|
notice from the Fiscal Officer to the Registrar, given upon the direction of the
<br />Council of the City by passage of an ordinance. That notice shall specify the
<br />redemption date and the principal amount of each maturity of bonds to be
<br />redeemed, and shall be given at least 45 days prior to the redemption date or
<br />such shorter period as shall be acceptable to the Registrar. In the event that
<br />notice of redemption shall have been given by the Registrar to the registered
<br />owners as hereinafter provided, there shall be deposited with the Registrar on
<br />or prior to the redemption date, funds which, in addition to any other moneys
<br />available therefor and held by the Registrar, will be sufficient to redeem at the
<br />redemption price thereof, plus interest accrued to the redemption date, all of
<br />the redeemable bonds for which notice of redemption has been given.
<br />
<br /> (c) Partial Redemption. If fewer than all of the outstanding bonds
<br />are called for redemption at one time, they shall be called in inverse order of
<br />their maturities, and if fewer than all bonds of a single maturity are to be
<br />redeemed, the selection of bonds to be redeemed, or portions thereof in amounts
<br />of $5,000 or any integral multiple thereof, shall be made by lot by the Registrar
<br />in any manner which the Registrar may determine. In the case of a partial
<br />redemption of bonds by lot when bonds of denominations greater than $5,000 are
<br />then outstanding, each $5,000 unit of principal thereof shall be treated as
<br />though it were a separate bond of the denomination of $5,000. If it is
<br />determined that one or more, but not all of the $5,000 units of principal amount
<br />represented by a bond are to be called for redemption, then upon notice of
<br />redemption of a $5,000 unit or units, the registered owner of that bond shall
<br />surrender the bond to the Registrar (i) for payment of the redemption price of
<br />the $5,000 unit or units called for redemption (including, without limitation,
<br />the interest accrued to the date fixed for redemption and any premium), and
<br />(ii) for issuance, without charge to the registered owner thereof, of a new bond
<br />or bonds of any authorized denominations or denominations in an aggregate
<br />principal amount equal to the unmatured and unredeemed portion of, and bearing
<br />interest at the same rate and maturing on the same date as, the bond surrendered.
<br />
<br /> (d) Notice of Redemption. The notice of the call for redemption of
<br />bonds shall identify (i) by designation, letters, numbers or other distinguishing
<br />marks, the bonds or portions thereof to be redeemed, (ii) the redemption price
<br />to be paid, (iii) the date fixed for redemption, and (iv) the place or places
<br />where the amounts due upon redemption are payable. The notice shall be given by
<br />the Registrar on behalf of the City by mailing a copy of the redemption notice
<br />by first class mail, postage prepaid, at least 30 days prior to the date fixed
<br />for redemption, to the registered owner of each bond subject to redemption in
<br />whole or in part at the registered owner's address shown on the Register
<br />maintained by the Registrar at the close of business on the 15th day preceding
<br />that mailing. Failure to receive notice by mail or any defect in that notice
<br />regarding any bond, however, shall not affect the validity of the proceedings for
<br />the redemption of any bonds.
<br />
<br /> (e) Payment of Redeemed Bonds. Notice having been mailed in the
<br />manner provided in the preceding paragraph of this ordinance, the bonds and
<br />portions thereof called for redemption shall become due and payable on the
<br />redemption date, and, upon presentation and surrender thereof at the place or
<br />places specified in that notice, shall be paid at the redemption price, plus
<br />interest accrued to the redemption date. If moneys for the redemption of all of
<br />the bonds and portions thereof to be redeemed, together with interest accrued
<br />thereon to the redemption date, are held by the Registrar on the redemption date,
<br />so as to be available therefor on that date and, if notice of redemption has been
<br />deposited in the mail as aforesaid, then from and after the redemption date those
<br />bonds and portions thereof called for redemption shall cease to bear interest and
<br />no longer shall be considered to be outstanding. If those moneys shall not be
<br />so available on the redemption date, or that notice shall not have been deposited
<br />in the mail as aforesaid, those bonds and portions thereof shall continue to bear
<br />interest, until they are paid, at the same rate as they would have borne had they
<br />not been called for redemption. All moneys held by the Registrar for the
<br />redemption of particular bonds shall be held in trust for the account of the
<br />registered owners thereof and shall be paid to them, respectively, upon
<br />presentation and surrender of those bonds.
<br />
<br />-3-
<br />
<br />
<br />
|