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HomeMy WebLinkAbout1981-32 To Contract a Special and Limited Obligation on Behalf of the Town of Vail by Issuing Its Construction Loan Refunding Notes~. .', rk CERTIFIED RECORD OF PROCEEDINGS OF THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO RELATING TO AN ORDINANCE AUTHORIZING THE ISSUANCE OF ITS CONSTRUCTION LOAN REFUNDING NOTES SERIES NOVEMBER 1, 1981 DATED NOVEMBER 1, 19$1 IN THE AGGREGATE PRINCIPAL AMOUNT OF $7,000,000 ~Y ~ • 1~ STATE OF COT~ORADO ) 3 COUNTY OF EAGLE ) ss. } TOWN OF VAIL ) The Town Council of the Town of Vail, Colorado, met in regular session at the Vail Municipal Building, Vail, Colorado, the regular meeting place thereof, on Tuesday, the 6th day of October, 1981, at the hour of 7:30 p.m. The following members of the Town Council were present: Mayor: Rodney Slifer Council Members: R. Bud Benedict Paul Johnston Robert Ruder Ronald Todd Thomas I. Steinberg E. Wm. Wilto The following members of the Town Council were absent: ~/~--~CLr~ ~ The Following persons were also present: Town Manager: Richard Caplan Town Director of Finance: William Pyka Town Attorney: Lawrence C. Rider Town Clerk: Colleen Kline Thereupon the following proceedings, among others, were had and taken: Council Member introduced and moved the adoption of the f llowing emergency Ordinance, which was then read by title, sufficient copies having previously been made available to the Town Council and to the public: -2- ~~~ ~r ORDINANCE N0. (EMERGENCY) SERIES OF 1981 AN ORDINANCE TO CONTRACT A SPECIAL AND LIMITED OBLIGATION ON BEHALF OF THE TOWN OF VAIL, COLORADO, BY ISSUING ITS CONSTRUCTION LOAN REFUNDING NOTES IN THE AGGREGATE PRINCIPAL AMOUNT OF $7,000,000, FOR THL~ PURPOSE OF REFUNDING, PAYING AND DISCHARGING THE TOWN'S CONSTRUCTION LOAN NOTES, SERIES MAY 1, 1980, DATED MAY 1, 1980, IN THE ORIGINAL PRINCIPAL AMOUNT OF $7,000,000, ISSUED IN ANTICIPATION OF THE ISSUANCE Off' GENERAL OBLIGATION BONDS OR REVENUE BONDS FOR THE PURPOSE OF DEFRAYING, IN WHOLE OR IN PART, THE COST OF ACQUIRING, CONSTRUCTING, INSTALLING AND EQUIPPING A NEW PUBLIC PARKING FACILITY WITHIN AND FOR THE TOWN, AND IN ANTICIPATION OF THE RECEIPT OF CERTAIN PARKING FACILITY REVENUES; PRESCRIBING THE FORM OF THE CONSTRUCTION LOAN REFUNDING NOTES; PROVIDING FOR THE PLACING OF THE PROCEEDS THEREOF TN ESCROW TO BE APPLIED FOR THE PAYMENT OF SAID CONSTRUCTION LOAN NOTES UPON THEIR PRESENTATION THEREFOR AND THE COSTS AND EXPENSES INCIDENT THERETO; PROVIDING A RESERVE FUND FOR THE PAYMENT THEREOF; PROVIDING FOR THE APPLICATION OF PROCEEDS OF GENERAL OBLIGATION BANDS OR REVENUE BONDS TO PAY THE CONSTRUCTION LOAN REFUNDING NOTES AND THE INTEREST THEREON AND CERTAIN PARKING FACILITY REVENUES OF THE TOWN TO PAY THE INTEREST ON SUCH NOTES; PRESCRIBING OTHER DETAILS CONCERNING THE CONSTRUCTION LOAN REFUNDING NOTES, INCLUDING BUT NOT LIMITED TO COVENANTS AND AGREEMENTS IN CONNECTION THEREWITH AND EXCHANGE PROVISIONS FOR PARKING FACILITY REVENUE BONDS; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO, THAT: Section 1. Definitions and Construction. A. Definitions. In this Ordinance the following terms have the following respective meanings unless the context hereof clear,Iy requires otherwise: -3- ~r `' • (1) Capital Improvements and Open Space Fund: the special fund created and confirmed by Resolution No, 1, Series 1980, of the Town adopted by the Town Council on January 8, 1980, into which the Sales Tax Revenues are deposited. (2) Charter: the Home Rule Charter of the Tawn, approved by the electors of the Town on September 12, 1972, and filed in the office of the Colorado Secretary of State on September 35, 1972. (3} Debt Service Rec{uirements: the principal of, interest on, and any premiums due in connection with the redemption of the Notes or such part of the Notes as may be designated, as such principal, interest and premiums become due. (4} Depositor: any depository for public funds permitted by the laws of the State of Colorado. (5} Escrow Agreement: the Escrow Agreement, dated as of November 1, 1981, between the Town and the Escrow Bank. {6} Escrow Bank: Central Bank of Denver, Denver, Colorado. (7} Escrow Fund: the special fund created by Section 5B hereof . ($} Federal Securities: bills, certificates of indebtedness, notes, bonds or similar securities which are direct obligations of, or the principal and interest of which obligations are unconditionally guaranteed by, the United States of America or any agency thereof. (9) Fiscal Rear: the twelve (12) months commencing on the first day of January of any calendar year and ending on the -4- ~P ~ i S thirty-first day of December of such calendar year or such other twelve (12) month period as may from time to time be designated by the Tnwn Council as the fiscal year of the Town. (10} Gross Project Revenues: (a) all income, if any, from rates, fees, to11s, rentals and charges or any combination thereof for the services or privileges furnished by, with or from the use of the Project; and (b) all income or other gain, if any, from any investment of Gross Project Revenues. (11) Mayor: the de jure or de facto Mayor of the Town or his ar her successor in functions. (12) Net Project Revenues: all Gross Project Revenues remaining after the deduction of Operation and Maintenance Expenses. (13) Notes or Series November 1, 1981, Notes; the Hates issued hereunder and designated as the "Yawn of Vail, Colorado, Construction Loan Refunding Notes, Series November 1, 1981," dated November 1, 1981, in the aggregate principal amount of $7,000,000. (14) Note Fund: the special fund created by Section 5C hereof. _...____. (15) Obligation or Obligations: when used with reference to obligations of the Town, any warrant, bond, note, lease ar other instrument of whatever form or legal nature, including without .imitation general obligation bonds, short term notes, and land transfer tax anticipation bonds, notes or warrants, of the Town, issued or entered into by the Town, ar any other evidence of the advancement of money to the Town for the purchase, delivery, lease or the use of real property by the Town for which the Town -5- ti ,~ has promised to pay money for a period beyond one Fiscal Year, regardless of whether any such Obligation is renewable or cancellable in any given year, provided that personal property may be acquired by any such Obligation and provided further that the term Obligation shall exclude any obligation reauixed to be paid in whole or in part from special assessments or that part of the Sales Tax which is not within the term Sales Tax Revenues as defined herein. (l6} Operation and Maintenance Expenses: in the event that the Town has any Gross Project Revenues, such reasonable and necessary current expenses of the Town, paid or accrued, of operating, maintaining and repairing the Project as may be determined by the Town Council, and the term may include at the Town Council's option, except as limited by contract or otherwise limited by law, without limiting the generality of the foregoing: (a) Legal and overhead expenses of the various departments of the Town directly related and reasonably allocable to the administration of the Project; {b) Fidelity bond and insurance premiums appertaining to the Project or a reasonably allocable share of a premium of any blanket band or policy pertaining to the Project; (c} Contractual services, professional services, salaries, administrative expenses, and costs of labor appertaining to Project; -6- ~Y \i ~ • (d) The costs incurred in the collection of all or any part of the Gross Project Revenues; (e) Any costs of utility services furnished to the Project by the Town or otherwise, "Operation and Maintenance Expenses" does not include; (i) Any allowance for depreciation; (ii) Any costs of reconstruction, improvements, extensions, or betterments; (iii) Any accumulation of reserves for capital replacements, (iv) Any reserves for operation, maintenance, or repair of the Project, (v) Any allowance for the redemption of the Notes, or the payment of any interest thereon; (vi) Any liabilities incurred in the acquisition or improvement of any properties comprising the Project or any combination thereof; (vii) Any other ground of legal liability not based on contract. (l7) Ordinance: this Ordinance No. 3 ~, Series of 1981, of the Town, which provides for the issuance and delivery of the Series November 1, 1981, Notes. (1$) Outstanding or outstanding: when used with reference to the Notes or any other designated Obligations of the Town and as of any pazticular date, all the Notes or any such other Obligations in any manner theretofore and thereupon being executed and delivered, except the following: _~_ ~, ~ ~ (a) Any Note or other Obligation cancelled by the Town, by the Paying Agent, or otherwise on the Town's behalf, at or before such date; (b) Any Note or other Obligation held by ar on behalf of the Town; {c) Any Note or other Obligation of the Town for the payment or the redemption of which moneys or Federal Securities sufficient to meet all of the payment requirements of the principal of, the interest on, and any premium due in connection with the redemption of such Note or other Obligation to the date of maturity or any redemption date thereof, shall have theretofore been deposited in escrow or in trust with a trust bank for that purpose, as provided in and required by Section 7 hereof; and (d) any lost, apparently destroyed, or wrongfully taken Note or other Dbligation of the Town in lieu of or in substitution for which another Note or other Obligation shall have been executed and delivered pursuant to this Ordinance. (l9) Parking Facility General Obligation Bands or General Obligation Bonds: the bonds authorized by the electors of the Town to be issued pursuant to a special election held in the Town on November 20, 1979, as set forth in Section 2A hereof. (20) Parking Facility Revenue Bonds or Revenue Bonds: the revenue bonds of the Town far the Project. (21) Paying Agent: Central Bank of Denver, in Denver, Colorado, which is the agent of the Town for the payment of the Notes. -8- ~ • U (22) Prior Obligations: the notes issued pursuant to Ordinance No. 14, Series of 1980, of the Town, as amended, and designated as the "Town of Vail, Colorado, Construction Loan Notes, Series May i, 1980," dated May 1, 1980, in the aggregate principal amount of ,$7,400,000. (23) Project: the acquisition, construction, installation and equipping of the public parking facility financed with the proceeds of the Prior Obligations, together with all necessary incidental and appurtenant properties, structures, facilities, equipment and costs, and upon or after completion of the public parking facility, the operation and use of said facility for public parking purposes. (24) Purchaser: Boettcher & Company, in Denver, Colorado, and its associates, if any. (25) Reserve Fund; the special fund created by Section 5D hereof . (26) Sales Tax: the sales tax established by Ordinance No. 11, Series of 1973, of the Town, as amended, upon the safe of tangible personal property at retail and the furnishing of services within the Town, in such percentage as is set forth in said Ordinance No. li, or any supplements or amendments thereof. (27) Sales Tax Revenues: the one-half of the gross receipts collected by the Town from its 4$ Sales Tax authorized by Ordinance No. 11, Series of 1973, of the Town, as amended, devoted to and specifically earmarked by said Ordinance Na. 11 _g_ ,~ for the purpose of real estate acquisition ana for the acquisition, construction and equipping of buildings and facilities of the Town. (28) Town: the Town of Vail., Colorado. (29) Town Clerk: the de jure or de facto Town Clerk of the Town or his or her successor in functions, if any. (30) Town Council: the Town Council of the Town or any successor in functions thereto. B. Construction. This Ordinance, except where the context by clear implicrxtion herein otherwise requires, shall be construed as follows: (1) Words in the singular number include the plural, and words in the plural. include the singular. (2) Words in the masculine gender include the feminine and the neuter, and when the sense so indicates words of tr,e neuter gender refer to any gender. (3) Articles, sections, subsections, paragraphs and subparagraphs mentioned by number, letter, or otherwise, correspond to the respective articles, sections, subsections, paragraphs and subparagraphs of this Ordinance so numbered or otherwise so designated. (4) The titles and headlines applied to articles, sections and subsections of this Ordinance are inserted only as a matter of convenience and ease in reference and in no ~ti~ay define, oz limit the scope or intent of, any provisions of ti7is Ordinance. (5) Any inconsistency between the provisions of this Qrdinance and those of pant 1 of article 55 of title ll, or 10~ i~ ~ • 4 . part 1 of article 14 of title 29, Colorado Revised Statutes 1973, as amended, is intended by the Town Council. To the extent of any such inconsistency the provisions of tis Ordinance shall be deemed made pursuant to the Charter and shall supersede to the extent permitted by law the conflicting provisions of part 1 of article 56 of title 11, and part 1 of article 14 of title 29, Colorado Revised Statutes 1973, as amended. Section 2. Recitals; Authority; Findings. A. November 20, 1979, Election. At a special election of the qualified, registered electors of the gown, duly called and held an Tuesday, the 20th day of November, 1979, in accordance with law and pursuant to due notice, there taas sub;nitted to the electors of the Town the following question: Shall the Town of Vail, Colorado, be authorized to issue its negotiable, interest bearing general obligation bonds in one series ar more in an aggregate principal amount rot to exceed X7,000,000, or so much thereof as may ire necessary, for the purpose of defraying, in whole or in part, the cost of acquiring, constructing, installing and ecuipping a new public parking facility within and for said 'own, together with all necessary incidental and appurtenant prcperties, structures, facilities, equipment and costs, such uonds to bear interest at a maximum net effective interest rate hat exceeding 