HomeMy WebLinkAbout64-85 Ordinance
October -L, 1985 Ordinance No.64-85
The Village Council of the Village of Dublin, Ohio met
in regular session on this date in Council Chambers at 6665
Coffman Road, Dublin, Ohio, with the following members present:
Mr. David Amorosp- Mayor .J,:amps F.. J.pwis
Mr. Michael Close Ms. R,:arh,:ar,:a M,:aIlTPT
Mrs. Catherin Headlee MT. n,:anipl ~1I~phpn
Mr. L. E. Thornton
Mr. Close offered the following ordinance and
moved the adoption of the same, which was duly seconded by
Mr. Sutphen .
ORDINANCE NO. 64-85
AN ORDINANCE AUTHORIZING THE ISSUANCE OF AN
INDUSTRIAL DEVELOPMENT REVENUE BOND
(CONQUEST/DUBLIN LIMITED PARTNERSHIP PROJECT)
OF THE VILLAGE OF DUBLIN, OHIO IN AN AMOUNT
NOT TO EXCEED $1,310,000 MAXIMUM PRINCIPAL
AMOUNT, IN ORDER TO ASSIST CONQUEST/DUBLIN
LIMITED PARTNERSHIP IN THE FINANCING OF COSTS
OF ACQUIRING, CONSTRUCTING, IMPROVING AND
EQUIPPING A COMMERCIAL FACILITY; PROVIDING
FOR THE PLEDGE OF REVENUES FOR THE PAYMENT OF
SAID BOND; AUTHORIZING A LOAN AGREEMENT WITH
RESPECT TO THE PROCEEDS DERIVED FROM THE SALE
OF SAID BOND; AUTHORIZING ASSIGNMENTS OF SAID
VILLAGE'S INTEREST IN SAID LOAN AGREEMENT AND
THE NOTE FROM CONQUEST/DUBLIN LIMITED
PARTNERSHIP MADE AND DELIVERED PURSUANT TO
SAID LOAN AGREEMENT; AND AUTHORIZING A BOND
PURCHASE AGREEMENT; AND FOR RELATED PURPOSES;
AND DECLARING AN EMERGENCY.
WHEREAS, the Village of Dublin, Ohio (hereinafter
called the "Issuer"), a municipal corporation and political
subdivision in and of the State of Ohio (hereinafter called the
"State"), is by virtue of the laws of said State, including
Section 13 of Article VIII of the Ohio Constitution and
Chapter 165 of the Ohio Revised Code, and other authorities
mentioned therein, authorized and empowered, among other things,
(a) to issue revenue bonds in order to assist in the financing of
costs of industrial, commercial, distribution and research
facilities located within the boundaries of the Issuer, (b) to
enter into an agreement with the owner of such facilities pro-
viding for revenues, as defined in Section 165.01(1) of the Ohio
Revised Code, sufficient to pay the principal of, premium (if
any) on and interest on such revenue bonds, (c) to secure such
revenue bonds by a pledge and assignment of such revenues, as
provided for herein, and (d) to enact this Bond Legislation and
enter into the Agreement (as hereinafter defined) and Bond
Purchase Agreement (as hereinafter defined) upon the terms and
conditions provided therein; and
WHEREAS, Conquest/Dublin Limited Partnership, an Ohio
limited partnership, (hereinafter called the "Company") with an
office at 110 East Wilson Bridge Road, Suite 280, Worthington,
Ohio 43085, will be the owner of the Project (as hereinafter
defined), comprising a commercial facility located within the
boundaries of the Issuer, to be leased for use by tenants in the
business of providing medical care to the residents of the Issuer
and others and other lawful businesses, and for related purposes;
and
WHEREAS, on July 1, 1985, this Legislative Authority
passed an ordinance authorizing an agreement, which was entered
into, with Conquest Corporation in which the Issuer agreed to
issue the Project Bond and authorized Conquest Corporation to
commence the acquisition, construction, improvement and equipping
of the Project; and, in accordance with the terms of said
agreement, Conquest Corporation has assigned its interest
thereunder to the Company; and
WHEREAS, this Legislative Authority has held, after
notice to the public duly given, a public hearing with respect to
the Project in accordance with the provisions of Section 103(k)
of the Internal Revenue Code (as hereinafter defined); and
WHEREAS, it is hereby determined by this Legislative
Authority that the acquisition, construction, improvement and
equipping of the Project, including the financing thereof, will
require the issuance, sale and delivery of the Project Bond (as
hereinafter defined) in an amount not to exceed $1,310,000
maximum principal amount;
NOW, THEREFORE, BE IT ORDAINED by the Village Council
of the Village of Dublin, County of Franklin and State of Ohio:
Section 1. Definitions. In addition to the words and
terms elsewhere defined in this Bond Legislation or in the Agree-
ment and used herein as defined words and terms, the following
words and terms as used in this Bond Leqislation shall have the
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following meanings, unless the context or use clearly indicates
another or different meaning or intent:
"Act" means Chapter 165 of the Ohio Revised Code,
enacted and amended pursuant to Section 13 of Article VIII and
other provisions of the Ohio Constitution.
"Agreement" means the Loan Agreement, dated as of
October 1, 1985, between the Issuer and the Company, as provided
for in Section 9 hereof, as the same may from time to time be
amended, modified or supplemented in accordance with its terms.
"Bond Fund" means the "Village of Dublin, Ohio -
Conquest/Dublin Limited Partnership Revenue Bond Account" created
by Section 6 hereof.
"Bond Fund Holder" means, as of any point in time, Bank
One, Columbus, N.A., Columbus, Ohio, or its successors so
designated by the Issuer as the depository at which the
Construction Fund and Bond Fund are established.
"Bondholder" means, as of any point in time, Bank One,
Columbus, N.A., Columbus, Ohio, or its successor or assign, as
the registered holder of the Project Bond.
"Bond Legislation" means this ordinance, as the same
may from time to time be modified, amended or supplemented.
"Bond Purchase Agreement" means the Bond Purchase
Agreement provided for in Section 9 hereof among the Issuer, the
Company and the Bondholder, dated as of October 1, 1985.
"Bond Service Charges" means, for any time period, the
principal, interest and redemption premium, if any, required to
be paid by the Issuer on the Project Bonds for such time
period.
"Clerk" means the person at the time incumbent in the
office of Clerk of the Legislative Authority, or in the event of
the death, disability or absence of such person, then the person
duly authorized and legally empowered to perform the duties of
such office in such event.
"Conditional Assignment" means the Conditional Assign-
ment of Leases, Rents, Issues and Profits, dated as of October 1,
1985, granted by the Company and Riverside United Methodist
Hospital to the Bondholder, as the same may from time to time be
amended, modified or supplemented in accordance with its terms.
"Construction Fund" means the "Village of Dublin, Ohio
- Conquest/Dublin Limited Partnership Construction Account"
created by Section 5 hereof.
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"Date of Taxability" means the date as of which all or
any part of the interest on the Project Bond is first required to
be included for Federal income tax purposes in the gross income
of the Bondholder by reason of the occurrence of any circum-
stances on the basis of which a Determination of Taxability shall
have been made.
"Determination of Taxability" means the receipt by the
Bondholder of a private letter ruling or technical advice
memorandum by the Internal Revenue Service in which the Company
has participated, or had an opportunity to participate, or a
written opinion addressed to the Company and the Bondholder by an
attorney or firm of attorneys of recognized standing on the
sUbject of municipal bonds selected by the Bondholder and
approved by the Company (which approval shall not be unreasonably
withheld), to the effect that all or any part of the interest on
the Project Bond is includable for Federal income tax purposes in
the gross income of the Bondholder [other than because the
Bondholder is a "substantial user" of the Project or a "related
person" thereto, as those terms are used in Section 103(b) of the
Internal Revenue Code].
