Tab 21 Specimen BondUNITED STATES OF AMERICA
STATE OF MONTANA
FLATHEAD COUNTY
CITY OF KALISPELL
SPECIAL IMPROVEMENT DISTRICT NO. 345 BOND
(DNRC WATER POLLUTION CONTROL STATE REVOLVING LON
SERIES 2014
No. R-1
FOR VALUE RECEIVED, THE CITY OF KALISPELL, MONTANX the "City"), a
duly organized municipal corporation and political sul�diviszou of -':, the State"of Montana,
acknowledges itself to be specially indebted and, for valu�,recei,&d, .hereby promises to pay to
the Department of Natural Resources and Conservation of'the„State bh£1Vlontiana (the "DNRC"),
or its registered assigns, solely from the Special Improvement Distrcf No. 345 Fund, the
principal sum equal to the sum of the amounts entered on Sch�'dule A attached hereto under
"Total Amount Advanced," with interest on each s'u'"ph amount fro`n the date such amount is
advanced hereunder at the rate of 2.00% ��per ar on `the unpaid balance until paid. In
addition, the City shall pay, solely from said Source, an Administrative Expense Surcharge and a
Loan Loss Reserve Surcharge on the-butstandi3n ,princip41r-"amount of this Bond at the rates of
seventy-five hundredths of one percent (0.75%) aad twenty-five hundredths of one percent
(0.25%), respectively, per annum r Interest and AdmQstrative Expense Surcharge and the Loan
Loss Reserve Surcharge shad be payable in semiannual installments payable on each January 1
and July 1 (each a "Loan 14epayrnent Date"),tieommencing July 1, 2014. Principal shall be
payable on the dates set'' rth inSchedif reto. Each installment shall be in the amount set
forth opposite its due d&e in Schedule B attached hereto under "Total Loan Payment." The
portion of each such payment consisting of principal, the portion consisting of interest, the
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portion consisting ofdmmistrativ.Expense Surcharge, and the portion consisting of Loan Loss
Surcharge shal Abe asset focheduleB hereto. Upon each disbursement of 2014 Loan
amounts, --to the City pursuant to`t' e Resolution described below, the DNRC shall enter (or cause
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to be :entered) the aitqunt advanced on Schedule A under "Advances" and the total amount
advanced undexF the Reolution (as hereinafter defined), including such disbursement, under
"Total'AiiourifAd anded." The DNRC shall prepare Schedule B and any revised Schedule B,
or cause Schedule ` and any revised Schedule B to be prepared, as provided in Section 5.1 of the
Resolutio,dule B shall be calculated and recalculated on a level debt service basis
assuming an interest rate of 3.00% per annum. Past -due payments of principal and interest and
Administrative Expense Surcharge and the Loan Loss Reserve Surcharge shall bear interest at
the rate of ten percent (10.00%) per annum, until paid. Interest and Administrative Expense
Surcharge and Loan Loss Reserve Surcharge shall be calculated on the basis of a 360-day year
comprising 12 months of 30 days each. All payments under this Bond shall be made to the
registered holder of this Bond, at its address as it appears on the Bond register, in lawful money
of the United States of America.
This Bond is the City's "Special Improvement District No. 345 Bond (DNRC Water
Pollution Control State Revolving Loan Program), Series 2014 (the "Series 2014 Bond"), issued
under Resolution No. 5659, adopted by the City Council of the City on February 3, 2014 (the
"Resolution"), to which Resolution, copies of which are on file with the City, reference is hereby
made for a description of the nature and extent of the security, the respective rights thereunder of
the Owners of the Series 2014 Bond and the City and the terms upon which the Series 2014
Bond are to be issued and delivered. Terms used with initial capital letters but not defined herein
have the meanings given them in the Resolution. The Series 2014 Bond is issued in the
maximum authorized principal amount of $242,000. The Series 2014 Bond is,
suable only as a
single, fully registered bond. The Series 2014 Bond is issued by the City for theme purpose of
financing or reimbursing the City for a portion of the cost of the acquisition and cowruction of
certain local improvements within Special Improvement District 10 4 theCty (the
"District"), thereby assisting activities in the public interest and fors then blic weareof the
City.
