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FINANCES ARTICLE I. MINI BONDS.
9.3. Same - Issuance and Sale. 9.4. Same - Interest. 9.5. Same - Execution. 9.6. Form of Public Facilities Bonds. 9.8. Resolution. 9.9. Delivery of Public Facilities Bonds. 9.10. Ad Valorem Taxes. 9.11. Covenants.
Section 9.1. City may borrow money. Pursuant to the authority of Sections 58 and 59 of the Charter (the "Charter") of the City, (codified as Sections 5-59 and 5-60 of the Code of Public Local Laws of Prince George's County (1963 Edition as amended and supplemented) it is hereby determined that, subject to the procedures and limitations hereinafter set forth, the City may from time to time borrow money and incur indebtedness for the public purpose of financing, on an interim, temporary or other short term basis, any portion of the costs of acquisition of machinery and equipment or of acquisition, development, construction, improvement, rehabilitation, furnishing and equipping public grounds, buildings or facilities, including the costs of acquisition of any property rights and any planning, feasibility, architectural and engineering services in connection therewith or incidental thereto. Section 9.2. Public Facilities Bonds. To evidence such borrowing, the City, acting pursuant to the authority of the Charter and this Code, may issue and sell, from time to time, its general obligation bonds to be known as "Public Facilities Bonds" (the "Bonds") and the net proceeds of sale thereof to be used as provided in for in Section 9.1 above. The aggregate principal amount of the Bonds issued and outstanding hereunder at any one time shall not exceed Five Hundred Thousand Dollars ($500,000), and no Bond may be issued to mature more than five (5) years from its date of issue. Section 9.3. Same--Issuance and Sale. The Bonds shall be issued and sold upon the full faith and credit of the City pursuant to a Resolution of the Council (the "Resolution") which may be introduced, read and finally passed at any regular or special public meeting of the Council, provided however, that the Resolution may not be finally passed until there has been published in a newspaper of general circulation in the City a notice stating that the City proposes to borrow money under the provisions of this and that the passage of a resolution for that purpose will be considered at a regular or special meeting of the Council to be held at the place, date and time stated in the notice and that such notice shall have been published not less than two (2) nor more than fourteen (14) days prior to the stated meeting. The Bonds shall bear interest at the rate or rates stated in the proposal of the successful bidder for the Bonds made in accordance with the terms and conditions of the published Notice of Sale. Interest shall be paid at whatever interval or time is prescribed in the Resolution. Each Bond shall bear interest from its date until maturity, subject to any prior redemption prescribed in the Resolution. The Bonds shall be executed in the name of the City and on its behalf by the Mayor, whose signature may be by facsimile. The corporate seal of the City, or a facsimile of it, shall be imprinted on the Bonds, and attested by the manual signature of either the City Manager or of the City Clerk. In the event any official whose signature appears on the Bonds has become invalid after the date of issue or award thereof, the Bonds shall, nevertheless, be valid and legally binding obligations of the City in accordance with their terms. Section 9.6. Form of Public Facilities Bonds. The Bonds shall be issued in substantially the following form, subject to the provisions of the Resolution and to such additions, deletions, substitutions or alterations as the Mayor may, consistent with the provisions of this Chapter and the Resolution, deem necessary or desirable in the sale of the Bonds. $ (Form of Bond) No. UNITED STATES OF AMERICA STATE OF MARYLAND THE CITY OF BOWIE Public Facilities Bonds of 19 , (First) Issue. Dated , 19 THE CITY OF BOWIE, a municipal corporation, of the State of Maryland ("Issuer"), hereby acknowledges itself indebted, and, for value received, promises to pay to the registered owner of this bond, the principal amount of Dollars (in installments as follows) on 19 , (unless called for prior payment as hereinafter provided) and to pay interest thereon, from the date of this bond until payment of said principal amount at the rate of per centum ( %) per annum on , 19, , and (semi-annually) thereafter on the first day(s) of (and) in each year to the registered owner until the principal amount hereof has been paid in full. (Here insert maturity schedule, if applicable) Both the principal of and interest on this bond will be paid in lawful money of the United States of America, at the time of payment, at (This Bond is one of a duly authorized issue or series of bonds of the Issuer aggregating $ in principal amount which are of the denomination of each on the first day of in the years 19 to , inclusive. These bonds are numbered from one consecutively upward in the order of their maturities and are of like tenor except as to maturity, number and interest rate.) This Bond is issued pursuant to and in full conformity with the provisions of Sections 58 and 59 of the Charter of the Issuer, Ordinance No. adopted on , 1975 ("Ordinance") and a Resolution adopted on ("Resolution"). (This Bond may be called for prior payment at par without premium or penalty upon notice mailed in writing to the registered owner at least thirty (30) days prior to the payment date.) The full faith and credit of Issuer are hereby pledged to the prompt payment of the principal of and interest on this bond according to its terms and the Issuer does hereby covenant and agree to pay the principal of this bond and the interest thereon, at the dates and in the manner mentioned herein. It is hereby certified and recited that all conditions, acts and things required by the Constitution or statutes of