HomeMy WebLinkAboutord1990-130i
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I111ATCOM COUNTY COUNCIL AGENDA BILL NO. 90 -426
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12/3/90
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Executive- I I I I_
SUBJECT' AN ORDINANCE OF WHATCOM COUNTY, WASHINGTON, PROVIDING FOR THE ISSUANCE AND SALE
OF LOCAL AND ROAD IMPROVEMENT DISTRICT NO. 10 REFUNDING BOND ANTICIPATION NOTES OF THE COUNTY,
IN'ORDER TO EXTEND THE INTERIM FINANCING FOR IMPROVEMENTS WITHIN LOCAL AND ROAD IMPROVEMENT
DISTRICT NO. 10; AND FIXING THE DATE, INTEREST RATE, MATURITY, FORM, TERMS AND COVENANTS OF
SAID NOTES; AND CONFIRMING THE SALE OF SAID NOTES.
ATTACHMENTS:
Piiblic Hearing Needed? Yes /_/ No
SUMMARY STATEMENT.•
This ordinance is ndcessary to issue bond anticipation notes to roll over existing
bond anticipation notes until June 1991.
ORIGINATORS RECOMMENDED ACTION:
Recommend Council approval.
CORMITTEE ACTION (including dates):
COUNCIL ACTION (including dates):
12- 18 -90: Council passed 6 -0
Related rile Ntimbers: Ordinance or Resolution Number. • ORD90 -130
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1.1
WHATCOM COUNTY, WASHINGTON
LOCAL AND ROAD IMPROVEMENT DISTRICT NO. 10
REFUNDING BOND ANTICIPATION NOTES, 1991
$ $1,095,000.00
ORDINANCE NO. 90 -130
AN ORDINANCE OF WHATCOM COUNTY, WASHINGTON, PRO-
VIDING FOR THE ISSUANCE AND SALE OF LOCAL AND
ROAD IMPROVEMENT DISTRICT NO. 10 REFUNDING BOND
ANTICIPATION NOTES OF THE COUNTY, IN ORDER TO
EXTEND THE INTERIM FINANCING FOR IMPROVEMENTS
WITHIN LOCAL AND ROAD IMPROVEMENT DISTRICT
NO. 10; AND FIXING THE DATE, INTEREST RATE,
MATURITY, FORM, TERMS AND COVENANTS OF SAID
NOTES; AND CONFIRMING THE SALE OF SAID NOTES.
PASSED December 18, 1990
Prepared by:
PRESTON THORGRIMSON SHIDLER GATES & ELLIS
Seattle, Washington
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TABLE OF CONTENTS*
SECTION
1.
Definitions . . . . . . . . . . . . . . .
. . 2
SECTION
2.
Authorization of Bonds . . . . . . . . . .
. . 4
SECTION
3.
Authorization of 1991 Notes . . . . . . .
. . 4
SECTION
4.
No Right of Prior Redemption . . . . . . .
. . 5
SECTION
5.
Source of Payment for the 1991 Notes . . .
. . 5
SECTION
6.
Guaranty Fund . . . . . . . . . . . . . .
. . 5
SECTION
7.
LRID No. 10 Fund and 1989 Note Fund . . .
. . 6
SECTION
8.
1991 Note Fund . . . . . . . . . . . . . .
. . 7
SECTION
9.
Covenants . . . . . . . . . . . . . . . .
. . 8
SECTION
10.
Form of 1991 Notes . . . . . . . . . . . .
. . 9
SECTION
11.
Execution and Delivery of Notes . . . . .
. . 11
SECTION
12.
Agreements Severable . . . . . . . . . . .
. . 12
SECTION
13.
Additional or Supplemental Ordinances . .
. . 12
SECTION
15.
Sale of the 1991 Notes . . . . . . . . . .
. . 14
SECTION
15.
Defeasance . . . . . . . . . . . . . . . .
. . 14
* This Table of Contents and the Cover Page are not a part of
this ordinance and are included only for the convenience of the
reader.
