Winona Lake Bonds
September 22, 2020 at 12:42 p.m.
By -
$1,250,000 (Preliminary, Subject to Change)
TOWN OF WINONA LAKE, INDIANA, REVENUE BONDS, SERIES 2020
NOTICE IS HEREBY GIVEN that on October 14, 2020, sealed bids will be received on behalf of the Town in care of the Town’s municipal advisor, LWG CPAs and Advisors LLP (the “Municipal Advisor”), c/o Jim Higgins, 1776 N. Meridian Street, Suite 500, Indianapolis, Indiana 46202, telephone (317) 777-7023, [email protected], in the manner as set forth herein for the purchase of the bonds of the Town to be issued by the Town pursuant to an ordinance adopted by the Town Council of the Town on September 15, 2020 (the “Ordinance”) which bonds are designated as “Town of Winona Lake, Indiana, Revenue Bonds, Series 2020” (the “Bonds”), in the aggregate principal amount of One Million Two Hundred Fifty Thousand Dollars ($1,250,000) (preliminary, subject to change) (the “Bonds), and bearing interest at a rate or rates not exceeding three and one-half percent (3.5%).
TYPES OF BIDS ALLOWED. Bidders shall submit bids in sealed envelopes or by electronic mail to the Municipal Advisor at the address or email described above until 11:00 a.m. (Eastern Daylight Time) on October 14, 2020.
FORM, MATURITY AND PAYMENT OF BONDS. Interest on the Bonds shall be calculated on the basis of twelve (12) thirty (30)-day months for a three hundred and sixty (360)-day year and shall be payable semiannually on February 1 and August 1 in each year, commencing February 1, 2021. The Bonds will be issued as fully registered bonds in either certificated form or in book-entry-only form (as selected by the successful bidder), in denominations of $100,000 and in multiples of One Thousand Dollars ($1,000) in excess thereof, not exceeding the aggregate principal amount of such Bonds maturing in any one year, and when issued, will be registered in the name of the successful bidder.
The Bonds shall be numbered consecutively from 2020R-1 upward, shall bear an original issue date which shall be the date the Bonds are issued and shall mature on August 1 in the years and amounts as follows:
Maturity Principal
Date Amount*
August 1, 2021 $115,000.00
August 1, 2022 110,000.00
August 1, 2023 115,000.00
August 1, 2024 120,000.00
August 1, 2025 120,000.00
August 1, 2026 125,000.00
August 1, 2027 130,000.00
August 1, 2028 135,000.00
August 1, 2029 140,000.00
August 1, 2030 140,000.00
*Estimated, subject to change
The Town reserves the right to adjust principal amounts within maturities of the Bonds to achieve the financial objectives of the Town. In addition, the Town reserves the right to decrease the entire principal amount of the Bonds issued based on the actual interest rates bid by the successful bidder based on the principal and interest payments to be paid by the Town. If the maximum principal amount of the Bonds issued decreases, the Town reserves the right to adjust principal amounts within maturities of the Bonds based on the parameters set forth in this paragraph.
All payments of interest on the Bonds will be paid by check or draft mailed one business day prior to each interest payment date, to the registered owners of the Bonds as of the fifteenth day (15th) day of the month immediately preceding the month in which such interest is payable at the address as it appears on the registration books kept by the Registrar and Paying Agent as of the first (1st) day of the month immediately preceding the month of the interest payment date or at such other address as is provided to the Registrar and Paying Agent in writing by such registered owner. Principal on the Bonds will be payable at the designated corporate trust operations office of the Paying Agent. Notwithstanding the foregoing, if DTC or its nominee is the registered owner of the Bonds, principal of and interest on the Bonds will be paid directly by the Paying Agent to DTC as provided hereinabove.
The Bonds may be transferred or exchanged at the office of the Registrar, subject to the terms and conditions of the Ordinance.
REDEMPTION PROVISIONS. The Bonds maturing on or after August 1, 2026, are redeemable prior to maturity at the option of the Town in whole or in part in any order of maturity as determined by the Town and by lot within maturities, on any date not earlier than August 1, 2025, at a redemption price equal to the face value of the Bonds plus accrued interest to the date fixed for redemption and without any redemption premium.
