise indicate, words importing the
singular number shall include the plural number, and vice versa; the terms
"hereof", "hereby", "herein", "hereto", "hereunder" and sindlar terms refer
to this Bond Legislation and the Indenture; and the term "hereafter" means
after, and the term "heretofore" means before, the effective date of this
Bond Legislation. Words of the masculine gender include the fendnine and the
neuter and when the sense so indicates, words of the neuter gender may refer
to any gender.
The captions and headings in this Bond Legislation shall be solely
, for convenience of reference and in no way define, limit or describe the
scope or intent of any provisions or Sections of this Bond Legislation.
Section 2. Determinations of Le islative Authorit . The Legisla-
tive Authority does hereby determine that a) the Project is a "project" as
defined in the Act and is consistent with the purposes of Section 13 of
Article VIII of the State Constitution; (b) the utilization of the Project is
in furtherance of the purposes of the Act and will benefit the people of the
Issuer and of the State by creating jobs and employment opportunities and
improving the econondc welfare of the people of the Issuer and of the State;
and it is hereby determined that (c) the provision of loan assistance in the
financing of costs of acquiring, constructing, installing, equipping or
improving the Project, including the financing of the costs thereof, will
require the issuance, sale and delivery of the Project Bonds and hereafter
may require the Issuer's best efforts to issue, sell and deliver Additional
Bonds.
Section 3. Authorization and Terms of Project Bonds. It is deter-
ndned to be necessary to, and the Issuer shall issue, sell and deliver, as
provided and authorized herein and pursuant to the authority of the Act, the
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Project Bonds for the purpose of _king a loan to assist the Borrowers in the
financing of costs of acquiring, constructing, installing, equipping or
improving the Project for the Project Purposes. The Project Bonds shall be
designated "Industrial Development First MOrtgage Revenue Bonds (Medical
Facilities Project) (Grant Hospital - Guarantor)".
(a) FOnD. Nuabering, Den01Dination and Date. The Project Bonds
shall be initially issued in coupon or fully registered fOnD as may be
I requested by the Original Purchaser thereof, shall be exchangeable for fully
registered or coupon Project Bonds in the manner and on ~he tenDS provided in
the Indenture, and shall be numbered as dete1'1Dined by the Fiscal Officer.
Project Bonds in coupon fOnD shall be in the denomination of $5,000 each,
shall be registrable as to principal, and shall be dated as of December I,
1982. Project Bonds in fully registered fOnD shall be in the denomination of
$5,000 and any JDUltiple thereof pe1'1Ditted by the Indenture, and shall be
dated as of December I, 1982 if authenticated prior to the first Interest
Payment Date on the Project Bonds, and otherwise shall be dated as of the
Interest Payment Date next preceding the date of their authentication except
that if authenticated on an Interest Payment Date they shall be dated as of
such date of authentication; provided that if at the time of authentication
interest thereon is in default, they shall be dated as of the date to which
interest has been paid.
(b) Interest late and Principal Maturities. The Project Bonds shall
bear interest from tbeir respective dates at the rate of twelve and one-half
percent (12-1/2%) per annum, payable on each Interest Payment Date and shall
mature by their stated tenDS on December I, 2002.
(c) Redemption Provisions. The Project Bonds are subject to
mandatory sinking fund redemption prior to maturity, by lot in such manner as
the Trustee may dete1'1Dine, at a redemption price of 100% of the principal
amount thereof plus interest accrued to the redemption date, on December I,
, 1984 and each December 1 thereafter prior to maturity, in the following
principal amounts 'in the years specified.
Year Amount Year Amount
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1984 $30,000 1993 $80,000
1985 30,000 1994 95,000
1986 35,000 1995 105,000
1987 40,000 1996 115,000
1988 45,000 1997 130,000
1989 50,000 1998 150,000
1990 60,000 1999 165,000
1991 65,000 2000 190,000
1992 75,000 2001 210,000
If retired only by such mandatory redemption prior to _turity, there would
remain $240,000 principal amount of Project Bonds due December I, 2002 to be
paid at maturity. The aggregate of the Loan Payments specified in Section
4.1 of the Agreement which is to be deposited in the Bond Fund on the Loan
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Payment Date as defined in the Agreement, shall include amounts sufficient to
redeem (less the amount of any credit as provided below) on the date
specified above the principal amount of the Project Bonds set forth opposite
each such date.
