CCR2010048-Promissory Notes
RESOLUTION NO. 048-2010
RESOLUTION RATIFYING EXTRAORDINARY REDEMPTION PROVISIONS WITH
RESPECT TO $2,535,000 TAXABLE GENERAL OBLIGATION PROMISSORY NOTES
(BUILD AMERICA BONDS - DIRECT PAYMENT)
WHEREAS, on April 13, 2010, the Common Council of the City of Muskego, Waukesha
County, Wisconsin (the "City") adopted a resolution entitled: "Resolution Authorizing the
Issuance and Sale of $2,535,000 Taxable General Obligation Promissory Notes (Build America
Bonds - Direct Payment)" (the "Resolution") for the purpose of authorizing the issuance and sale
of the City's $2,535,000 Taxable General Obligation Promissory Notes (Build America Bonds -
Direct Payment) (the "Notes") to raise funds for public purposes, including paying the costs of
sanitary and storm sewer improvements, water main extensions, street improvements and other
projects costs of the City’s Tax Incremental District No. 10;
WHEREAS, the Notes were marketed and sold with an extraordinary redemption
provision which protects the City by giving it the right to redeem the Notes in the event of an
adverse change with respect to the cash subsidy payments expected to be received by the City
with respect to the Notes;
WHEREAS, Section 3 of the Resolution contained the redemption provisions with
respect to the Notes but did not include the extraordinary redemption terms; and
WHEREAS, it is in the best interest of the City to amend the Resolution and ratify the
extraordinary redemption provisions which were used in the marketing and sale of the Notes.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City that:
Section 1. Extraordinary Redemption. The Common Council of the City hereby ratifies
the following extraordinary redemption provisions with respect to the Notes and amends Section
3 of the Resolution and the form of Notes provided for in the Resolution to include such
provisions:
The Notes shall be subject to redemption prior to maturity, in whole or in
part, at the option of the City, on any day, at a redemption price equal to 100% of
the principal amount redeemed plus accrued interest to the date of redemption, in
the event that an Extraordinary Event occurs.
An "Extraordinary Event" will have occurred if either (a) Section 54AA or
6431 of the Code is repealed, amended or modified in a manner which results in a
reduction or elimination of the City's 35% cash subsidy payment from the United
States Treasury or (b) the United States Treasury fails to make a cash subsidy
payment to which the City is entitled and such failure is not caused by any action
or inaction by the City.
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Section 2. Conflicting Resolutions; Severability; Effective Date. All prior resolutions,
rules or other actions of the Common Council or any parts thereof in conflict with the provisions
hereof shall be, and the same are, hereby rescinded insofar as the same may so conflict. In the
event that any one or more provisions hereof shall for any reason be held to be illegal or invalid,
such illegality or invalidity shall not affect any other provisions hereof. The foregoing shall take
effect immediately upon adoption and approval in the manner provided by law.
Adopted, approved and recorded April 27, 2010.
_____________________________
John R. Johnson
Mayor
ATTEST:
____________________________
Janice Moyer
City Clerk (SEAL)
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