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INTRODUCED BY: rnnGPni-
PROPOSED BY: Executive
DATE INTRODUCED: 12 -4 -90
ORDINANCE NO. 90 -130
AN ORDINANCE OF WHATCOM COUNTY, WASHINGTON, PROVIDING
FOR THE ISSUANCE AND SALE OF LOCAL AND ROAD
IMPROVEMENT DISTRICT NO. 10 REFUNDING BOND
ANTICIPATION NOTES OF THE COUNTY, IN ORDER TO
EXTEND THE INTERIM FINANCING FOR IMPROVEMENTS
WITHIN LOCAL AND ROAD IMPROVEMENT DISTRICT NO. 10;
AND FIXING THE DATE, INTEREST RATE, MATURITY,
FORM, TERMS AND COVENANTS OF SAID NOTES; AND CON-
FIRMING THE SALE OF SAID NOTES.
WHEREAS, Whatcom County, Washington (the "County ") has
heretofore, by Ordinance No. 89 -38, formed Local and Road
Improvement District No. 10 ("LRID No. 1011) for the purpose of
undertaking, within its boundaries, certain road improvements,
curbs, gutters, sidewalks, street lighting, storm drainage,
sanitary sewer systems, domestic water, power and telephone and
landscaping (the "Improvements "); and
WHEREAS, pending the completion of the Improvements and the
issuance of the County's local and road improvement district
bonds, the County borrowed money and issued its local and road
improvement district bond anticipation notes in the principal
amount of $1,095,000 pursuant to Ordinance No. 89 -112 of the
County Council, under date of December 21, 1989 (the "1989
Notes "); and
WHEREAS, pending the confirmation of the final assessment
roll for LRID No. 10, the County has determined to extend the
26 II maturity of the 1989 Notes by refunding with a 1991 series of
Ordinance - 1
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local and road improvement district bond anticipation notes in
the principal amount of $1,095,000; and
WHEREAS, Harper, McLean & Company, Seattle, Washington, has
offered to purchase such refunding local and road improvement
bond anticipation notes of the District in the aggregate prin-
cipal amount of $1,095,000 on the terms hereinafter set forth;
and
WHEREAS, in the judgment of the County Council it is in the
best interests of the County that said notes be sold pursuant to
such offer;
NOW, THEREFORE, BE IT ORDAINED BY THE WHATCOM COUNTY COUN-
CIL:
SECTION 1. Definitions. As used in this ordinance, the
following words shall have the following meanings:
"Assessments" means all assessments levied in Local and Road
Improvement District No. 10. "Assessments" includes any install-
ments of assessments and any interest or penalties which may be
due thereon.
"Bonds" means the Local and Road Improvement District No. 10
Bonds in the principal amount of $1,095,000, authorized pursuant
to Section 2 of Ordinance No. 89 -112.
"Council" means the County Council of Whatcom County as the
same shall be duly and regularly constituted from time to time.
"County" means Whatcom County, a political subdivision duly
organized and existing under the laws of the State of Washington.
Ordinance - 2
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"Guaranty Fund" means the County's road improvement guaranty
fund, established pursuant to RCW 36.88.220 -.230 and Ordinance
No. 80 -60.
"Improvements" means the improvements to be constructed
within LRID No. 10.
"LRID No. 10" means Local and Road Improvement District
No. 10 created pursuant to Ordinance No. 89 -38 of the Council.
"LRID No. 10 Fund" means the Local and Road Improvement
District No. 10 Fund, authorized to be created by Section 6 of
Ordinance No. 89 -38.
01989 Notes" means the County's Local and Road Improvement
District Bond Anticipation Notes, 1989, issued under date of
December 21, 1989 pursuant to Ordinance No. 89 -112 of the Coun-
cil.
"1991 Notes" means the interest bearing refunding bond
anticipation notes in the aggregate principal amount of not to
exceed $1,095,000 to be issued pursuant to this ordinance to
refund and extend the maturity of the 1989 Notes.
01989 Note Fund" means the special fund of the County
designated as the Local and Road Improvement District No. 10 Bond
Anticipation Note Fund, 1989, authorized to be created by
Section 8 of Ordinance No. 89 -112.
01991 Note Fund" means the special fund of the County
designated as the Local and Road Improvement District No. 10 Bond
Anticipation Note Fund, 1991, authorized to be created by
Section 8 of this ordinance.
