1996-06Board Member O'Hanlon introduced
RESOLUTION
1996-6 and moved for passage
BE IT RESOLVED by the members of the Airport Authority of the City of Blair,
Nebraska (the "Authority"):
Section 1. The members of the Authority hereby find and determine:
(a) That the Mayor and Council of the City of Blair have by resolution in 1993
created the Airport Authority of the City of Blair and the Airport Authority now exists
under the Cities Airport Authorities Act and has all the powers described by the
provisions of said Act;
(b) that the taxable valuation of all taxable property in the City of Blair,
Nebraska, except intangible property, is presently not less than $236,220,300;
(c) that the Authority has no outstanding bonds or indebtedness other than the
bonds proposed to be issued by this resolution;
(d) that the maximum yearly levy permitted of 3 1/20 per $100 of taxable
valuation which may be certified by the Authority and income from the operation of the
airport facility after payment of costs of operation and maintenance of the airport facility
will be sufficient to pay principal and interest as the same become due on all the bonds
of the Authority to be outstanding after the issuance of the bonds described in Section 3
below and to provide for the operating expenses of the Authority if not paid from other
sources; and
(e) that all conditions, acts and things required by law for the issuance of the
bonds herein authorized as valid obligations of the Authority do exist and have happened
as required by law.
Section 2. The Authority hereby further finds and determines: That it is necessary and
proper for the Authority to provide funds for the acquisition of land and to pay costs of
improvements, maintenance and repair to the airport and other facilities owned and operated by
the Airport Authority; that for such purposes, it is necessary that the Authority immediately raise
a sum of not less than $550,000 by issuing and selling its negotiable bonds.
Section 3. For the purpose of providing the Authority with the necessary funds for paying
the costs as described in Section 2 hereof, there shall be and there are hereby ordered issued
negotiable bonds of the Authority to be designated "Airport Authority Bonds, Series 1996" (the
"1996 Bonds"), in the aggregate principal amount of Five Hundred Fifty Thousand Dollars
($550,000), with said bonds bearing interest at the rates per annum and maturing on December 1
of each year in the principal amounts as follows:
Principal
Maturing on
Interest
Amount
December 1 of Year
Rate
$15,000
1997
4.00%
15,000
1998
4.25
20,000
1999
4.40
20,000
2000
4.50
20,000
2001
4.60
20,000
2002
4.70
20,000
2003
4.80
25,000
2004
4.90
25,000
2005
5.00
25,000
2006
5.10
25,000
2007
5.20
30,000
2008
5.30
30,000
2009
5.40
30,000
2010
5.50
35,000
2011
5.60
35,000
2012
5.65
35,000
2013
5.70
40,000
2014
5.75
40,000
2015
5.80
45,000
2016
5.80
The 1996 Bonds shall be issued in fully registered form in the denomination of $5,000 or any
integral multiple thereof. The date of original issue for the 1996 Bonds shall be December 1,
1996. Interest on the 1996 Bonds, at the respective rates for each maturity, shall be payable on
December 1, 1997, and semiannually thereafter on June 1 and December 1 of each year (each
of said dates an "Interest Payment Date") and the 1996 Bonds shall bear such interest from the
date of original issue or the most recent Interest Payment Date, whichever is later. The interest
due on each Interest Payment Date shall be payable to the registered owners of record as of the
close of business on the fifteenth day of the month immediately preceding the month in which
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the Interest Payment Date occurs (the "Record Date"), subject to the provisions of Section 5
hereof. The 1996 Bonds shall be numbered from 1 upwards in the order of their issuance. No
1996 Bond shall be issued originally or upon transfer or partial redemption having more than
one principal maturity. The initial bond numbering and principal amounts for each of the 1996
Bonds issued shall be designated by the Authority's Treasurer as directed by the initial purchaser
thereof. Payments of interest due on the 1996 Bonds prior to maturity or earlier redemption shall
be made by the Paying Agent and Registrar, as designated pursuant to Section 4 hereof, by
mailing a check or draft in the amount due for such interest on each Interest Payment Date to
the registered owner of each 1996 Bond, as of the Record Date for each Interest Payment Date,
to such owner's registered address as shown on the books of registration as required to be
maintained in Section 4 hereof. Payments of principal and accrued interest thereon due at
maturity or at any date fixed for redemption prior to maturity shall be made by said Paying
Agent and Registrar to the registered owners upon presentation and surrender of the 1996 Bonds
to said Paying Agent and Registrar. The Authority and the Paying Agent and Registrar may treat
the registered owner of any 1996 Bond as the absolute owner of such 1996 Bond for the purpose
of making payments thereon and for all other purposes and neither the Authority nor the Paying
Agent and Registrar shall be affected by any notice or knowledge to the contrary, whether such
1996 Bond or any installment of interest due thereon shall be overdue or not. All payments on
account of interest or principal made to the registered owner of any 1996 Bond in accordance
with the terms of this Resolution shall be valid and effectual and shall be a discharge of the
Authority and the Paying Agent and Registrar, in respect of the liability upon the 1996 Bonds
or claims for interest to the extent of the sum or sums so paid.
