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<br />. ?.:
<br />CITY OF NORTH OLMSTED
<br />ORDINANCE N0. 85- 66
<br />BY:
<br />AN ORDINANCE AUTHORIZING THE ISSUANCE OF A DUPLICATE BOND AND
<br />APPURTENANT COUPONS TO REPLACE A CITY OF NORTH OLMSTED, OHIO,
<br />SEWER IMPROVEMENT BOND, DATED MARCH 1, 1972, WHICH BOND AND
<br />COUPONS HAVE BEEN LOST, AND DECLARING AN EMERGENCY.
<br />WHEREAS, the Council of the City of North Olmsted, Ohio (the Council)
<br />has been presented with affidavits of Edward J. Boyle, Director of Finance of
<br />the City, and John Rirby, Authorized Signature of Morgan Guaranty Trust
<br />Company of New York, New York, New York, evidencing the loss of a certain bond
<br />and certain coupons attached thereto issued by the City, such bond being a
<br />part of an issue of Sewer Improvement Bonds of the City, dated March 1, 1972
<br />and bearing interest at the rate of 5-1/87 per annum, payable semi-annually on
<br />June 1 and December 1 of each year commencing December 1, 1972; and
<br />WHEREAS, that lost bond was numbered 50, is of the denomination of
<br />$5,000, matures on December 1, 1985, and had the following coupons attached:
<br />Coupon No. Due Date Amount
<br />25 June 1, 1984 $128.12
<br />26 December 1, 1984 128.13
<br />27 June 1, 1985 128.12
<br />28 December 1, 1985 128.13
<br />WHEREAS, the Council has determined that, under the circumstances
<br />described in the affidavits, the acquisition of an indemnity bond to protect
<br />the City against all loss or liability for or on account of the lost bond and
<br />coupons would be a vain and superfluous act and not in the economic interest
<br />of the City in that (i) because the bond and coupons were apparently lost
<br />while in the custody of the City, the City would be the party responsible for
<br />supplying the indemnity bond and, as such, would be the "principal" on the
<br />indemnity bond; (ii) if an indemnity bond were obtained, the City, as the
<br />principal on the indemnity bond, would nonetheless bear the ultimate risk of
<br />loss from any payment in respect of the lost bond and coupons as the surety
<br />company would obtain reimbursement from the City, as principal on the
<br />indemnity bond, for any payments made by the surety company under the
<br />provisions of the indemnity bond and (iii) the City would be required to pay
<br />the cost of obtaining the indemnity bond which would provide no ultimate
<br />protection from loss; and
<br />WHEREAS, this Council has thus determined to proceed with the
<br />issuance of a duplicate bond and coupons without obtaining an indemnity bond;
<br />NOW, THEREFORE, BE IT ORDAINED by the Council of the City of North
<br />Olmsted, Cuyahoga County, Ohio, that:
<br />Section 1. Pursuant to the authority granted by Section 133.40 of
<br />the Ohio Revised Code and the assurances received by this Council as cited
<br />above and consistent with the foregoing recitals, there shall be issued a
<br />duplicate bond, to be numbered 50, with duplicate coupon Nos. 25 through 28
<br />attached. The duplicate bond and coupons shall be issued upon the same terms
<br />and conditions as the original bond No. 50 of an issue of Sewer Improvement
<br />Bonds of the City issued pursuant to Ordinance No. 72-8 passed by this Council
<br />, 4,...--
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