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HomeMy WebLinkAbout2010-2-7654ORDINANCE NO. 2010-2-7654 AN ORDINANCE OF THE CITY OF PADUCAH, KENTUCKY AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION PUBLIC PROJECT BONDS, SERIES 2010, IN ONE OR MORE SUBSERIES, IN THE AGGREGATE PRINCIPAL AMOUNT OF $6,465,000 (SUBJECT TO A PERMITTED ADJUSTMENT INCREASING OR DECREASING THE SIZE OF SAID BONDS BY UP TO $645,000), FOR THE PURPOSE OF FINANCING THE COSTS OF THE ACQUISITION, CONSTRUCTION AND INSTALLATION OF PUBLIC PROJECTS IN THE CITY OF PADUCAH, KENTUCKY; APPROVING THE FORMS OF THE BONDS; AUTHORIZING DESIGNATED OFFICERS TO EXECUTE AND DELIVER THE BONDS; AUTHORIZING AND DIRECTING THE FILING OF NOTICE WITH THE STATE LOCAL DEBT OFFICER; PROVIDING FOR THE PAYMENT AND SECURITY OF THE BONDS; CREATING A BOND PAYMENT FUND; MAINTAINING THE HERETOFORE ESTABLISHED SINKING FUND; AUTHORIZING ACCEPTANCE OF THE BID OF THE BOND PURCHASER FOR THE PURCHASE OF THE BONDS; AND REPEALING INCONSISTENT ORDINANCES. WHEREAS, the City of Paducah, Kentucky (the "City") has determined the necessity of financing various public projects within the City, including the construction of Greenway Trail, the construction of a replacement for the existing Noble Park parking lot and construction of - related appurtenances, the resurfacing of City streets, the acquisition and installation of generators throughout the City, the acquisition and installation of traffic signals, the acquisition of the Executive Inn and related appurtenances and the construction and installation of public improvements on a portion of the site thereof, the acquisition and construction of an air dome pavilion, the acquisition of real property for use as a sports park and the acquisition of such additional improvements in substitution of any of the foregoing as may be identified in the budget of the City adopted for the fiscal year ending June 30, 2010 (collectively, the 'Project"); and WHEREAS, pursuant to the Constitution and Laws of the Commonwealth of Kentucky, and particularly Sections 66.011 et. seg of the Kentucky Revised Statutes, as amended (the "General Obligation Act") and Sections 58.010 et. seg. of the Kentucky Revised Statutes, as amended (the 'Public Project Act"), the City may issue bonds, subject to the requirements of the General Obligation Act and/or Public Project Act, to pay all or any portion of the costs of financing any public project that the City is authorized to acquire, improve or construct; and WHEREAS, the City has determined that it is in the best interests of the City that the Project should be financed through the issuance of City of Paducah, Kentucky General Obligation Public Project Bonds, Series 2010, in one or more subseries as hereinafter provided, in the approximate aggregate principal amount of $6,465,000 (collectively, the "Series 2010 Bonds" or "Bonds") to be sold and awarded to the successful bidder(s) (the "Purchaser(s)") at public, competitive sale in accordance with the provisions of Chapter 424 of the Kentucky Revised Statutes, as amended; and WHEREAS, pursuant to Section 1400U-1 of the Internal Revenue Code of 1986, as amended (the "Code"), the County of McCracken, Kentucky (the "County") is authorized to designate a "recovery zone" within the County for purposes of issuing Recovery Zone Economic Development Bonds (the "RZEDBs") under Section 1400U-2 of the Code and, if it should so determine, to allocate to other political subdivisions within the County, including the City, all or a portion of the County's $1,206,000 allocation of authorized RZEDBs from the United States Treasury; and WHEREAS, prior to the date of issuance and delivery of the Series 2010 Bonds, all or a portion of the City could be designated as a "recovery zone" and the County could determine to allocate to the City all or a portion of its authorization to issue RZEDBS; and WHEREAS, in the event such designation of a recovery zone within the City should ensue, and should the City receive from the County an allocation for the issuance of RZEDBs, the City desires to preserve its ability to designate a portion of the Series 2010 Bonds as RZEDBs, if, upon the advice of the City's financial advisors, it is determined that the issuance of a portion of the Series 2010 Bonds as a RZEDB is in the best financial interests of the City. BE IT ORDAINED BY THE BOARD OF COMMISSIONERS OF THE CITY OF PADUCAH, KENTUCKY: Section 1 — Incorporation of Preambles. The preambles of this Ordinance are hereby incorporated as an integral part of this Ordinance, to the same extent as if repeated herein verbatim, it being declared that the statements of fact set forth in such preambles are true and accurate in all respects. Section 2 -- Necessity, Authorization and Purpose. The City hereby declares