the State of Maryland, the Charter of the Issuer, the Ordinance and the Resolution to exist, to have happened or to have been performed precedent to or in the issuance of this bond, exist, have happened and have been performed, and that this issue of bonds, together with all other indebtedness of the Issuer, is within every debt and other limit prescribed by said Constitution or statutes or Charter. IN WITNESS WHEREOF, this bond has been executed by the (manual) (facsimile) signature of the Mayor of the Issuer and (a facsimile of) the corporate seal of the Issuer has been imprinted hereon, attested by the manual signature of the (Clerk) (City Manager) of the Issuer, all as of ATTEST: THE CITY OF BOWIE ____________________________________ by _______________________ Mayor (Form of Assignment) FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfer unto the within bond and all rights thereunder, and does hereby constitute and appoint to transfer the within bond on the books kept for the registration thereof, with full power of substitution in the premises. Dated: ________________________________________________________ In the presence of: _________________________ _________________________ Section 9.7. Public Sale of Bonds. a) The Bonds shall be offered for sale at public sale at such place as the Resolution prescribes. The Mayor, or in his absence, the City Manager, shall conduct the sale and shall sell and award the Bonds in the name of the City and on its behalf to the bidder therefor for cash at no less than par whose bid is deemed to be the best responsible bid received in compliance with the terms and conditions of the Notice of Sale. The sale shall be made upon an Award signed by the Mayor of the City or, in his absence, by the City Manager. The Award shall also fix the interest rate or rates to be paid on the Bonds in accordance with the terms of the bid of the successful purchaser. b) A Notice of Sale shall be published at least twice in a newspaper of general circulation in the City. The first publication shall be made not less than ten (10) days prior to the date of sale. The published Notice of Sale and the prescribed bid form shall be in substantially the following form, subject to the provisions of the Resolution and to such additions, deletions, substitutions or alterations as the Mayor may, consistent with the provisions of this Chapter and the Resolution, deem necessary or desirable in the sale of the Bonds. (Form of Notice of Sale) NOTICE OF SALE THE CITY OF BOWIE, MARYLAND $ PUBLIC FACILITIES BOND OF 19 , (FIRST) ISSUE SEALED BIDS will be received at until m. (E.T.) on , 19 for the purchase of the above Bonds, dated , 19 , bearing interest payable (semi-annually) on the first day(s) of (and) until maturity or call for prior redemption, and issued under the authority of a Resolution adopted by the City Council pursuant to the provisions of Sections 58 and 59 of the City Charter, the Laws of the State of Maryland and Ordinance No. . The Bonds shall mature, subject to call for prior redemption on as follows: Year of Maturity Annual Amount 19 $ (etc., if applicable) The proceeds of the sale of the Bonds will be used for the purpose of financing (Here Insert a Brief and Concise Description of the Facilities to be Financed with the Bond Sale Proceeds) The principal of and interest on these Bonds will be payable in lawful money of the United States of America at the time of payment at . The Bonds will be issued in registered form (in the denomination of ). (The Bonds will be subject to prior payment at par without premium or penalty upon 30 days' prior written notice to the registered owner.) Each bid must be submitted on the prescribed form which may be obtained from the Director of Finance at the Municipal Building, Bowie, Maryland and must be enclosed in a sealed envelope addressed to the City of Bowie, (Here Insert Address of Place at Which Bids Will Be Received), and marked on the outside "Proposal for Bonds", such bid to be accompanied by a certified check upon, or a cashier's or treasurer's check (or any other equivalent direct obligation) of, a responsible banking institution, payable to the "The City of Bowie" in an amount equal to 2% of the par amount of the Bonds. The check of the successful bidder will be collected and the proceeds thereof retained by the City to be applied in part payment for the Bonds, and no interest will be allowed upon the amount thereof, but, in the event the successful bidder shall fail to comply with the terms of his bid, the proceeds of such check will be retained as and for full liquidated damages. The checks of the unsuccessful bidders will be returned promptly. Any bid for the purchase of less than all of the Bonds will be rejected. The right is reserved to reject any and all bids. Bidders must bid at least par for the Bonds and must specify the rate or rates of interest to be paid thereon in multiples of one-eighth (1/8) or one-tenth (1/10) of one per centum (1%). (Bidders may specify more than one rate interest to be borne by the Bonds, but the difference between the maximum and minimum rates may not be greater than 2%. Bidders may not specify more than one interest rate for the Bonds of any serial maturity. A zero rate cannot be named for any maturity.) Bids will be opened promptly after (11:00 o'clock A.M. (E.D.T.)) , 19 . The award, if made, will be made promptly after the bids are opened to the bidder offering the lowest net interest cost to the City, to be determined by computing the total interest to maturity on all the Bonds and deducting therefrom the premium bid, if any; provided, however, that if two or more bidders offer to purchase the Bonds at the same lowest net interest cost, then such award may be made in a ratable portion among such bidders, with their consent, or the award may be made to one or the other of such bidders. Upon payment of the amount of the successful bid, together with the accrued interest, less the deposit theretofore made, the Bonds