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HomeMy WebLinkAboutORD 1981-678 1980-1984Bill No. 7i9 COUNTY OF HAWAII - STATE OF HAWAII ORDINANCE NO . ~j y~~r AN ORDINANCE AUTHORIZING THE ISSUANCE AND DISPOSITION OF $750, 000 PUBLIC IMPROVEMENT BONDS OF THE COUNTY OF HAWAII TO SECURE THE PAYMENT OF A LOAN BY THE UNITED STATES OF AMERICA, UNITED STATES DEPARTMENT OF AGRICULTURE, FARMERS HOME ADMINISTRATION, AND TO DETERMINE AND FIX THE FORM AND DETAILS OF SUCH BONDS. BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII: SECTION 1. Findings and Determinations. The Council of the County of Hawaii hereby finds and determines that: A. It is necessary, advisable and desirable that the County of Hawaii undertake certain public improvements for the waterworks of the County of Hawaii, consisting of the construction of water storage and transmission facilities and acquisition of land or interests therein; B. The United States of America acting by and through the l'Tnited States Department of Agriculture, Farmers Home Administration, has offered to make a loan at one time or from time to time, aggregating a principal amount not to exceed $750,000 to the County of Hawaii under the Federal Consolidated Farm and Rural Development Act to pay part of the cost of.these waterworks projects, such loan to bear interest at the rate of 5/ per annum; C. It is advisable and desirable for the County of Hawaii to obtain the loan from the United States of America referred to in the subparagraph immediately preceding; and D. It is necessary, advisable and desirable that to secure the payment of the loan referred to in subparagraph B above the County of Hawaii authorize, issue and dispose of to the United States of America acting by and through the United S tates Department of Agriculture, Farmers Home Administration, general obligation bonds of the County of Hawaii in a principal amount equal to the principal of the loan obtained by the County of Hawaii from the United States of America, United States Department of Agriculture, Farmers Home Administration. SECTION 2. Authorization and Details of Bonds. Pursuant to the authority of Part I of Chapter ~7, Hawaii Revised Statutes, and the Charter of the County of Hawaii, there are hereby authorized to be issued under said part for the public improvements described in subparagraph A of Section 1 hereof, at one time or from time to time, general obligation bonds of the County of Hawaii in the principal amount which equals the aggregate principal amount of the loan described in subparagraph B of Section 1 hereof actually made to the County of Hawaii by the United States of America, United States Department of Agriculture, Farmers Home Administra- tion; provided that the maximum principal amount of bonds which may be issued hereunder shall not exceed $750,000. Upon the receipt by the County of Hawaii of moneys to be lent to the County of Hawaii by the United States of America, United States Department of Agriculture, Farmers Home Administration, referred to in subparagraph B of Section 1 hereof, general obligation bonds authorized hereby (hereinafter referred to as the "Bonds) ipso facto shall be issued, and be deemed to be issued, in the principal amount equal to the amount of moneys so received. The Bonds shall be designated "Public improvements Bonds, 1981 Series A". The Bonds shall mature on June 1 in each of the years set forth in the following table, with the principal amount of the Bonds maturing on each such June 1 to be that amount determined by multiplying the amount set forth in such table opposite the year in which the respective June 1 occurs by the percentage obtained by dividing by $750,000 the aggregate of the moneys actually lent to the County of Hawaii by the United States of ~- 2 - of America., United States Department of Agriculture, Farmers Home Administration: Year Year Year (June 1) Amount (June 1) Amount (June 1) Amount 1983 $ 9,000 1994 $16,000 2005 $28,000 1984 10,000 1995 17,000 2006 29,000 1985 10,000 1996 18,000 2007 30,000 1986 11,000 1997 18,000 2008 32,000 1987 11,000 1998 19,000 2009 33,000 1983 12,000 1999 21,000 2010 35,000 1989 13,000 2000 22,000 2011 37,000 1990 13,000 2001 23,000 2012 38,000 1991 14,000 2002 24,000 2013 40,000 1992 15,000 2003 25,000 2014 42,000 1993 15,000 2004 26,000 2015 44,000 The Bonds shall bear interest from the date the same are deemed to have been issued as determined in accordance with the preceding provisions