TOWN
OF
RESOLUTION
9-04
THE
TOWN OF
INFRASTRUCTURE
BONDS
INTRODUCED BY: Ways and Means Committee
ENACTED:
A RESOLUTION
OF THE TOWN OF FOREST HEIGHTS,
MARYLAND, A MUNICIPAL CORPORATION OF THE STATE OF MARYLAND, PROVIDING
FOR THE
ISSUANCE AND SALE OF AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED TWO
MILLION
DOLLARS ($2,000,000) OF BONDS OF
THE TOWN OF FOREST HEIGHTS, MARYLAND, TO
BE KNOWN AS “THE TOWN OF FOREST HEIGHTS, MARYLAND INFRASTRUCTURE
BONDS,” TO BE
ISSUED AND SOLD PURSUANT TO THE AUTHORITY OF SECTION 2-204 (16) (iv) OF
ARTICLE
83B OF THE ANNOTATED CODE OF MARYLAND, AS AMENDED, FOR THE PURPOSE OF
PROVIDING
ALL OR A PORTION OF THE FUNDS NECESSARY FOR THE PURPOSE OF THE
FOLLOWING PROJECT: ROAD REPAIR AND RECONSTRUCTION
PROJECT AND PAYING THE COSTS OF ISSUING THE BONDS (as hereinafter
defined); PROVIDING THAT THE BONDS SHALL BE
ISSUED UPON THE FULL FAITH AND CREDIT OF THE TOWN OF FOREST HEIGHTS,
MARYLAND;
PROVIDING FOR THE DISBURSEMENT OF THE PROCEEDS OF THE SALE OF THE BONDS
AND FOR
THE LEVY OF ANNUAL TAXES UPON ALL ASSESSABLE PROPERTY WITHIN THE TOWN
OF FOREST
HEIGHTS FOR THE PAYMENT OF THE PRINCIPAL OF AND INTEREST ON THE BONDS
AS THEY
SHALL RESPECTIVELY MATURE; PROVIDING FOR THE FORM, TENOR, DENOMINATION,
MATURITY DATE AND OTHER PROVISION OF THE BONDS; PROVIDING FOR THE SALE
OF THE
BONDS; AND PROVIDING FOR RELATED PURPOSES, INCLUDING THE METHOD OF
FIXING THE
INTEREST RATE TO BE BORNE BY THE BONDS.
WHEREAS, the TOWN OF
FOREST HEIGHTS, Maryland (the “Issuer”) is a
municipal corporation of the State of Maryland organized and operating
under a
charter (the “Charter”) adopted in accordance with Article XI-E of the
Constitution of Maryland and Article 23A of the Annotated Code of
Maryland, as
amended (the “Maryland Code”); and
WHEREAS, pursuant to
the authority of Section 2-204(16)(iv) of
Article 83B of the Maryland Code, the Issuer has determined to issue
its
general obligation bonds in the aggregate principal amount not to
exceed TWO
MILLION DOLLARS ($2,000,000) for the purpose of
INITIATING THE ROAD REPAIRS AND RECONSTRUCTION PROJECT (collectively,
the “Project”) and the payment of issuance costs, bond insurance
premiums and
other related costs; and
WHEREAS, the Issuer
proposes to issue and sell the Bonds to the
Community Development Administration, an agency in the Division of
Development
Finance of the Department of Housing and Community Development, a
principal
department of the government of the State of Maryland (the
“Administration”),
in connection with the Local Government Infrastructure Financing
Program of the
Administration (the “Program”); and
WHEREAS, it is the
intention of the Issuer by this Resolution to
provide for the issuance and sale of the aforementioned Bonds and to
obtain a
loan from the Administration pursuant to the Program (the “Loan”).
WHEREAS, the Issuer
intends to authorize the Government Officers to
execute and deliver the Bonds and all other documents, certificates and
other
materials related to the issuance, sale and delivery of the Bonds and
the
execution and delivery of the Loan.
WHEREAS, the
Administration intends to issue one or more series of
its Local Government Infrastructure Bonds (Ambac Insured) (the
“Administration’s Bonds”) to finance the Loan and other loans to be
financed
pursuant to the Program (the “Administration Financing”).
