07/24/2006 Council Packet - Laserfiche WebLink

Home Search

CONTINUING DISCLOSURE In order to assist the Underwriters in complying with SEC Rule 15c2 -12 promulgated by the Securities and Exchange Commission, pursuant to the Securities Exchange Act of 1934, as the same may be amended from time to time, and official interpretations thereof (the "Rule "), pursuant to the Award Resolutions, the City has entered into an undertaking (the "Undertaking ") for the benefit of holders including beneficial owners of the Bonds to provide certain financial information and operating data relating to the City to certain information repositories annually, and to provide notices of the occurrence of certain events enumerated in the Rule to certain information repositories or the Municipal Securities Rulemaking Board and to any state information depository. The specific nature of the Undertaking, as well as the information to be contained in the annual report or the notices of material events is set forth in the Continuing Disclosure Certificate to be executed and delivered by the City at the time the Bonds are delivered in substantially the form attached hereto as Appendix II. The City has never failed to comply in all material respects with any previous undertakings under the Rule to provide annual reports or notices of material events. A failure by the City to comply with the Undertaking will not constitute an event of default on the Bonds (although holders will have any available remedy at law or in equity). Nevertheless, such a failure must be reported in accordance with the Rule and must be considered by any broker, dealer or municipal securities dealer before recommending the purchase or sale of the Bonds in the secondary market. Consequently, such a failure may adversely affect the transferability and liquidity of the Bonds and their market price. THE BONDS General Description The Bonds are dated August 15, 2006 and will mature annually each February 1, as set forth on the inside front cover of this Official Statement. The Bonds are being issued in book entry form. Interest on the Bonds is payable February 1, 2007 and semi - annually thereafter on August 1 and February 1. Interest will be payable to the holder (initially Cede & Co.) registered on the books of the Registrar as of the fifteenth day of the calendar month next preceding such interest payment date. Principal of and interest on the Bonds will be paid as described in the section "Book Entry System." U.S. Bank National Association, Saint Paul, Minnesota, will serve as Registrar for the Bonds and the City will pay for registration services. Optional Redemption The City may elect on February 1, 2017, and on any day thereafter, to prepay the Series 2006C Bonds due on or after February 1, 2018. Redemption may be in whole or in part and if in part at the option of the City and in such manner as the City shall determine. If less than all of the Series 2006C Bonds of a maturity are called for redemption, the City will notify DTC of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. All prepayments shall be at a price of par plus accrued interest. The Series 2006D Bonds will not be subject to payment in advance of their respected stated maturity dates. 2