of this section to the payment of the principal amount thereof, at the rate of five per centum (5%) per annum, such interest being payable December 1, 1981, a.nd each June 1 and December 1, thereafter. Principal of a.nd interest on the Bonds shall be payable at the office of the Director of Finance in any coin or currency of the United States of America. which at the time of payment is legal tender for all debts public a.nd private. Bonds maturing on and after June 1, 1991 shall be subject to redemption at the option of the County of Hawaii prior to maturity on or after June 1, 1990, in whole at any time, or in part from time to time on any interest payment date in the inverse order of maturity and by lot within a maturity, upon payment of the principal amount thereof and interest accrued thereon to the date fixed for redemption. Bonds of whatever maturity owned or insured by the United States of America., United States Department of Agriculture, Farmers Home Administration, if not then subject to prior redemption pursuant to the provisions of the preceding sentence, shall be subject to redemption at the option of the County of Hawaii prior to maturity in whole at any time, or in -3- part from time to time on any interest payment date in the inverse order of maturity and by lot within a maturity, upon payment of the principal amount thereof and interest accrued thereon to the date fixed for redemption. Notice of prior redemption shall be given, and such redemption shall have the effect, as is set forth in the Bond redeemed. SECTION 3. Disposition of Bonds. Pursuant to the authori- zation of the last sentence of Section 47-7, Hawaii Revised Statutes, the Bonds shall be disposed of to the United States of America,, United States Department of Agriculture, Farmers Home Administration, to secure the payment of the loan referred to in subparagraph B of Section 1 hereof made 'by said Farmers Home Administration to the County of Hawaii under the Federal Consoli- dated Farm and Rural Development Act. The Director of Finance is hereby authorized to hire bond counsel and to accept any offer to purchase the Bonds made by the United States of America, United States Department of Agriculture, Farmers Home Administra- tion. The Director of Finance and the other officials of the County of Hawaii are hereby authorized and directed to take whatever steps may be necessary or required (a) to carry out the terms and conditions of the aforesaid loan to the County of Hawaii a.nd effect the receipt of the proceeds thereof, and (b) to effectu- ate the issuance and delivery of the Bonds to evidence such loan and the receipt of such moneys. SECTION 4. Form and Execution of Single Fully Registered Bond. The Bonds issued to the United States of America., United States Department of Agriculture, Farmers Home Administration, pursuant to this ordinance shall be in the form of a single instrument of indebtedness evidencing all such Bonds. Such a single instrument shall be without coupons and shall be fully registered as to both principal and interest to the United States of America, United States Department of Agriculture, Farmers Home -4- Administration, or its registered assigns. Such single instrument shall 'be dated with the date of the first receipt~by the County of Hawaii from the United States of America, United States Department of Agriculture, Farmers Home Administration, of moneys lent to the County of Hawaii as more fully set forth in sub- paragraph B of Section 1 hereof. Such single instrument shall be executed as provided therein and shall be in substantially the following form: UNITED STATES OF AMERICA STATE OF HAWAII COUNTY OF HAWAII PUBLIC IMPROVEMENT BO ND, 1981 SERIES A No . R-1 No. R-1 The COUNTY OF HAWAII, State of Hawaii, for value received hereby promises to pay to the United States of America,, United States Department of Agriculture, Farmers Home Administration, or its registered assigns (a) on June 1, in each of the years set forth in the following table that principal sum equal to the amount determined by multiplying the amount set forth in such table opposite the year in which the respective June 1 occurs by the percentage obtained by dividing by $750,000 the aggregate as shown on Schedule A hereto of the moneys received by the County of Hawaii as a loan from the United States of America, United States Department of Agriculture, Farmers Home Administration, to secure the payment of which loan this instrument