10 percent per annum, and to mature serially during a period of not mare than 30 years from the date or respective dates of the bonds, such bonds to be payable fro;a general ad valorem taxes and other funds legal?y available therefor, and such bands to be sold and issued at one time or from time to time, a.n such manner and amounts and upon such terms and conditions as the Town Council may later determine, including provisions for the redemption of bonds prior to maturity upon payment of a premium not exceeding 3 percent of the principal thereof? As evidenced by the canvass of the returns of the November 20, 1979, election, more than a majority of the electors of the sown voting on the r~uestion set forth above voted in favor of issuing such Parking Facility General Obligation Bonds. -11- ~' ~ ~ B. Prior Obligations Issued and Outstanding. The Tawn has heretofore issued the Prior Obligations in the aggregate principal amount of $7,000,000. Of the Prior Obligations the entire amount thereof, represented by notes numbered 1 through 1,400, inclusive, remain outstanding, are to mature on May 1, 1982, and bear interest at the rate of eight and one-half per centurn {8.5~) per annum, as evidenced by coupons thereto attached, payable semi-annually to the maturity or prior redemption thereof.. The Prior Obligations were redeemable prior to maturity at the option of the Town Council only on May 1, l9$l. C. Market Conditions; Authority to Issue Notes; ~3ecessit~ Due to the general condition of the long-term municipal bond market, the Town is not currently able to issue and sell long-term Parking Facility General Obligation Bonds at a maximum net effective interest rate which is .less than or equal to ten per centum (10$) per annum, as authorized by the electors pursuant to the election described in Section 2A hereof. In accordance with Article XX, Section 5 of the Colorado Constitution, Section 10.7 of the Charter, and part 1 of article 55 of title ll, Colorado Revised Statutes 1973, as amended, the Town is authorized to issue and sell the Notes in order to refund, pay, and discharge the Prior Obligations far the purpose of postponing the maturity of the Prior Obligations to a later date and to pledge the Net Project Revenues to the payment of the interest on the Notes and the net proceeds of the Parking Facility General Obligation Bonds or the Parking -12- ~\ • • Facility Revenue Bonds upon issuance, sale and delivery of said bands to the payment of the principal of and interest on the Notes. The Town Council does hereby determine that it is necessary and in the best interests of the Town and the inhabitants thereof that the Nates in the principal amount of $7,000,000 be now issued in accordance with the provisions of this Ordinance, in order to refund, pay, and discharge the Pricer Obligations, to pledge to the payment of the principal of and interest on the Notes the net proceeds of the Parking Facility General Obligation Bonds or the Parking Facility Revenue Bonds, if and when issued, sold and delivered by the Town, to pledge to the payment of the interest on the Notes the Net Project Revenues, and to covenant and agree to exchange matured, but unpaid, Notes for Parking Facility Revenue Bonds in accordance with Sectian 6C hereof. D. Statutory Limitations Met. The Town Council hereby determines that the provisions and limitations of the Charter, part 1 of article 56 of title 11, Colorado Revised Statutes 1973, as amended, and any other applicable law imposed nn the issuance of the Notes have been met. E. Emergency Ordinance. In accordance with Section 4.11 of the Charter, the Town Council hereby finds and determines as follows: (~.) That there is an immediate need to refund the Pricer Obligations by placing the proceeds of the Notes in escrow to be there invested and applied to the payment of the Prior Obligations at maturity. -13- r• • • (2} That applicable federal income tax regulations afford the maximum investment advantage to the Town when a closing on the Notes is held as soon after November 1, 1981, as legally possible. (3) That, in the opinion of the Town Council, for the reasons set forth in paragraphs {1) and {2) of this Section 2E, an emergency exists and this Ordinance is deemed necessary for the preservation of public property, health, welfare, peace and safety. As also set forth in Section 9L hereof, this emergency Ordinance shall take effect immediately upon final passage. Section 3, Sale of Notes. A. Necessity of Issuance of Notes. It is necessary and for the best interests of the Town and the inhabitants thereof that the Town refund, pay, and discharge the Prior Obligations by issuing the Notes. B. Award of Sale. The Purchaser has offered to purchase the Notes in the aggregate principal amount of $7,000,000 at a net effective interest rate not exceeding fifteen per centum {15~} per annum. The Town Manager is authorized and directed to negotiate and execute a note purchase agreement with the Purchaser in the name and on behalf of the Town, which agreement shall include fixing the interest rate for the Notes, provided that such agreement complies with the requirements of this Ordinance and provided further that the agreement is approved and ratified by the Tawn Council by a resolution duly adopted at a regular or special meeting of the Town Council. -14- ~\ • C. Official. Statement. The use of an Official Statement by the Town in connection with the sale of the Notes is approved, and the Mayor, on behalf of the Town, is authorized to sign one or more copies of the Official Statement, by and on behalf of the Town, after the Official Statement has been reviewed and approved in writing by the Town Manager, the Town Finance Director and the Town Attorney. Section 4. The Notes. A, Authorization. The Town of Vail, Colorado, Construction Loan Refunding Notes, Series November 1, 1981, in the aggregate principal amount of $7,000,000, payable as to all. Debt Service Requirements solely out of the net proceeds of the Farking Facility General Obligation Bonds or the Parking Facility Revenue Bonds, when and if issued, sold and delivered, and with Net Project Revenues to be applied except as otherwise provided herein solely to pay interest an the Notes, are hereby authorized to be issued, pursuant to Article XX, Section 6 of the Colorado Constitution, Section 10.7 of the Charter, part 1 of article 56 of title 11, Colorado Revised Statutes 1973, as amended, and the terms of the Ordinance, and the Town pledges irrevocably and exclusively the net proceeds of the Parking Facility General Obligation Bonds or the Farking Facility Revenue Bonds, when and if issued, sold and delivered, to the payment of the Debt Service Requirements for the Notes and, except as otherwise provided herein, the Net Froject Revenues to the payment of the interest an the Notes, the proceeds of the Notes authorized herein to be used solely refund, pay, and -15- ~~ ~ discharge the .Prior Obligations and to pay the costs and expenses of issuing the Notes. The maximum net effective interest rate for this Note issue is fifteen per centum (15%) per annum. B. Note Details. (1) Generally. The Notes shall be issued in registered form or payable to bearer and dated as of November 1, 1981, consisting of not more than 1,400 Notes in the denomination of $5,0(30 each or any multiple thereof, numbered consecutively in regular numerical order or as otherwise may be appropriate. All of the Notes may be issued in registered or bearer farm, or a portion of the Notes may be issued in bearer farm and a portion in registered farm. The Notes shall mature on May 1, 1984, and shall bear interest from November 1, 1981, to May 1, 19$4, except if redeemed prior thereto, at the per annum rate of not to exceed fifteen per centum (15~). Bearer Notes shall bear one set of interest coupons evidencing the interest thereon. The interest on the Notes shall be payable May 1, 1982, and semiannually thereafter on each November 1 and May 1 to and including May 1, 1984, If upon presentation at maturity payment of any Note is not made as herein provided or a Parking Facility Revenue Bond or Bonds have not been exchanged by the Town for the bate in accordance with Section 6C hereof, interest shall continue thereon at the interest rate designated in the Note until the principal. thereof is paid in fu11. -16- ~- , ~- ~ (2) Redemption of Notes Prior to Maturity. The Notes are redeemable at the option of the Town Council in whale ar in part on November 1, 1982, or any interest payment date thereafter, ~y lot, at a price equal to the principal amount of each Note so redeemed, plus accrued interest thereon to the redemption date, plus a premium expressed as a percentage of the principal amount, depending on the redemption date, not to exceed the following: Redemption Date Premium November 1, 1982 1. 5° May 1, 1983 ~-. 0 November 1, 1983 0.50 Nncice of any redemption shall be given by the Paying Agent in the name of the Town, by publication of suc~i notice at least one (1) time by one (1) publication in The Daily Bond Buyer, New York, New Rork, if then in business and publishing hand, if not, then in a similar financial newspaper published in New Xark, New York), and in The Denver Past, Denver, Colorado, if then in business and publishing (and, if not, then in a newspaper of general circulation in Denver, Colorado), such publications being not less than thirty (30) days prior to the redemption date specified in such notice, and by sending a copy of such notice by certified or registered first-class, postage prepaid mail, at least thirty (30) days prior to the redemption date, to the holders of each of the Notes being redeemed, if the names and addresses of such holders are registered or recorded with the Paying Agent. Far this purpose, the balder of any nearer Note may at any time furnish his name and address to the Paying Agent. Such notice shall specify the number or numbers of the -17- ~~~~ • • Notes so to be redeemed and the date fixed for redemption, and shall further state that on the redemption date there will become and will be due and payable upon each Note so to be redeemed the principal amount thereof, plus accrued interest thereon to the redemption date, plus any premium due and that from and after such date interest will cease to accrue. Any Notes redeemed prior to their maturity by call for prior redemption or otherwise shall not be reissued and shall be cancelled the same as Notes paid at or after maturity. (3) Payinq Agent. The Debt Service Requirements of the NOtES shall be payable in lawful money of the United States of America without deduction for exchange or collection charges at Central Bank of Denver, Denver, Colorado, which is hereby designated the Paying Agent for the Notes. (4) Execution and Delivery. The Notes shall be executed in the name and on behalf of the Town with the facsimile signature of the Mayor, shall bear a facsimile of the seal of the Town, and shall be attested by the manual signature of the Town Clerk. Each of the bearer Notes shall have attached thereto five (5) interest coupons bearing the facsimile signature of the Mayor. The coupons shall be numbered consecutively from one (1) to five (5). When issued as aforesaid as part of the bearer Notes, the coupons shall be the lawful binding promises and obligations of the Town according to their import, securing the payment o£ interest as it becomes due. Should any officer whose manual or facsimile signature appears on the Notes or any interest coupons attached thereto cease to be such officer -1$- • i before delivery of the Notes to the Purchaser, such manual or facsimile signature shall nevertheless be valid and sufficient for all purposes. The Mayar and the Town Clerk are hereby authorized and directed to prepare and to execute the Notes in accordance with the requirements of this Ordinance and pursuant to the note purchase agreement authorized by Section 3B hereof. When the Notes have been duly executed and sold, the officers of the Town are authorized to, and shall, deliver the Notes to the Purchaser on receipt of the agreed purchase price. (~) Negotiable Instruments. Title to any bearer Note shall pass by delivery merely, as a negotiable instrument payai~le to bearer. Subject to the provisions expressly made or necessarily implied herein, the Notes shall be fully negotiable and shall have all the qualities of negotiable paper within the meaning and for all the purposes of investment securities under the provisions of part I of article 8 of title 4, Colorado Revised Statutes 1973, as amended, the Uniform Commercial Code--Investment Securities, and each holder of any of the Notes, by accepting the same, shall be conclusively deemed to have agreed that the Notes, except as otherwise provided, are and shall be fully negotiable within the meaning and for all purposes of investment securities pursuant to said statute. (6) Lost, Destroyed or Taken Notes. If any Outstanding Note shall }.:,Lome last, apparently destroyed, or wrongfully taken, it may be reissued in the farm and tenor of the lost, destroyed or taken Note upon the owner furnishing, to the -19- ~' ~ satisfaction of the Town Council; (a) proof of ownership, (b) proof' of loss or destruction, (c) a surety bond in twice the amount of the securities in question, including any unmatured coupons appertaining thereto, and (d) payment of the cost of preparing and issuing the new securities. (7) Recitals in Note. Each Note shall recite in substance that the Note is payable solely rrom the net proceeds of the Parking Facility General Obligation Fonds or the Parking Facility Revenue Bonds, if and when issued, sold and delivered, with the Net Project Revenues being pledged except as otherwise provided in the Ordinance solely to pay interest on the Note, that matured, but unpaid, Notes will be exchanged by the Town for Parking Facility Revenue Bonds in accordance with the terms of this Ordinance as the sole recourse against the Town for the non-payment of the principal amount of the Note as herein provided, that the Note does not constitute a debt of the Town within the meaning of any constitutional, Charter ar statutory limitations, that the Note is not payable in whole or in part from the