Upon the election of the successful bidder, any of the Bonds may be issued as term bonds subject to mandatory sinking fund redemption on February 1 or August 1 of the year set forth above at 100% of the face value in accordance with the schedule set forth above. If any Bonds are subject to mandatory sinking fund redemption, the Registrar and Paying Agent shall credit against the mandatory sinking fund requirement for any term bonds and corresponding mandatory sinking fund redemption obligation, in the order determined by the Town, any term bonds maturing on the same date which have previously been redeemed (otherwise than as a result of a previous mandatory redemption requirement) or delivered to the Registrar and Paying Agent for cancellation or purchased for cancellation by the Registrar and Paying Agent and not theretofore applied as a credit against any redemption obligation. Each term bond so delivered or canceled shall be credited by the Registrar and Paying Agent at 100% of the principal amount thereof against the mandatory sinking fund obligation on such mandatory obligations and the principal amount of that term bond to be redeemed by operation of the mandatory sinking fund requirement shall be accordingly reduced; provided, however, the Registrar and Paying Agent shall only credit such term bonds to the extent received on or before forty-five days preceding the applicable mandatory redemption date.
Notice of any mandatory sinking fund redemption will be mailed by first class mail by the Registrar and Paying Agent not less than 30 days prior to the date selected for redemption to the registered owners of all Bonds to be redeemed at the address shown on the registration books of the Registrar and Paying Agent; provided, however, that failure to give such notice by mailing or a defect in the notice or the mailing as to the Bonds will not affect the validity of any proceedings for redemption as to any other Bonds for which notice is adequately given. Notice having been mailed, the Bonds designated for redemption will, on the date specified in such notice, become due and payable at the then applicable redemption price. On presentation and surrender of such Bonds in accordance with such notice at the place at which the same are expressed in such notice to be redeemable, such Bonds will be redeemed by the Registrar and Paying Agent for that purpose. From and after the date of redemption so designated, unless default is made in the redemption of the Bonds upon presentation, interest on the Bonds designated for redemption will cease.
INTEREST RATES AND BANK QUALIFICATION. Each bid must be for all of the Bonds and must state the rate or rates of interest therefor, not exceeding the maximum per annum interest rate hereinbefore specified. Such interest rate or rates must be in multiples of one-eighth (1/8), one-twentieth, or one-one hundredth (1/100) of one percent (1.00%). Bids specifying more than one interest rate must also specify the amount and maturities of the Bonds bearing each rate. All Bonds maturing on the same date shall bear the same rate of interest. Although not a term of sale, it is requested that each bid show the total dollar cost to final maturity and the true interest cost on the entire issue to which such bid relates.
The Bonds are “qualified tax-exempt obligations” pursuant to Section 265(b)(3) of the Internal Revenue Code of 1986, as amended.
BIDDING DETAILS. No conditional bid or bids for less than ninety-nine and three-quarters percent (99.75%) of the par value of the Bonds, will be considered. The Town reserves the right to reject any and all bids and to waive any informality in any bid. If no acceptable bid is received on the date fixed for sale of the Bonds, the sale may be continued from day to day thereafter without further advertisement for a period not to exceed thirty (30) days, but if so continued, no bid will be accepted which offers an interest cost which is equal to or higher than the best bid received at the time fixed for the sale.
Each of the bids for the Bonds (i) shall be sealed in an envelope, or if sent by electronic mail, contain a cover page, marked “Town of Winona Lake, Indiana Revenue Bonds, Series 2020”, (ii) must be on the forms approved by the Town, without additions, alterations or erasures, which form may be obtained from the Municipal Advisor at the address set forth herein, and (iii) delivered to the Municipal Advisor on behalf of the Town at the address or contact information set forth above.
AMENDMENTS. The Town reserves the right to amend any information contained in this Official Notice of Intent to Sell Bonds. The Town also reserves the right to postpone, from time to time, the date established for the receipt of bids on the Bonds. Any such amendment or postponement will be announced via publication at any time prior to the date and time established for the receipt of bids.
