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HomeMy WebLinkAboutRes2003-075Pulled 7-14 CITY OF SEWARD, ALASKA RESOLUTION 2003-75 Sponsored by: Shealy A RESOLUTION RESCINDING RESOLUTION 02-077 AND AUTHORIZING THE CITY OF SEWARD TO I UE GENERAL OBLIGATION REFUNDING BONDS, 2003 IN HE PRINCIPAL AMOUNT OF NOT TO EXCEED $6,000,000 TO FUND CERTAIN OUTSTANDING GENERAL OBLIGATION B DS OF THE CITY, FIXING CERTAIN DETAILS OF SUCH BON AND AUTHORIZING THEIR SALE. WHEREAS, the City of Seward, Alaska (t "City") is a home rule city and under Section 11 of Article X of the Alaska Constitut' n may exercise all legislative power not prohibited by law or the charter of the City, and i as been determined that the matters set forth in this resolution are not prohibited by law or th charter; and WHEREAS, there are now outstan ng $6,320,000 of General Obligation Bonds, 1996 of the City maturing on or after October 1 003 (the "1996 Bonds") issued under Resolution No. 96-048 and Resolution No. 96-102 of th ity; and WHEREAS, the council fin that it is in the best interest of the City to provide for the refunding, including the payment principal of, and premium and interest on, those maturities ~.. of the 1996 Bonds (the "Refund Bonds") whose refunding the City Manager or City Finance Director determines will produ the percentage debt service savings specified in this resolution, by the issuance of general obl' ation refunding bonds in the aggregate principal amount of not to exceed $6,000,000 (the "Bo s"); and WHEREAS, Sec~on 11.2(a) of the home rule charter of the City provides that the City may issue general oblig~,~ion refunding bonds without ratification of the voters; and WHEREAS, e Council finds that it is necessary and appropriate to delegate to each of the City Manager d City Finance Director authority to determine the maturity amounts, interest rates and other de ils of the Bonds, and to determine other matters pertaining to the Bonds that are not provided or in this resolution; and WHE AS, there has been presented to the City the form of an Amendatory Loan Agreement etween the Alaska Municipal Bond Bank and the City, which amends the Loan Agreement dated as of September 1, 1996 between the Alaska Municipal Bond Bank and the City top vide for the refunding of the Refunded Bonds through their exchange for refunding bonds to e issued by the City, and related matters. NOW, THEREFORE, BE IT RESOLVED: CITY OF SEWARD, ALASKA RESOLUTION 2003-75 Section 1. Definitions. The following terms shall have the following meanings in this resolution: (A) "Amendatory Loan Agreement means the Amendatory Loan Agreement between the City and the Bond Bank, amending the Loan Agreement to provide for the refunding of the Refunded Bonds through their exchange for the Bonds, and related matters. (B) "Bond" or "Bonds" means any of the "General Obligation Refunding Bonds, 2003" of the City of Seward, the issuance and sale of which are authorized herein. (C) "Bond Bank" means the Alaska Municipal Bor~ Bank, a public corporation of the State of Alaska. (D) "Bond Bank Bonds" means the General C~ligation Refunding Bonds, Series 2003 of the Bond Bank. / (E) "Bond Re ig ster" means the r include the names and addresses of the Regi (F) "City" means the City of Se` organized as a home rule city under Title 29 books maintained by the Registrar, which iers of the Bonds or their nominees. ~, a municipal corporation of the State of Alaska, the Alaska Statutes. (G) "City Finance Director" ans the Finance Director of the City, and any person duly authorized to act in that capacity as terim Finance Director or Acting Finance Director. (H) "Code" means the Irate al Revenue Code of 1986, as amended from time to time, together with all regulations applica a thereto. (I) "Council" means a Council of the City of Seward, as the general legislative authority of the City of Seward, as the same shall be duly and regularly constituted from time to time. (J) "Loan A ee ent" means the Loan Agreement between the City and the Bond Bank dated as of Septemb 1, 1996, as amended from time to time. (K) "1996 B ds" means the $6,320,000 of General Obligation Bonds, 1996 of the City maturing on or a er October 1, 2003. (L) "Refunded Bonds" means the maturities of the 1996 Bonds whose refunding is approved by the City Manager or City Finance Director under Section 13. .rii CITY OF SEWARD, ALASKA RESOLUTION 2003-75 (M) "Registered Owner" means the person named as the registered owner of a Bond in the Bond Register. (N) "Registrar" means the City Finance Director. (0) "Resolution" means this Resolution No. 2003-7~'`of the City. Section 2. Authorization of Bonds and Pu ose of ssuance. For the purpose of effecting the refunding by exchange of the Refunded Bonds in t manner set forth hereinafter and in the Amendatory Loan Agreement, the City hereby auth zes and determines to issue and sell the Bonds in the aggregate principal amount of not toe eed $6,000,000. Section 3. Obligation of Bonds. The B ds shall be direct and general obligations of the City and the full