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HomeMy WebLinkAboutRES 565 Draft 01 1969-1972County of Hawaii—State of Hawaii Resolution No. 565 RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF $4,200,000 PAR VALUE IMPROVEMENT DISTRICT BONDS FOR IMPROVEMENT DISTRICT NO. 10, KALOKO MAUKA, NORTH KONA,_ HAWAII!. WHEREAS, by Ordinance No. 524, as amended, of the County of Hawaii, special assessments were fixed and levied against the several properties situated in and comprising Improvement District No. 10, KALOKO MAUKA, NORTH KONA, HAWAII; WHEREAS, the total amount assessed was $4,200,0002 which amount is required to meet the cost of the proposed improvements; NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII, STATE OF HAWAII; 1. That Improvement District Bonds for Improvement District No. 10, Kaloko Mauka, North Kona, Hawaii, in an amount not to exceed $4,200,000 be and the same are hereby authorized for issuance. The exact amount shall be determined on or after November 6, 1972, the date on which the cash collection period provided in Ordinance No. 524, as amended, ends. The officials designated by law including the Director of Finance are hereby directed to execute and issue such bonds, as provided by the Charter of the County of Hawaii and Ordinance No. 350 of the County of Hawaii, as amended. 2. That the bonds of this issue shall be dated November 15, 1972, shall be coupon bonds, shall be without privilege of registration, shall be numbered consecutively, and shall bear interest at the rate of not to exceed eight per cent (8%) per annum payable semi-annually on May 15 and November 15 each year such bonds are outstanding, such interest rate to be determined at the sale of the bonds; that the bonds will continue to bear interest after maturity at the rate stated therein, provided that they are presented at maturity and payment thereof is refused upon the sole ground that there are not sufficient moneys in the redemption fund with which to pay same, and if they are not presented at maturity, interest thereon will run only until maturity; that the denominations of said bonds with their respective numbers and dates of maturity shall be shown on Exhibit "A" hereto attached and made a part hereof by reference, subject to change in the event a portion of the assessments are paid in the manner and period specified in Ordinance No. 524, as amended; that bonds maturing on or after November 15, 1974 shall be subject to call and redemption prior to maturity at a premium of one half of one per cent Q%) of the principal amount thereof plus one half of one per cent (k%) of the principal amount thereof for each year from re- demption date to date of maturity, but not to exceed five per cent (5%), whenever sufficient funds are available; that said bonds and interest coupons thereof shall be printed or litho- graphed, and shall be issued in substantially the following form: NO. UNITED STATES OF AMERICA STATE OF HAWAII IMPROVEMENT DISTRICT BOND OF THE COUNTY OF HAWAII $ IMPROVEMENT DISTRICT NO. 10 $ TOTAL ISSUE KALOKO MAUKA, NORTH KONA -2 - RESOLUTION NO. 565 KNOW ALL MEN BY THESE PRESENTS: That, subject to the provisions of Ordinance No. 350 of the County of Hawaii, as amended, and pursuant to proceedings of the Council of the County of Hawaii duly taken thereunder: THE COUNTY OF HAWAII, State of Hawaii, for value received, hereby promises to pay to the bearer hereof out of the funds hereinafter specified, the sum of DOLLARS ($ ) on the 15th day of November, 19�9 together with interest thereon from date hereof at the rate of per cent ( %) per annum, payable semi- annually on the 15th day of May and the 15th day of November, upon presentation and surrender of the interest coupons attached hereto as they severally become due, both principal and interest of this bond being payable at the principal office of Paying Agent for this bond. The principal and interest of this bond are exempt from all state, county and municipal taxation in the State of Hawaii, except inheritance, transfer and estate taxes. Bonds maturing on or after November 15, 1974, are subject to call and redemption on the 15th day of November, 1973, and annually thereafter, as provided in said Ordinance No. 350, as amended. A premium of one half of one percent Q%) of the principal amount hereof plus one half of one percent (k%) of the principal amount hereof for each year from re- demption date to date of maturity, but not to exceed five per cent (5%), shall be payable upon such redemption. This bond is payable exclusively out of (1) the money to be collected or paid on account of the assessments unpaid 565 -3- RESOLUTION N0. as of the 6th day of November 1972, being a total sum of bearing interest at eight per cent (8%) per annum as prescribed by Ordinance No. 524, as amended, of said County of Hawaii, which assessments were levied against property within Improvement District No. 10, Kaloko Mauka, North Kona, Hawaii, in said County of Hawaii, which unpaid assessments are payable in fifteen annual installments, the principal amounts of which correspond each year with the principal amount of bonds of this issue which mature in such year, together with interest at eight per cent (8%) per annum from October 6, 1972, and which assessments are severally a lien upon the several properties assessed to the extent of the amount of the unpaid assessments thereon, respectively, which lien has priority over all other liens except the lien of property taxes, with which tax lien said lien is on a parity; and (2) a n amount equal to one quarter of maximum annual debt service to be placed in a reserve fund from the bond proceeds, said fund to be established pursuant to Section 5.2.1 of said Ordinance No. 350, as amended. THE COUNTY OF HAWAII hereby promises, for valuable consideration, to cause said unpaid assessments to be collected or paid and kept in the Improvement District Bond and Interest Redemption Fund to be applied solely to the payment of interest and principal on the bonds issued for said Improvement District until fully paid, and will otherwise perform all its obligations as required by law. THE COUNTY OF HAWAII does not otherwise guarantee the payment