BASIS FOR AWARD. The sale of the Bonds will be awarded to the bidder making a bid that conforms to the specifications herein and which produces the lowest Net Interest Cost rate to the Town. The Net Interest Cost rate is determined by computing the total interest on all of the Bonds to their maturities based upon the schedule provided minus any premium bid and plus any discount. In the event of a bidder’s error in interest cost rate calculations, the interest rates and premium, if any, set forth or incorporated by reference in the Official Bid Form will be considered as the intended bid.
GOOD FAITH DEPOSIT. The successful bidder for the Bonds must provide to the Town a wire transfer in Federal Reserve or other immediately available funds made payable to the Town in the amount of one percent (1.00%) of the aggregate principal amount of the Bonds to be sold to the successful bidder (the amount of such wire transfer being referred to hereinafter as the “Deposit”) by no later than 3:30 p.m. (Eastern Daylight Time) on the business day following the date on which the successful bidder is notified of the award of the sale of the Bonds. If the Deposit is not received by the time set forth above, then the bid of the successful bidder for the Bonds shall be rejected. The Deposit will be applied to the purchase price of the Bonds awarded to the successful bidder.
In the event the bidder to whom the Bonds is awarded shall fail or refuse to comply with the provisions of the bid and this notice, such Deposit shall become the property of the Town and shall be taken and considered as liquidated damages of the Town on account of such failure or refusal.
The successful bidder or bidders will be required to make payment for the Bonds in Federal Reserve or other immediately available funds and accept delivery of the Bonds within five (5) days after being notified that the Bonds are ready for delivery, at a bank designated by the Town. Any premium bid must be paid in cash at the time of delivery as a part of the purchase price of the Bonds. The Bonds will be ready for delivery within sixty (60) days after the date on which the award is made, if not deliverable within that period, the successful bidder or bidders will be entitled to rescind the sale and the Deposit will be returned. Any notice of rescission must be in writing. At the request of the Town, the successful bidder with respect to the Bonds shall furnish to the Town, simultaneously with or before delivery of each the Bonds, a certificate in form satisfactory to the Town regarding the price at which a substantial amount of Bonds of each maturity was reoffered to the public.
It is anticipated that CUSIP numbers will not be printed on the Bonds. The successful bidder may, at its own expense, arrange for CUSIP numbers for the Bonds, but neither the failure to print such numbers on any Bonds nor any error with respect thereto shall constitute cause for a failure or refusal by the successful bidder to accept delivery of and pay for the Bonds in accordance with the terms of its bid. No CUSIP identification number shall be deemed to be a part of any Bond or the contract evidenced thereby and no liability shall hereafter attach to the Town or any of its officers or agents because of or on account of such numbers. All expenses in relation to the printing or typing of CUSIP numbers on the Bonds shall be paid by the successful bidder and it shall be the responsibility of the successful bidder to timely obtain the numbers and to pay the CUSIP Service Bureau charge for the assignment of the numbers. The successful bidder will also be responsible for any other fees or expenses it incurs in connection its purchase or the resale of the Bonds.
AUTHORITY AND PURPOSE. The Bonds are being issued under the provisions of the Indiana Code to provide funding for the costs of any or all or any portion of the following: Municipal water main extension from approximately 1093 250 East, South along 250 East to Pierceton Road, then continuing East along Pierceton Road to approximately 3085 E Pierceton Road. This would be a total expansion of about 1.3 miles of water main. This extension is being made to support future residential and commercial development along that route. Additionally, the Project shall consist of simultaneous greenway trail installation along the same route in an effort to mitigate total costs by allowing the installation of the greenway in conjunction with the water main extension work.