proceeds of general property taxes or proceeds of the Sales Tax and that the fu11 faith and credit of the Town is not pledged to pay the principal of or interest on such Note. Each Note shall further recite that it is issued under the authority of Article XX, Section 6 of the Colorado Constitution, the Charter, part 1 of article 56 of title 11, Colorado Revised Statutes 1973, as amended, and this Ordinance. By statute the latter recital shall conclusively impart full compliance with all off' the provisions and limitations of sand statute, and the ~-20- 1 • 1 Notes containing such recital shall be incontestable for any cause whatsoever after their delivery for value. {S) Form of Bearer Notes and Coupons. Subject to the provisions of the Ordinance, each bearer Note, and the coupons to be attached thereto, shall be in substantially the following form, with such omissions, insertions, endorsements, and variations as to recitals of fact or other provisions as may be required by the circumstances and as may be necessary or appropriate to conform to the rules and requirements of any governmental authority or to any usage or requirement of law with respect thereto: -21- ~~ • • STATE OF COLORADO (Form of Bearer Note) UNITED STATES OF AMERICA COUNTY OF EAGLE TOWN QF VAIL CONSTRUCTION LOAN REFUNDING NOTE SERIES NOVEMBER 1, 1981 No. $ 5,000 The Town of Vail, in the County of Eagle, and State of Colorado {the Town), for value received, hereby promises to pay to the bearer hereof, solely from the special funds provided therefor, as hereinafter set forth, on the 1st day of May, 1984, the principal sum of FIVE THOUSAND DOLLARS and to pay solely from said special funds interest thereon as evidenced by interest coupons hereto attached, at the rate of and hundredths per centum ( ~) per annum from November 1, 1981, to May 1, 1984, except if redeemed prior thereto, payable May 1, 1982, and semiannually thereafter on the first day of November and the first day of May of each year, upon presentation and surrender of this Note and said coupons as they severally become due. If upon presentation at maturity payment of this Note is not made as herein provided or the Town has not exchanged this Note for its Parking Facility Revenue Bond ar Bonds (the Exchanged Revenue Bonds) as provided herein, interest shall continue at the interest rate designated herein until the principal hereof is paid in full or until the Town so exchanges its said Exchanged Revenue Bond or Bonds for this Note. -22- ~ • The principal af, interest on and any premium due in • connection with the redemption of this mote (the Debt Service Requirements) are payable in lawful money of the United States of America, without deduction for exchange or collection charges, out of the special funds herea.nafter specified., but not otherwise, at central Bank of Denver, in Denver, Colorado (the Paying Agent), upon presentation and surrender of said coupons and this Note as they severally become due. This Note and the Notes of the series of which this is one are redeemable at the option of the Town Council on November 1, 1982, or any interest payment date thereafter, by lot, at a price equal to the principal amount of each Note so redeemed, plus accrued interest thereon to the redemption date, plus a premium expressed as a percentage of the principal amount, depending upon the redemption date as follows. Redemption Date Premium November 1, 1982 s May 1, 1983 $ November 1, 1.983 $ Redemption shall be made upon not less than thirty {30) days' prior notice by publication of such notice at least one {1) time by one ~l) publication in The Daily Bond Buyer, New York, New York, if then in business and publishing {and, if not, then in a similar financial newspaper published in New York, New York), and in The Denver Post, Denver, Colorado, if then in business and publishing (and, if not, then in a newspaper of general circulation in Denver, Colorado), such publication being not less than thirty {30} days prior to the redemption date specified in such notice, and by sending a copy of such notice 23~ . ! t by certified or registered first-class, postage prepaid mail, at least thirty (30) days prior to the redemption date, to the holders of each of the Notes being redeemed, if the names and addresses of such holders are registered or recorded with the Paying Agent. For this purpose, the holder of any bearer Note may at any time furnish his name and aadress to the Paying Agent. Such notice shall specify the number or numbers of the Notes so to be redeemed and the date fixed for redemption, and sha11 further state that on the redemption date there will become and will be due and payable upon each Note so to be redeemed the principal amount thereof, plus accrued interest thereon to the redemption date, plus any premium due, and that from and after such date interest wi11 cease to accrue. This Note is one of a series issuea in the aggregate principal amount of $7,000,000 by the Town Council of the Town of Vail, Colorado, for the purpose of refunding, paying and discharging valid and outstanding obligations of the Town issued for parking purposes, in anticipation of the receipt of the net proceeds of certain general obligation bonds authorized to be issued by the electors of the Town at an election held November 20, 1979, for said purpose (the General Obligation Bands) or in anticipation of the issuance of the Town's Parking Facility Revenue Bonds (the Issued Revenue Bonds) when and if the General Obligation Bonds or Issued Revenue Bands are issued, sold and delivered, and this Nate and the series of which this Note is one are issued by virtue of and in fu11 conformity with the Constitution of the State of Colorado, including Article XX, Section 6 thereof, the Charter of the Town, part 1 of article 5b -24- of title 11, Colorado Revised Statutes 1973, as amended, and all other laws of the State of Colorado thereunto enabling, ana pursuant to ordinance No. , Series of 1981 {the Ordinance), of the Tawn duly adopted, published ana made a law of the Town prior to the issuance of this Note. By statute the latter recital conclusively imparts full compliance with all of the provisions and limitations of said statute, and this Note sha11 be incantestable for any cause whatsoever after its delivery for value. This Note and the Notes of the series of whim this is one and the interest coupons pertaining thereto are special and limited obligations of the Town payable solely out of and secured by an irrevocable pledge of the net proceeds of the General Obligation Bonds or the Issued Revenue Bongs wnen ana if isued, sold and delivered, and as to the payment of interest by an irrevocable pledge of the revenues of the parking facility constructed with the proceeds of the obligations refunded hereby after provision is made only for payment of the operation and maintenance expenses of such parking facility (the Net Rroject Revenues), as more specifically provided in the ordinance. Ta the extent the sums accumulated in the Note Fund and the Reserve Fund specified below on May 1, 1984, are not sufficient to pay the principal of all of the outstanding Notes of the series of which this Note is one, then the Town sha11 exchange its Exchanged Revenue Bonds dated May 1, 1984, for all of such remaining outstanding Notes, and in such event the holders of such remaining outstanding Notes shall be required to accept -25- ~ ~ ~ such Exchanged Revenue Bonds in lieu of the payment of the principal of such Notes without further recourse against the Town for such payment of principal. Interest on such Notes exchanged for Exchanged Revenue Bonds sha11 cease to accrue from and after May 1, 1984. The Ordinance provides that the Exchanged Revenue Bonds may be issued by the Town upon such terms, conditions, provisions and covenants as may be determined by the Town Council, except that the Ordinance imposes certain requirements on the Tawn regarding the interest rate and maturity of the Exchanged Revenue Fronds. Ta effect such exchange, the Town shall deliver to each holder of outstanding Notes, on the maturity date of such Notes, a principal amount of its Exchanged Revenue Bonds equal to the principal amount of outstanding Notes held by such Noteholder. The serial numbers of the Exchanged Revenue Bonds to be delivered to each Nateholder sha11 be determined by lot among all o~ the holders of outstanding Notes. Notice of the exchange of Exchanged Revenue Bonds for Notes shall be given not less than thirty (30) days prior to May 1, 1984, by publication and by mail in the manner provided for giving notice of redemption of the Notes. For the purpose of receiving notice by mail the holder of any Note may at any time furnish his name and adaress to the Paying Agent. Upon receipt of Exchanged Revenue Bands each holder of such outstanding Notes sha11 deliver his exchanged Note or Notes to the Paying Agent for cancellation. This Note and the interest hereon do not constitute a debt or an indebtedness of the Town within the meaning of any - 26- ~ ;~ ~ constitutional or statutory provision or limitation of the State of Colorado or any provision or limitation of the Charter of the Town. This Note is not payable in whole or in part from the proceeds of general property taxes, and the full faith and credit of the Tawn is not pledged to pay the principal. of or interest an this Note. No portion of the proceeds of the sales tax collected by the Tawn has been pledged to the payment of the principal of or interest on the Notes. Payment of the Debt Service Requirements of this Note shall be made solely from, and as security for such payment there are irrevocably and exclusively pledged, pursuant to the Drdinance, two special funds thereby created and identified as the "Town of Vail, Colorado, Construction Loan Refunding Notes, Series November 1, 19$1, Note Fund" (the Note Fund) and the "Town of Vail, Colorado, Construction Loan Refunding Notes, Series November ]., l9$l, Reserve Fund" (the Reserve Fund), into which funds the Town has covenanted in the Ordinance to pay the Debt Service Requirements of the Notes of the series of which this Note is one from the net proceeds of the General Obligation Bonds or the Issued Revenue Bonds, when and if issued, sold and delivered, and to pay the interest on this Note except as otherwise provided in the Ordinance solely from the Net Project Revenues and to maintain a specified reserve for such purposes. In addition, the Town may at its option augment such funds with any other moneys of the Town legally available for expenditure for the purposes thereof as provided in the Ordinance. It is hereby recited, certified and warranted that for the payment of this Note and of the interest hereon, the Town has -27- ~ ~ ~ Created and wild. maintain said special. funds and will deposit therein the net proceeds of the General Ob~.igation Bonds or the Issued Revenue Bonds, when and if issued, sold and delivered, and Net Project Revenues, out of the amounts, proceeds and revenues specified in the Ordinance referred to above authorizing the issuance of this Note, and out of said special funds, as an irrevocable charge thereon, will pay this Note and the interest hereon, in the manner provided by the Ordinance except to the extent that the Town has exchanged its Exchanged Revenue Bond or Bonds for this Note on its maturity. The Notes of the series of which this is one are equitably and ratably secured by a lien on the net proceeds of tree General Obligation Bonds or the Issued Revenue Bonds, when ana if issued, sold and delivered, and Net Project Revenues, ana such Notes constitute an irrevocable, exclusive first lien upon the net proceeds of the General Obligation Bonds or the Issued Revenue Bonds, when and if issued, sold and delivered, and the Net Project Revenues. Bxcept as otherwise expressly provided in this Note and the Ordinance, the net proceeds of the General Obligation Bonds or the Issued Revenue Bonds, when and if issued, sold and delivered, are pledged and set aside to the payment of this Note and the Notes of the series of which this is one, and the Net Project Revenues are pledged and set aside to the payment of the interest hereon and thereon, all in anticipation of the collection of the Net Project Revenues and the issuance, sale and delivery of the General Obligation Bonds or the Issued Revenue Bands. -28-- ~• The Town covenants and agrees with the holder of this Note and with each and every person who may become the holder hereof that it will keep and will perform all of the covenants of this Note and of the Ordinance. In the Ordinance the Town has agreed that i.t shall in good faith make every reasonable effort to sell a sufficient amount of its General Obligation Bonds or its Issued Revenue Bonds at one time or from time to time sa that on or before May 1, 1984, there wi11 have been sufficient net proceeds from such bond sales which, together with other legally available funds accumulated in the Note Fund and the Reserve Fund, will have been applied by the Town to pay in full the Debt Service Requirements for all of the outstanding Notes of the issue of which this is one. Any outstanding Notes not sa paid from the Note Fund and the Reserve Fund shall be exchanged for the Town's Exchanged Revenue Bonds as provided in the Ordinance. Reference is hereby made to the Ordinance, and to any and all modifications and amendments thereof, for a description of the provisions, terms and conditions upon which the Notes of the series of which this is ane are issued and secured, including, without limitation, the nature and extent of the security for the Notes, provisions with respect to the custody and application of the proceeds of the Notes, the collection and disposition of the revenues and moneys charged with and pledged to the payment of the Debt Service Requirements of the Notes, the terms and conditions on which the Notes are issued, a description of said special funds referred to above and the -29- `~ nature and extent of the security and pledge afforded thereby for the payment of the I]ebt Service Requirements and the manner of enforcement of said pledge, the agreements concerning exchange of the Exchanged Revenue Bonas for the Notes, as well as the