HomeMy WebLinkAboutORD 1983-008 1980-1984BILL NO. 957
(Draft 2)
COUNTY OP RAWAII - STATE OF HAWAII
ORDINANCE DTO. 83 8
AN ORDINANCE AIITHORIZING TBE ISSUANCE OF $7,000,000 GENERAL
OBLIGATION BONDS OF THE COUNTY OF HAWAII FOR THE PURPOSE OF
FINANCING VARIOUS PUBLIC IMPROVEMENTS OF THE COUNTY OF
HAWAII; FIXING THE PORMS, DENOMINATIONS, AND CERTAIN OTAER
FEATIIRES OF SUCH BONDS AND PROVIDING FOR THEIR SALE; AND
AIITHORIZING THE ISSUANCE AND SALE OF A LIRE PRINCIPAL AMOIINT
OF GENERAL OBLIGATION BOND ANTICIPATION NOTES IN
ANTICIPATION OF THE ISSUANCE AND SALE OF SAID BONDS.
BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII:
SECTION 1. Authorization of Bonds. There are
hereby authorized for issuance and sale general obligation
bonds of the County of Hawaii, State of Hawaii (hereinafter
referred to as the "County") in the principal amount of
$7,000,000, the proceeds derived from the sale of which
shall be used to pay all or part of the cost of
appropriations for improvements and betterments to and
extensions of the waterworks operated by the Department of
Water Supply of the County, such waterworks being a public
undertaking from which revenues are derived, and the
acquisition of necessary lands therefor.
SECTION 2. Details of Bonds. The general
obligation bonds (hereinafter referred to as the "Bonds")
authorized for issuance and sale in Section 1 hereof shall
be issued and sold in their entirety at one time as a
separate issue or as part of an issue of general obligation
bonds of the County as shall be determined by the Director
of Finance. All such Bonds shall be issued in fully
registered form without coupons in the denominations of
$5,000 each oc any integral multiple thereof. The Bonds of
a given series shall be numbered from 7 upwards in
chronological order of delivery and the number of each Bond
of a particular maturity within a given series shall be
preceded by a serial designation for such maturity being the
year of such maturity or shall be numbered in any other
manner as the Director of Finance shall determine. The
Bonds shall mature annually on the day in each year which is
the anniversary of the date of the Bonds of such series, in
substantially equal installments of principal or in
substantially equal installments of principal and interest,
the first of such maturities to be not later than five years
from the date thereof and the last of such maturities to be
not later than twenty-five years from the date thereof,
may be redeemable prior to their stated maturities at any
time or times on and after ten (10) years from their date at
prices not exceeding 7048 of the principal amount thereof,
and shall bear interest at such rate or rates per annum, not
exceeding twelve per centum (128) per annum, as shall be
specified in the bid accepted for the purchase of the Bonds
of such series, if any bid therefor be accepted, such
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interest being payable on the day 'which is six months from
the date of the Bonds of such series and semiannually
thereafter. The Director of Finance is hereby authorized to
determine, in accordance with and subject to the provisions
of this ordinance, the series designation of the Bonds; the
date of the Bonds; the interest payment dates thereof; the
maturity dates thereof; the amount of principal maturing on
each maturity date; the place or places at which the Bonds
may be paid or registered, which may include the office of
the Director of Finance; and whether or not the Bonds shall
be subject to redemption prior to their stated maturities
and, if subject to such prior redemption, the provisions for
such prior redemption, the premiums (if any) payable upon
such redemption and the respective periods in which such
premiums are payable.
SECTION 3. Redemption of Bonds. Zn the event any
of the Bonds shall be subject to prior redemption and if any
Bond (or portion thereof in installments of $5,000 or any
integral multiple thereof) is to be redeemed notice of
redemption shall be mailed, postage prepaid, not less than
thirty (30) days prior to the redemption date, by registered
or certified mail, to the registered owners of the Bonds
which are to be redeemed in whole or in part at their last
addresses appearing upon the bond registration books
hereinafter mentioned.
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If any Bond shall have been duly called Eor redemption and
notice of such redemption duly given as aforesaid, and if
moneys for the payment of such Bond at the then applicable
redemption price and the interest accrued on the principal
amount thereof to the date of redemption are made or duly
provided for by the County, interest shall cease to accrue
and become payable from and after the date fixed for
redemption and the coupons, if any, for interest
appertaining thereto maturing subsequent to the date fixed
for redemption shall be void.
