The Franklin Sun: Public Notices: Tuesday, December 15th, 2009



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Public Notices: Tuesday, December 15th, 2009

Public & Legal Notices may be submitted to us at legals@franklinsun.com.

Public Notices Published Tuesday, December 15th, 2009

This Bond is secured by and payable from an irrevocable pledge and dedication of the funds to be derived by the Issuer from the levy and collection of a special tax of four and fifty-three hundredths (4.53) mills (such rate being subject to adjustment from time to time due to reassessment), which the Issuer is authorized to impose and collect in each year. Said special tax has been authorized to be levied on all the property subject to taxation within the corporate boundaries of the Issuer. For a more complete statement of the tax revenues from which and conditions under which this Bond is issued, reference is hereby made to the Resolution. The Issuer, in the Resolution, has also entered into certain other covenants and agreements with the registered owner of this Bond, including provisions for the issuance of additional bonds payable from the proceeds of the Tax on a parity with this Bond for the terms of which reference is made to the Resolution.
eference is made to the Resolution.
This Bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Resolution until the certificate of registration hereon shall have been signed by the Paying Agent.
It is certified that this Bond is authorized by and issued in conformity with the requirements of the Constitution and statutes of this State. It is further certified, recited and declared that all acts, conditions and things required to exist, to happen and to be performed precedent to and in the issuance of this Bond to constitute the same legal, binding and valid obligations of the Issuer have existed, have happened and have been performed in due time, form and manner as required by law, and that the indebtedness of the Issuer, including this Bond, does not exceed the limitations prescribed by the Constitution and statutes of the State of Louisiana.
Any capitalized terms in this Bond which are not defined herein shall have the meaning assigned to such terms of the Resolution.
IN WITNESS WHEREOF, the Issuer has caused this Bond to be executed on behalf of the Issuer by the manual or facsimile signatures of its President and Secretary, and its corporate seal to be impressed or imprinted hereon.
PARISH SCHOOL BOARD OF THE PARISH OF FRANKLIN, STATE OF LOUISIANA
Dr. Lanny Johnson
Secretary, Franklin Parish School Board
Eddie Ray Bryan
President, Franklin Parish School Board
(FORM OF PAYING AGENT’S CERTIFICATE OF REGISTRATION)
This Bond represents the entire issue of Bonds referred to in the within-mentioned Resolution.
ARGENT TRUST, a division of NATIONAL INDEPENDENT TRUST COMPANY
Ruston, Louisiana, as Paying Agent
Date of Registration:____________ By:___________________________
Authorized Officer
(FORM OF ASSIGNMENT)
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto
______________________________________________________________________________________
Please Insert Social Security
or other Identifying Number of Assignee the within Bond and all rights there under, and hereby irrevocably constitutes and appoints
_____________________________________________________________________________________
attorney or agent to transfer the within Bond on the books kept for registration thereof, with full power of substitution in the premises.
Dated: ________________________________
NOTICE: The signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or enlargement or any change whatever.
SECTION 6. Execution of Bonds. The Bonds shall be signed by the Executive Officers for, on behalf of, in the name of and under the corporate seal of the Issuer, which signatures and corporate seal may be either manual or facsimile.
SECTION 7. Payment of Bonds. The Bonds shall be secured by and payable solely from an irrevocable pledge and dedication of the avails or proceeds of the Tax. This Governing Authority does hereby obligate itself and its successors in office to impose and collect the Tax annually in each year, and does hereby irrevocably and irrepealably dedicate, appropriate and pledge the annual income to be derived from the assessment, levy and collection of the Tax in each year to the payment of the Bonds. The Issuer further covenants that it shall not lower the Tax rate to result in lower Tax revenues than were collected in the fiscal year prior to the proposed adjustment unless it shall deliver to the Owner, at least thirty (30) days prior to the date of any proposed adjustment, written evidence satisfactory to the Owner showing that the lower Tax revenues will be not less than 1.25 times the combined Maximum Annual Debt Service requirements for the Bonds and any Additional Parity Obligations (the “Debt Service Coverage Requirement”). In the event the Revenues in any one calendar year shall be insufficient to provide the required Debt Service Coverage Requirement in such calendar year the Issuer covenants to increase by rolling forward the millage rate for such year to the extent allowed by law in an amount necessary to achieve the Debt Service Coverage Requirement.