will be delivered as soon as practicable, upon due notice and at the expense of the City, either in Bowie or Baltimore, Maryland. Delivery elsewhere will be at the expense of the purchaser. The Bonds described herein are general obligation bonds of the City of Bowie, Maryland, and will constitute an irrevocable pledge of the full faith and credit and unlimited taxing power of the City. The issuance of said Bonds will be subject to legal approval by and copies of their opinion will be delivered upon request, without charge, to the successful bidder for the Bonds. There will also be furnished the usual closing papers, including a certificate stating that there is no litigation pending affecting the validity of the Bonds. Bid forms, financial information and other data relating to the City may be obtained by prospective bidders upon request to the Director of Finance, The City of Bowie, Municipal Building, Bowie, Maryland 20715. By order of THE CITY OF BOWIE (Bid Form) PROPOSAL FOR $ BOWIE PUBLIC FACILITIES BONDS (Here Insert Date of Sale) The City of Bowie (Here Insert address of place of sale) Dear Sirs: We offer to purchase $ par amount Bowie Public Facilities Bonds described in the published Notice of Sale, which is made a part of this Proposal, the bonds to bear interest at the rates per annum shown below, and to pay $ , the par amount thereof, plus an amount equal to the interest thereon accrued to the date of payment of the purchase price. Year of Principal Interest Maturity Amount Rate (etc., if applicable) We enclose herewith a certified, bank cashier's or treasurer's or equivalent check, payable to the order of "The City of Bowie" in an amount equal to 2% of the par amount of the bonds, which check is to be applied in accordance with the terms of the Notice of Sale. _____________________________ (This is requested to expedite and facilitate prompt determination of best bid. It is not a part of the proposal. The omission or inaccuracy of these figures will not affect the validity of the proposal. The total net interest cost of this proposal is $________________ The effective rate of interest is ____________________________%.) (a) Any Resolution adopted in accordance with Section 9.3 hereof may contain any provision deemed necessary or appropriate in connection with the issuance, sale or delivery of Bonds not inconsistent with the express provisions of this Chapter and shall contain the following provisions:
(b) The material appearing between (brackets) in the forms set forth in Sections 9.6 and 9.8 of this Ordinance represents either material that may or may not be included in the forms applicable to any specific issue of Bonds hereunder or instructions to the City Manager as to the type of material to be inserted in the forms to be used in connection with any specific issue of Bonds hereunder, and the text of such bracketed material is in no way intended to mandate the use of any particular language or provision. Section 9.9. Delivery of Public Facilities Bonds. As soon as practicable after the sale, the Bonds shall be suitably prepared and delivered to the purchaser. The proceeds of the sale, including any premium and accrued interest which may be received therefore, shall be paid directly to the City and shall be deposited in the proper municipal accounts. There shall be deducted from the gross proceeds of the sale any amount received on account of accruing interest, which amount shall be set apart in a separate fund and applied to the first maturing interest payable on the Bonds. The balance of the proceeds of the sale of the Bonds shall be used by the City exclusively and solely for the public purposes described in Section 9.1 hereof and in the Resolution authorizing sale of that particular issue of bonds. Section 9.10. Ad valorem taxes. For the purpose of paying the principal of and interest on the Bonds when due, the City, in addition to the allocation for such purpose of any funds received from any other source, shall, if and when the aforesaid funds are or will be insufficient for such purpose, levy or cause to be levied, for each and every fiscal year during which any of the Bonds may be outstanding, ad valorem taxes upon all real and tangible personal property within its corporate limits subject to assessment for unlimited municipal taxation in a rate and amount sufficient to provide for the prompt payment of the principal of and interest on the Bonds maturing in each fiscal year and, in the event the proceeds from the collection of the taxes so levied may provide inadequate for such purpose in any fiscal year, additional taxes shall be levied in the subsequent fiscal year to make up any deficiency. The full faith and credit and unlimited taxing power of the City are hereby irrevocably pledged to the prompt payment of the maturing principal of and interest on the Bonds as and when the same respectively mature and to the levy and collection of the taxes hereinabove described as and when such taxes become necessary to provide sufficient funds to meet the debt service requirements of the Bonds. The City hereby covenants with each registered owner of any of the Bonds to take any action that may be appropriate from time to time during the period that any of the Bonds remain outstanding and unpaid to provide the funds necessary to make the principal and interest payments due thereon, and specifically to levy and collect the taxes hereinabove described. The City hereby covenants with each registered owner of any of the Bonds that (1) it will not make any use of the proceeds of the Bonds which would cause any of the Bonds to be an "arbitrage bond" within the meaning of Section 103(d)(2) of the Internal Revenue Code of 1954 and regulations applicable thereunder, and (2) it will comply with the requirements of that section and such regulations, as the same may be amended from time to time, as long as any of the Bonds remain outstanding. |
 Bowie City Hall |
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