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DEFEASANCE OF WATER SYSTEM REVENUE BONDS
<br />SERIES 1995
<br />First Reading & Referred to Finance
<br />Committee 4/17/17. Second Reading 5/1/17.
<br />ORDINANCE NO. 22 -17 By: Anderson, Bullock, Litten,
<br />Marx, Nowlin, O'Leary, O'Malley.
<br />AN ORDINANCE AUTHORIZING THE APPROPRIATION OF MONEY FROM THE WATER FUND
<br />OF THE CITY OF LAKEWOOD, OHIO FOR THE PURPOSE OF DEFEASING $670,000 WATER
<br />SYSTEM MORTGAGE REVENUE BONDS, DATED APRIL 15, 1995 ISSUED BY THE CITY,
<br />ESTABLISHING AND CREATING AN ESCROW FUND FOR SAID DEFEASANCE, AUTHORIZING
<br />THE APPOINTMENT OF AN ESCROW TRUSTEE, AUTHORIZING AND APPROVING THE FORM
<br />OF AN ESCROW AGREEMENT IN CONNECTION WITH SUCH DEFEASANCE
<br />WHEREAS, the City of Lakewood (the "City ") has issued special obligation bonds dated
<br />April 15, 1995 in the original principal amount of $3,125,000 (the "Outstanding Bonds "), of which
<br />$865,000 of such Outstanding Bonds remains outstanding; and;
<br />WHEREAS, the City Council (the "Council ") of the City desires to defease $670,000 of the
<br />Outstanding Bonds maturing between July 1, 2018 and July 1, 2020 with cash from its Water Fund for the
<br />purpose of enhancing the marketing of other obligations to be issued by the City; Now Therefore
<br />BE IT ORDAINED BY THE CITY OF LAKEWOOD, OHIO:
<br />Section 1. This Council hereby authorizes the transfer of an amount not to exceed $565,000
<br />from the Water Fund of the City to the Escrow Fund, as defined herein below, for the purpose of
<br />defeasing the principal and interest of the Outstanding Bonds.
<br />Section 2. There is hereby created and established, a trust fund to be designated "City of
<br />Lakewood, Ohio 1995 Bonds Escrow Fund" (the "Escrow Fund "), or as otherwise designated by the
<br />Director of Finance, which shall be held in the custody of the Escrow Trustee, as hereinafter defined, and
<br />shall be used for the purpose of funding the defeasance of the Outstanding Bonds.
<br />Section 3. The Director of Finance of the City (the "Director of Finance "), or any other
<br />appropriate officer of the City, is hereby authorized and directed to execute on behalf of the City an Escrow
<br />Agreement (the "Escrow Agreement ") with a bank or trust company to be selected by the Director of
<br />Finance (the "Escrow Trustee "), setting forth the terms by which the Escrow Fund shall be held and
<br />disbursed, which Escrow Agreement shall be in such form, not inconsistent with this ordinance, as the
<br />Director of Finance shall determine. Pursuant to the Escrow Agreement, the Escrow Trustee shall apply the
<br />moneys deposited in the Escrow Fund to the purchase of direct obligations of the United States of America
<br />of such maturities and interest payment dates and earning interest at such rates as will, as certified by such
<br />independent public accounting firm as shall be acceptable to the Director Finance, without further
<br />investment of reinvestment of either the principal amount thereof or the interest earnings therefrom, be
<br />sufficient to ay (i) the principal on the Outstanding Bonds, which is due and payable on each July 1,
<br />commencing July 1, 2018, and (ii) the interest on the Outstanding Bonds, which is due and payable on each
<br />January 1 and July 1, commencing January 1, 2018, through final maturity of the Outstanding Bonds on
<br />July 1, 2020.
<br />115655942
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