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Section 4. The Treasurer of the Authority is hereby designated as the Paying Agent and
Registrar for the 1996 Bonds. The Paying Agent and Registrar shall keep and maintain for the
Authority books for the registration and transfer of the 1996 Bonds at the office of the Authority.
The names and registered addresses of the registered owner or owners of the 1996 Bonds shall
at all times be recorded in such books. Any 1996 Bond may be transferred pursuant to its
provisions at the office of said Paying Agent and Registrar by surrender of such 1996 Bond for
cancellation, accompanied by a written instrument of transfer, in form satisfactory to said Paying
Agent and Registrar, duly executed by the registered owner in person or by such owner's duly
authorized agent, and thereupon the Paying Agent and Registrar on behalf of the Authority will
deliver at his or her office (or send by registered mail to the transferee owner or owners thereof
at the transferee owner's or owners' risk and expense), registered in the name of the transferee
owner or owners, a new 1996 Bond or 1996 Bonds of the same interest rate, aggregate principal
amount and maturity. To the extent of the denominations authorized for the 1996 Bonds by this
Resolution, one 1996 Bond may be transferred for several such 1996 Bonds of the same interest
rate and maturity, and for a like aggregate principal amount, and several such 1996 Bonds may
be transferred for one or several such 1996 Bonds, respectively, of the same interest rate and
maturity and for a like aggregate principal amount. In every case of transfer of a 1996 Bond,
the surrendered 1996 Bond shall be cancelled and destroyed. All 1996 Bonds issued upon
transfer of the 1996 Bonds so surrendered shall be valid obligations of the Authority evidencing
the same obligations as the 1996 Bonds surrendered and shall be entitled to all the benefits and
protection of this Resolution to the same extent as the 1996 Bonds upon transfer of which they
were delivered. The Authority and said Paying Agent and Registrar shall not be required to
H
transfer any 1996 Bond during any period from any Record Date until its immediately following
Interest Payment Date or to transfer any 1996 Bond called for redemption for a period of 30 days
next preceding the date fixed for redemption.
Section 5. In the event that payments of interest due on the 1996 Bonds on an Interest
Payment Date are not timely made, such interest shall cease to be payable to the registered
owners as of the Record Date for such Interest Payment Date and shall be payable to the
registered owners of the 1996 Bonds as of a special date of record for payment of such defaulted
interest as shall be designated by the Paying Agent and Registrar whenever monies for the
purpose of paying such defaulted interest become available.
Section 6. 1996 Bonds maturing on or after December 1, 2002, shall be subject to
redemption, in whole or in part, prior to maturity at any time on or after December 1, 2001, at
par plus accrued interest on the principal amount redeemed to the date fixed for redemption. The
Authority may select the 1996 Bonds to be redeemed in its sole discretion but the 1996 Bonds
shall be redeemed only in amounts of $5,000 or integral multiples thereof. Any 1996 Bond
redeemed in part only shall be surrendered to said Paying Agent and Registrar in exchange for
a new 1996 Bond evidencing the unredeemed principal thereof. Notice of redemption of any
1996 Bond called for redemption shall be given at the direction of the Authority by said Paying
Agent and Registrar by mail not less than 30 days prior to the date fixed for redemption, first
class, postage prepaid, sent to the registered owner of such 1996 Bond at said owner's registered
address. Such notice shall designate the 1996 Bond or 1996 Bonds to be redeemed by maturity
or otherwise, the date of original issue and the date fixed for redemption and shall state that such
1996 Bond or 1996 Bonds are to be presented for prepayment at the office of said Paying Agent
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and Registrar. In case of any 1996 Bond partially redeemed, such notice shall specify the portion
of the principal amount of such 1996 Bond to be redeemed. No defect in the mailing of notice
for any 1996 Bond shall affect the sufficiency of the proceedings of the Authority designating
the 1996 Bonds called for redemption or the effectiveness of such call for 1996 Bonds for which
notice by mail has been properly given and the Authority shall have the right to direct further
notice of redemption for such 1996 Bond for which defective notice has been given.
