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HomeMy WebLinkAboutResolution 16-075-CC , October 24, 2016 9:30 a.m. In Attendance: Cindy Carter, Chair Richard Stevens, Member Barbara J. Vasquez, Clerk of the Board The Commissioners held a meeting to approve a Resolution for authorizing the issuance and sale of Sales Tax/Limited Tax General Obligation Refunding Bonds of the County in the aggregate amount of not to exceed $6,950,000.00 for the purpose of refunding certain outstanding bonds; providing for the annual levy of taxes to pay the principal of and interest on the bonds; and delegating certain authority to the county Treasurer in connection with the sale, A motion was made by Commissioner Stevens, seconded by Commissioner Carter,to adopt Resolution No. 16-075-CC as attached. The motion passed with 2 Commissioners in attendance. , GRANT COUNTY, WASHINGTON SALES TAX/LIMITED TAX GENERAL OBLIGATION REFUNDING BONDS, 2017 RESOLUTION NO. 16-075-CC A RESOLUTION OF THB BOARD OF COUNTY COMMISSIONERS OF GRANT COUNTY, WASHINGTON, AUTHORIZING THE ISSUANCE AND SALE OF SALES TAX/LIMITED TAX GENFRAL OBLIGATION REFUNDING BONDS OF THE COUNTY IN THE AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $6,950,000 FOR THE PiJRPOSE OF REFUNDING CERTAIN OUTSTANDING BONDS; PROVIDING FOR THE ANNUAL LEVY OF TAXES TO PAY THE PRINCIPAL OF AND INTEREST ON THE BONDS; AND DELEGATING CERTAIN AUTHORITY TO THE COUNTY TREASURER 1N CONNECTION WITH THE SALE. ADOPTED ON OCTOBER 24, 2016 PREPARED BY: K&L GaTEs LLP SF,ATTLE,WASHINGTON GRANT COUNTY RESOLUTION NO. 16-075-CC TABLE OF CONTENTS* Pa�e Section1. Definitions.............................................................................................................2 Section 2. Authorization and Description of Bonds ..............................................................7 Section 3. Registration, Exchange and Payments.................................................................. 8 Section 4. Redemption Prior to Maturity and Purchase of Bonds ....................................... 13 Section5. For�n of Bonds .................................................................................................... 16 Section 6. Execution of Bonds............................................................................................. 18 Section 7. Lost or Destroyed Bonds..................................................................................... 19 Section 8. Bond Fund; Reserve Fund...................................................................................20 Section 9. Pledge of Taxation and Credit............................................................................21 Section 10. Defeasance..........................................................................................................22 Section 11. Application of Bond Proceeds and Redemption of the Refiinded Bonds...........23 Section 12. Tax Covenants; Special Designation..................................................................26 Section13. Sale of Bonds......................................................................................................28 Section 14. Undertaking to Provide Ongoing Disclosure......................................................30 Section15. Severability.........................................................................................................35 * Neither this table o�contents nor the preceding cover page are a part of this resolution, and are included solely for convenience of the reader. -1- P:\20287 CMW\20287 BMF RESOLUTION NO. 16-075-CC A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF GRANT COUNTY, WASHINGTON, AUTHORIZING THE ISSUANCE AND SALE OF SALES TAX/LIMITED TAX GENERAL OBLIGATION REFUNDING BONDS OF THE COUNTY IN THE AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $6,950,000 FOR THE PURPOSE OF REFUNDING CERTAIN OUTSTANDING BONDS; PROVIDING FOR THE ANNUAL LEVY OF TAXES TO PAY THE PRINCIPAL OF AND 1NTEREST ON THE BONDS; AND DELEGATING CERTAIN AUTHORITY TO THE COUNTY TREASURER 1N CONNECTION WITH THE SALE. WHEREAS, Grant County, Washington (the "County") issued its Sales Tax/Limited Tax General Obligation Bonds, 2010 (Multi Agency Communications Center) pursuant to Resolution No. 10-087-CC under date of November 23, 2010 (the "2010 Bond Resolution"), in the original aggregate principal amount of $9,605,000 (the "2010 Bonds") which remain outstanding as follows: Maturity Years (December 1) Principal Amounts Interest Rates 2016 $ 380,000 3.00% 2017 395,000 4.00 2018 410,000 4.00 2019 425,000 4.00 2020 440,000 4.00 2025 2,540,000 5.00 2030 3,230,000 4.90 ; and WHEREAS, the 2010 Bond Resolution authorizes the defeasance and redemption of the 2010 Bonds maturing on and after December 1, 2021 (the "Refunding Bond Candidates"), in whole or in part on any date on or after December 1, 2020, at a price of par plus accnied interest to the date of redemption; and ' WHEREAS, the County is authorized by RCW chs. 36.67 and 39.46 to issue general obligation bonds; and ' WHEREAS, after due consideration it appears to the Board of Coltnty Commissioners (the `Board") of the County that soine or all of'the Refunding Bond Candidates may be defeased and refunded by the proceeds of the bonds herein authorized in total principal amount of not to exceed $6,950,000 authorized herein (the "Bonds"); and WHEREAS, the Board has determined to delegate to the County Representative (as defined below) certain matters relating to the manner and timing of sale of the Bonds; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF GRANT COLTNTY, WASHINGTON, as follows: Section 1. Definitions The following words and terms as Ltsed in this resolution shall have the following meanings for all purposes of this resolution, unless a different meaning clearly appears from the context: AcquiNecl Obligations means the Government Obligations acquired by the County under the terms of this resolution and the Escrow Agreeinent to effect the defeasance and refiinding of the Refunded Bonds. Beneficial Owner means any person that has or shares the power, directly or indirectly to make investment decisions concerning ownership of any Bonds (including persons holding Bonds through nominees, depositories or other intermediaries). Boa�cl means the Board of County Commissioners, the general legislative body of the County, as constituted from time to time. Boncl Fund means the "MACC Bond" as described in Section 8 hereof. Bon�l Pz�r�chczse Contrccet means the purchase contract relating to the Bonds between the County and the Underwriter. '2' P:\20287 CMW\20287 BMF Bond Registey means the registration books maintained by the Bond Registrar for the purpose of identifying ownership of the Bonds. Bon�l Registrar means the fiscal agent of the State of Washington, for the purposes of registering and authenticating the Bonds, maintaining the Bond Register, effecting the transfer of ownership of the Bonds and paying interest on and principal of the Bonds. Bo�zds ineans the Sales Tax/Limited Tax General Obligation Refunding Bonds, 2017 of the County issued pursuant to this resolution with a principal amount of not to exceed $6,950,000. Call Dczte means December l, 2020. Code means the federal Internal Revenue Code of 1986, as amended. Any reference to a provision of the Code shall include the applicable regiilations of the Depai-tment of the Treasury promulgated with respect to such provision. Costs of Issuance Agreenaent means the agreelnent of that name, to be entered into by the County and the Escrow Agent. County means Grant CoLtnty, Washington, a political subdivision duly organized and existing by virhie ot'the Constitution and laws of the State of Washington. Coacnty Representative means the Treasurer of the County. DTC means The Depository Trust Company of New York, a limited purpose trust company organized tilnder the laws of the State of New York, a depository for the Bonds pursuant to Section 3 hereof. Esc�ow Agent means U.S. Bank National Association, Seattle, Washington. Esc�ow Ag�^eement means the Escrow Deposit Agreement to be dated as of the date of closing and delively of the Bonds. -3- P:\20287 CMW\20287 BMF Governnzent Obligatrons has the meaning given such term in Chapter 39.53 RCW, as the same may be amanded or restated from time to time. Lette� of Rep�^eserztations means the blanket issuer letter of representations from the County to DTC. MACC means the Multi Agency Communications Center created through an Interlocal Agreement for the purpose of providing a consolidated public service 9-1-1 dispatching center for the County. MACC Bonds mean the 2010 Bonds, the 2014 Bonds, the Bonds and any general obligation bonds of the County issued in the fiiture for the purpose of fiinding capital purposes of MACC and supported by the 911 Sales Tax. MACC Funds mean other legally available funds of the MACC, inchiding user fees, to the extent not required to be used to pay operational expenses of the MACC. MSRB means the Municipal Securities Rulemaking Board or any successor to its functions. 