HomeMy WebLinkAboutORD 1986-031 1984-1988COUNTY OF HAWAII STATE OF HAWAII
ORDINANCE NO,
86 31
Bill No. 143
(Draft Z)
AN ORDINANCE AUTHORIZING THE ISSUANCE OF $14,300,000 GENERAL
OBLIGATION BONDS OF THE COUNTY OF HAWAII FOR THE PURPOSE OF
FINANCING VARIOUS PUBLIC IMPROVEMENTS OF THE COUNTY OF HAWAII;
FIXING THE FORM, DENOMINATIONS, AND CERTAIN OTHER FEATURES OF SUCH
BONDS AND PROVIDING FOR THEIR SALE; AND AUTHORIZING THE ISSUANCE ANL
SALE OF A LIKE PRINCIPAL AMOUNT OF GENERAL OBLIGATION BOND
ANTICIPATIONT NOTES IN ANTICIPATION OF THE ISSUANTCE AND SALE CF SAID
BONDS.
BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII:
SECTION 1. Authorization of Bonds
There are hereby authorizes:
for issuance and sale general obligation bonds of the County of
Hawaii, State of Hawaii (hereinafter referred to as the "County") i: -
the principal amount of $14,300,000, the proceeds derived from the
sale of which shall be used to pay all or part of the cost of
appropriations for various public improvements of the County to be
financed from general obligation bond funds made (a) in the capital
budget ordinance for the fiscal year ending June 30, 1986 (Ordinance
No. 85-51, as amended); (b) in the capital budget ordinance for the
fiscal year ending June 30, 1985 (Ordinance No. 84-32, as amended);
aid (c) in the capital budget ordinance for the fiscal year ending
June 30, 1984 (Ordinance No. 896, as amended). The proceeds may also be
used to repay funds borrowed from the General Fund pursuant
to one or more resolutions of the Council.
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
55,000 each or any integral multiple thereof. The Bonds of
a given series shall be numbered from 1 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 Drincipal 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 five years from their date at prices
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not exceeding 104% of the principal amount thereof, and
shall bear interest at such rate or rates per annum, not
exceeding eleven per centufn (11%) 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
interest being payable on the day which is six months from
the date of the Bonds of such series and semiannually there-
after. 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 times, prices,
methods and other provisions for such prior redemption.
SECTION 3. Redemption of Bonds. In the event any
of the Bonds shall be subject to prior redemption and if any
Bond (or portion thereof in installment= of $5,000 or any
integral multiple thereof) is to be redeemed, notice of
redem,,cion shall be given in such manner as the Director of
Finance shall determine, not less than thirty (30) days
prior to the redemption date.
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If any Bond shall have been duly called for
redemption and notice of such redemption duly given in the
manner determined by the Director of Finance, 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
f)rovided for by the County, interest shall ce-:se to accrue
and become payable from and after the date fixed for
redemption.
SECTION 4. Reqistration, Exchanqe and Transfer of
Bonds. At all tines 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 designated
office bond registration books for the registration,
exchange and transfer of such Bonds. Upon presentation at
its designated 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 designated office
of the registrar for such series of Bonds for a like
aggregate principal amount of such Bonds in other authorized
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principal sums of the same series, interest rate and
maturity. Any Bond of any s:ries 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
forrn 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
(45) days next preceding the date fixed for redemption of
such Bonds.
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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 rind
maturity and for a like aggregate principal sum registered
on the bond registration books in such manner as the o<.ner
or transferee, as the case may be, may request.
SECTION 5. Execution and _Form of Fully Reaistere
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 nu:aber
of Bonds of any series as !ie shall determine ani deliver
such signed Bonds to the registrar for such series for safe-
keeping prior to the time such Bonds are actually issued,
exchanged or trF.nsferred. The Director of Finance 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
CM.
manually executed by an authorized officer of the
registrar.