Section 7. If the date for payment of the principal of or interest on the 1996 Bonds shall
be a Saturday, Sunday, legal holiday or a day on which banking institutions in the City of Blair
are authorized by law or executive order to close, then the date for such payment shall be the
next succeeding day which is not a Saturday, Sunday, legal holiday or a day on which such
banking institutions are authorized to close, and payment on such day shall have the same force
and effect as if made on the nominal date of Payment .
Section 8. The 1996 Bonds shall be in substantially the following form:
W
UNITED STATES OF AMERICA
STATE OF NEBRASKA
COUNTY OF WASHINGTON
AIRPORT AUTHORITY OF THE CITY OF BLAIR
AIRPORT AUTHORITY BOND
SERIES 1996
No.
Interest Rate Maturity Date Date of Original Issue CUSIP No.
December 1, December 1, 1996
Registered Owner:
Principal Amount:
KNOW ALL PERSONS BY THESE PRESENTS: That the Airport Authority of the City
of Blair, in the County of Washington, in the State of Nebraska, hereby acknowledges itself to
owe and for value received promises to pay to the registered owner specified above, or registered
assigns, the principal amount specified above in lawful money of the United States of America
on the date of maturity specified above with interest thereon to maturity (or earlier redemption)
from the date of original issue or most recent Interest Payment Date, whichever is later, at the
rate per annum specified above, payable on December 1, 1997, and on June 1 and December 1
of each year thereafter (each of said dates an "Interest Payment Date"). Said interest shall be
computed on the basis of a 360-day year consisting of twelve 30-day months. The principal
hereof and unpaid accrued interest hereon due at maturity or earlier redemption are payable upon
presentation and surrender of this bond to the Treasurer of the Authority, as Paying Agent and
Registrar for the Authority, at the offices of the Authority in Blair, Nebraska. Interest on this
bond due prior to maturity or earlier redemption will be paid on each Interest Payment Date by
a check or draft mailed by said Paying Agent and Registrar to the registered owner of this bond,
as shown on the books of record maintained by the Paying Agent and Registrar, at the close of
business on the fifteenth day of the month immediately preceding the month in which the Interest
Payment Date occurs, to such owner's address as shown on such books and records. Any interest
not so timely paid shall cease to be payable to the person entitled thereto as of the record date
such interest was payable, and shall be payable to the person who is the registered owner of this
bond (or of one or more predecessor bonds hereto) on such special record date for payment of
such defaulted interest as shall be fixed by the Paying Agent and Registrar whenever monies for
such purpose become available. For the prompt payment of this bond, principal and interest, as
the same become due, the full faith, credit and resources of said Authority are hereby irrevocably
pledged.
This bond is one of an issue of fully registered bonds of the total principal amount of Five
Hundred Fifty Thousand Dollars ($550,000), of even date and like tenor except as to date of
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maturity, rate of interest and denomination which were issued by the Authority for the purpose
of providing funds for the acquisition of land and to pay costs of improvements, maintenance and
repair to the airport and other facilities owned and operated by the Airport Authority. The
issuance of said bonds has been duly authorized by a Resolution of the Authority duly passed
and adopted in strict compliance with Sections 3-501 to 3-514 R.R.S. Neb. 1943, as amended.
Any or all of the bonds of said issue maturing on or after December 1, 2002, are subject to
redemption at the option of the Authority, in whole or in part, at any time on or after
December 1, 2001, at par plus interest accrued on the principal amount redeemed to the date
fixed for redemption. Notice of redemption shall be given by mail to the registered owner of any
bond to be redeemed at said registered owner's address in the manner specified in the Resolution
authorizing said issue of bonds. Individual bonds may be redeemed in part but only in $5,000
amounts or integral multiples thereof.