Ordinance - 3
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"Treasurer" means the Whatcom County Treasurer or any suc-
cessor to his /her function as treasurer of the County.
"Underwriter" means Harper, McLean & Company, Seattle,
Washington.
SECTION 2. Authorization of Bonds. For the purpose of
providing funds to provide permanent financing for the Improve-
ments and a portion of the necessary expenses in connection
therewith, the County has heretofore, by Ordinance No. 89 -112,
authorized its special assessment bonds of the County to be
designated "Whatcom County, Washington Local and Road Improvement
District No. 10 Bonds, 1991," (the "Bonds").
SECTION 3. Authorization of 1991 Notes. In order to
extend the interim financing for the Improvements, to refund the
1989 Notes and in anticipation of the issuance of the Bonds, the
County shall issue its short term obligations in the form of bond
anticipation notes in the aggregate. principal amount of
$1,095,000. Said short term obligations shall be designated
"Whatcom County, Washington, Local and Road Improvement District
No. 10 Refunding Bond Anticipation Notes, 1991," shall be dated
as of the date of original issuance thereof to the Underwriter,
shall be in bearer form, shall be in denominations of $5,000
each, or any integral multiple thereof at the option of the
Underwriter, shall be numbered from 1 upward and shall mature on
June 1, 1991. The Notes shall bear interest on unpaid principal
from their date at the rate of S_ti,% per annum, payable at
maturity. Interest on the Notes shall be calculated on the basis
Ordinance - 4
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of a 360 -day year with 30 -day months. Both principal of and
interest on the Notes shall be payable in lawful money of the
United States of America, upon presentation and surrender at
maturity at the principal corporate trust offices of either of
the fiscal agencies of the State of Washington in the cities of
Seattle, Washington, or New York, New York.
SECTION 4. No Right of Prior Redemption. The 1991 Notes
are not subject to prepayment prior to their scheduled maturity.
SECTION 5. Source of Payment for the 1991 Notes. Both the
principal of and interest on the 1991 Notes are payable solely
from the proceeds of the sale of the Bonds or refunding bond
anticipation notes to be issued by the County, or from
Assessments or from the Guaranty Fund. The County hereby
covenants with the registered owner of each 1991 Note that it
will issue the Bonds, refunding bond anticipation notes, or use
moneys from the Guaranty Fund or a combination of the foregoing
in an amount sufficient, with any prepayments of Assessments, to
pay when due the principal of and interest on the 1991 Notes and
will thereupon redeem the 1991 Notes. The 1991 Notes are not a
general obligation of the County and are not payable otherwise
than as stated herein.
SECTION 6. Guaranty Fund. The County maintains a Guaranty
Fund pursuant to RCW 36.88.220 -.230 and Ordinance No. 80 -60 for
the purpose of guaranteeing to the extent of such Fund and the
manner provided in said statute and ordinance, the payment of its
road improvement district bonds and warrants issued to pay for
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any road improvement within the County. The County shall deposit
annually in the Guaranty Fund such sums as may be necessary to
establish and maintain a balance therein equal to at least fives
percent of the outstanding obligations thereunder. Money in the
Guaranty Fund shall be available to secure the repayment of the
1991 Notes as provided in RCW 36.88.230 and Ordinance No. 80 -60.
SECTION 7. LRID No. 10 Fund and 1989 Note Fund. The
County has heretofore, by Ordinance No. 89 -38, authorized the
creation of a special fund designated as the "Local Road Im-
provement District No. 10 Fund" (the "LRID No. 10 Fund ") and by
Ordinance No. 89 -112 has created the "Local and Road Improvement
District No. 10 Bond Anticipation Note Fund, 1989," (the 111989
Note Fund ") as a special fund for the payment of the 1989 Notes.
The proceeds of the 1991 Notes shall be paid into the 1989 Note
Fund and shall be utilized, together with excess money remaining
in the LRID No. 10 Fund to pay and redeem the 1989 Notes. The
remaining money in the LRID No. 10 Fund shall be utilized to pay
the costs of completing the acquisition, construction and in-
stallation of the Improvements within LRID No. 10, and costs
incidental thereto, and all costs incurred in connection with the
issuance of the 1991 Notes.