of indebtedness has been disposed of to the United States of America, United States. Department of Agriculture, Farmers Home Administration: -5- Year Year Year (June 1) Amount (June 1) Amount (June 1) Amount 1983 $ 9,000 1994 $16,000 2005 $28,000 1934 10,000 1995 17,000 2006 29,000 1985 10,000 1996 18,000 2007 30,000 1986 11,000 1997 18,000 2008 32,000 1987 11,000 1998 19,000 2009 33,000 1988 12,000 1999 21,000 2010 35,000 1989 13,000 2000 22,000 2011 37,000 1990 13,000 2001 23,000 2012 38,000 1991 14,000 2002 24,000 2013 40,000 1992 15,000 2003 25,000 2014 42,000 1993 15,000 2004 26,000 2015 44,000 and (b) on December 1, 1981 and each June 1 and December 1 thereafter until the payment in full of the aggregate principal sum hereof, interest at the rate of five per centum (5%) per annum, on the principal sum hereof determined in accordance with the preceding clause (a) from time to time unpaid, computed, as to amounts of moneys received on separate days by the County of Hawaii on account of the loan referred to in said clause, from the respective date or dates or receipt by the County of Hawaii of such moneys as set forth on Schedule A hereto. Both principal hereof and interest hereon shall be payable at the office of the Director of Finance of the County of Hawaii in Hilo, Hawaii, 'by check or draft payable in any coin or currency of the United States of America which at the time of payment is legal tender for all debts, public and private, mailed to the registered owner hereof at its address as shown on the books or registry maintained by the Director of Finance of the County of Hawaii for that purpose, and without presentation or surrender hereof except for the final payment of the principal hereof and interest hereon which shall be made only upon the surrender hereof to the County of Hawaii for cancellation. The principal installments of this instrument maturing on or after June 1, 1991 shall be subject to prepayment at the option of the County of Hawaii prior to maturity on or after June 1, 1990, in whole at any time, or in part from time to time on any interest payment date in the inverse order of 6- maturity of such installments and by lot within a maturity, upon payment of the principal amount thereof to be prepaid and the interest accrued on such principal amount to the date fixed for prepayment. If this instrument shall then be owned or insured by the United States of America, United States Department of Agriculture, Farmers Home Administration, the principal instal l meets of this instrument of whatever maturity, if not then subject to prior prepayment pursuant to the provisions of the preceding sentence, shall be subject to prepayment at the option of the County of Hawaii prior to maturity in whole at any time, or in part from time to time on a.ny interest payment date in the inverse order of maturity of such installments and by lot within a maturity, upon payment of the principal amount thereof to be prepaid and the interest accrued on such principal amount to the date fixed for prepayment. Notice of prepayment of principal hereof shall be mailed not less than thirty (30) days prior to the prepayment date, ~by registered or certified mail, to the registered owner hereof at its address a.s the same appears on the books of registry maintained herefor by the Director of Finance of the County of Hawaii, ar at such address as such registered owner shall have filed with the Director of Finance for that purpose. Such notice sha~.l state.the designation and date hereof and the maturities of installments of principal and the principal amounts thereof to be prepaid; that the interest on the principal amount hereof to be prepaid shall cease to accrue from and after such prepayment date; and that on said date there will become due and payable hereon the principal amount hereof to be prepaid, together with the interest accrued thereon to the prepayment date. If the principal installments hereof have been duly called for prepayment and notice of the prepayment of the principal hereof to be prepaid has been duly given as aforesaid and moneys for the payment of the principal amount hereof to be prepaid upon such prepayment and of the interest to accrue on 7~ such principal amount to the prepayment date are held for the purpose of such payment by the Director of Finance of the County of Hawaii, then on the prepayment date designated in such notice the principal amount hereof to be prepaid shall become