Tab 28 Specimen BondUNITED STATES OF AMERICA
STATE OF MONTANA
COUNTY OF FLATHEAD
CITY OF KALISPELL
No. R-
Rate
REGISTERED
PRINCIPAL A:
DOLLARS
FOR VALUE RECEIVED, the City off " spell, Flathea
' nty, Montana, will pay to the registered owner
identified above, or registered assigns, on the minty date speced
above the principal amount specified above, solely
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from the revenues hereinafter specified, as auth zed by Resolu
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V EIRI,
n No. 4622 adopted June 4 2001(the "Resolution"),
all subject to the provisions hereinafter describe relating to
ga
th 1 "- demption of this Bond before maturity. This Bond
bears interest at the rate per annum specified abozom the
ce of registration of this Bond, as expressed herein, or
from such later date to which interest herbon has beeff -p
u my provided for, until the maturity date specified above
or an earlier date on which this Bond 1. havq een duly called
42�
for redemption by the City Finance Officer. Interest
on this Bond is payable semiannual y'- mme O10 ng Jany, 1,
2002, on the first day of January and the first day of July
r AE ;d
in each year, to the owner of record ais Bind app ng
as such in the bond register as of the close of business on
bness da :�� of the
the I Sth day whether or not such isFF V'
immediately recedin month. Interest on and upon
y preceding p
presentation and surrender here.e op center of the
bond registrar and paying agent hereinafter named, the
principal of this Bond are pale b ° heck or d of U.S.
Bank Trust National Association MT, as Bond Registrar,
Transfer Agent and Paym ent, a,� operations center in
St. Paul, Minnesota, or its successor designated under the
Resolution (the "Registr �yrN They -116 aI of and interest
p
on this Bond are payable in lawful money of the United
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States of America.
Noty
& Co., as nomit
Company or oth
all notices with
arrangements of
ime of Cede
)sitory Trust
ad shall give
operational
This Bond is one of an issue in the aggregate principal amount of $1,581,500 (the "Bonds"), all of like date
of original issue and tenor, except as to serial number, denomination, date, interest rate and maturity date. The Bonds
are issued pursuant to and in full conformity with the Constitution and laws of the State of Montana thereunto enabling,
including Montana Code Annotated, Title 7, Chapter 12, Parts 41 and 42, as amended (the "Act"), to finance the costs
of certain local improvements (the "Improvements") for the special benefit of property located in Special Improvement
District No. 343 of the City (the "District"). The Bonds are issuable only as fully registered bonds of single maturities
in denominations of $5,000 or any integral multiple thereof, except that the Band with a stated maturity in 2002 shall
be in the principal amount of $6,500.
This Bond is payable from the collection of a special tax or assessment levied upon all assessable real
property within the boundaries of the District, in an aggregate principal amount of not less than $1,581,500, except as
such amount may be reduced or increased in accordance with provisions of Montana law. ch assessments constitute
a lien against the assessable real estate within the District and are to be deposited into the She''xnprovement District
No. 343 Fund of the City (the District Fund"). The City has established in the District Fund di,01,145unded with certain
" Account"), from. which ���
proceeds of the Bonds, a District Reserve Account the Reserve � � 4ey be applied tv
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pay principal of and interest on the Bonds in the event collections of special assessrr"rsutherefor. There
is no obligation for the City to replenish the Reserve Account if funds are withdra*WWefrom. The Bonds are not
general obligations of the City.AS
;
The City has also validly established a Special Improvement Dis#=t Revoh Fund the "Revolving Fund"
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to secure the payment of certain of its special improvement district boxy incl ng the hods. The City has also
agreed, to the extent permitted by the Act, to issue orders annually author r: ns or advances from the Revolving
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Fund to the District sufficient to make good any yw pay principal Fund in amounts su ,. ic�enc � ^the D i ct Fund to a rinci al of
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or interest on the Bonds after depletion of the Reserve Account, to the that f--------
ire available in the Revolving
Fund, and to provide funds for the Revolving Fund by annually makifta r"Y or oan from its general fund in an
amount sufficient for that p u rpose subJject to the limitation that no suc "xy:. r loan may in any year cause the
01
balance in the Revolving Fund to exceed five percent of thq rincipal an €�� nt of the City s then outstanding special
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r and the duratioM` `M` " "'`' ied in the Act. while an roe tax
improvement district bonds secured thereby � � ��x�p�� y property rty
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levy to be made by the City to provide funds for the Revolving P^subje"i levy limits under current law, the City
has agreed in the Resolution to levy property taxes to prde funds the Revolving Fund to the extent described in
this paragraph and, if necessary, to reduce other property tam es corm bndingly to meet applicable levy limits.