This bond is transferable by the registered owner or such owner's attorney duly authorized
in writing at the office of the Paying Agent and Registrar upon surrender and cancellation of said
bond, and thereupon a new bond or bonds of the same aggregate principal amount, interest rate
and maturity will be issued to the transferee as provided in the Resolution authorizing said issue
of bonds, subject to the limitations therein prescribed. The Authority, the Paying Agent and
Registrar and any other person may treat the person in whose name this bond is registered as the
absolute owner hereof for the purpose of receiving payment due hereunder and for all purposes
and shall not be affected by any notice to the contrary, whether this bond be overdue or not.
If the date for payment of the principal of or interest on this bond shall be a Saturday,
Sunday, legal holiday or a day on which banking institutions in the City of Blair, Nebraska are
authorized by law or executive order to close, then the date for such payment shall be the next
succeeding day which is not a Saturday, Sunday, legal holiday or a day on which such banking
institutions are authorized to close, and payment on such day shall have the same force and effect
as if made on the nominal date of payment.
Under the resolution authorizing the bonds of this issue, the revenues, income, receipts,
profits and other monies derived by the Authority from the operation, management and ownership
of its airport facility, including monies derived from the authorized levy of taxes, have been
pledged to the payment of the bonds of this issue.
The Authority covenants and agrees that it will certify annually to the governing body of
the City of Blair, Nebraska, a tax for airport purposes, within the limitations imposed by law,
sufficient in amount to pay the principal and interest on the bonds of this issue as the same fall
due.
The Resolution under which this bond and the other bonds of this issue are authorized
constitutes a contract between the Authority and the registered owners of said bonds which
cannot be altered or changed without the written consent of the registered owners of seventy-five
percent (75%) in principal amount of the bonds of this issue then outstanding.
This bond shall constitute a general obligation of the Authority and shall not be a debt
of the State of Nebraska or the City of Blair and neither the State of Nebraska nor the City of
Blair shall be liable thereon.
IT IS HEREBY CERTIFIED AND WARRANTED that all conditions, acts and things
required by law to exist or to be done precedent to and in the issuance of this bond did exist, did
happen and were done and performed in regular and due form and time as required by law.
This bond shall not be valid and binding on the Authority until authenticated by the
Paying Agent and Registrar.
IN WITNESS WHEREOF the Authority has caused this bond to be executed on behalf
of the Authority with the manual or facsimile signatures of the Chairman and Secretary of the
Authority and by causing the official seal of the Authority to be imprinted or impressed hereon,
all as of the date of original issue specified above.
ATTEST
Secretary
(SEAL)
AIRPORT AUTHORITY OF THE
CITY OF BLAIR, NEBRASKA
Chairman
Certificate of Authentication
This bond is authorized by Resolution of the Airport Authority of the City of Blair, in the
County of Washington, in the State of Nebraska as described in the foregoing bond.
Treasurer, Airport Authority of City of Blair
Paying Agent and Registrar
no
For value received
sells, assigns and transfers unto
(Form of Assignment)
(Social Security or Taxpayer I.D. No.
the within bond and hereby irrevocably constitutes and appoints
, attorney, to transfer the
same on the books of registration in the office of the within mentioned Paying Agent and
Registrar with full power of substitution in the premises.
hereby
Dated:
Registered Owner(s)
Signature Guaranteed
Authorized Officer
Note: The signature(s) on this assignment MUST CORRESPOND with the name(s) as
written on the face of the within bond in every particular, without alteration, enlargement or any
change whatsoever and must be guaranteed by a commercial bank or a trust company or by a
firm having membership on the New York, Midwest or other stock exchange.