911 Sales Tax means the tax imposed in the County pursuant to RCW 82.14.420 and a vote the electors held on November 8, 2005 and shall include any such taxes subsequently approved by the voters for the fiinding of MACC purposes. Przvc�te PeNson means any natural person engaged in a trade or business or any trust, estate, partnership, association, company or corporation. Private Person Use means the use o�property in a trade or business by a Private Person if such use is other than as a member of the general public. Private Person Use includes ownership of the property by the Private Person as well as other anangements that transfer to the Private Person the actual or beneficial use of the property (such as a lease, management or incentive payment contract or other special arrangement) in such a manner as to set the Private Person -4- P:\20287 CMW\20287 BMF apart from the general publia Use of property as a member of the general public includes attendance by the Private Person at municipal meetings or business rental of property to the Private Person on a day-to-day basis if the rental paid by such Private Person is the same as the rental paid by any Private Person who desires to rent the property. Use of property by nonprofit community groups or community recreational groups is not treated as Private Person Use if such use is incidental to the governmental uses of property, the property is made available for such use by all such community groups on an equal basis and such community groups are charged only a cle minimis fee to cover custodial expenses. Reficnc�ing Bond Canclz�lates means all or a portion of the 2010 Bonds maturing on or after December 1, 2021. Reficnclecl Boncls means those Refunding Bond Candidates designated by the County Representative or his/her designee pursu.ant to authority delegated by Section 13 of this resolution. Registered Owne� means the person named as the registered owner of the Bonds in the Bond Register. Reserve Facnd means the "MACC Bond Reserve" created and maintained in the office of the Treasurer pursuant to Section 9 of Resolution No. 10-087-CC. Reserve Re�acir^errcent means, with respect to MACC Bonds, the least of(a) 10% of the net proceeds of each series of MACC Bonds, (b) maximum annual debt service on outstanding MACC Bonds, (c) 1.25 times average annual debt service on outstanding MACC Bonds or (d) such lesser �inoLint as shall be required to maintain the exemption of interest of any Boncls from taxation under the Code. The Reserve Requirement inay be recalculated upon each payrnent of principal of MACC Bonds. -S- P;\20287 CMW\20287 BMF Rule means the SEC's Rule 15c2-12 under the Securities Exchange Act of 1934, as the same inay be amended from tiine to time. Sava�gs Target means a dollar amount at least equal to four percent (4.00%) of the principal amount of the Refunded Bonds. SEC means the United States Securities and Exchange Commission. Te�^�a Bo�z�ls means any Bonds designated by the Underwriter therefor as Term Bonds in the Bond Purchase Contract. Treccsurer^ means the treasurer of the County pursuant to RCW Ch. 36.29, as amended from time to time. 2010 Boncl Resolaction means Resolution No. 10-087-CC adopted on November 23, 2010. 2010 Bonds means the Sales Tax/Limited Tax General Obligation Bonds, 2010 (Multi Agency Communications Center), of the County issued under date of December 7, 2010, and presently outstanding in the aggregate principal amount of$7,820,000. 2014 Bonds means the Sales Tax/Limited Tax General Obligation Bonds, 2014 (Multi Agency Communications Center), of the County issued under date of Dacember 23, 2014 in the initial aggregate principal amount of$7,485,000. Un�ler�writeN means D.A. Davidson& Co., Seattle, Washington. Rules of Interp�etation: In this resohition, unless the context otherwise requires: (a) The tenns "hereby," "hereof," "hereto," "herein, "hereunder" and any similar terms, as used in this resolution, refer to this resolution as a whole and not to any particular article, section, subdivision or clause hereof, and the term "hereafter" shall mean after, and the term "heretofore" shall mean before, the date of this resolution; -6- P:\20287 CMW1202$7 BMF (b) Words of the inasculine gender sha11 inean and include correlative words of the feininine and neuter genders and words iinporting the singiilar n�unber shall mean and include the plural number and vice versa; (c) Words iinporting persons shall include fir�ns, associations, partnerships (including limited partnerships), tilists, corporations and other legal entities, inchiding public bodies, as well as natural persons; (d) Any headings preceding the text of the several articles and Sections of this resohition, and any table of contents or inarginal notes appended to copies hereof, shall be solely for convenience o�reference and shall not constitute a part of this resohYtion, nor shall they affect its meaning, construction or effect; and (e) All references herein to "articles," "sections" and other subdivisions or clauses are to the corresponding articles, sections, subdivisions or clauses hereof. Section 2. ALrthorization and Describtion of Bonds. For the purpose of refiinding the Refiinded Bonds and paying the costs of issuance of the Bonds, the County shall issue its sales tax/limited tax general obligation refunding bonds in the aggregate principal ainount of not to exceed $6,950,000 (the "Bonds"). The Bonds shall be designated the "Grant County, Washington Sales Tax/Limited Tax General Obligation Refiinding Bonds, 2017," shall be dated as of the date of dalivery of the Bonds, shall be fully registered as to both principal and interest, shall be in the denomination of $5,000 each or any integral multiple thereof, provided that no Bond shall represent more than one maturity, shall be numbered separately in sitch manner and with any additional designation as the Bond Registrar deems necessary for purposes of identification and control, shall bear interest at the per annum rates, payable on the dates and maturing in principal amounts set foi-th in the Bond Purchase Contract, pursuant to Section 13. -/- P;\20287 CMW\20287 BMF The Bonds of any of the maturities inay be coinbined and issued as tei7n bonds ("Term Bonds"), subject to mandatory redemption as provided in the Bond Purchase Contract. Section 3. Re�istration, Exchan�e and Pa i�s. (a) Boncl Regzst�^cc�/Bonc� Regzste�^. The Board hereby requests that the Treasurer specify and adopt the systein of registration approved by the Washington State Finance Committee from time to time through the appointment of state fiscal agents. The County shall cause a bond register to be maintained by the Bond Registrar. So long as any Bonds remain outstanding, the Bond Registrar shall make all necessary provisions to permit the exchange or registration or transfer of Bonds at its principal corporate trust office. The Bond Registrar may be removed at any time at the option o�the Treasurer upon prior notice to the Bond Registrar and a successor Bond Registrar appointed by the Treasurer. No resignation or removal of the Bond Registrar shall be effective until a successor shall have been appointed and until the successor Bond Registrar shall have accepted the duties of the Bond Registrar hereunder. The Bond Registrar is authorized, on behalf of the County, to authenticate and deliver Bonds transferred or exchanged in accordance with the provisions of such Bonds and this resolution and to carry out all of the Bond Registrar's powers and duties under this resolution. The Bond Registrar shall be responsible for its representations con.tained in the Certificate of Authentication of the Bonds. (b) Registe�ecl Owne�ship. The County and the Bond Registrar, each in its discretion, may deem and treat the Registered Owner of each Bond as the absolute owner thereof for all purposes (except as provided in Section 14 of this resolution), and neither the Colmt� nor the Bond Registrar shall be affected by any notice to the contrary. Payrnent of any such Bond shall be made only as described in Section 3(h) hereof, but such Bond may be transferred as herein provided. All such payrnents made as described in Section 3(h) shall be valid and shall satisfy 'g' P:\20287 CMW\20287 BMF and discharge the liability of the County upon such Bond to the extent of the amount or amounts so paid. (c) DTC Acceptcznce/Letters of Rep�esentcztzons. The Bonds initially shall be held in fully immobilized form by DTC acting as depository. To induce DTC to accept the Bonds as eligible for deposit at DTC, the