SECTION 8. Parity Bonds. The Issuer shall issue no other bonds or obligations of any kind or nature payable from or enjoying a lien on the revenues of the Tax having priority over or parity with the Bonds, except that additional bonds may hereafter be issued on a parity with the Bonds under the following conditions:
(1)The Bonds herein authorized or any bonds issued on a parity therewith or any part thereof, including the interest thereon, may be refunded, and the refunding bonds so issued shall enjoy complete equality of lien with the portion of the bonds which is not refunded, if there be any, and the refunding bonds shall continue to enjoy whatever priority of lien over subsequent issues may have been enjoyed by the bonds refunded; provided, however, that if only a portion of the bonds outstanding is so refunded and the refunding bonds require total principal and interest payments during any year in excess of the principal and interest which would have been required in such year to pay the bonds refunded thereby, then such bonds may not be refunded without the consent of the owner of the unrefunded portion of the bonds issued hereunder (provided such consent shall not be required if such refunding bonds meet the requirements set forth in clause 2 of this Section).
(2) Additional bonds may be issued on and enjoy a full and complete parity with the Bonds with respect to the revenues of the Tax, provided that the anticipated Tax revenues in the year in which the additional bonds are to be issued, as reflected in the budget adopted by the Issuer, must be at least 1.25 times the combined principal and interest requirements and Principal Account Deposit Requirements for any calendar year on the Bonds and the said additional bonds.
(3) Junior and subordinate bonds may be issued without restriction.
(4) The Issuer must be in full compliance with all covenants and undertakings in connection with the Bonds, and there must be no delinquencies in payments required to be made in connection therewith. In addition to the foregoing, while the Bonds are still Outstanding, the Issuer shall not be permitted to issue Additional Parity Obligations unless it shall deliver to the Owner of the Bonds, at least thirty (30) days prior to the date of any proposed issuance of Additional Parity Obligations, written evidence satisfactory to such Owner showing that the Tax revenues during twelve (12) consecutive months of the previous eighteen (18) months would have been sufficient to produce revenues in an amount equal to 1.25 times the combined Maximum Annual Debt Service of the Bonds and all outstanding Additional Parity Obligations, including the proposed Additional Parity Obligations.
SECTION 9. Sinking Fund. For the payment of the principal of the Bonds, there has been established and maintained a special fund known as “Parish School Board of the Parish of Franklin, State of Louisiana, Revenue Bonds (Taxable QSCB), Series 2009, Sinking Fund,” said Sinking Fund having been established and maintained with the Paying Agent or its designee. Within the Sinking Fund shall be a Principal Account established for the purpose of paying the principal falling due on the Final Maturity Date and an Interest Account established for the purpose of paying the interest falling due on each Interest Payment Date.
Not less than fifteen (15) days before each Principal Account Deposit Date, the Paying Agent shall provide to the Issuer a selection of Government Securities that, either alone or in combination with other Government Securities, satisfy the Principal Account Deposit Requirement. Not less than ten (10) days before each Principal Account Deposit Date, an Executive Officer of the Issuer shall select the Government Security or Securities from the list provided by the Paying Agent to satisfy the Principal Account Deposit Requirement. Not less than one (1) day before each Principal Account Deposit Date, the Issuer shall deposit in the Principal Account an amount fully sufficient to satisfy the Principal Account Deposit Requirement falling due on such Principal Account Deposit Date; provided, however, that on the last Principal Account Deposit Date before the Final Maturity Date, the Issuer shall instead be required to deposit the difference between the amount then held in the Principal Account and the Principal Amount of the Bonds. On each Principal Account Deposit Date, the Paying Agent shall use the amount deposited by the Issuer in the Sinking Fund to purchase the Government Securities selected from the list provided by the Paying Agent by an Executive Officer of the Issuer or his designee. If no Government Securities are available or may be purchased on a Principal Account Deposit Date to satisfy the relevant Principal Account Deposit Requirement, the Paying Agent shall retain the amount deposited in the Sinking Fund as Cash until such Government Securities are available, at which time the Paying Agent shall comply with the terms of this paragraph. The Issuer shall also deposit at least one (1) day before each Interest Payment Date the amount of interest due on such Interest Payment Date.
