10118-11 Authorizing Sewage Works Revenue Bonds

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SECTION 8. Sale of Bonds. (a) The Controller is hereby authorized and directed to have the 2011 Bonds prepared, and the Mayor, Controller and the Clerk are hereby authorized and directed to execute the 2011 Bonds in substantially the form and the manner herein provided. (b) The 2011 Bonds shall be sold in a competitive sale. The Controller shall cause to be published either (i) a notice of sale once each week for two consecutive weeks in accordance with I.C.§5-3-1-2, in which case the date fixed for the sale shall not be earlier than fifteen (15) days after the first of such publications and not earlier than three (3) days after the second of such publications, or (ii) a notice of intent to sell bonds once each week for two weeks in accordance with I.C. §5-1-11-2 and I.C. §5-3-1-4 and in a newspaper of general circulation published in the State capital. Said sale notice shall state the time and place of sale, the purpose for which the 2011 Bonds are being issued, the total amount thereof, the amount and date of each . maturity, the maximum rate or rates of interest thereon, their denominations, the time and place of payment, the terms and conditions upon which bids will be received and the sale made and such other information as is required by law or as the Controller shall deem necessary. The Controller is designated as the officer responsible for the sale of the 2011 Bonds, and shall provide or cause to be provided all notices required by law. All bids for the 2011 Bonds shall be presented to the Controller in accord with the terms set forth in the sale notice. Bidders for the 2011 Bonds shall be required to name the rate or rates of interest which the 2011 Bonds are to bear, which shall be the same for all 2011 Bonds maturing on the same date and the interest rate bid on any maturity of 2011 Bonds must be no less than the interest rate bid on any and all prior maturities, not exceeding eight percent (8%) per annum, and such interest rate or rates shall be in multiples of one-one hundredth (1/100) of one percent (1%). The Controller shall award the 2011 Bonds to the bidder who offers the lowest interest cost, to be determined by computing the total interest on all the 2011 Bonds to their maturities and deducting therefrom the premium bid, if any, or adding thereto the amount of the discount, if any. No bid for less than nine percent (99%) of the par value of the 2011 Bonds, plus accrued interest, shall be considered. The Controller may require that the successful bidder provide to the City a good faith deposit in the form of cash, certified or cashier's checks payable to the order of the City, or wire transfer (as instructed by the City) (the "Deposit"), in an amount not to exceed one percent (1%) of the aggregate principal amount of the 2011 Bonds as a guaranty of the performance of said bid. The successful bidder shall be required to submit to the City the Deposit not later than 3:30 p.m. (local time) on the next business day following the award. In the event the successful bidder shall fail or refuse to accept delivery of the 2011 Bonds and pay for the same as soon as the 2011 Bonds are ready for delivery or at the time fixed in the notice of sale, then such Deposit and the proceeds thereof shall be tlie property of the City and shall be considered as its liquidated damages on account of such default. In the event no satisfactory bids are received on the day named in the sale notice, the sale may be continued from day to day thereafter for a period of thirty (30) days without readvertisement; provided; however, that if said sale is continued, no bid shall be accepted which offers an interest cost which is equal to or higher than the best bid received at the time fixed for sale in the bond sale notice. The Controller shall have full right to reject any and all bids. The opinion of bond counsel to the City approving the legality of the 2011 Bonds will be furnished to the purchaser at the expense of the City. - 10 -