rights, duties, immunities and obligations of the Town and the members of its Town Council and also the rights and remedies of the holders of the Notes. Ta the extent and in the respects permitted by the Ordinance, the provisions of the Ordinance, or any instrument amendatory thereof or supplemental thereto, may be modified or amended by action of the Town Council taken in the manner and subject to the conditions and exceptions provided in the Ordinance. The pledge of net proceeds, revenues and other obligations of the Town under the Ordinance may be discharged at or prior to the maturity of the Notes upon the making of provision for the payment of the Notes on the terms and conditions set Earth in the Ordinance. It is hereby recited, certified and warranted that all the requirements of law have been fully complied with by the proper officers of the Town in the issuance of this Note; that it is issued pursuant to and in strict conformity with the Constitution of the State of Colorado, including Article XX, Section 6 thereof, the Town Charter, part 1 of article 56 of title 11, Colorado Revised Statutes 1973, as amended, and all other laws o£ the State of Colorado thereunto enabling, and with the Ordinance and any instrument supplemental thereto; that this Note does not contravene any constitutional or statutory -3~- • • limitation of the State of Colorado or any limitation of the Town Charter; and that this Note and each of the other Notes of the series of which it is one are issued under the authority of the Ordinance. ~'or the payment of this Note and the interest hereon, the Town pledges the exercise o€ all its lawful corporate powers. TN WITNESS WHEREOF, the Town Council of the Town of Vail, Colorado, has caused this Nate to be executed in its name and on its behalf' with the facsimile signature of the Mayor of the TOWn, to be sealed with a facsimile of the seal of the Town, and to be signed and attested by the manual signature of the Town Clerk of the Town, and has caused the attached coupons to be signed with the facsimile signature of the Mayor of the Town, all as of the 1st day of November, 1981. TOWN OF VA1L, COLORADO {FACSIMILE) ( SEAL ) By (Facsimile Signature) Mayor Attest: {Manual Signature) Town C1er~C {End of Form of Bearer Note) -31- Coupon No. _~ °- (Farm of Tnterest Caupan) May, On the first day of November, 19_, unless the Note to which this coupon is attached has been called for prior redemption, the Town of Vail, in the County of Eagle and State of Colorado, will upon surrender of this coupon pay to bearer the amount shown hereon in lawful money of the United States of America, without deduction for exchange or collection charges, at Central Bank of Denver, in Denver, Colorado, solely from and secured by a pledge of two special funds, created from specified net proceeds and certain other revenues derived from the sources set Forth in the Nate to which this coupon pertains, being the interest then due on its Tawn of Vail, Colorado, Construction Loan Refunding Nate, Series November 1, 1981, dated November 1, 1981, bearing Note No. (Facsimile Signature) Mayor ..:_.......--. --...___ ._.. _ Town of Vail, Colorado (End of Form of Tnterest Coupon) -32- • • • (9) Form o.f Registered Notes, Subject to the provisions a:E this Ordinance, each registered Note sha11 be in substantially the following form, with such omissions, insertions, endorsements, and variations as to recitals of fact or other provisions as may be required or permitted by this Qrc7inance, and as may be necessary ar appropriate to conform to the rules and requirements of any governmental authority or to any usage or requirement of law with respect thereto: -33- '• • STATE OE COLORADO (Form of Registered Note) UNITED STATES OF AI~lERICA COUNTY OF EAGLE TOWN OF VAIL CONSTRUCTION LOAN REFUNDING NOTE SERIES NOVEMBER 1, 1981 No. R- The Town of Vaii, in the County of Eagle, and State of Colorado (the Town), for value received, hereby promises to pay to the registered owner hereof, solely from the special Tunas provided therefor, as hereinafter set forth, on the 1st day of May, 1984, the principal sum of 'T'HOUSAND DOLLARS and to pay solely from said special funds interest tnereon at the rate of and hundredths per centum ( %) per annum from November 1, 1981, to May 1, 1984, except if redeemed prior thereto, payable May 1, 1982, and semiannually thereafter on the ist day of November and the 1st day of May of each year. If upon presentation at maturity payment of the principal amount of this Note is not made as herein proviaed or the Town has not exchanged this Note far its Parking Facility Revenue Bond or Bonds (the Exchanged Revenue Bonds) as provided herein, interest shall continue at the interest rate designated herein until the principal hereof is paid in Eull or until the Town so exchanges its said Exchanged Revenue Bond or Bonds for this Note. - 34- ~ ~ ~ The principal of, interest on and any premium due in connection with the redemption of" this Note (the Debt Service Requirements) are payable in lawful money of the United States of America, without deduction for exchange or collection charges, out of the special funds hereinafter specif.zed, but not otherwise, to the registered holder hereof at the address shown on the registration books of the Town. The final installment of principal and interest due on this Note sha11 be made only upon presentation and surrender of this Note to the Paying Agent, Central Bank of Denver, in Denver, Colorado. This Note and the Notes of the series of which this is one are redeemable at the option of the Town Council on November 1, 1982, ar any interest payment date thereafter, by lot, at a price equal to the principal amount of each Note so redeemed, plus accrued interest thereon to the redemption date, plus a premium expressed as a percentage of the principal amount, depending on the redemption date as follows: Redemption Date Premium November 1, 1982 ~ May ]., 1983 °~ November 1, 1983 g ~~ R.edemption shall be made upon not less than thirty (30) days' prior notice by publication of such notice at least one (1) time by one (1) publication in The Daily Bond Buyer, New York, New York, if then in business and publishing (and, if not, then in a similar financial newspaper published in New York, New York), and in The Denver Past, Denver, Colorado, if then in business and pubiishing (and if not, then in a newspaper of general circulation in Denver, Colorado), such publication being --35- ~ ~ not less than thirty (30) days prior to the redemption date specified in such notice, and "ay sending a copy of such notice by certified or registered first-class, postage prepaid mail, at least thirty {30) days prior to the redemption date, to the registered owner of each of the Nates being redeemed. Such notice shall specify the number or numbers of the Notes so to be redeemed and the date fixed for redemption, and shall further state that on the redemption date there will become and will be due and payable upon each Note so to be redeemed the principal amount thereof, plus accrued interest thereon to the redemption date, plus any premium due, and that from and after such date interest will cease to accrue. This Note is one of a series issued in the aggregate principal amount of $7,QOa,QaO by the Town Council of the 'own of Vail, Colorado, for the purpose of refunding, paying and discharging valid and outstanding obligations of the Town issued for parking purposes, in anticipation of the receipt of the net proceeds of certain general obligation bonds authorized to be issued by the electors of the Town at an election held November 20, 1979, for said purpose {the General Obligation Bonds) or in anticipation of the issuance of the Town's Parking Facility Revenue Bonds {the Issued Revenue Eonds) when and if the General Obligation Bonds or Issued Revenue Bonds are issued, sold and delivered, and this Note and the series of which this Note is one are issued by virtue of and in full conformity with the Constitution of the State of Colorado, including Article XX, Section 6 thereof, the Charter of the Town, part 1 of article 56 of title 11, Colorado Revised Statutes 1973, as amended, and all -36- r ~ • Other Laws of the State of Colorado thereunto enabling, and pursuant to Ordinance No. Series of 1981 (the Ordinance), of the Town duly adopted, published and made a law of the Town prior to the issuance of this Note. By statute the latter recital conclusively imparts full compliance with all of the provisions and limitations of said statute, and this Note shall be incontestable for any cause whatsoever after its delivery for value. This Note and the Notes of the series of which this is ane and the interest due hereon are special and limited obligations of the Town payable solely out of and secured by an irrevocable pledge of the net proceeds of the General Obligation Bonds or the Issued Revenue Bonds when and if issued, sold and delivered, and as to the payment of interest by an irrevocable pledge of the revenues of the parking facility constructed with the proceeds of the obligations refunded hereby after provision is made only for payment of the operation and maintenance expenses of such parking facility (the Net Project Revenues), as more specifically provided in the Ordinance. To the extent the sums accumulated in the Note Fund and the Reserve Fund specified below on May 1, 1984, are not sufficient to pay the principal of all of the outstanding Notes of the series of which this Note is one, then the Town shall exchange its Exchanged Revenue Bonds dated May 1, 1984, for all of such remaining outstanding Notes, and in such event the holders of such remaining outstanding Notes sha11 be required to accept such Exchanged Revenue Bonds in lieu of the payment of -37- J i~ • the principal of such Notes without further recourse against the Town for such payment of principal. Interest an such Notes exchanged for Exchanged Revenue Bonds shall cease to accrue from and after May i, 1984. The Ordinance provides that the Exchanged Revenue Bonds may be issued by the Town upon such terms, conditions, provisions and covenants as ray be determined by the Town Council, except that the Ordinance imposes certain requirements on the Town regarding the interest rate and maturity of the Exchanged Revenue Bands. To effect such exchange, the Town shall deliver to each holder of outstanding Notes, on the maturity date of such Notes, a principal amount of its Exchanged Revenue Bands equal to the principal amount of outstanding Notes held by such Nateholder. The serial numbers of the Exchanged Revenue Bands to be delivered to each Nateholder shall be determined by lot among all of the holders of outstanding Notes. Notice of the exchange of Exchanged Revenue Bonds for Notes shall be given not less than thirty (30) days prior to May 1, 1984, by publication and by mail in the manner provided for giving notice of redemption of the Notes. For the purpose of receiving notice by mail the holder of any Note may at any time furnish his name and address to the Paying Agent. Upon receipt of Exchanged Revenue Bonds each holder of such outstanding Notes shall deliver his exchanged Note or Notes to the Paying Agent for cancellation. This Note and the interest hereon do not constitute a debt or an indebtedness of the Town within the meaning of any constitutional or statutory provision or limitation of the State -38- ~- ~ ~ of Colorado or any provision or limitation of the Charter of the Town. This Note is not payable in whole or in part from the proceeds of general property taxes and the fu11 faith and credit of the Town is not pledged to pay the principal of or interest on this Note. No portion of the proceeds of the sales tax collected by the Town has been pledged to the payment of the principal of or interest on the Notes. Payment of the bebt Service Requirements of this Note shall be made solely from, and as security for such payment there are irrevocably and exclusively pledged, pursuant to the Ordinance, two special funds thereby created and identified as the "Town of Vail, Colorado, Construction Loan Refunding Notes, Series November 1, l9$l, Note Fund" {the Nate Fund) and the "Town of Vail, Colorado, Construction Loan Refunding Notes, Series November 1, 19$l, Reserve Fund" {the Reserve Fund), into which funds the Town has covenanted in the Ordinance to pay the 17ebt Service Requirements of the Notes of the series of which this Note is one from the net proceeds of the General Obligation Bonds or the Issued Revenue Bonds, when and if issued, sold and delivered, and to pay the interest on this Note except as otherwise provided in the Ordinance solely from the Net Project Revenues and to maintain a specified reserve for such purposes. In addition, the-Town may at its option augment such funds with any other moneys of the Town legally available for expenditure for the purposes thereof as provided in the Ordinance. It is hereby recited, certified and warranted that for the payment of this Note and of the interest hereon, the Town has created and will maintain said special funds and will deposit -39- K • therein the net proceeds of the General Obligation Bonds or the Issued Revenue Bonds, when and if issued, sold and delivered, and Net Project Revenues, out of the amounts, proceeds and revenues specified in the Ordinance referred to above authorising the issuance of this Note, and out of said special funds, as an irrevocable charge thereon, will pay this Note and the interest hereon, in the manner provided by the Ordinance, except to the extent that the Town has exchanged its Exchanged Revenue Bond or Bonds for this Note on its maturity. The Notes of the series of which this is one are equitably and ratably secured by a lien on the net proceeds of the General Obligation Bonds or the Issued Revenue Bonds, when and if issued, sold and delivered, and the Net Project Revenues, and such Notes constitute an irrevocable, exclusive first lien upon the net proceeds of the General Obligation Bonds or the Issued Revenue Bonds, when and if issued, sold and delivered, and the Net Project Revenues. Except as otherwise expressly provided in this Note and the Ordinance, the net proceeds of the General Obligation