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HomeMy WebLinkAbout96-033 . . . RESOLUTION NO. 96-33 RESOLUTION AUTHORIZING AND PROVIDING FOR THE EXECUTION, ISSUANCE AND SALE OF $7,270,000 AGGREGATE STATED PRINCIPAL AMOUNT OF COLORADO RIVER UNION HIGH SCHOOL DISTRICT NO.2 OF MORAVE COUNTY, ARIZONA, REFUNDING BONDS, SERIES 1995, AND SUPPLEMENTAL INTEREST CERTIFICATES APPERTAINING TO SUCR REFUNDING BONDS; PROVIDING CERTAIN TERMS, COVENANTS AND CONDITIONS CONCERNING THE BONDS AND CERTIFICATES; PROVIDING THE FORM OF BONDS AND CERTIFICA TES; PROVIDING FOR THE DISPOSITION OF THE PROCEEDS OF SUCH BONDS AND CERTIFICATES; PROVIDING FOR THE ANNUAL LEVY OF A TAX FOR THE PAYMENT OF THE BONDS AND CERTIFICATES; ACCEPTING A PROPOSAL FOR THE PURCHASE OF THE BONDS AND CERTIFICATES; APPOINTING A REGISTRAR, TRANSFER AND PAYING AGENT WITH RESPECT TO Tm~ BONDS AND CERTIF'ICA TES; APPROVING THE FORM OF CONTRACT FOR SUCH REGISTRAR, TRANSFER AND PAYING AGENT AND AUTHORIZING EXECUTION AND DELIVERY THEREOF; APPROVING A. DEPOSITORY TRUST AGREEMENT FOR THE SAFEKEEPING AND HANDLING OF SECURITIES AND MONEYS TO BE USED TO PAY THE BONDS BEING REFUNDED AND AUTHORIZING EXECUTION AND DELIVERY THEREOF; MAKING CERTAIN TAX COVENANTS; APPROVING A FEE PAYMENT AGREEMENT FOR PAYMENT TO THE COUNTY TREASURER OF THE FEES AND COSTS OF THE REGISTRAR, TRANSFER AND PAYING AGENT AND ARBITRAGE CONSULT ANTS; AND AUTHORIZING EXECUTION AND DELIVERY THEREOF; APPROVING A BOND PURCHASE AGREEMENT AND AUTHORIZING EXECUTION AND DELIVERY THEREOF; AUTHORIZING THE REDEMPTIOl'l" OF ANY BOND BEING REFUNDED; RATIFYING ALL ACTIONS TAKEN WITH RESPECT TO THE BONDS AND CERTIFICATES AND THE PREPARATION AND DISSEM~ATION OF A PRELIMINARY OFFICIAL STATEMENT; APPROVING A FORM OF OFFICIAL STATEMENT; AUTHORIZING EXECUTION OF THE OFFICIAL ST A. TEl\1ENT; AND AUTHORIZING CIRCULATION OF THE OFFICIAL STATEMENT. \VHEREAS, Colorado River Union High School District No, 2 of Mohave County, Arizona (the "District") has issued certain school improvement bonds and the Governing Board of the District (the "Governing Board") has decided to provide for the refunding and, as applicable, redemption of a certain amount of such bonds on or prior to their respective maturity dates as set forth in Section 14 hereof (hereinafter referred to as the "Bonds Being Refunded"); and WHEREAS, the Governing Board has determined that it is expedient 1:0 refund the Bonds Being Refunded and that the issuance of refunding bonds and supplemental interest certificates appeI1:aining thereto and the application of the net proceeds thereof to pay at maturity or call for redemption the Bonds Being Refunded are necessary and advisable and are in the best interests of the District because the proposed refunding bonds and supplemental interest SWR:?h 120994.1 12/21/95 . certificates appertaining thereto can be sold to effect a lower annual tax burden for the District's taxpayers; and . . 'VHEREAS, this Board finds that the issuance of refunding bonds and supplemental interest certificates appertaining thereto is in the best interests of the District and it is expedient to so issue such bonds and certificates; and VVHEREAS, in accordan.ce with applicable law, the total aggregate of taxes levied to pay principal and interest on such refunding bonds and supplemental interest certificates appertaining thereto in the aggregate shall not exceed the total aggregate amount of principal and interest to become due on the Bonds Being Refunded from the date of issuance of such refunding bonds to the final date of maturity of the Bonds Being Refunded; and WHEREAS, the Governing Board of the District has received a bid from Peacock, Hislop, Staley & Given, Tnc, (the "Underwriter") and the District requested that the bonds and certificates be sold through negotiation to the Underwriter; and V\1HEREAS, by this resolution this Board will approve a bond and certificate purchase agreement (the "Bond Purchase Agreement" or "Purchase Agreement") to be entered into among the District, this Board and the Underwriter for the sale of such refunding bonds and supplemental interest certificates appertaining thereto to the Underwriter; and \VHEREAS, by this resoIution this Board will authorize the execution, issuance and sale of such refunding bonds and certificates appertaining thereto to the Underwriter in accordance with the Purchase Agreement; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF MOHAVE COUNTY, ARIZONA, as follows: S~~ction 1. Authorization, This Board authorizes to be issued and sold $7,270,000 aggregate principal amount of Colorado River Union High School District No.2 of Mohave County, Arizona, Refunding Bonds, Series 1995 (the "Bonds") and $550,000 aggregate payment amount of Supplemental Interest Certificates appertaining thereto (the "Certificates"), The Bonds and Certificates shall be issued and sold in accordance with the provisions of this resolution and delivered against payment therefor by the Underwriter. The Bonds and CeI1ificates are issued for the purpose of providing funds to be used to refund the Bonds Being Refunded. This Board finds and determines that it is expedient, necessary and advisable that the District restructure a portion of its outstanding bonded debt to lower the annual tax burden for the District's taxpayers. Section 2. Terms, The Bonds shall constitute current interest Bonds. A. The Bonds shall be dated January 1, 1996, and will mature on July 1 of the years and in the principal amounts and will bear interest, other than supplemental interest evidenced by the CeI1ificates, from their date to the maturity or earlier redemption of each of the Bonds at the interest rates, in each case set forth in Exhibit C attached hereto. SWR:gmh 120994.1 12/21/95 -2- . . Interest on the Bonds (other than supplemental interest evidenct:d by the Certificates) sha.ll be payable semiannually on January 1 and July 1 of each year, commencing July 1, 1996 (each an "Interest Payment Date") during the term of the Bonds. The Bonds shall be issued in authorized denominations of $5,000 of principal amount or integral multiples thereof and shall be sold under the terms and conditions set forth in the Bond Purchase Agreement. The Bonds are transferable in the manner set forth in the form of Bond attached as Exhibit A hereto and incorporated by reference herein. Interest on the Bonds (other than supplemental interest evidenced by the Certificates) will be payable on each Interest Payment Date by check mailed to the owner thereof at such owner's address shown