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:
[FORM OF BOND]
Vignette
UNITED STATES OF AMERICA
STATE OF HAWAII
COUNTY OF HAWAII
N0. GENERAL OBLIGATION BOND $
--�
SERIES
--
INTEREST MATURITY DATE OF
RATE: DATE: BOLD: CUSIP
REGISTERED HOLDER:
PFINCIPAL SUM:
1
The COUNTY OF HAz7AII, S ate of Hawaii (hereinafter
called the "County"), for valve received, hereby promises to
pay to the Registered Holder (named above), or registered
assigns, the Principal Sum (specified above) on the Maturity
Date (specified above) (unless this bond shall be subject to
prior redemption and shall have theretofore been duly called
for previous redemption and r;al„ent of the redemption price
duly made or provided for), upon presentation and surrender
of this bond, and to pay interest on said Principal Sum
semiannually on the first day of ___ and the first day of
_ in each year from the date hereof or from the
or ____ 1 next preceding the date of
registration hereof to which interest shall have been paid,
unless such date of registration is 1 or _ 1,
in which case from such date, or unless such date of regis-
tration is subsequent to the close of business on the
fifteenth day (whether or not a business day) of the
calendar month next preceding a ` 1 or _ 1, in
which case from the next succeeding _ 1 or _ _ 1,
as the case may be, provided that such interest shall be
payable from 1, if the date of registration is
prior to _ 1, until the payment of said
Principal Sum in full, at the Interest Rate per annum
(specified above), in each case to the registered holder
hereof in whose name this bond is registered upon the gond
Register as of the close of business on the fifteenth day
(whether or not a business uay) of the calendar month next
preceding an interest )ayment date, such interest to be paid
by check mailed by th,- Peyi:uj Agent hereinafter mentioned to
the holder hereof at his address as it appears on the Bond
Register kept pursuant to the proceedings authorizing this
bond. The principal hereof and premium, if any hereon,
shall be payable upon presentation and surrender hereof, at
the option of the registered holder hereof, at the
Registrar and
Paying Agent, in _, or at the
principal office of
Co -Registrar and Co -Paying Agent, in _, , or
at the office of their respective successors appointed from
time to time by the County. The principal hereof, premium,
if any, and interest hereon shall be 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 "General
Obligation Bonds, Series of like date and tenor,
except as to number, denomination, interest rate, maturity
and date of registration. 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 _ _ and thereafter are subject
to redemption at the option of the County of Hawaii prior to
the respective stated maturities thereof, on and after
in wlhole at any time, and in part from time
to time on any interest payment Sate _nd in inverse order of
,naturi_ties, at the principal amount thereof (or portion of
the principal amount thereof to be redeemed), the interest
a, --cried thereon to the date fixed for redemption and the
following redemption premiums expressed as a percentage of
the principal amount redeemed: [REDEtirTION PROVISIONS)
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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 k-,,- it this bond is redeemable, as
aforesaid, and this bond (or any portion of the principal
sum hereof) shall be called for redemption, notice of the
redemption hereof stating the designation, date, number and
maturity of this bond, the date fixed for such redemption
and 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 Register as the registered
owner of this bond as of the close of business on the
forty-fifth day (whether or not a business day) next
preceding the date fixed for redemption. The failure of the
registered hol_:7�r :ere -of to actually receive such notice or
any defect in such notice shall not affect the sufficiency
of the proceedings for redemption of any bonds of the issue
of bonds of which this bond is one if notice of redemption
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shall also have been given by publication in The Bond Buyer,
a financial paper published in the City of New York, New
York or in lieu of such publication in The Bond Buyer, by
publication thereof in some other financial paper published
in any of the cities of New York, New York, Chicago,
Illinois, or San Francisco, California, the date of such
publication in any case to be at least thirty days prior to
the date fixed for the redemption hereof.
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 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 to the
Registrar or Co -Registrar there shall be issued to the
registered nolder hereof, without charge therefor, for the
then unredeemed balance of the principal sum hereof, a bond
or bonds of like issue, maturity and interest rate in any of
the authorized denominations provided by the proceedings
authorizing this bond. If this bond (or any portion of the
principal sum hereof) be redee,nrible and shall 'ie,ve been duly
called for redemption and notice of such rede-r�.:)tion duly
given as aforesaid, and if on or before the redemption date
there shall be deposited with the Paying Agent 3r Co -Paying
Agent sufficient funds to pay the principal amount hereof to
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be redeemed, the then applicable redemption premium and the
interest accrued on the principal amount to be redeemed to
the date of redemption, then this bond (or the portion of
the principal sum hereof to be redeemed) shall become due
and payable upon such redemption date and interest shall
cease to accrue and become payable from and after the
rede;apticn date on the principal amount hereof to be
redeemed.
This bond is transferable upon the Bond Register
by the registered 'holder hereof, in person or by his
attorney duly authorized in writing, at the aforementioned
offices of the Registrar or Co -Registrar but only in the
manner, subject to the limitations and upon payment of the
charges, if any, provided in the proceedings authorizing
this bond, and upon the surrender hereof to the Registrar or
Co -Registrar for cancellation, together with a written
instrLnaent of transfer satisfactory in form to the Registrar
or Co-Reistrar duly executed by the registered holder or
his duly authorized attorney, which may be the form endorsed
nereon. Upon such transfer a new bond or bonds, of
au%horiz-3 t;,'nomination and of the same aggrec,ite principal
amount, issue, interest rate and maturity as the bond
surrendered, will be issued to the transferee in exchange
herefor.
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The County, Paying Agent, Co -Paying Agent,
Registrar or Co -Registrar may treat the person in whose name
this bond is registered on the Bond Register kept pursuant
to the proceedings authorizing this bond as the absolute
owner of this mond for all purposes, including payment, and
neither the County nor the aforesaid paying agents and
registrars shall he affected by any notice to the contrary.
