10/23/2006 Council Packet - Laserfiche WebLink

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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 November 1, 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 will be payable semi- annually each February 1 and August 1, commencing February 1, 2007 for the Series 2006E Bonds and August 1, 2007 for the Series 2006F Bonds. 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, 2016, and on any day thereafter, to prepay the Series 2006E Bonds due on or after February 1, 2017. 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 2006E 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 2006F Bonds will not be subject to payment in advance of their respected stated maturity dates. Book Entry System The Depository Trust Company ( "DTC "), New York, New York, will act as securities depository for the Obligations. The Obligations will be issued as fully registered securities registered in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully registered certificate will be issued for each maturity of each series of the Obligations, in the aggregate principal amount of such maturity, and will be deposited with DTC. DTC is a limited - purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds securities that its participants ( "Direct Participants ") deposit with DTC. DTC also facilitates the post -sale settlement among Direct Participants of sales and other securities transactions in deposited securities through electronic -2-