NOW,
THEREFORE, BE IT RESOLVED:
Section
1.
Authorization, Terms, Form of Bonds.
(a) The Issuer
shall borrow upon its full
faith and credit and shall issue and sell upon its full faith and
credit an
aggregate principal amount not to exceed TWO MILLION
DOLLARS ($2,000,000) principal amount of its general
obligation bonds, to be issued pursuant to the authority of Section
2-204(16)(iv) of Article 83B of the Maryland Code, to be known as the
“The Town
of Forest Heights, Maryland Infrastructure Bonds,” (the “Bonds”)
(Exhibit A). There shall be added to the
title of the
Bonds a designation corresponding to the series of which such Bonds are
a
part. The proceeds from the sale of the
Bonds shall be used for the purpose of providing a portion of the funds
necessary for financing the Project and the payment of issuance costs,
bond
insurance premiums and other related costs.
(b) The Bonds
shall be issued as a single
fully registered bond certificate in the aggregate principal amount not
to
exceed TWO MILLION DOLLARS ($2,000,000) payable to the Administration
as the
registered owner thereof. The Bonds
shall be issued in such amount or such lesser amount as determined by
the Mayor
pursuant to subsection (g) below, which shall be equal to the principal
amount
of the Loan to be financed under the Program.
(c) The Bonds
shall be dated as of the date
of issue, or as of such other date as is specified by the
Administration; shall
be numbered R-1; shall be initially registered in the name of the
Administration or its designee; shall bear interest from the Date which
is one
month prior to their dated date, payable semiannually on May 1 and
November 1,
at such annual rate or rates and be payable in annual principal
installments at
the designated Office of the Administration.
(d) The Bonds
shall bear interest at an
annual rate or rates of interest not to exceed 4.65 percent for a loan
with a
maturity of twenty years the actual rates of interest to be borne by
the Bonds
to be determined and established by the Mayor of The Town of Forest
Heights,
Maryland acting pursuant to Section 1(g) of this Resolution.
(e) The Bonds
shall be in substantially the
form set forth on Exhibit A attached hereto and made a part hereof,
which form,
together with all of the covenants and conditions therein contained, is
hereby
adopted by the Issuer as and for the form of obligation to be incurred
by the
Issuer and such covenants and conditions are hereby made binding upon
the
Issuer, including the promise to pay therein contained.
(f)
The Bonds are to be issued in
connection with the Program to finance a portion of the Project and to
pay
costs of issuance, bond insurance premiums and other related costs. Under the Program, the Issuer will enter into
a Repayment Agreement and a Pledge Agreement with the Administration
(respectively, the “Repayment Agreement” and the “Pledge Agreement”). The Issuer also will execute and deliver in
connection with the issuance of the Bonds and the Program any
additional
documents, agreements, instruments and certificates requested by the
Administration (which, together with the Repayment Agreement and the
Pledge
Agreement are herein referred to as the “Program Documents”). The Program Documents shall be in such form
and shall contain such terms and conditions as shall be approved by the
Mayor
of The Town of Forest Heights, Maryland and acceptable to the
Administration.
(g) Because
this Resolution is being adopted
before the details of the Administration Financing which is funding the
Loan to
be made by the Administration to the Issuer under the Program have been
finalized, the Mayor of The Town of Forest Heights, Maryland is hereby
authorized to make such changes to the amount and form of the Bonds,
including
insertions therein or additions or deletions thereto, as may be
necessary or
appropriate to conform the terms of the Bonds to the terms of the
financing to
be provided to the Issuer under the Program. Without limiting the
foregoing, it
is presently contemplated that the Loan will be in an amount not to
exceed $2,000,000
in aggregate principal amount hereby authorized, subject to final
approval by
the Administration; accordingly, the Mayor of The Town of Forest
Heights,
Maryland is specifically authorized: (i) to make changes to the
principal
amount of the Bonds in order to reflect the final principal of the Loan
not to
exceed $2,000,000 as approved by the Administration and accepted by the
Issuer,
(ii) to authorize and approve an interest rate or rates and payment
schedule
reflecting the principal and interest payments with respect to the
Bonds but
not to exceed the maximum rate of interest to be borne by the Bonds as
set
forth in subsection (d) above.
