1265 - Ordinance - System of Registration of Bonds and ObligationsCITY OF PORT ORCHARD, WASHINGTON
Repealed by Ordinance 1 -7 � ) ORDINANCE NO.
Date: 08-24-98
... .."DINANCE adopting a system of registration
of bonds and obligations of the City.
WHEREAS, Section 103(j) of the Internal Revenue Code of
1954, as amended, requires municipal bonds and obligations
offered to the public, having a maturity of more than one year
and issued after June 30, 1983, to be in registered form as a
condition of the exemption from federal income taxation of the
interest on those bonds and obligations; and
WHEREAS, section 3, chapter 167, Laws of 1983, authorizes
cities to establish a system of registering the ownership of
their bonds or obligations as to principal and interesU1,
principal only; NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON,
DO ORDAIN as follows:
Section 1. Definitions. The following words shall have
the following meanings when used in this ordinance:
a. The term "bond" or "bonds" shall have the meaning
defined in section 2(1), chapter 167, Laws of 1983, as the same
may be from time to time amended.
b. The term "City" shall mean City of Port Orchard,
Washington.
C. The term "fiscal agencies" shall mean the duly
appointed fiscal agencies of the State of Washington serving as
such at any given time.
d. The term "obligation" or "obligations" shall have
the meaning defined in section 2(3), chapter 167, Laws of 1983,
as the same from time to time may be amended.
e. The term "registrar" shall be the person or
persons designated by the City to register ownership of bonds or
obligations under this ordinance.
Section 2. Findings. The City Council of the City finds
that it is in the City's best interest to establish a system of
registering the ownership of the City's bonds and obligations in
the manner permitted by law.
Section 3. Adoption of Registration System. The City
adopts the following system of registering the ownership of its
bonds and obligations.
a. Registration Requirement. All bonds and obliga-
tions offered to the public, having a maturity of more than one
year and issued by the City after June 30, 1983, on which the
interest is intended to be exempt from federal income taxation,
shall be registered as to both principal and interest as pro-
vided in this resolution.
b. Method of Registration. The registration of all
City bonds and obligations required to be registered shall be
carried out either by
1) a book entry system of recording the owner-
ship of the bond or obligation on the books of the
City, whether or not a physical instrument is issued;
or
2) by recording the ownership of the bond or
obligation and requiring as a condition of the trans-
fer of ownership of any bond or obligation the sur-
render of the old bond or obligation and either the
reissuance of the old bond or obligation or the
issuance of a new bond or obligation to the new
owners.
No transfer of any bond or obligation subject to registration
requirements shall be effective until the name of the new owner
and the new owner's mailing address, together with such other
information deemed appropriate by the registrar, shall be
recorded on the books of the registrar.
- 2 -
C. Denominations. Except as may be provided other-
wise by the ordinance authorizing their issuance, registered
bonds or obligations may be issued and reissued in any denomina-
tion up to the outstanding principal amount of the bonds or
obligations of which they are a part. Such denominations may
represent all or a part of a maturity or several maturities and
on reissuance may be in smaller amounts than the individual
denominations for which they are reissued.
d. Appointment of Registrar. The ordinance author-
izing the issuance of the bonds or other obligations shall
provide for an authenticating trustee, transfer agent, registrar
and paying agent, which shall, unless otherwise provided by
ordinance, be one or more of the fiscal agencies of the State of
Washington appointed in accordance with Chapter 43.80 RCW,
except that with respect to interest -bearing warrants, install-
ment contracts, interest -bearing leases and other instruments
and other instruments or obligations not usually subject to
trading, assignment or transfer the Treasurer of the City may
serve as the transfer agent, registrar and paying officer. Any
transfer agent, registrar and paying agent or officer shall
comply with all applicable federal and state laws and regula-
tions respecting the carrying out of such duties.
e. Duties of Registrar. The registrar shall serve
as the City's authenticating trustee, transfer agent, registrar
and paying agent for all registered bonds and obligations for
which he, she, or it serves as registrar and shall comply fully
with all applicable federal and state laws and regulations
respecting the carrying out of those duties. The rights,
duties, responsibilities and compensation of the registrar shall
be prescribed in each resolution authorizing the issuance of the
bonds or obligations, which rights, contract executed by the
Treasurer of the City and the registrar, except in instances
MZ
when the fiscal agencies serve as registrar, the City adopts by
reference the contract between the State Finance Committee of
the State of Washington and the fiscal agencies in lieu of
executing a separate contract and prescribing by resolution the
rights, duties, obligations and compensation of the registrar.
When the Treasurer of the city serves as registrar, a separate
contract shall not be required.
In all cases when the registrar is not one or more of the
fiscal agencies and the obligation is assignable, the resolution
authorizing the issuance of the registered bonds or obligations
shall specify the terms and conditions of
1) making payments of principal and interest;
2) printing any physical instruments, in-
cluding the use of identifying numbers or other
designation;
3) specifying record and payment dates;
4) determining denominations;
5) establishing the manner of communicating
with the owners of the bonds or obligations;
6) establishing the methods of receipting for
the physical instruments for payment of principal,
the destruction of such instruments and the certifi-
cation of such destruction;
7) registering or releasing security inter-
ests, if any; and
8) such other matters pertaining to the regis-
tration of the bonds or obligations authorized by
such resolution as the City may deem to be necessary
or appropriate.
Section 4. Statement of Transfer Restrictions. Any physi-
cal instrument issued or executed by the City subject to regis-
tration under this resolution shall state on its face that the
principal of and interest on the bonds or obligations shall be
paid only to the owner thereof registered as such on the books
of the registrar as of the record date defined in the instrument
and to no other person, and that such instrument, either
- 4 -
principal or interest, may not be assigned except on the books
of the registrar.
PASSED by the City Council at a regular open public meeting
thereof and APPROVED by the Mayor of the City of Port Orchard,
Washington, this LZL-day of March, 4. /
Mayor
ATTEST: o
APPROVED AS TO FORM:
City At rney
- 5 -
I, ROBERT G. LLOYD, City Clerk of the City of Port Orchard,
Washington, certify that the attached copy of Ordinance No. /2-6,S�
is a true and correct copy of the original ordinance passed on
the _� day of March, 1984, as that ordinance appears on the
Minute Book of the City.
DATED this Y-_V"day of March, 1984.
0536p