hereof. This bond is not a general debt of the County of Hawaii, nor based upon the credit of the public domain, nor '4' RESOLUTION NO. 5615 chargeable against the general revenues of said County, nor has it been specifically authorized by the voters of said County as part of a general indebtedness. It is hereby certified and recited that all acts, conditions and proceedings essential to the validity of this bond and required by said Ordinance No. 350, as amended, to be done precedent thereto and in the issuing of this bond, exist, have duly happened and have been performed in regular and due form as required by laws. IN WITNESS WHEREOF, the said COUNTY OF HAWAII has caused this bond to be executed by its Director of Finance, and to bear the lithographed or engraved facsimile signatures of the Chairman of its Council and its Clerk and sealed with the corporate seal of the County of Hawaii, and the interest coupons hereto attached to bear the lithographed or engraved facsimile signature of its Director of Finance, as of the 15th day of November, 1972, ATTESTED: Clerk (SEAL) :A By COUNTY OF HAWAII Chairman of Council Director of Finance 005- RESOLUTION NO. 565 • r (FORM OF COUPON) The County of Hawaii, State of Hawaii will pay the bearer hereof at the ( 0 Paying Agent for this coupon, the sum shown hereon, being semiannual interest then due on its Improvement District Bond issued for IMPROVEMENT DISTRICT NO. 10, KALOKO MAUKA, NORTH KONA, HAWAII, dated as of November On 159 19_______ BOND NO. 159 1972. COUPON NO. STANLEY A. NAKAMAE Director of Finance 3. That the principal and interest of said bonds shall be payable at the office of the Director of Finance of the County of Hawaii in Hilo, Hawaii or, at the option of the bondholder, at the office of the Paying Agents of the County in Hilo, Hawaii, Los Angeles or San Francisco, California, New York, New York, or Chicago, Illinois, said Paying Agents to be designated upon the sale of the bonds, solely and exclusively out of the Improvement District Bond and Interest Redemption Fund from all moneys collected on account of assessments and interest due for Improvement District No. 10, Kaloko Mauka, North Kona, Hawaii, which shall be designated in the bonds issued hereunder, and an amount equal to one quarter maximum annual debt service to be placed in a reserve fund from the bond proceeds, said fund to be established pursuant to Section 5.2.1 of said Ordinance No. 350, as amended, and Article VII of Resolution No. 424 of the County of Hawaii is hereby amended accordingly; and that moneys in said reserve fund shall be used to pay the principal or interest or both, in whole or in part, -6- RESOLUTION NO. 565 on the last outstanding maturity or maturities of said bonds and assessment installments or such portions thereof which would otherwise be collected to make such payment shall be cancelled, provided that in making such use of the reserve fund the Director of Finance shall (a) apportion to assessments paid during the original thirty day period or paid in advance, pursuant to Section 4.3 and 4.7, respectively, of said Ordinance No. 350, as amended, if any, their respective proportionate shares of said moneys, and (b) make provision for expected delinquencies in payment of any portions of assessment install- ments which will not be cancelled by such use of said reserve fund, and provided further that insofar as said.moneys are attributable to fully paid assessments rather than to cancella- tion of installments or portions thereof, the same shall be paid to the respective parties who paid such assessments or the last payment thereon, as the case may be. 4. That with respect to call and redemption before maturity of any of said bonds, moneys in said reserve fund shall not be deemed available therefor (except for the sole purpose of determining whether there are sufficient funds in the hands of the Director of Finance to make the next interest payment on the unpaid balance of said bonds), so that such call and redeption shall be made only from funds in the hands of the Director of Finance by reason of advance payment of assessment installments pursuant to Section 4.7 of said Ordinance No. 350, as amended; and that in the event of such call and redemption the Director of Finance shall promptly mail, postage prepaid, to the original purchaser of said bonds, at his last known address, a true copy of the notice published pursuant to Section 5.5 of said Ordinance No. 350, as amended. -7- RESOLUTION NO. 565 + , 41. 5. The interest and income accruing on any money in any fund, any profit realized from the liquidation of any investment of any money in any fund and any surplus money in any fund, shall be credited to the Improven ent District Bond and Interest Redemption Fund, 6. That the Director of Finance of the County of Hawaii is hereby authorized and directed to procure the printing and lithographing of the necessary bonds authorized herein, sub- stantially according to the foregoing form hereby approved by the Council of the County of Hawaii. 7. The County hereby covenants that no use will be made of the proceeds of the bonds which, if such use had been reasonably expected on the date of issue of the bonds, would have caused the bonds to be arbitrage bonds. The County further covenants that it will comply with the requirements of Section 103(d) of the Internal Revenue Code and the regula- tions adopted thereunder throughout the term of the issue. 1972. Dated at Hilo, Hawaii, this 11 th day of October , COUNTY COUNCIL County of Hawaii Hilo, Hawaii INTRODUCED BY: By. C ci an, County of 62awaii I hereby certify that the foregoing RESOLUTION was by the vote indicated to the right hereof adopted by the COUNCIL of the County of Hawaii on. ATTEST: Tadashi Suzuki COUNTY CLERK ................... ........................0 Herbert T. Matayoshi CHAIRMAN & PRESID64G OFFICER ROLL CALL VOTE AYES I NCES Carpenter Xi De Luz X Edwards X Greenwell X Hisaoka X Souza X Yadao X Yamada X Chr. Matayoshi X Reference: ............................... PWC -89.............. - ! M.B. No...........�........¢........................................ RESOLUTION NO. ...............................................