on the registration books maintained by the Registrar (as defined hereafter). Interest shall be paid to such owner as of the close of business of the Registrar on the fifteenth day of the month preceding an Interest Payment Date (the "Record Date"), Principal of and premium, if any, on the Bonds will be payable, when due, upon presentation and surrender of the Bond at the principal corporate trust office of the Registrar or Paying Agent (as defined hereafter). B, The Bonds shall also bear supplemental interest (represented by the Certificates), The Certificates shall appertain to the Bonds and shall be paid on the dates and in the amounts and represent the supplemental interest rates per annum as set forth in Exhibit C attached hereto on the Bonds for the period commencing January 1 or July 1, as applicable, immediately preceding the payment date through the day immediately prior to such payment date, except that the Certificates payable on July 1\ 1996 represent "B" interest on the Bonds from the date of issuance of the Bonds through June 30, 1996, For purposes of any disclosure document, interest payable to the registered owners of the Bonds may be designated as "A" interest and supplemental interest payments payable to the registered owners of the Ct:rtificates may be designated "B" interest. The Certificates shall be in the form set forth in l~xhibit B attached hereto. The registration books maintained by the Registrar shall show on a separate register the owners of the Certificates. The amount payable as supplemental interest represented by the Certificates will be payable, when due, only upon presentation and surrender of the Certificate at the principal corporate tnrst office of the Registrar or the Paying Agent. The Bonds and Certificates are to be issued in fully registered form and shall be sold under the terms and conditions set forth herein and in the Bond Purchase Agreement and shall have such tenns and provisions as are set forth herein, therein and in the respective forms thereof attached as Exhibits A and H hereto and incorporated by reference herein. The Bonds and Certificates are transferable in the manner set forth in the forms of Bond and Certificate . attached as Exhibits A and H hereto and incorporated by reference herein. SWR: qrnh 12 099,~ . 1 12/22/95 -3- . . . Section 3. Prior Redemption, A, Certificates. The Certificates are not subject to prepayment prior to their stated payment dates. B. Bonds. The Bonds: maturing on or before July 1, 2002 are not subject to redemption prior to their stated maturity. The Bonds maturing on or after July 1, 2003 are subject to call for redemption prior to their stated maturity dates, at the option of the District, in whole or in part, on July 1, 2002, or any interest payment date thereafter by the payment of a redemption price equal to the principal amount of each Bond called for redemption plus accrued interest to the date fixed for redemption pIus a premium (calculated as a percentage of the principal amount of the Bonds to be: redeemed) to be computed as follows: Redemption Dates Premium July 1, 2002 and January 1, 2003 July 1, 2003 and January 1, 2004 July 1, 2004 and thereafter without premium. 1.0% 0.5% C. Notice of Redemption. Notice of redemption of any Bond will be filed with the Paying Agent and mailed to the registered owner thereof at the address shown on the books of the registrar not more than sixty (60) nor less than thirty (30) days prior to the n~demption date. Failure to properly give notice of redemption shall not affect the redemption of any bond for which notice: was properly given. A second notice of redemption will be mailed no more than sixty (60) days after the redemption date, by the same means as the first notice, to each registered owner of current interest Bonds who has not tendered Bonds for redemption. Failure to send the second notice shall have no effect on the validity of the call for redemption, D. Effect of Call for Redemption" On the date designated for redemption by notice given as herein provided, the Bonds or portions thereof so called for redemption shall become and be due and payable at the redemption price provided for redemption of such Bonds on such date, and, if moneys for payment of the redemption price are held in a separate account by the paying agent, interest on such Bonds or portions of Bonds so called for redemption shall cease to accrue, such Bonds or portions thereof shall cease to be entitled to any benefit or security hereunder, the owners of such Bonds or p0l1ions thereof shall have no rights in respect thereof except to receive payment of the redemption price thereof and such Bonds or portions thereof shall be deemed paid and no longer outstanding. E. Redemption of Less Than All. of a Bond, The District may redeem an amount which is included in a Bond in the denomination in excess of, but divisible by I $5,000. In that event, the registered owner shall submit the Bond for partial redemption and the paying agent shall make such partial payment and the Registrar shall cause to be issued a new Bond in a principal amount which reflects the redemption so made to be authenticated and delivered to the registered owner thereof. SWR:gmh 120994. J. 12/21/95 -4- . . . Section 4. Security. For the purpose of paying the principal of, interest on (including supplemental interest evidenced by the Certificates) and costs of administration of the registration and payment of the Bonds and Certificates, there shall be levied on all the taxable property in the District a continuing, direct, annual, ad valorem tax sufficient to pay all such principal, interest and administration costs as the same becomes due, such taxes to be levied, assessed and collected at the same time and in the same manner as other taxes are levied, assessed and collected. Taxes levied with respect to the payment of principal of and interest on the Bonds and the Certificates shall be limited as follows: the total aggregate of taxes levied to pay principal of and interest on the Bonds and the Certificates in the aggregate shall not exceed the total aggregate principal and interest to become due on the Bonds Being Refunded, calculated from the date of issuance of the Bonds to the final maturity date of the Bonds Being Refunded; and further, if the trust created to pay principal of and premium and interest on the Bonds Being Refunded is insufficient to make such payments when due, any taxes levied to pay principal and interest on the Bonds and the Certificat(~s shall first