It is further provided by the Issuer that the sum of all Cash and investments held in the Sinking Fund shall equal, as close as is reasonable possible, the Required Principal Account Value set forth below on the relevant Principal Account Deposit Date:
November 1 Required Principal
Account Value 2010 $ 166,666
2011 333,333
2012 500,000
2013 666,666
2014 833,333
2015 1,000,000 2016 1,166,666 2017 1,333,333 2018 1,500,000
For purposes of determining compliance with the Required Principal Account Value, the “value” of any Cash or Government Security held in the Sinking Fund shall be determined as follows:
(a) For Cash, the amount of such Cash; and
(b) For Government Securities - the par of such security plus accrued but unpaid interest on such security.
It is expressly provided that (1) the Issuer shall endeavor to purchase State and Local Government Series securities unless a prevailing reason exists at the time of purchase to do otherwise, (2) the Issuer shall make all reasonable efforts to ensure that the yield on the Sinking Fund for purposes of the QSCB Code Provisions and QSCB Regulations does not exceed 4.53% (which equals the Permitted Sinking Fund Yield in effect on the date of the Issuer’s acceptance of the Commitment Letter), and (3) nothing contained herein shall prohibit the Paying Agent from acting through a designee to satisfy its obligations imposed pursuant to this Section.
It shall be specifically understood and agreed, however, and this provision shall be a part of this contract, that after the funds have been budgeted out of the revenues of the Tax for any year sufficient to pay the principal and interest on the Bonds herein authorized for that period, and all required amounts for that period have been deposited in the aforesaid Sinking Fund established for the Bonds, then any annual revenues of the Tax remaining in that year shall be free for expenditure by the Issuer for the purposes for which the Tax was authorized.
All Cash and investments held in the Sinking Fund under the terms of this Resolution shall constitute sacred funds for the benefit of the Owners of the Bonds, and shall be secured by said fiduciaries at all times to the full extent thereof in the manner required by law for the securing of deposits of public funds. Neither the Government Securities nor the principal or interest payments on any such Government Securities shall be withdrawn or used for any purpose other than the purchase of additional Government Securities or the payment of the Principal Amount of the Bonds at the Final Maturity Date. The Purchaser is hereby granted an express lien on all moneys deposited and Government Securities held in the Sinking Fund.
Subject to the provisions of this Section, all of the Cash in the Sinking Fund shall be invested in accordance with the provisions of the laws of the State of Louisiana unless available to be used pursuant to the terms of this Resolution within five (5) business days.
SECTION 10. Annual Financial Statements. While any portion of the Bonds is Outstanding, the Issuer shall make available to the Owner its annual audited financial statements no later than 180 days after the applicable fiscal year-end of the Issuer.
SECTION 11. Comprehensive Budget. While any portion of the Bonds is Outstanding, the Issuer shall prepare and adopt a budget at the beginning of each fiscal year and shall furnish to the Owner a copy of such budget upon request of the Owner.
SECTION 12. Application of Proceeds. The Executive Officers are hereby empowered, authorized and directed to do any and all things necessary and incidental to carry out all of the provisions of this Resolution, to cause the Bonds to be prepared or printed, to issue, execute and seal the Bonds, and to effect delivery thereof as hereinafter provided. The proceeds derived from the sale of the Bonds shall be deposited by the Issuer with its fiscal agent bank or banks to be used only for the Qualified Purposes for which the Bonds are issued.
SECTION 13. Bonds Legal Obligations. The Bonds shall constitute legal, binding and valid obligations of the Issuer, and shall be the only representation of the indebtedness herein authorized and created.
SECTION 14. Resolution a Contract. The provisions of this Resolution shall constitute a contract between the Issuer, or its successor, and the Owners from time to time of the Bonds and any such Owner may at law or in equity, by suit, action, mandamus or other proceedings, enforce and compel the performance of all duties required to be performed by the Governing Authority or the Issuer as a result of issuing the Bonds.
SECTION 15. Amendment to Resolution. No material modification or amendment of this Resolution, or of any resolution and/or ordinance amendatory hereof or supplemental hereto, may be made without the consent in writing of the Owners of the Bonds.
SECTION 16. Recital of Regularity. This Governing Authority having investigated the regularity of the proceedings had in connection with the Bonds herein authorized and having determined the same to be regular, the Bonds shall contain the following recital, to-wit:
“It is certified that this Bond is authorized by and is issued in conformity with the requirements of the Constitution and statutes of this State.”