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Section 9. Each of the 1996 Bonds shall be executed on behalf of the Authority with the
manual or facsimile signatures of the Chairman and the Secretary and shall have imprinted or
impressed thereon the Authority's seal. The 1996 Bonds shall be issued initially as
"book -entry -only" bonds under the services of The Depository Trust Company (the "Depository"),
with one typewritten bond per maturity being issued to the Depository. In such connection said
officers are authorized to execute and deliver a Letter of Representations (the "Letter of
Representations") in the form required by the Depository, for and on behalf of the Authority, which
shall thereafter govern matters with respect to registration, transfer, payment and redemption of the
1996 Bonds. With respect to the issuance of the 1996 Bonds as "book -entry -only" bonds, the
following provisions shall apply:
(a) The Authority and the Paying Agent and Registrar shall have no responsibility
or obligation to any broker -dealer, bank or other financial institution for which the
Depository holds 1996 Bonds as securities depository (each, a "Bond Participant") or to any
person who is an actual purchaser of a 1996 Bond from a Bond Participant while the 1996
Bonds are in book -entry form (each, a "Beneficial Owner") with respect to the following:
(i) the accuracy of the records of the Depository, any nominees of the
Depository or any Bond Participant with respect to any ownership interest in
the 1996 Bonds,
(ii) the delivery to any Bond Participant, any Beneficial Owner or
any other person, other than the Depository, of any notice with respect to the
1996 Bonds, including any notice of redemption, or
(iii) the payment to any Bond Participant, any Beneficial Owner or
any other person, other than the Depository, of any amount with respect to
the 1996 Bonds. The Paying Agent and Registrar shall make payments with
respect to the 1996 Bonds only to or upon the order of the Depository or its
nominee, and all such payments shall be valid and effective fully to satisfy
and discharge the obligations with respect to such 1996 Bonds to the extent
of the sum or sums so paid. No person other than the Depository shall
receive an authenticated Bond.
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(b) Upon receipt by the Paying Agent and Registrar of written notice from the
Depository to the effect that the Depository is unable or unwilling to discharge its
responsibilities, the Paying Agent and Registrar shall issue, transfer and exchange 1996
Bonds requested by the Depository in appropriate amounts. Whenever the Depository
requests the Paying Agent and Registrar to do so, the Paying Agent and Registrar will
cooperate with the Depository in taking appropriate action after reasonable notice (i) to
arrange, with the prior written consent of the Authority, for a substitute depository willing
and able upon reasonable and customary terms to maintain custody of the 1996 Bonds or (ii)
to make available 1996 Bonds registered in whatever name or names as the Beneficial
Owners transferring or exchanging such 1996 Bonds shall designate.
(c) If the Authority determines that it is desirable that certificates representing the
1996 Bonds be delivered to the ultimate beneficial owners of the 1996 Bonds and so notifies
the Paying Agent and Registrar in writing, the Paying Agent and Registrar shall so notify the
Depository, whereupon the Depository will notify the Bond Participants of the availability
through the Depository of bond certificates representing the 1996 Bonds. In such event, the
Paying Agent and Registrar shall issue, transfer and exchange bond certificates representing
the 1996 Bonds as requested by the Depository in appropriate amounts and in authorized
denominations.
(d) Notwithstanding any other provision of this Resolution to the contrary, so long
as any 1996 Bond is registered in the name of the Depository or any nominee thereof, all
payments with respect to such 1996 Bond and all notices with respect to such 1996 Bond
shall be made and given, respectively, to the Depository as provided in the Letter of
Representations.
(e) Registered ownership of the 1996 Bonds may be transferred on the books of
registration maintained by the Paying Agent and Registrar, and the 1996 Bonds may be
delivered in physical form to the following:
(i) any successor securities depository or its nominee;
(ii) any person, upon (A) the resignation of the Depository from its
functions as depository or (B) termination of the use of the Depository
pursuant to this Section.
If for any reason the Depository resigns and is not replaced, the Authority shall immediately
provide a supply of printed bond certificates for issuance upon the transfers from the Depository and
subsequent transfers or in the event of partial redemption. In the event that such supply of bond
certificates shall be insufficient to meet the requirements of the Paying Agent and Registrar for
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issuance of replacement 1996 Bonds upon transfer or partial redemption, the Authority agrees to
order printed an additional supply of bond certificates and to direct their execution by manual
or facsimile signatures of its then duly qualified and acting Chairman and Secretary and by
imprinting or impressing thereon the Authority's seal. In case any officer whose signature or
facsimile thereof shall appear on any 1996 Bond shall cease to be such officer before the delivery
of such 1996 Bond (including 1996 Bonds delivered to the Paying Agent and Registrar for
issuance upon transfer or partial redemption), such signature or such facsimile signature shall
nevertheless be valid and sufficient for all purposes the same as if such officer or officers had
remained in office until the delivery of such 1996 Bond, The 1996 Bonds shall not be valid and
binding on the Authority until authenticated by the Paying Agent and Registrar. The Treasurer
shall cause the 1996 Bonds to be registered in the office of the Auditor of Public Accounts of
the State of Nebraska. Thereafter the 1996 Bonds shall be delivered to the Paying Agent and
Registrar for registration and authentication. Upon execution, registration, and authentication of
the 1996 Bonds, they shall be delivered to the Treasurer, who is authorized to deliver them to
Chiles Heider Division, Smith Barney Inc., as initial purchaser thereof, upon receipt of 97.825%
of the principal amount of the 1996 Bonds plus accrued interest thereon to date of payment for
the 1996 Bonds. Said initial purchaser shall have the right to direct the registration of the 1996
Bonds and the denominations thereof within each maturity, subject to the restrictions of this
Resolution.
