O-11-35ORDINANCE NO. 0 -11 -35
ORDINANCE AUTHORIZING THE ISSUANCE OF GENERAL
OBLIGATION BONDS OF 2011 OF THE VILLAGE OF DEERFIELD,
ILLINOIS
BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE
VILLAGE OF DEERFIELD, ILLINOIS, AS FOLLOWS:
Section 1. Authority, Purposes and Findings. This ordinance is adopted
pursuant to Section 6 of Article VII of the Illinois Constitution of 1970 for the purpose of
financing (i) the expansion and remodeling of the Deerfield Public Library (the "Library
Project "), (ii) infrastructure improvements consisting of the 2011 street rehabilitation
program, the Lake Cook Road utility relocation, the Carlisle /Carriageway project, the
Central & Juniper Bridge construction project and the Deerbrook lift station (collectively,
the "Infrastructure Projects ") and (iii) the renovation of the Deerfield Wastewater
Reclamation Facility (the "WRF Project ").
At the general election held on November 2, 2010, the voters of the Village of
Deerfield, Illinois (the "Village ") approved an advisory referendum question supporting
the issuance of $11,775,000 principal amount of general obligation bonds of the Village
for financing the Library Project. On June 15, 2011, the Deerfield Library Board
adopted a resolution approving a finance plan for the Library Project and requesting the
issuance by the Village of $11,775,000 principal amount of general obligation bonds of
the Village (having a maximum maturity of 20 years) for financing the Library Project. It
is found and determined that Village will finance a portion of the costs of the Library
Project by the issuance of general obligation bonds authorized by this ordinance.
The Village finds and determines that a portion of the costs of the WRF Project
will be financed by the issuance of general obligation bonds authorized by this
ordinance and that $12,500,000 principal amount thereof shall be issued as "Qualified
Energy Conservation Bonds" under Section 54D of the Internal Revenue Code of 1986
(the "Code "). To facilitate the issuance of Qualified Energy Conservation Bonds by the
Village, on September 13, 2011, the Illinois Finance Authority adopted a resolution
allocating to the Village the right to designate up to $13,000,000 principal amount of the
general obligation bonds issued to finance the WRF Project as Qualified Energy
Conservation Bonds.
Section 2. Definitions. The following terms shall, for all purposes of this
ordinance, have the following meanings unless a different meaning clearly appears from
the context:
"Annual Sinking Fund Excess" means, for a particular year, as of January 31St of
that year, the excess (if any) of the sum of the moneys and investment securities held in
the 2011B Sinking Fund over the aggregate amount of all Annual Sinking Fund
Payments required to have been made in prior years pursuant to Paragraph (A) of
Section 18 of this ordinance, as adjusted by Paragraph (B) of Section 18.
"Annual Sinking Fund Payment" means, with respect to each year, the required
deposit to the Sinking Fund determined pursuant to Section 18.
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"Available Project Proceeds" means (A) the excess of (i) the proceeds of sale of
the Taxable Bonds, over (ii) the issuance costs financed by the Taxable Bonds (to the
extent that such costs do not exceed two percent of such proceeds), and (B) the
proceeds from any investment of such excess.
"Code" means the Internal Revenue Code of 1986, and the regulations
promulgated or proposed pursuant thereto as the same may be in effect from time to
time.
"DTC" means The Depository Trust Company, as securities depository for the
2011 Bonds.
"EMMA" means the Electronic Municipal Market Access system of the MSRB.
"Expenditure Termination Date" means the third anniversary date of the date of
issuance of the Taxable Bonds, and the last date of the "expenditure period" as defined
in Section 54A(d)(2)(B)(ii) of the Code or, upon the extension of such "expenditure
period" pursuant to Section 54A(d)(2)(B)(iii) of the Code, the last day of the "expenditure
period" as so extended.
"Extraordinary Event" means a change to Section 54A, Section 54D or
Section 6431 of the Code, or to any guidance published by the IRS or the United States
Department of the Treasury with respect to such sections or any other determination by
the IRS or the United States Department of the Treasury, pursuant to which the
Village's cash subsidy payment from the United States Department of the Treasury with
respect to interest paid on the Taxable Bonds is reduced or eliminated and which is not
the result of any act or omission by the Village to satisfy the requirements to qualify to
receive the cash subsidy payment.
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"Infrastructure Bonds" means the $4,000,000 principal amount of the Tax - Exempt
Bonds allocated to the financing of the Infrastructure Projects.
"Infrastructure Projects" has the meaning ascribed to that term in Section 1 of this
ordinance.
"IRS" means the Internal Revenue Service of the United States Department of
the Treasury.
"Library Bonds" means the $5,900,000 principal amount of the Tax - Exempt
Bonds allocated to the financing of the Library Project.
"Library Project" means the expansion and remodeling of the Deerfield Public
Library.
"Make Whole Redemption Price" means a redemption price equal to the greater
of: (A) the principal amount of the Taxable Bonds to be redeemed, or (B) the sum of the
present value of the remaining scheduled payments of principal and interest to the
maturity date on the Taxable Bonds to be redeemed, not including any portion of those
payments of interest accrued and unpaid as of the date such Taxable Bonds are to be
redeemed, discounted to the date of redemption of the Taxable Bonds to be redeemed
on a semiannual basis (assuming a 360 -day year consisting of twelve 30 -day months)
at the Treasury Rate.
"MSRB" means the Municipal Securities Rulemaking Board.
"Qualified Project Costs" means the cost of acquisition, construction and
equipping of the WRF Project, including the costs of issuance of the Taxable Bonds,
interest during construction, the cost of engineering and legal expenses, plans,
specifications, other expenses necessary or incident to constructing any portion of the
WRF Project and such other costs, expenses and funding as may be necessary or
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incident to the construction of the WRF Project, all to the extent, but only to the extent,
such costs may be funded with the proceeds of Qualified Energy Conservation Bonds
under Section 54A and Section 54D of the Code.
"Qualified Energy Conservation Bonds" means any "qualified energy
conservation bond" as defined in Section 54D(a) of the Code.
"Taxable Bonds" means the $12,500,000 principal amount of general obligation
bonds of the Village authorized by Section 5 of this ordinance.
"Tax- Exempt Bonds" means the $9,900,000 principal amount of general
obligation bonds of the Village authorized by Section 4 of this ordinance.
"Treasury Rate" means, as of any redemption date, the yield to maturity as of
such redemption date of United States Treasury securities with a constant maturity (as
compiled and published in the most recent Federal Reserve Statistical Release H.15
(519) that has become publicly available four business days prior to the redemption
date (excluding inflation indexed securities) (or, if such Statistical Release is no longer
published, any publicly available source of similar market data)) most nearly equal to
the period from the redemption date to the maturity date of the bonds to be redeemed;
provided, however, that if the period from the redemption date to such maturity date is
less than one year, the weekly average yield on actually traded United States Treasury
securities adjusted to a constant maturity of one year will be used.
"2011 Bond" or "2011 Bonds" means, collectively, the Tax - Exempt Bonds and the
Taxable Bonds.
"Village" means the Village of Deerfield, a municipal corporation and a home rule
unit of the State of Illinois.
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"WRF Project" means the renovation of the Deerfield Wastewater Reclamation
Facility.
Section 3. Appropriations. (A) The sum of $5,900,000 is appropriated to
pay the costs of the Library Project.
(B) The sum of $4,000,000 is appropriated to pay costs of the Infrastructure
Projects.
(C) The sum of $12,500,000 is appropriated to pay the costs of the WRF
Project.
(D) Said costs are inclusive of the costs of issuance of the applicable series of
2011 Bonds authorized to fund each such appropriation.
Section 4. Authorization and Terms of Tax - Exempt Bonds. Pursuant to the
home rule powers of the Village to incur debt payable from ad valorem property tax
receipts and for the purpose of financing the appropriation for the Library Project
provided for in Paragraph (A) of Section 3 of this ordinance, unlimited tax general
obligation bonds of the Village are authorized to be issued and sold in an aggregate
principal amount of $5,900,000 (the "Library Bonds ")
The Library Bonds shall mature on December 1 of the following years in the
following principal amounts:
M
Year Principal Amount
2012
$625,000
2013
245,000
2014
245,000
2015
250,000
2016
250,000
2017
255,000
2018
260,000
2019
265,000
2020
270,000
2021
280,000
2022
285,000
2023
295,000
2024
305,000
2025
315,000
2026
325,000
2027
335,000
2028
350,000
2029
365,000
2030
380,000
Pursuant to the home rule powers of the Village to incur debt payable from ad
valorem property tax receipts and for the purpose of financing the appropriation for the
Infrastructure Projects provided for in Paragraph (B) of Section 3 of this ordinance,
unlimited tax general obligation bonds of the Village are authorized to be issued and
sold in an aggregate principal amount of $4,000,000 (the "Infrastructure Bonds ").