(h) This
borrowing is in conformance with
and does not exceed any and all applicable debt limitations under
Section 33-59
of the Charter.
Section
2. Execution.
The Bonds and the Program Documents shall be
executed on behalf of the Issuer by the manual or facsimile signature
of the Mayor
of The Town of Forest Heights, Maryland, and the seal of the Issuer
shall be
affixed thereto or reproduced thereon and attested by the manual
signature of
the Town Clerk of the Issuer. In the
event any official whose signature appears on any of the Bonds or the
Program
Documents shall cease to be an official prior to the delivery of the
Bonds or
the Program Documents, or, in the event any official whose signature
appears on
any of the Bonds or the Program Documents becomes an officer after the
date of
the issue, the Bonds or Program Documents shall nevertheless be valid
and
binding obligations of the Issuer in accordance with their terms. The Mayor of the Issuer is hereby authorized,
empowered and directed to complete the applicable form of the Bonds or
the
Program Documents and to make modifications, deletions, corrections or
other
changes thereto in any manner which the Mayor, in the Mayor’s
discretion, shall
deem necessary or appropriate to complete the issuance and sale of the
Bonds
and the execution and delivery of the Program Documents, as will not
alter the
substance thereof. The execution of the
Bonds and the Program Documents by the Mayor shall be conclusive
evidence of
the Mayor’s approval of the form and substance thereof.
Section
3. Registration
of Bonds.
The Mayor shall act as registrar for the
Bonds and shall maintain registration books for the registration and
registration of transfer of the Bonds.
No security or bond shall be required of the Mayor in the
performance of
the duties of registrar for the Bonds.
The Issuer
may deem and
treat the person in whose name any Bond shall be registered upon the
books of
the Issuer as the absolute owner of such Bond, whether such Bond shall
be
overdue or not, for the purpose of receiving payment of, or on account
of, the
principal, premium, if any, of and interest on such Bond and for all
other
purposes.
Section
4.
Prepayment.
The Bonds are being issued in connection with
the Program and will secure payment of the Administration’s Bonds,
which are
being issued by the Administration to provide funds to purchase the
Bonds from
the Issuer. The Repayment Agreement
limits the right of the Issuer to prepay the Bonds in accordance with
restrictions upon the right of the Administration to redeem the
Administration’s
Bonds. Accordingly, the Issuer may
prepay the Bonds only in accordance with the provisions of the
Repayment
Agreement and the terms governing prepayments as set forth in the Bonds.
Section
5.
Replacement of Mutilated, Lost, Stolen, or Destroyed Bonds.
In case any Bond (a “Bond” being,
for purposes of this
Section, any one of the Bonds) shall become mutilated or be destroyed,
lost or
stolen, the Issuer may cause to be executed and delivered a new Bond of
like
date and tenor and bearing the same or a different number, in exchange
and
substitution for each Bond mutilated, destroyed, lost or stolen, upon
the owner
paying the reasonable expenses and charges of the Issuer in connection
therewith and, in the case of any Bond being destroyed, lost or stolen,
upon
the owner filing with the Issuer evidence satisfactory to it that such
Bond was
destroyed, lost or stolen, and furnishing the Issuer with indemnity
satisfactory to it. Any Bond so issued
in substitution for a Bond so mutilated, destroyed, lost or stolen: (i)
may be
typewritten, printed or otherwise reproduced in a manner acceptable to
the
Administration, and (ii) shall constitute an original contractual
obligation on
the part of the Issuer under this Resolution whether or not the Bond in
exchange
for which said new Bond is issued shall at any later date be presented
for
payment and such payment shall be enforceable by anyone, and any such
new Bond
shall be equally and proportionately entitled to the benefits of this
Resolution with all other like Bonds, in the manner and to the extent
provided
herein.
Section
6. Use of
Proceeds. The proceeds
of the
Bonds shall be held and invested by the Administration in its sole
discretion
and shall be:
(a) Administered
and disbursed by the
Administration pursuant to the Repayment Agreement.