Bonds or the Issued Revenue Bonds, when and if issued, sold and delivered, are pledged and set aside to the payment of this Note and the notes of the series of which this is one, and the Net Project Revenues are pledged and set aside to the payment of the interest hereon and thereon, all in anticipation of the collection of the Net Project Revenues and the issuance, sale and delivery of the General Obligation Bonds or the Issued Revenue Bonds. ..4p_ ,. ~~ • The Town covenants and agrees with the holder of this Note and with each and every person who may become the holder hereof that it will keep and will perform all of the covenants of this Note and of the Ordinance. In the ordinance the Town has agreed that it shall in good faith make every reasonable effort to sell a sufficient amount of its General Obligation Bonds or its Sssued Revenue Bonds at one time or from time to time sa that on or before May 1, 1384, there will have been sufficient net proceeds from such band sales which, together with other legally available funds accumulated in the Note Fund and the Reserve Fund, will have been applied by the Town to pay in full the Debt Service Requirements for all of the outstanding Notes of the issue of which this is one. Any outstanding Notes not so paid from the Note Fund and the Reserve Fund shall be exchanged for the Town's Exchanged Revenue Bonds as provided in the Ordinance. Reference is hereby made to the Ordinance, and to any and all modifications and amendments thereof, for a description of the provisions, terms and conditions upon which the Notes of the series of which this is one are issued and secured, including, with out limitation, the nature and extent of the security for the Notes, provisions with respect to the custody and application of the proceeds of the Notes, the collection and disposition of the revenues and moneys charged with and pledged to the payment of the Debt Service Requirements of the Notes, the terms and conditions on which the Notes are issued, a description of said special funds referred to above and the -41- ~~ ~ ~ nature and extent of the security and pledge afforded thereby for the payment of the Debt Service Requirements ana the manner of enforcement of said pledge, the agreements concerning exchange of the Exchanged Revenue Bonds for the Notes, as well as the rights, duties, immunities and obligations of the Town and the members of its Town Council and also the rights and remedies of the holders of the iVotes. To the extent and in the respects permitted by the Ordinance, the provisions of the Ordinance, or any instrument amendatory thereof or supplemental thereto, may be maditiea oramended by action of the Town Council taker. in the manner and subject to the conditions and exceptions proviaea in tine Ordinance. The pledge of net proceeds, revenues and other obligations of the Tawn under the Ordinance may be aischarged at or prior to the maturity of the Notes upon the making of provision for the payment of the Notes on the terms anti conditions set forth in the Ordinance. Tt is hereby recited, certified and warranted that all the requirements of law have been fully complied with by the proper officers of the Town in the issuance of this Mote; that it is issued pursuant to and in strict conformity with the Constitution of the State of Colorado, including Article XX, Section 6 thereof, the Town Charter, part 1 of article 56 of title il, Colorado Revised Statutes 1973, as amended, and all other laws of the State of Colorado thereunto enabling, and with the Ordinance and any instrument supplemental thereto; that this Note does oat contravene any constitutional or statutory -42- limitation of the State of Colorado or any limitation of the Town Charter; and that this Note and series of which it is one are issued Ordinance. For the payment of this Note and Town pledges the exercise of all its This Note is transferable only u each of the other Hates of under the authority of the the interest hereon, the lawful corporate powers. ion the books of the Town kept by the Paying Agent as registrar, by the registered owner hereof in person or by his duly authorized attorney, and similarly Hated hereon, subject to the conditions provided in the Ordinance. IN WITNESS WHEREOF, the Town Council of the Town of Vail, Colorado, has caused this mate to be executed in its name and on its behalf with the facsimile signature of the Mayor of the Town, to be sealed with a facsimile of the seal of the Town, and to be signed and attested by the manual signature of the Town Clerk of the Town all as of the 1st day of November, 1981. TOWN OF VAIL, COLORADO (FACSTMTLE) ( SEAL ) Attest: (Manual Signature) Town Clerk By: (Facsimile Signature) Mayor (End of Form of Registered Note) -43- ~~ {Form of Registration Panel) This Note is registered in the office of the Paying Agent, as Registrar, in the name of the owner listed below, and the principal amount of this Note and interest thereon shall be payable only to such owner, all in accordance with the Ordinance authorizing the issuance of this Note. Date of Name of Signature at Registration Registered Owner (End of Form of Registration Panel) Registrar -44- ~~ C. Notes EQually Secured. • The covenants and agreements herein set forth to be performed on behalf of the Town shall be for the equal benefit, protection and security of the holders of any and all of the Notes and coupons pertaining thereto, if any, all of which shall be of equal rank without preference, priority or distinction of any of the Notes or coupons, if any, over any other thereof, except as otherwise expressly provided in or pursuant to this Ordinance. __D. Special Obligations. A11 of the Notes, as to all Debt Service Requirements thereof, shall be payable and collectible solely out of the net proceeds of the Parking Facility General Obligation Bonds or the Parking Facility Revenue Bonds issued for such purpose, when and if issued, sold and delivered, and with the Net Project Revenues being pledged solely except as provided herein to pay interest on the Notes, which proceeds and revenues are hereby sa pledged for that purpose. The holder or halders,af any of the Notes or coupons, if any, may not look to any general or other fund of the Town for payment of the Debt Service Requirements, except the herein-designated special funds pledged therefor. The Notes and coupons appertaining thereto, if any, shall not constitute an indebtedness or a debt of the Town within the meaning of any constitutional or statutory provision or limitation of the State of Colorado or any provision or limitation of the Charter. The Notes and coupons shall not be considered or held to be general obligations of the Town but shall constitute the special and limited obligations of the Town. The Notes are not payable inwhole or in part from the -~5- ~~ ~ ~ proceeds of general property taxes and the full faith and credit of the Tawn is not pledged for payment of the Notes or their coupons. No portion of the proceeds of the Sales Tax is pledged to the payment of the Debt Service Requirements of the Notes. Section 5. Fsnds Created by Ordinance. A. Disposition of Note Proceeds and Other Revenues; Security Far Notes. The proceeds from the sale of the Notes, the net proceeds of the Parking Facility General Obligation Bands or the Parking Facility Revenue Bonds issued for such pupase, when and if issued, sold and delivered, all Net Project Revenues received by the Town from the Project, and certain other funds described herein shall be deposited by the Town in the funds described in this Section 5, to be accounted for in the manner and priority set forth in this Section 5. The validity of the Notes shall not be dependent on nor be affected by the validity or regularity of any proceedings relating to the Project or any part thereof. The Purchaser of the Notes, any associate thereof, and any subsequent holder of any Notes shall in no manner be responsible for the application or disposal by the Tawn or by any of its officers, agents and employees of the moneys derived from the sale of the Notes or of any other moneys designated in this Section S. Until the proceeds of the Notes are applied as provided in this Section 5, the proceeds of the Notes shall be subject to a Tien thereon and pledge thereof for the benefit of the holders of the Notes from time to time as provided in this Section 5. The net proceeds of the Parking Facility General Obligation -~6- ~ ~ Bands or the Parking Facility Revenue Bonds issued for such purpose, when and if issued, sold and delivered, and all moneys and securities paid or to be paid to or held or to be held in any fund or account hereunder are hereby pledged to secure the payment of the Debt Service Requirements of the Notes, subject to the provisions herein relating to the Escrow Fund and provided that the Net Project Revenues are hereby pledged solely for payment of interest on the Notes except that to the extent payment of interest on the Notes is fully provided for in any Fiscal Year, the Net Project Revenues may then be applied toward payment of principal of the Notes; and this pledge shall be ya.lid and binding from and after the date of the first delivery of the Notes, and the moneys, as received by the Town and hereby pledged, shall immediately be subject to the lien of this pledge without any physical delivery thereof, any filing, or further act, and the lien of this pledge and the obligation to perform the contractual provisons hereby made shall have priority aver any or all other obligations and liabilities of the Town (except as herein otherwise expressly provided}, and the lien of this pledge sha11 be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the Town (except as herein otherwise expressly provided), irrespective of whether such parties have notice thereof. B. Escrow Fund. A special fund is hereby created and designated as the "Town o£ Vail, Colorado, Construction Loan Refunding Notes, Series November 1, 1981, Escrow Fund." The proceeds of the Notes, except the sums required in Section 5C -47- ~~ • hereof to be deposited in the Note Fund and except the sums required to pay the costs and expenses of issuing the Notes, shall be deposited in the Escrow Fund as provided in the Escrow Agreement. The appropriate officials of the Town as designated in the Escrow Agreement are hereby authorized to execute the Escrow Agreement on the behalf and in the name of the Town and so to enter into a contract with the Escrow Bank as provided in the ESCrOW Agreement, upon its completion as tq form. The Town sha11 purchase the Federal Securities in which the funds in the Escrow Fund are to be invested as provided in the Escrow Agreement and in accordance with the proposal submitted by the Purchaser. The Escrow Fund shall be maintained by the Town in an amount at the time of the deposit therein, and at all times subsequently, at least sufficient, together with the known minimum yield to be derived from the initial investment of the deposits therein or any part thereof in Federal Securities, to pay any reasonable charges of the Escrow Bank payable from such fund in connection therewith and to pay the principal and interest due in connection with the Prior Obligations, both accrued and not accrued, as the same became due. Moneys shall be withdrawn by the Escrow Bank from the Escrow Fund in sufficient amounts and times to permit the payment without default of the principal and interest due in connection with the Prior Obligations at their principal and interest payment dates. Any moneys remaining in the Escrow Fund after provision shall have been made for the redemption in full of the Prior Obligations shall be applied to any lawful purposes of the Town as the Town Council may hereafter determine. If for any reason _~g_ ~y the amount in the Fscrow Fund shall at any time be insufficient for the purposes hereinbefore set forth, the Town shall forthwith from the first moneys available therefor deposit in such account such additional moneys as shall be necessary to permit the payment in full of the principal and interest due in connection with the Prior Obligations as herein provided. C. Note Fund. A special fund is hereby created and designated as the "Town of Vail, Colorado, Construction Loan Refunding Notes, Series November I, 1981, Note Fund." The Town shall deposit in the the Note Fund, forthwith upon receipt of the proceeds of the Notes, interest accrued thereon from their date to the date of delivery thereof to the Purchaser. As Net Project Revenues are received they shall be credited immediately to the Note Fund. From Net Project Revenues and other legally available moneys of the Town, on or before the due date of each respective installment of interest, there shall be credited to the Note Fund, the next maturing installment of interest due on the Notes then Outstanding. The moneys credited to the Note Fund shall be used to pay the interest on the Notes then Outstanding, as such interest becomes due. When and if the Town has issued, sold and delivered the Parking Facility General Obligation Bonds or the Parking Facility Revenue Bonds issued for such purpose, the net proceeds of the said Bonds received from time to time shall be credited to the Note Fund to be applied to the Debt Service Requirements of the Notes, upon the redemption or maturity thereof. -49- ~~ D. Reserve Fund, A special fund is hereby created and designated as the "Town of Vail, Colorado, Construction Loan Refunding Notes, Series ~lovember 1, 1981, Reserve Fund." The Town shall deposit in the Reserve Fund, forthwith upon delivery to the Purchaser o£ the Bonds, from funds currently on deposit in the "Town of Vail, Colorado, Series May ~., 1980, Construction Loan Notes, Reserve Fund," and any funds of the Town legally available far this purpose, the sum of $320,000. The Town shall accumulate the Reserve Fund by depositing thereto from investment earnings on the Reserve Fund or from any of its other funds legally available for this purpose on each interest payment date beginning May 1, 1982, and ending on November 1, 1983, the sum of $25,000, so that on November 1, 1983, the sum on deposit in the Reserve shall equal $420,000. The moneys in the Reserve Fund shall be used only