The Infrastructure Bonds shall mature on December 1 of the following years in
the following principal amounts:
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Year Principal Amount
2014
$ 10,000
2015
20,000
2016
30,000
2017
40,000
2018
50,000
2019
60,000
2020
70,000
2021
85,000
2022
95,000
2023
105,000
2024
120,000
2025
135,000
2026
150,000
2027
165,000
2028
5,000
2029
915,000
2030
955,000
2031
990,000
The Library Bonds and the Infrastructure Bonds shall be combined for purpose of
sale into a single series of the bonds of the Village (the "Tax- Exempt Bonds ") that shall
be designated "General Obligation Bonds, Series 2011A."
The Tax - Exempt Bonds shall be issuable in the denominations of $5,000 or any
integral multiple thereof and may bear such identifying numbers or letters as shall be
useful to facilitate the registration, transfer and exchange of Tax - Exempt Bonds. Unless
otherwise determined in the order to authenticate the Tax - Exempt Bonds, each Tax-
Exempt Bond delivered upon the original issuance of the Tax - Exempt Bonds shall be
dated as of October 17, 2011. Each Tax - Exempt Bond thereafter issued upon any
transfer, exchange or replacement of Tax - Exempt Bonds shall be dated so that no gain
or loss of interest shall result from such transfer, exchange or replacement.
The Tax - Exempt Bonds shall mature on December 1 in each year shown in the
following table in the respective principal amount set forth opposite each such year and
the Tax - Exempt Bonds maturing in each such year shall bear interest at the respective
rate per annum set forth opposite such year:
Year
Principal Amount
Interest Rate
2012
$ 625,000
1.000%
2013
245,000
1.000
2014
255,000
1.000
2015
270,000
1.000
2016
280,000
1.250
2017
295,000
1.500
2018
310,000
1.750
2019
325,000
2.000
2020
340,000
2.000
2021
365,000
2.000
2022
380,000
2.250
2023
400,000
2.400
2024
425,000
2.500
2025
450,000
2.700
2026
475,000
2.750
2027
500,000
3.000
2028
355,000
3.000
2029
1,280,000
3.000
2030
1,335,000
3.150
2031
990,000
3.250
Each Tax - Exempt Bond shall bear interest from its date, computed on the basis
of a 360 day year consisting of twelve 30 day months and payable in lawful money of
the United States of America on June 1, 2012 and semiannually thereafter on each
June 1 and December 1 at the rates per annum herein determined.
The principal of the Tax - Exempt Bonds shall be payable in lawful money of the
United States of America upon presentation and surrender thereof at the corporate trust
office of U.S. Bank National Association, in the City of Chicago, Illinois, which is hereby
appointed as bond registrar and paying agent for the Tax - Exempt Bonds. Interest on
the Tax - Exempt Bonds shall be payable on each interest payment date to the registered
owners of record thereof appearing on the registration books maintained by the Village
M
for such purpose at the corporate trust office of the bond registrar, as of the close of
business on the 15th day of the calendar month next preceding the applicable interest
payment date. Interest on the Tax - Exempt Bonds shall be paid by check or draft mailed
to such registered owners at their addresses appearing on the registration books or by
wire transfer pursuant to an agreement by and between the Village and the registered
owner.
The Tax - Exempt Bonds maturing on or after December 1, 2022 shall be subject
to redemption prior to maturity at the option of the Village and upon notice as herein
provided, in such principal amounts and from such maturities as the Village shall
determine and by lot within a single maturity, on December 1, 2021 and on any date
thereafter, at a redemption price equal to the principal amount thereof to be redeemed.
In the event of the redemption of less than all the Tax - Exempt Bonds of like
maturity, the aggregate principal amount thereof to be redeemed shall be $5,000 or an
integral multiple thereof and the bond registrar shall assign to each Tax - Exempt Bond of
such maturity a distinctive number for each $5,000 principal amount of such Tax-
Exempt Bond and shall select by lot from the numbers so assigned as many numbers
as, at $5,000 for each number, shall equal the principal amount of such Tax - Exempt
Bonds to be redeemed. The Tax - Exempt Bonds to be redeemed shall be the Tax-
Exempt Bonds to which were assigned numbers so selected; provided that only so
much of the principal amount of each Tax - Exempt Bond shall be redeemed as shall
equal $5,000 for each number assigned to it and so selected.
Notice of the redemption of Tax - Exempt Bonds shall be mailed not less than 30
days nor more than 60 days prior to the date fixed for such redemption to the registered
owners of Tax - Exempt Bonds to be redeemed at their last addresses appearing on said
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registration books. The Tax - Exempt Bonds or portions thereof specified in said notice
shall become due and payable at the applicable redemption price on the redemption
date therein designated, and if, on the redemption date, moneys for payment of the
redemption price of all the Tax - Exempt Bonds or portions thereof to be redeemed,
together with interest to the redemption date, shall be available for such payment on
said date, and if notice of redemption shall have been mailed as aforesaid (and
notwithstanding any defect therein or the lack of actual receipt thereof by any registered
owner) then from and after the redemption date interest on such Tax - Exempt Bonds or
portions thereof shall cease to accrue and become payable. If there shall be drawn for
redemption less than all of a Tax - Exempt Bond, the Village shall execute and the bond
registrar shall authenticate and deliver, upon the surrender of such Tax - Exempt Bond,
without charge to the owner thereof, in exchange for the unredeemed balance of the
Tax - Exempt Bond so surrendered, Tax - Exempt Bonds of like maturity and interest rate
and of the denomination of $5,000 or any integral multiple thereof.
The bond registrar shall not be required to transfer or exchange any Tax - Exempt
Bond after notice of the redemption of all or a portion thereof has been mailed. The
bond registrar shall not be required to transfer or exchange any Tax - Exempt Bond
during a period of 15 days next preceding the mailing of a notice of redemption that
could designate for redemption all or a portion of such Tax - Exempt Bond.
Section 5. Authorization and Terms of Taxable Bonds. Pursuant to the
home rule powers of the Village to incur debt payable from ad valorem property tax
receipts and for the purpose of financing the appropriation for the WRF Project provided
for in Paragraph (C) of Section 3 of this ordinance, unlimited tax general obligation
bonds of the Village are authorized to be issued and sold in an aggregate principal
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amount of $12,500,000 (the "Taxable Bonds "), and shall be designated "General
Obligation Bonds, Taxable Series 2011B (Qualified Energy Conservation Bonds —
Direct Payment)."
Taxable Bonds shall be issuable in the denominations of $5,000 or any integral
multiple thereof and may bear such identifying numbers or letters as shall be useful to
facilitate the registration, transfer and exchange of Taxable Bonds. Unless otherwise
determined in the order to authenticate the Taxable Bonds, each Taxable Bond
delivered upon the original issuance of the Taxable Bonds shall be dated as of
October 17, 2011. Each Taxable Bond thereafter issued upon any transfer, exchange
or replacement of Taxable Bonds shall be dated so that no gain or loss of interest shall
result from such transfer, exchange or replacement.
The Taxable Bonds shall mature on December 1, 2028. Each Taxable Bond
shall bear interest from its date at the rate of four percentum (4.00 %) per annum,
computed on the basis of a 360 day year consisting of twelve 30 day months and
payable in lawful money of the United States of America on June 1, 2012 and
semiannually thereafter on each June 1 and December 1.