The proceeds of the Bonds shall be used, when
and as required, to pay Development Costs (as defined in the Repayment
Agreement).
(b) After the
Project has been completed and
all Development Costs in connection therewith have been paid, any
balance of
the proceeds of the sale of the Bonds held by the Administration under
the
Repayment Agreement may be applied to the next maturing principal
installment
or prepayment of the Bonds, as permitted by the Administration.
Section
7. Covenants. The Issuer
covenants
with the Administration and for the benefit of the owners from time to
time of
the Bonds, that so long as the bonds or installments of principal
thereunder
shall remain outstanding and unpaid:
(a) The Issuer
will duly and punctually pay,
or cause to be paid, to the Administration the principal of the Bonds,
premium
(if any) and interest accruing thereon, at the dates and places and in
the
manner mentioned in the Bonds from unlimited ad valorem taxes in the
event that
available funds are inadequate to make such payment.
(b) The Issuer
covenants that so long as any
of the Bonds are outstanding and not paid, unless other funds are
available for
payment of principal of, premium, if any, and interest on the Bonds, it
shall
levy annually, in the manner prescribed by law, a tax on all real and
tangible
personal property within its corporate limits subject to assessment for
unlimited taxation, ad valorem taxes in rate and amount and sufficient,
to
provide for the payment of the principal of and interest on the Bonds
as the
same become due and payable; and in the event that the revenues
available from
the taxes so levied in any fiscal year shall prove inadequate for the
above
purposes, the Issuer shall levy additional taxes in the succeeding
fiscal year
to make up such deficiency; and the full faith and credit and the
unlimited
taxing power of the Issuer are hereby irrevocably pledged to the
punctual
payment of the principal of and interest on the Bonds as the same
become due.
(c) The Issuer
will promptly provide to the
Administration (or to any person designated by the Administration) all
financial information and operating data concerning the Issuer as may
be
required by the Administration in its discretion in order to comply
with the
requirements of Rule 15c2-12 of the United States Securities and
Exchange
Commission, as in effect from time to time, applicable to the
Administration’s
Bonds.
Section
8. Resolution a
Contract. The provisions
of this Resolution shall constitute a contract with the purchasers and
owners
from time to time of the Bonds, and this Resolution shall not be
repealed,
modified or altered in any manner materially adverse to the
Administration and
interests of such purchasers or owners while the Bonds or any portion
thereof
remain outstanding and unpaid without the consent of the owners of the
Bonds
and the Administration.
Section
9. Pledge of
Local Government Payments.
As contemplated and
authorized by Section 2-204(16)(iii) of Article 83B of the Maryland
Code, as
amended, the Issuer hereby pledges, assigns and grants a security
interest to
the Administration, its successors in trust and assigns, all right
title and
interest of the Issuer in and to the Local Government Payments (as
defined in
the Pledge Agreement), now or hereafter acquired, to secure payment of
the
principal of, premium, if any, and interest on the Bonds and any other
Local
Obligations (as defined in the Pledge Agreement) issued and to be
issued from
time to time by the Issuer under the Program, all as more fully set
forth and
provided in the Pledge Agreement.
Section
10. Purchase
Price of Bonds.
The Bonds shall be sold for cash in
accordance with the terms and provisions of this Resolution at par or
(if
discount is permitted by law) at such discount as is agreed with the
Administration in accordance with the terms and provisions of this
Resolution,
and as authorized by Section 2-204 (16)(ii) of Article 83B of the
Maryland
Code.
Section
11.
Section
12. Authority
to Take Action; Publication and Public Hearing.
(a) The
officer and employees of the Issuer
are hereby authorized and directed to do all acts and things required
of them
by the provisions of this Resolution, for the full, punctual and
complete
performance of all the terms, covenants and provisions of the Bonds,
the
program documents and this Resolution and to do and perform all acts
and to
execute, seal and deliver all documents or instruments or writing which
may be
necessary or desirable to carry out the full intent and purpose of this
Resolution and the Program Documents.