"Eligible Investments" means (i) obligations issued or
guaranteed by the United States or by any person controlled or
supervised by and acting as an instrumentality of the United
States pursuant to the authority granted by Congress; (ii) obli-
gations issued or guaranteed by any state or political subdivi-
sion thereof rated A or higher by Moody's Investors Service, Inc.
or by Standard & Poor's Corporation, both of New York, New York,
or their successors; (iii) commercial or finance paper which is
rated either P-l or A-lor an equivalent by Moody's Investors
Service, Inc. or Standard & Poor's Corporation, both of New York,
New York, or their successors; (iv) bankers' acceptances drawn on
and accepted by commercial banks, including those of the Bond-
holder; (v) certificates of deposit of banks or trust companies,
including the Bondholder, organized under the laws of the United
States of America or any state thereof, which must have a
reported capital and surplus of at least $25,000,000 in dollars
of the United States of America; and (vi) repurchase agreements
fully secured by obligations of the type specified in (i) above,
including repurchase agreements of the Bondholder or any com-
mercial bank affiliated with the Bondholder; provided that any
such investment or deposit is not prohibited by law.
"Executive Officer" means City Manager of the Issuer.
"Fiscal Officer" means the Director of Finance of the
Issuer.
"Installment Payment Date" means each date on which a
payment of principal and/or interest is due on the project
Bond.
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"Internal Revenue Code" means the Internal Revenue Code
of 1954, as amended, and the existing and proposed Regulations
promulgated thereunder.
"Legal Officer" means the person at the time incumbent
in the office of Director of Law of the Issuer, or in the event
of the death, disability or absence of such person, then the
person duly authorized and legally empowered to perform the
duties of such office in such event.
"Legislative Authority" means the Village Council of
the Issuer.
"Loan" means the loan by the Issuer to the Company of
the proceeds from the sale of the Project Bond to the Bond-
holder.
"Loan Payments" means the amounts required to be paid
by the provisions of Section 2.1 of the Agreement in repayment of
the Loan.
"Mortgage" means the Open-End Mortgage and Security
Agreement granted by the Company and Riverside United Methodist
Hospital to the Bondholder, dated as of October 1, 1985, as the
same may from time to time be amended, modified or supplemented
in accordance with its terms.
"Note" means the Promissory Note executed by the
Company and delivered to and payable to the order of the Issuer,
constituting an unconditional promise of the Company to repay the
Loan to the Issuer, which Note is to be initially executed and
delivered in substantially the form attached as Exhibit A to the
Agreement.
"Person", whether or not appearing with initial
capitalization, means natural persons, firms, associations,
corporations, partnerships, other business entities and public
bodies.
"Pledged Receipts" means (a) the Loan Payments,
including the payments of principal of and interest and any
premium on the Note, (b) all other moneys received by the Issuer
or the Bondholder for the account of the Issuer pursuant to the
Agreement or with respect to the Loan, (c) the proceeds of the
Project Bond, including any moneys deposited in the Construction
Fund, (d) any moneys deposited in the Bond Fund, and (e) any
moneys constituting income and profit from the investment of the
moneys deposited in the Bond Fund and the Construction Fund.
"project" means the real, personal or real and personal
property consisting of a commercial facility, and certain
equipment to be utilized in connection therewith, as more fully
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described in Exhibit B attached to the Agreement, acquired,
constructed, improved and equipped by the Company and located on
the Project Premises.
"Project Bond" means the Bond authorized in Section 3
hereof and designated "Village of Dublin, Ohio Industrial
Development Revenue Bond (Conquest/Dublin Limited Partnership
Project)", issued by the Issuer pursuant to this Bond Legislation
in an amount not to exceed $1,310,000 maximum principal amount.
"Project premises" means the land described in Exhibit
C to the Agreement.
"Project Purposes" means the purposes of a commercial
facility as described in the Act.
"State" means the State of Ohio.
"Termination Date" means October 1, 1995, sUbject to
earlier termination as provided in the Agreement or herein.
"Total Aggregate Disbursements" means the total amount
of payments made by the Bondholder for the principal of the
Project Bond, as shown on the Disbursement Schedule attached
thereto as Schedule II.
Any reference herein to the Issuer, to the Legislative
Authority, or to any officers thereof, shall include any entity
which succeeds to its or their functions, duties or responsi-
bilities pursuant to or by operation of law. Any reference
herein to a section or provision of the Ohio Constitution, the
Act or the Internal Revenue Code 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, modified,
revised, supplemented, or superseded; provided, however, that no
such change in the Constitution, laws or regulations (a) shall
alter the obligation to pay the Bond Service Charges in the
amounts and manner, at the times, and from the sources provided
in the Bond Legislation, except as otherwise herein permitted, or
(b) shall be deemed applicable by reason of this provision if
such change would in any way constitute an impairment of the
rights of the Issuer, the Company or the Bondholder under the
Agreement.
References herein to any document or documents are and
shall be references to such document or documents as the same may
from time to time be duly modified, amended, supplemented,
renewed or extended in accordance with the terms thereof.
Unless the context shall otherwise indicate, words of
the masculine gender shall be deemed and construed to include
correlative words of the feminine and neuter genders, words
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importing the singular number shall include the plural number,
and vice versa, and the terms "hereofn, nhereby", "hereto",
nhereunder", and similar terms, mean this Bond Legislation.
Section 2. Determinations of the Legislative
Authority. The Legislative Authority hereby determines:
(a) that the real, personal or real and personal
property acquired, constructed, improved and
equipped by the Company by purchase, construction
and installation through the Loan is useful to the
Project, and the utilization of such property in
the creation and location of the Project is
economically sound; and
(b) the Project is a "project" as that term is defined
in Section 165.01 of the Ohio Revised Code, is
consistent with the purposes of Section 13 of
Article VIII of the Ohio Constitution and the Act
and will benefit the people of the Issuer by
creating jobs and employment opportunities and
promoting the industrial and economic development
of the Issuer and the State.
Section 3. Authorization and Terms of Project Bond.
It is hereby determined 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 project Bond for the
purpose of making a loan to assist the Company in the financing
of costs of acquiring, constructing, improving and equipping the
Project for the project Purposes, including but not limited to
costs incidental thereto and to the financing thereof. The
Project Bond shall be designated "Village of Dublin, Ohio
Industrial Development Revenue Bond (Conquest/Dublin Limited
Partnership Project)n.
The Project Bond shall be issued in fully registered
form in the form attached hereto, made a part hereof and
incorporated herein by reference as Exhibit A. The Project Bond
shall mature not later than the Termination Date and shall
otherwise be upon and subject to the terms for interest, late
charges, payment, place of payment and mandatory and optional
redemption set forth in the form of Project Bond attached hereto
as Exhibit A.
The Project Bond shall originally be issued in the name
of Bank One, Columbus, N.A. in an amount not to exceed One
Million Three Hundred Ten Thousand Dollars ($1,310,000) maximum
principal amount, numbered R-1 and dated the date on which it is
delivered to said original purchaser for payment. In the event
of transfer of the Project Bond, at the request of the transferee
and upon surrender of the Project Bond to the Legislative
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Authority, the Issuer shall execute and deliver to the transferee
a new Project Bond registered in the name of the transferee, in
the principal amount equal to the outstanding principal bond of
the Project Bond surrendered and dated as of the date to which
interest has been paid on the project Bond surrendered. Any
subsequent Project Bond shall be numbered from R-2 upwards.