The principal of and premium, if any, on the Taxable Bonds shall be payable in
lawful money of the United States of America upon presentation and surrender thereof
at the corporate trust office of U.S. Bank National Association, in the City of Chicago,
Illinois, which is hereby appointed as bond registrar and paying agent for the Taxable
Bonds. Interest on the Taxable Bonds shall be payable on each interest payment date
to the registered owners of record thereof appearing on the registration books
maintained by the Village for such purpose at the corporate trust office of the bond
registrar, as of the close of business on the 15th day of the calendar month next
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preceding the applicable interest payment date. Interest on the Taxable Bonds shall be
paid by check or draft mailed to such registered owners at their addresses appearing on
the registration books or by wire transfer pursuant to an agreement by and between the
Village and the registered owner.
The Taxable Bonds shall be subject to extraordinary mandatory redemption
within 90 days after the Expenditure Termination Date, as a whole, or in part by lot, at
the redemption price of par and in a principal amount equal to the sum of (i) the
unexpended Available Project Proceeds as of the Expenditure Termination Date and
(ii) such additional amount so that the aggregate principal amount of the Taxable Bonds
to be redeemed is $5,000 or an integral multiple of $5,000. The Village shall select the
date of redemption, which date shall be within 90 days after the Expenditure
Termination Date. If the Expenditure Termination Date is extended to a date later than
the third anniversary of the date of issuance of the Taxable Bonds, then the Village shall
file with the MSRB for disclosure on EMMA, a notice of the new Expenditure
Termination Date.
The Taxable Bonds shall be subject to extraordinary redemption at the option of
the Village and upon notice as herein provided, as a whole, or in part by lot, at the Make
Whole Redemption Price plus 100 basis points on any date on or after the occurrence
of an Extraordinary Event. The Make Whole Redemption Price shall be determined by
the Village as of the fifth business day next preceding the redemption date of the
Taxable Bonds.
The Taxable Bonds shall be subject to redemption prior to maturity at the option
of the Village and upon notice as herein provided, as a whole, or in part by lot, on
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December 1, 2021 and on any date thereafter, at a redemption price equal to the
principal amount thereof to be redeemed.
The bond registrar is hereby authorized and directed to mail notice of the
redemption of Taxable Bonds in the manner herein provided.
In the event of the redemption of less than all the Taxable Bonds, the aggregate
principal amount thereof to be redeemed shall be $5,000 or an integral multiple thereof.
The bond registrar shall assign to each Taxable Bond a distinctive number for each
$5,000 principal amount of such Taxable Bond and shall select by lot from the numbers
so assigned as many numbers as, at $5,000 for each number, shall equal the principal
amount of such Taxable Bonds to be redeemed. The Taxable Bonds to be redeemed
shall be the Taxable Bonds so selected; provided that only so much of the principal
amount of each Taxable Bond shall be redeemed as shall equal $5,000 for each
number so selected.
Notice of the redemption of Taxable Bonds shall be mailed not less than 30 days
nor more than 60 days prior to the date fixed for such redemption to the registered
owners of Taxable Bonds to be redeemed at their last addresses appearing on said
registration books. The Taxable Bonds or portions thereof specified in said notice shall
become due and payable at the applicable redemption price on the redemption date
therein designated, and if, on the redemption date, moneys for payment of the
redemption price of all the Taxable Bonds or portions thereof to be redeemed, together
with interest to the redemption date, shall be available for such payment on said date,
and if notice of redemption shall have been mailed as aforesaid (and notwithstanding
any defect therein or the lack of actual receipt thereof by any registered owner) then
from and after the redemption date interest on such Taxable Bonds or portions thereof
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shall cease to accrue and become payable. If there shall be drawn for redemption less
than all of a Taxable Bond, the Village shall execute and the bond registrar shall
authenticate and deliver, upon the surrender of such Taxable Bond, without charge to
the owner thereof, in exchange for the unredeemed balance of the Taxable Bond so
surrendered, Taxable Bonds of the denomination of $5,000 or any integral multiple
thereof.
The bond registrar shall not be required to transfer or exchange any Taxable
Bond after notice of the redemption of all or a portion thereof has been mailed. The
bond registrar shall not be required to transfer or exchange any Taxable Bond during a
period of 15 days next preceding the mailing of a notice of redemption that could
designate for redemption all or a portion of such Taxable Bond.
Section 6. Sale and Delivery. The Tax - Exempt Bonds are sold to Janney
Montgomery Scott, as purchaser, at a price of $9,761,842.80. The Taxable Bonds are
sold to Robert W. Baird & Co. Incorporated, as purchaser, at the price of
$12,303,125.00. The Official Statement prepared with respect to the 2011 Bonds is
approved and "deemed final" as of its date for purposes of Securities and Exchange
Commission Rule 15c2 -12 promulgated under the Securities Exchange Act of 1934.
The Village President, Village Clerk and other officials of the Village are
authorized and directed to do and perform, or cause to be done or performed for or on
behalf of the Village each and every thing necessary for the issuance of the 2011
Bonds, including the proper execution and delivery of the 2011 Bonds and the Official
Statement.
Section 7. Execution and Authentication. Each 2011 Bond shall be
executed in the name of the Village by the manual or authorized facsimile signature of
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its Village President and the corporate seal of the Village, or a facsimile thereof, shall be
thereunto affixed or otherwise reproduced thereon and attested by the manual or
authorized facsimile signature of its Village Clerk.
In case any officer whose signature, or a facsimile of whose signature, shall
appear on any 2011 Bond shall cease to hold such office before the issuance of the
2011 Bond, such 2011 Bond shall nevertheless be valid and sufficient for all purposes,
the same as if the person whose signature, or a facsimile thereof, appears on such
2011 Bond had not ceased to hold such office. Any 2011 Bond may be signed, sealed
or attested on behalf of the Village by any person who, on the date of such act, shall
hold the proper office, notwithstanding that at the date of such 2011 Bond such person
may not have held such office. No recourse shall be had for the payment of any 2011
Bonds against any officer who executes the 2011 Bonds.
Each 2011 Bond shall bear thereon a certificate of authentication executed
manually by the bond registrar. No 2011 Bond shall be entitled to any right or benefit
under this ordinance or shall be valid or obligatory for any purpose until such certificate
of authentication shall have been duly executed by the bond registrar.
Section 8. Transfer, Exchange and Registry. The 2011 Bonds shall be
negotiable, subject to the provisions for registration of transfer contained herein. Each
2011 Bond shall be transferable only upon the registration books maintained by the
Village for that purpose at the corporate trust office of the bond registrar, by the
registered owner thereof in person or by his attorney duly authorized in writing, upon
surrender thereof together with a written instrument of transfer satisfactory to the bond
registrar and duly executed by the registered owner or his duly authorized attorney.
Upon the surrender for transfer of any such 2011 Bond, the Village shall execute and
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the bond registrar shall authenticate and deliver a new 2011 Bond or 2011 Bonds
registered in the name of the transferee, of the same aggregate principal amount,
series, maturity and interest rate as the surrendered 2011 Bond. 2011 Bonds, upon
surrender thereof at the corporate trust office of the bond registrar, with a written
instrument satisfactory to the bond registrar, duly executed by the registered owner or
his attorney duly authorized in writing, may be exchanged for an equal aggregate
principal amount of 2011 Bonds of the same series, maturity and interest rate and of the
denominations of $5,000 or any integral multiple thereof.
For every such exchange or registration of transfer of 2011 Bonds, the Village or
the bond registrar may make a charge sufficient for the reimbursement of any tax, fee or
other governmental charge required to be paid with respect to such exchange or
transfer, which sum or sums shall be paid by the person requesting such exchange or
transfer as a condition precedent to the exercise of the privilege of making such
exchange or transfer. No other charge shall be made for the privilege of making such
transfer or exchange. The provisions of the Illinois Bond Replacement Act shall govern
the replacement of lost, destroyed or defaced 2011 Bonds.
The Village and the bond registrar may deem and treat the person in whose
name any 2011 Bond shall be registered upon the registration books as the absolute
owner of such 2011 Bond, whether such 2011 Bond shall be overdue or not, for the
purpose of receiving payment of, or on account of, the principal of, premium, if any, or
interest thereon and for all other purposes whatsoever, and all such payments so made
to any such registered owner or upon his order shall be valid and effectual to satisfy and
discharge the liability upon such 2011 Bond to the extent of the sum or sums so paid,
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and neither the Village nor the bond registrar shall be affected by any notice to the
contrary.