faith and credit of the City hereby pledged to the payment of the principal of and interest on the Bonds. The City hereb irrevocably pledges and covenants that it will levy and collect taxes upon all taxable prop y within the City without limitation as to rate or amount, in amounts sufficient, together ith other funds legally available therefore, to pay the principal of and interest on the Bonds the same become due and payable. Section 4. Des nation ~""' Bonds shall be designated "City The Bonds shall be in the de numbered separately in the r. necessary for purposes of i nti may be necessary or appr prial authority or any usage or equire ylaturities Interest Rates, and Other Details of Bonds. The Seward, Alaska, General Obligation Refunding Bonds, 2003." nination of $1,000 or any integral multiple thereof, shall be ;r and with such additional designation as the Registrar deems ration, and may have endorsed thereon such legends or text as to conform to the rules and regulations of any governmental ent of law with respect thereto. A portion of t e principal of the Bonds shall mature annually commencing in 2004 and continuing no late than 2015. The Bonds shall bear interest from their date, payable commencing on a ate on or after September 1, 2003 and semi-annually thereafter in each year. Interest will be c puted on the basis of a 360-day year consisting of twelve 30-day months. The d ed date, the principal and interest payment dates, the aggregate principal amount, the principa amount of each maturity, and the interest rates on the Bonds shall be determined at the time of xecution of the Amendatory Loan Agreement under Section 17. ection 5. Optional Redemption. The Bonds, if any, subject to optional redemption by the Ci ,the time or times when such Bonds are subject to optional redemption, the terms upon whic such Bonds may be redeemed, and the redemption price or redemption prices for such Bo s, shall be determined at the time of execution of the Amendatory Loan Agreement under S tion 17. ... CITY OF SEWARD, ALASKA RESOLUTION 2003-75 Section 6. Selection of Bonds for Redemption• Notice of Redemption. (A) Selection of Bonds for Redemption. As long as the Bond Bank is the Registered Owner of the Bonds, the selection of Bonds to be redeemed shall be made as provided in the Loan Agreement. If the Bond Bank is no longer the Registered Owner of the Bonds, the selection of Bonds to be redeemed shall be made as provided in this subsection (A). If the City redeems at any one time fewer than all of the Bonds having the same maturity date, the particular Bonds or portions of Bonds of such maturity to be redee d shall be selected by lot (or in such other manner determined by the Registrar) in increment of $1,000. In the case of a Bond of a denomination greater than $1,000, the City shall treats ch Bond as representing such number of separate Bonds each of the denomination of $1,000 a is obtained by dividing the actual principal amount of such Bond by $1,000. In the event tha only a portion of the principal amount of a Bond is redeemed, upon surrender of such Bon at the office of the Registrar there shall be issued to the Registered Owner, without charge erefore, for the then unredeemed balance of the principal sum thereof, at the option of the Re istered Owner, a Bond or Bonds of like maturity and interest rate in any of the denominations uthorized herein. (B) Notice of Redemption. As ong as the Bond Bank is the Registered Owner of the Bonds, notice of any intended rede tion of Bonds shall be given as provided in the Loan Agreement. If the Bond Bank is n onger the Registered Owner of the Bonds, notice of any intended redemption of Bonds shal a given as hereinafter provided. Notice of redemption shall be mailed not less than 30 norm re than 45 days prior to the date fixed for redemption by first class mail to Registered Owners f the Bonds to be redeemed at their addresses as they appear on the Bond Register on the day t e notice is mailed. Notice of redemption shall be deemed to have been given when the notice i mailed as herein provided, whether or not it is actually received by the Registered Owners. 1 notices of redemption shall be dated and shall state: (1) the redemption date; (2) the demption price; (3) if fewer than all outstanding Bonds are to be redeemed, the identifica on (and, in the case of partial redemption, the respective principal amounts) of the Bonds t be redeemed; (4) that on the redemption date the redemption price will become due and payab upon each such Bond or portion thereof called for redemption, and that interest thereon shall ease to accrue from and after said date; and (5) the place where such Bonds are to be Burr dered for payment of the redemption price, which place of payment shall be the office of the e~istrar. Official n ice of redemption having been given as aforesaid, Bonds or portions of Bonds to be redeemed all, on the redemption date, become due and payable at the redemption price therein specifie ,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 