Bond Service Charges on the Project Bond shall be pay-
able in lawful money of the United States of America by check or
draft mailed or delivered to the Bondholder at its principal
office by the Bond Fund Holder, without deduction for services of
any paying agent, and without presentation of the Project Bond by
the Bondholder to the Bond Fund Holder, except presentation shall
be required where a payment or prepayment of principal will dis-
charge all indebtedness of the Issuer evidenced by the Project
Bond.
The Project Bond shall be executed by the Executive
Officer and the Fiscal Officer and shall bear the seal of the
Executive Officer. In case any officer whose signature shall
appear on the Project Bond shall cease to be such officer before
the issuance or delivery of the Project Bond, such signature
shall nevertheless be valid and sufficient for all purposes, the
same as if he had remained in office until that time. The
Project Bond shall express on its face the purpose for which it
is issued and such other statements or legends as may be required
by law.
So long as the Project Bond remains outstanding, the
Issuer will cause to be maintained and kept, by and at the office
of the Clerk, books for the registration and transfer of the
Project Bond. The Project Bond shall be a negotiable instrument
within the meaning of Chapter 165 of the Ohio Revised Code,
subject to applicable provisions for registration, and shall be
transferred in accordance with applicable securities laws.
The Project Bond may be transferred only upon the books
kept for the registration and transfer of the Project Bond, upon
surrender thereof at the office of the Legislative Authority
together with an assignment duly executed by the registered
holder thereof, or its duly authorized attorney, in such form as
shall be satisfactory to the Executive Officer. Upon the
transfer of the Project Bond and upon request of the Executive
Officer, the Issuer shall execute in the name of the transferee a
new fully registered project Bond, such execution on behalf of
the Issuer to be by the Executive Officer and the Fiscal Officer
and to bear the seal of the Executive Officer. The Executive
Officer and the Issuer may make a charge for every such transfer
of the Project Bond sufficient to reimburse them for any tax, fee
or other governmental charge required to be paid with respect to
such transfer and to reimburse them for all other costs and
expenses incurred by them in connection with such transfer, and
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such charge or charges shall be paid before any such new Project
Bond shall be delivered.
In the event a Project Bond is mutilated, lost, wrong-
fully taken or destroyed, the Issuer shall execute in the name of
the registered holder of such mutilated, lost, wrongfully taken
or destroyed Project Bond a new fully registered Project Bond of
like date and upon like terms as that mutilated, lost, wrongfully
taken or destroyed, such execution on behalf of the Issuer to be
by the Executive Officer and the Fiscal Officer to bear the seal
of the Executive Officer; provided that, in the case of any
mutilated project Bond, such mutilated Project Bond shall first
be surrendered to the Executive Officer, and in the case of any
lost, wrongfully taken or destroyed Project Bond, there shall
first be furnished to the Executive Officer and to the Company
evidence of such loss, wrongful taking or destruction
satisfactory to the Executive Officer and the Authorized Company
Representative (as defined in the Agreement), together with
indemnity satisfactory to them. The Executive Officer and the
Issuer may charge the registered holder of such mutilated, lost,
wrongfully taken or destroyed Project Bond with their reasonable
fees and expenses in connection with their action taken pursuant
to this paragraph.
Each new project Bond issued pursuant to this Section 3
shall, subject to the conditions thereof, constitute a con-
tractual obligation of the Issuer in substitution for all pre-
viously issued Project Bonds and shall be entitled to all of the
benefits, and subject to all of the conditions, of the Bond
Legislation, the Agreement and all documents given as security
for the payment, or otherwise in connection with the issuance, of
the Project Bond.
Section 4. Security Pledged for Project Bond. As
provided herein, the project Bond shall be payable by the Issuer
solely from the Pledged Receipts and shall be secured by a pledge
of and lien on moneys deposited in the Construction Fund and Bond
Fund and a pledge and assignment of other moneys constituting
Pledged Receipts, and further secured by the pledge and assign-
ment of the Note and the pledge and assignment of the Agreement,
and further secured by the Mortgage and the Conditional Assign-
ment and other security not provided by the Issuer. Anything in
the Bond Legislation, the Project Bond or the Agreement to the
contrary notwithstanding, neither the Bond Legislation, nor the
Project Bond, nor the Agreement shall constitute a debt or a
pledge of the faith and credit of the Issuer or of the State or
any political subdivision thereof, and the Bondholder shall not
have the right to have taxes levied by the General Assembly of
the State or the taxing authority of the Issuer or of any other
political subdivision of the State for the payment of the
principal of, premium, if any, on or interest on the project
Bond, but the Project Bond is payable by the Issuer solely from
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the Pledged Receipts, and the Project Bond shall contain on the
face thereof a statement to that effect; provided, however, that
nothing herein shall be deemed to prohibit the Issuer, of its own
volition, from using to the extent it is lawfully authorized to
do so, any other resources or revenues for the fulfillment of any
of the terms, conditions or obligations of the Agreement, this
Bond Legislation or the project Bond.
Section 5. Sale of Project Bond1 Allocation of
Purchase Price. The Executive Officer and Fiscal Officer are
hereby authorized and directed to offer for sale the project Bond
to the Bondholder at a purchase price equal to the Total
Aggregate Disbursements not to exceed $1,310,000 in accordance
with the terms and provisions of this Bond Legislation and the
Bond Purchase Agreement, and to make the necessary arrangements
on behalf of the Issuer with the Bondholder to establish the
date, location, procedure and conditions for the delivery of the
Project Bond to the Bondholder. The Executive Officer and Fiscal
Officer further are hereby authorized and directed to take all
steps necessary to effect due delivery of and security for the
Project Bond under the terms of this Bond Legislation and the
Bond Purchase Agreement, and it is hereby determined that the
aforesaid purchase price and the interest rate for the Project
Bond and the manner of sale, as provided in this Bond Legisla-
tion, are in the best interest of the Issuer and consistent with
all legal requirements. The Clerk shall furnish to the Bond-
holder true transcripts of proceedings had with reference to the
issuance of the Project Bond, certified by the Clerk, along with
such information from the Clerk's records as is necessary to
determine the regularity and validity of the issuance of the
Project Bond.
There is hereby created by the Issuer and ordered main-
tained, as a separate deposit account (except when invested as
hereinafter provided) in the custody of the Bond Fund Holder, the
Construction Fund which shall be designated "Village of Dublin,
Ohio - Conquest/Dublin Limited Partnership Construction
Account". The proceeds of the Project Bond shall be deposited in
the Construction Fund for disbursement as the Loan to the Company
provided for in the Agreement. Moneys in the Construction Fund
shall be disbursed by Bond Fund Holder on written order signed by
the Authorized Company Representative in accordance with the
provisions of the Agreement and as otherwise provided in the
Agreement and the Note, and Bond Fund Holder is hereby authorized
and directed to issue its check for each disbursement required by
the provisions of the Agreement.
The moneys to the credit of the Construction Fund,
pending application thereof as above set forth, shall be subject
to a lien and charge in favor of the Bondholder, but only to the
extent of its interest therein.
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Section 6. Source of Payment - Bond Fund. There is
hereby created by the Issuer and ordered maintained, as a
separate deposit account (except when invested as hereinafter
provided) in the custody of Bond Fund Holder, the Bond Fund which
shall be designated "Village of Dublin, Ohio - Conquest/Dublin
Limited Partnership Revenue Bond Account". The Bond Fund (and
accounts, if any, therein provided for in the Agreement) and the
moneys and 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, by acceleration or
by redemption, all as provided herein and in the Project Bond and
the Agreement, provided that no part thereof shall be used to
redeem the Project Bond prior to maturity, unless the Company
should so direct. The moneys to the credit of the Bond Fund,
pending application thereof as set forth below, shall be subject
to a lien, charge and security interest in favor of the Bond-
holder.