that it is necessary to issue and authorizes the issuance of its General Obligation Public Project Bonds, Series 2010, in one or more subseries, in the aggregate principal amount of $6,465,000, subject to a permitted adjustment (the "Permitted Adjustment") increasing or decreasing the aggregate principal amount of Bonds awarded to the purchaser or purchasers thereof by up to $645,000 for the purpose of (i) financing the Project and (ii) paying the costs of issuance of the Series 2010 Bonds. The exact principal amount of Series 2010 Bonds and the designation of one 2 or more subseries to be issued shall be established in the Certificate of Award (as hereinafter defined). The City hereby retains the option that a portion of the Series 2010 Bonds to be issued for the purpose of financing the Project may be designated as Build America Bonds (the "Build America Bonds") as permitted by the American Recovery and Reinvestment Act of 2009 ("ARRA"). The City further retains the option that a portion of any such Build America Bonds, up to a maximum aggregate principal amount of $1,206,000, may further be designated as RZEDBs in the.Certificate of Award or in a subsequent designation instrument executed by the Mayor prior to the issuance and delivery of the Series 2010 Bonds (an "RZEDB Designation Certificate"), if all or a portion of the Project is determined to be located within a "recovery zone" designated by the County and the City receives from the County an allocation for the issuance of RZEDBs. The Mayor is hereby authorized and directed in the Certificate of Award to designate all or a portion of the Series 2010 Bonds issued for the Project as Build America Bonds and/or as RZEDBs, which Series 2010 Bonds, if so designated, shall bear interest which shall be included in gross income of bondholders for federal income tax purposes and shall bear such distinctive subseries designations as to further distinguish such Build America Bonds and/or RZEDBs from any of the Series 2010 Bonds being issued that are not so designated. The Mayor is further authorized to execute and deliver an RZEDB Designation Certificate, separately from the Certificate of Award, in the event all or a portion of the Project is determined to be located within a "recovery zone" designated by the County and the City receives from the County an allocation for the issuance of RZEDBs on a date following execution of the Certificate of Award and prior to issuance and delivery of the Series 2010 Bonds. Build America Bonds, including a RZEDB, are any obligation (other than a private activity bond) the interest on which would otherwise be excludable from gross income under Section 103 of the Internal Revenue Code of 1986, as amended (the "Code"). Therefore, with respect to any Series 2010 Bonds designated as Build America Bonds or as RZEDBs, such Series 2010 Bonds will comply with all requirements applicable to the issuance of tax-exempt governmental bonds. With respect to any Series 2010 Bonds designated as Build America Bonds (except RZEDBs), the City hereby irrevocably elects pursuant to Section 54AA(g) of the Code the direct credit payment to issuer option as provided in Section 6431 of the Code under which the United States Treasury will pay to the City 35% of the interest payable on such Series 2010 93 Bonds (contemporaneously with each interest payment date for such Series 2010 Bonds) so long as such Series 2010 Bonds so designated comply with all federal tax requirements of the Build America Bonds. With respect to any Series 2010 Bonds designated as RZEDBs, the City hereby accepts and acknowledges that the United States Treasury would pay to the City 45% of the interest payable on such RZEDBs (contemporaneously with each interest payment date for such RZEDBs) so long as such Series 2010 Bonds so designated comply with all federal tax requirements of a RZEDB. The Mayor or his designee is hereby authorized and directed to execute and file on behalf of the City a "Return for Credit Payments to Issuers of Qualified Bonds" (Form 8038 - CP) with the United States Department of the Treasury on the dates and at the place designated in Form 8038 -CP and applicable provisions of the Code and Treasury Regulations issued thereunder for the Build America Bonds and/or RZEDBs. Funds received by the City pursuant to the filing of Form 8038 -CP shall be deposited to the credit of the City's General Fund or the Sinking Fund, hereinafter defined, as appropriate, to provide for the timely payment of principal or interest on any Build America Bonds and/or RZEDBs, as the case may be. Section 3 -- Forms. The Series 2010 Bonds shall be issued as fully registered Series 2010 Bonds, shall be designated "General Obligation Public Project Bonds, Series 2010", with such additional subseries designations as may be necessary to distinguish any Build America Bonds and/or RZEDBs from any of the Series 2010 Bonds not so designated. The Series 2010 Bonds shall express upon their face the purpose for which they are issued, that they are issued under the General Obligation Act and shall be substantially in the form set forth in :io-. 