SECTION 4. Registration, Exchange and Transfer of
Bonds. At all times during which any Bond of any series
remains outstanding and unpaid, the registrar for such
series shall keep or cause to be kept'at its principal
office bond registration books for the registration,
exchange and transfer of such Bonds. Upon presentation at
its principal office for such purpose the registrar, under
such reasonable regulations as it may prescribe, shall
register, exchange or transfer, or cause to be registered,
exchanged or transferred, on the bond registration books the
Bonds as hereinbefore set forth. The bond registration
books shall at all times be open for inspection by the
County or any duly authorized officer thereof.
Any Bond may be exchanged at the principal office
of the registrar for such series of Bonds for a like
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aggregate principal amount of such Bonds in other authorized
principal sums of the same series, interest rate and
maturity. Any Bond of any series may, in accordance with
its terms, be transferred upon the~bond registration books
by the person in whose name it is registered, in person or
by his duly authorized agent, upon surrender of such Bond to
the registrar for such series for cancellation, accompanied
by a written instrument of transfer duly executed by the
registered owner in person or his duly authorized agent, in
form satisfactory to the registrar.
All transfers or exchanges pursuant to this
Section shall be made without expense to the holder of such
Bonds, except as otherwise herein provided, and except that
the registrar for such series of Bonds. shall require the
payment by the holder of the Bond requesting such transfer
or exchange of any tax or other governmental charges
required to be paid with respect to such transfer or
exchange. All Bonds surrendered pursuant to this Section
shall be cancelled.
No transfer or exchange of Bonds shall be required
to be made after the close of business of the fifteenth day
of the calendar month next preceding an interest payment
date for such series of Bonds, nor during the forty-five
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(45) days next preceding the date fixed for redemption of
such Bonds.
Whenever any Bond of a series shall be surrendered
for transfer or exchange, the County shall execute and
deliver at the principal office of the registrar for such
series, and the registrar shall prepare and authenticate,
and send by registered mail to the owner or new owner
thereof at his request, risk and expense, a new duly
executed Bond or Bonds of the same series, interest rate and
maturity and for a like aggregate principal sum registered
on the bond registration books in such manner as the owner
or transferee, as the case may be, may request.
SECTION 5. Execution and Form of Fully Registered
Bonds. The Bonds shall be signed by the Director of Finance
of the County or a Deputy Director of Finance and shall bear
the lithographed or engraved facsimile signature of the
Mayor of the County and shall be sealed with the seal or a
lithographed or engraved facsimile seal of the County. The
Director of Finance may, at his election, sign such number
of Bonds of any series as he shall determine and deliver
such signed Bonds to the registrar for such series for
safekeeping prior to the time such Bonds are actually
issued, exchanged or transferred. The Director of Finance
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shall direct the registrar for the•BOnds of a given series
to authenticate such Bonds and no such Bond shall be valid
or obligatory for any purpose unless and until the
certificate of authentication endorsed~on each Bond shall
have been manually executed by an authorized •officer of the
registraz. Upon the authentication of any Bonds the i~
registrar shall insert in the certificate of authentication
the date as of which such Bonds are authenticated, such date
to be the date upon which such Bond is actually
authenticated if the date of such actual authentication is
an interest payment date or to be the interest payment date
next preceding the date upon which the aond is actually
authenticated if such Sond is not actually authenticated
upon an interest payment date or to be the date of the
series of Bonds of which such Bonds is one if such Bond is
actually authenticated prior to the first date upon which
interest is payable upon the series of Bonds of which such
Bond is one. The Bonds shall be designated and the form of
the Bonds, the registrar's certificate of authentication and
the assignment shall be, substantially as follows with such
appropriate insertions, variations, and omissions as are
required with respect to a particular series of the Bonds:
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(FORM OF BOND)
"UNITED STATES OF.AMERICA
STATE OF HAWAII
COUNTY OF HAWAII
PUBLIC IMPROVEMENT BOND, SERIES
No. [year of maturity)- $ ,000
The County of Hawaii (hereinafter called the
"County"), State of Hawaii, for value received hereby
promises to pay to , or registered assigns, on j
the day of , (unless this bond shall
be subject to prior redemption and shall have theretofore
been called for previous redemption and the payment of the
redemption price duly made or provided) the principal sum of
Dollars ($ ,000) upon presentation and
surrender of this bond at the principal office of
and to pay interest on said principal sum by
check or draft mailed to the person in whose name this bond
is registered in the bond registration books kept and
maintained by , the Registrar, at the close of
business on the fifteenth day of the calendar month next
preceding each interest payment date, from the date of
authentication hereof until payment of said principal sum in
full at the rate of per centum ( 8) per annum,
payable semiannually on the _day of
and
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the day of in each year. The principal
of, premium, if any, and interest on this bond are payable
in any coin or currency of the United States of America
which at the time of payment is legal tender for public and
private debts.