to prevent deficiencies in payment of the Debt Service Requirements of the Notes to the extent that funds in the Note Fund are not sufficient for that purpose. The moneys so used shall be replaced in the Reserve Fund, promptly upon receipt thereof, from any other funds of the Town legally available for this gurpose, until Reserve Fund has been reaccumulated to the level prescribed herein. E. Termination of Deposits; Use of Moneys in Nate Fund and Reserve Fund. No payment need be made into the Note Fund or the Reserve Fund, or both, if the amount in the Note Fund and the amount in the Reserve Fund total a sum at least equal to the entire amount of the Outstanding Notes, as to all Debt Service -50- ~ R~-rs • Requirements, to their maturity or to any redemption date on which the Town shall have excercised or shall. have obligated itself to exercise its option to redeem, prior to maturity, any Notes, then Outstanding, and thereafter maturing, both accrued and not accrued (provided that, solely for the purpose of this Section 5E, there shall be deemed to be a credit to the Reserve Fund of moneys, Federal Securities and bank deposits, or any combination thereof, accounted for in any other account or accounts of the Town and restricted solely for the purpose of paying the Debt Service Requirements), in which case moneys in the Nate Fund and the Reserve Fund in an amount, except for any known interest or other gain to accrue from any investment or deposit of moneys pursuant to Section 5H hereof from the time of any such investment or deposit to the time or respective times the proceeds of any such investment or deposit shall be needed for such payment, at least equal to such Debt Service Requirements, shall be used together with any such gain from such investments and deposits solely to pay such Debt Service Requirements as the same become due; and any moneys in. excess thereof in the Note Fund and the Reserve Fund and any other moneys derived from the Net Project Revenues or otherwise pertaining to the Project may be used in any lawful manner determined by the Town. F. Budget and Appropriation of Funds. The sums provided to make the payments specified in this Section 5 are hereby appropriated for said purposes, and said amounts for each year shall be included in the annual budget and the appropriation -51- • -~ ! ordinance or measures to be adopted or passed by the Town Council in each year respectively while any of the Notes, either as to principal or interest, are Outstanding and unpaid. No provisions of any constitution, statute, charter, ordinance, resolution, or other order or measure enacted after the inssuance of the Notes shall in any manner be construed as limita.ng or impairing the obligation of the Town to keep and perform the covenants contained in this Ordinance so long as any of the Notes remain Outstanding and unpaid. Nothing herein shall prohibit the Town Council from appropriating and applying other funds of the Town legally available for such purpose to the Note Fund for the purpose of providing for the payment of the grincipal of, interest on, or any premium due in connection with the redemption of the Notes. G. Places and Times of Deposits. The special funds created in Sections 5B and 5C hereof shall be maintained in a Degository as book accounts kept separate and apart from all other accounts or funds of the Town as trust accounts solely for the purposes herein designated therefor. For purposes of investment of moneys, nothing herein prevents the commingling of moneys accounted for in any two or mare such book accounts pertaining to the Net Project Revenues or to such fund and any other funds of the Town to be established under this Ordinance. Such book accounts sha11 be continuously secured to the fullest extent required or permitted by the laws of the State of Colorado for the securing of public funds and sha11 be irrevocable and not withdrawable by anyone for any purpose other -52- ;'~ ~ than the respective designated purposes of such funds or accounts. Fach periodic payment shall be credited to the proper book account not later than the date therefor herein designated, except that when any such date shall be a Saturday, a Sunday or a legal holiday, then such payment shall be made on or before the next preceding business day. H. Investment of Funds. Any moneys in the special funds created in Sections SC and 5D hereof may be deposited, invested, or reinvested in any manner permitted by law. Securities or obligations purchased as such an investment shall either be subject to redemption at any time at face value by the holder thereof at the option of such holder, or shall mature at such time or times as shall most nearly conincide with the expected need far moneys from the fund in question. Securities or obligations so purchased as an investment of moneys in any such fund shall be deemed at all times to be a part of the applicable fund, and, with the exception of the Reserve Fund, the interest accruing on such investments and any profit realized or any loss resulting therefrom shall be credited to or charged against the such fund. Interest and profit realized from investments in the Reserve Fund shall be credited to the Reserve Fund, provided that, so long as the amount in the Reserve Fund equals the amount ultimately required by Section 5D hereof to be accumulated therein, such interest and profit may be transferred to the Note Fund and distributed in the same manner as other moneys in the Note Fund. Any loss resulting from such investments in the Reserve Fund shall be charged to the Reserve -53- ! -t • Fund. The Town shall present for redemption or sale on the prevailing market any securities or obligations so purchased as an investment of moneys in a given fund whenever it shall be necessary to do so in order to provide moneys to meet any required payment or transfer from such fund. The Town shall have no obligation to make any investment or reinvestment hereunder, unless any moneys on hand and accounted for in any one account exceeds $5,000 and at least $5,000 therein will not be needed for a period of not less than sixty (60) days. In such event the Town shall invest or reinvest not less than substantially all of the amount which will not be needed daring such sixty {60) day period, except far any moneys on deposit in an interest bearing account in a Depository, without regard to whether such moneys are evidenced by a certificate of deposit or otherwise, pursuant to this Section 5H and Section 5,I hereof; but the Town is not required to invest, or so to invest in such a manner, any moneys accounted for hereunder if any such investment would contravene the covenant concerning arbitrage in section 6A hereof. I. No Liability for Losses Incurred in performing Terms of Ordinance. Neither the Town nor any officer of the Town shall be liable ar responsible for any loss resulting from any investment ar reivestment made in accordance with this Ordinance. J. Character of Funds. The moneys in any fund herein authorized shall consist of lawful money of the United States or investments permitted by Section 5H hereof or both such money and such investments. Money deposited in a demand or time -54- -~ ~ deposit account in or evidenced by a certificate of deposit of a Depository pursuant to Sections 5G and 5H hereof, appropriately secured according to the laws of the State of Colorado, shall be deemed lawful money of the United States. Section 6. Convenants and Provisions. The Town hereby particularly covenants and agrees with the holders of the Notes and coupons appertaining thereto from time to time, and makes provisions which shall be part of its contract with such holders, which covenants and provisions shall be kept by the Town continuously until all of the Notes and the interest thereon, have been fully paid and discharged, to the effect and purpose that: A. Arbitrage Covenant. The Town covenants with the holders of the Notes that it will make no use of the proceeds of the Notes at any time during the term thereof which, if such use had been reasonably expected on the date of Notes are issued, would have caused the Notes to be arbitrage bonds within the meaning of Section 103(c) of the Internal Revenue Code of 1954, as amended, and the regulations proposed ar prescribed thereunder by the United States Treasury Department, unless, under any provision of Zaw hereafter enacted, the interest paid on the Notes (a} shall be excludable from the gross income of arecipient thereof for federal income tax purposes without regard to whether or not such Notes are arbitrage bonds, or (b} shall be exempt from all federal .income taxation. B. Sale of General Obligation or Revenue Bonds. The Town shall in gpOd faith .make every reasonable effort to sell a -55- ~ ~ ~ sufficient amount of its Parking Facility General obligation Bonds or its Parking Facility Revenue Bonds at one time or from time to time so that on or before May 1, 1984, there will. have been sufficient net proceeds from such bond sales which, together with other legally available funds accumulated in the Note Fund ar~d the Reserve Fund, will have been applied by the Town to pay in full the Debt Service Requirements for all of the outstanding Notes. Specifically, unless on or before May 1, 1983, the Town has accumulated in the Note Fund moneys sufficient to pay the Notes, as to all Debt Service Requirements, at maturity or on prior redemption, the 'down shall forthwith initiate proceedings to ca11 and shall thereafter as soon as practicable hold an election for the purpose of authorizing the issuance of its Parking Facility General Obligation Bonds at then current market interest rates. If the Town issues Revenue Bands in satisfaction of its obligation under this Section 6B, such Revenue Bonds shall have a maximum net effective interest rate of fifteen per centum (150} per annum. Any outstanding Notes not so paid from the Note Fund and the Reserve Fund shall be exchanged for the Town's Revenue Bands as provided in Section 6C hereof. C. Exchange Covenant. To the extent that the sums accumulated in the Note Fund and the Reserve Fund on May 1, 1984, are not sufficient to pay the principal of all of the outstanding Notes at their maturity, the Town shall exchange its Parking Facility Revenue Bonds for alI of such remaining outstanding Notes, and in such event the holders of such -5b- +~ 1 -~ remaining outstanding Notes shall be required to accept such exchange Revenue Bonds in lieu of the payment of the principal of the Notes without further recourse against the Town for such payment of principal. Interest on such Notes exchanged for Revenue Bonds shall cease to accrue from and after May 1, 1984. The Parking Facility Revenue Bands issued for exchange purposes shall be dated May 1, 1984, and sha11 bear interest from said date at an interest rate as determined by ordinance of the Town Council which shall not be less than two percentage points greater than the interest rate of the Note or Notes in question and provided that the net effective interest rate for the Revenue Bonds to be exchanged for such Nate or Notes shall not exceed fifteen per centum (150) per annum. The exchange Revenue Bonds shall mature in not more than ten (10) years from date of issuance pursuant to a schedule of maturity determined by the Town Council by ordinance. The Parking Facility Revenue Bonds to be so exchanged may be issued in bearer or registered form, may be redeemable at the option of the Town at such prices on such dates and may be in such form as shall be determined by ordinance of the Tawn. The terms and provisions of the ordinance authorizing the issuance of the Parking Facility Revenue Bonds to be so exchanged and the delivery of such bonds tp the holders of matured but unpaid Notes in exchange therefor shall provide that the principal of and interest on such exchange Parking Facility Revenue Bonds sha11 be payable as authorized by the Charter from the Net Project Revenues and any tax other than an ad valorem tax or any other legally available funds of the Town as determined by the Town Council, The Town -57- • ~• Council shall determine all other terms, provisions and covenants to be set forth in such authorizing ordinance. To effect such exchange, the Tawn shall deliver to each holder of Outstanding Notes, on the maturity date of such Notes, a principal amount of its exchange Revenue Bonds equal to the principal amount of Outstanding Notes held by such Noteholder. The serial numbers of the Parking Facility Revenue Bonds to be sa delivered to each Noteholder shall be determined by lot among all of the holders of Outstanding Notes. Notice of the exchange of Revenue Bonds for Notes shall be given not less than thirty (30) days prior to May 1, 1984, by publication and by mail in the manner provided in this Ordinance for notice of ~edemption. Far the purpose of receiving notice by mail the holder of any • Note may at any time furnish his name and address to the Paying Agent. Upon receipt of said exchange Parking Facility Revenue Bonds each holder of such matured Notes shall deliver his exchanged Note or Notes to the Paying Agent for cancellation. D. Restrictions on Future Financing. The Town covenants and agrees that until the principal of and interest on the Notes have been paid in full, the Town will not issue, se].1 or deliver any future Obligations payable in whole or in part, on a first lien or subordinate lien basis, from the Capital Tmpravements and Open Space Fund or the Sales Tax Revenues, nor will it issue, without the written consent of the Purchaser, any future Obligations payable from the revenues derived from the Town's land transfer tax, except for any bands, notes, warrants or other securities refunding any Obligation of the Town. --58- ~ ~ E. Rate Maintenance Covenant. The Town shall impale and collect Gross Project Revenues for the Project which shall produce i3et Project Revenues which shall be sufficient, together with other legally available funds, to pay when due and in full the interest on the Notes. F. Efficient Operation and Maintenance. The Town shall at all times operate the Project properly and in a sound and economical manner. The Town shall maintain, preserve and keep the