County has executed and delivered to DTC a Blanlcet Issuer Letter of Representations. Neither the County nor the Bond Registrar will have any responsibility or obligation to DTC participants or the persons for whom they act as nominees (or any successor depository) with respect to the Bonds in respect of the accuracy of any records inaintained by DTC (or any successor depository) or any DTC participant, the payment by DTC (or any successor depository) or any DTC participant of any amount in respect of the principal of or interest on Bonds, any notice which is permitted or required to be given to Registered Owners under this resolution (except such notices as shall be required to be given by the County to the Bond Registrar or to DTC (or any successor depository)), or any consent given or other action talcen by DTC (or any successor depository) as the Registered Owner. For so long as any Bonds are held in fiilly-immobilized form hereunder, DTC or its successor depository shall be deeinecl to be the Registered Owner for all purposes hereunder, and all references herein to the Registered Owners shall mean DTC (or any successor depository) or its noininee and shall not mean the owners of any beneficial interest in such Bonds. If any Bond shall be duly presented for payment and funds have not been duly provided by the County on such applicable date, then interest shall continue to accrue thereafter on tihe unpaid principal thereof at the rate stated on such Bond until it is paid. The Bonds shall not be subject to acceleration. -7- P:\20287 CMW\20287 BMF (d) Use ofDepositor^y. (1) The Bonds shall be registered initially in the name of "Cede & Co.", as nominee of DTC, with one Bond maturing on each of the maturity dates for the Bonds in a denomination corresponding to the total principal therein designated to mature on such date. Registered ownership of such immobilized Bonds, or any portions thereof, may not thereafter be transferred except (A) to any successor of DTC or its nominee, provided that any such successor shall be qualified under any applicable laws to provide the service proposed to be provided by it; (B) to any substitute depository appointed by the Treasurer put•suant to subsection(ii) below or such substitute depository's successor; or (C) to any person as provided in subsection(iv)below. (2) Upon the resignation of DTC or its successor (or any substitute depository or its successor) from its fiinctions as depository or a detennination by the Treasurer to discontinue the systein of boolc entry transfers through DTC or its successor (or any substitute depository or its successor), the Treasltrer may hereafter appoint a substitute depository. Any such substitute depository shall be qualified under any applicable laws to provide the services proposed to be provided by it. (3) In the case of any transfer pLtrsuant to clause (A) or (B) of subsection(1) above, the Bond Registrar shall, upon receipt of all outstanding Bonds, together with a written request of the Treasurer, issue a single new Bond for each maturity then outstanding, registered in the name of such successor or such substitute depository, or their nominees, as the case may be, all as specified in such written request of the Treasurer. (4) In the event that (A) DTC or its successor (or substitute depository or its successor) resigns from its functions as depository, and no sltbstitute depository can be obtained, or (B) the Treasurer determines that it is in the best interest of the beneficial owners of the Bonds that such owners be able to obtain such bonds in the form of Bond certificates, the ownership of -1 O- P:\20287 CMW\20287 BMF such Bonds may then be transferred to any person or entity as herein provided, and shall no longer be held in fiilly-immobilized fonn. The Treasurer shall deliver a written request to the Bond Registrar, together with a supply of definitive Bonds, to issue Bonds as herein provided in any authorized denoinination. Upon receipt by the Bond Registrar of all then outstanding Bonds together with a written request of the Treasurer to the Bond Registrar, new Bonds shall be issued in the appropriate denominations and registered in the names of such persons as are requested in such written request. (e) Regist�cctiorz of Ti^ansfet^ of Ownership oN Exchc�nge; Change in Denominations. The transfer of any Bond may be registered and Bonds may be exchanged, but no transfer of any such Bond shall be valid unless it is surrendered to the Bond Registrar with the assignment form appearing on such Bond duly executed by the Registered Owner or such Registered Owner's duly authorized agent in a manner satisfactory to the Bond Registrar. Upon such surrender, the Bond Registrar shall cancel the surrendered Bond and shall authenticate and deliver, without charge to the Registered Owner or transferee therefor, a new Bond (or Bonds at the option of the new Registered Owner) of the same date, maturity and interest rate and for the same aggregate principal amount in any authorized denomination, naming as Registered Owner the person or persons listed as the assignee on the assignmenti form appearing on the surrendered Bond, in exchange for such surrendered and cancelled Bond. Any Bond may be surrendered to the Bond Registrar and exchanged, without charge, for an equal aggregate principal amount of Bonds of the same date, maturity and interest rate, in any authorized denomination. The Bond Registrar shall not be obligated to register the transfer or to exchange any Bond during the 15 days preceding any interest payment or principal payment date any such Bond is to be redeemed. (� Bond RegistNczr^'s Ownership of Bonds. The Bond Registrar may become the Registered Owner of any Bond with the same rights it would have if it were not the Bond -1 1- P,\20287 CMW\20287 BMF Registrar, and to the extent per�nitted by law, may act as depository for and permit any oF itis officers or directors to act as member of, or in any other capacity with respect to, any committee formed to protect the right of the Registered Owners of Bonds. (g) Registration Covenc�nt. The County covenants that, until all Bonds have been surrendered and canceled, it will maintain a system for recording the ownership of each such Bond that complies with the provisions of Section 149 of the Code. (h) Plccce and Medizc�n of Pc�yment. Both principal of and interesti on the Bonds shall be payable in lawful money of the United States of America. Interest on the Bonds shall be calculated on the basis of a year of 360 days and twelve 30-day months. For so long as all Bonds are in fiilly iminobilized form, payments of principal and interest thereon shall be made as provided in accordance with the operational arrangements of DTC referred to in the Letter of Representations. In the event that the Bonds are no longer in fiilly immobilized form, interest on the Bonds shall be paid by check or draft mailed to tha Registered Owners at the addresses for such Registered Owners appearing on the Bond Register on the fifteenth day of the month preceding the interest payment date, or upon the written request of a Registered Owner of more than $1,000,000 of Bonds (received by the Bond Registrar at least 15 days prior to the applicable payment date), such payment shall be made by the Bond Registrar by wire transfer to the account within the continental United States designated by the Registered Owner. Principal of the Bonds shall be payable upon presentation and surrender of such Bonds by the Registered Owners at the principal office of the Bond Registrar. -12- P:\20287 CMW\20287 BMF Section 4. Redemption Prior to Maturity and Purchase of Bonds. (a) Optional Reclemptzon. The Bonds may be subject to optional redemption on the dates, at the prices and under the ter�ns set forth in the Bond Purchase Contract approved by the County Representative pursuant to Section 13. (b) Mandc�tory Rec�e�nption. The Bonds may be subjeet to mandatoiy redemption to the extent, if any, set forth in the Bond Purchase Contract and as approved by the County Representative pursuant to Section 13. (c) Purchase of Bonds. The County raserves the right to purchase any of the Boncls offered to it at any tima at a price deemed reasonable by the Treasurer. (d) Selection of Bonds foN Redemption. For as long as the Bonds are held in book- entry only for�n, the selection of particular Bonds within a maturity to be redeemed shall be made in accordance with the operational arrangements then in effect at DTC. If the Bonds are no longer held in uncertificated form, the selection of such Bonds to be redeemed shall be made as provided in this subsection (d). If the County redeems at any one time fewer than all of the Bonds having the saine maturity date, the particular Bonds or portions of Bonds of such maturity to