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The Series 2014 Bond is issued pursuant to and in full cbhphance wits the Constitution
and laws of the State of Montana, particularly Montana Code Afmotated, Tile 7, Chapter 12,
Parts 41 and 42, as amended (the "Act"), and pursuant to tl,", Resoluriop This Bond is payable
from the collection of a special tax or assessment levied upoi"W' I ;assess h e real property within
the boundaries of the District, in an aggregate„principal an ount"df not less than the aggregate
principal amount of the Series 2014 Bond to `be paid frorp, eclat assessments, except as such
amount may be reduced or increased in accordance with pions of Montana law and except
that the payment of principal of and interest--' the Series 2014 Bond due July 1, 2014 is from
other funds of the City. Such assessments constitute a Jien against the assessable real estate
within the District, and the Series2014 Bond are not,general obligations of the City. The City
has established in the District Funtl, and funded wrth.certam proceeds of the Series 2014 Bond, a
District Reserve Account (the "Reserve Accounf,'), from which moneys are to be applied to pay
principal of and interest on the Ser es2014 Bond in the event collections of special assessments
are insufficient therefor : ,There is�no obl1-gii" n for the City to replenish the Reserve Account if
funds are withdrawn'therefrom. .
,
Sl;
The City' hasa-80 validly established a Special Improvement District Revolving Fund (the
"Revolving Vu&17) to'ecure th t ayment of certain of its special improvement district bonds,
including��the Serf s'2014 Bond. The City has also agreed, to the extent permitted by the
Enabling Act, to issu6korders annually authorizing loans or advances from the Revolving Fund to
the District nnd, xyn ain6unts sufficient to make good any deficiency in the District Fund to pay
principal of or -11 intexest'on the Series 2014 Bond after depletion of the Reserve Account, to the
extent that funds are available in the Revolving Fund, and to provide funds for the Revolving
Fund by annually making a tax levy or loan from its general fund in an amount sufficient for that
purpose, subject to the limitation that no such tax levy or loan may in any year cause the balance
in the Revolving Fund to exceed five percent of the principal amount of the City's then
outstanding special improvement district bonds secured thereby and the durational limitations
specified in the Enabling Act.
The Series 2014 Bond is subject to mandatory redemption on any interest payment date
if, after paying all principal and interest then due on the Series 2014 Bond, there are funds to the
credit of the Special Improvement District No. 345 Fund of the City, from the prepayment of
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assessments levied in the District or from surplus proceeds of the Series 2014 Bond not required
to pay costs of the 2013 Project, for the redemption thereof, and in the manner provided for the
redemption of the same, as further provided in the Resolution. The Series 2014 Bond is subject
to redemption at the option of the City from other sources of funds available therefor on any
interest payment date, subject, however, to the terms and conditions specified in the Resolution.
The redemption price is equal to the principal amount of the Series 2014 Bond or portions
thereof to be redeemed plus interest accrued thereon to the date of redemption. Any prepayment
must be accompanied by payment of accrued Administrative Expense Surcharge and Loan Loss
Reserve Surcharge to the date of prepayment on the amount of principal prepaid. The date of
redemption shall be fixed by the City Finance Director, who shall give notice by"' �rst class mail,
postage prepaid, to the owner or owners of such Series 2014 Bond at their addresses, shown on
the bond register, of the Series 2014 Bond or portions thereof to be 3reftem cti�edate on
which payment will be made, which date shall not be less than thirty,(30) clays after theiate of
mailing of notice, on which date so fixed interest shall cease. Onie date so fid interest on the
Series 2014 Bond or portions thereof so redeemed shall cease toacrue�
The Series 2014 Bond has been designated by C
pursuant to Section 265 of the Internal Revenue Code of
If provision is made for the payment off,
in accordance with the Resolution, this Series '2(
under the Resolution, shall cease to be eniitif
thereafter be payable solely from the fugds prow
The City may deem and treat the per
registered as the absolute owner hereof, whether
purpose of receiving payment and -;-,for all other
any notice to the
Series:>2014 Bon
ty s "qualifled tax-exmpt obligations"
19ti8,s amended
of afind interest on this Series 2014 Bond
hshdll no longer be deemed outstanding
beWtsof the Resolution, and shall
» in .whose name this Series 2014 Bond is
his =series 2014 Bond is overdue or not, for the
urposes, and the City shall not be affected by
may be transferred as hereinafter provided.