Section 9. General Obligations. The full faith and credit of the Village are
hereby irrevocably pledged to the punctual payment of the principal of and interest on
the 2011 Bonds. The 2011 Bonds shall be direct and general obligations of the Village,
and the Village shall be obligated to levy ad valorem taxes upon all the taxable property
in the Village for the payment of the 2011 Bonds and the interest thereon, without
limitation as to rate or amount.
Section 10. Form of Tax - Exempt Bonds. The Tax - Exempt Bonds shall be
issued as fully registered bonds and shall be in substantially the following form, the
blanks to be appropriately completed when the Tax - Exempt Bonds are printed:
5".1
United States of America
State of Illinois
Counties of Cook and Lake
VILLAGE OF DEERFIELD
GENERAL OBLIGATION BOND,
SERIES 2011A
INTEREST RATE MATURITY DATE DATED DATE CUSIP
% December 1, 20_ October 17, 2011
REGISTERED OWNER: Cede & Co.
PRINCIPAL AMOUNT:
The VILLAGE OF DEERFIELD, a municipal corporation and a home rule unit of
the State of Illinois situate in the Counties of Cook and Lake, acknowledges itself
indebted and for value received hereby promises to pay to the registered owner of this
bond, or registered assigns, the principal amount specified above on the maturity date
specified above, and to pay interest on such principal amount from the date hereof at
the interest rate per annum specified above, computed on the basis of a 360 day year
consisting of twelve 30 day months and payable in lawful money of the United States of
America on June 1, 2012 and semiannually thereafter on June 1 and December 1 in
each year until the principal amount shall have been paid, to the registered owner of
record hereof as of the 15th day of the calendar month next preceding such interest
payment date, by wire transfer pursuant to an agreement by and between the Village
and the registered owner, or otherwise by check or draft mailed to the registered owner
at the address of such owner appearing on the registration books maintained by the
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Village for such purpose at the corporate trust office of U.S. Bank National Association,
in the City of Chicago, Illinois, as bond registrar or its successor (the "Bond Registrar ").
This bond, as to principal when due, will be payable in lawful money of the United
States of America upon presentation and surrender of this bond at the corporate trust
office of the Bond Registrar. The full faith and credit of the Village are irrevocably
pledged for the punctual payment of the principal of and interest on this bond according
to its terms.
This bond is one of a series of bonds issued in the aggregate principal amount of
$9,900,000, which are authorized and issued under and pursuant to Section 6 of Article
VII of the Illinois Constitution of 1970 and under and in accordance with an ordinance
adopted by the President and Board of Trustees of the Village on September 26, 2011
and entitled: "Ordinance Authorizing the Issuance of General Obligation Bonds of 2011
of the Village of Deerfield, Illinois."
The bonds of such series maturing on or after December 1, 2022 are subject to
redemption prior to maturity at the option of the Village and upon notice as herein
provided, in such principal amounts and from such maturities as the Village shall
determine and by lot within a single maturity, on December 1, 2021 and on any date
thereafter, at a redemption price equal to the principal amount thereof to be redeemed.
Notice of the redemption of bonds will be mailed not less than 30 days nor more
than 60 days prior to the date fixed for such redemption to the registered owners of
bonds to be redeemed at their last addresses appearing on such registration books.
The bonds or portions thereof specified in said notice shall become due and payable at
the applicable redemption price on the redemption date therein designated, and if, on
the redemption date, moneys for payment of the redemption price of all the bonds or
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portions thereof to be redeemed, together with interest to the redemption date, shall be
available for such payment on said date, and if notice of redemption shall have been
mailed as aforesaid (and notwithstanding any defect therein or the lack of actual receipt
thereof by any registered owner) then from and after the redemption date interest on
such bonds or portions thereof shall cease to accrue and become payable.
This bond is transferable only upon such registration books by the registered
owner hereof in person, or by his attorney duly authorized in writing, upon surrender
hereof at the corporate trust office of the Bond Registrar together with a written
instrument of transfer satisfactory to the Bond Registrar duly executed by the registered
owner or by his duly authorized attorney, and thereupon a new registered bond or
bonds, in the authorized denominations of $5,000 or any integral multiple thereof and of
the same aggregate principal amount, maturity and interest rate as this bond shall be
issued to the transferee in exchange therefor. In like manner, this bond may be
exchanged for an equal aggregate principal amount of bonds of the same maturity and
interest rate and of any of such authorized denominations. The Village or the Bond
Registrar may make a charge sufficient for the reimbursement of any tax, fee or other
governmental charge required to be paid with respect to the transfer or exchange of this
bond. No other charge shall be made for the privilege of making such transfer or
exchange. The Village and the Bond Registrar may treat and consider the person in
whose name this bond is registered as the absolute owner hereof for the purpose of
receiving payment of, or on account of, the principal, premium, if any, and interest due
hereon and for all other purposes whatsoever.
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This bond shall not be valid or become obligatory for any purpose until the
certificate of authentication hereon shall have been duly executed by the Bond
Registrar.
It is hereby certified, recited and declared that all acts, conditions and things
required to be done, exist and be performed precedent to and in the issuance of this
bond in order to make it a legal, valid and binding obligation of the Village have been
done, exist and have been performed in regular and due time, form and manner as
required by law, and that the series of bonds of which this bond is one, together with all
other indebtedness of the Village, is within every debt or other limit prescribed by law.
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IN WITNESS WHEREOF, the Village of Deerfield has caused this bond to be
executed in its name and on its behalf by the manual or facsimile signature of its Village
President, and its corporate seal, or a facsimile thereof, to be hereunto affixed or
otherwise reproduced hereon and attested by the manual or facsimile signature of its
Village Clerk.
Dated: October 17, 2011
CERTIFICATE OF AUTHENTICATION
This bond is one of the General
Obligation Bonds, Series 2011A,
described in the within mentioned
Ordinance.
U.S. BANK NATIONAL ASSOCIATION,
as Bond Registrar
Authorized Signer
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VILLAGE OF DEERFIELD
Village President
Attest:
Village Clerk
ASSIGNMENT
For value received the undersigned sells, assigns and transfers unto
the within bond and hereby irrevocably constitutes and appoints
attorney to transfer the said bond on the books kept for registration thereof, with full
power of substitution in the premises.
Dated
Signature Guarantee:
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Section 11. Form of Taxable Bonds. The Taxable Bonds shall be issued as
fully registered bonds and shall be in substantially the following form, the blanks to be
appropriately completed when the Taxable Bonds are printed:
No.
United States of America
State of Illinois
Counties of Cook and Lake
VILLAGE OF DEERFIELD
GENERAL OBLIGATION BOND,
TAXABLE SERIES 2011 B
(QUALIFIED ENERGY CONSERVATION BONDS — DIRECT PAYMENT)
INTEREST RATE MATURITY DATE DATED DATE CUSIP
4.00% December 1, 2028 October 17, 2011
REGISTERED OWNER: Cede & Co.
PRINCIPAL AMOUNT:
The VILLAGE OF DEERFIELD, a municipal corporation and a home rule unit of
the State of Illinois situate in the Counties of Cook and Lake, acknowledges itself
indebted and for value received hereby promises to pay to the registered owner of this
bond, or registered assigns, the principal amount specified above on the maturity date
specified above, and to pay interest on such principal amount from the date hereof at
the interest rate per annum specified above, computed on the basis of a 360 day year
consisting of twelve 30 day months and payable in lawful money of the United States of
America on June 1, 2012 and semiannually thereafter on June 1 and December 1 in
each year until the principal amount shall have been paid, to the registered owner of
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record hereof as of the 15th day of the calendar month next preceding such interest
payment date, by wire transfer pursuant to an agreement by and between the Village
and the registered owner, or otherwise by check or draft mailed to the registered owner
at the address of such owner appearing on the registration books maintained by the
Village for such purpose at the corporate trust office of U.S. Bank National Association,
in the City of Chicago, Illinois, as bond registrar or its successor (the "Bond Registrar ").
This bond, as to principal when due, will be payable in lawful money of the United
States of America upon presentation and surrender of this bond at the corporate trust
office of the Bond Registrar. The full faith and credit of the Village are irrevocably
pledged for the punctual payment of the principal of and interest on this bond according
to its terms.