be redeemed shall be selected by lot (or in such manner determined by the Bond Registrar) in increments of $5,000. In the case of a Bond of a clenomination greater than $5,000, the County ancl the Bond Registrar shall treat each Bond as representing such number of separate Bonds each of the denomination of $5,000 as is obtained by dividing the actual principal amount of such Bond by $5,000. In the event that only a portion of the principal sum of a Bond is redeemed, upon surrender of such Bond at the principal office of the Bond Registrar there shall be issued to the Registered Owner, without charge therefor, for the then unredaemed balance of the principal sum thereof, at the option of the Registered Owner, a Bond or Bonds of like maturity and interest rate in any of the denominations herein authorized. -13- P:\20287 CMW\20287 BMF (e) Notice of Reclemption. (1) Official Notice. For so long as the Bonds are held in uncertificated form, notice of redeinption (which notice inay be condition�l) sha11 be given in accordance with the operational arrangements of DTC as then in effect, and neither the County nor the Bond Registrar will provide any notice of redemption to any beneficial owners. Thereafter (if the Bonds are no longer held in uncertificated form), notice of redemption shall be given in the manner hereinafter provided. Unless waived by any owner of Bonds to be redeemed, official notice of any such redemption (which redeinption shall be conditioned by the Bond Registrar on the receipt of sufficient fiinds for redernption) shall be given by the Bond Registrar on behalf of the County by mailing a copy of an official recleinption notice by first class mail at least 20 days and not more than 60 days prior to the date fixed for redemption to the Registered Owner of the Bond or Bonds to be redeemed at the address shown on the Register or at such other adclress as is furnished in writing by such Registered Owner to the Bond Registrar. All official notices of redemption for Bonds shall be dated and shall state: (A) the redeinption date, (B) the redemption price, (C) if fewer than all outstanding Bonds are to ba redeemed, the identification by maturity (and, in the case of partial redemption, the respective principal amounts) of the Bonds to be redeemed, (D) that on the redemption date the redemption price will become due and payable upon each such Bond or portion thereof called for redemption, and that interest thereon shall cease to aceriie from and after said date, and (E) the place where such Bonds are to be surrendered for payment of the redemption price, which place of payinent shall be the principal office of the Bond Registrar. -14- P:120287 CMW\20287 BMF On or prior to any redemption date, unless the redamption was conditional and the conditions for the redemption have not been satisfied, the County shall deposit with the Bond Registrar an amount of money sufficient to pay the redemption price of all the Bonds or portions of Bonds which are to be redeeined on that date. (2) Effect of Notice; Bonds Due. If an unconditional notice of redemption has been given as aforesaid, the Bonds or portions of Bonds so to be redeemed shall, on the redemption date, becoine due and payable at the redemption price therein specified, and from and after such date such Bonds or portions of Bonds shall cease to bear interest. Upon surrender of such Bonds for redemption in accordance with said notice, such Bonds shall be paid by the Bond Registrar at the redemption price. Installments of interest due on or prior to the redemption date shall be payable as herein provided for payment of interest. All Bonds which have been redeemed shall be canceled and destroyed by the Bond Registrar and shall not be reissued. (3) Additional Notice. In addition to the foregoing notice, further notice shall be given by the County as set out below, but no defect in said fiirther notice nor any faihire to give all or any portion of such fiirther notice shall in any manner defeat the effectiveness of a call for redemption if notice thereof is given as abova prescribed. Each fiirther notice of redemption given hereunder shall contain the information required above t'or an official notice of redemption phis (A) the CUSIl' numbers of a11 Bonds being redeeined; (B) the date of isstite of the Bonds as originally issued; (C)the rate of interest borne by each Bonci being redeemed; (D) the maturity date of each Bond being redeemed; and (E) any other descriptive information needed to identify accLtrately the Bonds being redeemed. Each fiirther notice of redemption may be sent at least 25 days before the redemption date to each party entitled to receive notice pursuant to Section 14, and to such persons (including securities repositories who customarily at the time receive notices of redemption in accordance with rules promulgated by the SEC) and with such additional -15- P:\20287 CMW\20287 BMF inforination as the County shall deem appropriate, but such mailings shall not be a condition precedent to the redemption of such Bonds. (4) CUSIP Number. Upon the payment of the redemption price of Bonds being redeeined, each check or other transfer of fiinds issued for such purpose shall bear the CUSIP number identifying, by issue and maturity, the Bonds being redeemed with the proceeds of such check or other transfer. (5) Amendment of Notice Provisions. The foregoing notice provisions of this Section 4, including but not limited to the information to be included in redemption notices and the persons designated to receive notices, may be amended by additions, deletions and changes in order to maintain compliance with duly proinulgatecl regulations and recommendations regarding notices of redemption of municipal securities. Section 5. Form of Bonds. The Bonds s�iall be in substantially the following form: NO. $ UNITED STATES OF AMERICA STATE OF WASHINGTON GRANT COUNTY SALES TAX/LIMITED TAX GENERAL OBLIGATION REFUNDING BOND, 2017 INTEREST RATE: % MATURITY DATE: CUSIP NO.: lZegistered Owner: CEDE & CO. Principal Amount: Grant County, Washington (the "County"), hereby acknowledges itself to owe and for vahie received promises to pay to the Registered Owner identified above, or registered assigns, on the Maturity Date identified above, the Principal Amount indicated above and to pay interest thereon from , 2017, or the most recent date to which interest has been paid or duly provided for until payment of this bond at the Interest Rate set forth above, payable on , 20_, and semiannually thereafter on the first days of each succeeding and . Both principal of and interest on this bond are payable in lawful money of the United States of America. For so long as the bonds of this issue are held in fully immobilized forin, payments of principal and interest thereon shall be made as provided in accordance with -16- P;\20287 CMW\20287 BMF the operational arrangements of The Depository Trust Company ("DTC") referred to in the Blanket Issuer Letter of Representations (the "Letter of Representations") froin the County to DTC. Tnitially, the County Treasurer has specified and adopted the registration system for the bonds of this issue specified by the State Finance Cominittee, and the fiscal agent of the State will act as registrar, paying agent and authenticating agent (the"Bond Registrar"). The bonds of this issue are issued under and in accordance with the provisions of the Constitution and applicable statutes of the State of Washington and Resolution No. 16-075�CC duly adopted by the Board on October 24, 2016 (the"Bond Resolution"). Capitalized terms used in this bond have the ineanings given such terms in the Bond Resolution. This bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Bond Resolution until the Certificate of Authentication hereon shall have been manually signed by or on behalf of the Bond Registrar. This bond is one of an authorized issue of bonds of like date, tenor, rate of interest and date of maturity, except as to number and amount in the aggregate principal amount of $ and is issued pursuant to the Bond Resolution for providing funds to refund outstanding sales tax/limited tax general obligation bonds and pay costs of issuance. The bonds of this issue are subject to redemption as stated in the Bond Purchase Contract and the Official Statement dated , 2016. The County has pledged proceeds of the sales and use taxes collected by the County pursuant to RCW 82.14.420 to the repayrnent of the bonds of this issue. In the event the sales and use tax funds and other MACC fiinds are insufficient, the County will then draw upon the Reserve Fund to ineet such deficiency, and as further security for the repayment of the bonds of this issue, the County hereby inevocably covenants and agrees with the owner of this bond that, to the extent such sales and use tax receipts are insufficient, it will include in its annual budget and levy taxes annually, within and as a part of the tax levy permitted to counties without a vote of the electorate, upon all the property subject to taxation in amounts sufficient, together with other revenues and money legally available therefor, to pay the principal of and interest on this bond as the same shall become due. The fiill faith, credit and resources of the County are hereby irrevocably pledged for the annual levy and collection of such taxes and the prompt payment of such principal and interest. The County has designated the Bonds as "qualified tax-exempt obligations" for investment by financial institutions under Section 265(b) of tha Code. The pledge of tax levies for payrnent of principal of and interest on the bonds may be discharged prior to maturity of the bonds by making provision for the payrnent thereof on the terms and conditions set forth in the Bond Resohition. 