HomeMy WebLinkAbout1986 Ordinance No. 073I
ORD INANCE NO. 73
SERIES OF 1986 __ _
BY AU THORIT Y
COUNCIL BILL NO . 64.1
INTR ODU CED BY COUNCILMEMB EK
Van Dyk e
AN ORDI NANCE AUTH ORI ZI NG THE ISSUAN CE AND SALE OF
SS ,600,000 AGG REGATE PRINCI PA L AM OU NT OF CITY OF
ENGLE WOOD, CO LORADO, INDU STRIA L DEV ELOPME NT REVENUE
BO NDS (B UYER 'S CLUB PROJECT) SER IE S 1986, TO
FINAN CE THE ACQ UISITI ON, CON STRU CTION AND EQU I PPING
OF nRO PERTY SUI TABLE FOR US E FOR CO MME RCI AL OR
BUS INESS ENTERPRISES; AUTH OR IZ IN G THE EXF.CU TION AND
DELI VERY BY THE CI TY OF THE BO NDS, LOA~' AGREEME NT ,
I NDENTURE OF TRU ST , CONVERSIO N AGRE EMENT AND
CLOS ING DOCUM ENTS IN CON NE CTION THE REW IT H;
RATIFYING CERTAI N ACTI ONS HERETOFORE TAKEN ; AND
REPE ALIN G ACTI ON HERET OFORE TAK EN IN CONF LIC T
HERE vl!TH, AND DEC LARING AN EMERGENCY.
vlH ER EAS, t he City o f Englewoo d, Colorado (the "City") is
a legally and regularly created, established munici pal
cor p o ration 1duly o rgani zed and ex i •;t ing as a h o me-rule city
pursua nt to Article XX of the Constituti on of the State of
Co lorado ; and
vlHEREAS, the provi 3ions of the Count y and Muni ci pality
De velopme n t Rev enue Bond Act, co n stituti nq ar ticle 3 ot titl e
29 , Co l orado Revi sed Statutes (t l.e "Ac t "), authorize
municipa l i t ie s to f inan ce, refinance, acqui re, o wn, l e ase ,
improve a nd d ispos e of one or mor e pro j ects, inc ludi ng an y
iand, building or other improveme nt and all real or personal
pro perties suitab l e or used for or in conne cti o n with
commerc i a l or bu si ness enterprise s (inc luding, without
limitation, e n terprises engaged in se lling any products o f
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ag r1 c u ture, industry, c omm e rce , manu f acturing o r ':>usi n ess),
upo1 1 su c h c ond i t 1o ~s a s the munic1 pali y may deem adv i sable;
and
WH E RE AS , suc h munic 1 palit1es are f u rther auth o rized by
t l1c Ac t to i ss u e re ven ue bo nd s f or the pur po s e of defr3ying
the co st o f f 1n o•1c i n any h ~lc h :J r o j ect; a nd
WHE RE /,S , Pe nnan t Pr oJ:, ~.-t ies Inc., a De laware
co t-p a ra i o n, (t he "Comp any 11 }, ht'!'' p r esented to the City a
p 1·o p os a l wh ereby the Cit y wil l , ur --1 ... 1t to the Ac t, i ssue
tl1e rev en u e bo nds he r e inr f \~~ 1~~c r 1bed and loan the proceeds
tl1e r~fr o m to the Company o finance the a c quisiti o n,
c o nstruction , improv ~ng and equipping of a
commerc 1 al /business fa cility consis ti ng of a parc el of land,
a bui ld i ng t o be co n st ruc t ed thereon and equipment to be
inst al led in such b !t ilding, as well as a ll real estate,
fixtures and equ i pm e nt , &~~ssa ry o r co nv enient for the
o peration o f a wh o~es ale /retail c a sh a nd ca rry warehouse
facilit y, having an area of approximately 100,000 square
fe et, located on a parcel ,f land a t the southwest corner of
the intersection of West .. dmpden Av enue and South Jason
St r e a t , all within the City (collectively, the "Project"),
wh ich Pro ject qua li fie~ as a "project" within the meaning of
t he Act in th at suc h facilities are s ui t ab l e for com mercial
o r busi ne ss enterprises; and
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WHE REAS, the Co mpany has given its a s s u r ance t o the City
h at th~ Com pany wi ll pay or reimburse t h e City f o r payment
o f, any and al l l e g al fee s and e xpen s es and admin i strative
co s t:.:; and e xp e nse s hereto fore incurred or hereafte r to be
1nC"un c d by the City rel a ted to th e Pr o ject and its
financing, a nd ti1 at s u c h agr e e ment to pa y or reimbur s e t he