Pursuant to the provisions of the Ordinance, the principal of and interest on the Bonds will be payable solely from legally available revenues of the Town as set forth in the Ordinance. The Bonds and the obligation to pay interest thereon do not now and shall never constitute a debt, a liability, a general, moral or other obligation or a pledge of the full faith and credit of the Town, the State or any political subdivision thereof, or a charge against the general faith and credit or taxing powers, if any, of any of them, within the meaning of any constitutional or other provision, but shall be secured as aforesaid, such Bonds being payable solely from the legally available revenues of the Town. No holder of any of the Bonds shall have the right to compel the taxing powers, if any, of the Town, the State or any political subdivision thereof to pay any principal of, premium, if any, or interest on the Bonds.
BOND DELIVERY. At the time of delivery of the Bonds, the approving opinion of Barnes & Thornburg LLP, South Bend, Indiana, Bond Counsel (“Bond Counsel”), as to the validity of the Bonds, together with a transcript of Bond proceedings, the printed Bonds and closing certificates in the customary form showing no litigation, will be furnished to the successful bidder at the expense of the Town. In addition, unless bond counsel is able, on the date of delivery, to render an opinion to the effect that (1) under existing laws, regulations, judicial decisions and rulings, interest on the Bonds is excludable from gross income under Section 103 of the Internal Revenue Code of 1986, as amended, for federal income tax purposes, and (2) the interest on the Bonds is exempt from income taxation in the State of Indiana (the “State”) for all purposes except the State financial institutions tax, the successful bidder for the Bonds shall have the right to rescind the sale, and in such event the good faith deposit(s) will be returned.
TERM SHEET. A copy of the Term Sheet prepared at the direction of the Town may be obtained from the Municipal Advisor at the address and contact information set forth above.
INVESTMENT LETTER. Simultaneously with or before the delivery of the Bonds, the successful bidder will be required to execute an investment letter or certificate at closing, in a form satisfactory to the Town and Bond Counsel (as defined herein), certifying, among other things, that it is purchasing the Bonds for its own account and not with the current intent to resell all or any portion of the Bonds.
If bids are submitted by mail, they should be addressed to the Town in care of the Municipal Advisor at the address listed above.
Dated this 25th day of September, 2020.
TOWN OF WINONA LAKE, INDIANA
9-25, 10-2 hspaxlp
$1,250,000 (Preliminary, Subject to Change)
TOWN OF WINONA LAKE, INDIANA, REVENUE BONDS, SERIES 2020
NOTICE IS HEREBY GIVEN that on October 14, 2020, sealed bids will be received on behalf of the Town in care of the Town’s municipal advisor, LWG CPAs and Advisors LLP (the “Municipal Advisor”), c/o Jim Higgins, 1776 N. Meridian Street, Suite 500, Indianapolis, Indiana 46202, telephone (317) 777-7023, [email protected], in the manner as set forth herein for the purchase of the bonds of the Town to be issued by the Town pursuant to an ordinance adopted by the Town Council of the Town on September 15, 2020 (the “Ordinance”) which bonds are designated as “Town of Winona Lake, Indiana, Revenue Bonds, Series 2020” (the “Bonds”), in the aggregate principal amount of One Million Two Hundred Fifty Thousand Dollars ($1,250,000) (preliminary, subject to change) (the “Bonds), and bearing interest at a rate or rates not exceeding three and one-half percent (3.5%).
TYPES OF BIDS ALLOWED. Bidders shall submit bids in sealed envelopes or by electronic mail to the Municipal Advisor at the address or email described above until 11:00 a.m. (Eastern Daylight Time) on October 14, 2020.
FORM, MATURITY AND PAYMENT OF BONDS. Interest on the Bonds shall be calculated on the basis of twelve (12) thirty (30)-day months for a three hundred and sixty (360)-day year and shall be payable semiannually on February 1 and August 1 in each year, commencing February 1, 2021. The Bonds will be issued as fully registered bonds in either certificated form or in book-entry-only form (as selected by the successful bidder), in denominations of $100,000 and in multiples of One Thousand Dollars ($1,000) in excess thereof, not exceeding the aggregate principal amount of such Bonds maturing in any one year, and when issued, will be registered in the name of the successful bidder.