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. Upon surrender of any Bond for partial redemption, there shall be prepared for the Registered Owner a new Bond or CITY OF SEWARD, ALASKA RESOLUTION 2003-75 Bonds of the same maturity in the amount of the unpaid principal. X11 Bonds which have been redeemed shall be canceled and destroyed by the Registrar and sha not be reissued. Each check or other transfer of funds issued to pay t redemption price of Bonds shall bear the CUSIP number, if any, identifying, by maturity, a Bonds being redeemed with the proceeds of such check or other transfer. Section 7. Form of Bond. Each Bond shall in substantially the following form, with such variations, omissions and insertions as maybe equired or permitted by this Resolution: UNITED STATE'S OF AMERICA STATE F ALASKA CIT OF SEWARD (A Municipal C oration of the State of Alaska) NO. $ GENERAL OBLIGATION REFUNDING BOND, 2003 REGISTERED OWNER: PRINCIPAL AMOUNT: The City of Sew rd (the "City"), a municipal corporation of the state of Alaska, hereby acknowledges itself to we and for value received promises to pay to the Registered Owner identified above, or it registered assigns, the Principal Amount indicated above in the following installments on 1 of each of the following years, and to pay interest on such installments from t date hereof, payable on 1, 200_ and semiannually thereafter on the 1st days of and of each year, at the rates per annum as follows: Principal Interest Amount Rate For so~long as this Bond is owned by the Alaska Municipal Bond Bank (the "Bond Bank"), payment of principal and interest shall be made as provided in the Loan Agreement between the CITY OF SEWARD, ALASKA RESOLUTION 2003-75 Bond Bank and the City (the "Loan Agreement"). In the event that this Bond is no longer owned by the Bond Bank, installments of principal and interest on this and shall be paid by check or draft mailed by first class mall to the Registered Owner as of the close of business on the fifteenth day of the month preceding each installment pa ent date; provided that the final installment of principal and interest on this Bond shall be payable upon presentation and surrender of this Bond by the Registered Owner at the o ice of the Registrar. Interest will be computed on the basis of a 360-day year consisting oft elve 30-day months. Both principal of and interest on this Bond are payable in lawful money f the United States of America which, on the respective dates of payment thereof, shall be 1 al tender for the payment of public and private debts. This Bond is one of the General Ob Seward, Alaska, of like tenor and effect excel aggregating $ in principal purpose of refunding certain general obliga ~c Resolution No. of the City entitl d: ~tion Refunding Bonds, 2003 of the City of as to interest rate, serial number and maturity, punt, and constituting Bonds authorized for the bonds issued by the City, and is issued under A RESOLUTION AUTHORIZ G THE CITY OF SEWARD TO ISSUE GENERAL OBLIGATION RE ING BONDS, 2003 IN THE PRINCIPAL AMOUNT OF NOT TO EX EED $ TO REFUND CERTAIN OUTSTANDING GENERA OBLIGATION BONDS OF THE CITY, FIXING CERTAIN DETAILS OF S H BONDS AND AUTHORIZING THEIR SALE. (the "Resolution") The maturity installme is of this Bond maturing on and after 20_ are subject to redemption prior o maturity at the option of the City on any date on or after 20_, either s a whole or in part and from such maturities as the City shall determine, and by lot with' a maturity, at a redemption price equal to the principal amount of the maturity installment f this Bond to be redeemed plus accrued interest to the date of redemption. This Bond is t sferable as provided in the Resolution, (i) only upon the bond register of the City, and (ii) up surrender of this Bond together with a written instrument of transfer duly executed by the r istered owner or the duly authorized attorney of the registered owner, and thereupon a new fully registered Bond or Bonds in the same aggregate principal amount and maturity shall be issued to the transferee in exchange therefore as provided in the Resolution and upon the payment of charges, if any, as therein prescribed. The City may treat and consider the person in whose name this Bond is registered as the absolute owner hereof for the purpose of receiving payment of, or on account of, the principal or redemption price, if any, hereof and interest due hereon and for all other purposes whatsoever. CITY OF SEWARD, ALASKA RESOLUTION 2003-75 This Bond is a general obligation of the City of Seward, and the full faith and credit of the City are pledged for the payment of the principal of and interest on the Bond as the same shall become due. IT IS HEREBY CERTIFIED AND RECITED that all conditions, acts or things required by the constitution or statutes of the State of Alaska and the home rule charter of the City to exist, to have happened or to have been performed preced t to or in the issuance of this Bond exist, have happened and have been performed, and that t e series of Bonds of which this is