The Issuer, or the Borrowers on behalf of the Issuer, shall have the
option to deliver to the Trustee for cancelletion Project Bonds, in any
aggregate principal amount with, if coupon Project Bonds, all unaatured
I coupons attached or receive a credit against the current mandatory sinking
fund requirement (and corresponding mandatory redemption obligation) of the
Issuer as set forth above for any Project Bonds which prior thereto have been
redeemed (other than through the operation of the mandatory sinking fund
requirements) or purchased for cancellation and cancelled by the Trustee and
not theretofore applied as a credit against any redemption obligation. Each
Project Bond so delivered, or previously redeemed or cancelled shall be
credited by the Trustee at 100% of the principal amount thereof against the
mandatory sinking fund obligation on such mandatory redemption date, and any
excess of such amount shall be credited on future redemption obligations, and
the principal amount of Project Bonds to be redeemed by operation of the
mandatory sinking fund requirements shall be accordingly reduced.
Such option shall be exercised by the Issuer, or the Borrowers on
behalf of the Issuer, on or before the.forty-fifth day preceding the
applicable mandatory redemption date as set forth above by furnishing the
Trustee a certificate, executed by the Fiscal Officer or the Authorized
Borrowers Representative, as the case may be, setting forth the extent of the
credit to be applied with respect to such mandatory sinking fund requirement.
If such certificate is not timely furnished to the Trustee, the mandatory
sinking fund requirement (and corresponding mandatory redemption obligation)
shall not be reduced.
The Project Bonds are also subject to extraordinary optional
redemption prior to stated maturity in the event of the exercise by the
, Borrowers of their option to direct such redemption upon the occurrence of
any of the events specified in Section 6.2 of the Agreement. If called for
redemption upon the occurrence of any such events, the Project Bonds shall be
subject to redemption by the Issuer on any Interest Payment Date, in whole or
in part, at a redemption price of 100% of the principal amount thereof, plus
accrued interest to the redemption date.
The Project Bonds are also subject to extraordinary mandatory
redemption prior to stated maturity upon the deposit of insurance proceeds
with the Trustee pursuant to Section 5.8 of the Agreement. If called for
redemption upon the occurrence of such event, the Project Bonds shall be
subject to redemption by the Issuer at any time, in whole, at a redemption
price of 100% of the principal amount thereof, plus accrued interest to the
redemption date, but in no event later than 180 days following the deposit of
life insurance proceeds with the Trustee.
The Project Bonds are subject to loss of tax exemption redemption
upon a Determination of Taxability that interest on the Project Bonds is
wholly includable for federal income tax purposes in the gross income of a
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holder of the Project Bonds (other than because a holder is a "substantial
user" of the Project or a "related person" thereof. as those terms are used
in Section 103(b) of the Code). In such event. the Project Bonds shall be
redeemed by the Issuer from the proceeds of the Borrowers paying advance Loan
Payments pursuant to Sections 4.1 and 6.4 of the Agreement at a redemption
price equal to 100% of the principal amount thereof. plus accrued interest to
the redemption date. plus. in the event that a Determination of Taxability is
I the result of a failure by the Borrowers to observe the agreement contained
in Section 5.6 of the Agreement. a premium equal to one year's interest borne
by such Project Bonds for each twelve (12) month period or part thereof
elapsed between the date on which interest on the Project Bonds became
taxable and the date of redemption. In addition. upon a Deteraination of
Taxability and in the event that the Determination of Taxability is the
result of a failure by the Borrowers to observe the agreement contained in
Section 5.6 of the Agreement. there shall also be paid to holders of any
Project Bond not then outstanding but which was outstanding on the date on
which interest on the Project Bonds became taxable. which holders are
satisfactorily identified to the Trustee. an amount equal to one year's
interest borne by such Project Bond for each twelve (12) month period or part
thereof elapsed between the date on which interest on the Project Bonds
became taxable and the date such Project Bond was paid or redeemed. As used
herein. a "Determination of Taxability" shall be deemed to have occurred upon
the final adoption of legislation or regulations or a final non-appealable
decision or ruling by any judicial or administrative authority which has the
effect of requiring interest on the Project Bonds to be included in the gross
income for federal income tax purposes of a holder of the Project Bonds
(other than because a holder is a "substantial user" of the Project or a
"related person" thereof. as those terms are used in Section l03(b) of the
Code) . Notice from the Borrowers to the Trustee that the Borrowers will
deliver to the Trustee the moneys needed to redeem any outstanding Project
Bonds in accordance with this paragraph shall constitute the direction from
the Issuer to the Trustee to call all the then outstanding Project Bonds for
, loss of tax exemption redemption pursuant to this paragraph and no separate
notice from the Issuer to the Trustee shall be required. The loss of tax
exemption redemption pursuant to this paragraph shall occur at the earliest
practicable date selected by the Trustee. after consultation with the
Borrowers. but in no event later than 180 days following a Determination of
Taxability. All of the Project Bonds outstanding on the redemption date
selected shall be redeemed by the Issuer on such date. except that Project
Bonds to be redeemed pursuant to any other mandatory or optional redemption
provisions on or prior to such loss of tax exemption redemption date. but
after the aforesaid selection of a loss of tax exemption redemption date.