As provided in the Agreement, Loan Payments sufficient
in time and amount to pay the Bond Service Charges as they come
due are to be paid by the Company directly to the Bond Fund
Holder for the account of the Issuer and deposited in the Bond
Fund. Under the provisions of the Agreement, payments with
respect to the Note received by the Bond Fund Holder shall be
deposited into the Bond Fund for the account of the Issuer and
shall constitute Loan Payments.
The Bondholder shall have the right to be paid, and to
require withdrawal, from the Bond Fund any amount or amounts then
due and payable upon the Project Bond, and Bond Fund Holder is
hereby authorized and directed to issue its check or draft for
each of the payments to be made from the Bond Fund; provided,
however, that no such withdrawal of any payment of Bond Service
Charges shall be made by the Bond Fund Holder prior to the date
each Bond Service Charge is to be paid in accordance with the
terms of the Project Bond. The Issuer, acting by the Executive
Officer, shall take all such actions and sign and deliver all
such documents as Bond Fund Holder may from time to time require
to provide the appropriate authorization for Bond Fund Holder to
make the transfers and payments which it is authorized to make
pursuant to this Bond Legislation.
There shall be deposited into the Bond Fund (and
credited, if required by the Agreement, to appropriate accounts
therein), as and when received, (a) all Loan Payments and (b) all
other Pledged Receipts, except those amounts required by the
Agreement to be deposited in the Construction Fund or any other
separate insurance or condemnation proceeds account.
The Issuer hereby covenants and agrees that so long as
the Project Bond is outstanding the Issuer will deposit or cause
to be deposited in the Bond Fund Pledged Receipts sufficient in
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time and amount to pay the Bond Service Charges as the same
become due and payable, and to this end the Issuer covenants and
agrees that, so long as the Project Bond is outstanding, the
Issuer will diligently and promptly proceed in good faith and use
its best efforts to enforce the Agreement, and that, should there
be an Event of Default (as defined in the Agreement), the Issuer
shall fully cooperate with the Bondholder to protect fully the
rights and security hereunder of the Bondholder. Nothing herein
shall be construed as requiring the Issuer to use or apply to the
payment of Bond Service Charges any funds or revenues from any
source other than Pledged Receipts.
Section 7. Covenants of Issuer. In addition to other
covenants of the Issuer in this Bond Legislation contained, the
Issuer further covenants and agrees as follows:
(a) Payment of Bond Service Charges. The Issuer will,
solely from Pledged Receipts, payor cause to be paid the Bond
Service Charges on the dates, at the places and in the manner
provided herein, in the Project Bond and in the Agreement.
(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 Bond Legislation, in the Agreement, in the Bond
Purchase Agreement, in the conditional assignments of the Note
and of the Agreement and in the Project Bond executed and
delivered hereunder and in all proceedings of the Issuer per-
taining to the Project Bond, the Bond Purchase Agreement, the
Agreement or the conditional assignments of the Note and of the
Agreement. The Issuer warrants and covenants that it is, and
upon delivery of the Project Bond will be, duly authorized by the
Constitution and laws of the State, including particularly and
without limitation the Act, to issue the Project Bond and to
execute the Bond Purchase Agreement, the Agreement and the con-
ditional assignments of the Note and of the Agreement, to provide
the security for payment of the Bond Service Charges in the man-
ner and to the extent herein and in the Bond Purchase Agreement
set forth; and that all actions on the Issuer's part for the
issuance of the Project Bond and execution and delivery of the
Bond Purchase Agreement, the Agreement, the Project Bond and
conditional assignments of the Note and of the Agreement have
been or will be duly and effectively taken; and that the Project
Bond in the hands of the Bondholder will be a valid and enforce-
able special obligation of the Issuer according to the terms
thereof. Each provision of the Bond Legislation, Bond Purchase
Agreement, Agreement, Project Bond and the conditional assign-
ments of the Note and of the Agreement is binding upon each such
officer of the Issuer 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 the duties required by such provision; and each
duty of the Issuer and of its officers undertaken pursuant to
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such proceedings for the Project Bond is established as a duty of
the Issuer and of each such officer having authority to perform
such duty, specifically enjoined by law and resulting from an
office, trust, or station within the meaning of Section 2731.01
of the Ohio Revised Code, providing for enforcement by writ of
mandamus.
(c) Pledged Receipts. Except as otherwise provided in
the Bond Legislation, Bond Purchase Agreement, Agreement, Project
Bond and conditional assignments of the Note and of the Agree-
ment, the Issuer will not create or suffer to be created any
debt, lien or charge thereon, or make any pledge or assignment of
or create any lien or encumbrance upon the Pledged Receipts,
including the moneys in the Bond Fund and Construction Fund,
other than the pledge and assignment thereof under the Bond
Legislation, Bond Purchase Agreement, Agreement and conditional
assignments of the Note and of the Agreement.
(d) Recordings and Filings. The Issuer, at the
expense of the Company, will cause (to the extent required by the
laws of the State to perfect such instruments and/or the liens
created thereby) all necessary financing statements, amendments
thereto, continuation statements and instruments of similar
character relating to the pledges and assignments made by it to
secure the Project Bond, to be recorded and filed in such manner
and in such places and to the extent required by law in order to
fully preserve and protect the security of the Bondholder.
(e) Inspection of Project Books. All books and docu-
ments in the Issuer's possession relating to the Project or the
Pledged Receipts shall at all times be open to inspection by such
accountants or other agents of the Bondholder as the Bondholder
may from time to time designate.
(f) Rights under Agreement. The Bondholder, in its
name or in the name of the Issuer, may, for and on behalf of the
Issuer and itself, enforce all rights of the Issuer and all obli-
gations of the Company under and pursuant to the Agreement, the
Note, the Bond Purchase Agreement, the Mortgage, the Conditional
Assignment and all other instruments given by the Issuer and the
Company to secure payment of the Project Bond whether or not the
Issuer is in default of the pursuit or enforcement of such rights
and obligations.
(g) Maintenance of Agreement. The Issuer shall do all
things and take all actions on its part necessary to comply with
the obligations, duties and responsibilities on the part of the
Issuer under the Agreement, and will take all actions within its
authority to maintain the Agreement in effect in accordance with
the terms thereof and to enforce and protect the rights of the
Issuer thereunder, including actions at law and in equity, as may
be appropriate.
-13-
(h) Arbitrage Provisions. The Issuer will restrict
the use of the proceeds of the Project Bond in such manner and to
such extent, if any, as may be necessary, after taking into
account reasonable expectations at the time the Project Bond is
delivered to the Bondholder, so that it will not constitute an
arbitrage bond under Section 103(c) of the Internal Revenue
Code. The Fiscal Officer, or any other officer having responsi-
bility with respect to the issue of the Project Bond is author-
ized and directed, alone or in conjunction with any other
officer, employee, consultant or agent of the Issuer, or the
Company, and upon receipt of satisfactory indemnities, to give an
appropriate certificate of the Issuer, for inclusion in the
transcript of proceedings for the Project Bond, setting forth the
reasonable expectations of the Issuer regarding the amount and
use of all such proceeds and the facts and estimates on which
they are based, such certificate to be premised on the reasonable
expectations and the facts and estimates on which they are based
as provided by the Company, all as of the date of delivery of and
payment for the Project Bond.