This bond is one of a series of bonds issued in the aggregate principal amount of
$12,500,000, which are authorized and issued under and pursuant to Section 6 of
Article VII of the Illinois Constitution of 1970 and under and in accordance with an
ordinance adopted by the President and Board of Trustees of the Village on
September 26, 2011 and entitled: "Ordinance Authorizing the Issuance of General
Obligation Bonds of 2011 of the Village of Deerfield, Illinois" (the "Bond Ordinance ").
The bonds of such series are subject to redemption prior to maturity at the option
of the Village and upon notice as herein provided, as a whole, or in part by lot, on
December 1, 2021 and on any date thereafter, at a redemption price equal to the
principal amount thereof to be redeemed.
The bonds of such series are subject to extraordinary mandatory redemption on
any date on or after October 17, 2014, as a whole, or in part by lot, at the redemption
price equal to the principal amount of the bonds to be redeemed from unexpended
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proceeds of the bonds of such series and in accordance with the provisions of the Bond
Ordinance.
The bonds of such series are subject to redemption prior to maturity at the option
of the Village, as a whole, or in part by lot, on any date on or after the date that a
change has occurred to Section 54A, Section 54D or Section 6431 of the Internal
Revenue Code of 1986, or to any guidance published by the Internal Revenue Service
or the United States Department of the Treasury with respect to such sections or any
other determination by the Internal Revenue Service or the United States Department of
the Treasury, pursuant to which the Village's cash subsidy payment from the United
States Department of the Treasury with respect to interest paid on the bonds of such
series is reduced or eliminated and which is not the result of any act or omission by the
Village to satisfy the requirements to qualify to receive the cash subsidy payment, at a
redemption price equal to the greater of (A) the principal amount of the bonds to be
redeemed, and (B) the sum of the present value of the remaining scheduled payments
of principal and interest to the maturity date of the bonds to be redeemed, not including
any portion of those payments of interest accrued and unpaid as of the date on which
the bonds are to be redeemed, discounted to the date of redemption of the bonds to be
redeemed on a semiannual basis (assuming a 360 -day year consisting of twelve 30 -day
months) at the Treasury Rate, plus 100 basis points; plus, in each case, accrued
interest on the bonds to be redeemed to the redemption date.
"Treasury Rate" means, as of any redemption date, the yield to maturity as of
such redemption date of United States Treasury securities with a constant maturity (as
compiled and published in the most recent Federal Reserve Statistical Release H.15
(519) that has become publicly available four business days prior to the redemption
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date (excluding inflation- indexed securities) (or, if such Statistical Release is no longer
published, any publicly available source of similar market data)) most nearly equal to
the period from the redemption date to the maturity date of the bonds to be redeemed;
provided, however, that if the period from the redemption date to such maturity date is
less than one year, the weekly average yield on actually traded United States Treasury
securities adjusted to a constant maturity of one year will be used.
Notice of the redemption of bonds will be mailed not less than 30 days nor more
than 60 days prior to the date fixed for such redemption to the registered owners of
bonds to be redeemed at their last addresses appearing on such registration books.
The bonds or portions thereof specified in said notice shall become due and payable at
the applicable redemption price on the redemption date therein designated, and if, on
the redemption date, moneys for payment of the redemption price of all the bonds or
portions thereof to be redeemed, together with interest to the redemption date, shall be
available for such payment on said date, and if notice of redemption shall have been
mailed as aforesaid (and notwithstanding any defect therein or the lack of actual receipt
thereof by any registered owner) then from and after the redemption date interest on
such bonds or portions thereof shall cease to accrue and become payable.
This bond is transferable only upon such registration books by the registered
owner hereof in person, or by his attorney duly authorized in writing, upon surrender
hereof at the corporate trust office of the Bond Registrar together with a written
instrument of transfer satisfactory to the Bond Registrar duly executed by the registered
owner or by his duly authorized attorney, and thereupon a new registered bond or
bonds, in the authorized denominations of $5,000 or any integral multiple thereof and of
the same aggregate principal amount, maturity and interest rate as this bond shall be
MI
issued to the transferee in exchange therefor. In like manner, this bond may be
exchanged for an equal aggregate principal amount of bonds of the same maturity and
interest rate and of any of such authorized denominations. The Village or the Bond
Registrar may make a charge sufficient for the reimbursement of any tax, fee or other
governmental charge required to be paid with respect to the transfer or exchange of this
bond. No other charge shall be made for the privilege of making such transfer or
exchange. The Village and the Bond Registrar may treat and consider the person in
whose name this bond is registered as the absolute owner hereof for the purpose of
receiving payment of, or on account of, the principal and interest due hereon and for all
other purposes whatsoever.
This bond shall not be valid or become obligatory for any purpose until the
certificate of authentication hereon shall have been duly executed by the Bond
Registrar.
It is hereby certified, recited and declared that all acts, conditions and things
required to be done, exist and be performed precedent to and in the issuance of this
bond in order to make it a legal, valid and binding obligation of the Village have been
done, exist and have been performed in regular and due time, form and manner as
required by law, and that the series of bonds of which this bond is one, together with all
other indebtedness of the Village, is within every debt or other limit prescribed by law.
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IN WITNESS WHEREOF, the Village of Deerfield has caused this bond to be
executed in its name and on its behalf by the manual or facsimile signature of its Village
President, and its corporate seal, or a facsimile thereof, to be hereunto affixed or
otherwise reproduced hereon and attested by the manual or facsimile signature of its
Village Clerk.
Dated: October 17, 2011
VILLAGE OF DEERFIELD
Village President
Attest:
CERTIFICATE OF AUTHENTICATION
This bond is one of the General Village Clerk
Obligation Bonds, Taxable Series
2011 B (Qualified Energy Conservation
Bonds — Direct Payment), described in
the within mentioned Ordinance.
U.S. BANK NATIONAL ASSOCIATION,
as Bond Registrar
Authorized Signer
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ASSIGNMENT
For value received the undersigned sells, assigns and transfers unto
the within bond and hereby irrevocably constitutes and appoints
attorney to transfer the said bond on the books kept for registration thereof, with full
power of substitution in the premises.
Dated
Signature Guarantee:
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Section 12. Levy and Extension of Taxes. (A) For the purpose of providing
the money required to pay the interest on the Tax - Exempt Bonds when and as the
same falls due and to pay and discharge the principal (including principal installments)
thereof as the same shall mature, there is hereby levied upon all the taxable property in
the Village, in each year while any of the bonds shall be outstanding, a direct annual tax
sufficient for that purpose in addition to all other taxes, as follows:
A Tax Sufficient to Produce
Tax Levy
Infrastructure
Library Bonds
Total Levy for
Year
Bonds Portion
Portion
Tax - Exempt Bonds
2011
$ 130,946.50
$763,572.00
$ 894,518.50
2012
116,685.00
362,230.00
478,915.00
2013
126,685.00
359,780.00
486,465.00
2014
136,585.00
362,330.00
498,915.00
2015
146,385.00
359,830.00
506,215.00
2016
156,010.00
361,705.00
517,715.00
2017
165,410.00
362,880.00
528,290.00
2018
174,535.00
363,330.00
537,865.00
2019
183,335.00
363,030.00
546,365.00
2020
196,935.00
367,630.00
564,565.00
2021
205,235.00
367,030.00
572,265.00
2022
213,097.50
370,617.50
583,715.00
2023
225,577.50
373,537.50
599,115.00
2024
237,577.50
375,912.50
613,490.00
2025
248,932.50
377,407.50
626,340.00
2026
259,807.50
378,470.00
638,277.50
2027
94,857.50
383,420.00
478,277.50
2028
1,004,707.50
387,920.00
1,392,627.50
2029
1,017,257.50
391,970.00
1,409,227.50
2030
1,022,175.00
1,022,175.00
(B) For the purpose of providing the money required to pay the interest on the
Taxable Bonds when and as the same falls due and to pay and discharge the principal
thereof as the same shall mature and to fund Annual Sinking Fund Payments, there is
hereby levied upon all the taxable property in the Village, in each year while any of the
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Taxable Bonds shall be outstanding, a direct annual tax sufficient for that purpose in
addition to all other taxes, as follows:
Tax Levy Year A Tax Sufficient to Produce
2011
$1,286,111.11
2012
1,225,000.00
2013
1,225,000.00
2014
1,225,000.00
2015
1,225,000.00
2016
1,225,000.00
2017
1,225,000.00
2018
1,225,000.00
2019
1,225,000.00
2020
1,225,000.00
2021
1,225,000.00
2022
1,225,000.00
2023
1,225,000.00
2024
1,225,000.00
2025
1,225,000.00
2026
1,225,000.00
2027
1,400,000.00
(C) Interest or principal coming due at any time when there shall be
insufficient funds on hand to pay the same shall be paid promptly when due from
current funds on hand in advance of the collection of the taxes herein levied; and when
said taxes shall have been collected, reimbursement shall be made to the said funds in
the amounts thus advanced.