Section 10. The proceeds of the 1996 Bonds herein authorized shall be applied to the
costs described in Section 2 hereof. Funds not initially required for such costs may be invested
in permissible investments of cities of the first class. All such proceeds and funds shall be
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applied upon order of the members of the Authority.
Section 11. The Secretary shall make and certify duplicate transcripts of the proceedings
of the Airport Authority with respect to the 1996 Bonds herein authorized, one of which shall
be filed with the Auditor of Public Accounts and the other of which shall be delivered to the
initial purchaser.
Section 12. So long as the 1996 Bonds herein authorized or any additional bonds as
hereinafter permitted to be authorized are outstanding and unpaid, the Authority agrees to certify
annually to the governing body of the City of Blair, Nebraska, a tax for airport purposes, subject
to the statutory limitation set forth in Section 3-505(12) R.R.S. Neb. 1943, as amended, on the
taxable valuation of all taxable property in such City sufficient in amount to pay the principal
and interest on the 1996 Bonds and any such additional bonds as the same fall due and further
covenants and agrees that it will establish, maintain and collect fees, rents and other charges for
the use and occupancy of its airport facility and for all services, facilities and commodities sold,
furnished or supplied from said airport facility which, together with the proceeds of such levy
described above shall be in the aggregate sufficient to provide for the maintenance, operation and
repair of the airport facility and for the payment of interest on and principal of the 1996 Bonds
herein authorized and any such additional bonds as the same become due. There is hereby
ordered established with the Treasurer of the Authority a special fund to be designated as the
"Airport Authority Bond Payment Fund" (herein referred to as the 'Bond Payment Fund") in
order to provide for the payments of principal and interest on the 1996 Bonds. The Authority
hereby covenants and agrees that in each month monies received by the Authority from the levy
of taxes permitted to be certified under the terms of Section 3-504(12), R.R.S. Neb. 1943, as
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amended, there shall be deposited to the Bond Payment Fund until the Bond Payment Fund has
deposited therein an amount not less than the amount of principal and interest falling due on the
1996 Bonds and any additional bonds as herein authorized, all as outstanding from time to time,
during the next twelve months. As and to the extent that the Bond Payment Fund has deposited
thereto said amount, receipts from said levy may be commingled with other funds of the
Authority and applied to the payment of expenditures related to its other corporate purposes.
Monies held in the Bond Payment Fund shall be held exclusively for payment of principal and
interest on the 1996 Bonds and any additional bonds, as outstanding from time to time. The
Airport Authority will punctually perform all duties with reference to the 1996 Bonds required
by the Constitution and laws of the State of Nebraska and this Resolution, including the making
and collecting of sufficient charges for the use of said airport facility.
Section 13. The Authority hereby pledges and hypothecates all revenues, income,
receipts, profits and other monies derived from and to be derived from the operation of its airport
facility and from the levy of taxes required to be certified by Section 12 of this Resolution and
the income from any additions and improvements to said airport facility for payment of the 1996
Bonds herein authorized, both principal and interest. The Authority agrees that all revenues,
income, receipts, profits and other monies of the Authority from whatever source derived,
including tax revenues, shall be paid to the Treasurer of the Authority who shall not commingle
such money with any other money under his control.
Section 14. The Authority hereby covenants and agrees that so long as any of the 1996
Bonds remain outstanding and unpaid, the Authority shall not issue any additional bonds or other
obligations payable out of the revenues, income, receipts, profits and other monies derived from
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the airport facility and the levy of taxes as described in Section 12 of this Resolution, or any part
of any of the foregoing, which are superior to the 1996 Bonds herein authorized. The Authority,
however, shall have the right to issue additional bonds on a parity or equality with the 1996
Bonds provided the following conditions are met:
(a) Any defaults on bonds issued under this Resolution have been made good:
(b) Additional bonds of equal standing to the 1996 Bonds may be issued so long
as the Resolution under which the additional bonds are issued requires the Authority to
certify annually to the governing body of the City of Blair, Nebraska a tax for airport
purposes for deposit to the Bond Payment Fund sufficient in amount to pay the principal
and interest on the 1996 Bonds then outstanding and the proposed additional bonds to be
issued as the same fall due.