IT IS HEREt�Y :CER.TYF�IED, RECITED, COVENANTED AND AGREED that all
things required to be dons :precedent .o the issuance of this Bond have been properly done,
happened and been peormed �n the -manner prescribed by the laws of the State of Montana and
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the resolutions =end ord#iances of tie City relating to the issuance thereof.
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IN WITNESS WHEREOF, the City of Kalispell, Montana, by its governing body, has
caused this Bond to be executed by the signatures of the Mayor, the City Manager and the City
Finance Director, and has caused this Bond to be dated as of the 15th day of May, 2014.
CITY OF KALISPELL, MONTANA
rd
REGISTRATION AND TRANSFER
This Bond shall be fully registered as to both principal and interest. No transfer of this
Bond shall be valid unless and until (1) the registered holder of the Bond, or his duly authorized
attorney or legal representative, executes the form of assignment appearing on this Bond, and
(2) the City Finance Director of the City, as bond registrar (the "Registrar"), has duly noted the
transfer on the Bond and recorded the transfer on the Registrar's registration books. The City
shall be entitled to deem and treat the person in whose name this Bond is registered as absolute
owner thereof for all purposes, notwithstanding any notice to the contrary. Payments on account
of the Bond shall be made only to the order of the registered holder thereof .rand all such
payments shall be valid and effectual to satisfy and discharge the City's liability upon the Bond
to the extent of the sum or sums so paid. ,� 4
REGISTER
The ownership of the unpaid Principal Balance
thereon is registered on the books of the City of Kalispel
holder appearing on the first page hereof or as last noted
Name
Date of Registration of Regi
May 15, 2014
THE FOLLOWING
REGISTRAR'OPOT
of
MT 5
aril the interest accruing
the name of the registered
Signature of
Finance Director
TO BE MADE ONLY BY THE BOND
ON OF EACH TRANSFER
The City'Finance Director of.the City of Kalispell, Montana, acting as Bond Registrar,
has transferred, on the books of Ihe==City, on the date last noted below, ownership of the principal
amount of and the accrued interest on this Bond to the new registered holder noted next to such
date, except�for amounts of principal and interest theretofore paid.