be applied to the payments of amounts due on the Bonds Being Refunded. The proceeds of the taxes shall be kept in a special fund entitled the Debt Service Fund of the District and shall be used only for the payment of principal, interest, premium (if any) or costs as above-stated, This resolution shall be construed as consent of this Board to invest moneys in the Debt Service Fund, subject to the provisions of Section 15 and any restrictions imposed by any entity providing credit enhancement for the Bonds, in any of the securities allowed by A.R.S. S 15-1025. This resolution shall constitute the continuing consent of this Board to such investments and no further annual conslent need be given; provided, however, that this Board may revoke such consent for any fiscal year after fiscal year 1995-96. Upon the creation of th(~ trust for payment of the Bonds Being Refunded, all moneys collecte:d thereafter during the current fiscal year which would otherwise have been credited to the Interest and Redemption Funds for the Bonds Being Refunded shall be credited to the Interest and Redemption Funds created to service the Bonds and Certificates. Section 5. Use of Pr(~ceeds. Upon the delivery of and payment for the Bonds and the Certificates in accordance with the terms of their sale, the net proceeds of the Bonds and the Certificates, together with any premj:um paid by the purchaser for all Bonds, after payment of the costs and expenses of their issuance, shall be set aside, together with any other funds of the District required to pay the Bonds Being Refunded, in a special trust fund maintained by Norwest Bank Arizona, N.A., as depository trustee (the "Depository Trustee") and shall be used to pay, when due, principal of and interest on the Bonds Being Refunded, all as more fully described in that certain Depository Trust Agreement dated as of January 1, 1996, the "Depository Tmst Agreement"), and among the District, the Depository Trustee: and the Treasurer of Mohave County (the "Treasurer"), Amounts credited to the trust, other than any beginning cash balance, shall be invested immediately in obligations issued by or guaranteed by the United States of America the maturing principal of and interest on which, together with any beginning cash balance, shall be sufficient to pay the principal of and premium and interest on the Bonds Being Refunded as the same becomes due at maturity or prior redemption as provided herein. SWR:gmh 120994.1 12/21/95 -5- . . . Any balance of the net proceeds of the Bonds and the Certificates remaining after creation of the trust for the Bonds Being Refunded shall be transferred to the Interest and Redemption Funds created for the Bonds and Certificates. Section 6. Forms of Bonds and Certificates. Pursuant to A.R.S. ~ 35-491, a fully registered bond form is adopted as an alternative to the form of bond provided in A.R.S. ~ 15-1023. A registrar and paying agent will be appointed for the administration of the Bonds and the Certificates. The Bonds shall be in substantially the form of Exhibit A attached hereto and incorporated by reference herein. The Certificates shall be in substantially the form of Exhibit B attached hereto and incorporated by reference herein. In each, there may be such necessary and appropriate omissions, insertions and variations as are permitted or required hereby or by thc~ Bond Purchase Agreement and are approved by those officers executing the Bonds and the Certificates; execution thereof by such officers shall constitute conclusive evidence of such approval. The Bonds and the Certificates may have notations, legends or endorsements required by law, securities exchange: rule or usage. Each Bond and Certificate shall show both the date of the issue and the date of such Bond's or Certificate's authentication and registration. The Bonds and the Certificates are prohibited from being converted to (;oupon or bearer form without the consent of this Board and approval of Gust Rosenfeld, bond counsel. S(~ction 7. Execution _of Bonds. .Certificates and Other Documents. A. The Bonds and the Certificates shall be executed for and on behalf of the District by its President and attested by its Clerk and countersigned by the Treasurer by their manual or facsimile signatures. If an officer whose signature is on a Bond or Certificate no longer holds that office at the time the Bond or Certificate is authenticated and registered, such Bond or Certificate shall nevertheless be valid, No Bond or Certificate shall be valid or binding until authenticated by the manual signature of an authorized representative of the Registrar. The signature of the authorized representative of the Registrar shall be conclusive evidence that such Bond or Certificate has been authenticated and issued pursuant to this resolution, B. This Board approves the form and orders and directs the execution of the following contracts and agreements. each in substantially the form presented to this Board: (1) The Registrar's Fee Payment Agreement; (2) The Registrar, Transfer and Paying Agent's Agreement; (3) The Depository Trust Agreement; (4) The Bond Purchase Agreement. SWR:gmh 120994.1 12/21/95 -6- . . . The Chairman of this Board (the "Chairman") or Treasurer, as applicable, are authorized and directed to execute and deliver such agreements in substantially the form presented to this Board with such necessary and appropriate omissions, insertions and variations as are permitted or required hereby and are approved by those officers executing such agree- ments on behalf of the District and the County. The Clerk of this Board is authorized and directed to attest such signatures. Where applicable, any of the foregoing officers may affix their signatures by manual, mechanical or photographic means. C. The Chairman or the Treasurer, in conjunction with the authorized officers of the District, are authorized to cause the final official statement to be executed and delivered in connection with the sale of the Bonds and the Ct~rtificates. Section 8. Mutilated. Lost or Destroved Bonds or Certificates. In case any Bond or Certificate becomes mutilated or destroyed or lost, the District shall cause to be executed and de~livered a new Bond or Certificate of like date, maturity or payment date, principal or payment amount, interest rate or yield, and tenor in exchange and substitution for and upon the cancellation of the mutilated Bond or Certificate or in lieu of and in substitution for the Bond or Certificate destroyed or lost, upon the owner's paying the