one, together with all other indebtedness of the City, is withi every debt and other limit prescribed by said constitution, statutes, or charter. IN WITNESS WHEREOF, THE CITY O SEWARD, ALASKA, has caused this Bond to be signed in its name and on its behalf by t manual or facsimile signature of its Mayor and its corporate seal (or a facsimile thereof) to a impressed or otherwise reproduced hereon and attested by the manual or facsimile signatur fits Clerk, all as of the 14th day of July, 2003. Stu Clark, Mayor ATTEST: JEAN LEWIS, City Clerk [SEAL] Section 8. Execut' n. The Bonds shall be executed in the name of the City by the Mayor or his designee, and its orporate seal shall be impressed or otherwise reproduced thereon and attested by the City Cle .The execution of a Bond on behalf of the City by persons who at the time of the execution e duly authorized to hold the proper offices shall be valid and sufficient for all purposes, alt ough any such person shall have ceased to hold office at the time of authentication of th Bond or shall not have held office on the date of the Bond. Section 9 Payment of Principal and Interest. The Bonds shall be payable in lawful money of the nited States of America which at the time of payment is legal tender for the payment of p lic and private debts. As long as the Bond Bank is the Registered Owner of the Bonds, pa nt of principal and interest on the Bonds shall be made as provided in the Loan Agreement If the Bond Bank is no longer the Registered Owner of the Bonds, installments of principal nd interest on the Bonds shall be paid by check mailed by first class mail to the Register d Owner as of the fifteenth day of the month preceding each installment payment date at the address appearing on the Bond Register; provided that the final installment of principal and CITY OF SEWARD, ALASKA RESOLUTION 2003-75 interest on a Bond shall be payable upon presentation ands ender of the Bond by the Registered Owner at the office of the Registrar. Section 10. Registration. The Bonds shall be issu only in registered form as to both principal and interest. The City designates the City Finan a Director as Registrar for the Bonds. The Registrar shall keep, or cause to be kept, the Bond gister at the principal office of the City. The City covenants that, until all Bonds have been s endered and canceled, it will maintain a system for recording the ownership of each Bond t at complies with the provisions of Section 149 of the Code. The City and the Registrar may eat the person in whose name any Bond shall be registered as the absolute owner of such Bon for all purposes, whether or not the Bond shall be overdue, and all payments of principal of nd interest on a Bond made to the Registered Owner thereof or upon its order shall be vali and effectual to satisfy and discharge the liability upon such Bond to the extent of the sumo sums so paid, and neither the City nor the Registrar shall be affected by any notice to the cont ry. Section 11. Transfer and Exc n e. Bonds shall be transferred only upon the books for the registration and transfer of Bon kept at the office of the Registrar. Upon surrender for transfer or exchange of any Bon at such office, with a written instrument of transfer or authorization for exchange in fo and with guaranty of signature satisfactory to the Registrar, duly executed by the Registere caner or the duly authorized attorney of the Registered Owner, the City shall execute and de ver an equal aggregate principal amount of Bonds of the same maturity of any authorized d ominations, subject to such reasonable regulations as the City may prescribe and upon paym t sufficient to reimburse it for any tax, fee or other governmental charge required to be pai in connection with such transfer or exchange. All Bonds surrendered for transfer or exchange hall be canceled by the Registrar. Section 12. nds Mutilated Destro ed Stolen or Lost. Upon surrender to the Registrar of a mutilated Bon the City shall execute and deliver a new Bond of like maturity and principal amount. Upon fil' g with the Registrar of evidence satisfactory to the City that a Bond has been destroyed, stole or lost and of the ownership thereof, and upon furnishing the City with indemnity satis ctory to it, the City shall execute and deliver a new Bond of like maturity and principal amo t. The person requesting the execution and delivery of a new Bond under this section shall omply with such other reasonable regulations as the City may prescribe and pay such expens s as the City may incur in connection therewith. Se tion 13. Designation of Refunded Bonds. The City Manager and the City Finance Director ach is authorized to designate which maturities of 1996 Bonds authorized to be refunde in this Resolution shall be refunded, provided that the refunding of the 1996 Bonds so designated shall realize a debt service savings of at least $135,000, net of all issuance, costs and underwriting discount, on a present value basis. 