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 of�vX. i 11,Flatheaff'
nty, Montana, will pay to the registered owner
identified above., or registered assigns, on the mat'drit—y date speca"fi
led above the principal amount specified above, solely
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from the revenues hereinafter specified, as authffized by Resolut,'
No. 4622 adopted June 4, 2 001 (the "Resolution"),
all subject to the provisions hereinafter describ'8�'�' lating to
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thq'11" demption of this Bond before maturity. This Bond
bears interest at the rate per annum specified ab6WIrom the.da""16
ofregistration of this Bond, as expressed herein, or
from such later date to which interest herbon has beeff���Wy
provided for, until the maturity date specified above
or an earlier date on which this Bond sIffil. havq-, een duly called
for redemption by the City Finance Officer. Interest
412 � 10 � �.
on this Bond is payable semiannual y,'- i mng Jany, 1,
nunen
2002, on the first day of January and the first day of July
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in each year, to the owner of record"t th- Bbhd appwing
as such in the bond register as of the close of business on
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the 15th day (whether or not such is"Ib'dWines dp# of the
immediately preceding month. Interest on and, upon
presentation and surrender here.6f'o" 0 0.1- s"center of the
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bond registrar and paying agent hereinafter named, the
principal of this Bond are P4` ble by"I"h ec r of U.S.
Bank Trust National Association MT, as Bond Registrar,
gent t
Transfer Agent and Paying'%Wl' a,� operations center in
St. Paul Minnesota or its successor designated under the
cipa
Resolution (the "Registr4d& The A-116 I of and interest
on this Bond are payable in lawful money of the United
States of America.
Notv
& Co., as nonift
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 denorninations of $5,000 or any integral multiple thereof, except that the Bond 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 S
Peftl_a, mprovement District
4
No. 343 Fund of the City (the "District Fund"). The City has established in the District Fund, di,01,145unded with certain
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proceeds of the Bonds, a District Reserve Account (the "Reserve Account"), from which ni S 06"'Ip be applied to
_p4ey
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erefor. There
pay principal of and interest on the Bonds in the event collections of special assessm."e,
is no obligation for the City to replenish the Reserve Account if funds are withdra*WWefrom. The Bonds are not
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general obligations of the City.
. . . . . . . . . . . ....
T h e C i ty h a s. a I s o v a I i d ly e s t ab I i s h e d a S p e c i a I I mp r o v e me n t D I! 'i. t""' t R e, V
g Fund (the "Revolving Fund")
AIM, ON 10
to secure the payment of certain of its special improvement district boiffiffi inchdffig the ds. The City has also
4RP, 1467-11 126
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agreed, to the extent permitted by the Act, to issue orders annually authorfzRh#`g'. Iikftis or advi nces from the Revolving
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FIIIIMI.
Fund to pay principal of
e c D19"Mct
Fund to the District Fund in amounts sufficient to make good any,.J'- fici
....... --------
.arm t e available in the Revolving
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or interest on the Bonds after depletion of the Reserve Account, to N'7'C",� ` ti
Fund, and to provide funds for the Revolving Fund by annually makifta t"' an from its general fund in an
loan may in any year cause the
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amount sufficient for that purpose, subject to the limitation that no suc,
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balance in the Revolving Fund to exceed five percent of thq rincipal anli%nt o e City"s then outstanding special
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& � y'; �,� - abn&
improvement district bonds secured thereby and the duratioffil".1, f . . . . . . . ....... .. in the Act. While any property tax
ffi- i's
levy to be made by the City to provide funds for the Revolving P" "11. vy limits under current law, the City
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`0 e Revolving Fund to the extent described in
has agreed in the Resolution to levy property taxes to pr: d.p,- f di
un sf,
this paragraph and, if necessary, to reduce other property s coif*bndingly to meet applicable levy limits.