(b) As
required by Article 83B of Section
2-204(16)(iv)2 of the Maryland Code, prior to the issuance of the
Bonds, the
Issuer shall publish in a newspaper of general circulation in the
jurisdiction
of the Issuer a notice of the proposed issuance of the Bonds, which
notice
shall include the proposed amount of the issue, the nature of the
project to be
financed, the time and place of the public hearing, and the name and
address
of where written comments may be sent,
and the Issuer shall hold a public hearing on the proposed issuance of
the
Bonds. Such actions may be (or have
been) taken prior to or simultaneously with the adoption of this
Resolution.
Section
13. Tax Matters
(a) The Mayor
and Town Treasurer shall be
the officer of the Issuer responsible for the issuance of the Bonds
within the
meaning of the Arbitrage Regulations (defined herein).
The Mayor and Town Administrator shall also
be the officer of the Issuer responsible for the execution and delivery
(on the
date of issuance of the Bonds) of a certificate of the Issuer (the
‘Section 148
Certificate’) which complies with the requirements of Section 148 of
the
Internal Revenue Code of 1986, as amended (“Section 148”), and the
applicable
regulations thereunder (the “Arbitrage Regulations”), and such official
is
hereby directed to execute the Section 148 Certificate and to deliver
the same
to the Administration on the date of the issuance of the Bonds.
(b) The Issuer
shall set forth in the
Section 148 Certificate its reasonable expectations as to relevant
facts,
estimates and circumstances relating to the use of the proceeds of the
Bonds,
or of any monies, securities or other obligations to the credit of any
account
of the Issuer which may be deemed to be proceeds of the Bonds pursuant
to
Section 148 of the Arbitrage Regulations (collectively, “Bond
Proceeds”). The Issuer covenants that the
facts,
estimates and circumstances set forth in the Section 148 Certificate
will be
based on the Issuer’s reasonable expectations on the date of issuance
of the
Bonds and will be, to the best of the certifying officials knowledge,
true and
correct as of that date.
(c) The Issuer
covenants and agrees with
each of the holders of any of the Bonds that it will not make, or (to
the
extent that it exercises control or direction) permit to be made, any
use of
the Bond Proceeds which would cause the Bonds to be “arbitrage bonds”
within
the meaning of Section 148 and the regulations thereunder which are
applicable
to the Bonds on the date of issuance of the Bonds and which may
subsequently
lawfully be made applicable to the Bonds.
(d) The Issuer
further covenants that it
shall make such use of the proceeds of the Bonds, regulate the
investment of
the proceeds thereof; and take other and further actions as may be
required to
maintain the excludability from gross income for federal income tax
purposes of
interest on the Bonds. All officers,
employees and agents of the Issuer are hereby authorized and directed
to take
such actions, and to provide such certifications of facts and estimates
regarding the amount and use of the proceeds of the Bonds, as may be
necessary
or appropriate from time to time to comply with, or to evidence the
Issuer’s
compliance with, the covenants set forth in this Section.
(e) The Mayor
and Town Treasurer, on behalf
of the Issuer, may make such covenants or agreements in connection with
the
issuance of Bonds issued hereunder as shall be deemed advisable in
order to
assure the registered owners of such Bonds that interest thereon shall
be and
remain excludable from gross income for federal income tax purposes,
and such
covenants or agreements shall be binding on the Issuer so long as the
observance by the Issuer or any such covenants or agreements is
necessary in
connection with the maintenance of the exclusion of the interest on
such Bonds
from gross income for federal income tax purposes.
The foregoing covenants and agreements may
include such covenants or agreements on behalf of the Issuer regarding
compliance with the provisions of the Internal Revenue Code of 1986, as
amended,
as the Mayor and Town Treasurer shall deem advisable in order to assure
the
registered owners of such Bonds that the interest thereon shall be and
remain
excludable from gross income for federal income tax purposes, including
(without limitation) covenants or agreements relating to the investment
of the
proceeds of such Bonds, the payment of rebate (or payments in lieu of
rebate)
to the United States, limitations on the times within which, and the
purpose
for which, such proceeds may be expended, or the use of specified
procedures
for accounting for and segregating such proceeds.
Section
14. Effective
Date; Miscellaneous.