Section 8. Investment of Bond Fund and Construction
Fund. Moneys in the Bond Fund and the Construction Fund shall be
invested and reinvested by Bond Fund Holder in any Eligible
Investments, in accordance with and subject to any orders of the
Authorized Company Representative with respect thereto, which
orders may be initially oral or written, but if oral, shall be
promptly confirmed in writing, provided that investment of moneys
in the Bond Fund shall mature or be redeemable at the option of
the Bond Fund Holder 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, and that each investment of
moneys in the Construction Fund shall in any event mature or be
redeemable at the option of the Bond Fund Holder at such time as
may be necessary to make timely disbursements from the Construc-
tion Fund. Subject to any such orders with respect thereto, the
Bond Fund Holder may from time to time sell such investments and
reinvest the proceeds there form in Eligible Investments maturing
or redeemable as aforesaid. Any such investments may be
purchased from the Bond Fund Holder and the Bondholder. The Bond
Fund Holder shall sell or redeem investments standing to the
credit of the Bond Fund to produce sufficient moneys hereunder at
the times required for the purpose 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 restriction 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 respective Fund and such respective Fund shall be credited
with all proceeds of sale and income from such investment, and
any loss resulting from such investment shall be charged to the
respective Fund. For purposes of this Bond Legislation, such
investments shall be valued at face amount or market value,
whichever is less.
-14-
Section 9. Bond Purchase Agreement, Agreement and
Conditional Assi~nments. In order to better secure the payment
of the Bond SerVlce Charges as the same shall become due and
payable and to provide more particularly for the sale of and
payment for the project Bond, the Executive Officer and the
Fiscal Officer are each hereby authorized and directed to execute
and deliver the Bond Purchase Agreement, the Agreement and the
conditional assignments of the Note and of the Agreement in
substantially the forms submitted to the Issuer, which
instruments are hereby approved, with such changes therein not
inconsistent with this Bond Legislation and not substantially
adverse to the Issuer as may be permitted by the Act and approved
by the officers executing the same. The approval of such changes
by said officers, and the fact that such are not substantially
adverse to the Issuer, shall be conclusively evidenced by the
execution of the Bond Purchase Agreement, the Agreement and the
conditional assignments of the Note and of the Agreement by such
officers. Such officers are further authorized and directed to
endorse and deliver the Note to the Bondholder; provided,
however, that such endorsement shall (a) be made only in
connection with the transfer to the Bondholder of the security
interest in the Note granted under the aforesaid conditional
assignment of the Note, (b) be subject to the conditions of said
conditional assignment and (c) give to the Bondholder no right,
except as provided in said conditional assignment, to receive
payments to be made upon the Note.
Section 10. Other Documents. The Executive Officer
and the Fiscal Officer are each hereby further authorized and
directed to execute financing statements, other assignments and
any other instruments as are, in the opinion of the Legal Officer
and bond counsel to Issuer, necessary to perfect the pledges set
forth herein and to consummate the transactions provided for in
the Bond Purchase Agreement and Agreement, including, but not
limited to, Form 8038 to be filed by the Issuer with the Internal
Revenue Service and a Notice of Issuance to be filed with the
Ohio Department of Development under Executive Order No. 84-64.
Section 11. Compliance with Section 121.22, Ohio
Revised Code. It is hereby found and determined that all formal
actions of the Legislative Authority concerning and relating to
the passage of this Bond Legislation were taken in an open
meeting of the Legislative Authority, and that all deliberations
of the Legislative Authority and of any of its committees, if
any, that resulted in such formal action, were taken in meetings
open to the public, in full compliance with applicable legal
requirements, including Section 121.22 of the Ohio Revised
Code.
Section 12. Prevailing Rates of Wages. All laborers
and mechanics employed on the Project shall be paid at the pre-
vailing rates of wages of laborers and mechanics for the class of
-15-
.
work called for by the Project, which wages shall be determined
in accordance with the requirements of Chapter 4115 of the Ohio
Revised Code, for determination of prevailing wages, provided
that should the Borrowers or other non-public user beneficiary of
the Project undertake, as part of the Project, construction to be
performed by their regular collective 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 Bond, then, in that event, the
rate of pay provided under the collective bargaining agreement
may be paid to such employees.
Section 13. Federal Tax Election. This Legislative
Authority hereby elects to have the limitation on capital
expenditures specified in Section 103(b) (6) (D) of the Internal
Revenue Code applied to the Project Bond, and the execution and
filing with the Internal Revenue Service of a statement regarding
such election, as provided by the rules and regulations of the
Internal Revenue Service, by any member of the Legislative
Authority is hereby authorized, approved, ratified and affirmed.
Section 14. Emergency - Effective Date. This Bond
Legislation is hereby declared to be an emergency measure, the
immediate passage of which is necessary for the preservation of
the public peace, health and safety and for the further reason
that this Bond Legislation must be immediately effective in order
to eliminate the hazards and expenses to the Issuer and its
people resulting in the lack of jOb opportunities; wherefore,
this Bond Legislation shall take effect and be in force
immediately upon its passage.
Passed by Council this 7.cA day of Oct
Attest:
/7
- ~L141f/~~' l~~J I hereby certify that copies of this Ordinance/Resolution
Cl rk 0 ill ge Council were posted in the Village of Dublin in accordance with
Section 731.25 of the Ohio Revised Code.
Approved as to form: ~ J~~- t{~
~I::- <.~;:.. Clerk of Council
Director of Law
-16-
I, Frances M. Urban, Clerk of the Village Council of the
Village of Dublin, Ohio, do hereby certify that the foregoing is a
true and correct copy of the original ordinance as passed by the
Village Council of the Village of Dublin, Ohio on October 7~ ,
1985. ,
~ - t{-~
Frances M. u~n
Clerk of Village Council
Dated: October L, 1985
-17-
EXHIBIT A
UNITED STATES OF AMERICA
STATE OF OHIO
VILLAGE OF DUBLIN
INDUSTRIAL DEVELOPMENT REVENUE BOND
(CONQUEST/DUBLIN LIMITED PARTNERSHIP PROJECT)
No. R-l $1,310,000
(Maximum Principal Amount)
The VILLAGE OF DUBLIN, OHIO (hereinafter called the
"Issuer"), a political subdivision organized and existing under
and by virtue of the laws of the State of Ohio, for value
received, promises to pay to Bank One, Columous, N.A., or
registered assigns, but solely from the sources and in the manner
hereinafter set forth, the principal sum of
ONE MILLION THREE HUNDRED TEN THOUSAND DOLLARS ($1,310,000)
or, if less, the Total Aggregate Disbursements (as hereinafter
defined) in consecutive monthly installments payable on the first
day of each and every month, commencing on the first day of the
first full calendar month after (a) the month in which
Substantial Completion of the Project (as hereinafter defined)
occurs or (b) August, 1986, whichever of (a) or (b) shall first
occur, in the respective amounts set forth in Schedule I,
attached hereto, made a part hereof and incorporated herein by
reference, until said principal amount is paid in full. The
Bondholder (as hereinafter defined) is hereby authorized, and .by
its acceptance hereof hereby agrees, to enter on Schedule I
hereto the first to occur of the months described in clauses (a)
and (b) of the immediately preceding sentence. As used herein,
"Total Aggregate Disbursements" means the total amount of
payments made by the Bondholder for the principal of the Project
Bond, as shown on the Disbursement Schedule attached hereto as
Schedule II. As used herein, "Substantial Completion of the
Project" shall be deemed to have occurred at such time as (1) the
Company (as hereinafter defined) shall have delivered to the
registered holder of the Project Bond (the Project Bond being
hereinafter defined, and the registered holder thereof being
herein called the "Bondholder") and the Issuer a copy of the
temporary or permanent certificate of occupancy for the shell of
the Project (as hereinafter defined) from the Issuer ( if the
Issuer does not then issue certificates of occupancy, no
certificate of occupancy shall be required) and a Certificate of
Substantial Completion with respect to the Project on AlA
Document G704 signed by the Project architect, and (2) the
Bondholder shall have delivered to the Issuer and the Company its
written acknowledgment that all construction work on the Project,
-.~.._---_.- ---------- ____ ___0..- "___ .__.
except tenant finish work and punchlist items, the cost of which
punchlist items (exclusive of landscaping and underground
irrigation) shall not exceed Ten Thousand Dollars ($10,000), has
been completed.