The Bonds are subject to mandatol'T.."a -,-e"' emption in oed f stated maturities and within a stated maturity
in $5,000 principal amounts selected by lot or manner defted fair by the Registrar, except that the Bond with a
NEWS
stated maturity in 2002 and in the principal arW" nt of $6,5 all be redeemed before other Bonds of such stated
maturity, on any interest payment date if, after ng all pri cil-l".011 and interest then due on the Bonds, there are funds
. . .. rplus proceeds
to the credit of the District Fund, from thepprepa3'qnq§At,, of as ents levied in the District or from su
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of the Bonds not required to pay costs of Improvm. e redemption thereof, and in the manner provided for
the redemption of the same. The BondUlare sul?,fi`,ict to redemption at the option of the City from other sources of funds
available therefor on any interest pa)"ent date!,-, ovide�&however that the City hereby agrees not to redeem the Bonds
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from (i) amounts on deposit in th' serv, kccou t e District Fund or (ii) the proceeds of refunding special
improvement district bonds prior to Ju"iyiQ�6f"I '006. emption price is equal to the principal amount of the Bonds
II in erestac. thereon to the date of redemption. The date of redemption and
or portions thereof to be redeepa
fficer who shall give notice thereof to the Registrar in sufficient
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principal amount shall be fix&d� th"'..1C.- ty F
. . . . . . . . . . . � first class mail
time for the Registrar to g;'IV,`.'I.'e� notice,
postage prepaid, or by other means required by the securities
depository, to the owner wner'%::,..-- such Bonds at their addresses shown on the bond register, of the Bonds or
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. . . . . . . . . . .
..... .....
e date on which payment will be made, which date shall not be less than thirty
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portions thereof to be rede ,.d
..........
(30) days after the d4J,%,,. mal in
3mice, on which date so fixed interest shall cease. On the date so fixed interest
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so
on the Bonds or �Ihereof ed shall cease to accrue. Upon partial redemption of any Bond, a new Bond
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ed owner without charge, representing the remaining principal amount
or Bonds will bdll klivereds oll: g re ster
g
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outstanding.
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The Bonds have b ben designated by the City as "qualified tax-exempt obligations"' pursuant to Section
265 of the Internal Reve J e 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 llfilo d is registered as the
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absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payffloat and for all other
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purposes, and neither the City nor the Registrar shall be affected by any notice to the congg,
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 issuanc... ......... ........ ....... .......
This Bond shall not be valid or become obligatory for ai
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under the Resolution until the Certificate of Authentication and Re -
Registrar by the manual signature of one of its authorized representa
ND A GRE that all things required to
nm&
)khed and beel— formed in the manner
770
ances ofthe Cif9*10 alispell, Montana,
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copy of'�'-,",11441e legal opinion given by Bond
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d e I t', F z��`�`ry o f t h nds.
A-111 Affn
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Mfte entffl�d to any security or benefit
AMID'
i her8i�Wl have been executed by the
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IN WITNESS WHEREOF, the City of Kalisp#4�Aathead""G unty,'Montana, by its City Council, has
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s kt..'moCibr anager and the Finance Officer and
caused this Bond to be executed by the facsimile signature e �. X
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. . . . . . . . . . . . . . . ........... W'* 'VIS
by a facsimile of the official seal of the City.
-------------- - - - - - - - - - - - - - - - -
mgg
Mayor
(Facsimile Se4,
Dated:
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City Manager
I
'inance Officer
'NTICATION
tesolution 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 conunon (Cust) (Minor)
TEN ENT --
JT TEN --
as tenants
by the entireties
as j o int tenants
with right of
survivorship, and
not as tenants in
common
under Uniform Transfers
to Minors Act .........
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S t a t e)1,11
Additional abbreviations may also
ASSIGNMENT "s-Irl
FOR VALUE RECEIVED the undersigned h
the withiji d a
transfer the within Bond on the books kept for registrati
Dated:
PLEASE INSERT SOCIAL SECURITY
fig
OR OTHER IDENTIFYING NUMBER A
OF ASSIGNEE: 1111-51
SIGNATURE GUARANTEED
Signature(s) must be guara
"eligible guarantor instituti
the requirements of the
which requirements incl I
or participation in STAMP
signature guarant"N'll
s
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determined by th0l"ond Rt
I Affll�
addition to or ink stituat"
all in accordance UM
Exchange Act of 1934, as,2,
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assigns and transfers unto
ereunder, and hereby irrevocably
attorney to
er of substitution in the premises.