C:t y i s not co n t i nge n t u p o n compl etlo11 .,f t he Project or the
f1n anci n 1 ; and
WHL PEAS, t h e Co mpa ny has re p re s e nted to the City that
tl1c Pro j e c t qu a lif i e s as a ''pr o J e ct '' wit h in t he meaning of
the Ac t; and
WHEREAS, the City cons i d e r s that the Pro j ect wil l
p r o mo te the welfare and prosper ity o f its c itizens in tl1at it
wi ll assi s t the City in p romoting ec ono mi c development and
additiona i em pl oyment within the City ; and
WHEREA S, the "City of Engl e wood, Colorado , Industrial
Dev el o pment Rev e nue Bond s (Buy r's Club Pr u ject ) Serie s
198 6," in the aggrega~e principal amo unt of SS,600,000 (the
"Bo nds"), wil l be i s sued, s old and delivered by the City to
E. F. Hutto n & Company, Inc. (the 11 0rigina l Purchase r''), to
provide funds to finance the· Project and to pay ce rtain fees
a nd cos ts incurred by t he Orig in a l Purchase r co nne cti on with
t he iss uance of t he Bo nds; and
WHEREAS, the City Co unci l of the City adopted a
r esol ution on May 1 5 , 1986, indicating its intention to is s ue
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the Bonds, whic h reso l utio n expired b y its terms o n
August 13, 1986, and the City Council of the City wishes to
rea ffi r m its intenti o n to issue the Bonds by amending s a id
resolution to pt'ov1de for its expil"ati o n on December 12,
JQ86; and
WHEREAS, at the time of SbC0 nd reading o f this
Ordinan c e, the City Co uncil of the City sh all h a v e ~ee n
pr esented with, (a) a proposed r. ,m of Loan Ag r eemen t to be
dated as of De cember 1, 1986 ( th"? "Loan ,g r eeme rn. ·), between
the City a nd the Co mpany, (b ) a proposed form o f Inden ture o f
Tn1st to be dated as of De cembe r 1, J986 (the "Indenture 11 ),
betwe e n the Ci ty a nd ~ · · ~t I ntersta t e Ba nk o f De nv er, N.A .,
as truste e (the '1Trus t~e 11
) (c ) a pr o pos ed for m of Conver si on
Agree men t to be d a te d a s of Decembe r 1 , 1986 t he "Co nv ers ion
Agreeme nt 11
) amo ng t he City , t he Compa ny , t he Tr u s t e e and the
Origin al Purc ha s er, and (d) a p ~oposed f o rm of Prel i mi nary
Offici al Sta temen t to b e d ate d December
11 Pre l i min a r y Of fi c i al Sta tement "); and
1986 (the
WHER EAS , t he City has considere d the p r oposal of the
Co mp an y a nd ha s conc luded t h at the ec o no mic and o ther
be n efi t s t o t he Ci t y will be s ub s t a nt i al a nd t hat it wishes
to pro ceed with t he d e v e lo pment a nd financing of the Pro j ect.
NOW, TH ER EF ORE, BE IT ORDAINED BY THZ CIT Y COUNCIL OF
THE CITY OF EN GL EW OOD, CO LORAD O, THAT,
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Section l. All act ions (not inconsist~nt with the
provisions of this Ordinance) heretofore taken b y the City
Co uncil and the offici al s of the City d i rected toward
fina nc ing the Project, th e issuance and sa l e of the Bonds
t heref o r , and l o aning the pro ceeds thereof to the Comp any be,
and the s am e hereby are , ratif i e d , approved and co n fi rmed .
Se c ti on 2. The City shall finan ~e the Project,
inc ludi ng the paymen t of certai n f e es and exp e nses o f t h e
Or i g i na l Pur-cha s er and, if necessary, a portion of the
i nt e rest to accrue o n the Bo nda, by depositing th e p r oc eed s
0 1 t he Bonds with the Trustee in the n1anner pt o vided in the
Lo an Agreement and th e Indenture. The proceeds of the Bonds
s hall be dis bu rsed by the Trustee f o r s uch pu rposes in
a cco rdanc e with the pro v isions and con~i tions of the Lo an
Agree men t , t he Conversion Ag reeme n t a nd t he I nden ture .