01 The Series 2010 Bonds shall be in denominations as requested by the Purchasers, which shall be in integral multiples of five thousand dollars ($5,000). The Series 2010 Bonds shall each be dated their date of initial issuance and delivery, or such other date as is determined in a certificate of award accepting the bids of the Purchasers (the "Certificate of Award") to be executed by the Mayor on the date of the sale of the Series 2010 Bonds. The Series 2010 Bonds may be issued in book -entry -only form through the services of the Depository Trust Company ("DTC"). If the City determines to issue the Series 2010 Bonds in book -entry -only form the Designated Officers (hereinafter defined) are authorized to execute all documents necessary to accomplish such form of issuance. 2 Interest on the Series 2010 Bonds shall be payable on March 1 and September 1 of each year, commencing September 1, 2010 (an "Interest Payment Date") at the stated interest rate or rates on the principal amount thereof. The Series 2010 Bonds shall be serial or term bonds maturing, or subject to mandatory sinking fund redemption annually on the dates, in the years and in the amounts to be established in the Certificate of Award after advertised competitive sale of the Series 2010 Bonds based on the interest rates bid in the successful bids (the "Bids") and the provisions of this Section 3, provided that the final maturity date of the Series 2010 Bonds shall be as set forth in the Certificate of Award but shall be no later than March 1, 2030. The interest rate or rates on the Series 2010 Bonds shall be determined in the Certificate of Award based on the Bids; provided that the aggregate net interest cost of the Series 2010 Bonds shall not exceed eight percent (8.00%). The Series 2010 Bonds maturing on or after March 1, 2021 shall be subject to optional redemption prior to their maturity on any date on or after March 1, 2020, in whole or in part, in such order of maturity as the City may determine, and by lot within a maturity, at the election of the City upon 45 days' written notice to U.S. Bank National Association, Louisville, Kentucky (the "Paying Agent and Registrar") at a redemption price equal to the principal amount of such Series 2010 Bonds being redeemed, plus accrued interest to the date of redemption. Any Series 2010 Bonds designated as Build America Bonds and/or RZEDBs may contain such additional extraordinary optional or mandatory redemption provisions as may, upon the advice of the City's financial advisors and bond counsel, be necessary to accomplish the financial objectives of the City and/or achieve compliance with any provisions of the Code. The Mayor is hereby authorized and directed to administratively approve any such additional extraordinary optional or mandatory redemption provisions, and the execution of the Certificate of Award shall constitute conclusive evidence of the approval of such additional provisions. At least thirty (30) days before the redemption date of any Series 2010 Bonds subject to optional or mandatory redemption, the Paying Agent and Registrar shall cause a notice of such redemption either in whole or in part, signed by the Paying Agent and Registrar, to be mailed, first class, postage prepaid, to all registered owners of the Series 2010 Bonds to be redeemed in whole or in part at their addresses as they appear on the registration books kept by the Paying Agent and Registrar, but failure to mail any such notice shall not affect the validity of the proceedings for such redemption of Series 2010 Bonds for which such notice has been sent. 5 Each such notice shall set forth the date fixed for redemption, the redemption price to be paid and, if less than all of the Series 2010 Bonds of a subseries being payable by their terms on a single date then outstanding shall be called for redemption, the distinctive number or letters, if any, of such Series 2010 Bonds to be redeemed. On the date so designated for redemption, notice having been mailed in the manner under the conditions hereinabove provided and moneys for payment of the redemption price being held in the applicable bond payment fund by the Paying Agent and Registrar for the registered owners of the Series 2010 Bonds to be redeemed, the Series 2010 Bonds so called for redemption shall become and be due and payable at the redemption price provided for redemption of such Series 2010 Bonds on such date, interest on the Series 2010 