due a,nd payable and interest on the principal amount hereof to be prepaid shall cease to accrue. This instrument is transferable upon the books of registry maintained herefor 'by the registered owner hereof in person or by his attorney duly authorized in writing at the office of the Director of Finance of the County of Hawaii upon the presentation and surrender hereof to the Director of Finance for the purpose of the registration hereof upon the books of registry in the name of the transferee, accompanied by delivery of a written instrument of transfer duly executed by the registered owner in person or by his attorney duly authorized in writing and inform satisfactory to the Director of Finance. Any transferee of this instrument takes it subject to any payments, whether of interest or principal (including prepayments of principal) theretofore made on account of this instrument and whether or not the same shall be set forth in a.ny way on this instrument and whether or not such transferee has knowledge of such payments. Upon ninety (90) days notice in writing by the registered owner hereof to the Director of Finance of the County of Hawaii and the surrender hereof to the Director of Finance for cancella- tion this instrument may be exchanged at the expense of the County of Hawaii for general obligation bonds of the County of Hawaii in bearer form, of the same designation, in an aggregate principal sum equal to the principal sum hereof then unpaid, maturing as to principal on the days and in the amounts as mature the then unpaid principal installments hereof and bearing interest at the rate and payable at the times and under the terms as is payable _g_ the interest accrued or to accrue hereon then unpaid, with such coupons to evidence such interest to be attached to such bonds so that no gain or loss of interest shall result from such exchange. This instrument is issued under and pursuant to and in full compliance with the Constitution and statutes of the State of Hawaii, including Part I of Chapter 47, Hawaii Revised Statutes, the Charter of the County of Hawaii, and the proceedings of the Council of said County of Hawaii duly taken thereunder, for the purpose of securing the payment of a loan from the United States of America, United States Department of Agriculture, Farmers Home Administration, which loan will provide funds for public improvements to the water storage and transmission facilities of the County of Hawaii. This instrument is a general obligation of the County of Hawaii and the payment of the principal and interest hereof is a first charge on the general fund of said County. The full faith and credit of the County of Hawaii are irrevocably pledged to the punctual payment of the principal hereof and interest hereon according to the terms hereof. It is hereby certified, recited and declared that all condi- tions acts and things essential to the validity hereof exist, have happened and have been done, that every requirement of law affecting the issuance hereof has been duly complied with, and that the amount hereof, together with a,ll other indebtedness of the County of Hawaii, is not in excess of any statutory or constitutional limitation of indebtedness. IN WITNESS WHEREOF, the COUNTY OF HAWAII, State of Hawaii, has caused this instrument to be signed by its Director of -9- Finance, to bear the lithographed facsimile signature of its Mayor, to be sealed with its seal or bear a lithographed facsimile thereof, and to be dated as of Mayor Director of Finance .,~ 1981. ~. -10- SCHEDULE A The County of Hawaii hereby acknowledges receipt as follows of moneys as the loan made by the United States of America, United States Department of Agriculture, Farmers Home Administra- tion, to the County of Hawaii, to secure the payment of which the within instrument has been disposed of to the United States of America, United States Department of Agriculture, Farmers Home Administration: Signature of Amount of Aggregate Director of Finance Date of Moneys Amount of of the County Receipt Received Receipts of Hawaii (Form of Assignment) For value received sells, assigns and transfers unto the within mentioned instrument and hereby irrevocably constitutes and appoints hereby attorney to transfer the same on the books of registry in the office of the Director of Finance of the County of Hawaii with full power of substitution in the premises. Dated Witness By: Note: The signature to this assignment must