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 bond have happened, been done and performed and that -17- P:\20287 CMW\20287 BMF the issuance of this bond and the bonds of this issue does not violate any constitutional, statutory or other limitation upon the amount of bonded indebtedness that the County inay iiicur. IN WITNESS WHEREOF, Grant County, Washington, has caused this bond to be executed by the manual or facsiinile signatures of the Chair and Clerk of the Board o�Cotinty Coininissioners, and the seal of the County to be impressed, imprinted, or otherwise reproduced hereon, as of this_day of , 2017. [SEAL] GRANT COUNTY, WASHINGTON /s/facsimile or manual si�nature Chair of the Board of County Commissioners ATTEST: /s/ facsimile or manual si ng ature Clerk of the Board of County Commissioners The Bond Registrar's Certificate of Authentication on the Bonds shall be in substantially the following form: CERTIFICATE OF AUTHENTICATION Date of Authentication: This bond is one of the bonds described in the within-mentioned Bond Resohition and is one of the Sales Tax/Limited Tax General Obligation Refiinding Bonds, 2017 of Grant County, Washington, dated , 2017. WASHINGTON STATE FISCAL AGENT, Bond Registrar By Authorized Officer Section 6. Execution of Bonds. The Bonds sh.all be executed on behalf of the County with the manual or facsimile signatures of the Chair of the Board and the Clerk of the Board, and the corporate seal of the County shall be impressed, imprinted or otherwise reproduced thereon. -1 O- P:\20287 CMW\20287 BMF In case either or both of the officers who shall have executed the Bonds shall cease to be an officer or officers of the County bet'ore the Bonds so signed shall have been authenticated or delivered by the Bond Registrar, or issued by the County, such Bonds may nevertheless be authenticated, delivered and issued, and upon such authentication, delivery and issuance, shall be as binding upon the County as though those who signed the same had continued to be such officers of the County. Any Bond also may be signeci and attested on behalf of the County by such persons as at the actual date of execution of such Bond shall be the proper officers of the County although at the original date of such Bond any such person shall not have been such officer of the County. Only such Bonds as shall bear thereon a Certificate of Authentication in the form hereinbefore recited, manually executed by the Bond Registrar, shall be valid or obligatory for any purpose or entitled to the benefits of this resohrtion. Such Certificate of Authentication shall be conclusive evidence that the Bonds so authenticated have been duly executed, authenticated and delivered hereunder and are entitled to the benefits of this resolution. Section 7. Lost or Destro�d Bonds. If any Bonds are lost, stolen or destroyed, the Bond Registrar may authenticate and deliver a new Bond or Bonds of like ainount, inatltrity and tenor to the Registered Owner upon the owner paying the expenses and charges of the Bond Registrar and the County in connection with preparation and authentication of the replacement Boncl or Bonds and upon his or her filing with the Bond Registrar and the County evidence satisfactory to both that such Bond or Bonds were actually lost, stolen or destroyed and of his or her ownership, and upon fiirnishing the County and the Bond Registrar with indemnity satisfactory to both. -19- P,\20287 CMW\20287 BMF Section 8. Bond FundLReserve Fund. (a) Bond Fzcnd. A fiind of the County known as the "MACC Bond" has been created in the office of the County Treasurer. The taxes hereafter levied for the purpose of paying principal of and interest on the Bonds and other funds to be used to pay the Bonds sha11 be deposited in the Bond Fund no later than the date such fiinds are required for the payrnent of principal of and interest on the Bonds. The Bond Fund shall be drawn upon for the sole pLtrpose of paying the principal of and interest on the Bonds. Money in the Bond Fund not needed to pay the interest or principal next coming due may temporarily be deposited in such institutions or invested in such obligations as may be lawful for the investment of County money. (b) Reser�ve Fund. A fiind of the County known as the "MACC Bond Reserve" has been created in the office of the County Treasurer. The Reserve Fund shall be maintained for the purpose of securing the payment of the principal of and interest on all MACC Bonds. The County covenants and agrees that from and after the closing and delivery of the Bonds, it will at all times maintain an amount in the Reserve Fund at least equal to the Reserve Requirement except for withdrawals therefrom authorized hereinafter, at all tiines for so long as any MACC Bonds remain outstanding. If the balances on hand in the Reserve Fund are sufficient to satisfy the Reserve � Requirement, interest earnings shall be applied as provided in the following sentences. Whenever there is a sufficient amount in the Bond Fund, including the Reserve FLtnd and the Bond Fund to pay the principal of and interest on all outstanding MACC Bonds, the money in the Reserve Fund may be used to pay such principal and interest. As long as the money left remaining on deposit in the Reserve Fund is equal to the Reserve Requirement, money in the Reserve Fund may be used to pay the principal of and interest on MACC Bonds as the same -GO- P:\20287 CMW\20287 BMF becomes due and payable. The County also may transfer out of the Reserve Fund any money required in order to prevent any MACC Bonds froin becoming"arbitrage bonds"under the Code. If a deficiency in the Bond Fund shall occur as a result of insufficient collections of the 911 Sales Taxes, and other MACC Ftinds have not been deposited into the Bond Fund, such deficiency shall first be made up from the Reserve Fund by the withdrawal of cash therefrom for that purpose and by the sale or redemption of obligations held in the Reserve Fund, in such amounts as will provide cash in the Reserve Fund sufficient to make up any such deficiency with respect to the Bonds. Any deficiency created in the Reserve Fund by reason of any such withdrawal and transfer to the Bond Fund shall then be made up within one year of the date of withdrawal from 911 Sales Tax receipts, other MACC Funds or other legally available funds. (c) Appliecetion ctncl Investnzent of Moneys in the Boncl Fund and Reserve Funcl. Money in the Bond Fund and Reserve Fund may be invested as permitted by law. Investments in the Bond Fund shall mature prior to the date on which such money shall be needed for required interest or principal payments. Investments in the Reserve Fund shall mature not later than the last maturity of any then outstanding MACC Bonds. All interest earned and income clerived by virtue of such investments shall remain in the Bond Fund or the Reserve Fund, as specified by the Treasurer, and be used to meet the required deposits therein. Section 9. Pled�e of Taxation and Credit. The County hereby pledges and covenants that all taxes imposed and collected pursuant to RCW 82.14.420 ("911 Sales Tax") shall be applied as a priority for the payment of debt service on the Bonds. In addition, other MACC Funds, if not then required for operational purposes, shall be deposited into the Bond Fund, if required. As an additional priority, the Reserve Fund shall be drawn upon to pay debt service on MACC Bonds. As additional security for the repayment of the Bonds and to the extent 911 Sales Tax collections, other MACC Funds and money on hand in the Reserve Fund is insufficient for -21- P:\20287 CMW\20287 BMF tha payment of debt service on MACC Bonds, the County hereby irrevocably covenants and agrees for as long as any of the Bonds are outstanding and Ltnpaid that each year it will inchide in its budget and levy an