Note proceeds on hand in the LRID No. 10 Fund not
immediately needed to pay the costs of the Improvements and the
costs of the issuance and sale of the 1991 Notes shall be depos-
ited in or with such institutions or shall be invested by the
County Treasurer, in consultation with the Public Works Fiscal
Ordinance - 6
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Manager, in such obligations as may now or hereafter be permitted
to counties of the State of Washington by law and which will
mature prior to the date on which the money so invested is
anticipated to be needed. All interest earned and income or
profits derived by virtue of such investments shall remain in the
LRID No. 10 Fund and be used for the purposes for which the 1991
Notes are being issued, except that such money may be transferred
to the 1991 Note Fund to pay the interest or principal of the
1991 Notes as the same comes due. 1989 Note proceeds, or income
therefrom, not expended upon completion of the Improvements,
shall be deposited into the 1991 Note Fund to pay the principal
of and interest on the 1991 Notes. Upon completion of the
Improvements and payment of all costs related thereto, 1989 Note
prcceeds, if any, in the LRID No. 10 Fund, except for retainages
to pay remaining costs, shall be disbursed as hereinabove
provided.
SECTION 8. 1991 Note Fund. The Treasurer is hereby auth-
c, .-.-ized and directed to create a special fund of the County to be
k.-iown as the "Local and Road Improvement District No. 10 Bond
F.nticipation Note Fund, 1991," (the "1991 Note Fund ") which 1991
?:ote Fund shall be drawn upon for the sole purpose of paying the
principal of and interest on the 1991 Notes. Money on deposit in
the 1991 Note Fund not immediately needed to pay such interest or
principal may be temporarily deposited in such institutions or
invested in any obligations which are legal investments for
County funds. Any interest or profit from the investment of such
Ordinance - 7
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money shall be deposited into the 1991 Note Fund. The County
hereby covenants that it will deposit money into the 1991 Note
Fund from the LRID No. 10 Fund as provided in Section 5 of this
ordinance in amounts and at times sufficient to pay the interest
on the 1991 Notes as the same becomes due and payable.
SECTION 9. Covenants. The County hereby covenants with
the owners of the 1991 Notes as follows:
A. 1991 Notes to Remain Tax Exempt; Nonarbitracre. The
County covenants that it will not take or permit to be taken on
its behalf any action that would adversely affect the exemption.
from federal income taxation of the interest on the 1991 Notes
and will take or require to be taken such acts as may reasonably
be within its ability and as may from time to time be required
under applicable law to continue the exemption from federal
income taxation of the interest on the 1991 Notes. Without
limiting the generality of the foregoing, the County covenants
that it will not take any action or fail to take any action with
respect to the investment of the proceeds of any 1991 Notes or
other funds that would result in constituting the 1991 Notes
"arbitrage bonds" within the meaning of such term as used in
Section 148 of the Internal Revenue Code of 1986, as amended (the
"Code ") .
The County represents that it has not been notified of any
listing or proposed listing by the Internal Revenue Service to
the effect that it is an issuer whose arbitrage certifications
may not be relied upon.
Ordinance - 8
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B. Designation and Use of Proceeds. The County further
covenants that it will not take any action or permit any action
to be taken that would cause the 1991 Notes to constitute "pri-
vate activity bonds" under Section 141 of the Code. The County
hereby designates the 1991 Notes as "qualified tax - exempt obli-
gations" under Section 265(b) of the Code. The County does not
expect to issue tax - exempt obligations in an aggregate principal
amount in excess of $10,000,000 during either of the calendar
years, 1990 or 1991.
SECTION 10. Form of 1991 Notes. The 1991 Notes shall be in
substantially the following form:
UNITED STATES OF AMERICA
No.