shall be retired on their respective designated redemption dates at the same
redemption price as if they had been called for redemption on such loss of
tax exemption redemption date. and Project Bonds for the payment or
redemption of which sufficient moneys or investments are held by the Trustee
as provided in Section 8.02 of the Indenture shall be redeemed on the loss of
tax exemption redemption date in accordance with this paragraph and not
otherwise.
Unless previously redeemed. the Project Bonds are also subject to
optional redemption (from funds other than those deposited in accordance with
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the mandatory sinking fund requirements of this subsection) by and at the
option of the I.suer, at the direction of the Borrowers, prior to stated
maturity, in whole or in part from time to time on December 1, 1992, or on
any Interest Payment Date thereafter, at redemption prices equal to the
following percentages of the principal amount redeemed, plus in each case
accrued interest to the redemption date:
Redeemption Dates Redemption Price
I December 1, 1992 and June 1, 1993 103.0%
December 1, 1993 and June 1, 1994 102.5
December 1, 1994 and June 1, 1995 102.0
December 1, 1995 and June 1, 1996 101.5
December 1, 1996 and June 1, 1997 101.0
December 1, 1997 and June 1, 1998 100.5
December 1, 1998 and thereafter 100.0
If less than a!l of the outstanding Project Bonds are called for
redemption at one time, the selection of such Project Bonds, or portions of
fully registered Project Bonds in amounts of $5,000 or any integral multiple
thereof, shall be made by lot by the Trustee in such manner as the Trustee
may determine.
Notice of the call for redemption of Project Bonds, identifying by
designation, letters, numbers or other distinguishing marks, the Project
Bonds, or portions of fully registered Project Bonds in amounts of $5,000 or
any integral multiple thereof, to be redeemed, the amount of principal being
redeemed, the redemption price to be paid, the date fixed for redemption and
the place or places where the amounts due upon such redemption are payable,
shall be given by the Trustee on behalf of the Issuer by at least one
. publication a week for two consecutive weeks in a newspaper or financial
journal of national circulation published in the City and State of New York,
the first such publication to be not less than thirty days prior to the
I redemption date, and, in the case of the redemption of Project Bonds ~t the
time in fully registered form or in coupon form registered as to principal,
by mailing a copy of the redemption notice by first class mail, postage
. prepaid, at least thirty days prior to the date fixed for redemption to the
registered owner of each such Project Bond to be redeemed at the address
shown on the registration books kept by the Trustee and, in the case of the
redemption of any Project Bonds at the time in the form of coupon Project
Bonds not registered as to principal or registered as to principal to bearer,
by mailing such notice in such manner not less than thirty days prior to the
date fixed for redemption to the person whose name appears on the list
referred to in Section 9(f) hereof with respect to each such Project Bond to
be redeemed at the address shown on such list, provided, that failure to give
or receive such notice by mailing, or any defect in such notice, shall not
affect the validity of any proceedings for the redemption of the Project
Bonds. If, because of the temporary or permanent suspension of publication
or national circulation of the appropriate newspaper or financial journal or
for any other reason, it is impossible or impractical to publish such notice
of call for redemption in the manner herein provided, then such publication
in lieu thereof as shall be made with the approval of the Trustee shall
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constitute a sufficient publication of notice. In the event that all of the
Project Bonds to be redeemed are in fully registered fora, notice of the call
for redemption may be given by mailing a copy of the redemption notice by
first class mail, postage prepaid, at least thirty days prior to the date
fixed for redemption to the bolder or holders thereof at the address shown on
the registration books kept by the Trustee and published notice of the call
for redemption need not be given; provided, that failure to give or receive
such notice to any Bondholder by mailing, or any defect in such notice to any
I Bondholder, shall not affect the validity of the proceedings for the
redemption of any of the other Project Bonds.