(a) This
Resolution shall take effect from
the date of its adoption, and it is the intent hereof that the laws of
the
State of
ADOPTED
THIS ________ DAY OF __________, 2004 BY TOWN COUNCIL OF THE TOWN OF
___________________________
Mayor
___________________________
Council Member
___________________________
Council Member
___________________________
Council Member
___________________________
Council Member
___________________________
Council Member
___________________________
Council Member
APPROVED THIS _____ DAY OF
__________, 2004
ATTEST:
_______________________________________
Town Clerk
EXHIBIT A
State
of
The
Town of
Infrastructure
Bond, [2004 SERIES ___]
No.
R-1
$2,000,000
The
Town of Forest Heights, Maryland, a Municipal Corporation duly
organized and
existing under the Constitution and laws of the State of Maryland (the
“Issuer”), hereby promises to pay to the
Or its
registered assigns, the principal amount
of [___________________________][Two Million] Dollars
($[______________________2,000,000]),
plus interest on each unpaid principal installment at the rates per
annum set
forth under the column designated “Coupon” on Exhibit A1 attached
hereto for
each principal installment, in lawful money of the United States of
America, as
follows: (a) interest on the outstanding and unpaid principal of this
bond
shall be due and payable in semiannual payments commencing on
__________, 200_,
and continuing on the first day of [November] and [May] in each year
thereafter
until final maturity; (b) principal of this bond shall be paid
commencing on
_________ and on [May] 1 in each year thereafter until final maturity
in the
aggregate amount of principal installments as set forth on Exhibit A2. Payment of the principal hereof and the
interest due hereon shall be made by check mailed to the address of the
registered owner of this bond as shown on the registration books
maintained by
the Issuer, or in such other manner and to such other address as the
registered
owner of this bond may designate. If any
payment of the principal of or interest on this Bond shall be due on a
day
other than a Business Day (defined herein), such payment shall be made
on the
next Business Day with like effect as if made on the originally
scheduled
date. A “Business Day” is any day other
than a Saturday or legal holiday in the State of
In
the event any payment hereon (whether principal, interest or both) is
not paid
when due and payable, such payment shall continue as an obligation of
the
Issuer and shall bear interest until paid at the rate of interest borne
by this
bond.
This
bond, designated as “TOWN OF FOREST HEIGHTS Infrastructure Bond, 2004
SERIES _”
(the “Bond”), is a general obligation of the Issuer, and has been duly
issued
by the Issuer for the purpose of providing [a portion of the] funds
necessary
for the following projects: road repair
and reconstruction and paying the costs of issuing the Bond and the
payment of
issuance costs, bond insurance premiums and other related costs. Unless paid from other sources, the Issuer
covenants that so long as any portion of this bond is outstanding and
not paid,
it shall levy annually, in the manner prescribed by law, a tax on all
real and
tangible personal property within its corporate limits subject to
assessment
for unlimited taxation, ad valorem taxes in rate and amount and
sufficient, to provide
for the payment of the principal of and interest on this Bond as the
same
become due and payable.
This
Bond is issued pursuant to the authority of Section 2-204(16) (iv) of
Article
83B of the Annotated Code of Maryland, as amended, and a Resolution of
the
Issuer adopted on _________, 200_ (the “Resolution”).
The full faith and credit of the Issuer are
hereby irrevocably pledged to the payment of the principal of the Bond
and the
interest to accrue hereon.
This
Bond is issued in connection with the Infrastructure Financing Program
of the
Community Development Administration, an agency in the Division of
Development
Finance of the Department of Housing and Community Development, a
principal
department of the government of the State of
This Bond is
not subject to prepayment by the
Issuer prior to [May] 1, 20____. On or
after _____________, this Bond is subject to prepayment by the Issuer
at the
prepayment prices, expressed as a percentage of the principal amount to
be
prepaid, plus accrued interest, if any, to the prepayment date, on the
principal
amount thereof, and during the periods (both dates inclusive) listed
below:
Period
Price
_________
through ___________
%
_________
through ___________
_________
through thereafter
Notice
of prepayment shall be given, the date of prepayment determined, and
all
prepayments of this Bond shall be applied in accordance with the
provision of
the Repayment Agreement.