The Bonds are subject to mandato���e ' emption in ord f stated maturities and within a stated maturity
in $5,000 principal amounts selected by lot or manner defied fair by the Registrar, except that the Bond with a
4ES �.
stated maturity in 2002 and in the principal ari unt of $6,5OO all be redeemed before other Bonds of such stated
maturity, on any interest payment date if, after ` yng all princi l and interest then due on the Bonds, there are funds
to the credit of the District Fund, from th pprepay t t: of as rnents levied in the District or from surplus proceeds
of the Bonds not required to pay costs of Improve°a'r the redemption thereof, and in the manner provided for
the redemption of the same. The BondUlare sub ct to redemption at the option of the City from other sources of funds
available therefor on any interest pay:ent datrovide k.�however, that the City hereby agrees not to redeem the Bonds
_ 0
from i amounts on deposit in th` `W esery Account the District Fund or (ii) the proceeds of refunding special
�I 006. 'I` redem tion rice is equal to the principal amount of the Bonds
improvement district bonds prior to Ju ..5, ,
1 y�- p p q p p
ter- -:
or portions thereof to be redee inter' � c . thereon to the date of redemption. The date of redemption and
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principal amount shall be fixry th ity Fins' Officer, who shall give notice thereof to the Registrar in sufficient
time for the Registrar to i�notice, first class mail, postage prepaid, or by other means required by the securities
depository, to the ownerowner�f' such Bonds at their addresses shown on the bond register, of the Bonds or
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portions thereof to be redee. . . . . . . . .
.....
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rthe date on which payment will be made, which date shall not be less than thirty
(30) days after the da e:vof mailzhg ►Y notice, on which date so fixed interest shall cease. On the date so fixed interest
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on the Bonds or poshereof so redrned shall cease to accrue. Upon partial redemption of any Bond, a new Bond
eliverevhe or Bonds will bd a register.10
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ed owner without charge, representing the remaining principal amount
u:.
,
outstanding.
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The Bonds haven designated by the City as "qualified tax-exempt obligations" pursuant to Section
265 of the Internal ReverN Je of 1986, as amended.
As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable
upon the books of the City at the operations center of the Registrar, by the registered owner hereof in person or by his
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attorney duly authorized in writing upon surrender hereof together with a written instrument of transfer satisfactory to
the Registrar, duly executed by the registered owner or his attorney; and may also be surrendered in exchange for Bonds
of other authorized denominations. Upon such transfer or exchange, the City will cause a new Bond or Bonds to be
issued in the name of the transferee or registered owner, of the same aggregate principal amount, bearing interest at the
same rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental charge required
to be paid with respect to such transfer or exchange.
The City and the Registrar may deem and treat the person in whose name thi llf it and is registered as the
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absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving pates and for all other
N i apurposes and neither the Citynor the Registrar shall be affected b an notice to the contr
g y y
IT IS HEREBY CERTIFIED, RECITED, COVENANTED A
be done precedent to the issuance of this Bond have been properly done, hap]
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prescribed by the laws of the State of Montana and the resolutions and ord
relating to the issuance thereof; and that the opinion attached hereto is a`
Counsel with reference to the Bonds, dated the date of original issuancwd
This Bond shall not be valid or become obligatory for ai
under the Resolution until the Certificate of Authentication and Re
Registrar by the manual signature of one of its authorized representa
ND ARD that all things required to
)ed and base erformed in the manner
apices of�the Cif Kalispell, Montana,
' 441
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copy e legal opinion given by Bond
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de1t', �ry of th fonds.
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s Abe entffld to any security or b ene fit
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i her8i�Wl have been executed by the
IN WITNESS WHEREOF, the City of Kalil `:F�athead""_�unty,blontana, by its City Council, has
1 ���
caused this Bond to be executed by the facsimile signatures1��_
fiy'moCibr anager and the Finance Officer, and
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by a facsimile of the official seal of the City.
fir,-�.,::-.-,.
mgg
Mayor
(Facsimile Se4,
Dated:
W
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City Manager
inanc e Officer
NTICATION
resolution mentioned within.
A,NK TRUST NATIONAL ASSOCIATION MT,
and Registrar, Transfer Agent, and Paying Agent
Authorized Signature
The following abbreviations, when used in the inscription on the face of this Bond, shall be construed as
though they were written out in full according to applicable laws or regulations:
TEN COM --- as tenants UTMA ........ Custodian..... .
in common (Cust) (Minor)
TEN ENT --
JT TEN ---
as tenants
by the entireties
as j oint tenants
with right of
survivorship and
not as tenants in
common
under Uniform Transfers
to Minors Act .........
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S tate) 1
Additional abbreviations may also,
ASSIGNMENT
FOR. VALUE RECEIVED the undersigned h
the withitiBnd a
V LJ 11S.7 .L LL.14V1.7 i+411 L1 f.S•.J 47 \J lA1 L.Li
transfer the within Bond on the books kept for registrati
Dated:
PLEASE INSERT SOCIAL SECURITY'
fig
OR OTHER IDENTIFYING NUMBER � „n„rc
OF ASSIGNEE: 1111-51
r
SIGNATURE GUARANTEED
Signature(s) must be guara.