reasonable expenses and charges of the District in connection therewith and, in the case of the Bond or Certificate destroyed or lost, filing with the Treasurer by evid,ence satisfactory to the Treasurer that such Bond or Certificate was destroyed or lost, and furnishing the Treasurer with a sufficient indemnity bond pursuant to ~ 47-8405, Arizona Revised Statutes. Section 9. Acceptance of Offer:: Sale of Bonds and Certificates: Bond Purchase Al:reement Approval. The offer of the Underwriter for the purchase of the Bonds and the Certificates is contained in the Bond Purchase Agreement submitted to and on file with the Clerk of this Board and such offer is accepted. The Bonds and the Certificates an~ ordered sold to the Underwriter pursuant to the Bond Purchase Agreement and the Chairman and Clerk of this Board are authorized and directed to execute and deliver the Bond Purchase Agreement to the Underwriter. Execution of the Bond Purchase Agreement by such officers shall be conclusive evidence of approval. The Treasurer is hereby authorized and directed to cause the Bonds and the Certificates to be delivered to or upon the order of the Underwriter upon receipt of payment therefor and satisfaction of the other conditions for delivery thereof in accordance with the terms of the sale. Seedon 10. Official Statement. The distribution by the Underwriter of a Pre- liminary Official Statement dated December 14, 1995 (the "Preliminary Official Statement"), to prospective investors is hereby ratified, confirmed and approved. The use and distribution by the Underwriter of the final Official Statement dated on or about the date hereof (the "Official Statement") in connection with the offering and sale of the Bonds and the Certificates is hereby approved and authorized, The Official Statement shall be in substantially the form of the Preliminary Official Statement on file with the Clerk of this Board with such changes or amendments as approved by the persons signing the Official Statement. Execution of the Official Statement by such persons shall constitute conclusive evidence of such approval. The SWR:qrnh 120994.1 12/21/95 -7- . . . Preliminary Official Statement was, and the Official Statement is deemed to be "final" by this Board, based upon representations of the Governing Board of the District for all purposes of Section 240.15<:2-12, General Rules and Regulations, Securities Exchange Act of 1934 (the "Rule"), Section 11. Re\:istrar ,!lnd Pavin~ A\:ent. The District will maintain an office or agency where Bonds and Certificates may be presented for registration or transfer (the "Registrar") and an office or agency where Bonds and Certificates may be presented for payment (the "Paying Agent"). The District may appoint one or more co-registrars or one or more additional Paying Agents. The Registrar and Paying Agent may make reasonable rules and set reasonable requirements for their respective functions with respect to the owners of the Bonds and the Certificates. Initially, Norwest Bartle Arizona, N ,A., Phoenix, Arizona, is appointed to act as Registrar and Paying Agent with respect to the Bonds and the Certificates. The District may change the Registrar or Paying Agent without notice to or consent of owners of the Bonds and the Certificates and the District may act in any such capacity, Each Paying Agent shall be required to agree in writing that the Paying Agent will hold in trust for the benefit of the owners of the Bonds and the Certificates all moneys held by the Paying Age:nt for the payment of principal of and interest on the Bonds (including supplemental interest represented by the Certificates), The Registrar may appoint an authenticating agent acceptable to the District to authenticate Bonds and Certificates, An authenticating agent may authenticate Bonds and Certificates whe~never the Registrar may do so. Each reference in this resolution to authentication by the Registrar includes authentication by an authenticating agent acting on behalf and in the name of the Registrar and subject to the Registrar's direction, The Registrar shall keep separate registers for the Bonds and the Certificates. Each register shall show the registered owners of the Bonds or the Certificates, as applicable, and of any transfer of the Bonds or the Certificates, as applicable, When Bonds or Certificates are presented to the Registrar or a co.-registrar with a request to register a transfer, the Registrar shall register the transfer on the registration books if its requirements for transfer are met and shall authenticate and deliver one or more Bonds or Certificates registered in the name of the transferee of the same principal amount, maturity and rate of interest as the surrendered Bonds or payment amount, supplemental interest rates and payment dates as the sUITendered Certificates, All transfer fees and costs shall be paid by the transferor. Bonds presented to the Registrar for transfer after the close of business on the Record Date and before the close of business on the next subsequent Interest Payment Date will be registered in the name of the transferee: but the interest payment will be made payable to and mailed to the registered owners shown on the books of the Registrar as of the close of business on the respective Record Date, SWR:gmh J.20994.1 12/21/95 -8- . . . lbe Registrar may, but shall not be required to transfer or exchange :any Bonds during the period commencing (i) on the Record Date to and including the respective Interest Payment Date or (ii) if applicable, on the date fifteen (15) days prior to the selection of Bonds to be redeemed to and including the day on which such notice of redemption is given, The Registrar may, but shall not be required to, transfl~r or exchange any Bonds which have been selected or callt~d for redemption. If the Registrar transfers or exchanges Bonds within the periods referred to above, interest on such Bonds shall be paid to the registered owner as if such transfer or exch;ange had not occurred. The Registrar shall authenticate Bonds for original issue in the aggregate principal amount of $7,270,000 and Certificates in the aggregate payment amount of $550,000 upon the written request of the Treasurer. The Bond Registrar shall keep a register of the Bonds and the Certificates and of their transfer, The aggregate principal amount of Bonds and Certificates outstanding at any time may not exceed that amount except for replacement Bonds or Certificates as to which the requirements of the Registrar and the District