Sect ion 3 . To defray the c ost of f inan cing the Project,
th e payme nt of inc i dent al i ssuance expenses for the Bonds
illld , if necessa ry , a po rtion of t he i nterest to accru e on the
Bo nds, the re is hereby authorized and cr?ate d an issue of
1·eve nu e bonds designated as the ''City of Englewo od, Colorado,
I ndustr ial Development Revenue Bonds (Buyer's Club Project)
Series 1986," i n t he aggrega te principa l am o unt of
$5,600,000, to be initially dated Dece mber 1, 1986 . The
Bo nds s hall bear interest from their dat e payable
semiannu a lly comm encing on June 1, 1987 and on each
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De c emb er 1 and J une 1 there a fter unti l ma t u r ity or p rior
r edempti o n . Th e max im um net effe c t i v e i n t eres t r a t e 01 1 the
Bo nd s s h al l be 12% per annum. The Bonds s h a ll ma t u r e on
lh•ce mb er 1 o f the yea r s and in the pr i nc i pa l amounts, and
:,h.1 1 1 be ar i nte r e s t a t he ra t es as s e t f o rth 1 n Ex h i b i t A
at t a c hed he r e to .
Th e B0 11ds s ha ll be s ubje ct o r ede mpt 10 11 as se t fo r t h i n
the Ind enture, an d s hal l b e issua ble so lely as f u lly
re g i s t e red bo nds, in d e n omi n at i o n s of 5 5 ,000 o r a ny i n t egra l
uml t 1ple t hereof, all i n a cco rdan c e with the pl·o vis i ons o f
t h e I nd enture .
Th e Bo nd s s h all be in s ub stant lally the for m a nd with
s ubs ta n ti ally the c o n t en t, and s hal l r,e ex ec u t ed
s ubs t a n tially in the man ri er provi d ed for i n t he In de nture.
The Bo nds s hall be sold to the Ori g inal Pur c ha s er f or a
p urc ha s e pri c e o f 55,600 ,0 00, plu s a cc rued interest from th e
d ate of the Bo nd s to the date o f p aym e nt and delivery .
Se c t ion 4. The following dete r mi nati o ns and finaings
a r e hereby made in accordanc e with the Act:
,a) The City i, autho rized by the Act to enter
i nt o the Loan Agreement for the pub l ic p u r poses
expre s sed i n the Act, and to as s ign its inte r est therein
t o the Trustee pursuant to the Ind e nture;
(b ) In authorizing the finan c ing o f the Projert
a nd the is suanc e of the Bond s , the purpo se of the C ,
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is, and in its judgm en t the effect the r e of wi ll b e , t o
cr eate n ew e mployment opp o r t un iti e s, t o promo te industry
a nd d evelop t rade or o ther e co no mi c act i v ity b y induci ng
t h e Com pany to l oc ate, ex p a nd o r re ma in in t he S tate of
r01o rad o, t o mi tigate t h e s e r i o u s t hreat o f e x t e n si ve
u n e mpl o yment in p arts of t h e S tate of Co l o rado, to
s e c u r e a nd mai n t a i n a b al an c ed and s ta b le
eco nomy and to fu r t he r t he u• of the agricultu ra l
produ c ts and natu r al r e s o u rces o f the S ta t e o f Co l o rado;
(c ) The Bo nd s s hall be s pe c i a l , lim ited
o bl igat i on s o f the C it y . Th e pr incipal of , p r e mi um , i f
any , a nd i n teres t sh a l l be paya bl e s o l ely o u t of the
r e v e nues d e rived fro m t he Lo a n Agr eemen t . The Bo nd s a nd
i n t e rest t h e r e o n s hall n o t const itute a g e ne ra l
o bl iga t ion o r an inde b tedness o f th e City within the
meani ng o f an y pr o vis i o n or limitat i o n o f t he
Co n st itution o r statute s of the S tat e o f Co l or ado , or
t he Ho me Rul e Ch a r t e r of t l1 e City , and s hall ne v er
c o n s t itu te no r g i ve rise t o a p e c uniary liab ility of the
Ci ty o r a c harge against i ts g eneral c red i t or taxing
powers . Neither t h e faith and credit nor the taxing
p o wer of th e C i t y, th e St a t e o f Col o rado o r a ny other