Bonds so called for redemption shall cease to accrue, and the registered owners of such Series 2010 Bonds shall have no right in respect thereof except to receive payment of the redemption price thereof. Section 4 -- Execution and Delivery. The Series 2010 Bonds shall be executed by the manual or facsimile signature of the Mayor and duly attested by the manual or facsimile signature of the City Clerk (which, together with any other person as may be authorized by resolution are referred to as 'Designated Officers") and shall bear the manual authenticating signature of an authorized representative of the Paying Agent and Registrar. The Designated Officers are further authorized and directed to deliver the Series 2010 Bonds to the Purchasers, upon the terms and conditions provided herein, in the Certificate of Award and in the Bids, receive the proceeds therefor, execute and deliver such certificates and other closing documents and take such other action as may be necessary or appropriate in order to effectuate the proper issuance, sale and delivery of the Series 2010 Bonds. The City authorizes and directs the Paying Agent and Registrar to authenticate the Series 2010 Bonds and to deliver the Series 2010 Bonds to the Purchasers following execution of the Certificate of Award and payment of the respective purchase price thereof. Section 5 -- Payment. Payment of or on account of the interest on and principal of the Series 2010 Bonds shall be made directly to the Paying Agent and Registrar for the account of the registered owner. Interest on the Series 2010 Bonds shall be payable by check, mailed to the person whose name appears on the fifteenth day preceding an Interest Payment Date on the bond registration records as the registered owner, on each Interest Payment Date or by other transfer of funds acceptable to such registered owner and the Paying Agent and 2 Registrar. Principal shall be payable in such coin or currency of the United States of America as shall be legal tender for the payment of public and private debts at the time and place of payment upon delivery of the Series 2010 Bonds to the Paying Agent and Registrar or by other transfer of funds acceptable to the Paying Agent and Registrar and such registered owner. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Series 2010 Bonds to the extent of the sum or sums so paid. Section 6 — Filing and Approvals. The Designated Officers are hereby authorized to undertake and cause all filings of notices or information, and to obtain such other approvals, which may be required by law to be filed or obtained by the City, including, but not limited to, the filing with the State Local Debt Officer required by law. Section 7 -- Bond Payment Fund, Payment of Series 2010 Bonds. There is hereby established with the Paying Agent and Registrar a bond payment fund in the name of the City to be known as General Obligation Public Project Bonds, Series 2010 Bond Payment Fund (the 'Bond Payment Fund"), into which the City covenants to deposit,and into which the Designated Officers are hereby authorized and directed to deposit from the Sinking Fund (hereinafter defined), on or before the twenty-fifth day of each month which precedes an Interest Payment Date, the amount required to pay principal of and interest due on the Series 2010 Bonds on such Interest Payment Date. The Paying Agent and Registrar is further directed to establish such additional subaccounts within the Bond Payment Fund as may be necessary in connection with the issuance of multiple subseries of the Series 2010 Bonds. The Paying Agent and Registrar shall, without further authorization from the City, withdraw from the Bond Payment Fund, on such Interest Payment Date, the amounts necessary to pay principal of, and interest on, the Series 2010 Bonds to the registered owners of the same. The Paying Agent and Registrar is hereby appointed depository of the Bond Payment Funds with respect to the Series 2010 Bonds. If the City shall fail or refuse to make any required deposit in the Bond Payment Funds from the Sinking Fund, the Paying Agent and Registrar shall (i) notify any agency of the Commonwealth of Kentucky or any political subdivision thereof which may collect and distribute taxes or revenues for the City to seek any available necessary or proper remedial action; and (ii) upon being indemnified against cost and expense, exercise any remedy provided in the Act or at law or in equity for the benefit of the owner of the Series 2010 Bonds or its 7 assignee, and shall disburse all funds so collected to the owners of the Series 2010 Bonds as payment of the Series 2010 Bonds. Section 8 -- General Obligation; Maintenance of Sinking Fund. The Series 2010 Bonds shall be full general obligations of the City and, for the payment of