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PROPOSED ORDINANCE
AN ORDINANCE providing for the issuance of General Obligation Refunding Bonds of The County of Cook, Illinois.
WHEREAS, Section 6(a) of Article VII of the 1970 Constitution of the State of Illinois provides that “a County which has a Chief Executive Officer elected by the electors of the County (is) a Home Rule Unit” and The County of Cook, Illinois (the “County”), has a Chief Executive Officer elected by the electors of the County and is therefore a Home Rule Unit and may, under the power granted by said Section 6(a) of Article VII of the 1970 Constitution of the State of Illinois, as supplemented by the Local Government Debt Reform Act of the State of Illinois, as amended (the “Debt Reform Act”), and the other Omnibus Bond Acts, as amended, exercise any power and perform any function pertaining to its government and affairs, including, but not limited to, the power to tax and to incur debt; and
WHEREAS, the County has the power to incur debt payable from ad valorem property tax receipts or from any other lawful source and maturing within 40 years from the time it is incurred without prior referendum approval; and
WHEREAS, the Board of Commissioners of the County (the “Corporate Authorities”) has not adopted any ordinance, resolution, order or motion or provided any County Code provisions which restrict or limit the exercise of the home rule powers of the County in the issuance of general obligation bonds without referendum for corporate purposes or which provides any special rules or procedures for the exercise of such power; and
WHEREAS, the County has heretofore issued and there are now outstanding General Obligation Refunding Bonds, Series 2011A (the “2011A Bonds”); and
WHEREAS, the 2011A Bonds are now outstanding in the aggregate principal amount of $181,000,000, mature and are subject to optional redemption on the dates and as provided in the ordinance adopted by the Corporate Authorities on July 27, 2011, as amended by an ordinance adopted by the Corporate Authorities on September 7, 2011 (the “Series 2011 Ordinances”) and authorizing the issuance of the 2011A Bonds; and
WHEREAS, the County has heretofore issued and there are now outstanding Taxable General Obligation Refunding Bonds, Series 2011B (the “2011B Bonds” and, together with the 2011A Bonds, the “Prior Bonds”); and
WHEREAS, the 2011B Bonds are now outstanding in the aggregate principal amount of $106,350,000, mature and are subject to optional redemption on the dates and as provided in the Series 2011 Ordinances; and
WHEREAS, it is in the best interests of the County and its citizens and is necessary for the government and affairs of the County to authorize the refunding (the “Refunding”) from time to time of all or a portion of the Prior Bonds, or of all or any portion of any installment of interest coming due thereon, all as may be advisable from time to time in order to achieve debt service savings for the County or to restructure the debt service burden on the County; and
WHEREAS, the aggregate costs of the Refunding, including consulting, municipal advisory, legal services, underwriters’ discount, trustee and other financial fees as shall be necessary, are less than the anticipated savings to be generated from the Refunding; and
WHEREAS, the Corporate Authorities accordingly do hereby determine that it is advisable and in the best interests of the County to borrow from time to time for the purpose of the Refunding, and to pay costs of issuance, and, in evidence of such borrowing, to issue one or more series of full faith and credit bonds of the County, as hereinafter authorized:
NOW THEREFORE BE IT ORDAINED by the Board of Commissioners of The County of Cook, Illinois, as follows:
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Table of Contents
SECTION HEADING PAGE
Sec. 1. Definitions. 6
Sec. 2. Findings. 13
Sec. 3. Bond Details. 14
Sec. 4. Book-Entry Provisions. 16
Sec. 5. Redemption. 18
Sec. 6. Registration of Bonds; Persons Treated
as Owners; Bonds Lost, Destroyed, Etc. 25
Sec. 7. Security. 27
Sec. 8. Forms of Bonds. 28
Sec. 9. Taxes Levied; Payment of Principal,
Premium and Interest; Covenants re
Pledged Taxes; Ordinance and Bond Orders
to be Filed; Abatement. 36
Sec. 10. Powers as to Bonds and Pledge. 37
Sec. 11. Sale of the Bonds; Bond Orders;
Financing Team; Execution of Documents
Authorized; Undertakings; Offering Materials;
Credit Facilities;
Purchase Refunding. 38
Sec. 12. Creation of Funds and Appropriations;
Abatement of Taxes Levied for Refunded
Bonds. 44
Sec. 13. General Tax Covenants. 49
Sec. 14. Registered Form. 50
Sec. 15. Further Tax-Exemption Covenants. 50
Sec. 16. Opinion of Counsel Exception. 52
Sec. 17. Payment and Discharge; Refunding. 52
Sec. 18. Duties of Trustee. 54
Sec. 19. Rights of Trustee. 56
Sec. 20. Individual Rights of Trustee. 57
Sec. 21. Trustee’s Disclaimer. 57
Sec. 22. Eligibility of Trustee. 57
Sec. 23. Replacement of Trustee. 58
Sec. 24. Successor Trustee by Merger. 59
Sec. 25. Compensation. 59
Sec. 26. Definition of Events of Default; Remedies. 59
Sec. 27. Notices of Default under Ordinance. 61
Sec. 28. Termination of Proceedings by Trustee. 61
Sec. 29. Right of Holders to Control Proceedings. 61
Sec. 30. Right of Holders to Institute Suit. 62
Sec. 31. Suits by Trustee. 63
Sec. 32. Remedies Cumulative. 63
Sec. 33. Waiver of Default. 63
Sec. 34. Application of Monies After Default. 63
Sec. 35. This Ordinance a Contract. 65
Sec. 36. Supplemental Ordinances. 66
Sec. 37. Effect of Consents. 70
Sec. 38. Signing by Trustee of Amendments and
Supplements. 70
Sec. 39. Notices. 71
Sec. 40. Bondholders’ Consents. 71
Sec. 41. Limitation of Rights. 72
Sec. 42. Partial Invalidity. 72
Sec. 43. List of Bondholders. 72
Sec. 44. Rights and Duties of Trustee. 72
Sec. 45. Prior Inconsistent Proceedings. 73
Sec. 46. Immunity of Officers and Employees of County. 73
Sec. 47. Passage and Approval. 74
Effective date: This ordinance shall be in effect immediately upon adoption
Link to Full Text: <http://tiny.cc/4gwjuz>
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