The Bonds shall be numbered consecutively from 2020R-1 upward, shall bear an original issue date which shall be the date the Bonds are issued and shall mature on August 1 in the years and amounts as follows:
Maturity Principal
Date Amount*
August 1, 2021 $115,000.00
August 1, 2022 110,000.00
August 1, 2023 115,000.00
August 1, 2024 120,000.00
August 1, 2025 120,000.00
August 1, 2026 125,000.00
August 1, 2027 130,000.00
August 1, 2028 135,000.00
August 1, 2029 140,000.00
August 1, 2030 140,000.00
*Estimated, subject to change
The Town reserves the right to adjust principal amounts within maturities of the Bonds to achieve the financial objectives of the Town. In addition, the Town reserves the right to decrease the entire principal amount of the Bonds issued based on the actual interest rates bid by the successful bidder based on the principal and interest payments to be paid by the Town. If the maximum principal amount of the Bonds issued decreases, the Town reserves the right to adjust principal amounts within maturities of the Bonds based on the parameters set forth in this paragraph.
All payments of interest on the Bonds will be paid by check or draft mailed one business day prior to each interest payment date, to the registered owners of the Bonds as of the fifteenth day (15th) day of the month immediately preceding the month in which such interest is payable at the address as it appears on the registration books kept by the Registrar and Paying Agent as of the first (1st) day of the month immediately preceding the month of the interest payment date or at such other address as is provided to the Registrar and Paying Agent in writing by such registered owner. Principal on the Bonds will be payable at the designated corporate trust operations office of the Paying Agent. Notwithstanding the foregoing, if DTC or its nominee is the registered owner of the Bonds, principal of and interest on the Bonds will be paid directly by the Paying Agent to DTC as provided hereinabove.
The Bonds may be transferred or exchanged at the office of the Registrar, subject to the terms and conditions of the Ordinance.
REDEMPTION PROVISIONS. The Bonds maturing on or after August 1, 2026, are redeemable prior to maturity at the option of the Town in whole or in part in any order of maturity as determined by the Town and by lot within maturities, on any date not earlier than August 1, 2025, at a redemption price equal to the face value of the Bonds plus accrued interest to the date fixed for redemption and without any redemption premium.
Upon the election of the successful bidder, any of the Bonds may be issued as term bonds subject to mandatory sinking fund redemption on February 1 or August 1 of the year set forth above at 100% of the face value in accordance with the schedule set forth above. If any Bonds are subject to mandatory sinking fund redemption, the Registrar and Paying Agent shall credit against the mandatory sinking fund requirement for any term bonds and corresponding mandatory sinking fund redemption obligation, in the order determined by the Town, any term bonds maturing on the same date which have previously been redeemed (otherwise than as a result of a previous mandatory redemption requirement) or delivered to the Registrar and Paying Agent for cancellation or purchased for cancellation by the Registrar and Paying Agent and not theretofore applied as a credit against any redemption obligation. Each term bond so delivered or canceled shall be credited by the Registrar and Paying Agent at 100% of the principal amount thereof against the mandatory sinking fund obligation on such mandatory obligations and the principal amount of that term bond to be redeemed by operation of the mandatory sinking fund requirement shall be accordingly reduced; provided, however, the Registrar and Paying Agent shall only credit such term bonds to the extent received on or before forty-five days preceding the applicable mandatory redemption date.
Notice of any mandatory sinking fund redemption will be mailed by first class mail by the Registrar and Paying Agent not less than 30 days prior to the date selected for redemption to the registered owners of all Bonds to be redeemed at the address shown on the registration books of the Registrar and Paying Agent; provided, however, that failure to give such notice by mailing or a defect in the notice or the mailing as to the Bonds will not affect the validity of any proceedings for redemption as to any other Bonds for which notice is adequately given. Notice having been mailed, the Bonds designated for redemption will, on the date specified in such notice, become due and payable at the then applicable redemption price. On presentation and surrender of such Bonds in accordance with such notice at the place at which the same are expressed in such notice to be redeemable, such Bonds will be redeemed by the Registrar and Paying Agent for that purpose. From and after the date of redemption so designated, unless default is made in the redemption of the Bonds upon presentation, interest on the Bonds designated for redemption will cease.