SECTION 17. Effect of Registration. The Issuer, the Paying Agent, and any agent of either of them may treat the Owner in whose name the Bonds is registered as the Owner of such Bond for the purpose of receiving payment of the principal (and redemption price) of such Bond and for all other purposes whatsoever, and to the extent permitted by law, neither the Issuer, the Paying Agent, nor any agent of either of them shall be affected by notice to the contrary.
SECTION 18. Notices to Owner. Wherever this Resolution provides for notice to the Owner of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and mailed, first-class postage prepaid, to the Owner at the address of such Owner as it appears in the Bond Register. Where this Resolution provides for notice in any manner, such notice may be waived in writing by the Owner entitled to receive such notice, either before or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice by the Owner shall be filed with the Paying Agent and the Issuer, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver.
SECTION 19. Cancellation of Bonds. Any Bond surrendered for payment, transfer, exchange or replacement, if surrendered to the Paying Agent, shall be promptly canceled by it and, if surrendered to the Issuer, shall be delivered to the Paying Agent and, if not already canceled, shall be promptly canceled by the Paying Agent. The Issuer may at any time deliver to the Paying Agent for cancellation any Bond previously registered and delivered which the Issuer may have acquired in any manner whatsoever, and any Bond so delivered shall be promptly canceled by the Paying Agent. Any canceled Bond held by the Paying Agent shall be disposed of as directed in writing by the Issuer.
SECTION 20. Mutilated, Destroyed, Lost or Stolen Bond. If (1) any mutilated Bond is surrendered to the Paying Agent, or the Issuer and the Paying Agent receive evidence to their satisfaction of the destruction, loss or theft of any Bond, and (2) there is delivered to the Issuer and the Paying Agent such security or indemnity as may be required by them to save each of them harmless, then, in the absence of notice to the Issuer or the Paying Agent that such Bond has been acquired by a bona fide purchaser, the Issuer shall execute, and upon its request the Paying Agent shall register and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost, or stolen Bond, a new Bond of the same maturity and of like tenor and principal amount, bearing a number not contemporaneously outstanding. In case any such mutilated, destroyed, lost or stolen Bond has become or is about to become due and payable, the Issuer in its discretion may, instead of issuing a new Bond, pay such Bond. Upon the issuance of any new Bond under this Section, the Issuer may require the payment by the Owner of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Paying Agent) connected therewith. Every new Bond issued pursuant to this Section in lieu of any mutilated, destroyed, lost or stolen bond shall constitute a replacement of the prior obligation of the Issuer, whether or not the mutilated, destroyed, lost or stolen Bond shall be at any time enforceable by anyone and shall be entitled to all the benefits of this Resolution equally and ratably with any other Outstanding Bond. Any additional procedures set forth in the Agreement, authorized in this Resolution, shall also be available with respect to any mutilated, destroyed, lost or stolen Bond. The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement and payment of any mutilated, destroyed, lost or stolen Bond.
SECTION 21. Discharge of Resolution; Defeasance. If the Issuer shall pay or cause to be paid, or there shall otherwise be paid to the Owner, the Principal Amount of the Bonds, at the times and in the manner stipulated in this Resolution, then the pledge of the money, securities and funds pledged under this Resolution and all covenants, agreements and other obligations of the Issuer to the Owner shall thereupon cease, terminate and become void and be discharged and satisfied, and the Paying Agent shall pay over or deliver all money held by it under this Resolution to the Issuer.
Portions of the Principal Amount for the payment of which money shall have been set aside and shall be held in trust (through deposit by the Issuer of funds for such payment or otherwise) at the Final Maturity Date thereof shall be deemed to have been paid within the meaning and with the effect expressed above in this Section if they are defeased in the manner provided by Chapter 14 of Title 39 of the Louisiana Revised Statutes of 1950, as amended.
SECTION 22. Successor Paying Agent; Paying Agent Agreement. The Issuer will at all times maintain a Paying Agent meeting the qualifications hereinafter described for the performance of the duties hereunder for the Bonds. The designation of the initial Paying Agent in this Resolution is hereby confirmed and approved. The Issuer reserves the right to appoint a successor Paying Agent by (a) filing with the Person then performing such function a certified copy of official proceedings of the Governing Authority giving notice of the termination of the Agreement and appointing a successor and (b) causing notice to be given to the Owner. Every Paying Agent appointed hereunder shall at all times be a bank or trust company organized and doing business under the laws of the United States of America or of any state, authorized under such laws to exercise trust powers, and subject to supervision or examination by Federal or State authority. The Executive Officers are hereby authorized and directed to execute an appropriate Agreement with the Paying Agent for and on behalf of the Issuer in such form as may be satisfactory to said officers, the signatures of said officers on such Agreement to be conclusive evidence of the due exercise of the authority granted hereunder.