0 CITY OF SEWARD, ALASKA RESOLUTION 2003-75 0 Section 14. Tax Covenants. The City covenants to comply with y and all applicable requirements set forth in the Code in effect from time to time to the ext t that such compliance shall be necessary for the exclusion of the interest on the Bonds fro gross income for federal income tax purposes. The City covenants that it will make no us f the proceeds of the Bonds which will cause the Bonds or the Refunded Bonds to be "ar ~ rage bonds" subject to federal income taxation by reason of section 148 of the Code. The C' covenants that it will not take or permit any action that would cause the Bonds to be "privat ctivity bonds" as defined in Section 141 of the Code. Section 15. (A) The Council from time to time an t any time may adopt a resolution or resolutions supplemental hereto, which resolution or solutions thereafter shall become a part of this resolution, for any one or more of the folio ing purposes: (1) To add to the cov ants and agreements of the City in this Resolution, other covenants and agreements thereaft to be observed, or to surrender any right or power herein reserved to or conferred upon the rty. (2) To make ch provisions for the purpose of curing any ambiguities or of curing, correcting or supple enting any defective provision contained in this Resolution or in regard to matters or questi ns arising under this Resolution as the Council may deem necessary or desirable and not inc sistent with this Resolution and which shall not adversely affect the interests of the Registe d Owners of the Bonds. Any such s plemental resolution may be adopted without the consent of the Registered Owner of any of e Bonds at any time outstanding, notwithstanding any of the provisions of subsection (B) o this section. (B) ith the consent of the Registered Owners of not less than 60 percent in aggregate principal ount of the Bonds at the time outstanding, the Council may adopt a resolution or resoluti s supplemental hereto for the purpose of adding any provisions to or changing in any mann or eliminating any of the provisions of this Resolution or of any supplemental resolution; pro ded, however, that no such supplemental resolution shall: (1) extend the fixed maturity of any of the Bonds, or reduce the rate of interest thereon, or extend the time of payments of interest from their due date, or reduce the amount of the principal thereof, or reduce any premium payable on the redemption thereof, without the consent of the Registered Owners of each Bond so affected; or CITY OF SEWARD, ALASKA RESOLUTION 2003-75 (2) reduce the aforesaid percentage of Registered Owners Bonds required to approve any such supplemental resolution without the consent of the Re ' tered Owners of all of the Bonds then outstanding. It shall not be necessary for the consent of the Registere wners of the Bonds under this subsection to approve the particular form of any proposed sup emental resolution, but it shall be sufficient if such consent approves the substance thereof. (C) Upon the adoption of any supplemental re lution under this section, this Resolution shall be deemed to be modified and amended in acc dance therewith, and the respective rights, duties and obligations under this Resolution of the ity and all Registered Owners of outstanding Bonds shall thereafter be subject in all respects such modification and amendment, and all the terms and conditions of the supplemental res ution shall be deemed to be part of the terms and conditions of this Resolution for any and al urposes. (D) Bonds executed and deli red after the execution of any supplemental resolution adopted under this section may ar a notation as to any matter provided for in such supplemental resolution, and if ch supplemental resolution shall so provide, new Bonds modified so as to conform, in a opinion of the City, to any modification of this Resolution contained in any such supple tal resolution maybe prepared by the City and delivered without cost to the Registered Owne of the Bonds then outstanding, upon surrender for cancellation of such Bonds in equal aggre to principal amounts. Section 16. De asance. In the event money and/or non-callable direct obligations of, or obligations the time payment of principal of and interest on which are unconditionally guaranteed by, the ited States of America or an agency or instrumentality of the United States of America, matu ng at such times and bearing interest to be earned thereon in amounts sufficient to rede and retire any or all of the Bonds in accordance with their terms are set aside in a special t t account to effect such redemption or retirement and such moneys and the principal of d interest on such obligations are irrevocably set aside and pledged for such purpose, the no further payments need be made to pay or secure the payment of the principal of and interes on such Bonds and such Bonds shall be deemed not to be outstanding. ction 17. Exchange of Bonds; AmendatorX Loan Agreement. The Bonds shall be deliver d to the Bond Bank in exchange for the Refunded Bonds. The City has been advised by the Bond Bank that bond market conditions are