(D) As soon as this ordinance becomes effective, a copy thereof certified by
the Village Clerk, which certificate shall recite that this ordinance has been duly
adopted, shall be filed with the County Clerk of Cook County, Illinois, and the County
Clerk of Lake County, Illinois who are each hereby directed to ascertain the rate per
cent required to produce the aggregate tax hereinbefore provided to be levied in the
years 2011 to 2030, inclusive, and to extend the same for collection on the tax books in
connection with other taxes levied in said years, in and by the Village for general
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corporate purposes of the Village, and in said years such annual tax shall be levied and
collected in like manner as taxes for general corporate purposes for said years are
levied and collected and, when collected, such taxes shall be used for the purpose of
paying the principal of and interest on the applicable series of the 2011 Bonds herein
authorized as the same become due and payable.
Section 13. 2011A Debt Service Fund. Moneys derived from taxes levied
pursuant to Paragraph (A) of Section 10 are appropriated and set aside for the purpose
of paying principal of and interest on the Tax - Exempt Bonds when and as the same
come due. All of such moneys, and all other moneys to be used for the payment of the
principal of and interest on the Tax - Exempt Bonds, shall be deposited in the "2011A
Debt Service Fund ", which is hereby established as a special fund of the Village and
shall be administered as a bona fide debt service fund under the Code. All accrued
interest received upon the issuance of the Tax - Exempt Bonds shall be deposited in the
2011A Debt Service Fund.
Section 14. Pledge Securing Tax - Exempt Bonds. The moneys deposited or
to be deposited into the 2011A Debt Service Fund, including the tax receipts derived
from the taxes levied pursuant to Paragraph (A) of Section 10 of this ordinance, are
pledged as security for the payment of the principal of and interest on the Tax - Exempt
Bonds. The pledge is made pursuant to Section 13 of the Local Government Debt
Reform Act and shall be valid and binding from the date of issuance of the Tax - Exempt
Bonds. All such tax receipts and the moneys held in the 2011A Debt Service Fund shall
immediately be subject to the lien of such pledge without any physical delivery or further
act and the lien of such pledge shall be valid and binding as against all parties having
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claims of any kind in tort, contract or otherwise against the Village irrespective of
whether such parties have notice thereof.
Section 15. Library Project Bond Proceeds Fund. The proceeds of sale of
the Library Bonds shall be deposited in the "Library Project Bond Proceeds Fund ",
which is hereby established as a special fund of the Village. Moneys in the Library
Project Bond Proceeds Fund shall be used for the payment of costs of the Library
Project and for the payment of costs of issuance of the Library Bonds, but may hereafter
be reappropriated and used for other purposes if such reappropriation is permitted
under Illinois law and will not adversely affect the exclusion from gross income for
federal income tax purposes of interest on the Tax - Exempt Bonds.
Section 16. Infrastructure Projects Bond Proceeds Fund. The proceeds of
sale of the Infrastructure Bonds shall be deposited in the "Infrastructure Projects Bond
Proceeds Fund ", which is hereby established as a special fund of the Village. Moneys
in the Infrastructure Projects Bond Proceeds Fund shall be used for the payment of
costs of the Infrastructure Projects and the payment of costs of issuance of the
Infrastructure Bonds, but may hereafter be reappropriated and used for other purposes
if such reappropriation is permitted under Illinois law and will not adversely affect the
exclusion from gross income for federal income tax purposes of interest on the Tax-
Exempt Bonds.
Section 17. 2011B Debt Service Fund. Moneys derived from taxes levied
pursuant to Paragraph (B) of Section 10 are appropriated and set aside for the purpose
of paying principal of and interest on the Taxable Bonds when and as the same come
due. All of such moneys, and all other moneys to be used for the payment of the
principal of and interest on the Taxable Bonds, exclusive of taxes levied to satisfy
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Annual Sinking Fund Payments, shall be deposited in the "2011 B Debt Service Fund ",
which is hereby established as a special fund of the Village and shall be administered
as a bona fide debt service fund under the Code. All accrued interest received upon the
issuance of the Taxable Bonds shall be deposited in the 2011 B Debt Service Fund.
Section 18. Sinking Fund. (A) The "2011 B Sinking Fund" is hereby
established as a special fund of the Village. All tax receipts derived from taxes levied
pursuant to Paragraph (B) of Section 10 to satisfy Annual Sinking Fund Payments shall
be deposited into the 2011 B Sinking Fund. On December 1 of the following years, the
Village shall deposit into the 2011 B Sinking Fund the following annual amounts, subject
to adjustment as provided in Paragraph (B) of this Section, constituting mandatory
Annual Sinking Fund Payments for the retirement at maturity of the Taxable Bonds:
Year Annual Sinking Fund Payment
2012
$725,000
2013
725,000
2014
725,000
2015
725,000
2016
725,000
2017
725,000
2018
725,000
2019
725,000
2020
725,000
2021
725,000
2022
725,000
2023
725,000
2024
725,000
2025
725,000
2026
725,000
2027
725,000
2028
900,000
(B) If Taxable Bonds are redeemed prior to maturity, then the Annual Sinking
Fund Payment for each year shall be reduced as directed by the Village in accordance
with Section 54(d)(4)(C) of the Code, or, in the absence of such direction, by the
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amount obtained by multiplying the Annual Sinking Fund Payment set forth for such
year in Paragraph (A) of this Section by a fraction the numerator of which is the principal
amount of Taxable Bonds redeemed pursuant to such redemption and the denominator
of which is the principal amount of Taxable Bonds outstanding as of the time
immediately prior to such redemption.
(C) The Village shall make the scheduled annual deposits to the 2011B
Sinking Fund in accordance with Paragraphs (A) and (B) of this Section whenever the
aggregate amount held in the 2011 B Sinking Fund is less than the principal amount of
outstanding Taxable Bonds. The Village shall suspend such deposits whenever the
sum of the cash and the maturity value of the investment securities held in the 2011 B
Sinking Fund equals or exceeds the principal amount of outstanding Taxable Bonds.
(D) The moneys in the 2011 B Sinking Fund shall be used for the payment of
the principal of the Taxable Bonds due on December 1, 2028 If on any date the sum
held in the 2011B Sinking Fund exceeds the principal amount of the outstanding
Taxable Bonds, then the amount of such excess, may be withdrawn from the 2011B
Sinking Fund. If on any interest payment date or redemption date of the Taxable
Bonds, the amount held in the 2011B Debt Service Fund is not sufficient to pay the
interest on the Taxable Bonds payable on such date, the Village shall withdraw from the
2011 B Sinking Fund and deposit into the 2011 B Debt Service Fund a sum sufficient to
cure such deficiency.
(E) No later than March 1St of each year, the amount of the Annual Sinking
Fund Excess for that year shall be withdrawn from the 2011B Sinking Fund and
deposited into the General Fund of the Village.
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(F) Any investment of moneys in the 2011 B Sinking Fund is subject to the
investment yield limitation of 4.11% in accordance with Section 54A(d)(4)(C) and
Section 54A(d)(5)(B) of the Code.
Section 19. Pledge Securing Taxable Bonds. The moneys deposited or to be
deposited into the 2011 B Debt Service Fund and the 2011 B Sinking Fund, including the
tax receipts derived from the taxes levied pursuant to Paragraph (B) of Section 10 of
this ordinance, are pledged as security for the payment of the principal of and interest
on the Taxable Bonds. The pledge is made pursuant to Section 13 of the Local
Government Debt Reform Act and shall be valid and binding from the date of issuance
of the Taxable Bonds. All such tax receipts and the moneys held in the 2011 B Debt
Service Fund and the 2011 B Sinking Fund shall immediately be subject to the lien of
such pledge without any physical delivery or further act and the lien of such pledge shall
be valid and binding as against all parties having claims of any kind in tort, contract or
otherwise against the Village irrespective of whether such parties have notice thereof.