are met. Section 12. Resolution a Contract. This resolution shall constitute a contract between the District and the County and the owners. of the Bonds and the Certificates and shall not be repealed or amended in any manner which would impair, impede or lessen the: rights of the registered owners of the Bonds or Certificates then outstanding. The performance by this Board of the obligations in this resolution, in the Bonds and the Certificates and the other agreements listed in Section 7(B) of this resolution is hereby authorized and approved. SE~ction 13. Ratification of Actions, All actions of the officers and agents of the District, the County or this Board which conform to the purposes and intent of this resolution and which further the issuance and sale of the Bonds and the Certificates as contemplatl~d by this resolution whethl~r heretofore or hereafter taken are hereby ratified, confirmed and approved. The proper officers and agents of the District and the County are hereby authorized and directed to do all such acts and things and to execute and deliver all such documents on behalf of the District as may be necessary to carry out the terms and intent of this resolution. Section 14. Prior Redemption of Bonds Being Refunded, This Board orders that the following Bonds Being Refunded be redeemed in advance of maturity at the following respective dates: SWR:qrnh 120994.1 1:2/22/95 -9- . . . - Manarity Redemption Date Principal Date Interest Redemption Issue Designation (July 1) Amount (July I) Rate Premium School Improvement Bonds, Project of 1999 $ 775,000 1997 6.70% 1.0% 1990, Series A (1990) :2 000 825,000 1997 6.75% 1.0% -- School Improvement Bonds, Project of 1999 S 755,000 1997 6.10% 1.0% 1990, Series B (1991) :2 000 815,000 1997 6.20% 1.0% :!001 880,000 1997 6.30% 1.0% 2002 335.000 1997 6.40% 1.0% 2005 1,180,000 1997 6.00% 1.0% - School Improvemerlt Bonds, Project of 2,001 l; 405,000 1998 5.70% 1.0% 1990, Series C (1992) 2002 415,000 1998 5.80% 1.0% 2003 430,000 1998 5.90% 1.0% 2004 455,000 1998 6.00% 1.0% - All actions of the officers of the County taken on or after adoption of this resolution are ratified and confirmed, SE~ction 15. Tax Covenant, In consideration of the purchase and acceptance of the Bonds and the Certificates by the owners thereof and, as authorized by Arizona Revised Statutes, Title 35, Chapter 3, Article 7, and in consideration of retaining the exclusion of interest income on the Bonds (including supplemental interest represented by the Certificates) from gross income for federal income tax purposes, this Board covenants with the owners from time to time of the Bonds and the Certificates to neither take nor fail to take any action which action or failure to act is within its power and authority and would result in interest income on the Bonds (including that payable pursuant to the Certificates) becoming subject to inclusion as gross income for federal income tax purposes under either laws existing on the date of issuance of the Bonds and the Certificates or such laws as they may be modified or amended, This Board agrees that it will comply with such requirement(s) and will take any such action(s) as in the opinion of Gust Rosenfeld ("bond counsel") are necessary to prevent interest income on the Bonds (including supplemental interest represented by the Certificates) becoming subject to inclusion in gross income for federal income tax purposes, Such requirements may include but are not limited to making further specific covenants; making truthful certifications and representations and giving necessary assurances; complying with all representations, covenants and assurances contained in certificates or agreements to be prepared by bond counsel; to pay to the United States of America any required amounts representing rebates of arbitrage profits relating to the Bonds and the Certificates; filing forms, statements and supporting documents as may be required under the federal tax laws; limiting the term of and yield on invt~stments made with moneys relating to the Bonds and the Certificates; and limiting the use of the proceeds of the Bonds and property financed thereby, Sedion 16, Bond Insurance or Credit Enhancement. The Treasurer may expend Bond and Certificate proceeds to purchase bond insurance or other credit enhancements for the Bonds and Certificates, The Treasurer is authorized and directed to payor cause the SWR:gmh 120994.1 12/22/95 -10- . . . Depository Trustee under the Depository Trust Agreement to pay such premiums, fees or costs, together with all other fees, cots and expenses of isswillce, from Bond and Certificate proceeds, Section 17. Other Moneys. The Treasurer is authorized and directed to transfer such amounts of money from the District's Principal and Interest Redemption funds as are necessary to complete the refunding of the Bonds Being Refunded. Section 18. Severability. If any section, paragraph, subdivision, sentence, clause or phrase of this resolution is for any reason held to be illegal or unenforceable, such decision will not affect the validity of the: remaining portions of this resolution. This Board hereby declares that it would have adopted this resolution and each and every other section, paragraph, subdivision, sentence, clause or phrase hereof and authorized the issuance of the Bonds and the Certificates purswmt hereto irrespective of the fact that anyone or more sections, paragraphs, subdivisions, sentences, clauses or phrases ofthis resolution may be held illegal, invalid or unenforceable. PASSED, ADOPTED AND APPROVED by the Board of Supervisors of Mohave County, Arizona, on January 2, 1996, MOHA VE COUNTY BOARD OF SUPERVISORS /'1 . ~/ ~ ~;&i~ Z- Pat Holt, Chairman . . . EXHffiIT A (Face of Bond) COLORADO RIVER UNION HIGH SCHOOL DISTRICT NO.2 OF MOHAVE COUNTY, ARIZONA REFUNDING BOND, SERIES 1995 Number: Denomination: $ Interest Rate Maturity Date Original Dated Date CUSIP % January 1. 