This bond is one of a series of bonds authorized
by the Council of the County of to be issued to provide
funds for all or parts of appropriations for public
inprovements made in the Capital Budget ordinance for the
fiscal year ended 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 laws 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 "lie ge!,eral fund of such County. The full faith
and cr-2dit DF the County are irrevocably picdg'd to t17e
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 for any
purpose until the Certificate of Authentication hereon shall
have been signed by the Registrar or Co -Registrar.
It is ',reby certified, recited and declared that
all conditions, acts and things essential to the validity of
this bond and the issue of which it forms a part exist, 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 issue of which it
forms a part, together with all other indebtedness of the
County of Hawaii, is not in excess of any constitutional or
statutory limitation on indebtedness.
IN WITNESS WHEREOF, TdE COUNTY OF HAWAII, State of
Hawaii, has caused this bond to be signed by its Director of
Finance or Deputy Director of Finance, to bear the litho-
graphed facsinile signature of its Mayor, to bear a litho-
graphed facsimile of its seal, and this bond to be dated as
of
(SEAL]
or
Director or Deputy Director of
Finance
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[FORM OF CERTIFICATE OF AUTHENTICATION]
CERTIFICATE OF AUTHENTICATION
This bond is one of the bonds described
in the within mentioned proceedings.
Date of Registration:
OR
By By --
Authorized Signature Authorized Signature
[FORM OF INSTRUMENT OF ASSIGNMENT]
ASSIGNMENT
For value received, the undersigned hereby sells,
assigns and transfers unto
Please insert social
security or other tax
identifying nu.rnber of
assignee
(name and address of assignee)
the within -mentioned bond and hereby irrevocably constitutes
and appoints
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, attorney-in-fact,
to transfer the same on the Bond Register in the office of
the within -mentioned Registrar or Co -Registrar with full
power of substitution in the premises.
Date:
Signature Guaranteed:
NOTE: The signature to this assignment must
correspond with the name as written on the face of the with-
in bond in every particular, without alteration or enlarge-
ment or any change whatsoever.
SECTION 6. Sale of Bonds. Without any further
authorization from or action by Lais Council but subject to
the provisions hereof and of applicable law, the Director of
Finance is hereby authorized to issue and sell the Bogds at
one time, or from time to time in series. v;ithout limiting
the generality of the foregoing, with respect to Llie sale of
the Bonds or of portioi•s of the Bonds, the Director of
Finance is hereby authorized to employ bond counsel, paying
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 State rent and such other information relating to
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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 Lo t'ne provisions of _ction 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 her -by 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.
SBC'PION 7. Authorization of Bond Anticipation
Notes. General obligation bond anticipation notes are
hereby authorized for issuance and sale by the Direc'cor 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
of Section 47-2.2, Hawaii Revisea Statutes, as
Bonds in anticipation of which bond anticipation notes are
issued pursuant to this section may be issued and sold in
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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 Bonus.
SECTION 8. Security for the Bonds. The full faith and
credit of the County are hereby pledged to the payment of the
hrinclpal or ano interest on the Bonds and the pri;icipal and
interest payments shall be a first charge on the General Fund of the
County.
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 mace which would cause such
Bonds or notes to be "arbitrage bonds" under Section 103(c) of the
Internal Revenue Code, and to that end the County shall comply with
the applicable regulations of the Internal Revenue Service adopted
under said Section 103(c). The Cuunty of Hawaii hereby also
covenants to comply with provisions of H.R. 3838 passed by the
United States House of Representatives un December 17, 1985 as
modified by the joint statement made on _,.fcn 14, 1986 by the
R<:n{ 1 ., __., !�c r5 of tLE? J. _ _vl1se of 'r. e'(�re5ent&t1Ve5
Committee on Ways and Means and the U. S. Senate Committee on
Finai,ce, and the Secretary of the Treasury, if and to the extent
required to maintain the exemption of interest on the Bur, ,?s from
federal income taxation.
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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.
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, the 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
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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 -ny .�.,.:�; insurance on the Bonds
shall be obtained by the original purchaser of such Bonds,
(a) such insurance shall not cu,stitute a part of the
contract by and with the Co-,:ity _,7idenced 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, -A th respect to the
procuring, maintenance, enforce.oent or collection thereof.
iaithout limiting the effect of the provisions of the next
preceding sentence, the County s'iall be under no obligation
to ta-e or refrain from taking auy action by reason of the
existence of such insurance or any of the provisions
thereof, even though the taking or refraining fro;n taking of
each r --tion may result in or b ure for cancellation or
cessation of such insurance.
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SECTION 12. This ordinance shall take effect upon
its approval.
INTRODUCED BY:
COUNCIL MEMBER, COUNTY OF
HAWAII
,filo, f?so;aii
Date of Introduction: March 19, 1986
Date of Adoption: April 9, 1986
Effective Date: April 14, 1986
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