INTEREST RATES AND BANK QUALIFICATION. Each bid must be for all of the Bonds and must state the rate or rates of interest therefor, not exceeding the maximum per annum interest rate hereinbefore specified. Such interest rate or rates must be in multiples of one-eighth (1/8), one-twentieth, or one-one hundredth (1/100) of one percent (1.00%). Bids specifying more than one interest rate must also specify the amount and maturities of the Bonds bearing each rate. All Bonds maturing on the same date shall bear the same rate of interest. Although not a term of sale, it is requested that each bid show the total dollar cost to final maturity and the true interest cost on the entire issue to which such bid relates.
The Bonds are “qualified tax-exempt obligations” pursuant to Section 265(b)(3) of the Internal Revenue Code of 1986, as amended.
BIDDING DETAILS. No conditional bid or bids for less than ninety-nine and three-quarters percent (99.75%) of the par value of the Bonds, will be considered. The Town reserves the right to reject any and all bids and to waive any informality in any bid. If no acceptable bid is received on the date fixed for sale of the Bonds, the sale may be continued from day to day thereafter without further advertisement for a period not to exceed thirty (30) days, but if so continued, no bid will be accepted which offers an interest cost which is equal to or higher than the best bid received at the time fixed for the sale.
Each of the bids for the Bonds (i) shall be sealed in an envelope, or if sent by electronic mail, contain a cover page, marked “Town of Winona Lake, Indiana Revenue Bonds, Series 2020”, (ii) must be on the forms approved by the Town, without additions, alterations or erasures, which form may be obtained from the Municipal Advisor at the address set forth herein, and (iii) delivered to the Municipal Advisor on behalf of the Town at the address or contact information set forth above.
AMENDMENTS. The Town reserves the right to amend any information contained in this Official Notice of Intent to Sell Bonds. The Town also reserves the right to postpone, from time to time, the date established for the receipt of bids on the Bonds. Any such amendment or postponement will be announced via publication at any time prior to the date and time established for the receipt of bids.
BASIS FOR AWARD. The sale of the Bonds will be awarded to the bidder making a bid that conforms to the specifications herein and which produces the lowest Net Interest Cost rate to the Town. The Net Interest Cost rate is determined by computing the total interest on all of the Bonds to their maturities based upon the schedule provided minus any premium bid and plus any discount. In the event of a bidder’s error in interest cost rate calculations, the interest rates and premium, if any, set forth or incorporated by reference in the Official Bid Form will be considered as the intended bid.
GOOD FAITH DEPOSIT. The successful bidder for the Bonds must provide to the Town a wire transfer in Federal Reserve or other immediately available funds made payable to the Town in the amount of one percent (1.00%) of the aggregate principal amount of the Bonds to be sold to the successful bidder (the amount of such wire transfer being referred to hereinafter as the “Deposit”) by no later than 3:30 p.m. (Eastern Daylight Time) on the business day following the date on which the successful bidder is notified of the award of the sale of the Bonds. If the Deposit is not received by the time set forth above, then the bid of the successful bidder for the Bonds shall be rejected. The Deposit will be applied to the purchase price of the Bonds awarded to the successful bidder.
In the event the bidder to whom the Bonds is awarded shall fail or refuse to comply with the provisions of the bid and this notice, such Deposit shall become the property of the Town and shall be taken and considered as liquidated damages of the Town on account of such failure or refusal.
The successful bidder or bidders will be required to make payment for the Bonds in Federal Reserve or other immediately available funds and accept delivery of the Bonds within five (5) days after being notified that the Bonds are ready for delivery, at a bank designated by the Town. Any premium bid must be paid in cash at the time of delivery as a part of the purchase price of the Bonds. The Bonds will be ready for delivery within sixty (60) days after the date on which the award is made, if not deliverable within that period, the successful bidder or bidders will be entitled to rescind the sale and the Deposit will be returned. Any notice of rescission must be in writing. At the request of the Town, the successful bidder with respect to the Bonds shall furnish to the Town, simultaneously with or before delivery of each the Bonds, a certificate in form satisfactory to the Town regarding the price at which a substantial amount of Bonds of each maturity was reoffered to the public.