ctcl vc�lorem tax upon all the propei-ty within the County subject to taxation in an ainount that will be sufficient, together with all other revenues and inoney of the County legally available for such purposes, to pay the principal of and interest on the Bonds as the same shall become due. All of such taxes so collected and any other money to be used for such purposes shall be paid into the Bond Fund. The County hereby irrevocably pledges that tha annual tax provided for herein to be levied for the payment of such principal and interest shall be within and as a part of the tax levy permitted to counties without a vote of tihe people, and that a sufficient portion of each annual levy to be levied and collected by the County pi-ior to the full payment of the principal o�and interest on the Bonds will be and is hereby irrevocably set aside, pledged and appropriated for the payrnent of the principal of and interest on the Bonds. The full faith, credit and resources of the County are hereby irrevocably pledged for the annual levy and collection of' said taxes and for the proinpt payment of the principal of and interest on the Bonds as the same shall become due. Section 10. Defeasance. In the event that money and/or Govermnent Obligations, maturing at such time or times and bearing interest to be earned thereon in ainounts (together with such money, if necessary) slifficient to redeem and retire part or all of the Bonds in accordance with their terms, are set aside in a special account of the County to effect siich redemption and retirement, and such money and the principal of and interest on such Government Obligations are irrevocably set aside and pledged for such purpose, then no fiirther payments need be made into the Bond Fund for the payment of the principal of and interest on the Bonds so provided for, and the registered owners of such Bonds shall cease to be entitled to -22�^ P:\20287 CMW\20287 BMF any lien, benefit or security of this resolution except the right to receive the money so set aside and pledged, and such Bonds shall be deemed not to be outstanding hereunder. The County shall give written notice of defeasance to the owners of all Bonds so provided and to each party entitled to receive notice in accordance with Section 14 of this resolution. Section 11. Application of Bond Proceeds and Redemption of the Refunded Bonds. (a) Designc�tion of Reficncled Bonds. As oLttlined in the recitals to this resolution, certain principal matui-ities of the 2010 Bonds may be called for redemption prior to their schedulad maturities. All or some of these bonds may be refiinded and defeased with the proceeds of the Bonds authorized by this resohition ("Refunding Bond Candidates"). As provided in Section 13, the County Representative may select some or all of the Refunding Bond Candidates and designate those Refunding Bond Candidates as the "Refiinded Bonds" in the Bond Purchase Contract. (b) Reficncling. A portion of the proceeds of sale of the Bonds in the dollar amount cei-tified by the County to the Escrow Agent shall be delivered to the Escrow Agent for the purpose of defeasing the Refiinded Bonds and paying related costs of issuance. Money received by the Escrow Agent from Bond proceeds and other money provided by the County, shall be used immediately by the Escrow Agent upon receipt thereof in accordance with the terms of the Escrow Agreement to defease the Refunded Bonds as authorized by the 2010 Bond Resolution, and to pay costs of issuance of the Boncls. The County shall defease the Refiinded Bonds and discharge such obligations by the use of money deposited with the Escrow Agent to purchase certain Government Obligations (which obligations so purchased, are herein called "Acquired Obligations"), bearing such interest and inaturing as to principal and interest in stitch amounts and at such times which, together with any necessary beginning cash balance, will -G3- P:\20287 CMW\20287 BMF provide for the payrnent of each of the following bonds that have been designated as "Refiinded Bonds": (1) interest on the Refiinded Bonds coming due on each date on which interest is due and payable, to and including the Call Date; and (2) the redemption price of the Refunded Bonds (100% of the principal ainount thereo fl on the Call Date. Such Acquired Obligations shall be purchased at a yield not greater than the yield permitted by the Code and reglilations relating to acquired obligations in connection with refunding bond issues. (c) Appointneent of EscNow Agent. The County hereby selects U.S. Bank National Association, Seattle, Washington to act as the Escrow Agent for the Refunded Bonds (the "Escrow Agent"). The Bond proceeds designated in the foregoing subsection together with a cash contribution from the County shall be transferred to the Escrow Agent in order to implement the refunding plan. A beginning cash balance, if any, and Acquired Obligations shall be deposited irrevocably with the Escrow Agent in an amount sufficient to defease the Refunded Bonds. The proceeds of the Bonds remaining after acquisition of the Acquired Obligations and provision for the necessary beginning cash balance shall be utilized to pay expenses of the acquisition and safekeeping of the Acquired Obligations and expenses of the issuance of the Bonds and/or returned to the County for the payinent of such expenses. The County Representative is hereby further authorized to select a verification agent who will confirm the accuracy of certain financial infornlation regarding the fiinds to be deposited with the Escrow Agent and the implementation of the refunding plan. -24- P:\20287 CMW\20287 BMF (d) Call For Redemption of the Reficnded Boncls. The County hereby irrevocably sets aside sufficient fiinds out of the purchase of Acquired Obligations from proceeds of the Bonds to make the payrnents described in this Section. The County hereby irrevocably calls the Refiinded Bonds for redemption on the Call Date in accordance with terms of the 2010 Bond Resolution authorizing the redemption and retirement of the Rafiinded Bonds prior to their fixed maturities. Said defeasance and call for redemption of the Refunded Bonds shall be effective and irrevocable after the final establishment of the escrow account and delivery of the Acquired Obligations to the Escrow Agent. The Escrow Agent is hereby authorized and directed to provide for the giving of notice of the redemption of the Refiinded Bonds in accordance with the applicable provisions of the 2010 Bond Resohrtion. The Treasurer of the County is authorized and requested to provide whatever assistance is necessary to accomplish such redemption and the giving of notice therefor, The Escrow Agent is hereby authorized and directed to pay to the fiscal agent or agents of the State of Washington, sums sufficient to pay, when due, the payments specified in this Section. All such sums shall be paid from the moneys and Acquired Obligations deposited with said Escrow Agent pursuant to the previous section of this resolution, and the income therefrom and proceeds thereof. All moneys and Acquixed Obligations deposited with said banlc and any income therefrom shall be credited to a refiinding account and held, invested (but only at the direction of the Treasurer) and applied in accordance with the provisions of this resohttion and with the laws of the State of Washington for the benefit of the County and owners of the Refiinded Bonds. -ZS- P:\20287 CMW\20287 BMF The County will take such actions as are fouild necessary to see that all necessary and proper fees, compensation and expenses of the Escrow Agent for the Refunded Bonds sha11 be paid when due. (e) Escrow Ag�eement/Costs of Issuance Ag�ee�nent. The County Representative is authorized and directed to execute and deliver to the Escrow Agent an Escrow Deposit Agreement (the `Bscrow Agreement") and a Costs of Issuance Agreement (the "Costs of Issuance Agreement"). The County hereby irrevocably sets aside for and pledges to the payrnent of the Refunded Bonds the moneys and obligations to be deposited with the Escrow Agent pursuant to the Escrow Agreement to accomplish the plan of refunding and defeasance of the Refitnded Bonds set forth herein and in the Escrow Agreement. When all of the Refunded Bonds shall have been redeemed and retired, the County may cause any remaining money to be transferred to the Bond Fund for the purposes set forth above. Section 12. Tax Covenants; Special Desi ng ation. (a) No ArbitNczge oN Przvate Activity Bonds. The County hereby covenants that it will not malce any use of the proceeds from the sale of the Bonds or any other fiinds of the County that may be deeined to be proceeds of such Bonds pursuant to Section 148 of the Code that will cause the Bonds to be "arbitrage bonds" within the meaning of