"eligible guarantor institut
the requirements of the
which requirements includI
or participation in STAMP
�iy :.cam �✓a✓,:�:. AF:'�`.3
"signature guarant"N'll
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determined by thond Rt
addition to or in _bstitut
all in accordance tithe
Exchange Act of 1934, as 2,
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mow..
assigns and transfers unto
} thereunder, and hereby irrevocably
attorney to
er of substitution in the premises.
�E: The signature to this assignment must
fond with the name as it appears upon the
the within Bond in every particular, without
ion, enlargement or any change whatsoever.
City of Kalis]
Kalispell, Mc
D.A. Davidsc
Great Falls, �
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Ladies and G
connection w
issued, as of,
taken, and cei
including a r(
Bonds (the I
and relied up
independent i
existing law,
1.
construction
for the costs
District. Thi
assessments
Improvement
payable solel;
"City"), in
J
as originally
proceedings
)f the Bonds,
terms of the
ithenticity of
the same by
i the basis of
sided for the
assessments
;s within the
the special
the Special
ie Bonds are
2. The City hlso vay established a Special Improvement
7 cam.
District Revolving Fund (the "Revolving
Fund") to secure the payme W. .tytaro of its special improvement
district bonds and warrants, including the Bonds.
The City has agreed,x._ ,wthe
rmitted by Montana Code
exti. -e.
Annotated Title 7 Chapter 12 Parts 41 and 42 as
>
amended and as a u €e
to the Ba {the "Act"),to issue orders
annuallyauthorizingloans or advances from the
Revolving Fund the D ist andn amounts sufficient to make
.
good any deficiency the District Fund to pay
principal of or in est o h Bon:to the extent that funds are available in the Revolving Fund, and to provide funds
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for the Revolvin �; �v� "`y annu making a tax levy or loan from
its general fund in an amount sufficient for that
purpose, subject to the limitatiohat no such tax levy or loan may
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in an year cause the balance in the Revolving Fund
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to exceed five percent of,'I cipal amount of the City's then
outstanding special improvement district bonds and
warrants secured thereby and subject to the durational limitations specified in the Act.
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Any property tax levy to be made by the City to provide funds for the Revolving Fund is subject to levy
limits under current law. The City has agreed in the Bond Resolution to levy property taxes to provide funds for the
Revolving Fund to the extent described in the immediately preceding paragraph and, if necessary, to reduce other
property tax levies correspondingly to meet applicable levy limits.
The Bonds are not general obligations of the City and, except to the extent described in this paragraph (2),
the taxing power of the City is not pledged to the payment of the principal thereof or thterest thereon.
3. The Bonds and the Bond Resolution are valid and binding special, limited' . 4ions of the City
enforceable in accordance with their terms and the provisions of the Constitution and laws of thet ontana now
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in farce, including the Act.
FNf-w
4. Interest on the Bonds: (a) is not includable in gross income fN'Z_11411
Bederal inc Jax purposes; (b) is not
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an item of tax preference includable in alternative xninhnum taxable incoxfor poses the federal alternative
minimum tax applicable to all taxpayers; and (c) is includable in adjusted cu nt earn s of corporations in determining
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alternative minimum taxable income for purposes of the federal alternatV,e�mi.n.i.m-n tax.-<M-0 F
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5. The City has designated the Bonds as "qualified tax-e pt obtW d us "A thin the meaning of Section
777N,7N
265(b)(3) of the Internal Revenue Code of 1986 as amended (the an" - ial institutions described in
-
Section 265 b 5 of the Code may treat the Bonds for purposes of Seons b 2 and 291 e 1 B of the Code
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as if they were acquired on August 7, 1986.
6. Interest on the Bonds is not includable in ""fate of Montana individual income tax
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purposes but is includable in the computation of income for pes o frtVlontana corporate income tax and the
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Montana corporate license tax. '~
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The opinions expressed in paragraphs 1,'2-?d 3 abasubject, as to enforceability, to the effect of any
state or federal laws relating to bankruptcy,insoJy V`reorganizar#moratorium or creditors' rights and principles
of equity, whether considered at law or in equit
The opinions expressed in paragrapfik4 and 5 abov&dre subject to the condition of the City's compliance
with all requirements of the Code that mint, be sied subse€ent to the issuance of the Bonds in order that interest
thereon may be, and continue to be, exc1d6d from gre for federal income tax purposes, and the Bonds be and
continue to be qualified tax-exem t obA�tions. 'he City has covenanted to comply with these continuing requirements.
p gat G
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Its failure to do so could result in tN01". ;.
`finterest.,on the Bonds in federal gross income, retroactive to the date
ar;•,<,a
of issuance of the Bonds. Except aed :this opinn, we express no opinion regarding federal, state or other tax
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consequences to the owners of the Bored'
s:
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We have not bee ftgage wand hav oc undertaken to review the accuracy, completeness or sufficiency
of the Official Statement or cMiy othez ffering materials relating to the Bonds and, accordingly, we express no opinion
RON JOIN
with respect thereto. ARN
Very truly yours,
AF
a ' DORSEY & WHITNEY LLP
P .., 125 Bank Street, Suite 600
Missoula, Montana 59802
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