The
Issuer may treat the person in whose name this Bond is registered as
the
absolute owner hereof, whether or not this Bond shall be overdue, for
the
purpose of receiving payment thereof and for all other purposes
whatsoever, and
shall not be affected by any notice to the contrary, except as provided
below.
This
Bond is assignable and upon such assignment the assignor shall promptly
notify
the Issuer by certified mail, and the assignee shall surrender this
Bond to the
Issuer for transfer on the registration records and verification of the
portion
of the principal amount hereof and interest hereon paid or unpaid, and
every such
assignee shall take this Bond subject to such condition.
In connection with any transfer of this Bond,
the Issuer may make a charge sufficient to reimburse it for any tax, or
other
governmental charge required to be paid with respect to such transfer
and any
reasonable fees or expenses of the Issuer incurred in connection with
such
transfer.
Principal
of this Bond is paid in annual installments and this Bond is subject to
partial
redemption without any notation of such payment being made on this Bond
or the
surrender of this Bond for cancellation and the issuance of a new Bond
or Bonds
in the amount of the unpaid principal hereof.
Accordingly, the outstanding principal of this Bond may be less
than the
stated face amount hereof and any purchaser or transferee of this Bond
should
contact the Issuer and the prior owner of this Bond to ascertain the
outstanding face amount hereof.
As
declared by Section 2-204(16)(vi) of Article 83B of the Annotated Code
of
Maryland, as amended, this Bond shall have and possess all the
attributes of
negotiated instruments as provided in Article 31,§8 of the Annotated
Code of
Maryland, as amended. This Bond is
issued with the intent that the laws of the State of
No
recourse shall be had for the payment of the principal of, the interest
on, or
for any claim based hereon or on the Resolution against any elected or
appointed official or employee, past, present or future of the Issuer
or any
agency thereof; and any such recourse, claim or liability is expressly
waived
by acceptance by the owner of the delivery of this Bond.
It
is hereby certified and recited that each and every act, condition and
thing
required to exist, to be done, to have happened and to be performed
precedent
to and in the issuance of this Bond does exist, has been done, has
happened and
has been performed in full and strict compliance with the Constitution
and laws
of the State of Maryland, the Charter of the Issuer and the proceedings
of the
Issuer.
IN
WITNESS WHEREOF, the Town of Forest Heights, Maryland has caused this
Bond to
be signed in its name by the manual or facsimile signature of its
Mayor, its
corporate seal to be affixed hereto and attested by the manual
signature of the
Town Clerk, as of this ____________, 200_.
ATTEST:
The
Town of
______________________________
By:
__________________________
Town
Clerk
Mayor
Certificate
of
Authentication
Date
of Authentication:___________________, 2004
This bond is one of the bonds of
designated [SERIES 200_ _] and issued under the provisions of the
within-mentioned Resolution].
The
Town of
__________________________________
By:
Paula
R. Noble
Mayor
ASSIGNMENT
FOR
VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto
______________________________________________________________
(Include Social Security or Other Identifying Number of Assignee)
______________________________________________________________
______________________________________________________________
______________________________________________________________
(Name and
Address
including Postal Zip Code of Assignee)
the within
bond and all rights thereunder, and
hereby irrevocably constitutes and appoints
__________________________________________ attorney to transfer the
within bond
on the books of the Issuer at the offices of the Issuer in [the]
_____________,
Maryland or at the offices of its designated agent, with full power of
substitution in the premises.
Date:
_______________
________________________________________________
NOTICE: The signature to this
assignment must
correspond
with the name as it appears upon the face
of
the within bond in every particular, without
alteration
or enlargement or any change whatever.
Signature
guaranteed by:
________________________________
(Bank,
Trust Company or Firm)
_____________________________
(Authorized
Signature)
EXHIBIT
A2
BOND PAYMENT
SCHEDULE
[Use the
following paragraph (with necessary
modifications) to clarify the amount to be paid under the schedule
prepared by
the Financial Advisor.
[Repayment
Schedule to
be Inserted.]
Each
installment of
Principal and Interest or Interest alone shall be the aggregate of
amounts set
forth in this Exhibit A for the date of such payment as shown under the
heading
designated “Debt Service.”