said Section. The County will comply with the applicable requirements of Section 148 of the Code (or any successor provision thereof applicable to the Bonds) throughout the term of the Bonds. The Coun�y fiirther covenants that it will not take any action or pennit any action to be taken that would cause the Bonds to constitute "private activity bonds" under Section 141 of the Code. -26- P:\20287 CMW\20287 BMF (b) Private Pe�son Use Limitation fo�^Bonds. The County covenants that for as long as the Bonds are outstanding, it will not permit: (1) More than 10% of the Net Proceeds of the Bonds to be allocated to any Private Person Use; and (2) More than 10% of the principal or interest payments on the Bonds in a Bond Year to be directly or indirectly: (A) secured by any interest in property used or to be used for any Private Person Use or secured by payments in respect of property used or to be used for any Private Person Use, or (B) derived from payinents (whether or not made to the County) in respect of property, or borrowed money,used or to be used for any Private Person Use. The County further covenants that, if: (3) More than five percent of the Net Proceeds of the Bonds are allocable to any Private Person Use; and (4) More than five percent of the principal or interest payinents on the Bonds in a bond year are (under the terms of this resolution or any underlying arrangement) directly or indirectly: (A) secured by any interest in propei-ty used or to be used for any Private Person Use or secured by payments in respect of property used or to be used for any Private Person Use, or (B) derived from payments (whether or not made to the County) in respect of property, or borrowed money, used or to be used for any Private Person Use, then, (i) any Private Person Use of the projects described in subsection (3) hereof or Private Person Use payments described in subsection (4) hereof that is in excess of the five percent limitations described in such ' subsections (3) or (4) will be for a Private Person Use that is related to the state or local governmental use of the projects financed and refinanced with Bond proceeds, and (ii) any Private Person Use will not exceed the amount of Net Proceeds of the Bonds used for the state or local govei�unental use portion of the projects to which the Private Person Use of such portion of '27' P:\20287 CMW\20287 BMF such projects relate. The County fiirther covenants that it will comply with any limitations on the use of the projects by other than state and local goverrunental �.isers that are necessary, in the opinion of its bond counsel, to preserve the tax exemption of the interest on the Bonds. The covenants of this section are specified solely to assure the continued exemption from regillar income taxation of the interest on the Bonds. (c) Designation uncle�^Section 265(b) of the Code. The County hereby designates the Bonds as "qualified tax-exempt obligations"under Section 265(b)(3) of the Code for banlcs, thrift institutions and other financial institutions. The County does not anticipate that it will issue more than$10,000,000 in qualified tax-exeinpt obligations during the year 2017. Section 13. Sale of Bonds. The Board has determined that it is in the best interest of the County to delegate to the County Representative the authority to approve the Refunded Bonds, the final interest rates, maturity dates, aggregate principal amount, principal amounts of each maturity, redemption rights and other terms and conditions of the Bonds. The Board has been advised by the Underwriter that market conditions are fluctuating and, as a result, the most favorable inarket conditions may occur on a day other than a regular meeting date of the Board. The Board has determined that it would be in the best interest of the County to delegate to the County Representative for a limited time the authority to designate the Refunded Bonds by , selection fiom the Rafiinding Bond Candidates as described in Section 11 of this resolution, to approve the final interest rates, aggregate principal amount and principal amounts of each maturity of the Bonds and determine the redemption rights for the Bonds. The County Representative is hereby authorized to approve the final interest ratas, aggregate principal amount, principal maturitias and redemption rights for the Bonds in the manner provided hereafter so long as (i) the aggregate principal amount of the Bonds issued pursuant to this resolution does not exceed $6,950,000; (ii.) the trt.le interest cost for the Bonds (in the aggregate) �2,0- P:\20287 CMW\20287 BMF does not exceed 3.70%; and (iii) the net present vahle aggregate savings with respect to all Refunded Bonds to be realized as a result of the refunding of the Refiinded Bonds (after payment of all costs of issuance) is at least equal to the Savings Target. In designating the Refunded Bonds and detennining the final interest rates, aggregate principal amounts and principal maturities, the County Reprasentative, in consultation with County staff, shall take into account those factors that, in his/her judgment, will result in the lowest ttue interest cost on the Bonds to their maturity, including, but not limited to current financial inarket conditions and current interest rates for obligations comparable in tenor and quality to the Bonds. The authority granted to the County Representative by this Section 13 shall expire 180 days after the date of approval of this resolution. If a Bond Purchasa Contract for Bonds has not been executed within 180 days after the date of final approval of this resolution, the authorization for the issuance of such Bonds shall be rescinded, and Bonds shall not be issued nor their sale approved unless such Bonds shall have been re-authorized by Resolution of the Board. The Resohrtion re-authorizing the issuance and sale of such Bonds may be in the form of a new resohition repealing this resolution in whole or in part or may be in the form of an amendatory resolution approving a bond purchase contract or establishing terms and conditions for the authority delegated under this Section 13. Subject to the terms and conditions set forth in this Section 13, the County Representative is hereby authorized to execute the final form of the Bond Purchase Contract, upon his or her approval of the final interest rates, maturity dates, aggregate principal amount, principal inaturities and redemption rights set forth therein. Following the sale of the Bonds, the County Representative shall provide a repoi-t to the Board, describing the final terms of the Bonds approved pursltant to the authority delegated in this section. �27- P:\20287 CMW\20287 BMF Upon the passage and approval of this resolution, the proper officials of the County including the County Representative, are authorized and directed to undertake all action necessary for the prompt execution and deliveiy of the Bonds to the Underwriter thereof and fiirther to execute all closing certificates and docuinents required to effect the closing and delivery of the Bonds in accordance with the terms of the Bond Purchase Contract. In fiirtherance of the foregoing, the County Representative is authorized to approve and enter into agreements for the payment of costs of issuance, inchiding Underwriter's discount, the fees and expanses specified in the Bond Purchase Contract, including fees and expenses of Underwriter and other retained services, including Bond Counsel, rating agencies, fiscal agent, and other expenses customarily incurred in connection with issuance and sale of bonds. The disbursament of Bond proceeds to pay certain costs of issuance shall be made by the Escrow Agent under the terms set forth in the Costs of Issuance Agreement. The County Representative is authorized to ratify and to approve for purposes of the Rule, on behalf of the County, the Official Statement (and any Preliminary Official Statement) ' relating to the issuance and sale of the Bonds and the distribution of the Official Statement pursuant thereto with such changes, if any, as may be deemed by him/her to be appropriate. Section 14. Undertakinp�to Provide Ongoin�Disclosure. (a) Contract/Underta7zing. This section constitutes the County's written undertaking for the benefit of the owners of the Bonds as required by Section (b)(5) of the Rule. (b) Finaneiczl Statements/Operating Dcztc�, The County agrees to provide or cause to , be provided to the Municipal Securities Ruleinaking Board ("MSRB"), the following annual ; � financial information and operating data for the prior fiscal year (commencing in 2017 for the � fiscal year ended December 31, 2016): � -3�- P:\20287 CMW\20287 BMF � 1. Annual financial statements, which statements may or may not be audited, showing ending fiind balances for the County's general fund prepared in accordance with the Bltdget Accounting and Reporting Systein prescribed by the Budget Accounting and Reporting Systein prescribed by the Washington State Auditor pursuant to RCW 43.09.200 (or any successor statute) and generally of the type included in the official statement for the Bonds under the heading "Historical and Budgeted Current Expense Fund Operating Results"; 2. 