Minutes-9/8/1999

UNITED STATES OF AMERICA STATE OF IOWA COUNTY OF JOHNSON CITY OF TIFFIN GENERAL OBLIGATION SEWER IMPROVEMENT BOND, SERIES 1999B No. R-1 RATE MATURITY DATE BOND DATE 3.92% June 1, 2019 ____________, 1999 The City of Tiffin (the "City"), in the County of Johnson, State of Iowa, for value received, promises to pay from the source and as hereinafter provided, on the maturity date of this Bond to IOWA FINANCE AUTHORITY or registered assigns, the principal sum of FIVE HUNDRED NINETY THOUSAND DOLLARS Interest at the rate specified above shall be payable semiannually on June 1 and December 1 of each year, commencing December 1, 1999, and principal shall be due and payable in installments in the amounts shown on the Principal Payment Schedule hereon on June 1, 2000, and annually thereafter on June 1 in each year until the principal and interest are fully paid, except that the final installments of the entire balance of principal and interest, if not sooner paid, shall become due and payable on June 1, 2019. Interest shall be computed on the basis of a 360-day year of twelve 30-day months. The City Clerk shall act as Registrar and Paying Agent and may be hereinafter referred to as the "Registrar" or the "Paying Agent". Payment of the principal of and interest on this Bond and premium, if any, shall be payable at the office of the Paying Agent by mailing of a check, wire transfer or automated Clearinghouse System transfer, to the registered owners thereof appearing on the registration books of the City at the addresses shown on such registration books. All such payments, except full redemption, shall be made to the registered owners appearing on the registration books at the close of business on the fifteenth day of the month next preceding the payment date. Final payment of principal shall only be made upon surrender of this Bond to the Paying Agent. This Bond is one of a series of General Obligation Sewer Improvement Bonds issued in the aggregate principal amount of $1,078,685 (the "Bonds") by the City to evidence its obligation under certain Loan and Disbursement Agreements, dated the date hereof (the "Agreements") entered into by the City for the purpose of providing funds to pay a portion of the cost of the construction of works and facilities useful for the collection, treatment and disposal of sewage and industrial wastes in a sanitary manner (the "Project"). The Bonds are issued pursuant to and in strict compliance with the provisions of Chapter 384 and Chapter 76 of the Code of Iowa, 1999, and all other laws amendatory thereof and supplemental thereto, and in conformity with a resolution of the City Council authorizing and approving the Agreements and providing for the issuance and securing the payment of the Bonds (the "Resolution"), and reference is hereby made to the Resolution and the Agreements for a more complete statement as to the source of payment of the Bonds and the rights of the owners of the Bonds. The Bonds are subject to optional redemption on any interest payment date, in whole, but not in part, in the event all or substantially all of the Project is damaged or destroyed, at a price of par plus accrued interest. Principal of the Bonds maturing on and prior to June 1, 2009, may be called for redemption by the City on any date and paid before maturity from any funds regardless of source with the consent of the Lender; and principal of the Bonds maturing after June 1, 2009, may be called for redemption by the City on June 1, 2009, or on any interest payment date thereafter, and paid before maturity from any funds regardless of source without the consent of the Lender. The Bonds may be so prepaid in whole or from time to time in part in inverse order of maturity and within an annual maturity by lot by giving 30 days notice of redemption by certified mail to the registered owners of the Bonds or portions thereof to be redeemed. The terms of redemption shall be par, plus accrued interest to date of call. The Bonds are also subject to redemption as set forth in Section 5 of the Agreements. This Bond is fully negotiable but shall be fully registered as to both principal and interest in the name of the owner on the books of the City in the office of the Registrar, after which no transfer shall be valid unless made on said books and then only upon presentation of this Bond to the Registrar, together with either a written instrument of transfer satisfactory to the Registrar or the assignment form hereon completed and duly executed by the registered owner or the duly authorized attorney for such registered owner. The City, the Registrar and the Paying Agent may deem and treat the registered owner hereof as the absolute owner for the purpose of receiving payment of or on account of principal hereof, premium, if any, and interest due hereon and for all other purposes, and the City, the Registrar and the Paying Agent shall not be affected by any notice to the contrary. And It Is Herby Certified and Recited that all acts, conditions and things required by the laws and Constitution of the State of Iowa, to exist, to be had, to be done or to be performed precedent to and in the issue of this Bond were and have been properly existent, had, done and performed in regular and due form and time; that provision has been made for the levy of a sufficient continuing annual tax on all the taxable property within the City for the payment of the principal of and interest on this Bond as the same will respectively become due; that the faith, credit, revenues and resources and all the real and personal property of the City are irrevocably pledged for the prompt payment hereof, both principal and interest; and that the total indebtedness of the City, including this Bond, does not exceed any constitutional or statutory limitations.