said Series 2010 Bonds and the interest thereon, the full faith, credit and revenue of the City are hereby pledged for the prompt payment thereof. During the period the Series 2010 Bonds are outstanding, there shall be and there hereby is levied on all the taxable property in the City, in addition to all other taxes, without limitation as to rate, a direct tax annually in an amount sufficient to pay the principal of and interest on the Series 2010 Bonds when and as due, it being hereby found and determined that current tax rates are within all applicable limitations. Said tax shall be and is hereby ordered computed, certified, levied and extended upon the tax duplicate and collected by the same officers in the same manner and at the same time that taxes for general purposes for each of said years are certified, extended and collected. Said tax shall be placed before and in preference to all other items and for the full amount thereof provided, however, that in each year to the extent that the other lawfully available funds of the City are available for the payment of the Series 2010 Bonds and are appropriated for such purpose, the amount of such direct tax upon all of the taxable property in the City shall be reduced by the amount of such other funds so available and appropriated. Pursuant to Ordinance No. 2001-5-6353 adopted by the City, there has heretofore been established with the City a sinking fund (the "Sinking Fund"), which is hereby ordered to be maintained and continued as long as any of the Series 2010 Bonds shall remain outstanding and unpaid. The funds derived from said tax levy hereby required or other lawfully available funds shall be placed in the Sinking Fund and, together with interest collected on the same, are irrevocably pledged for the payment of the interest on and principal of all bonds issued under the General Obligation Act and Tax -Supported Leases, as defined in the General Obligation Act, when and as the same fall due. Amounts shall be transferred from the Sinking Fund to the Bond Payment Fund at the times and in the amounts required by Section 7 hereof. Section 9 — Sale of Bonds; Certificate of Award. The Designated Officers are hereby directed to sell the Series 2010 Bonds to the Purchasers at advertised competitive sale, the final principal amount of, the principal amortization of and the interest rate or rates on the Series M. 2010 Bonds to be established in accordance with the requirements of Sections 1 and 2 hereof and the Certificate of Award. Section 10 -- Registered Owner; Transfer; Exchange. As long as the Series 2010 Bonds executed and delivered hereunder shall remain outstanding, the Paying Agent and Registrar shall maintain an office for the registration of such Series 2010 Bonds and shall also keep at such office books for such registration and transfers. The registered owner of the Series 2010 Bonds, as set forth in the registration books maintained by the Paying Agent and Registrar on the fifteenth day preceding an Interest Payment Date, or its assignees, for purposes of this Bond Ordinance, to the extent of its interest, shall be treated as the owner of the Series 2010 Bonds and shall be entitled to all rights and security of the owner of the Series 2010 Bonds hereunder. Upon surrender for registration of transfer of the Series 2010 Bonds at the office of the Paying Agent and Registrar with a written instrument of transfer satisfactory to the Paying Agent and Registrar, duly executed by the registered owner or the. registered owner's duly authorized attorney, the Paying Agent and Registrar shall execute and deliver, in the name of the designated transferee or transferees, one or more Series 2010 Bonds of the same series or subseries of any authorized denomination and of a like tenor and effect. All Series 2010 Bonds, upon surrender thereof at the office of the Paying Agent and Registrar, may, at the option of the registered owner thereof be exchanged for an equal aggregate principal amount of Series 2010 Bonds of the same series or subseries of any authorized denomination. In all cases in which the privilege of exchanging or transferring Series 2010 Bonds is exercised, the Paying Agent and Registrar shall execute and deliver Series 2010 Bonds in accordance with the provisions of this Section. Every such exchange or transfer of Series 2010 Bonds, whether temporary or definitive, shall be without charge; provided that the Paying Agent and Registrar may impose a charge sufficient to reimburse it for any tax, fee or other governmental charge required to be paid with respect to such exchange or transfer, which sum or sums shall be paid by the person requesting such exchange or transfer as a condition precedent to the exercise of the privilege of making such exchange or transfer. Section 