This bond is one of a series designated Public
Improvement Bonds, Series of like date and tenor,
except as to number, denomination, interest rate and
maturity. The bonds of the series of which this bond is one
(or portions of the principal amount thereof in installments
of $5,000 or any integral multiple thereof) maturing ,
19_, and thereafter are subject to redemption at the option
of the County prior to the respective stated maturities
thereof, on and after , 19_, in whole at any time,
and in part from time to time on any interest payment date
and in inverse order of maturities, at the principal amount
thereof (or the portion of the principal amount thereof to
be redeemed), the interest accrued thereon to the date fixed
for redemption and the following redemption premiums
expressed as a percentage of the principal amount redeemed:
8 if redeemed during the period , 19 to
19 both inclusive; 8 if redeemed
during the period , 19 , both inclusive; 8 if
redeemed during the period 19 both inclusive;
8 if redeemed during the period , 19 to
19 , both inclusive; and no premium if
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redeemed on or after , 19 If less than all
the bonds of any maturity are called for redemption, the
bonds of such maturity to be redeemed (or portions thereof
to be redeemed) shall be selected by lot.
In the event this bond is redeemable, as
aforesaid, and this bond (or any portion of the principal
sum hereof) shall be called far redemption, notice of the
redemption hereof stating the designation, date, number and
maturity of this bond, the date fixed for such redemption,
the premium payable upon such redemption, and if less than
the entire principal sum of this bond is to be redeemed,
that this bond must be surrendered in exchange for the
principal amount hereof to be redeemed and the issuance of a
new bond equalling in principal amount that portion of the
principal sum hereof not redeemed, shall be given not less
than thirty (30) days prior to the date fixed for redemption
by registered or certified mail to the person whose name
appears in the bond registration books as the registered
owner of this bond. If this bond be redeemable and this
bond (or any portion of the principal sum hereof) shall have
been duly called for redemption and notice of the redemption
hereof given as aforesaid, and if on or before the date
fixed for such redemption payment hereof shall be duly made
or provided for, interest hereon shall cease from and after
the redemption date hereof.
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If this bond be of a denomination in excess of
$5,000, portions of the principal sum hereof in installments
of $5,000 or any integral multiple thereof may be redeemed,
and if less than all of the principal sum hereof is to be
redeemed, in such case upon the surrender of this bond at
the principal office of the Registrar, there shall be issued
to the registered owner, without charge therefor, for the
then unredeemed balance of the principal sum hereof, a
registered bond or registered bonds of like series, maturity
and interest rate in the denominations of $5,000 or any
integral multiple of $5,000.
The bonds of the series of bonds of which this
bond is a part are issuable as fully registered bonds
without coupons in the denominations of $5,000 and any
integral multiples thereof. Subject to the limitations and
upon payment of the charges, if any, registered bonds
without coupons may be exchanged at the principal office of
' , as Registrar, in
for a like aggregate principal amount of registered
bonds without coupons of other authorized principal sums and
of the same series, interest rate and maturity.
This bond shall be transferable by the registered
owner or his agent duly authorized in writing at the
principal office of the Registrar upon surrender and
cancellation of this bond, and thereupon a new registered
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bond or bonds without coupons of a like aggregate principal
amount and of the same series, interest rate and maturity
will be issued to the transferee upon payment of the
transfer charge if any. The County and the Registrar may
treat the person in whose name this bond is registered as
the absolute owner hereof for the purpose of receiving
payment hereof and for all other purposes and shall not be
affected by any notice to the contrary, whether this bond be
overdue or not.