Section 20. 2011B Bond Proceeds Fund. All of the proceeds of sale of the
Taxable Bonds (exclusive of accrued interest) shall be deposited in the "2011 B Bond
Proceeds Fund ", which is hereby established as a special fund of the Village. Moneys
in the 2011 B Bond Proceeds Fund shall be used for the payment of Qualified Project
Costs of the WRF Project and for the payment of costs of issuance of the 2011 B Bonds.
On the Expenditure Termination Date, any amount then held in the 2011B Bond
Proceeds Fund shall be withdrawn and deposited into the 2011B Redemption Fund
established by Section 21 of this ordinance.
Section 21. Redemption Fund. The "2011B Redemption Fund is hereby
established as a special fund of the Village. Moneys in the 2011 B Redemption Fund
shall be applied by the Village for the redemption of Taxable Bonds in accordance with
the provisions of Section 54A(d)(2)(B) of the Code. Within ten days following the
Expenditure Termination Date, the Village shall establish the redemption date (which
redemption date shall be within 90 days after the Expenditure Termination Date) for the
Taxable Bonds to be redeemed in satisfaction of the requirements of Section
54A(d)(2)(B) of the Code.
Section 22. Investment Regulations. No investment shall be made of any
moneys in any Fund established by this ordinance except in accordance with the tax
covenants set forth in Section 23 of this ordinance. All income derived from such
investments in respect of moneys or securities in any Fund shall be credited in each
case to the Fund in which such moneys or securities are held.
Any moneys in any Fund that are subject to investment yield restrictions may be
invested in United States Treasury Securities, State and Local Government Series,
pursuant to the regulations of the United States Treasury Department, Bureau of Public
Debt, or in any tax - exempt bond that is not an "investment property" within the meaning
of Section 148(b)(2) of the Code. The Director of Finance and agents designated by
him are hereby authorized to submit, on behalf of the Village, subscriptions for such
United States Treasury Securities and to request redemption of such United States
Treasury Securities.
Section 23. Tax Covenants. The Village shall not take, or omit to take, any
action lawful and within its power to take, which action or omission would cause interest
on any Tax - Exempt Bond to become subject to federal income taxes in addition to
federal income taxes to which interest on such Tax - Exempt Bond is subject on the date
of original issuance thereof.
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The Village shall not permit any of the proceeds of the 2011 Bonds, or any
facilities financed with such proceeds, to be used in any manner that would cause any
2011 Bond to constitute a "private activity bond" within the meaning of Section 141 of
the Internal Revenue Code of 1986.
The Village shall not permit any of the proceeds of the 2011 Bonds or other
moneys to be invested in any manner that would cause any 2011 Bond to constitute an
"arbitrage bond" within the meaning of Section 148 of the Code or a "hedge bond" within
the meaning of Section 149(g) of the Code.
The Village shall comply with the provisions of Section 148(f) of the Code relating
to the rebate of certain investment earnings at periodic intervals to the United States of
America.
Section 24. Bank Qualified Designation. The Village hereby designates the
Tax - Exempt Bonds as "qualified tax - exempt obligations" as defined in
Section 265(b)(3)(B) of the Code. The Village represents that the reasonably
anticipated amount of tax - exempt obligations that are required to be taken into account
for the purpose of Section 265(b)(3)(C) of the Code and will be issued by or on behalf of
the Village and all subordinate entities of the Village during 2011 does not exceed
$10,000,000. The Village covenants that it will not designate and issue more than
$10,000,000 aggregate principal amount of tax - exempt obligations in the year in which
the Tax - Exempt Bonds are issued. For purposes of the two preceding sentences, the
term "tax- exempt obligations" includes "qualified 501(c)(3) bonds" (as defined in Section
145 of the Code) but does not include other "private activity bonds" (as defined in
Section 141 of the Code).
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Section 25. Qualified Energy Conservation Bond Elections. The Illinois
Finance Authority has allocated to the Village the authority to issue up to $13,000,000
face amount of Qualified Energy Conservation Bonds. Pursuant to Section 54D(a)(3) of
the Code, the Village designates the Taxable Bonds as "qualified energy conservation
bonds" under Section 54D of the Code. The Village irrevocably elects to have Section
6431(f) of the Code apply to the Taxable Bonds and for each Taxable Bond to be a
"specified tax credit bond" under Section 6431(f)(3) of the Code. Any bond subsidy
payment received by the Village as a result of the foregoing elections is not pledged as
security for the payment of the principal of and interest on the Taxable Bonds.
Section 26. Continuing Disclosure. For the benefit of the beneficial owners of
the 2011 Bonds, the Village covenants and agrees to provide to the MSRB for
disclosure on EMMA, in an electronic format as prescribed by the MSRB, (i) an annual
report containing certain financial information and operating data relating to the Village
and (ii) timely notices of the occurrence of certain enumerated events. All documents
provided to the MSRB shall be accompanied by identifying information as prescribed by
the MSRB.
The annual report shall be provided to the MSRB for disclosure on EMMA within
180 days after the close of the Village's fiscal year. The information to be contained in
the annual report shall consist of the annual audited financial statement of the Village
and such additional information as noted in the Official Statement under the caption
"Continuing Disclosure." Each annual audited financial statement will conform to
generally accepted accounting principles applicable to governmental units and will be
prepared in accordance with standards of the Governmental Accounting Standards
Board. If the audited financial statement is not available, then an unaudited financial
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statement shall be included in the annual report and the audited financial statement
shall be provided promptly after it becomes available.
The Village, in a timely manner not in excess of ten business days after the
occurrence of the event, shall provide notice to the MSRB for disclosure on EMMA of
any failure of the Village to provide any such annual report within the 180 day period
and of the occurrence of any of the following events with respect to the 2011 Bonds:
(1) principal and interest payment delinquencies; (2) non - payment related defaults, if
material; (3) unscheduled draws on debt service reserves reflecting financial difficulties;
(4) unscheduled draws on credit enhancements reflecting financial difficulties;
(5) substitution of credit or liquidity providers, or their failure to perform; (6) adverse tax
opinions, the issuance by the Internal Revenue Service of proposed or final
determinations of taxability, Notices of Proposed Issue (IRS Form 5701 -TEB) or other
material notices or determinations with respect to the tax - exempt status of the 2011
Bonds, or other events affecting the tax - exempt status of the 2011 Bonds;
(7) modifications to rights of bondholders, if material; (8) bond calls, if material;
(9) defeasances; (10) release, substitution or sale of property securing repayment of the
2011 Bonds, if material; (11) rating changes; (12) tender offers; (13) bankruptcy,
insolvency, receivership or similar event of the Village; (14) the consummation of a
merger, consolidation, or acquisition involving the Village or the sale of all or
substantially all of the assets of the Village, other than in the ordinary course of
business, the entry into a definitive agreement to undertake such an action or the
termination of a definitive agreement relating to any such actions, other than pursuant to
its terms, if material; and (15) appointment of a successor or additional trustee or the
change of name of a trustee, if material. For the purposes of the event identified in
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clause (13), the event is considered to occur when any of the following occur: the
appointment of a receiver, fiscal agent or similar officer for the Village in a proceeding
under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in
which a court or governmental authority has assumed jurisdiction over substantially all
of the assets or business of the Village, or if such jurisdiction has been assumed by
leaving the existing governing body and officials or officers in possession but subject to
the supervision and orders of a court or governmental authority, or the entry of an order
confirming a plan or reorganization, arrangement or liquidation by a court or
governmental authority having supervision or jurisdiction over substantially all of the
assets or business of the Village.
It is found and determined that the Village has agreed to the undertakings
contained in this Section in order to assist participating underwriters of the 2011 Bonds
and brokers, dealers and municipal securities dealers in complying with Securities and
Exchange Commission Rule 15c2- 12(b)(5) promulgated under the Securities Exchange
Act of 1934. The chief financial officer of the Village is authorized and directed to do
and perform, or cause to be done or performed, for or on behalf of the Village, each and
every thing necessary to accomplish the undertakings of the Village contained in this
Section for so long as Rule 15c2- 12(b)(5) is applicable to the 2011 Bonds and the
Village remains an "obligated person" under the Rule with respect to the 2011 Bonds.