The Issuer further promises to pay from said sources
interest on the unpaid balance of such principal amount from the
date hereof at the rate or rates per annum determined as
hereinafter provided and computed for the actual number of days
elapsed on the basis of a year of 360 days, due and payable in
consecutive monthly installments in arrears on the first day of
each and every month, commencing on November 1, 1985 and
continuing thereafter until the aforesaid principal amount is
paid in full; provided, however, that on October 1, 1995, the
entire unpaid principal balance hereof plus all unpaid interest
accrued thereon shall be paid in full. The interest rate or
rates on the principal balance hereof shall be determined in
accordance with the following:
Unless the Optional Rate (as hereinafter
defined) has been established in accordance with
the provisions of the project Bond, the interest
rate shall be a variable rate per annum (the "Tax-
Free Interest Rate") determined in accordance with
the following formula:
P[1.218 - F(l-E)]
Where:
P = the product of the Prime Rate (as
hereinafter defined), expressed as a
decimal fraction, multiplied by 100;
F = the maximum marginal federal income tax
rate applicable to Bank One, Columbus,
N.A., as set forth in Section 11 of the
Internal Revenue Code of 1954, as amended
(the "Code"), expressed as a decimal
fraction; and
E = the reduction factor for certain finan-
cial institutions preference items, as
set forth in Section 29l(a) (3) of the
Code or any successor section of the
Code, expressed as a decimal fraction;
with each change in P, F or E automatically and
immediately, without notice, resulting in a change
in the Tax-Free Interest Rate. As used herein, the
term "Prime Rate" shall mean the rate of interest,
expressed as a percent per annum, established and
-2-
stated from time to time by Bank One, Columbus,
N.A. , as its prime rate of interest, and each
change in said prime rate of interest shall,
without notice, automatically and immediately
change the Prime Rate.
Upon the making of an Election (as hereinafter
defined), the rate of interest on the principal balance
hereof, from the effective date of the Election through
the date on which the entire principal balance hereof is
paid, shall be the fixed rate per annum (the "Optional
Rate") calculated in accordance with the following
formula:
11 + P[0.368 - F(l-E)]
WHERE: F, E and P have the respective meanings
hereinbefore set forth, all determined as of the
effective date of the Election. As used herein,
"Election" means the election by the Company to have the
principal balance hereof bear interest at the Optional
Rate, which election may be made only by the Company's
giving written notice thereof to the Issuer and the
Bondholder in the manner then provided for notices to be
given to the Issuer and the Bondholder in accordance
with the Loan Agreement (as hereinafter defined). The
Election shall be effective as of the date on which such
notices are deemed to have been given to the Issuer and
the Bondholder in accordance with the Loan Agreement;
provided, however, that the Election shall not be
effective unless (1) the Election is made at a time as
of which "The Bond Buyer 25 Revenue Bond Index"
measuring the average yield of 25 selected 30-year
revenue bonds (the "Index") is less than 10.15% per
annum, (2) the Election becomes effective on or before
the (5th) Banking Day (as hereinafter defined) after the
effective date of the Index to which the same relates,
and (3) the Election is accompanied by an opinion of a
nationally recognized bond counsel acceptable to the
Bondholder to the effect that conversion to the Optional
Rate will not adversely affect the exemption of interest
paid hereunder from federal income taxation. As used
herein, "Banking Day" means a day of the year, other
than a Saturday or a Sunday on which national banks
located in the City of Columbus, Ohio are not required
or authorized by law to be closed.
If a Determination of Taxability (as defined in the
Loan Agreement) shall be made or occur, the interest
rate on the principal amount outstanding hereunder on
-3-
and after the Date of Taxabili~y (as defined in the Loan
Agreement) shall be changed automatically to a rate per
annum (herein called the "Taxable Interest Rate") equal
to the sum of the Prime Rate plus one and one-half
percent (1.50%) per annum, and the Taxable Interest Rate
shall continue for so long as any principal amount
remains outstanding hereunder. The Taxable Interest
Rate shall be determined initially as of the Date of
Taxability. Thereafter, with each change in the Prime
Rate, the Taxable Interest Rate shall change automatic-
ally and immediately, without notice.
If a Determination of Taxability shall be made or
occur, the Issuer will pay to the Bondholder or a former
Bondholder, immediately on demand by the Bondholder or former
Bondholder, moneys in an amount equal to (a) the difference
between (i) the amount of interest which would have been received
by the Bondholder and any former Bondholder during the Payment
Period if interest payable hereon during the Payment Period (as
hereinafter defined) had been paid at the Taxable Interest Rate
and (ii) the amount of interest theretofore paid to the
Bondholder and any former Bondholder during the Payment Period,
and (b) all penalties and interest paid or payable by the
Bondholder and any former Bondholder as a result of a Deter-
mination of Taxability. As used herein, "Payment period" shall
mean the period beginning with the Date of Taxability and ending
with the Installment Payment Date (as defined in the Bond
Legislation hereinafter described) immediately preceding the date
of the demand pursuant to the first sentence of this
subparagraph. The Issuer shall make the payment to the
Bondholder and any former Bondholder required by this
subparagraph, notwithstanding that this Project Bond shall have
been redeemed or otherwise paid in full prior to a Determination
of Taxability but after the Date of Taxability; and, in that
event, the ending date of the Payment Period shall be the date of
redemption or other payment of this Project Bond in full.
If any amount payable in accordance with this Project
Bond should not be paid in full on or before the tenth (10th) day
after the same is due, then in addition to such amount there
shall be due, and the Issuer promises to pay to the Bondholder, a
late charge in respect thereof in an amount equal to two percent
(2%) of said unpaid amount, the parties agreeing that said charge
constitutes fair and reasonable liquidated damages for the
accounting and other servicing costs associated with such la~e
payment and shall not be deemed a penalty.
The principal sum of this Project Bond and interest
thereon are payable in lawful money of the United States of
America, without deduction for services of the paying agent, by
check or draft mailed or delivered to the Bondholder at its
principal office by the Bond Fund Holder (as defined in the Loan
-4-
- - ... - .. -- -_.. --- - . -_. --------_....__..~ --- .
Agreement) or its successor, without presentation of this project
Bond by the Bondholder to the Bond Fund Holder, except
presentation shall be required where a payment or prepayment of
principal will discharge all indebtedness of the Issuer evidenced
by this Project Bond; provided, however, that the Bondholder and
the Bond Fund Holder may, at their option, agree to an
alternative method of payment. Except as specifically provided
herein to the contrary, all payments hereunder shall be applied
first to the payment of interest on the outstanding principal
balance and the remainder of said payments shall be credited to
reduction of principal.
This Project Bond is the duly authorized Industrial
Development Revenue Bond (Conquest/Dublin Limited Partnership
Project) (the "Project Bond"), issued pursuant to an ordinance
passed by the Village Council of the Issuer on October , 1985
(the "Bond Legislation") for the purpose of making a loan to
Conquest/Dublin Limited Partnership, an Ohio limited partnership
(the "Company"), for costs incurred in acquiring, constructing,
improving and equipping real and personal property comprising a
commercial facility located within the boundaries of the Issuer
(the "Project"), which facility will be leased for use by the
lessees. The proceeds of the Project Bond will be loaned to the
Company pursuant to a Loan Agreement, dated as of October 1, 1985
(herein, as the same may be amended according to its terms,
called the "Loan Agreement", and the loan made pursuant to the
Loan Agreement is herein called the "Loan"), duly made and
entered into between the' Issuer and the Company in order to
promote the economic welfare of the people of the State of Ohio
and of the Issuer by creating or preserving jobs and employment
opportunities. As provided in the Loan Agreement, the obligation
of the Company to repay the Loan is evidenced by the Loan
Agreement and by a Promissory Note (herein, as the same may be
amended according to its terms, called the "Note") in an amount
not to exceed $1,310,000 maximum principal amount, made and
executed by the Company and delivered to and payable to the order
of the Issuer.