1996 Registered Owner: Principal Amount: DOLLARS COLORADO RIVER UNION HIGH SCHOOL DISTRICT NO. 2 OF MOHA VE COUNTY, ARIZONA, for value received, hereby promises to pay to the registered owner identified above, or registered assigns as provided herein, on the maturity datle set forth above, the principal amount set forth above, and to pay interest on the unpaid principal amount at the interest rate shown above. Interest is payable on January 1 and July 1 of each year commencing July 1, 1996, and will accrue from the most n~cent date to which interest has been paid, or, if no interest has been paid, from the original dated date set forth above, Interest will be computed on the basis of a year comprised of 360 days consistmg of twelve (12) months having [hirty (30) days each. Principal of and inten:st on this bond are payable in lawful money of the United States of America. Interest on this bond will be paid by check payable in such money to the order of and mailed on or before the date due to the registered owner at the address shown on the registration books maintained by the registrar (as such term is hereinafter defined) at the close of business on the record date as explained on the reverse hereof. Principal of this bond will be paid when due to the registered owner upon surrender of this bond for payment at the principal trust office of the registrar or paying agent (as such term is hereinafter defined), both of which on the original issue date are the principal corporate trust office of No~'est Bank Arizona, N, A" in Phoenix, Arizona. SWR:gmh 120995.1 12/21/95 A-I . . . Ibis bond is subject to call for redemption prior to maturity as set forth on the reverse side of this bond. See the reverse side of this bond for additional provisions which are a part of this bond. It is hereby certified and recited that all conditions, acts and things n:quired by the Constitution and laws of the State of Arizona to exist, to occur and to be perfonned precedent to and in the issuance of this bond exist, have occurred and have been perfonned and that the issue of bonds of which this is one, together with all other indebtedness of thle District, is within every debt and orner limi.t prescribed by the Cuu:st.it.ui.iuu anJ iaws uf the State of Arizona, and that due provision has been made for the levy and collection of a direct, annual, ad valorem tax upon all of the taxable property in the District for the payment of this bond and of the interest hereon as each becomes due, as limilted as described herein. The District has caused this bond to be executed by the President and attested by the Clerk of its Governing Board and countersigned by the County Treasurer of Mohave County, Arizona, which signatures may be facsimile signatures. This bond is not valid or binding upon the District without the manually affixed signature of an authorized officer of the registrar. This bond is prohibited from being issued in coupon or bearer form without the consent of the Board of Supervisors of Mohave County, Arizona, and the occurrence of certain other conditions, COLORADO RIVER UNION HIGH SCHOOL DISTRICT NO. 2 OF MOHA VE COUNTY, ARIZONA (facs imile) President. Governing Board ATTEST: (facsimile) Clerk, Governing Board COUNTERSIGNED: (facsimile) Treasurer, Mohave County, Arizona - - - - - - - - - - - - - - - - - - - - - - - - - .. - - - - - - - - - - - - - - - - - - - - - - - - - - .. - - - SWR:qrnh 120995.1 12/21/95 A-2 . DATE OF AUTHENTICATION AND REGISTRATION: . . AUTHENTICATION CERTIFICATE This bond is one of the Colorado River Union High School District No.2 of Mohave County, Arizona, Refunding Bonds, Series 1995, described in the resolution mentioned on the reverse hereof. NORWEST BANK ARIZONA, N .A., Registrar Authorized Representative - - - - - - - - - - - - - - - - - - - - - - - - .. - - - - - - - - - - - - - - - - - (Form of Reverse Side of Bond) This bond is one of an issue of general obligation refunding bonds in the aggregate stated principal amount of $7,270,000 of like tenor except as to amount, maturity date, interest rate, redemption provisions, interest payment provisions and number, issued by the District to provide funds to refund certain previously issued and outstanding bonds of the District, pursuant to a resolution of the Board of Supervisors of Mohave County, Arizona, duly adopted prior to the issuance hereof, and pursuant to the Constitution and laws of the State of Arizona relative to the issuance and sale of school district refunding bonds, and all amendments thereto, and all other laws of the State of Arizona thereunto enabling. Bonds of this issue maturing on or before July 1, 2002, are not subject to call for redemption prior to maturity. Bonds of this issue maturing on or after July 1, 2003, are subject to call for redemption prior to their stated maturity dates, at the option of the District, in whole or in part, on July 1, 2002, or any interest payment date thereafter by the payment of a redemption price: equal to the principal amount of each bond of this issue called for re:demption plus accrued interest to the date fixed for redemption plus a premium (calculated as a percentage of the principal amount of such bonds to be redeemed) to be computed as follows: Redemption Dates July 1, 2002 and January 1, 2003 July 1, 2003 and January 1, 2004 July 1, 2004 and thereafter without premium. Premium 1.0% 0.5% For the punctual payment of this bond and the interest hereon and for the levy and collection of ad valorem taxes sufficient for that purpose, the full faith and credit of the District are hereby irrevocably pledged; provided, however, that the total aggregate of taxes levied to pay principal and interest on the issue of bonds of which this is one (including certain supplemental interest with respect to such bonds), in the aggregate shall not exceed the total aggregate principal and interest to become due on the bonds being refunded from the date of issuance of the bonds to the final date of maturity of the bonds being refunded; and subject, SWR:gmh 120995.1 12/22/95 A-3 . DATE OF AUTHENTICATION AND REGISTRATION: . . AUTHENTICATION CERTIFICATE This bond is one of the Colorado River Union High School District No.2 of Mohave County" Arizona, Refunding Bonds, Series 1995, described in the resolution mentioned on the reverse hereof. NORWEST BANK ARIZONA, N..A., Registrar Authorized Representative - - - - - - - - - - - - - - - - - - - - - - - - .. - - - - - - - - - - - - - - - - - (Form of Reverse Side of Bond) This bond is one of an issue of general obligation refunding bonds in the aggregate stated principal amount of $7,270,000 of liike tenor except as to amount, mattlrity date, interest rate, redemption provisions, interest payment provisions and number, issued by the District to provide funds to refund certain previously issued and outstanding bonds of the District, pursuant to a resolution of the Board of Supervisors of Mohave County, Arizona, duly adopted prior to the issuance hereof, and pursuant to the Constitution and laws of the State of Arizona relative to the issuance and sale of school district refunding bonds, and