The undertakings contained in this Section may be amended by the Village upon
a change in circumstances that arises from a change in legal requirements, change in
law, or change in the identity, nature or status of the obligated person, or type of
business conducted, provided that (a) the undertaking, as amended, would have
complied with the requirements of Rule 15c2- 12(b)(5) at the time of the primary offering,
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after taking into account any amendments or interpretations of the Rule, as well as any
change in circumstances and (b) in the opinion of nationally recognized bond counsel
selected by the Village, the amendment does not materially impair the interests of the
beneficial owners of the 2011 Bonds.
Section 27. Bond Registrar. The Village covenants that it shall at all times
retain a bond registrar with respect to the 2011 Bonds, that it will maintain at the
designated office of such bond registrar a place where 2011 Bonds may be presented
for payment and registration of transfer or exchange and that it shall require that the
bond registrar maintain proper registration books and perform the other duties and
obligations imposed upon the bond registrar by this ordinance in a manner consistent
with the standards, customs and practices of the municipal securities business.
The bond registrar shall signify its acceptance of the duties and obligations
imposed upon it by this ordinance by executing the certificate of authentication on any
2011 Bond, and by such execution the bond registrar shall be deemed to have certified
to the Village that it has all requisite power to accept, and has accepted such duties and
obligations not only with respect to the 2011 Bond so authenticated but with respect to
all the 2011 Bonds. The bond registrar is the agent of the Village and shall not be liable
in connection with the performance of its duties except for its own negligence or default.
The bond registrar shall, however, be responsible for any representation in its certificate
of authentication on the 2011 Bonds.
The Village may remove the bond registrar at any time. In case at any time the
bond registrar shall resign or shall be removed or shall become incapable of acting, or
shall be adjudged a bankrupt or insolvent, or if a receiver, liquidator or conservator of
the bond registrar, or of its property, shall be appointed, or if any public officer shall take
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charge or control of the bond registrar or of its property or affairs, the Village covenants
and agrees that it will thereupon appoint a successor bond registrar. The Village shall
mail notice of any such appointment made by it to each registered owner of 2011 Bonds
within twenty days after such appointment.
Section 28. Book -Entry System. In order to provide for the initial issuance of
the 2011 Bonds in a form that provides for a system of book -entry only transfers, the
ownership of one fully registered 2011 Bond for each maturity of each series, in the
aggregate principal amount of such maturity, shall be registered in the name of Cede &
Co., as a nominee of DTC, as securities depository for the 2011 Bonds. The Director of
Finance is authorized to execute and deliver on behalf of the Village such letters to, or
agreements with, the securities depository as shall be necessary to effectuate such
book -entry system.
In case at any time the securities depository shall resign or shall become
incapable of acting, then the Village shall appoint a successor securities depository to
provide a system of book -entry only transfers for the 2011 Bonds, by written notice to
the predecessor securities depository directing it to notify its participants (those persons
for whom the securities depository holds securities) of the appointment of a successor
securities depository.
If the system of book -entry only transfers for the 2011 Bonds is discontinued,
then the Village shall issue and the bond registrar shall authenticate, register and
deliver to the beneficial owners of the 2011 Bonds, bond certificates in replacement of
such beneficial owners' beneficial interests in the 2011 Bonds, all as shown in the
records maintained by the securities depository.
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Section 29. Defeasance and Payment of Bonds. (A) If the Village shall pay
or cause to be paid to the registered owners of the 2011 Bonds, the principal, premium,
if any, and interest due or to become due thereon, at the times and in the manner
stipulated therein and in this ordinance, then the pledge of taxes, securities and funds
hereby pledged and the covenants, agreements and other obligations of the Village to
the registered owners and the beneficial owners of the 2011 Bonds shall be discharged
and satisfied.
(B) Any 2011 Bonds or interest installments appertaining thereto, whether at
or prior to the maturity or the redemption date of such 2011 Bonds, shall be deemed to
have been paid within the meaning of Paragraph (A) of this Section if (1) in case any
such 2011 Bonds are to be redeemed prior to the maturity thereof, there shall have
been taken all action necessary to call such 2011 Bonds for redemption and notice of
such redemption shall have been duly given or provision shall have been made for the
giving of such notice, and (2) there shall have been deposited in trust with a bank, trust
company or national banking association acting as fiduciary for such purpose either
(i) moneys in an amount which shall be sufficient, or (ii) "Federal Obligations" as defined
in Paragraph (C) of this Section, the principal of and the interest on which when due will
provide moneys which, together with any moneys on deposit with such fiduciary at the
same time for such purpose, shall be sufficient, to pay when due the principal of,
redemption premium, if any, and interest due and to become due on said 2011 Bonds
on and prior to the applicable redemption date or maturity date thereof.
(C) As used in this Section, the term "Federal Obligations" means (i) non-
callable, direct obligations of the United States of America, (ii) non - callable and non-
prepayable, direct obligations of any agency of the United States of America, which are
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unconditionally guaranteed by the United States of America as to full and timely
payment of principal and interest, (iii) non - callable, non - prepayable coupons or interest
installments from the securities described in clause (i) or clause (ii) of this paragraph,
which are stripped pursuant to programs of the Department of the Treasury of the
United States of America, or (iv) coupons or interest installments stripped from bonds of
the Resolution Funding Corporation.
Section 30. Ordinance to Constitute a Contract. The provisions of this
ordinance shall constitute a contract between the Village and the registered owners of
the 2011 Bonds. Any pledge made in this ordinance and the provisions, covenants and
agreements herein set forth to be performed by or on behalf of the Village shall be for
the equal benefit, protection and security of the owners of any and all of the 2011 Bonds
of like series. All of the 2011 Bonds of like series, regardless of the time or times of
their issuance, shall be of equal rank without preference, priority or distinction of any of
said 2011 Bonds over any other thereof except as expressly provided in or pursuant to
this ordinance. This ordinance shall constitute full authority for the issuance of the 2011
Bonds and to the extent that the provisions of this ordinance conflict with the provisions
of any other ordinance or resolution of the Village, the provisions of this ordinance shall
control. If any section, paragraph or provision of this ordinance shall be held to be
invalid or unenforceable for any reason, the invalidity or unenforceability of such
section, paragraph or provision shall not affect any of the remaining provisions of this
ordinance.
In this ordinance, reference to an officer of the Village includes any person
holding that office on an interim basis and any person delegated the authority to act on
behalf of such officer.
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Section 31. Publication. The Village Clerk is hereby authorized and directed
to publish this ordinance in pamphlet form and to file copies thereof for public inspection
in his office.
Section 32. Effective Date. This ordinance shall become effective upon its
passage, approval and publication in pamphlet form.
Passed and adopted this 26th day of September, 2011, by roll call vote as
follows:
Ayes: Benton, Farkas, Jester, Oppenheim, Seiden, Struthers (6)
List Names
Nays: None (0)
Approved: September 26, 2011
Village President
Published in pamphlet form: September 27, 2011
(SEAL)
Attest:
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Village Clerk
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CERTIFICATE
I, Kent S. Street, Village Clerk of the Village of Deerfield, Illinois, hereby certify
that the foregoing ordinance entitled: "Ordinance Authorizing the Issuance of General
Obligation Bonds of 2011 of the Village of Deerfield, Illinois," is a true copy of an original
ordinance that was duly passed and adopted by the recorded affirmative votes of a
majority of the members of the President and Board of Trustees of the Village at a
meeting thereof that was duly called and held at 7:30 p.m. on September 26, 2011, at
the Village Hall, 850 Waukegan Road, and at which a quorum was present and acting
throughout, and that said copy has been compared by me with the original ordinance
signed by the Village President on September 26, 2011, and thereafter published in
pamphlet form on September 27, 2011 and recorded in the Ordinance Book of the
Village and that it is a correct transcript thereof and of the whole of said ordinance, and
that said ordinance has not been altered, amended, repealed or revoked, but is in full
force and effect.
I further certify that the agenda for said meeting included the ordinance as a
matter to be considered at the meeting and that said agenda was posted at least
48 hours in advance of the holding of the meeting in the manner required by the Open
Meetings Act, 5 Illinois Compiled Statutes 120.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of
the Village, this 26 day of September , 2011.
Village Cle k
(SEAL)
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