Each sum disbursed under the Project Bond shall be
disbursed in accordance with the Bond Legislation and the Bond
Purchase Agreement (as defined in the Bond Legislation) by the
Bondholder's payment of such disbursement at the office of the
Bond Fund Holder for deposit into the Construction Fund (as
defined in the Bond Legislation) for the account of the Issuer.
Contemporaneously with its making each such disbursement, the
Bondholder shall, and is hereby authorized to, list and aggregate
the same on the Disbursement Schedule attached hereto as Schedule
II.
Pursuant to the Bond Legislation, which Bond Legisla-
tion is on file in the office of the Clerk of the Village Council
of the Issuer, and to the Conditional Assignments of the Loan
-5-
o ._... __~._ ______ _ _ . __
~
Agreement and the Note, both dated as of October 1, 1985, the
Issuer has pledged and assigned the Issuer's right, title and
interest in, to and under the Loan Agreement (except certain
rights to additional payments, indemnification and attorneys
fees) and the Pledged Receipts (as defined in the Loan
Agreement), being, generally, the loan payments, premiums and
other charges payable to the Issuer by the Company under and
pursuant to the Loan Agreement and the Note, to the Bondholder as
security for its obligation to pay the principal of and interest
and any premium on the Project Bond. Reference is hereby made to
the Bond Legislation for a more complete description of the
provisions, among others, with respect to the nature and extent
of the security, the rights, duties and obligations of the Issuer
and the Bondholder and the terms and conditions upon which the
Project Bond is issued and secured, to all of the provisions of
which Bond Legislation the Bondholder, by the acceptance hereof,
assents.
This Project Bond is issued pursuant to Section 13 of
Article VIII of the Constitution of the State of Ohio and to the
laws of the State of Ohio, particularly Chapter 165 of the Ohio
Revised Code, and the Bond Legislation. This Project Bond is a
special obligation of the Issuer, and the principal of and
interest and any premium on this Project Bond (hereinafter
collectively called the "Bond Service Charges") are payable
solely from, and such payment is secured by a pledge of and lien
on, the Construction Fund and the Bond Fund established by and as
provided in the Bond Legislation and the Pledged Receipts (being,
generally, the payments and other amounts payable under the Loan
Agreement in repayment of the Loan and the income and profit from
the investment of such payments), and are not otherwise an
obligation of the Issuer. THIS PROJECT BOND IS NOT SECURED BY
ANY OBLIGATION OR PLEDGE OF ANY MONEYS RECEIVED, OR TO BE
RECEIVED, FROM TAXATION LEVIED BY THE GENERAL ASSEMBLY OR ANY
POLITICAL SUBDIVISION OR TAXING DISTRICT OF THE STATE OF OHIO AND
DOES NOT NOW AND SHALL NEVER REPRESENT OR CONSTITUTE A DEBT OR
PLEDGE OF THE FAITH AND CREDIT OF THE ISSUER OR OF THE STATE OF
OHIO OR ANY POLITICAL SUBDIVISION THEREOF. Payments sufficient
for the prompt payment when due of the Bond Service Charges are
required by the Loan Agreement to be paid by the Company to the
Bond Fund Holder for the account of the Issuer and deposited in a
special account created by the Issuer and designated "Village of
Dublin, Ohio - Conquest/Dublin Limited Partnership Revenue Bond
Account", which has been duly pledged for that purpose.
This Project Bond is transferable by the registered
holder hereof, in person or by his attorney duly authorized in
writing at the office of the Village Council of the Issuer, upon
presentation hereof to the Village Council, all subject to the
terms and conditions provided in the Bond LegiSlation. This
Project Bond is transferable only in accordance with applicable
securities laws and is a negotiable instrument as provided by
Section 165.03 of the Ohio Revised Code.
-6-
Except during any time as of which interest is accruing
on the principal balance hereof at the Optional Rate or a default
rate based on the Optional Rate, this Project Bond is subject to
optional redemption by the Issuer, at the direction of the
Company, at any time, in whole or in part, in the event the
Company exercises its option to prepay all or any portion of the
unpaid principal balance of the Note. In such event, the Project
Bond shall be redeemed in whole, or in part in amounts of $5,000
or any integral multiple thereof in the inverse order of maturity
of the principal installments, by the Issuer simultaneously with
the corresponding prepayment of the Note by the Company, at a
redemption price of 100% of the outstanding principal amount
hereof plus accrued interest to the date of such redemption on
the principal amount so redeemed.
At any time as of which interest is accruing on the
principal balance hereof at the Optional Rate or a default rate
based on the Optional Rate, this Project Bond shall not be
subject to optional redemption by the Issuer in part, but shall
be subject to optional redemption by the Issue in whole, at the
direction of the Company in the event the Company exercises its
option to prepay all of the unpaid principal balance of the Note,
at a redemption price equal to the sum of:
(1) the unredeemed principal balance hereof on the date
of the optional redemption (the "Redemption Date");
(2) the unpaid accrued interest hereon to the
Redemption Date; and
(3 ) an amount equal to the excess (if any) of (a) the
present value on the Redemption Date of the
interest which would have been paid hereunder from
the day after the Redemption Date through the final
maturity of this Project Bond if such redemption
were not made over (b) the present value on the
Redemption Date of the sum of ( i) the interest
which would have been paid hereunder during the
period described in clause (a) of this subparagraph
if such redemption were not made and the principal
balance hereof were to bear interest at the same
rate as the Index Bond (as hereinafter defined) and
(ii) any premium or discount attributable to such
Index Bond on the Redemption Date.
"Index Bond" means a municipal bond, selected by the Bondholder,
which bears a fixed rate of interest, is rated Aaa by Moody's
Investor Services, I nc . , a Delaware corporation (or its
successor), and matures on a date which is not more than ninety
(90) days before or after the weighted average maturity date of
principal installments which would be payable hereunder after the
Redemption Date if this Project Bond were not so redeemed.
.
-7-
Present value shall be determined in clauses (a) and' (b) of
subparagraph (3) of this paragraph using a rate equal to the
yield to maturity effective rate then earned on such Index Bond.
After October 1, 1990 if a Determination of Taxability
shall have been made or occurred (whether the same occurs before
or after October 1, 1990), this Project Bond shall be subject to
redemption in whole at the option of the Bondholder, at a
redemption price of 100% of the outstanding principal amount
hereof plus unpaid accrued interest to the date of such
redemption, on the first day of the third full calendar month
next following the giving of written notice of redemption to the
Issuer and the Company by the Bondholder.
.
This Project Bond is subject to mandatory redemption by
the Issuer at any time prior to final stated maturity in whole at
a redemption price of 100% of the outstanding principal amount
hereof plus unpaid accrued interest to the redemption date if and
when the Loan Agreement shall have become void or unenforceable
or impossible of performance in accordance with the intent and
purpose of the parties as expressed in the Loan Agreement by
reason of any changes in the Constitution of the State of Ohio or
the Constitution of the United States of America or by reason of
legislative or administrative action (whether state or Federal)
or any final decree, judgment or order of any court or adminis-
trative body (whether state or Federal) entered after the contest
thereof by the Issuer or the Company in good faith to such extent
that the Note and the obligations evidenced thereby are no longer
enforceable by the Bondholder. Any such redemption shall be made
on a date selected by the Company but not more than ninety (90)
days following the effective date of any such constitutional
amendment, legislation, administrative action or final decree,
judgment or order, provided that the date so selected by the
Company shall be the same date as that selected by the Company
for the corresponding prepayment of the Note.