Bond service charges on the Project Bonds shall be payable, without
deduction for services of any Paying Agent, at the corporate trust office of
the Trustee, except that interest on the fully registered Project Bonds shall
be payable by check or draft as provided in the Indenture.
The Project Bonds shall be signed in their official capacities by
the Executive and the Fiscal Officer, provided that either or both of such
signatures may be facsimiles, and shall bear the seal or a facsimile seal of
the Issuer.
Section 4. Terms of all Bonds. The Bonds shall bear such designa-
tions as may be necessary to distinguish them from Bonds of any other series.
Bond service charges on all Bonds shall be payable in lawful money of the
United States of America. All Bonds shall be negotiable instruments in
accordance with Chapter 165, Ohio Revised Code, subject to applicable provi-
sions for transfer and registration, and shall express on their faces the
purpose for which they are issued and such other statements or legends as may
be required by law.
Subject to provisions of the applicable Bond Legislation, Bonds
shall be issuable as coupon Bonds registrable as to principal or as fully
registered Bonds, and may be exchanged as between foras, all as provided in
I the Indenture.
The Bonds and coupons thereon shall be executed in the manner pro-
vided in the Bond Legislation authorizing their issuance or in the manner
provided by the applicable law in effect at the time of their issuance. In
case any officer whose signature or a facsimile of whose signature shall
appear on any Bonds or coupons shall cease to be such officer before the
issuance of such Bonds, such signature or such facsimile shall nevertheless
be valid and sufficient for all purposes, the same as if he had remained in
office until that time.
Unless otherwise provided in the Bond Legislation authorizing the
issuance of Additional Bonds, notice of call for redemption of all Bonds
shall be given in the manner provided in Section 3 hereof for the notice of
call for redemption of. the Project Bonds. If Bonds or portion8 of fully
registered Bonds are duly called for redemption and if on such redemption
date moneys for the redemption of all the Bonds to be rede...d, together with
accrued interest to the redemption date, shall be held by the Trustee or
Paying Agents 80 as to be available therefor, then from and after 8uch re-
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demption date such Bonds or portions of fully registered Bonds shall cease to
bear interest and any coupon for interest thereon aaturing subsequent to the
redemption date shall be void.
As provided herein, the Bonds shall be equally and ratably payable
solely from the Revenues and shall be secured by a pledge of the Revenues and
by the Indenture. The Bonds shall be further secured by the Notes and the
Mortgage delivered by the Individual Borrowers to the Trustee pursuant to the
I Agreement. Anything in the Bond Legislation, the Bonds or the Indenture to
the contrary notwithstanding, nothing contained in the Bond Legislation, the
Bonds or the Indenture shall constitute a debt or a pledge of the faith and
credit of the Issuer, and the Bonds shall contain on the face thereof a
statement to that effect and that such Bonds are payable solely from the
.~ Revenues; provided, that nothing herein shall be deemed to prohibit the
Issuer, of its own volition, from using to the extent lawfully authorized to
do so any other resources for the fulfillment of any of the terms, conditions
or obligations of the Indenture, the Bond Legislation or any of the Bonds.
Section 5. Sale of Project Bonds. The Project Bonds are sold and
awarded to the Original Purchaser, in accordance with the Underwriting
Agreement among the Issuer, the Borrowers and the Original Purchaser (the
"Purchase Contract"), at a purchase price of $1,833,600. The Executive, the
Fiscal Officer and the Clerk of the Legislative Authority are authorized and
directed to make the necessary arrangements with the Original Purchaser to
establish the date, location, procedure and conditions for the delivery of
the Project Bonds to the Original Purchaser, and to take all steps necessary
to effect due execution, authentication and delivery to the Original
Purchaser of the Project Bonds under the terms of this Bond Legislation and
the Purchase Contract. It is hereby determined that the price for and the
terms of the Project Bonds, and sale thereof, all as provided in this Bond
Legislation, are in the best interest of the Issuer and in compliance with
all legal requirements.