SECTION 23. Covenants Relating to the QSCB Code Provision, QSCB Regulations and Other Matters. The School Board hereby certifies that:
1) 100% of the available project proceeds, as defined in the Code, will be spent for Qualified Purposes;
2) 100% of the available project proceeds, as defined in the Code, will be spent at public school facilities within the jurisdiction of the School Board;
3) Within the six-month period beginning on the Date of Issuance, it will incur a binding commitment with a 3rd party to spend at least 10% of such available project proceeds on Qualified Purposes;
4) Any reimbursement of proceeds of the Bonds for capital expenditures for Qualified Purposes incurred prior to the Date of Issuance of the Bonds will be undertaken strictly in accordance with 54A(d)(2)(D) of the Code;
5) All applicable State and local laws governing conflicts of interest have and will continue to be satisfied with respect to the Bonds;
6) The Issuer will redeem all nonqualified Bonds pursuant to Section 3(a) of this Resolution; and
7) The Issuer will comply with the terms of the Davis-Bacon Act, to the extent required by the American Recovery and Reinvestment Act of 2009.
SECTION 24. Arbitrage. The Issuer covenants and agrees that, to the extent permitted by the laws of the State of Louisiana, it will comply with the provisions of Section 148 of the Internal Revenue Code of 1986 and any amendment thereto (the “Code”), as modified by the QSCB Code Provisions and QSCB Regulations, with respect to the proceeds of the Bonds.
SECTION 25. Disclosure Under SEC Rule 15c2-12(b). tc “ SECTION Disclosure Under SEC Rule 15c2-12(b). “ l 2It is recognized that the Issuer will not be required to comply with the continuing disclosure requirements described in the Rule 15c-2-12(b) of the Securities and Exchange Commission [17 CFR ß240.15c2-12(b)], because:
(a) the Bonds are not being purchased by a broker, dealer or municipal securities dealer acting as an underwriter in a primary offering of municipal securities, and
(b) the Bonds are being sold to not more than 35 financial institutions (i.e., no more than thirty-five persons) constituting an “Eligible Person”pursuant to the Rules of the Securities and Exchange Commission which (i) have such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of the prospective investment in the Bonds and (ii) are not purchasing the Bonds for more than one account or with a view to distributing the Bonds.
SECTION 26. Default. The Paying Agent shall provide prompt notice to the Owner of any event or occurrence of which it is aware that is, or with the passage of a required period of time may become, an Event of Default. Upon an Event of Default, the Owner may pursue any and all remedies, including but not limited to an action for mandamus, that may exist at law or in equity pursuant to the law of the State at the time of such Event of Default.
SECTION 27. Publication. A copy of this Resolution shall be published immediately after its adoption in one (1) issue of the official journal of the Issuer.
SECTION 28. Incorporation of Commitment Letter. All of the provisions of the Commitment Letter attached as Exhibit A hereto are incorporated herein by reference. It is intended by the Issuer and the Purchaser that the Commitment Letter constitutes a binding, written contract for the sale of the Bonds. The Bonds shall be delivered to said Purchaser upon the payment of the Principal Amount thereof.
SECTION 29. Severability; Application of Subsequently Enacted Laws. In case any one or more of the provisions of this Resolution or of the Bonds shall for any reason be held to be illegal or invalid, such illegality or invalidity shall not affect any other provisions of this Resolution or of the Bonds, but this Resolution and the Bonds shall be construed and enforced as if such illegal or invalid provisions had not been contained therein. Any constitutional or statutory provisions enacted after the date of this Resolution which validate or make legal any provision of the Resolution and/or the Bonds which would not otherwise be valid or legal, shall be deemed to apply to this Resolution and to the Bonds.
SECTION 30. Section Headings. The headings of the various sections hereof are inserted for convenience of reference only and shall not control or affect the meaning or construction of any of the provisions hereof.
SECTION 31. Effective Date. This Resolution shall become effective immediately.