po liti c al su b d i v i sion ther e o f is pl e dged t o the payment
o f the pr i n c ip a l o f , p re mi u m, if any, o r i n t e res t on t ~e
Bonds or o t h er c osts inciden t al thereto ;
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(d) The amount ne cessary 1n e a ch ye ar to p ay the
pri n ci pal o f a nd the int~rest on the Bonds is s e t forth
i n Ex hib it A hereto and i n corporated h e rei n by
ref erenc e , and the Lo an Agreement requ ires s u ch payments
to be made by the Co mpany; there 1s to be no reserve
fund st abl1 s h ed fo r the retirement of the Bonds or the
mai n tenan c e of the Proje c t; and si nce the Lo an Agreement
pcov 1de s that the Company s hall maintain
the Proj e ct and carry ce rta in insu rance with re spect
h ereto, n o de te r min ati o n of the estimated cost o f
ma1nt ain 1ng or 1n sur1ng the Pro Je ct need be made ; and
(e) The revenu es of the Comp an ~ are projec t e d to
be s u fficie nt to , and the Loan Agre ement provides that
t he Co mpa ny sha l l, pa y a ll tax e s whi c h ma y be du e and
owing with respec t to th e Projec t.
Secti o n 5 . The f orms, terms a nd p ro v isions o f th e Loa n
Agreeme nt , the I nde n ture, the Conversion Agre e me nt and the
Officia l Sta temen t, u pon ado pti o n of th is Ordin a nc e u p on
second r ead ing , b e, and th e y h ereby a re , a pprov e d, a nd the
Ci ty shall e n ter i n to the Lc ~n Agr e e me n t, t h e Co nversio n
Agreeme n t and t he I nde n tu~e. su bstanti al l y in t h e fo rms and
wi th substant i a lly t h e co n t e n t o f e ac h of such d oc ume n ts
prese nte d u p o n s ec o nd read i ng bu t with s u c h min o r chan g es
t h erein as a r e cons i s tent herew i th and as the o f fic ers o f the
Ci t y exec uti ng s u c h do c u me nt s s hall approve, t he e xecut i on
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t hereof being deemed conclusive of thei r appr ova l of any suc h
c l.anges ; rn d t he Mayor o r Ma yor Pro Te rn of the City 1s hereby
autho rized and d irected to execu e a~d d e l ive r such documents
and the City Cleek o r Acting C1 t y Cl e -k is he ceby au t horized
and d1rec e d to affi x t h e s e u l o f t he Cit y to, and to attest,
such d oc uments in s ubstantiall y the f o !n and with
sub s tanti ally the con tent of each n ( ~Jc r documents presented
upo n s ec o nd 1 ead1 ng.
Sec t1 , 1~. The f orm, t erms ,H i ;-.r ev i sions o f the Bonds,
1 n s ubstanti d 1 l y the form and wi _h subs ta ntially t h e content
co n ained i n ·he Ind entuce presented upon sec o nd ceading, be
and they hereby are approved; and the Ma yor or Mayor Pro Tern
is heceby authorized and direc t ed to cause his or her
facs i mi le signature to be affixed to the Bonds; the City
Cl erk o r Acting Cicy Clerk is hereby authorized and d irected
to attest the Bonds with his or her facsimi l e signature , and
eac h is auth, ••ced to deli v er the Bonds in the form contained
in the Indentl..re but ·,,1i th such minor c hanges the rein as are
c o ns isten t with t he Indentuce and t his Ordinance and as the
o ff i c ers of the City executing the Bonds sha l l approve, the
exec ut ion thereof being deem e d co nclusive of th eir approval
o f any z uch ch ange s. The s eal of t he City or the facsimi l e
thereo f is hereby authorized and directed t o be affixed to or
impr in ~c d on the Bonds.
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Section 7. The City Council hereb y authorizes and
approves ch e appointment of First Interstate Bank of Denve r ,
N.A., a national ba n king association with its principal
co rporate rust office l ocated in Denve r, Colorado, a s
Trus tee, bond regis rar and paying agent.