correspond with the name as written on the face of the within instrument in every particular, without alteration, enlargement or any change whatsoever. SECTION 5. Books of RecListry; Exchange of Single Instrument for Coupon Bonds. The Director of Finance shall maintain suitable books of registry on which shall be entered the name and address of the registered owner of the single instrument referred to in Section 4 hereof. -11- Upon ninety (90) days notice in writing by the registered owner thereof to the Director of Finance and the surrender thereof to the Director of Finance for cancellation, the single fully registered instrument referred to in Section 4 hereof may be exchanged at the expense of the registered owner for Bonds in bearer form in an aggregate principal sum equal to the aggregate principal sum of such single fully registered instrument then unpaid, maturing as to principal on the days a.nd in the amounts as mature the then unpaid installments of principal of such single fully registered instrument and bearing interest at the rate and payable at the times as is payable the interest then accrued or to accrue on such single fully registered instrument then unpaid, with such coupons to evidence such interest to be attached to such Bonds so that no gain or loss of interest shall result from such exchange. The Director of Finance is hereby fully authorized to fix and determine, in a manner not inconsistent herewith, the form, date, numbers, denomination or denominations, redemption provisions and other details of such coupon Bonds and the coupons pertaining thereto and to deliver the same to the owner thereof upon the exchange therefor of the single fully registered instru- ment. Any such coupon Bonds shall set forth therein the provi- sions for the giving of notice of the prior redemption thereof, which provisions shall provide for not less than thirty (30) days published notice of any such redemption. SECTION 6. Appropriations; Arbitrage Covenant. The proceeds of the money received as a loan from the United States of America, United States Department of Agriculture, Farmers Home Administra- tion, referred to in subparagraph B of Section 1 hereof shall be used and applied only for waterworks projects referred to in subparagraph A of Section 1 hereof, and shall be so used and applied only pursuant to appropriations for such project duly made in accordance with the Charter of the County of Hawaii and laws applicable thereto. ~12~ To the extent the issuance of general obligation bonds of the County of Hawaii is authorized by other proceedings of this Council to provide funds to satisfy the amounts of appropriations satisfied from the moneys received from the United States of America, United States Department of Agriculture, Farmers Home Administration, upon the issuance of Bonds pursuant hereto, the amount of general obligation bonds authorized by such other proceedings shall 'be correspondingly reduced. The County of Hawaii hereby covenants with the holders from time to time of the Bonds (including the holder from time to time of the single fully registered instrument referred to in Section 4 hereof) that so long as any of said Bonds shall be outstanding, no use of the proceeds of the Bonds shall be made which would cause the Bonds to be "arbitrage bonds" under Section 103 (c) of the U.S. Internal Revenue Code of 1954, as amended, and that the County of Hawaii shall comply with any applicable regulations adopted under said Section 103(c). SECTION 7. Effective Date. This Ordinance shall take effect upon its approval. INTRODUCED BY: ~` ~ .. Councilman, 'County o Hawaii Hilo, Hawaii Date of Introduction: March 4, 19 81 Date of Adoption: March 1$, 1981 Effective Date: March 30, 1981 -13- Hilo, Hawaii Date : March 4 , 19 81 FIRST READING AYES NOE5 A/E Dahlberg X De Luz X Domingo X Fujii X Hale X Kawahara X Lai X Schutte X Chr. Yamashiro X 9 0 0 Hilo, Hawaii Date: March 18, 1981 SECOND & FINAL READING AYES NOES A/E Dah lberg De Luz X Domingo X Fujii X Hale X Kawahara X Lai X S chut to X Chr. Yamashiro X 9 0 0 Publication Date: MAC 9 ~~~~ Publication Date: APR 5 1`.~~1 We do hereby certify that the foregoing BILL was adopted by the County Council and published as indicated above. 4~ s_ ! ~-n ~ ~~ -- ~ i~`~~... , ..~ .a. ~.rr-=- - --------- - ------ ~ i~ un c i l Ch a i n _____ Gam., ~, j County Clerk ~' Bill No. 719 Reference: C-103 FC-25 M.B. No. ___. Ord. No. ~°~~ Approved/ _ ~-this ,,~~' `may o f 19~.