This bond is one of a series of bonds authorized
by the Council of the County to be issued to provide funds
for various improvements to and extensions of the waterworks
operated by the Department of water Supply of the County.
This bond and the series of which it is a part are 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, as amended, the Charter
of the County, and proceedings of the aforesaid Council duly
taken thereunder. This bond is a general obligation of the
County, and the payment of the principal and interest hereof
is a first charge on the general fund of the County. The
full faith and credit of the County are irrevocably pledged
to the punctual payment of the principal of and interest on
this bond according to its terms.
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This bond shall not be valid or obligatory unless
the Certificate of Authentication hereon shall have been
manually signed by an authorized officer of the Registrar.
It is hereby certified, recited and declared that
all conditions, acts and things essential to the validity of !
this bond and the series of which it forms a part exist, I
have happened and have been done; that every requirement of
law affecting the issuance thereof has been duly complied
with; and that the amount of this bond and the series of
which it forms a part, together with all other indebtedness
of the County is not in excess of any statutory or
constitutional limitation of indebtedness.
IN WITNESS WHEREOF, the County of Hawaii has
caused this bond to be signed by its Director of Finance or
a Deputy Director of Finance, to bear the lithographed or
engraved facsimile signature of its Mayor and to be sealed
with a lithographed or engraved facsimile of its seal, and
this bond to be dated as of the day of
19
Director of Finance or Deputy
Director of Finance of the
County of Hawaii
Mayor of the Countyof Hawaii
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(FORM OF CERTIFICATE OF AUTHENTICATION)
Registrar's Cer4ificate of Authentication
This bond is one of the bonds delivered pursuant
to the within-mentioned proceedings:
Registrar
By:
Aut orized O icer
Dated:
(FORM OF ASSIGNMENT)
For value received
assigns and transfers unto
the
within-mentioned bond and hereby irrevocably constitutes and
appoints
Agent, to transfer
the same on the books of registration in the office of the
Registrar with full power of substitution in the premises.
Dated:
Witness:
Registered Owner
NOTE: The signature to this assig n_m ent must
correspond with the name as written on the
face of the within bond in every particular,
without alteration, enlargement or any change
whatsoever.
SECTION 6. Sale of Bonds. Without any further
authorization from or action by this Council but subject to
the provisions hereof and of applicable law, the Director of
hereby sells,
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Finance is hereby authorized to issue and sell the Bonds at
one time, or from time to time in series. Without limiting
the generality of the foregoing, with respect to the sale of
the Bonds or of portions of the Bonds the Director of
Finance is hereby authorized to employ bond counsel, paying
i
agents, registrars and financial consultants as he may deem
advisable, to select the date for such sale, to publish and
distribute a Notice of Sale in such form and containing such
terms and conditions as he may deem advisable, to distribute
an Official Statement and such other information relating to
the Bonds as he may deem advisable, to receive bids for the
sale of the Bonds or the portion thereof being offered and
to award the sale of the Bonds or the portion thereof being
offered to the bidder offering the lowest interest cost
therefor, in accordance with the Notice of Sale; provided
that the Director of Finance may reserve the right to reject
any and all bids. Subject to the provisions of Section 2
hereof without further action of this Council, the Bonds
shall bear interest at the rates per annum as specified in
the bid or bids accepted. The Director of Finance and all
officials of the County are hereby authorized to take such
action and execute such orders, receipts and other documents
as may be necessary in order to effectuate the sale of the
Bonds or any portion thereof, and, if any bid therefor be
accepted, the preparation, execution and delivery thereof,
in accordance with the provisions hereof and applicable
law.
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SECTION 7. Authorization of Bond Anticipation
Notes. General obligation bond anticipation notes are
hereby authorized for issuance and ;sale by the Director of
Finance in anticipation of the issuance and sale of the
general obligation bonds authorized herein. The issuance
and details of the notes shall be governed by the provisions i
of Section 47-2.2, Aawaii Revised Statutes, as amended.