It is anticipated that CUSIP numbers will not be printed on the Bonds. The successful bidder may, at its own expense, arrange for CUSIP numbers for the Bonds, but neither the failure to print such numbers on any Bonds nor any error with respect thereto shall constitute cause for a failure or refusal by the successful bidder to accept delivery of and pay for the Bonds in accordance with the terms of its bid. No CUSIP identification number shall be deemed to be a part of any Bond or the contract evidenced thereby and no liability shall hereafter attach to the Town or any of its officers or agents because of or on account of such numbers. All expenses in relation to the printing or typing of CUSIP numbers on the Bonds shall be paid by the successful bidder and it shall be the responsibility of the successful bidder to timely obtain the numbers and to pay the CUSIP Service Bureau charge for the assignment of the numbers. The successful bidder will also be responsible for any other fees or expenses it incurs in connection its purchase or the resale of the Bonds.
AUTHORITY AND PURPOSE. The Bonds are being issued under the provisions of the Indiana Code to provide funding for the costs of any or all or any portion of the following: Municipal water main extension from approximately 1093 250 East, South along 250 East to Pierceton Road, then continuing East along Pierceton Road to approximately 3085 E Pierceton Road. This would be a total expansion of about 1.3 miles of water main. This extension is being made to support future residential and commercial development along that route. Additionally, the Project shall consist of simultaneous greenway trail installation along the same route in an effort to mitigate total costs by allowing the installation of the greenway in conjunction with the water main extension work.
Pursuant to the provisions of the Ordinance, the principal of and interest on the Bonds will be payable solely from legally available revenues of the Town as set forth in the Ordinance. The Bonds and the obligation to pay interest thereon do not now and shall never constitute a debt, a liability, a general, moral or other obligation or a pledge of the full faith and credit of the Town, the State or any political subdivision thereof, or a charge against the general faith and credit or taxing powers, if any, of any of them, within the meaning of any constitutional or other provision, but shall be secured as aforesaid, such Bonds being payable solely from the legally available revenues of the Town. No holder of any of the Bonds shall have the right to compel the taxing powers, if any, of the Town, the State or any political subdivision thereof to pay any principal of, premium, if any, or interest on the Bonds.
BOND DELIVERY. At the time of delivery of the Bonds, the approving opinion of Barnes & Thornburg LLP, South Bend, Indiana, Bond Counsel (“Bond Counsel”), as to the validity of the Bonds, together with a transcript of Bond proceedings, the printed Bonds and closing certificates in the customary form showing no litigation, will be furnished to the successful bidder at the expense of the Town. In addition, unless bond counsel is able, on the date of delivery, to render an opinion to the effect that (1) under existing laws, regulations, judicial decisions and rulings, interest on the Bonds is excludable from gross income under Section 103 of the Internal Revenue Code of 1986, as amended, for federal income tax purposes, and (2) the interest on the Bonds is exempt from income taxation in the State of Indiana (the “State”) for all purposes except the State financial institutions tax, the successful bidder for the Bonds shall have the right to rescind the sale, and in such event the good faith deposit(s) will be returned.
TERM SHEET. A copy of the Term Sheet prepared at the direction of the Town may be obtained from the Municipal Advisor at the address and contact information set forth above.
INVESTMENT LETTER. Simultaneously with or before the delivery of the Bonds, the successful bidder will be required to execute an investment letter or certificate at closing, in a form satisfactory to the Town and Bond Counsel (as defined herein), certifying, among other things, that it is purchasing the Bonds for its own account and not with the current intent to resell all or any portion of the Bonds.
If bids are submitted by mail, they should be addressed to the Town in care of the Municipal Advisor at the address listed above.
Dated this 25th day of September, 2020.
TOWN OF WINONA LAKE, INDIANA
9-25, 10-2 hspaxlp
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