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HomeMy WebLinkAboutORD 3755·. CITY OF RENTON,WASHINGTON ORDINANCE NO.3755 AN ORDINANCE adoptIng a system of regIstratIon of bonds and oblIgatIons. WHEREAS,SectIon 103()of the Internal Revenue Code of 1954,as amended,requires municipal bonds and obligations offered to the publIc,havIng a maturIty of more than one year and Issued after June 30,1983,to be In regIstered for.as a condItIon of the exemptIon from federal Income taxatIon of the interest on those bonds and obligations;and WHEREAS,SectIon 3,Chapter 167,Laws of 1983,1st ex. sess.,authorIzes cItIes to establIsh a system of regIsterIng the ownershIp of theIr bonds or oblIgatIons as to prIncIpal and Interest,or prIncIpal only;NOW,THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON,WASHINGTON,DO ORDAIN as follows: SectIon 1.DefInItIons.The followIng words shall have the following meanings when used 1n this ordinance: a.The term -bond*or *bonds·shall have the meaning defIned In SectIon 2(1),Chapter 167,Laws of 1983,as the same may be from time to time amended. b.The term 'CIty'shall mean the CIty of Renton, WashIngton. •o. c.The term 'fiscal agencies'shall mean the dUly appointed fiscal agencies of the State of Washington serving as such at any given time. d.The term ·obligation-or ·obligations-shall have the meaning defined in Section 2(3).Chapter.167.Laws of 1983. as the same may be from time to time amended. e.The term -registrar-shall be the person or persons designated by the City to register ownership of bonds or obligations under this ordinance. Section 2.Findings.The City Council of the City finds that it is in the City'S best interest to establish a system of registering the ownership of the City'S bonds and obligations in the manner permitted by law. Section 3.Adoption of Registration System.The City adopts the following system of registering the ownership of its bonds and obligations. a.Registration ReqUirement.All bonds and obliga- tions offered to the public.having a maturity of more than one year and issued by the City after June 30.1983.on which the interest 15 intended to be exempt froa federal income taxation shall be registered as to both principal and interest as pro- vided in this ordinance. b.Method of Registration.The registration of all City bonds and obligations required to be registered shall be carried out either by - 2 - 1)a book entry system of recording the owner- ship of the bond or obligation on the books of the City or the fiscal agencies.whether or not a physi- cal instrument 1s issued or 2)by recording the ownership of the bond or obligation and requiring as a condition of the trans- fer of ownership of any bond or obligation the surrender of the old bond or obligation and either the rels6uance of the old bond or obligation or the issuance of a new bond or obligation to the new owners. No transfer of any bond or obligation subject to registration requirements shall be effective until the name of the new owner and the new owner's mailing address,together with such other information deemed appropriate by the reqistrar.shall be recorded on the books of the registrar. c.Denominations.Except as may be provided other- wise by the ordinance authorizing their issuance.registered bonds or obligations may be issued and reissued in any denomina- tion up to the outstanding principal amount of the bonds or obligations of which they are a part.Such denominations may represent all or a part of a maturity or several maturities and on relssuance may be 1n smaller amounts than the individual denominations for which they are reissued. - 3 - d.Appointment of Reqistrar.Unless otherwise provided in the ordinance authorlzing the issuance of registered bonds or obligations.the City Finance Director shall be the registrar for all registered interest-bearing warrants.install- ment contracts.interest-bearing leases and other registered bonds or obligations not usually subject to trading and the fiscal agencies shall be the registrar for all other City bonds and obligations. e.Duties of Reqistrar.The registrar shall serve as the Clty·s authenticating trustee.transfer agent.registrar and paying agent for all registered bonds and obligations for which he,she.or it serves as registrar and shall comply fully with all applicable federal and state laws and regulations respecting the carrying out of those duties. The rights.duties.responsibilities and compensation of the registrar shall be prescribed in each ordinance authoriz- ing the issuance of the bonds or obligations.which rights. duties.responsibilities and compensation shall be embodied in a contract executed by the City Finance Director dnd the registrar. In instances when the fiscal agency serves as regis- trar,the City adopts by reference the contract between the State Finance Committee of the State of Washington and the fiscal agencies 1n lieu of executing a separate contract and prescribing by ordinance the rights.duties.obligations and compensation of the registrar.As well.when the City Finance - 4 - Director serves as registrar,a separate contract shall not be required. In all cases when the registrar is not the fiscal agencies.the ordinance authorizing the issuance of the regis- tered bonds or obligations shall specify the terms and condi- tions of 1)making payments of principal and interest; 2)printing any physical instruments.includ- ing the use of identifying numbers or other designation; 3)specifying record and payment dates; 4)determining denominations; 5)establishing the manner of communicating with the owners of the bonds or obligations; 6)establishing the methods of receipting for the physical instruments for payment of principal, the destruction of such instruments and the certifi- cation of such destruction; 7)registering or releasing security inter- ests,if any;and 8)such other matters pertaining to the registration of the bonds or obligations authorized by such ordinance as the City may deem to be necessary or appropriate. - 5 - ·' Section 4.Statement of Transfer Restrictions.Any physi- cal instrument issued or executed by the City SUbject to regis- tration under this ordinance shall state on its face that the principal of and interest on the bonds or obligations shall be paid only to the owner thereof registered as such on the books of the registrar as of the record date defined in the instrument and to no other person,and that such instrument,either princi- pal or interest,may not be assigned except on the books of the registrar. PASSED BY THE CITY COUNCIL this 21st day of November.1983. MAXINE MOTOR.City Clerk APPROVED BY THE MAYOR this 25th day of November.1983. Approved as to form: Ci ty _.~~tQt.d.ii=._.__,....~..:..\.:.,~;:.:... ,Date of Publication:11/25/83 0529r - 6 -