911 Sales Tax Receipts collections; 3. The assessed valuation of taxable property in the County; 4. Ad valorem taxes due; 5. Property tax levy rate per$1,000 of assessed valuation; and 6. Outstanding general obligation debt of the County. Items 2-6 shall be required only to the extent that such infor�nation is not included in the anntlal financial statements. The information and data described above shall be provided on or before nine months after the end of the County's fiscal year. The County's current fiscal year ends December 31. The County may adjust such fiscal year by providing written notice of the change of fiscal year to the MSRB. In lieu of providing such anmial financial information and operating data, the County may cross-re�er to other documents available to the public on the MSRB's internet website or filed with the SEC. If not provided as part of the annual financial information discussed above, the County shall provide the County's audited annual financial statement prepared in accordance with the Budget Accounting and Reporting System prescribed by the Washington State Auditor pursuant to RCW 43.09.200 (or any successor statute) when and if available to the MSRB. -31- P:\20287 CMW\20287 BMF (c) Listed Events. The County agrees to provide or cause to be provided, in a timely manner to the MSRB notice of the occurrence of any of the following events with respect to the Bonds not in excess of ten bLtsiness days after the occurrence of the event: • Principal and intet•est payrnent delinquencies; • Non-payment related defaults, if material; • Unscheduled draws on debt service reserves reflecting financial difficulties; • Unscheduled draws on credit enhancements reflecting financial difficulties; • Substitution of credit or liquidity providers, or their failure to perform; • Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701- TEB) or other material notices or determinations with respect to tha tax status of the security, or other material or events affecting the tax status of the Bonds; • Modifications to the rights of Bond owners if material; • Optional, contingent or unscheduled Bond calls other than scheduled sinlcing fiind redemptions for which notice is given pursuant to Exchange Act Release 34-23856, if material, and tender offers; • Defeasances; • Release, substitution or sale of property securing the repayment of the Bonds if material; • Rating changes; • Bankniptcy, insolvency, receivership or similar event of the County; • The consummation of a merger, consolidation, or acquisition of the County or the , sale of all or substantially all of the assets of the County, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an , -32- P:\20287 CMW\202II7 BMF action or the termination of a definitive agreement to undertake stilch an action, ' other tihan pursuant to its terms, if material; and • Appointinent of a successor or additional trustee or the change of name of the trustee, if material. Solely for purposes of information, but without intending to modify this undertaking, with respect to the notice regarding property securing the repayment of the Bonds, the County will state in its Preliminary and Final Official Statements that there is no property securing the repayinent of the Bonds. The County shall promptly deter�nine whether the events described above are material. (d) Notifiecttion Upon Fc�ilze�e to P�ovide Finc�neic�l Dc�tct. The County agrees to provide or cause to be provided, in a timely manner to the MSRB notice of its faihlre to provide the annual financial information described in Subsection(b) above on or prior to the date set forth in Subsection (b) above. (e) Em�na; FoNmat for Filings with the MSRB. Until otherwise designated by the MSRB or the SEC, any information or notices submitted to the MSRB in compliance with the Rule are to be submitted through the MSRB's Electronic Municipal Market Access system (`BMMA"), cunently located at www.einma.msrb.org. All notices, financial information and operating data required by this undertaking to be provided to the MSRB inust be in an electronic format as prescribed by the MSRB. All documents provided to the MSRB pursuant to this undertalcing must be accompanied by identifying information as prescribed by the MSRB. (fl Terminc�tion/Moclifiec�tion. The County's obligations to provide annual financial information and notices of listed events shall terminate upon the legal defeasance, prior redemption or payrnent in full of all of the Bonds. Any provision of this section shall be null and void if the County(1) obtains an opinion of nationally recognized bond counsel to the effect that -33- P:\20287 CMW\20287 BMF the portion of the Rule that requires that provision is invalid, has been repealed retroactively or otherwise does not apply to the Bonds and (2) notifies the MSRB of such opinion and the cancellation of this section. The Coltnty may amend this section with an opinion of nationally recognized bond counsel in accordance with the Rule. In the event of any amendment of this section, the County shall describe such amendment in the next anmial report, and shall include, a narrative explanation of the reason for the amendment and its iinpact on the type (or in the case of a change of accounting principles, on the presentation) of financial information or operating data being presented by the Cotinty. In addition, if the amendment relates to the accounting principles to be followed in preparing financial statements, (A) notice of such change shall be given in the same manner as for a listed event under Subsection(c), and (B) the annual report for the year in which the change is made shall present a comparison (in narrative form and also, if feasible, in quantitative form) between the financial statements as preparecl on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. (g) Bond Owner's Refneclies UndeN This Section. The right of any bondowner or beneficial owner of Bonds to enforce the provisions of this section shall be limited to a right to ' obtain specific enforcement of the County's obligations under this section, and any failure by the '� County to comply with the provisions of this unclertaking shall not be an event of default with respect to the Bonds. For purposes of this section, "beneficial owner"means any person who has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, ! any Bonds, inchiding persons holding Bonds through nominees or depositories. � I '34- P:\20287 CMW\20287 BMF Section 15. Severabilitv. If any one or more of the covenants and agreements provided in this resolution to be perforined 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 separable from the remaining covenants and agreements of this resolution and shall in no way affect the validity of the other provisions of this resolution or of the Bonds. ADOPTED this 24th day of October, 2016. BOARD OF COUNTY COMMISSIONERS GRAiI'�T�,COUNTY, WAS�INGTON �µ".b.4 , �. �,"�� Y � �Y � �!`� � F � p , � i dy 'er, air ��.�%�,�,.. �-��� ((:��� Carolann Swartz, Member " .�!,�.1�'n�l _.�._...____--_. Richard Stevens, Member A�ST: .�-- •„� „�° ;� a � '� ,,-r✓, r� 'r�`i �l..r�i�' 8,- � ��.. - lerk of the FBo rd ; � ;' �: ,, �.�..��° ��.. —3 S— P:\20287_CMW\20287_BMF i CERTIFICATE ' I, the undersigned, Clerk of the Board of County Corrunissioners of Grant County, Washington (herein called the "Board") and keeper of the records of the County, DO HEREBY CERTIFY: 1, That the attached Resohition is a true and correct copy of ; Resolution No. 16-075-CC of the County(herein called the "Resohition"), as finally adopted at a regular meeting of the Board held on the 24th day of October, 2016, and duly recorded in my office. 2. That said meeting was duly convened and held in all respects in accordance with law, and to the extent required by law, due and proper notice of such meeting was given; that � quorum of the Board was present throughout the meeting and a legally sufficient number of mexnbers of the Board voted in the proper manner for the approval of said Resolution; that all other requirements and proceedings incident to the proper approval of said Resolution have been duly fiilfilled, carried out and otherwise observed, and that I am authorized to execute this certificate. ' IN WTTNESS WHEREOF, I have hereunto set my hand this 24th day of October, 2016. ������ ..� .� �' .� ��� (,, f�..��.. ,�� �%� �� Clerlc�f th�`Boa,r��'"� �•' �-.��°' ; P:\20287_CMW\20287_BMF '