Secti o n_§. The Mayor and May or Pro Tern, the City Cle rk
and Acting City Clerk, and all o•~er off i cers of he City
s l1all take a l l act1011 whi c h they deem necessat·y or rea~o n ably
1 Pqu1red 1n conformi ty wi h the Act to finance the
,1 ,·quisition, construct1on and i mprovement of he Project and
to 1ssue the Bo nds , which a re hereby authorized, including
Ll1e payi n g of certai n fees and expen s es of the Or i gi n ~:
Pu t·cha s er from the proceeds of the Bonds, a nd for c ar ryi ng
au , gi ving effect to and consumm ating the tra nsactions
contemplate d b y thi ~ Ordinance, the Loan Agree me nt, the
Indenture, th~ Co nvc r s1o n Ag reement and the Preliminary
Of ficia l Statement, in c luding, without limitation , th,?
execution and deli v ery of any c l osi ng document s to be
deliv ere d i n co nne ction with the s ale and de li very of the
Bonds, i nclud i ng s pecifically the Official Statement to be
prepa red for use in connect ion with the sa le o f the Bonds.
Secti on 9 . The cost of financin g the Project, includi r.s
the paying of certain fe es and expenses of the Ori,;inal
Pu rchaser, will be paid o ut of the proceeds o f ihe Bond s .
The Bonds together with in terest p aya ble there o n are s pe ci al ,
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l1 m1ted obligations of the City payable solel y as p rovided in
the i ndenture . The Bonds and the interest payable thereo n
sha ll never constitute the deb t or indebtedness of the City,
tl1 • S ate o f Colorado or any ol1tica l s ubdivision the reof
w1 tl11 11 the meaning of an y provis1on or limitation o f the
Co z1st 1tution o r statutes o f ·he Sta te of Co lorado, or the
Home Rule Charte. of t h e City, nor sha ll anything co n tained
1n this Ordinance or in the Bonds, t he Loan Agreement , the
Indenture, the Conversion Agreemen t or a ny other ins rum e nt
r·n nsti tute or give rise to a pecuniary l iability of, o r a
~11arg e aga i nst the ge neral credit or ta x ing powe r of, t h e
Ci ty, n o r sh all the breach of an y agreement con ta i ned in this
Ordinance, or any of the above -mentione d docume nt s o r
instruments impose an y p ecu n iary liability u pon t he City , the
Cit y h a vi n g no p ower to pa y ou t o f i ts genera l f und , o r
o the r wi s e con t ribu te any p ar t o f the co sts of f i n anc ing t he
ProJect, nor shal l t he City condemn a ny l a nd o r o ther
pro perty f or the ?r ejec t no r contri bu cr a ny l a~d or o ~her
prope rty t o t he P r o ject .
Section 10. Sec t ion 4 of Reso luti o n No . 1 7, Series o f
1986, ado pted and app r oved b y the City Co unc i l o f t h e City on
May 15, 1986 , is hereby amend ed to r e ad, a f ter such am endment
as fo llow 1:
Sec tion 4 . This Re soluti o n i s su b j e ct to the
cond iti on that the i nd u stria l deve lopment revenu e
bonds f or the Pro jec t s h a ll be issu ed o n o r pri o r
to Uec ember 12, 1986. I f s uch bond s are not issued
on o r prior to such da t e , this Reso lution s hall
t e rminate.
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Sect i o n 11. The City, based upon represent ati o n s made
b y he Co mp any, h ereby el e cts to have t he provisions of
Se ction 144 (a)4 of the lnte ·nal Revenue Code of 1986, as
ame nded , apply to the i ssu a nce of t h~ Bonds .
Sec i~r,__Jl. Aft e r any of t h e Bonds are iss ued, this
Ordin an ce s ha ll be and remain 1rrepe alable un til the Bonds
and i nterest thereo n s hall have been ful l y p aid, c ancelled
rtnd d1 sch arged.
Section 13. If a ny section , para g r aph , c lause or
p 1·ov1s 1o n of th i s Ordinance s hal l for any reason be held to
l>e invalid O t" u nenf o rceable, t he inv al idi y o r
unen f o r ce ability of s uch s e ct i o n, p ar agraph , clause or
prov isi o n s h a ll not affec t any o f the re maini ng sections,
pa r ag raph s , clause s or provi s io n s of th is Ordi na nc e.