11 -- Disposition of Proceeds. The proceeds of the sale of the Series 2010 Bonds shall be deposited, together with other available funds of the City, as follows: (a) an E amount sufficient to pay the costs of issuing the Series 2010 Bonds shall be deposited to a special cost of issuance fund hereby directed to be established and designated as the "City of Paducah, Kentucky General Obligation Public Project Bonds, Series 2010 Cost of Issuance Fund" (the "Cost of Issuance Fund") and (b) the amount necessary to finance the costs of the Project shall be deposited to a special construction fund hereby directed to be established and designated as the "City of Paducah Series 2010 Construction Fund" (the "Construction Fund"), which Construction Fund shall be held at the depository bank designated as such in the Certificate of Award (the "Construction Fund Depository") and used solely for the acquisition, construction and improvement of the Project, and (c) the remainder of the proceeds, if any, shall be deposited in the applicable subaccount, if any, of the Bond Payment Fund. In the event of the issuance of the Series 2010 Bonds in multiple subseries, the depositories of the Cost of Issuance Fund and the"'Construction Fund shall establish subaccounts within each of the Cost of Issuance Fund and the Construction i iui -to distinguish the sources of funds therein deposited by a subseries of tom' Series 2010 Bonds. Section 12 -- Discharge of Bond Ordinance. If the City shall pay or cause to be paid, or there shall otherwise be paid, to the owners of the Series 2010 Bonds the total principal and interest due or to become due thereon through maturity, in the manner stipulated therein and in this Bond Ordinance, then the pledges made under this Bond Ordinance, and all covenants, agreements and other obligations of the City hereunder, shall thereupon cease, terminate and become void and be discharged and satisfied. Section 13 -- Designation of Series 2010 Bonds. The City designates the Series 2010 Bonds or any portion of Bonds not otherwise designated as Build America Bonds or RZEDBs as "qualified tax-exempt obligations" for the purposes set forth in § 265(b)(3) of the Internal Revenue Code of 1986, as amended. The City does not anticipate issuing more than $30,000,000 of "qualified tax-exempt obligations" during calendar year 2010. Section 14 -- Severability. If any one or more of the provisions of this Bond Ordinance should be determined by a court of competent jurisdiction to be contrary to law, then such provisions shall be deemed to be severable from all remaining provisions and shall not affect the validity of such other provisions. Section 15 -- Inconsistent Actions. All prior ordinances, resolutions or parts thereof inconsistent herewith are hereby repealed. 10 Section 16 -- Open Meetings Compliance. All meetings of the City Commission and of its committees and any other public bodies, at which the formal actions in connection with the issuance of the Series 2010 Bonds were taken, or at which deliberations that resulted in such formal actions were held, were open meetings, and such formal actions were taken and any such deliberations took place while such meetings, after proper notice, were open to the public, in compliance with all legal requirements including KRS Sections 61.810, 61.815, 61.820 and 61.825. Section 17 -- Effective Date. This Ordinance shall be read on two separate days and will become effective upon summary publication. Attest: lqxt,�� j'-�/- %3% � Tammara S. Brock, City Clerk Introduced by the Board of Commissioners, February 9, 2010 Adopted by the Board of Commissioners, February 16, 2010 Recorded by the City Clerk, February 16, 2010 Published by The Paducah Sun, February 20, 2010 \ord\fmance\Bond Issue 2010 — Feb 2010—Sports Park, Street Resurfacing, Pavilion & Greenway Trail 11 CERTIFICATION I, the undersigned, do hereby certify that I am the duly qualified and acting City Clerk of the City of Paducah, Kentucky, and as such City Clerk, I further certify that the foregoing is a true, correct and complete copy of an Ordinance duly enacted by the City Commission of the City at a duly convened meeting held on the 16th day of February, 2010, on the same occasion signed by the Mayor as evidence of his approval, and now in full force and effect, all as appears from the official records of the City in my possession and under my control. Witness my hand and the seal of said City as of the day of , 2010. [SEAL] 12 City Clerk ANNEX A CITY OF PADUCAH, KENTUCKY GENERAL OBLIGATION PUBLIC PROJECT BOND, SERIES 2010 R-1 Interest Rate Date of Original Issue 0 Maturity CUSIP Date % ,_2010 20 REGISTERED HOLDER: PRINCIPAL AMOUNT: KNOW ALL PERSONS BY THESE PRESENTS: That the City of Paducah, Kentucky (the "City"), for value