This resolution having been submitted to a vote, the vote thereon was as follows:
COMMITMENT LETTER
October 16, 2009
Honorable Parish School Board
Parish of Franklin
State of Louisiana
Winnsboro, Louisiana
RE: $1,500,000 Revenue Bond (Taxable QSCB), Series 2009, of the Parish School Board of the Parish of Franklin, State of Louisiana.
To: Franklin Parish School Board
Franklin State Bank and Trust Co. (“Bank”), is pleased to present this commitment to purchase the above referenced bond (the “QSCB). Our terms and conditions are set forth below.
Issuer and Amount: $1,500,000 Revenue Bond (Taxable QSCB), Series 2009, issued by the Parish School Board of the Parish of Franklin, State of Louisiana (the “Issuer”)
QSCB Purchaser: Bank
QSCB Purchase Price: 100% of QSCB par- $1,500,000.
Purpose of Issue: Construction, rehabilitation or repair of public school facilities, including equipping of school facilities, and paying the cost of issuance thereof.
Authority for Issue: Section 1430 of Title 39 of the Louisiana Revised Statutes of 1950, as amended, and other Louisiana constitutional and statutory authority, and Sections 54A and 54F of the Internal Revenue Code of 1986, as amended (the “Code”).
Form of Bond: The QSCB will be issued as a single typewritten or printed term bond, in fully registered form.
Security: The QSCB will be secured on a senior basis by, and payable from, an irrevocable pledge and dedication of the funds to be derived by the Issuer from the levy and collection of a special tax of four and fifty-three hundredths (4.53) mills (the “Tax”) which the Issuer is authorized to impose and collect each year.
The Issuer’s obligation to make Sinking Fund Deposits shall be secured by a pledge to budget and appropriate such Sinking fund payments on an annual basis from the Tax described above. The QSCB shall be additionally secured by a pledge of the amounts held in the sinking fund described below, including any investment earnings.
QSCB Tax Credit Rate and Maturities: The QSCB will mature according to the following Schedule:
Year Principal Amount
2018 $1,500,000
The QSCB Tax Credit Rate will be set as of the date of acceptance of this Commitment by the Superintendent of the Issuer. As of such date, which is October 16, 2009, the QSCB Tax Credit Rate is 6.18%.
Credit Allowance Dates: Quarterly on each March 15, June 15, September 15, and December 15 over the life of the QSCB and on the last day on which the QSCB is outstanding.
Supplemental Coupon: This offer is subject to a supplemental interest rate of 0.50%. Interest shall be due annually on the anniversary date of the delivery of the QSCB.
QSCB Term: Not exceeding 9 years from the date of delivery.
QSCB Structure: The QSCB will be structured as a “bullet” maturity. The QSCB shall require the Issuer to deposit funds on an annual basis; such funds shall be deposited to a Sinking Fund Escrow Account as discussed in the Sinking Fund Payments and Amounts section below. Funds in the escrow accounts may (at the Issuer’s option) be invested to the extent permitted by Louisiana law and the Issuer’s investment policy in Government Securities, so long as the investments have a final maturity date on or prior to the final maturity date of the QSCB.
“Government Securities” means direct general obligations of, or obligations, the principal of and interest on which are unconditionally guaranteed by the United States of America, which may be United States Treasury Obligations such as the State and Local Government Series (SLGS) or which may consist of specified portions of interest thereon, such as those securities commonly known as CATS, TIGRS, AND STRPS, and may be in book entry form.
Redemption Provisions: Except as described below, the QSCB will not be subject to optional redemption or prepayment by the Issuer prior to its stated maturity, except in the following circumstances:
• To the extent that less than 100% of the available project proceeds of the QSCB are expended for qualified purposes by the close of the 3-year period beginning on the date of issuance of the QSCB (or if an extension of such expenditure period has been received by the Issuer from the Secretary of the Treasury Department, by the close of the extended period) the Issuer shall be required to notify Bank of their plans to redeem the non-qualified bonds within 90 days after the end of such period.
• The QSCB is subject to optional redemption prior to maturity at the option of the Issuer upon a final, non-appealable determination by the Internal Revenue Service or a court of competent jurisdiction over the matter that the bond does not qualify as a “qualified school construction bond” pursuant to Section 54F of the Code.
Any redemption of the QSCB prior to maturity shall be subject to the Yield Maintenance provision discussed below.
continued to #3

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