I The distribution of the Preliminary Offering Circular for the
Project Bonds dated November 26, 1982 is hereby ratified and approved. The
use and distribution of the final Offering Circular relating to the original
issue of the Project Bonds substantially in the form now on file with the
Clerk of this Legislative Authority and any supplements thereto are hereby
authorized. The Issuer has not confirmed, and assumes no responsibility for,
the accuracy, completeness or fairness of any statements in the Preliminary
Offering Circular or the final Offering Circular or any supplements thereto,
or in any reports, financial information, offering or disclosure documents or
other information in any way relating to the Project, the Borrowers, the
Guarantor or the Original Purchaser.
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Section 6. Proceeds of Pro ect Bonds - Construction Fund. All of
the proceeds from the sale of the Project Bonds including accrued interest
thereon) shall be allocated, deposited and credited as follows:
(a) to the Bond Fund, accrued interest, if any, paid by
the Original Purchaser and the Capitalized Interest Payment;
and
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(b) . to the Construction Fund. the balance of the
proceeds of the Project Bonds.
There is created by the Issuer and ordered maintained as a separate
deposit account (except when invested as hereinafter provided) in the custody
of the Trustee a trust fund in the name of the Issuer to be designated
"Village of Dublin. Ohio - Kenneth N. Carpenter. Patricia A. Carpenter and
I Dublin Medical Clinic. Inc. Construction Fund" (the "Construction Fund").
MOneys in the Construction Fund may be invested as provided in Section 10
hereof and shall be disbursed in accordance with the provisions of the
Agreement. The Trustee is authorized and directed to make any such
disbursement from the Construction Fund in accordance with the provisions of
the Agreement.
If the Completion Date for the Project occurs prior to August 1.
1983. moneys representing the balance of the Capitalized Interest Payment in
the Bond Fund for the period between the Completion Date and August 1. 1983
shall be transferred to the Construction Fund.
The moneys and Eligible Investments to the credit of the Construction
Fund shall. pending disbursement pursuant to the Agreement. constitute a part
of the Revenues pledged and assigned to the Trustee as security for the
payment of the Bond service charges..
Section 7. Sources of Payment - Bond Fund. As provided in the
Agreement. and as evidenced and to be evidenced by the Notes. Bond service
charges. as they come due. shall be payable (i) in the first instance from the
Loan Payments to be made by the Borrowers directly to the Trustee for the
account of the Issuer pursuant to the terms of the Agreement and deposited in
the Bond Fund, (ii) if such Loan Payments are not made or moneys then on
deposit in the Bond Fund and available for such purposes are insufficient to
I meet such Bond service charges, from other Revenues to the extent then avail-
able and (iii) from any other source lawfully available to the Trustee
including proceeds from the sale or liquidation of any collateral pursuant to
the MOrtgage.
There is created by the Issuer and ordered maintained as a separate
deposit account (except when invested as hereinafter provided) in the custody
of the Trustee. a trust fund to be designated "Village of Dublin, Ohio -
Kenneth N. Carpenter, Patricia A. Carpenter and Dublin Medical Clinic. Inc.
Revenue Bond Fund" (the "Bond Fund"). The Bond Fund (and accounts therein
provided for in the Indenture or in the. Agreement) and the moneys and Eligible
Investments therein are hereby pledged to and shall be used solely and
exclusively for the payment of Bond service charges as they fall due at stated
maturity or by redemption or pursuant to any mandatory sinking fund
requirements. all as provided herein and in the Indenture and the Agreement.
provided that no part thereof (except as may otherwise be provided for herein,
in the Indenture or the Agreement) shall be used to redeem, prior to maturity,
any Bonds.
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No later than one business day prior to a date when Bond service
charges are due and payable, the Trustee shall transmit from .oneys in the
Bond Fund applicable thereto to any other Paying Agents, as appropriate,
amounts sufficient to meet payments to be made by them of Bond service charges
to be then due and payable; provided that to the extent that the amount needed
by any other Paying Agent is not sufficiently predictable, the Trustee may
make such credit arrangements with such Paying Agent as will permit meeting
I such payments.
There shall be deposited into the Bond Fund (and credited, if re-
quired by the Indenture or the Agreement, to appropriate accounts therein), as
and when received, (a) all Loan Payments, (b) all other Revenues except for
the amounts required by the Bond Legislation, the Indenture, the Mortgage or
the Agreement to be deposited into the Construction Fund or any separate
insurance or condemnation proceeds account and (c) amounts, if any,
transferred from the Construction Fund pursuant to Section 3.4 of the Agree-
ment.