received, hereby acknowledges itself obligated to, and promises to pay to the registered holder identified above, or registered assigns, the principal sum identified above (or, if any part thereof has been paid, the balance thereof remaining unpaid), on the maturity date specified above, and to pay interest on said principal sum (or, if any part thereof has been paid, the balance thereof remaining unpaid) from the date hereof, payable each March 1 and September 1, commencing September 1, 2010, at the Interest Rate per annum identified above, calculated on the basis of a 360 day year with 30 day months, except as the provisions hereinafter set forth with respect to prior redemption may be and become applicable hereto. The principal and interest of this bond are payable, without deduction for exchange, collection, or service charges, in lawful money of the United States of America. Principal is payable at the principal office of U.S. Bank National Association, Louisville, Kentucky, or any successor (the "Paying Agent and Registrar") or by other transfer of funds acceptable to the Paying Agent and Registrar and such owner. All interest on this bond and principal payable prior to the final maturity date shall be payable by check or draft mailed to the record date registered owner hereof at the address shown on the registration records kept by the Paying Agent and Registrar or by other transfer of funds acceptable to the Paying Agent and Registrar and such owner. The record date shall be the fifteenth day of the month preceding each interest payment date. This Bond is one of an issue of Bonds of like tenor and effect, except as to denomination and maturity, numbered from R-1 upward, inclusive, of the denomination of $5,000 or any integral multiple thereof originally aggregating dollars ($ ) in principal amount, issued for the purpose of (i) paying the costs of various public projects within the City, including the construction of Greenway Trail, the construction of a replacement for the existing Noble Park parking lot and construction of related appurtenances, the resurfacing of City streets, the acquisition and installation of generators throughout the City, the acquisition and installation of traffic signals, the acquisition of the Executive Inn and related appurtenances and the construction and installation of public improvements on a portion of the site thereof, the acquisition and construction of an air dome pavilion, the acquisition of real property for use as a sports park and the acquisition of such additional improvements in substitution of any of the foregoing as may be identified in the budget of the City adopted for the fiscal year ending June 30, 2010 (collectively, the 'Project") and (ii) paying the costs of issuance of the Bonds, all pursuant to and in full compliance with the general laws of the Commonwealth of Kentucky and particularly Chapter 66 of the Kentucky Revised Statutes, and pursuant to an ordinance duly adopted by the City Commission of the City on the 16th day of February, 2010 (the 'Bond Ordinance") upon the affirmative vote of at least a majority of the members of its City Commission at a public meeting duly and regularly held, and after proper notice of the issuance of the Bonds to the State Local Debt Officer of the Commonwealth of Kentucky pursuant to Section 66.310 of the Kentucky Revised Statutes. This Bond and the issue of which it forms a part is a general obligation of the City and the full faith, credit and revenue of the City are pledged to the payments due hereunder. THIS BOND IS CONTINUALLY SECURED BY THE FAITH, CREDIT AND REVENUE OF THE CITY. The Bonds mature on the 1st day of March of the following years, in the respective principal amounts and bear interest at the following rates of interest: 13 Maturity Date March 1, 2011 March 1; 2012 March 1, 2013 March 1, 2014 March 1, 2015 March 1, 2016 March 1, 2017 March 1, 2018 March 1, 2019 March 1, 2020 March 1, 2021 March 1, 2022 March 1, 2023 March 1, 2024 March 1, 2025 March 1, 2026 March 1, 2027 March 1, 2028 March 1, 2029 March 1, 2030 I! ro"ani Interest Rate Per Annum The Bonds maturing on and after March 1, 2021 shall be subject to optional redemption prior to their maturity on any date on or after March 1, 2020, in whole or in part, in such order of maturity as the City may determine, and by lot within a maturity, at the election of the City upon 45 days' written notice to the Paying Agent and Registrar (hereinafter defined) at a redemption price equal to the par amount thereof, plus accrued interest to the date of redemption. The Bonds maturing on March 1, 20_ are subject to mandatory sinking fund redemption prior to maturity at a redemption price of 100% of the principal amount to be redeemed, plus accrued interest to the redemption date, on