Project properly or cause the same so to be maintained, preserved, and kept, with the appurtenances and every part and parcel thereof in good repair, working order and condition, and shall from time to time make or cause to be made all necessary and proper repairs, replacements and renewals so that at all times the maintenance of the Project may be properly and advantageously conducted. G. Protection of Security. The Town, its officiers, agents and employees, shall not take any action in such manner or to such extent as might prejudice the security .for the payment of the Debt Service Requirements of the Notes. No contract shall be entered into nor any other action taken by which the rights of any holder of any Notes might be grejudicially and materially impaired or diminished. H. Disposal of Project Prohibited. Neither all nor a substantial part of the Project shall be sold, mortgagea, pledged, encumbered, alienated or otherwise disposed of, nor shall the Town dispose of its title to the Project or to any useful part thereof, including any property necessary to the operation and use of the Project and Lands and interests in -59- ~i ` • • lands comprising the Project, until all of the Notes have been paid in full, as to all Debt Service Requirements, or unless fu11 provision has been made therefor. I. Surety Bonds. Each official or other person having Custody of any revenues and funds pledged herein or responsible for their handling, shall be fully bonded at all times, which bond shall be conditioned upon the proper application of said moneys. The costs of each such bond shall be considered one of the operating costs of the Project, unless otherwise provided by law. J. Tnspection of Records. Any holder of any of the Notes, any du~.y authorized agent or agents of such holder, or the Purchaser of the Notes, shall have the right at all reasonable times to inspect al.l records, accounts and data relating thereto, concerning the Project, the revenues and funds pledged herein, or all or any other combination thereof, to make copies of such records, accounts and data at the holder`s or Purchaser's expense, and to inspect the Project. K. Audits Required. The Town, annually foJ_lowing the close of each Fiscal Year, shall order an audit for the Fiscal Year of the books and accounts pertaining to the Project to be made forthwith by an independent accountant, and order an audit report showing the receipts and disbursements for.each fund or account pertaining to the Project, the revenues and funds pledged herein, or all or any other combination thereof. P,ll expenses incurred in the making of the audits and reports required by this Section 6K sha11 be regardea and paid as an Operation and Maintenance Expense. -60- ~~ L. Insurance and Reconstruction. The Town shall at all all times maintain with responsible insurers all such insurancereasanably required and obtainable within limits and at costs deemed reasonable by the Town as is customarily maintained with respect to parking facilities of like character aginst loss of ar damage, against loss of Net Project Revenues, and against public and other liability to the extent at least reasonably necessary to protect the interests of the Tawn and of each holder of a Note, except as herein otherwise provided. If any useful part of the Project sha11 be damaged or destroyed, the Town shall, as expeditiously as possible, commence and diligently prosecute the repair ar replacement of the damaged or destroyed property so as to resare the same to use. The proceeds of any insurance appertaining to the Project shall be payable to the Town and (except far proceeds of use and occupancy insurance} shall be applied to the necessary costs involved in such repair and replacement, and to the extent not sv applied shall (together with the proceeds of any such use and occupancy insurance} be deposited in the Note Fund. Section 7. Defeasance. When all of the Debt Service Requz.rements of the Notes have been duly gaid or the Parking Facility Revenue Bonds have been authorized to be issued and notice has ~aeen given and the Parking Facility Revenue Bonds have been made available for note exchange purposes as provided in Section bC hereof, all obligations hereunder shall thereby be discharged and the Notes shall no longer be deemed to be Outstanding. There shall be -fil- deemed to be such due payment when the Town has placed in escrow or in trust with a trust bank located within or without the State of Colorado, moneys or Federal Securities in an amount sufficient (including the known minimum yield available foz such purpose from Federal Securities in which such amount wholly or in part may be initially invested) to meet all Debt Service Requirements of the Notes, as the same become due to the final maturities of the Notes or upon any redemption date as of which the Town shall have excerised or shall have obligated itself to exercise its prior redemption option by a call of Notes for payment then. The Federal Securities shall become due prior to the respective times at which the proceeds thereof shall be needed, in accordance with a schedule established and agreed upon between the Town and such bank at the time of the creation of the escrow or trust, or the Federal Securities shall be subject to redemption at the option of the holder thereof to assure such availability as so needed to meet such schedule. Section 8, Amendment of Ordinance. A. Amendment of Ordinance Not Requiring Consent of Noteholders. The Town may, without the consent of, or notice to, the holders of the Notes, adopt such ordinances supplemental hereto (which supplemental amendments shall thereafter form a part hereof) for any one or more or all of the following purposes: (a} To cure any ambiguity, or to cure, correct or supplement any defect or inconsistent provision contained in this Ordinance, oz to make any provisions with respect to -52- •C ~ ~ matters arising under this Ordinance or for any other purpose if such provisions are necessary or desirable and do not adversely affect the interests of the holders of the Notes or coupons; or (b} To subject to this Ordinance additional revenges, properties ar collateral. B. Amendment of Ordinance Requiring Consent of Noteholders. Exclusive of the amendatory ordinances covered by Section 8A hereof, this Ordinance may be amended by ordinance, without receipt by the Town of any additionai. consideration, but with the written consent of the holders of sixty-six percent (b6$} in aggregate principal amount of the Notes Outstanding at the time of the adoption of such amendatory ordinance, provided that no such amendatory ordinance shall permit: {1} Changing Payment. A change in the maturity or in the terms of redemption of the principal of any Outstanding Note or any installment of interest thereon; or (~} Reducing Return. A reduction in the principal amount of any Note ,__ the ._~~~~__9.f._interest thereon, or any prior redemption premium payable in connection therewith, without the consent of the holder of the Note; or (3} Prior Lien. The creation of a lien upon oz a pledge of revenues ranking prior to the lien or to the pledge created by this Ordinance; or (4} Modifying Amendment Terms. A reduction of the principal amount or percentages of Notes, or any modification otherwise affecting the description of Notes, or otherwise -63- ~~ ~ ~ changing the consent of the holders of Notes, which may be required herein for any amendment hereto; or (5) Priorities Between Notes. The establishment of priorities as between Notes issued and Outstanding under the provisions of this Ordinance; or {6) Partial Modification. Any modifications otherwise materially and prejudicially affecting the rights or privileges of the holders of less than all of the Notes then Outstanding. Whenever the Town Council proposes to amend or modity this Ordinance under the provisions of this Section 8B it shall give notice of the proposed amendment by publication at Least one (1) time by one (1) publication, in The Vail Trail, Vail, Colorado, if then in business and publishing (and, if not, then in a newspaper of general circulation in the Tawny, and in The Daily Bond Buyer, New York, New York, if then in business and publishing {and, if not, then in a similar financial newspaper published in New York, New York), such notice to be deemed complete upon the last such publication; and copies of such notice shall be mailed within thirty (30) days after such last publication to the Purchaser of the Notes, or to any successor thereof known to the Town Clerk and to all registered owners and all such holders of Notes as have furnished their names and addresses to the Paying Agent pursuant to Section 4 hereof. Such notice shall briefly set forth the nature of the proposed amendment and shall state that a copy of the proposed amendatory ordinance or other instrument is on file in the office of the Town Clerk for public inspection. -64- ~ ~ ~ ~. C, Time for Amendment. Whenever at any time within one {1) year from the date of the completion of the notice required to be given by Section 8B hereof there shall be filed in the office of the Town Clerk an instrument or instruments executed by the holders of at least sixty-six percent (66~} in aggregate principal amount of the Notes then Outstanding, which instrumentor instruments shall refer to the proposed amendatory ordinance or other instrument described in such notice and shall specifically consent to and approve the adoption of such ordinance or other instrument, thereupon, but not otherwise, the Town Council may adopt such amendatory ordinance or instrument and such ordinance or instrument sha11 become effective. If the Holders of at least sixty-six percent {66~} in aggregate principal amount of the Notes then Outstanding, at the time of the adoption of such amendatory ordinance or instrument, or the predecessors in title of such holders, shall have consented to and approved the adoption thereof as herein provided, no holder of any Note whether or not such holder shall have consented to or shall have revoked any consent as herein provided shall have any right or interest to object to the adoption of such amendatory ordinance or other instrument or to object to any of the terms or provisions therein contained or to the operation thereof or to enjoin or restrain the Town from taking any action pursuant to the provisions thereof. Any consent given by the holder of a Note pursuant to the provisions hereof shall be irrevocable for a period of six {~} months from the date of the completion of the notice above provided for and shall be -65W •~ ~ !- conclusive and binding upon all future holders of the same Note during such period. Such consent may be revoked at any time after six (6) months from the completion of such notice, by the holder who gave such consent or by a successor in title, by filing notice o£ such revocation with the Town Clerk, but such revocation shall, not be effective if the holders of sixty-six percent (66~) in aggregate principal amount of the Notes Outstanding as herein provided, prior to the attempted revocation, shall have consented to and approved the amendatory instrument refered to in such revocation. D. Unanimous Consent. Notwithstanding anything in the foregoing provisions contained, the terms and the provisions of this Ordinance, or of any ordinance or other instrument amendatory thereof and the rights and the obligations of the Town and of the holders of the Notes and coupons, if any, thereunder may be modified or amended in any respect upon the adoption by the Town and upon the filing with the Town Clerk of an instrument of the that effect and with the consent of the holders of all the then Outstanding Notes, such consent to be given in the manner provided in Section 8C hereof; and no notice to holders of Notes, either by mailing or by publication, shall be required as provided in Section 8B hereof, nor shall the time of consent be limited except as may be provided in such consent. E. Exclusion of Town's Notes. At the time of any consent or of other action taken hereunder the Town shall furnish to the Town Clerk a certificate, upon which the Town Clerk may rely, describing all Notes to be excluded for the purpose of consent --66- • .. or of other action or of any calculation of Outstanding Notes provided for hereunder, and, with respect to such excluded Notes, the Town shall not be entitled or required with respect to such Notes to give or obtain any consent ar to take any other action provided for hereunder. F. Notation on Notes. Any of the Notes delivered after the effective date of any action taken as provided in this Section 8, or Notes Outstanding at the effective date of such action, may bear a notation thereon by endorsement ar otherwise in form approved by the Town Council as to such action; and if any such Note sa authenticated and delivered after such effective date does not bear such notation, then upon demand of the holder of any Note Outstanding at such effective date and upon presentation of this Note for such purpose at the principal office of the Town, suitable notation shall be made on such Note by the Town Clerk as to any such action. If the Tawn Council so determines, new Notes sa modified as in the opinion of ,the Town Council to conform to such action shall be prepared, authenticated and delivered; and upon demand of the holder of any Nate then Outstanding, shall be exchanged without cost to such holder for Notes then Outstanding upon surrender of such Outstanding Notes with all unmatured coupons, if any, pertaining thereto. G. Proof of Instruments and Notes. The fact and date of execution of any instrument under the provisions of this Section 8, the amount and number of the Notes held by any person executing such instrument, and the date of this holding the same may be proved as provided by Section 8H hereof. w67- h H. Evidence of Noteholder. Any request, consent or other instrument which this Ordinance may require ar may permit to be signed and to be executed by the holder of any Notes or other securities may be in one instrument or more than one instrumentof similar tenor and shall be signed or may be executed by each holder in person or by his attorney appointed in writing. Proof