Nothing in this Bond Legislation is intended to prevent the Borrowers
from delivering moneys to the Trustee pursuant to Section 4.6 of the Agreement
to be used to purchase or redeem Bonds in accordance with that Section and the
Trustee shall promptly apply such moneys to the purchase or redemption of
Bonds in accordance with the Borrowers' instructions.
Section 8. Additional Bonds. The Issuer, at the request of the
Borrowers if the Borrowers are not then in default under the Agreement, to the
extent then permitted by law and for purposes consistent with the Act:
(a) shall to the extent reasonably deemed necessary by the
Issuer to create or maintain the character or signifi-
cance of the Project as furthering the purposes of the
Act use its best efforts to issue Additional Bonds from
I time to time to provide for:
(i) completion of the Project, or
(ii) the acquisition for the Project of additional
real estate or interests therein within the boundaries
of the Issuer, repairs to the Project of a major nature
arising from casualty or unanticipated conditions, or
the acquisition, construetion, enlargement, improve-
ment, equipping, furnishing and installation of prop-
erty to be used in connection with the Project and to
be located on the Project Site as defined in the Agree-
ment, or any combination thereof, or
(iii) any combination of (i) and (ii), and
(b) may issue Additional Bonds from time to time to provide
for:
(1) the acquisition for the Project of additional
real estate or interests therein within the boundaries
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of the Issuer, or the acquisition, construction, en-
largement, improvement, equipping, furnishing and
installation of property to be used in connection with
the Project and to be located on the Project Site as
defined in the Agreement, or any combination thereof,
or
(ii) refunding outstanding Bonds, or
I (iii) any combination of the purposes described in
clauses (a) and (b) hereof.
Additional Bonds may be issued only if consented to by the Guarantor and if
payments by the Borrowers with respect to the Additional Bonds are guaranteed
by the Guarantor. Such Additional Bonds shall be on a parity with the Project
Bonds and any Additional Bonds theretofore or thereafter issued. Before any
Additional Bonds are authenticated there shall be delivered to the Trustee the
items required by Section 2.08 of the Indenture.
Section 9. Covenants and Representations of Issuer. In addition to
other covenants and representations of the Issuer contained in this Bond
Legislation and the Indenture, the Issuer further covenants, represents and
agrees as follows:
(a) Payment of Bond Service Charges. The Issuer will, solely from
the sources herein provided, payor cause to be paid all Bond service charges
on the dates, at the places and in the manner provided herein, in the
applicable Bond Legislation and in the Bonds and coupons.
(b) Performance of Covenants, Authority and Actions. The Issuer
will at all times faithfully observe and perform all agreements, covenants,
undertakings, stipulations and provisions contained in the Agreement, this
I Bond Legislation, the Indenture and in any and every Bond executed, authen-
ticated and delivered under the Indenture, and in all proceedings of its
Legislative Authority pertaining thereto, on its part to be performed or
observed. The Issuer represents that it is, and upon delivery of the Project
Bonds covenants that it will be, duly authorized by the Constitution and laws
of the State, including particularly and without limitation the Act, to issue
the Project Bonds, to execute the Indenture, the Agreement and the Purchase
Contract and to provide the security for payment of the Bond service charges
in the manner and to the extent herein and in the Indenture set forth; that
all actions on its part for the issuance of the Project Bonds and execution
and delivery of the Indenture, the Agreement and the Purchase Contract have
been or will be duly and effectively taken; and that the Project Bonds will be
valid and enforceable special obligations of the Issuer according to the terms
thereof. Each obligation of the Issuer required to be undertaken pursuant to
the Bond Legislation, the Indenture, the Agreement, the Purchase Contract and
the Bonds is binding upon the Issuer, and such officer or employee thereof as
may from time to time have the authority under law to take such actions as may
be necessary to perform all or any part of such obligation, as a duty of the
Issuer and of each such officer and employee resulting from an office, trust,
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or station within the meaning of Section 2731.01, Ohio Revised Code, providing
for enforcement by writ of mandamus. .
(c) Revenues and Assignment of Revenues. Except as otherwise
provided in the Bond Legislation, the Indenture and the Agreement, the Issuer
will not pledge or assign the Revenues or create or permit to be created any
debt, lien or charge thereon other than the pledge and assignment thereof
under this Bond Legislation and the Indenture.