Name of New Signature of
Date of T?ansfer Registered Holder Bond Registrar
holder,
on this
FORM OF ASSIGNMENT
For value received, this Bond is hereby transferred and assigned by the undersigned
without recourse, to
day of
For:
(Authorized S
r
Date
SCHEDULE A
SCHEDULE OF AMOUNTS ADVANCED
Total Amount
Advances Advanced Notation Made By
ncn cinni n dmnAn nnn nn OnAn nnn nn
Date Principal Interest
SCHEDULE B
Administrative
Expense Surcharge
Loan Loss
Reserve
Surcharge
Total Loan
Payment
SRF-14352
Preliminary Schedule
STATE OF MONTANA
GENERAL OBLIGATION BONDS
WASTEWATER
(REVOLVING FUND PROGRAM)
BORROWER: Kalispell -Willows SID
PROJECT NAME: FINAL LOAN PAYMENT: 7/1/2029
LOAN COMMITMENT: $242,000 # OF LOAN PAYMENTS: 31
LOAN AMOUNT: 242,000 PROJECT NUMBER:
INTEREST RATE: 3.00% DATE OF FUNDING: 5/15/2014
PAYMENT
LOAN LOSS
ADM EXPENSE
INTEREST
PRINCIPAL
O/S LOAN
TOTAL AMOUNT
DUE
RESERVE
SURCHARGE
PAYMENT
PAYMENT
BALANCE,
OF PAYMENT
1
7/1/2014
77.31
231.92
618.44
1,000.00
241,000.00
$1,927.67
$1,927.67
2
I/l/2015
301.25
903.75
2,410.00
7,000.00
234,000.00
$10,615.00
$12,542.67
3
7/1/2015
292.50
877.50
2,340.00
7,000.00
227,000.00
$10,510.00
4
1/l/2016
283.75
851.25
2,270.00
7,000.00
220,000.00
$10,405.00
$20,915.00
5
7/1/2016
275.00
825.00
2,200.00
7,000.00
213,000.00
$10,300.00
6
1/1/2017
266.25
798.75
2,130.00
7,000.00
206,000.00
$10,195.00
$20,495.00
7
7/1/2017
257.50
772.50
2,060.00
7,000.00
199,000.00
$10,090.00
8
1/1/2018
248.75
746.25
1,990.00
7,000.00
192,000.00
$9,985.00
$20,075.00
9
7/1/2018
240.00
720.00
1,920.00
7,000.00
185,000.00
$9,880.00
10
I/l/2019
231.25
693.75
1,850.00
7,000.00
178,000.00
$9,775.00
$19,655.00
11
7/1/2019
222.50
667.50
1,780.00
7,000.00
171,000.00
$9,670.00
12
1/l/2020
213.75
641.25
1,710.00
7,000.00
164,000.00
$9,565.00
$19,235.00
13
7/1/2020
205.00
615.00
1,640.00
8,000.00
156,000.00
$10,460.00
14
1/l/2021
195.00
585.00
1,560.00
8,000.00
148,000.00
$10,340.00
$20,800.00
15
7/1/2021
185.00
555.00
1,480.00
8,000.00
140,000.00
$10,220.00
16
I/1/2022
175.00
525.00
1,400,00
8,000.00
132,000.00
$10,100.00
$20,320.00
17
7/1/2022
165.00
495.00
1,320.00
8,000.00
124,000.00
$9,980.00
18
I/l/2023
155.00
465.00
1,240.00
8,000.00
116,000.00
$9,860.00
$19,840.00
19
7/1/2023
145.00
435.00
1,160.00
8,000.00
108,000.00
$9,740.00
20
I/1/2024
135.00
405.00
1,080.00
8,000.00
100,000.00
$9,620.00
$19,360.00
21
7/1/2024
125.00
375.00
1,000.00
8,000.00
92,000.00
$9,500.00
22
1/1/2025
115.00
345.00
920.00
9,000.00
83,000.00
$10,380.00
$19,880.00
23
7/1/2025
103.75
311.25
830.00
9,000.00
74,000.00
$10,245.00
24
I/l/2026
92.50
277.50
740.00
9,000.00
65,000.00
$10,110.00
$20,355.00
25
7/1/2026
81.25
243.75
650.00
9,000.00
56,000.00
$9,975.00
26
1/l/2027
70.00
210.00
560.00
9,000.00
47,000.00
$9,840.00
$19,815.00
27
7/1/2027
58.75
176.25
470.00
9,000.00
38,000.00
$9,705.00
28
I/1/2028
47.50
142.50
380.00
9,000.00
29,000.00
$9,570.00
$19,275.00
29
7/1/2028
36.25
108.75
290.00
9,000.00
20,000.00
$9,435.00
30
1/1/2029
25.00
75.00
200.00
10,000.00
10,000.00
$10,300.00
$19,735.00
31
7/1/2029
12.50
37.50
100.00
10,000.00
0.00
$10,150.00
$10,150.00
5,037.31
15,111.92
40,298.44
242,000.00
302,447.67
302447.6667
302,447.67
Div by 87
Div by 87
$2,781.61
$3,476.41