of the execution of any such instrument or of any instrument appointing any such attorney, or the holding by any person of the securities or coupons pertaining thereto, if any, shall be sufficient for any purpose of this Ordinance {except as otherwise herein expressly provided) if made in the following manner: (1} Proof of Execution. The fact and the date of the execution by any holder of any Notes or other securities or his attorney of such instrument may be proved by the certificate, which need not be acknowledged or verified, of any officer of a bank or trust company satisfactory to the Town Clerk or of any notary public or other officer authorized to take acknowledgments of deeds to be recorded in the state in which he purports to act, that the individual signing such request or other instrument acknowledged to him the execution, duly sworn to before such notary public or other office; the authority of the individual or individuals executing any such instrument on behalf of a corporate holder of any securities may be established without further proof if such instrument is signed by an individual purporting to be the president or -b8- • • vice-president of such corporation with the corporate seal affixed and attested by an individual purporting to be its secretary or an assistant secretary; and the authority of any person or persons executing any such instrument in any fiduciary or representative capacity may be established without further proof if such instrument is signed by a person or persons purporting to act in such fiduciary or representative capacity; and {2) Proof of Holding, The amount of Notes or other securities transferable by delivery held by any person executing any instrument as a holder of securities, and the numbers, date and other identification thereof, together with the date of his holding the securities, may be proved by a certificate which need not be acknowledged or verified, in form satisfactory to the Town Clerk, executed by a member of a financial firm or by an officer of a bank or trust company, insurance company or financial corporation or other depository satisfactory to the Town Clerk, or by any notary public or other officer authorized to take acknowledgments of deeds to be recorded in the state in which he purports to act, showing at the date therein mentioned that such person exhibited to such member, officer, notary public or other officer so authorized to take acknowledgments of deeds or had an deposit with such depository the securities described in such certificate; but the Town Clerk may nevertheless in his or her discretion require further or other proof in cases where he or she deems - 69- ~~ ~ . 5 ~ the same advisable. Section 9. Miscellaneous. A. Character of Agreement. None of the convenants, agreements, or representations contained herein or in the Notes, shall ever impose or shall be construed as imposing anyliability, obligation, or charge against the Town (except for the special funds pledged therefor) or against the general credit of the Tawn payable out of general funds or out of any funds derived from general property taxes. B. No Pledge of Property. The payment at the Notes is not secured by an encumbrance, mortgage or other pledge of property of the Tawn except for the Net Project Revenues of the Town and the net proceeds of the Parking Facility General Obligation Bonds or the Parking Facility Revenue bonds issued for such purpose, when and if issued, sold and delivered. No property of the Tawn, subject to such exception with respect to the Net Project Revenues and the net proceeds of said Parking Facility General Obligation Bonds or Parking Facility Revenue Bonds, when and if issued, sold and delivered, pledged for the payment of the Notes, shall be liable to be forfeited or taken in payment of the Notes. C. Statute of Limitations. No action or suit based upon any Note or other obligation of the Town shall be commenced after it is barred by any statute of limitations pertaining thereto. Any trust ar fiduciary relationship between the Town and the holder of any Note or coupon or the obligee regarding any such obligation shall be conclusively presumed to have been repudiated on the maturity date or other due date thereof unless -7Q- _. the Note is presented for payment ar demand for payment of such other obligation is otherwise made before the expiration of the applicable limitation period. Any moneys from whatever source derived remaining in any account reserved, pledged or otherwise held £or the payment of any such obligation, action or suit, the collection of which has been barred, shall revert to the Capital Improvements and Qpen Space Fund, unless the Tawn Council shall otherwise provide by ordinance of the Town. Nothing herein prevents the payment of any such Note or other obligation after an action or suit far its collection has been barred if the Town Council deems it in the best interests of the Town or the public so to do and orders such payment to be made. D. Delegated puties. The officers of the Town are hereby authorized and directed to enter into such agreements and take all action necessary or appropriate to effectuate the provisions of this Ordinance and to comply with the requirements of law, including, without limitation: (1) Printing Notes. The printing of the Notes, including at the option of the Town Council the printing upon each such Note of a copy of the legal opinion of Ballard, Spahr, Andrews & Ingersoll, band counsel, duly certified by the Town Clerk; (2) Final Certificates. The execution of such certificates as may be reasonably required by the Purchaser, relating, inter olio, to: {a) The signing of the Notes; (b} The tenure and identity of the officials of the Town; -71- ~, ~ {c) If in accordance with fact, the absence of litigation, pending or threatened, affecting the validity of the Notes; (d) The delivery of the Notes and the receipt of the Nate purchase price; (e) The exemption of interest on the Notes from federal income taxation; and (f) The accuracy and adequacy of any information provided in any Note offering brochure, preliminary official statement, official statement or offering circular for prospective buyers of the Notes. (3) Information. The assembly and dissemination of financial and other information concerning the Town and the Notes and the making of various statments, recitals, certifications and warranties provided in the form of Note set forth in this Ordinance; {4) Official Statement or Offering Circular. The preparation of a Note offering brochure, preliminary official statement, official. statement, or offering circular, for the use of prospective buyers of the Notes, including, without limitation, such use by the Purchaser and its associates, if any; and (5) Note Sale. The execution of the Notes and the sale, issuance, and delivery of the Notes to the Purchaser pursuant to the provisions of the Note purchase agreement and this Ordinance. _72-- ~ ~ E. Successors. Whenever herein the Town is named or is referred to, such provison shall be deemed to include any successors of the Town, whether so expressed or not. All of the covenants, stipulations, obligations and agreements by or on behalf of and other provisions for the benefit of the Towncontained herein shall bind and inure to the benefit of any officer, board, district, commission, authority, agency, instrumentality or other person or persons to whom or to which there shall be transferred by or in accordance with Iaw any right, power or duty of the Tawn or of its respective successors, if any, the possession of which is necessary ar appropriate in order to comply with any such covenants, stipulations, obligations, agreements or other provisions hereof. ~'. Ricrhts and Immunities. Except as herein otherwise expressly provided, nothing herein expressed or implied is intended or shall be construed to confer upon or to give to any person, other than the Town and the holders from time to time of the Notes and the coupons thereunto pertaining, any right, remedy. or claim under or by reason hereof or any covenant, condition or stipulation hereof. All the covenants, stipulations, promises and agreements herein contained by and on behalf of the Town shall be for the sole and exclusive benefit of the Town and any holder of any of the Notes or coupons. No recourse shall be had for the payment of the Debt Service Requirements of the Notes or for any claim based thereon or otherwise upon this Ordinance authorizing their issuance or any other ordinance or instrument pertaining thereto, against any -73- * ;• • ~.ndivi,dual member, or any officer or other agent of the Town, past, present or future, either directly or indirectly through the Town, or otherwise, whether by virtue of any constitution, statute or rule of law, Charter provision or by the enforcement of any penalty or otherwise, all such liability, if any, being by the acceptance of the Notes and as a part of the consideration of their issuance specially waived and released. G. Ratification. All action heretofore taken (not inconsistent with the provisions of this Ordinance) by the Town or its officers, and otherwise by the Town airected: (1) Project. Toward the Project, and (2) Notes. Toward the sale and delivery of the Notes, be, and the same hereby is, ratified, approved and confirmed. H. Facsimile Signatures. Pursuant to the Uniform Facsimile Signature of Public Officials Act, part 1 of article 55 of title 11, Colorado Revised Statutes 1973, as amended, the Mayor and the Town Clerk shall forthwith, and in any event prior to the time the Notes are delivered to the Purchaser thereof, file in the Colorado Secretary of State their manual signatures certified by them under oath, using a suitable Facsimile Signature Certificate for said purpose. ~. Ordinance. This Ordinance is, and sha11 constitute, a legislative meausure of the Town, and after any of the Notes are issued, this Ordinance sha11 constitute an irrevocable contract between the Town and the holder or holders of the Notes; and this Ordinance, subject to the provisions of Sections 7 and 8 hereof, if any Notes are in fact issued, shall be and shall -74- !~ • • remain irrepealable until the Notes, as to all Debt Service Requirements, shall be fu11y paid, cancelled and discharged, as herein provided. J. Repealer. All ordinances, resolutions, bylaws, orders, and other instruments, or parts thereof, inconsistent herewith are hereby repealed to the extent only of such inconsistency. This zepealer sha11 not be construed to revive any ordinance resolution, by laws, order, or other instrument, or part thereof, heretofore repealed. Ii. Severability. If any section. subsection, paragraph, clause or other provisian of this Ordinance sha11 for any reason be held to be invalid or Unenforceable, the invalidity or unenforceability thereof shall not affect any of the remaining sections, subsections, paragraphs, clauses or provisions of this Ordinance. L. Emergency Ordinance. As determined in Section 2C hereof, an emergency exists and this Ordinance is deemed necessary far the preservation of public property, health, welfare, peace and safety, and therefore, this Ordinance shalt take effect immediately upon final passage. -75- ~~ _• ~, INTRODUCED, PASSED, ADOPTED, ENACTED, APPROVED AND ORDERED PUBLISHED ONCE TN FULL THIS 6th DAY OF OCTOBER, 1981.. (TOWN) (SEAL) Attest: ~~ ~~'vC ~ Town Clerk TOWN OF VATL, COLORADO ~, /~ / 1~~, ~, iv~ayoz % ~ ~ -76- !~ • • Council member seconded the motion, and the question being upon the passage and adoption of said emergency Ordinance, the roll was called with the following result: Council members voting "Yes": Mayor: Council Members: Council members voting "No": `~/t~C A11 [Five] members of the Council present having voted in favor of the adoption of the Ordinance, the Mayor thereupon declared the Ordinance duly passed and adopted as an emergency ordinance of the Town and directed that the Qrdinance be published once in ful]. in The Vail Trail, a legal newspaper Rodney E. Slifer R. Bud Benedict Pain. Johnston Robert Ruder Ronald Todd Thomas I. Steinberg E. Wm. Wilto ..~~_ ~, • • of general circulations within the Town of Vail, on or before October 16, 1981. Thereupon, after consideration of other business to come before the Council, the meeting was adjourned. (TOWN) (SEAL) ATTEST: ~.~ `~ Town Clerk Town of Vail, Colorado ~~ ~ ~~/ ' /~, ~ Mateo r "'~ /~'?~ Town of Vazl, Co~.orac~'o -78-- ~~ r STATE OF COLORADO ) COUNTY OF VAIL )ss. TOWN OF VAIL ) (Att~.ch Affidavit of Publication of Ordinance.) -79- • F r ".~~ r STATE OF CObORADO ) COUNTY OF EAGLE )ss. TOWN DF VAIL ) T, Colleen M. Kline, the Town Clerk of the Town of Vail, Eagle County, Colorado, do hereby certify that the attached copy of Ordinance No. J ~ , Series of 1981, regarding the issuance and sale of Town of Vail, Colorado, Construction Loan Refunding Notes, Series November ]., 1981, in the aggregate principal amount of $7,000,000, is a true and correct copy; that said Ordinance was passed and adopted by the Town Council as an emergency ordinance of the Town at a regular meeting thereof held at the Vail Municipal Building, the regular meeting place of the Town Council in the Town, on Tuesday, the 6th day of October, 1981; that true copies of said Ordinance have been duly executed and authenticated by the signatures of the ~~layor of the Town of Vail and myself, as Town Clerk of said Town, sealed with the seal of the Town, numbered and recorded in the official. records of the Town kept for that purpose in my office; that said Ordinance was duly published as required by law, as evidenced by the affidavit of publication attached hereto at page 79. T further certify that the foregoing pages constitute a true and correct copy of the record of the proceedings of the Town Council at its meeting of October 6, 1981, insofar as said proceedings relate to said Ordinance; that said proceedings were duly had and taken; that the meeting was duly held; and that the persons were present at said meeting as therein shown. --80- ~ s ,.~~:~.~ w IN WITNESS WHEREOF, I have hereunto Set my hand and the seal of the Town of Vail, Colorado, this ~ day o~ October, 1981. (TOWN ) (SEAL) fir, Town Clerk" Town o~ Vail, Colorado -81-