all amendments thereto, and all other laws of the State of Arizona thereunto enabling, Bonds of this issue maturing on or before July 1, 2002, are not subject to call for redemption prior to maturity. Bonds of this issue maturing on or after July 1, 2003, are subject to call for redemption prior to their stated maturity elates, at the option of the District, in whole or in part, on July 1, 2002, or any interest payment date thereafter by the payment of a redemption price equal to the principal amount of each bond of this issue called for redemption plus accrued interest to the date fixed for redemption plus a premium (calculated as a percentage of the principal amount of such bonds to be redeemed) to be computed as follows: Redemption Dates July 1, 2002 and January 1, 2003 July 1, 2003 and January 1, 2004 July 1, 2004 and thereafter without premium. Premium 1.0% 0.5% For the punctual payment of this bond and the interest hereon and for the levy and collection of ad valorem taxes sufficient for that purpose, the full faith and credit of tht: District are hereby irrevocably pledged; provided, however, that the total aggregate of taxes :levied to pay principal and interest on the issue of bonds of which this is one (including certain supplemental interest with respect to such bonds), in the aggregate shall not exceed the total aggregate principal and interest to become due on the bonds being refunded from the date of issuance of the bonds to the final dale of maturity of the bonds being refunded; and subject, SWR:~,mh 1209%.112/21/95 A-3 . . . further, to the rights vested in the owners of the bonds being refunded by the bonds of this issue to the payment of such bonds being refunded from the same tax source in the ,event of a deficiency in the moneys and obligations issued by or guaranteed by the United States of America purchased from the proceeds of the sale of the bonds (and certificates re:presenting supplemental interest on the bonds) and placed in trust for the purpose of providing for payment of principal of and interest on the bonds being refunded. The owner of this bond must rely on the sufficiency of the moneys and obligations placed irrevocably in trust for payment of the bonds being refunded. The registrar or paying agent may be changed without notice. This bond is transferable by the registered owner in person or by attorney duly authorized in writing at the designated office of the registrar, which on the original issue date is the principal corporate trust office of Norwest Bank Arizona, N .A., in Phoenix" Arizona, upon surrender and cancellation of this bond, but only in the manner and subject to the limitation and upon payment of the charges provided in the authorizing resolution. Upon such transfer a new bond or bonds of the same aggregate principal amount, maturity and interest rate will be issued to the transferee in exchange" The registrar may require an owner, among other things, to furnish appropriate endorsements and transfer documents and to pay any taxes. and fees required by law or permitted by the authorizing resolution. The District has chosen the fifteenth day of the calendar month preceding each interest payment date as the record date for this issue of bonds. Should this bond be submitted to the registrar for transfer during the period commencing after the close of business on the record date and continuing to and including the maturity date, ownership will be transferred in the normal manner but the payment of interest will be made payable to the owner shown on the registrar's books at the close of business on the record date" at the discretion of the paying agent and registrar. The registrar may, but shall not be required to transfer or exchange any bonds during the period commencing (i) on the record date to and including the respective interest payment date or (ii) if applicable, on the date fifteen (15) days prior to the selection of bonds to be redeemed to and including the day on which such notice of redemption is given. The registrar may, but shall not be required to, transfer or exchange any bonds which have been selected or called for redemption. If the registrar transfers or exchanges bonds within the periods referred to above, interest on such bonds shall be paid to the registered owner as if such transfer or exchange had not occurre~d. Bonds of this issue are issuable only in fully registered form in the denomination of $5,000 of principal or integral multiples thereof.. The District, the registrar and the paying agent may treat the registered owner of this bond as the absolute owner for the purpose of receiving principal and interest and for all other purposes and none of them shall be affected by any notice to the contrary, [INSERT LEGAL OPINION] SWR:gmh 120995.1 12/21/95 A-4 . . . [INSERT INSURANCE LANGUAGE] The following abbreviations, when used in the inscription on the face of this bond, shall be construed as though they wen~ written out in full according to applicable laws or regulations: TEN COM - as tenants in common TEN ENT - as tenants by the entireties JT TEN - as joint tenants with right of survivorship and not as tenants in common Custod.ian (Minor) (State) UNIF GIFT/TRANS MIN ACT- (Cust) under Uniform Giftsrrransfers to Minors Act Additional abbreviations may also be used though not in list above ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto - . (Name and Address of Transferee) the within bond and all rights thereunder, and hereby irrevocably constitutes and appoints __, attorney to transfer the within bond on the books kept for registration thereof, with full power of substitution in the premises. Dated Note:. The signature(s) on this assignment must correspond with the name(s) as written on the face of the within registered bond in every particular without alteration or enlargement or any change whatsoever, Signature Guaranteed: Firm or Banle Authorized Signature The signature(s) should be guaranteed by an eligible guarantor institution pursuant to SEC Rule 17 Ad-15 ALL FEES AND TRANSFER COSTS SHALL BE PAID BY THE TRANSFEROR SWR:gmh 120995.1 12/21/95 A-5 . . . EXHIBIT B Supplemental Interest Certificate appertaining to Colorado River Union High School District No. 2 of Mohave County, Arizona Refunding Bonds, Series 1995 Certificate Payment Date Original I.