fluctuating and that the most favorable market conditions for the sale of the Bond Bank Bonds may not occur on the date of a regular Council meeting. The Council has determined that it would be inconvenient to hold a special meeting on short notice to approve the terms of the Bonds. Therefore, the Council hereby determines that it is in the best interest of the City to delegate the authority to approve the terms of the Bonds as provided herein. Each of the City Manager and the City Finance Director is hereby authorized to CITY OF SEWARD, ALASKA RESOLUTION 2003-75 determine the aggregate principal amount, maturity amounts, inte st rates, yields, dated date, principal and interest payment dates, and redemption terms, if ,for the Bonds, so that such terms of the Bonds conform to the terms of the correspondin and Bank Bonds; provided that (I) the principal amount of each maturity of the Bonds sha not exceed the principal amount of the portion of the corresponding maturity of the Bond Ba Bonds that is allocated to the making of a loan to the City; and (ii) the interest rate on each aturity of the Bonds shall not exceed the interest rate on the corresponding maturity of the B d Bank Bonds. Based upon the foregoing determinations, the City Manager and the City Fi nce Director each is authorized to execute the Amendatory Loan Agreement, in substantially e form presented at this meeting. The authority granted to the City Manager and City Financ Director by this section shall expire 90 days after the effective date of this Resolution. If e City Manager or City Finance Director has not executed the Amendatory Loan Agreem t within 90 from the effective date of this Resolution, the Amendatory Loan Agreement ma not be executed on behalf of the City without further authorization from the Council. Section 18. Official Sta ment. The form of the preliminary Official Statement for the Bond Bank Bonds, in substant' lly the form presented at this meeting, is approved as it pertains to the City and the Bonds. e information in the preliminary Official Statement relating to the City and the Bonds may e modified as the City Manager or City Finance Director may determine. The City Ma ger and City Finance Director each is hereby authorized to approve the form of the final Offic' Statement for the Bond Bank Bonds as it pertains to the City and the Bonds. Section 19 Authority of Officers. The Mayor, the acting Mayor, the City Manager, the acting City Man ger, the City Finance Director, the acting City Finance Director, the City Clerk and the actin ity Clerk are, and each of them hereby is, authorized and directed to do and perform all t ngs and determine all matters not determined by this Resolution, to the end that the City may c out its obligations under the Bonds and this Resolution. 20. Miscellaneous. (A) All payments made by the City of, or on account of, the principal of or interest on the shall be made on the several Bonds ratably and in proportion to the amount due thereon, ively, for principal or interest as the case maybe. (B) No recourse shall be had for the payment of the principal of or the interest on the Bonds or for any claim based thereon or on this Resolution against any member of the Council or officer of the City or any person executing the Bonds. The Bonds are not and shall not be in any way a debt or liability of the State of Alaska or of any political subdivision thereof, except the City, and do not and shall not create or constitute an indebtedness or obligation, either legal, moral or otherwise, of said state or of any political subdivision thereof, except the City. CITY OF SEWARD, ALASKA RESOLUTION 2003-75 Section 21. Continuing Disclosure. The City hereby covenants and agrees that it will comply with and carry out all of the provisions of the Cont' uing Disclosure Certificate that has been presented at this meeting. Notwithstanding any of provision of this Resolution, failure of the City to comply with the Continuing Disclosure C ificate shall not be considered a default of the City's obligations under this Resolution or the nds; however, the beneficial owner of any Bond or Bond Bank Bond may bring an action f specific performance, to cause the City to comply with its obligations under this section. Section 22. Severability. If any one declared by any court of competent jurisdic null and void and shall be deemed sepa b and shall in no way affect the validity o the Section 23. Resolutio 2002 is hereby rescinded in its more of the provisions of this Resolution shall be on to be contrary to law, then such provision shall be le from the remaining provisions of this Resolution other provisions of this Resolution or of the Bonds. Resolution 2002-077 adopted August 12, Section 24. Effectiv~Date. This resolution shall take effect upon adoption by the Seward City Council. / PASSED AND~PROVED by the City Council of the city of Seward, Alaska this 14th day of July, 2003. THE CITY OF SEWARD, ALASKA Stu Clark, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Jean Lewis, City Clerk (City Seal) r-~ ^w