'.'.E: The signature to this assignment must
�ond 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, M(
D.A. Davids(
Great Falls, �
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Ladies and G
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connection w
issued, as of,
taken, and cei
including a r(
Bonds (the I
and relied up
independenti
existing law,
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construction
for the costs
District. Thi
assessments
Improvement
payable solel'.
"City"), in
as originally
proceedings
)f the Bonds,
terms of the
ithenticity of
the same by
i the basis of
�ided for the
assessments
,s within the
the special
the Special
ie Bonds are
2. The City h Iso valO established a Special Improvement
77 am�. y
District Revolving Fund (the "Revolving
........... V? i f its special improvement
Fund") to secure the payff-18if W.
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district bonds and warrants, including the Bonds.
The City has agreed tothe
ex e tted by Montana Code
t
Annotated, Title 7, Chapter 12, Parts 41 and 42, as
45!
amended and as ap Hb"a"'b"'Ie
to the Ofthe "Act"), to issue orders
annually authorizing loans or advances from the
lent to ma
Revolving Fundt R-N-- d in amounts suffic,
he Distd.0"t
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ke good any deficiency the District Fund to pay
principal of or inf&est on-,,,'� 'Bon to the extent that funds are available in the Revolving Fund, and to provide funds
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for the Revolvi k0by annualj� making a tax levy or loan from
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its general fund in an amount sufficient for that
purpose, subject to the limitatiql. no such tax levy or loan may
in any year cause the balance in the Revolving Fund
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 sub ect to levy
i
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 lirnits.
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 the �
est thereon.
3. The Bonds and the Bond Resolution are valid and binding special, limited' .4ions of the City
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enforceable in accordance with their terms and the provisions of the Constitution and laws of th ontana now
in force, including the Act.
4. Interest on the Bonds: (a) is not includable in gross income fo "Becieral incont-JeJax purposes; (b) is not
N'Z_11411
an item of tax preference includable in alternative 111infinum taxable incomlie' or oses Zffie federal alternative
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minimum tax applicable to all taxpayers; and (c) is includable in adjusted cuAlent eam- porations in determining
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in tax. -<M-0 F
alternative minimum taxable income for purposes of the federal alternatV, rrunimn
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5. The City has designated the Bonds as "qualified tax -ex§' t bt d -us Ad in the meaning of Section
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265(b)(3) of the Internal Revenue Code of 1986, as amended (thdWGW), an",� --- ial institutions described in
�g g�
d 29 1 (e)(1)(B) of the Code
CEO-, WIN
Section 265(b)(5) of the Code may treat the Bonds for purposes of S&tioffM5(b)( an
as if they were acquired on August 7, 1986.
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.,=1,%;*te of Montana individual income tax
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6. Interest on the Bonds is not includable in
M%
-M tana corporate income tax and the
oses, but is includable in the computation of income for on
purp
Montana corporate license tax.
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The opinions expressed in paragraphs I '2,-gand 3 ab6�_V61W-''ar_ subject, as to enforceability, to the effect of any
state or federal laws relating to bankruptcy, insot,.,,Y--',en�cy�'��'eorganiza 16-hil
# moratorium or creditors' rights and principles
of equity, whether considered at law or in equit
'y
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 must, be s subseq
vent to the issuance of the Bonds in order that interest
thereon may be, and continue to be, exc1d 6d fro for federal income tax purposes, and the Bonds be and
"kh" ionsJ-1 e City has covenanted to comply with these continuing requirements.
continue to be qualified tax-exempt obligat
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Its failure to do so could result in tN01". i'clusio "M'f interest. n the Bonds in federal gross income, retroactive to the date
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JWthis opiiMh we express no opinion reg
of issuance of the Bonds. Except arding federal, state or other tax
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consequences to the owners of the
. . . . . . . . . . . .
We have not beeiftftgag-, pnd a undertaken,, to review the accuracy, completeness or sufficiency
of the Official Statement or Miy othe z ring materials relating to the Bonds and, accordingly, we express no opinion
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with respect thereto. ARN
Very truly yours,
AF
DORSEY & WHITNEY LLP
�.w.., WIN 01 125 Bank Street, Suite 600
A Missoula, Montana 59802
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