71-04 Issue/Sale of Bonds Rockport Improvements

Home Browse Search

Fund Redemption Reqnirements rather than at stated maturity (the "Mandatory Sinking Fund Redemption Requirements"} The aggregate principal of and interest on the Bonds payable in each calendar year in which principal is payable, whether at maturity or. by mandatory sinking fund redemption, shall be not more than three times such principal of and interest on the Bonds payable in any other calendar year in which principal is payable The Bonds shall be subject to redemption prior to stated maturity as follows~ (a) Mandatorv Sinkino Fund Redemption If any of the Bonds are issued as Tenn Bonds, the Term Bonds shall be subject to mandatory sinking fund redemption and be redeemed pursuant to Mandatory Sinking Fund Redemption Requirements, at a redemption price of 100 percent of the principal amount redeemed, pins interest accmed to the redemption date, on the Mandatory Redemption Dates. The aggregate of the moneys to be deposited with the Registrar (as hereinafter defined) for payment of principal of and interest on any Term Bonds shall include amounts sufficient to redeem on -the Mandatory Redemption Dates the principal amOlmt of Tenn Bonds payable on those dates pursnant to the Mandatory Sinking Fund Redemption Requirements (less the amount of any credit as provided below) The City shall have the option to deliver to the Registrar for cancellation Tern Bonds in any aggregate principal amount and to receive a credit against the then current Mandatory Sinking Fund Redemption Requirement (and corresponding mandatory redemption obligation) of the City for any Tenn Bonds. That option shall be exercised by the City on or before the forty-fifth day preceding the applicable Mandatory Redemption Date, by furnishing the Registrar a certificate, signed by the Fiscal Officer, setting forth the extent of the credit to be applied with respect to the then current ¥andatory Sinking Fund Redemption Requirement. If the certificate is not timely furnished to the Registrar, the Mandatory Sinking Fund Redemption Reqnirement (and corresponding mandatory redemption obligation) shall not be rednced. A credit against the then current Mandatory Sinking Fund Redemption Reqnirement (and corresponding mandatory redemption obligation) also shall be received by the City for any Term Bonds which prior thereto have been redeemed (other than through the operation of the Mandatory Sinking Fund Redemption Requirements) or purchased for cancellation and canceled by the ,Registrar, to the extent not applied theretofore as a credit against any mandatory redemption obligation. Each Tenn Bond so delivered, or previously redeemed, or purchased and canceled, shall be credited by the Registrar at 100 percent of the principal amount thereof against the then current Mandatory Sinking Fund Redemption Requirement (and corresponding mandatory redemption obligation) Any excess of tl1at amount over the then current Mandatory Sinking Fund Redemption Requirement shall be credited against subsequent Mandatory Sinking Fund Redemption Requirements (and corresponding mandatory redemption obligations) in the order directed by the Fiscal Officer. (b) Optional Redemption The Bonds shall be subject to redemption prior to maturity by and at the option of the City, in whole at any time, or in part on any Interest Payment Date, on the dates and for the prices specified in the Certificate of Award, provided, however, that the Fiscal Officer may determine in the Certificate of Award that it is in the best interest of the City that the Bonds not be subject to redemption prior to maturity. If the Bonds are subject to redemption, the maximum redemption price shall be no greater that 103% of the principal amount redeemed, plus accrued interest to the redemption date. If optional redemption at a price exceeding 100% of the principal amount to be redeemed is to talœ place as of any applicable Mandatory Redemption Date, the bonds, or portions thereof, to be redeemed optionally shall be selected by lot prior to the selection by lot of the bonds to be redeemed on the same date by operation of the Man<iatory Sinking Fund Redemption Requirements of paragraph (a) The bonds shall be redeemed pursuant to this paragraph only upon written notice from the Fiscal Officer to the Registrar, given upon the direction of the Council of the City by passage of an ordinance. That notice shall specify the redemption date and the principal amount of each maturity of bonds to be redeemed, and shall be given at least 45 days prior to the redemption date or such shorter period as shall be acceptable to the Registrar In the event that notice of redemption shall have been given by the Registrar to the {KLF2636;¡} 2