9712-06 Authorizing the Issuance and Sale of CED Income Tax Rev Bonds to Previously issued and current Outstanding CED Bonds

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aggregate principal amount not to exceed Four Million Six Hundred Thousand Dollars ($4,600,000) and (ii) the Series B Refunding Bonds in an aggregate principal amount not to exceed Four Million One Hundred Thousand Dollars ($4,100,000). The Refunding Bonds shall be issued in fully registered form in denominations of Five Thousand Dollars ($5,000) or integral multiples thereof not exceeding the aggregate principal amount of Refunding Bonds maturing in any one year (or any other denomination acceptable to the underwriter of the Refunding Bonds). The Series A Refunding Bonds shall be numbered consecutively from 06AR-1 upwards and the Series B Refunding Bonds shall be numbered from 06BR-1 upwards. The Refunding Bonds shall bear interest at a rate or rates not to exceed eight percent (8.0%) per annum (the exact rate or rates to be determined by negotiation, as further described herein). The interest on the Refunding Bonds shall be payable semiannually on August 1 and February 1 of each year, commencing not earlier than February 1, 2007, or such later date as provided in the bond purchase agreement to be entered into between the City and the underwriter of the Refunding Bonds (the "Purchase Agreement"). Interest shall be calculated on the basis of twelve (12) thirty (30)-day months for a three hundred sixty (360)-day year. The Refunding Bonds shall mature and be payable semiannually on February 1 and August 1 of each year, beginning not earlier than February 1, 2007, and ending not later than February 1, 2017. The final aggregate principal amounts of the Refunding Bonds, the final principal maturity schedule for the Refunding Bonds, and the interest rates for each such maturity shall be specified in the Purchase Agreement. Unless otherwise specified in the Purchase Agreement, the Refunding Bonds shall not be subject to optional redemption prior to maturity. If any Refunding Bonds are subject to optional redemption prior to maturity, the dates, premium, if any, and other terms governing such redemption shall be specified in the Purchase Agreement. If any Refunding Bonds are subject to optional redemption, official notice of any such redemption shall be mailed by the Registrar and Paying Agent (as hereinafter defined) by certified or registered mail at least thirty (30) days and not more than sixty (60) days prior to the scheduled redemption date to each of the registered owners of the Refunding Bonds (or any portion thereof) called for redemption (unless waived by any such registered owner) at the address shown on the registration books of the Registrar and Paying Agent, or at such other address as is furnished in writing by such registered owner to the Registrar; provided, however, that failure to give such notice by mailing, or any defect therein, with respect to any Refunding Bond shall not affect the validity of the proceedings for the redemption of any other Refunding Bonds. The notice shall specify the redemption price, the date and place of redemption, and the registration numbers (and, in case of partial redemption, the respective principal amounts) of the Refunding Bonds called for redemption. The place of redemption may be at the principal corporate trust office of the Registrar and Paying Agent or as otherwise determined by the City. Interest on the Refunding Bonds (or portions thereof) so called for redemption shall cease to accrue on the redemption date fixed in such notice if sufficient funds are available at the place of redemption to pay the redemption price on the redemption date and when such Refunding Bonds (or portions thereof) are presented for payment. Any Refunding Bond redeemed in part maybe exchanged for a Refunding Bond or Refunding Bonds of the same maturity in authorized denominations equal to the remaining principal amount thereof. BDDBOI 4539793v1 -3-