Bonds in anticipation of which bond anticipation notes are
issued pursuant to this section may be issued and sold in
accordance with the provisions of this ordinance at any time
within five years of the date of issuance of the first notes ~
issued in anticipation of such Bonds.
SECTION 8. Security for the Bonds; Reimbursement.
Pursuant to the request by resolution of the Department of
Water Supply of the County the Bonds shall be issued for a
public undertaking from which revenues are derived as
specified in Section 1 hereof. The full faith and credit of
the County are hereby pledged to the payment of the
principal of and interest on the Bonds and the principal and
interest payments shall be a first charge on the General
Fund of the County; provided, however, that the Director of
Finance shall reimburse the General Fund for the payment of
the principal of and interest on the Bonds issued to finance
improvements to the waterworks from the net revenues derived
from the waterworks which remain after the cost of
operation, maintenance and repair of such waterworks and the
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required payments, if any, of the principal of and interest
on all revenue bonds issue6 therefor have been made.
SECTION 9. Tax Covenant. The County hereby
covenants with the holders from time to time of the Bonds
and the notes authorized herein, that so long as any Bonds
or notes shall be outstanding, no use of .the proceeds
thereof shall be made which, if such use had been reasonably
expected on the date of issue thereof, would have caused
such Bonds or notes to be "arbitrage bonds", as defined in
subsection (c)(2) of Section 103 of the United States
Internal Revenue Code of 1954, as amended, subject to
treatment under subsection (c)(1) of said Section 103, and
to that end the County shall comply with the applicable
regulations of the Internal Revenue Service adopted under
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subsection (c) requirements of Section 103(c) of the United
States Internal Revenue Code of 1954, as amended, and the
applicable regulations of the Internal Revenue Service
adopted thereunder.
SECTION 10. CUSIP Identification Numbers. The
Director of Finance may authorize the printing of CUSIP
identification numbers upon the filing panel of the Bonds.
Such numbers and the printing thereof shall be subject in
all respects to the provisions of Section 47-8.5, Hawaii
Revised Statutes, as amended.
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SECTION 11. Bond Insurance. If the original
purchaser of the Bonds, or any portion thereof, shall
procure insurance for the payment of the principal of and
interest on such Bonds and desires that a statement with
respect to such insurance shall be printed upon such Bonds,
space shall be provided on the backs of the printed Bonds
for the printing of such statement. The cost, if any, of
the printing of any such statement upon the Bonds shall be
at the expense of such original purchaser, and the County
shall not have any liability with respect thereto. Should
the procuring of such insurance or the printing of a
statement of such insurance upon the back of the Bonds cause
a delay either in the printing of the Bonds or in the
delivery of and payment therefor, tt~e County, after
notifying the original purchaser of the same, shall proceed
with the printing of such Bonds without a copy of such
statement thereon, or shall proceed with the delivery of
such Bonds without such insurance having been obtained, as
the case may be, unless an agreement is reached between the
County and the original purchaser of such Bonds extending
the date of delivery of and payment for such Bonds. Neither
the failure by the original purchaser of the Bonds to obtain
any such insurance nor the failure to print on any Bonds a
copy of a statement of insurance or any error with respect
thereto shall constitute cause for failure or refusal by the
original purchaser of the Bonds to accept delivery of and
pay for such Bonds. If any such insurance on the Bonds
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shall be obtained by the original puzchaser of such Bonds,
(a) such insurance shall not constitute a part of the
contract by and with the County evidenced by a particular
Bond or constitute a part of the proceedings providing for
the issuance thereof, and (b) no liability or responsibility
shall attach to the County or any officer or agent thereof
in any way by reason of any such insurance, including,
without limiting the foregoing, with respect to the
procuring, maintenance, enforcement or collection thereof.
Without limiting the effect of the provisions of the next
preceding sentence, the County shall be under no obligation
to take or refrain from taking any action by reason of the
existence of such insurance or any of the provisions
thereof, even though the taking or refraining from taking of
such action may result in or be cause for cancellation or
cessation of such insurance.
SECTION 12
its approval.
This ordinance shall take effect upon
INTRODUCED BY:
T~
COUNCIL MEMBER, COUN "OF
HAWAII
Hilo, Aawaii
Date of Introduction:
Date of Adoption:
Effective Date:
April 20, 1983
August 17, 1983
August 23, 1983
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