~sue Date CUSIP 1, 199_ Registered Owner: SUPPLEMENTAL INTEREST AMOUNT: $__ Colorado River Union High School District No.2 of Mohave County, Arizona (the "District"), for value received, hereby promises to pay to the Registered Owner identified above, or registered assigns as provided herein, on the Certificate Payment Date specified above, the Supplemental Interest Amount specified above. Such amount represents a portion of the supplemental interest payments authorized by the resolution of the Board of Supervisors of Mohave County, Arizona, authorizing the issuance of Colorado River Union High School District No.2 of Mohave County, Arizona Refunding Bonds, Series 1995 (the "Bonds"), in the aggregate principal amount of $7,270,000. The Supplemental Interest Amount evidences a portion of the interest accruing on the outstanding principal amount of the Bonds at the supplemental interest rate applicable to this Certificate and will be paid when due to the registered owner upon surrender of this Certificate for payment at the principal trust office of the registrar or paying agent, both of which on the original issue date is the principal corporate trust office of Norwest Bank Arizona, N .A., Phoenix, Arizona (the "registrar" and "paying agent"). For the punctual payment of this Certificate and for the levy and collectlon of ad valorem taxes sufficient for that purpose, the full faith and credit of the District are hereby irrevocably pledged; provided, however, that the total aggregate of taxes levied to pay principal and interest on the Bonds, :lncluding interest on such Bonds evidenced by the Certificates, in the aggregate shall not exceed the total aggregate principal and interest to become due on the bonds being refunded with proceeds from the sale of such Bonds from the date of issuance of such Bonds to the final date of maturity of such bonds being refunded and subject further to the rights vested in the owners of such bonds being refunded to the payment of such bonds being refunded from the same tax source in the event of a defi.ciency in the moneys and obligations issued by or guarantee:d by the United States of America purchased from the proceeds of the sale of the Bonds and Certificates and placed in trust for the purpose of providing for payment of principal of, premium, if any, and interest on such bonds being refunded, The owner of this Certificate must rely on the sufficiency of the moneys and obligations placed irrevocably in trust for payment of the bonds being refunded. SWR:gmh 120997.1 12/22/95 B-1 . . . The owner of this Certificate shall have no claim to the payment of principal or non- supplemental interest on the Bonds unless such person shall also be the owner of such Bonds at such Bonds' maturity or non-supplemental interest payment date, as applicable. This Certificate is not subject to payment prior to the Cc~rtificate Payment Date. This Certificate is transferable by the registered owner in person or by attorney duly authorized in writing and at the designated office of the registrar upon surrender and cancellation of this Certificate. Upon such transfer a new Certificate or Certificates will be issued to the transferee in exchange. The registrar and paying agent may be changed without notice. The District, the registrar and the paying agent may treat the registered owner of this Certificate as the absolute owner for the purpose of receiving payment hereof and for all other purposes and none of them shall be affected by any notice to the contrary. This Certificate is not valid or binding upon the District without the manually affixed signature of an authorized representative of the registrar. This Certificate is prohibited from being issued in coupon or bearer form without the consent of the Board of Supervisors of Mohave County, Arizona, and thi~ occurrence of certain other conditions. COLORADO RIVER UNION HIGH SCHOOL DISTRICT NO.2 OF MOHA VE COUNTY, ARIZONA (facsimile) President, Governing Board ATTEST: COUNTERSIGNED: (facsimile) Clerk, Governing Board (facsimile) Treasurer, Mohave County, Arizona SWR:9'mh 120997.1 12/21/95 B-2 . . . DATE OF AUTHENTICATION AND REGISTRllTION: AUTHENTIC A TION CERTIFICATE This Certificate of Ownership of Supplemental Interest Payment is one of the certificates authorized to be issued in conjunction with the issuance of Colorado Rivf:r Union High School District No.2 of Mohave County, Arizona Refunding Bonds, Series 1995. NORWEST BAJ~K ARIZONA, N.A., as RegIstrar Authorized Representative - - - - - - - - - - - - - - - - - - - - - - .. - - - - - - - - ~, - - - - - - - - - - - - - - - - - - - - - - - [INSERT LEGAL OPINION] [INSERT INSURANCE LANGUAGE] (Form of Assignment) The following abbreviations, when used in the inscription on the face of this certificate shall be construed as though they were written out in full according to applicable laws or regulations: TEN COM-as tenants in common TEN ENT -as tenants by the entireties JT TEN-as joint tenants with right of survivorship and not as tenants in common UNI:F GIFT/TRANS MIN ACT- Custodian - - (Cust) (Minor) under Uniform Gifts/Transfers to Minors Act_Jstate)_ Additional abbreviations may also be used though not in list above ASSIGNME:~T FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto - (N ame and Address of Transferee) the within certificate and all rights thereunder, and hereby irrevocably constitutes and appoints _ _ , attorney to transfer the within certificate on the books kept for registration thereof., with full power of substitution in the premIses. SWR:gmh 120997.1 12/21/95 B-3 . . , :~.."': .'. . Dated Signature Guaranteed: - Signature(s) must be guaranteed by all eligible guarantor institution pursuant to Securities and Exchange Commission Rule 17 Ad-15 Note: The signature(s) on this assignment must correspond with the name(s) as written on the face of the within registered certificate in every particular without alteration or enlargement or any change whatsoever. ALL FEES AND TRANSFER COSTS WILL BE PAID BY THE TRANSli'EROR SWR:gmh 120997.1 12/21/95 B-4 . l;:XHIBIT C TERMS OF THE BONDS Maturity Date Principal Interest (Julv 1) Amount RatL 1999 $1,500,000 4.000% 2000 1,750;000 4.100% 2001 1,350,000 4.200% 2002 800,000 4.300 % 2003 475,000 4.400 % 2004 470,000 4.500% 2005 925,000 4.625% SUPPLEMENT AL INTEREST CERTIFICATES appertaining to Refunding Bonds Payment Payment Approximate Supplemental Date Amount Price Yield Interest Rate . 7/1/96 $80,000 98.146% 4.00% 2.330286% 1/1/97 75,000 96.222 % 4.00% 2.063274% 7/1/97 70,000 94.199% 4.10% 1.925722 % 1/ 1/98 70,000 92.129% 4.20% 1.925722 % 7/1/98 75,000 90.125% 4.25% 2.063274% 1/1/99 75,000 88.121 % 4.30% 2.063274% 7/1/99 105,000 86.120% 4.35% 2.888583 % . SWR:qrnh 123106.1 12/22/95