STATE OF WASHINGTON
WHATCOM COUNTY, WASHINGTON
LOCAL AND ROAD IMPROVEMENT DISTRICT NO. 10
REFUNDING BOND ANTICIPATION NOTE, 1991
SEE REVERSE SIDE FOR MATURITY DATE:
CERTAIN ABBREVIATIONS
CUSIP NUMBER:
Principal Amount: DOLLARS
Whatcom County, Washington, a political subdivision of the
State of Washington (hereinafter called the "County ") , hereby
acknowledges itself to owe and for value received promises to pay
to BEARER, but solely from the hereinafter defined 1991 Note Fund
on the Maturity Date the Principal Amount specified above and to
pay interest thereon from the date hereof for until payment of
this note, at the rate of % per annum, payable on the
Maturity Date. Both principal of and interest on this note are
payable in lawful money of the United States of America.
Interest shall be calculated on the basis of a year of 360 days
and twelve 30 -day months. Both the Principal Amount hereof and
interest hereon shall be paid on the Maturity Date upon
Ordinance - 9
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presentation and surrender of this note at the office of the
fiscal agency of the State of Washington in either Seattle,
Washington or New York, New York.
Reference is hereby made to additional provisions of this
note set forth on the reverse side hereof and such additional
provisions shall for all purposes have the same effect as if set
forth on this space. Capitalized terms used of the face and the
reverse side hereof have the meanings given such terms in the
hereinafter defined Note Ordinance.
It is hereby certified that all acts, conditions and things
required by the Constitution and statutes of the State of
Washington to exist, to have happened, been done and performed
precedent to and in the issuance of this note have happened, been
done and performed and that the issuance of this note and the
notes of this series does not violate any constitutional, statu-
tory or other limitation upon the amount of indebtedness that the
County may incur.
IN WITNESS WHEREOF, Whatcom County, Washington, has caused
this note to be signed with the manual or facsimile signature of
the County Executive and attested by the manual or facsimile
signature of the Clerk of its County Council (at least one of
which signatures shall be manual), and the seal of the County to
be impressed or a facsimile thereof to be imprinted hereon, as of
this day of , 19_
WHATCOM COUNTY, WASHINGTON
By
County Executive
ATTEST:
Clerk of the County Council
ADDITIONAL PROVISIONS
This note is one of an authorized issue of notes of like
date and tenor, except as to number and amount, in the aggregate
principal amount of $1,095,000. The notes of this issue are
issued under and in accordance with the provisions of the Con-
stitution and applicable statutes of the State of Washington,
the Charter of the County and Ordinance No. 90- 130 (herein
called the "Note Ordinance ") of the County for the purpose of
refunding and extending the maturity of certain interim fi-
nancing bond anticipation notes, the proceeds of which were used
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to undertake certain improvements within Local and Road Improve-
ment District No. 10 ( "LRID No. 10 ").
Both principal of and interest on this note are payable
solely from the proceeds of Local and Road Improvement District
No. 10 bonds or refunding bond anticipation notes to be issued
by the County, or from assessments and interest thereon levied
in LRID No. 10 to pay the total costs and expenses of the
improvements therein, or from the Guaranty Fund of the County.
This note is not subject to redemption prior to its
scheduled maturity.
The County hereby irrevocably covenants and agrees with the
holder of this note that it will keep and perform all the
covenants of this note and of the Note Ordinance to be by it
kept and performed. Reference is hereby made to the Note
Ordinance for a complete statement of such covenants and for the
definition of capitalized terms used herein.
SECTION 11. Execution and Delivery of Notes. The Notes
shall be executed on behalf of the County by the manual or
facsimile signature of the County Executive and attested by the .
manual or facsimile signature of the Clerk of the County Coun-
cil, - at least one of which signatures shall be manual. The
official seal of the County shall be impressed or a facsimile
thereof imprinted on each Note. In case any officer whose
signature shall appear on any Note shall cease to be an officer
before the delivery of such Note, such signature shall neverthe-
less be valid and sufficient for all purposes, and such Note may
be authenticated and delivered the same as if such officer had
remained in office until such delivery.
Ordinance - 11
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Upon the passage of this ordinance the proper officials of
the County shall do all things necessary for the prompt execu-
tion and delivery of the Notes to the Underwriter, hereinafter
appointed.