If at any time the Bond Fund Holder shall hold funds in
a separate account in the Bond Fund pursuant to Section 4.2, 5.2
or 5.6 of the Loan Agreement, there shall be an immediate manda-
tory redemption of this Project Bond by the Issuer in the inverse
order of maturity of the principal installments at a redemption
price of 100% of the outstanding principal amount thereof to such
an extent as to exhaust such funds in said separate account. If
such redemption should be a redemption of the entire principal
balance hereof, then all unpaid accrued interest to the date of
such redemption shall be paid on such date.
As provided in the Bond Legislation, the Bondholder is
entitled to enforce the provisions of the Mortgage (as defined in
the Loan Agreement) and to institute, appear in or defend any
suit, action or proceeding to enforce any provisions of the Loan
Agreement and the Bond Legislation and to take any action with
-8-
respect to any Event of Default (as defined in the Loan Agree-
ment).
If (I) any payment to be made under this Project Bond
should not be made on the date provided for such payment to be
made hereunder and should remain unpaid for a period of five (5)
days thereafter or (II) any other Event of Default should occur,
then for so long thereafter as such Event of Default shall
continue uncured, the Bondholder may, at its option, do either
one or both of the following: (1) declare, by giving notice to
the Company and the Issuer in accordance with the provisions of
the Loan Agreement, the unpaid principal balance from time to
time outstanding to bear interest at a rate which shall be the
sum of the rate of interest otherwise then payable hereunder plus
two percent (2%) per annum from the date on which such Event of
Default shall have first occurred through the date on which such
Event of Default shall have been cured, and (2) declare, in
accordance with the provisions of the Loan Agreement, the entire
unpaid principal sum herein agreed to be paid, together with any
interest accrued thereon but not theretofore' paid, to be immedi-
ately due and payable and to thereafter bear interest at a rate
determined in the same manner as provided for in the immediately
preceding clause (1); provided, however, that:
(A) If the Bondholder shall have proceeded to enforce
any right hereunder or under any instrument
securing payment, or otherwise executed in connec-
tion with the issuance, of this Project Bond and
such proceeding shall have been discontinued or
abandoned for any reason or shall have been deter-
mined adversely, then and in every such event the
Issuer and the Bondholder shall be reinstated to
their former positions and rights hereunder,
respectively, and all rights, remedies and powers
of the Bondholder shall continue unimpaired as
before;
(B) At any time, the Bondholder may, in its discretion,
waive its rights hereunder with respect to any
Event of Default, provided that no such waiver
shall apply to any other Event of Default whether
prior or subsequent thereto; and
(e) At any time, the Bondholder may, in its discretion,
rescind any dec~aration that this Project Bond be
immediately due and payable, whereupon the Issuer
and the Bondholder shall be reinstated to their
former positions and rights hereunder, respec-
tively, and all rights, remedies and powers of the
Bondholder shall continue unimpaired as before,
provided that no such rescission shall apply to any
other declaration, whether prior or subsequent
thereto.
-9-
-. -.- ._,- - - ..------ .-- -----~------_._---------_.._-- ----------+.------.------- --'--"
This Project Bond shall not constitute the personal
obligation, either jointly or severally, of the members of the
Council of the Issuer or the officers, officials or employees of
the Issuer.
IT IS HEREBY CERTIFIED AND RECITED that all acts,
conditions and things necessary to be done or performed by the
Issuer or to have happened precedent to and in the issuing of
this Project Bond in order to make it a legal, valid and binding
special obligation of the Issuer in accordance with its terms,
and precedent to and in the execution and delivery of the Agree-
ment, have been done and performed and have happened in regular
and due form as required by law7 that the Issuer has, in its
behalf, received payment in full for this Project Bond; and that
this Project Bond does not exceed or violate any constitutional
or statutory limitation.
IN WITNESS WHEREOF, the Village of Dublin in the County
of Franklin, the State of Ohio, has caused this Project Bond to
be executed in the name of the Issuer by the manual signatures of
its Village Manager and its Finance Director and the seal of its
Village Council to be affixed hereto effective as of October ___,
1985.
VILLAGE OF DUBLIN, OHIO
By dtf~ 4;;~
Cify M nager
B~^'-l.\;"h . ~ ~H..nk.'~
Dire tor of Fi a ce ~
[SEAL]
-10-
--- ----_.. . ___ _ _ . n _ _. ______.__ 0- ___
SCHEDULE I
Month Number Following
(a) the month in which
Substantial Completion of
the Project occurs or (b)
August, 1986, whichever
first occurs Principal Payment
1 $ 831.15
2 838.77
3 846.45
4 854.21
5 862.04
6 869.95
7 877.92
8 885.97
9 894.09
10 902.29
11 910.56
12 918.90
/ 13 927.33
14 935.83
15 944.41
16 953.06
17 961.80
18 970.62
19 979.51
20 988.49
21 997.55
22 1006.70
23 1015.92
24 1025.24
25 1034.64
26 1044.12
27 1053.69
28 1063.35
29 1073.10
30 1082.93
31 1092.86
32 1102.88
33 1112.99
34 1123.19
35 1133.49
36 1143.88
37 1154.36
38 1164.94
39 1175.62
40 1186.40
41 1197.27
,.- -------~- -- --. -- -- - _. -- -~. -----.- - .----
42 1208.25
43 1219.32
44 1230.50
45 1241.78
46 1253.16
47 1264.65
48 1276.24
49 1287.94
50 1299.75
51 1311.66
52 1323.69
53 1335.82
54 1348.07
55 1360.42
56 1372.89
57 1385.48
58 1398.18
59 1411.00
60 1423.93
61 1436.98
62 1450.15
63 1463.45
64 1476.86
65 1490.40
66 1504.06
67 1517.85
68 1531.76
69 1545.80
70 1559.97
71 1574.27
72 1588.71
73 1603.27
74 1617.97
75 1632.80
76 1647.76
77 1662.87
78 1678.11
79 1693.49
80 1709.02
81 1724.68
82 1740.49
83 1756.45
84 1772.55
85 1788.80
86 1805.19
87 1821.74
88 1838.44
89 1855.29
90 1872.30
91 1889.46
92 1906.78
93 1924.26
-2-
.- - ~ -..- - - -'. -. -, --~._. _.--"---~ - -- -- ------------.. -.-- ---- .----- - ...- --'- _.-
94 1941. 90
95 1959.70
96 1977.67
97 1995.79
98 2014.09
99 2032.55
100 2051.18
101 2069.99
102 2088.96
103 2108.11
104 2127.43
105 2146.94
106 2166.62
107 2186.48
108 2206.52
109 2226.75
110 2247.16
111 2267.76
112 2288.54
113 2309.52
114 2330.69
115 2352.06
116 2373.62
117 2395.38
118 2417.33
119 2439.49
120 2461. 85
Date on which first monthly installment of principal is due and
payable:
-3-
SCHEDULE II
DISBURSEt~NT SCHEDULE
for
Project Bond
(Total Aggregate Disbursements ~
to Exceed $1,310,000)
Cumulative Aggregate
Disbursement Amount Date Disbursements to Date
---------.-. .--- -~ - -----~_.- ._---- --------- -- --, ----- . -- - -- --- ..-