Additional bonds of the Airport Authority issued in conformity with the conditions set
forth shall stand on a parity with the 1996 Bonds and the Authority may make equal provisions
for the payment of said bonds and the interest thereon out of the funds of the Airport and may
also provide for the creation of reasonable reserves with respect thereto. The term "additional
bonds" as used in this Resolution shall mean only those bonds of equal lien to the 1996 Bonds
which are authorized as permitted in this Section 14. Nothing contained in this Section 14 shall
be construed as prohibiting the issuance by the Authority of bonds or notes which are subordinate
to the 1996 Bonds and any additional bonds, the principal and interest of which may be payable
from monies other than monies required to be deposited to the Bond Payment Fund, nor shall it
prevent the Authority from issuing refunding bonds which will take up and pay off in full the
1996 Bonds or any part thereof or any such additional bonds or any part thereof.
Section 15. The Authority hereby agrees that in the event that collections of tax levy
monies permitted to be certified by the Authority are insufficient to satisfy the requirements of
the 1996 Bonds issued hereunder, the Authority will establish, maintain and collect fees, rents
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and other charges for the use and occupancy of the airport facility operated by it for all services,
facilities and commodities sold, furnished or supplied from said airport facility, which, together
with the proceeds of the maximum levy permitted to be certified shall be in the aggregate,
sufficient to provide for the maintenance, operation and repair of said airport facility and for the
payment of interest on and principal of the 1996 Bonds issued hereunder, provided, however, that
the Authority reserves the right to pay principal on the bonds of this issue by the issuance of
refunding bonds as described herein.
Section 16. No amendment shall be made to this Resolution nor to any rights of the
registered owners of the 1996 Bonds which in any way would be prejudicial to the rights of the
registered owners of the 1996 Bonds without first obtaining the written consent of the registered
owners of not less than seventy-five percent (75%) in principal amount of said 1996 Bonds then
outstanding under this Resolution. The provisions of this Resolution, including the covenants and
agreements herein contained, shall constitute a contract by and between the Authority and the
registered owners of the 1996 Bonds and the registered owner of any one or more of the 1996
Bonds shall have the right for the equal benefit and protection of all registered owners of such
1996 Bonds to take any action permitted by law to enforce the provisions of this Resolution and
the payment of the outstanding 1996 Bonds.
Section 17. The Authority further covenants and agrees with each of the purchasers and
registered owners of the 1996 Bonds that so long as said 1996 Bonds remain outstanding and
unpaid the Authority will operate and maintain the airport facility operated by it in an efficient
manner and at a reasonable cost and in good repair; that the Authority will carry the customary
usual insurance on airport facilities of the kind maintained and in the amounts normally carried
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by other similar airports, such insurance to include but not be limited to worker's compensation,
public liability, tornado and fire insurance and flood insurance, if available at reasonable rates,
and in the event of loss, the proceeds of such insurance shall be used in reconstructing or
replacing the property damaged or destroyed with any surplus remaining available for general
corporate purposes of the Authority so long as payment of the 1996 Bonds has been fully
provided for as to payments falling due within the year in which such surplus monies become
available.
Section 18, The Treasurer of the Airport Authority and the Secretary of the Authority and
any other official or employee of the Authority having custody of the funds described and
referred to in this Resolution shall be bonded, in addition to their regular official bonds, in
amounts sufficient to cover at all times the amount of funds of the Authority held by them and
the cost of premiums for obtaining such bonds may be paid as an ordinary operating expense of
the Authority.
Section 19. The Authority is hereby authorized and directed to keep proper books,
records and accounts in which complete correct entries shall be made of all transactions relating
to the tax levy funds described herein and the funds of the airport facility. The Authority further
agrees that it will within 90 days following the close of each fiscal year cause an audit of its
books and records to be made by a certified public accountant showing receipts and
disbursements for all accounts of the Authority and such audit will be furnished to the initial
purchaser of the 1996 Bonds, and, upon request, to any registered owner of twenty-five percent
(25%) or more in principal amount of the 1996 Bonds within 120 days after the close of the
fiscal year, and will be available for inspection by the registered owner of said 1996 Bonds. Any
registered owner or owners of twenty-five percent (25%) or more in aggregate principal amount
of the 1996 Bonds then outstanding shall have the right at all reasonable times to inspect the
airport facility and all records, accounts and data of the Airport Authority relating thereto.