March 1, in the years and in the principal amounts as follows: Year *Maturity [TO BE COMPLETED] Principal Amount [SPECIAL OPTIONAL AND MANDATORY REDEMPTION PROVISIONS FOR BUILD AMERICA BONDS OR RZEDBS TO BE INSERTED HERE] At least thirty (30) days before the redemption date of any Bonds the Paying Agent and Registrar shall cause a notice of such redemption either in whole or in part signed by the Paying Agent and Registrar, to be mailed, first class, postage prepaid, to all registered owners of the Bonds to be redeemed in whole or in part at their addresses as they appear on the registration books kept by the Paying Agent and Registrar, but failure to mail any such notice shall not affect the validity of the proceedings for such redemption of Bonds for which such notice has been sent. Each such notice shall set forth the date fixed for redemption, the redemption price to be paid and, if less than all of the Bonds being payable by their terms on a single date then outstanding shall be called for redemption, the distinctive number or letters, if any, of such Bonds to be redeemed. On the date so designated for redemption, notice having been published in the manner under the conditions hereinabove provided and moneys for payment of the redemption price being held in the Bond Payment Fund by the Paying Agent and Registrar for the registered owners of the Bonds to be redeemed, the Bonds so called for redemption shall become and be due and payable at the redemption price provided for redemption of such Bonds on such date, interest on the Bonds so called for redemption shall cease to accrue, and the registered owners of 14 such Bonds shall have no right in respect thereof except to receive payment of the redemption price thereof. No recourse shall be had for the pa'I! ent of the principal of or the interest on this Bond, or for any claim based hereon, against any'I'officer, agent or employee, past, present or future, of the City, as such, either directly or through the City, whether by virtue of any constitutional provision, statute or rule of law, or by Ilthe enforcement of any assessment or penalty, or otherwise; all such liability of such officers, agents or employees is hereby renounced, waived and released as a condition of and as consideration for the issuance, execution and acceptance of this Bond. It is hereby certified that all acts, conditions and things required to be done, to occur or be performed precedent to and in the issuance of this Bond, or in the creation of the obligations of which this Bond is evidence, have been done, have occurred and have been performed in regular and due form and manner as required by Law; that the faith, credit and revenue of the City are hereby irrevocably pledged for the prompt' payment of the principal hereof and interest hereon; that the repayment obligation represented by this Bond is not in excess of any constitutional or statutory limitation; and that due provision has been made for the levy and collection of a tax sufficient in amount to pay the interest on this Bond as it falls due and to provide for the redemption of this Bond at maturity or upon earlier redemption. IN WITNESS WHEREOF, the City has caused this Bond to be signed either manually or by facsimile in its name by its Mayor and duly attested either manually or by facsimile by its City Clerk and an impression or facsimile of the City's seal to be imprinted hereon, as of the date set forth above. SEAL Attest: CITY OF PADUCAH, KENTUCKY By: Mayor City Clerk CERTIFICATE This is to certify that this Bond is one of the Bonds described hereinabove. U.S. Bank National Association, Louisville, Kentucky, Paying Agent and Registrar By: Authorized Signature 15 CERTIFICATE It is hereby certified that the following is a correct and complete copy of the text of the legal opinion of Peck, Shaffer & Williams LLP, Attorneys, Covington, Kentucky, regarding the issue of which the within bond is one, the original of which opinion was manually executed, dated and issued as of the date of delivery of and payment for said issue and a copy of which is on file with the undersigned. City Clerk 16 ASSIGNMENT FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto: (please print or typewrite social security number or other identifying number and name and address of transferee) the within Bond and does hereby irrevocably constitute and appoint the or its successor as Bond Paying Agent and Registrar to transfer the said Bond on the books kept for registration thereof with full power of substitution in the premises. Dated: 46901_1 Note: The signature to this assignment must correspond with the name of the registered owner as it appears upon the face of the within Bond in every particular, without alteration or enlargement or any change whatever. 17