I (d) Recordings and Filings. The Issuer will, at the expense of the
Borrowers, cause the Indenture and any related documents or instruments relat-
ing to the pledge and assignment made by it under the Indenture and this Bond
Legislation to secure the Bonds, to be recorded and filed in such manner and
in such places as may be required by law in order to fully preserve and
protect the security of the holders of the Bonds and the rights of the Trustee
thereunder.
(e) Inspection of Project Books. All books and documents in the
Issuer's possession relating to the Project and the Revenues shall at all
times during the Issuer's regular business hours be open to inspection by such
accountants or other agents of the Trustee as the Trustee may from time to
time designate.
(f) List of Bondholders. To the extent that such information shall
be made known to the Issuer under the terms of this subsection, the Issuer
will keep or arrange to have kept on file at the corporate trust office of the
Trustee a list of names and addresses of the last known holders of Bonds
payable to bearer. Any Bondholder may in writing addressed to the Issuer or
Trustee request that his name and address be placed on said list, which
request shall include a statement of the principal amount of Bonds held by
such holder and identifying, by number and series designation, such Bonds.
Neither the Issuer nor the Trustee shall be under any responsibility with
regard to the accuracy of said list. At reasonable times and under reasonable
I regulations established by the Trustee, said list may be inspected and copied
by the Borrowers, or by holders (or a designated representative thereof) of
twenty-five percent or more in principal amount of Bonds then outstanding.
..
(g) Ri ht. and Enforcement of the The Trustee, in its
name or in the name 0 the ssuer may, or an on If of the Bondholders,
enforce all rights of the Issuer, except for Unassigned Issuer's Rights as
defined in the Agreement, and all obligations of the Borrowers under and
pursuant to the Agreement, whether or not the Issuer is in default of the
pursuit or enforcement of such rights and obligations. However, the Issuer
shall do all things and take all actions on its part necessary to comply with
obligations, duties and responsibilites on its part under the Agreement, and
will take all actions within its authority to keep the Agreement in effect in
accordance with the terms thereof.
(h) Arbitrage Provisions. The Issuer will restrict the use of the
proceeds of the Project Bonds in such manner and to such extent, if any, as
may be necessary, after taking into account reasonable expectations at the
time of the delivery of and payment for the Project Bonds, so that the Project
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,
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<
.
Bonds will not constitute arbitrage bonds under Section 103(c) of the Code.
The Fiscal Officer or any other officer having responsibility for issuing the
Project Bonds 1s authorized and directed, alone or in conjunction with any of
the foregoing or with any other officer, employee, consultant or agent of the
Issuer or with the Borrowers or any officer, employee, consultant or agent of
the Borrowers to give an appropriate certificate of the Issuer, for inclusion
in the transcript of proceedings for the Project Bonds, setting forth the
I reasonable expectations of the Issuer regarding the amount and use of the
proceeds of the Project Bonds and the facts, estimates and circumstances on
which they are based, such certificate to be premised on the reasonable
expectations and the facts, estimates and circumstances on which they are
based as provided by the Borrowers, all as of the date of delivery of and
payment for the Project Bonds.
(i) Transcript of Proceedings. The Clerk of the Legislative Author-
ity, or other appropriate officer of the Issuer, shall furnish.to the Ori-
ginal Purchaser a true transcript of proceedings, certified by said Clerk or
officer, of all proceedings had with reference to the issuance of the Project
Bonds along with such information from the records as is necessary to deter-
mine the regularity and validity of the issuance of the Project Bonds.
(j) Prevailing Wage Rates. As provided in Section 165.031, Ohio
Revised Code, all wages paid to laborers and mechanics employed on the Project
shall be paid at not less than the prevailing rates of wages for laborers and
mechanics for the class of work called for by the Project, which wages shall
be determined in accordance with the requirements of Chapter 4115, Ohio
Revised Code, for determination of prevailing wage rates, provided that should
the Individual Borrowers or other nonpublic user of the Project undertake, as
part of the Project, construction to be performed by its regular bargaining
unit employees who are covered under a collective bargaining agreement which
was in existence prior to the date of the commitment instrument undertaking to
issue the Project Bonds, then, in that event, the rate of pay provided under
I the collective bargaining agreement may be paid to such employees.
