CC PACKET 03272001 - Laserfiche WebLink

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such payments to Direct Participants is the responsibility of DTC, and disbursement of such payments to the Beneficial Owners is the responsibility of Direct and Indirect Participants. A Beneficial Owner shall give notice to elect to have its Obligations purchased or redeemed, through its Direct Participant, to the nominee holding the Obligations, and shall effect delivery of such Obligations by causing the Direct Participant to transfer the Direct Participant's interest in the Obligations, on DTC's records, to the nominee holding the Obligations. The requirement for physical delivery of the Obligations in connection with a purchase or redemption will be deemed satisfied when the ownership rights in the Obligations are transferred by the Direct Participants on DTC's records and followed by a book-entry credit of purchased or redeemed Obligations to the nominee holding the Obligations. DTC may discontinue providing its services as securities depository with respect to the Obligations at any time by giving reasonable notice to the Registrar. Under such circumstances, in the event that a successor securities depository is not obtained, certificates are required to be printed and delivered. The Issuer may decide to discontinue use of the system of book-entry transfers through DTC (or a successor securities depository). In that event, certificates will be printed and delivered. The information in this section concerning DTC and DTC's book-entry system has been obtained from sources that the Issuer believes to be reliable, but the Issuer takes no responsibility for the accuracy thereof. AUTHORITY AND PURPOSE • The Bonds are being issued pursuant to Minnesota Statutes, Chapters 429 and 475. The proceeds of the Bonds will be used to finance various street, water and sewer improvement projects within the City. The composition of the Bonds is as follows: Project Costs $2,020,600 Less: Available City Funds (939,700) Plus: Issuance Costs 23,722 Allowance for Discount Bidding 13,920 Capitalized Interest 41,458 Total Bonds $1,160,000 SECURITY AND FINANCING In addition to its general obligation pledge, the City pledges special assessments levied against benefited property. Special assessments in the principal amount of $335,100 are expected to be filed on or about October 15, 2001 for first collection in 2002. Assessments will be spread over 15 years in equal annual principal and interest installments with interest charged on the unpaid balance at a rate of 6.5%. The August 1, 2001 and February 1, 2002 interest payments will be made from capitalized interest of approximately $41,458 which is included in the principal amount of the issue. Thereafter, special assessments and levy collections will be in an amount sufficient to pay 105% of the interest coming due August 1 in the year of collection and the principal and interest coming due February 1 of the following year. -4 -