Section 14. All bylaws, orders, re so lutions and
o r di nances, or par+-s thereof, inc o nsistent her ewith and with
t he documents h ereby approved, are h ereby repe aled to th e
e xt e nt o nly o f s uc h i nconsi s ten c y. Thi s repe aler s hall riot
be co n st rued as rev iving any by law , o rd e r , re so lution or
o rdi nance, or part thereof .
Sec tion 1 ~. Immediately upo n its final passage, this
Ordi nance s ha ll b e recorded in the City book of ordinances
kept for that purpose , s hal l be authenti c a ted by th•
signature s o f t h e Mayor o r May or Pro Tem and the Ci ty Clerk
o r Ac ting Cit)' Cl.erk, and s hal l be published in the Englewood
Sent i nel, a new s paper o f general circulation i n the City .
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Section 16. Insofar as i t is necessary to issue the
Bo nds immediately in o rd er to:
(a) take adv antage o f presently existing interest
rat es ;
(b ) take ad vanta g e of a n allocation, and the
extensi o n thereof, fr om the Statewi de balance for
nonessential f unction bouds to issue the Bonds, which
allocation ma y not co nti nue to exist after Dece mber 12,
1986;
( c ) s uppo rt the Cit y and the •· '">an Renewal
Autho rity in ef!ecting in a time l y manner their pla~~ed
financing of d owntown r e newal proj ects;
the provisions of this Ordinance a r e hereby declared to be
ne ces sary for the immediate preserva tion of public property,
he alth, peace or safety and shall become effective upon final
pa ss age in accordance with Article V, Section 41 , of the Home
Ru le Charter of the City.
Section 17. In acc o rdance with Section 40 of the City
Char ter, the City Coun cil has held a public hearing on this
Ordinance, before fin al pa ssage, on the 18th day of August
1986 at 7 :30 p .m. in City Council Ch ambers , 3400 Sou th Elati
Stree t , Englewood, Colorado.
Introduced, read in full and passed on first reading as
an e mer;e ~c y bill o n the 4th day of August 1986.
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Pu blished as a bil l for an o rdi nance on the 6th da y of
Augus t 1986.
Read, amended and pa ssed as amended as an emergency bill
0 11 t h e 8th day of Dec ember 1986.
Publish ed 1n ful l as amended as an emergency bi l 1. f o r an
Or di nance o n the 10 th day of De cembe r 1986 .
Read by titl~ and pas s ed o n f inal reading as an
em ergenc y o rd i n ance on the_!}_ day o f De c embe r 198 6 .
Published by tit le as Ordinance No. 7..3_, Series
o n t h e /jJ__ day of Decembe r 1986.
Mayo r
o f 1 986
I, Mary Ann Gregory, Ac ting City Clerk fo r the City o f
E11g lewood, Co l orado hereby c erti fy the above and for egoi n g i s
a true copy of the Ordi n ance pa ssed on fi nal reading a nd
p11b l i s hed by title as Ordinan ce No. 73, Se r i es of 1986.
Ci t y Clerk
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1987
1988
1989
199('1
199)
199.
199 ~
19 94
1995
19 %
EXH IBI T A
Maturi Sc hedule
?rinCl ?cll
150.000
1 55,000
165 ,000
1 75,000
1 85,000
1 95,000
205,000
220,000
230,000
3,9 20 ,0 0 0
Pri o r to the Co nve r s ion Dat e , as d e fined i n t he
!nd e nture , the Bo nds will bear i nt e r es t at a rate of 8% per
a nn um . On a nd af t er t h e Conver s ion Date, the Bo nds will bear
i nte r est a l the r a t e s dete rm i n ed by th e Origi nal P u rch a s e r
whi c h a r e aequ ired o n t he Conve rsion Date to of f er t he Bo nds
at par, as s et f o r th in the Con v er s io n Ag reeme nt.
Th e am o un t o f in t eres t pa y ab l e with r e s p e c t to the Bo nd s
wi l l no t . i n any y e ar in wh ich the Bo nds remai n o u tsta ndin g,
e x c eed $672,00 0.
A-1