Section 20. The Authority hereby covenants and agrees that while any of the 1996 Bonds
are outstanding that the Airport Authority will not grant any franchise or right to any person, firm
or corporation to own or operate an airport facility in competition with that owned by the
Authority.
Section 21. The Authority hereby covenants with the purchasers and registered owners
of the 1996 Bonds that it will make no use of the proceeds of said issue, including monies held
in any sinking fund for the payment of principal and interest on said bonds, which would cause
said bonds to be arbitrage bonds within the meaning of Sections 103(b) and 148 of the Internal
Revenue Code of 1986, as amended (the "Code"), and further covenants to comply with said
Sections 103(b) and 148 and all applicable regulations thereunder throughout the term of said
bond issue. The Authority hereby covenants and agrees to take all actions necessary under the
Code to maintain the tax exempt status (as to taxpayers generally) of interest payable on the 1996
Bonds. The Authority hereby designates the 1996 Bonds as its "qualified tax-exempt obligations"
pursuant to Section 265(b)(3)(B)(i)(III) of the Code and covenants and warrants that it does not
reasonably expect to issue bonds or other obligations aggregating in principal amount more than
$10,000,000 during calendar 1996. The Authority agrees to take all further actions, if any,
necessary on its part to qualify the 1996 Bonds as such "qualified tax-exempt obligations."
Section 22. The Authority's obligations under this Resolution and the liens, pledges,
covenants and agreements of the Authority herein made or provided for with respect to any or
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all of the 1996 Bonds shall be fully discharged and satisfied as to any or all of such 1996 Bonds
and any such 1996 Bond shall no longer be deemed to be outstanding hereunder if such 1996
Bond has been purchased by the Authority and cancelled or when the payment of the principal
of and interest thereon to the respective date of maturity or redemption (a) shall have been made
or caused to be made in accordance with the terms thereof or (b) shall have been provided for
by depositing with a national or state bank having trust powers, or trust company, in trust, solely
for such payment (i) sufficient money to make such payment or (ii) direct general obligations of
or obligations the principal and interest of which are unconditionally guaranteed by the United
States of America (herein referred to as "U.S. Government Obligations") in such amount and
bearing interest and maturing or redeemable at stated fixed prices at the option of the holder as
to principal, at such time or times, as will ensure the availability of sufficient money to make
such payments; provided, however, that with respect to any 1996 Bond to be paid prior to
maturity, the Authority shall have duly called such 1996 Bond for redemption and given notice
of such redemption as provided by law or made irrevocable provision for the giving of such
notice. Any money so deposited with such bank or trust company may be invested or reinvested
in U.S. Government Obligations at the direction of the Authority, and all interest and income
from U.S. Government Obligations in the hands of such bank or trust company in excess of the
amount required to pay principal of and interest on the 1996 Bonds for which such monies or
U.S. Government Obligations were deposited shall be paid over to the Authority as and when
collected.
Section 23. The Preliminary Official Statement dated November 19, 1996, is hereby
approved and the Chairman and Secretary are hereby authorized to approve on behalf of the
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Authority a final Official Statement with any changes deemed appropriate by them.
Section 24. If any section or sections or any parts of any section or sections of this
Resolution are for any reason held to be invalid or unconstitutional, the validity of the remainder
of said Resolution shall not be affected thereby.
Section 25. All Resolutions or orders or parts thereof in conflict with the provisions of
this Resolution are to the extent of such conflict hereby repealed.
Section 26. This Resolution shall be in full force and effect from and after its passage
as provided by law.
ADOPTED this 19 t h day of November , 1996.
Chair an
Secretary
The foregoing Resolution having been read, Member H a v P k n -,t seconded
the motion for its passage and adoption and after consideration, roll was called on the passage
and adoption of said Resolution and the following members voted "AYE": H a v P k n c t ,
Meyer , 0' Han] on and Van S l y k e. The following members voted "NAY":
N o n e . More than the majority of all members of the
Authority were in favor of the Resolution and the same was declared adopted.
C_y6At, I,- � -t_
Secretary
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