(k) Federal Tax Election. This Legislative Authority elects to have
the limitation on capital expenditures specified in Section 103(b)(6)(D) of
the Code applied to the Project Bonds, and the execution and filing with the
Internal Revenue Service of a statement regarding such election, as provided
for in the Code and the rules and regulations of the Internal Revenue Service,
by the Executive or the Fiscal Officer is hereby authorized, approved,
ratified and affirmed.
Section 10. Investment of Bond Fund and Construction Fund. Honeys
in the Bond Fund and the Construction Fund shall be invested and reinvested by
the Trustee in any Eligible Investments at the oral or written direction of
the Authorized Borrowers Representative, provided that investaents of moneys
in the Bond Fund shall. mature or be redeemable at the option of the Trustee at
the times and in the amounts necessary to provide moneys to pay Bond service
charges as they fall due at stated maturity or by redemption or pursuant to
any mandatory sinking fund requirements, and that each investment of moneys in
the Construction Fund shall in any event mature or be redeemable at the option
of the Trustee at such time as may be necessary to make payments from said
17
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Fund. Any such oral direction shall be confirmed in writing by the Authorized
Borrowers' Representative. Subject to any such directions with respect
thereto, the Trustee may from time to time sell such investments and reinvest
the proceeds therefrom in Eligible Investments maturing or redeemable as
aforesaid. Any such investments may be purchased from or sold to the Trustee
or any commercial bank affiliated with the Trustee. The Trustee shall sell or
redeem investments standing to the credit of the Bond Fund to produce suffi-
I cient moneys applicable hereunder to and at the times required for the pur-
poses of paying Bond service charges when due as aforesaid, and shall do so
without necessity for any order on behalf of the Issuer and without restric-
tion by reason of any such order. An investment made from moneys credited to
the Bond Fund or the Construction Fund shall constitute part of that respec-
tive Fund and such respective Fund shall be credited with all proceeds of sale
~ and incoae from such invest_nt; provided that, with respect to the investment
of moneys constituting the Capitalized Interest Payment in the Bond Fund, all
income from such investaent during the Construction Period shall be credited
to the Construction Fund. For purposes of the Indenture and this Bond
Legislation, such investments shall be valued at face amount or market value,
whichever is less.
Sec tion 11. Indenture and Agreeaent. In order to provide for the
issuance and sale of the Project Bonds and the consummation of the transac-
tions to be consUDllll&ted thereby, the Executive and the Fiscal Officer or the
fClerk of this Legislative Authority are hereby authorized and directed to
execute, acknowledge and deliver, in the naae and on behalf of the Issuer, the
Indenture and the Agreeaent in substantially the forms submitted to this
Legislative Authority, which instrWllents are hereby approved, with such
changes therein not inconsistent with this Bond Legislation and not substan-
tially adverse to the Issuer as may be permitted by the Act and approved by
the officers executing the same on behalf of the Issuer. The approval of such
changes by said officers, and that such are not substantially adverse to the
Issuer, shall be conclusively evidenced by the execution of such instruments.
I This Bond Legislation shall constitute a part of the Indenture as
therein provided and for all purposes of the Indenture, including, application
to this Bond Legislation of the provisions in the Indenture relating to
modification and supplementation, and provisions for severability.
Section 12. Other Documents. The Executive, the Fiscal Officer and
the Clerk of this Legislative Authority, as appropriate, are further author-
ized and directed to execute such certifications, financing statements,
assignments and instruments as are, in the opinion of bond counsel, necessary
or appropriate to perfect the pledge and assignments set forth in the
Indenture and to consummate the transactions contemplated by this Bond
Legislation and provided for in the Indenture and the Agreement.
Section 13. Compliance with Open Meeting Require_nts. It is found
and determined that all formal actions of this Legislative Authority concern-
ing and relating to the adoption of this Bond Legislation were adopted in an
open meeting of this Legislative Authority, and that all deliberations of this
Legislative Authority and of any of its committees that resulted in these
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formal actions, were in aetings open to the public, in com.pliance with all
legal requirements, including Section 121.22, Ohio Revised Code.
Section 14. Emergency. This ordinance is hereby determined to be an
emergency measure necessary for the immediate preservation of the public
peace, health and safety of the Issuer and for the further reason this
ordinance must be immediately effective in order to provide immediately
additional jobs and employment opportunities and to im.prove the economic
I welfare of the Issuer and its residents; wherefore, this Bond Legislation
shall be in full force and effect from and immediately after its passage.
I / Passed: , 1982
Mayor
.
Attest:
I
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