SECTION 12. Agreements Severable. If any one or more of
the covenants or agreements provided in this ordinance to be
performed on the part of the County shall be declared by any
court of competent jurisdiction to be contrary to law, then such
covenant or covenants, agreement or agreements, shall be null
and void and shall be deemed severable from the remaining
covenants and agreements in this ordinance and shall in no way
affect the validity of the other provisions of this ordinance or
of the Notes.
SECTION 13. Additional or Supplemental Ordinances.
A. The County Council from time to time and at any time
may adopt an ordinance or ordinances additional hereto, which
ordinance or ordinances thereafter shall become a part of this
ordinance, for any one or more or all of the following pur-
poses:
1. To add to the covenants and agreements of the
County in this ordinance other covenants and agreements
thereafter to be observed, which shall not adversely affect
the interests of the owners of any Notes, or to surrender
any right or power herein reserved to or conferred upon the
County.
Ordinance - 12
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2. To make such provisions for the purpose of curing
any ambiguities or of curing, correcting, or supplementing
any defective provision contained in this ordinance or any
supplemental ordinance in regard to matters or questions
arising under such ordinances as the Council may deem
necessary or desirable and not inconsistent with such
ordinances and which shall not adversely affect the in-
terest of the owners of any Notes.
Any such additional ordinances of the County may be
adopted without the consent of the owners of any of the.
Notes at any time outstanding, notwithstanding any of the
provisions of subsection B of this section.
B. With the consent of the owners of not less than 65% in
aggregate principal amount of the Notes at the time outstanding,
the Council may adopt amendatory ordinances for the purpose of
adding any provisions to or changing in any manner or elimina-
ting any of the provisions of this ordinance or of any sup-
plemental ordinance; provided, however, that no such amendatory
ordinance shall:
1. Extend the fixed maturity of any of the Notes, or
reduce the rate of interest thereon, or extend the time of
payments of interest from their due date, or reduce the
amount of the principal thereof, without the consent of the
owner of each Note so affected; or
2. Reduce the aforesaid percentage of Noteowners
required to approve any such supplemental ordinance, with-
Ordinance - 13
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out the consent of the owners of all of the Notes then
outstanding.
It shall not be necessary for the consent of Note -
owners under this subsection B to approve the particular
form of any such proposed amendatory ordinance, but it
shall be sufficient if such consent shall approve the sub-
stance thereof.
SECTION 15. Sale of the 1991 Notes. The sale of the 1991
Notes to Harper, McLean & Company, Seattle, Washington (the
"Underwriter"), in the principal amount specified in their pro-
posal and upon the terms, conditions, covenants and price as set
forth in said proposal and in this ordinance, is hereby
approved, ratified and confirmed.
The County officials, their agents and representatives are
hereby authorized and directed to do everything necessary for
the acquisition, construction and installation of the Improve-
ments provided for herein, and for the proper issuance, execu-
tion and delivery of the 1991 Notes to the purchaser thereof,
and for the proper use and application of the funds derived from
such sale.
SECTION 15. Defeasance. In the event that money and /or
"Government Obligations," as such term is now or may hereafter
be defined in Ch. 39.53 RCW, maturing at such time or times and
bearing interest to be earned thereon in amounts sufficient to
redeem and retire the 1991 Notes in accordance with their terms
are set aside in a special account to effect such redemption or
Ordinance - 14
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retirement and such money and the principal of and interest on
such obligations are irrevocably set aside and pledged for such
purpose, then no further payments need be made into the 1991
Note Fund for the payment of the principal of and interest on
the 1991 Notes so provided for and such 1991 Notes shall cease
to be entitled to any lien, benefit or security of this
ordinance except the right to receive the funds so set aside and
pledged, and such 1991 Notes shall be deemed not to be
outstanding hereunder.
APPROVED this 18th day of December, 1990.
WHATCOM COUNTY COUNCIL
TCOM COU , WASHINGTON
ATTEST:
ai an
( ,/) Approved ( ) Vetoed
Ramona Reeves
Clerk of the Council
APPROVED AS TO FORM:
Deputy Prosecuting Attorney
Ordinance - 15
ILL �L Zwt
Shirley Van Za ten
County Executive
Date 19 - 1q- 50