61-90 Sewer System Improvement Notes $340,000

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NOW, THEREPORE, BE IT ORDAINED BY THE CIT~ OF LAKEWOOD, CUYAHOGA COUNTY, OHIO: Section 1. It is hereby declared necessary to issue bonds of the City of Lakewood An the principal amount of $340,000 for the purpose of making improvements to the City's sewage treatment and disposal works and its ancillary systems. Section 2- Said bonds shall be dated approximately August 1, 1991, shall bear interest at the estimated rate of ten ~er centum (10%) per annum, payable semi-annually, until the principal sum is paid, and shall mature in thirty (30) annual installments after their issuance. Section 3. It is hereby determined that notes (hereinafter called the "Notes") in the principal amount of $340,000 shall be issued in anticipation of the issuance of said bonds for the above- described purpose and to pay and retire the outstanding notes. The Notes shall bear interest at such rate or rates not exceeding the maximum interest rate of fifteen per centum (15%) per annum, as may be fixed by the Director of Finance in her certificate awarding the Notes at private sale, such interest to be payable at maturity~ shall be dated August 24, 1990~ shall mature on August 23, 1991~ shall not be subject to redemption by the City at any time prior to maturity, unless the original purchaser of the Notes requeshs that the Notes provide for such redemption, in which case provisions shall be made for calling the Notes for redemption upon ten (10) days written notice to the original ])urchaser~ and shall be payable as to both principal and interest at the offices of the Director of Finance of the City, or at banks or trust companies, as determined by the Director of Finance, without deduction for exchange, collection or service charge. Section 4. Pursuant to Section 133.30(B), Ohio Revised Code, the Director of Finance may combine the Notes with other notes into a single consolidated issue of notes for purposes of their sale as a single issue, to be designated "Various Purpose General Obligation Bond Anticipation Notes - 1990 Renewal"~ such notes shall contain a summary statement of purposes encompassing the purpose for which the Notes are issued~ shall state that they are issued pursuant to this 0rdinance~ shall be issued in such numbers and denominations as may be requested by the original ~rchaser~ and shall be executed by the Mayor and Director of Finance, provided that one of such signatures may be a facsimile signature. Section 5. The Notes shall be sold at private sale at not less than the par value thereof by the Director of Finance at an interest rate not exceeding that specified in Section 3 of this ordinance pursuant to and in accordance with the terms and conditions set forth in the form of Invitation for Proposals attached hereto as Exhibit 1, and after distribution of said Invitation for Proposals to prospective purchasers of the Notes~ and the Director of Finance is hereby authorized and directed to deliver the Notes, when executed, to the original purchaser thereof upon payment of the purchase price. The proceeds of such sale shall be paid into the proper fund and used for the purpose for which the Notes are being issued under the provisions of this ordinance and to pay those costs of issuance set forth in Section 133.15(B), Ohio Revised Code, and any such costs which are future financing costs may be paid from the same sources from which the principal of and interest on the Notes are paid. Any premium and accrue~ interest ghall be transferred to the Bond Retirement Fund to be applied to the payment of the principal of an interest on the Notes in the manner provided by law. The City covenants that it will restrict the use of the proceeds of the Notes in such manner and to such extent, if any, as may be necessary so that the Notes will not constitute arbitrage bonds under -2-