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HomeMy WebLinkAbout911454.tiff B021931.i.'PF) 12/09/91 RESOLUTION RE: AUTHORIZING THE ISSUANCE OF THE COUNTY'S TAX ANTICIPATION NOTES, SERIES 1992A, IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $4,650, 000; PROVIDING FOR THE DATE, INTEREST RATE, MATURITY DATE AND SOURCE AND MANNER OF PAYMENT OF THE NOTES; AUTHORIZING THE PROPER OFFICERS OF THE COUNTY TO EXECUTE AND DELIVER THE NOTES AND OTHER DOCUMENTS; PRESCRIBING THE FORM OF THE NOTES; AND REPEALING INCONSISTENT RESOLUTIONS. WHEREAS, the Board of County Commissioners (the Board) of Weld County, Colorado (the County) , pursuant to Colorado statute and the County Home Rule Charter, is vested with the authority of administering the affairs of the County; and WHEREAS, the County anticipates receiving ad valorem taxes on real or personal property (Taxes) and other revenues during the fiscal year ending December 31, 1992 (the Current Fiscal Year) , which will be credited to the general fund (the General Fund) of the County; and WHEREAS, the County has estimated the anticipated Taxes and other revenues to be credited to the General Fund and the budgeted expenditures to be made from the General Fund in the Current Fiscal Year and has concluded that the Taxes will not be received in time to pay the County's projected budgeted expenses in the Current Fiscal Year; and WHEREAS, the County is authorized by the provisions of the Tax Anticipation Note Act, part 1 of article 15 of title 29, Colorado Revised Statutes, as amended (the Act) , to issue tax anticipation notes by resolution (this Resolution) in an amount not to exceed fifty percent (50%) of all Taxes estimated by the County to be received in the Current Fiscal Year; and WHEREAS, Piper, Jaffray & Hopwood, Incorporated, Denver, Colorado (the Purchaser) , has offered to purchase such notes on terms favorable to the County, and forms of the Note Purchase Agreement dated the date of execution (the Note Purchase Agreement) between the County and the Purchaser and the Letter of Representations dated the date of execution (the Letter of Representations) have been filed with the Clerk to the Board. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, as follows: Section 1. The Board hereby determines that the Taxes will not be received in time to pay the County's projected -room (j 1 i154 Page 2 RE: TAX ANTICIPATION NOTES, SERIES 1992A budgeted expenses of the General Fund in the Current Fiscal Year. For the purpose of paying such expenses the County hereby authorizes the issuance of its negotiable registered Tax Anticipation Notes, Series 1992A, in an aggregate principal amount not to exceed $4, 650, 000 (the Notes) , payable from Taxes, investment proceeds on Taxes, and proceeds of the Notes to the extent not required for the payment of duly budgeted current expenses of the General Fund, received by the County in the Current Fiscal Year and credited to the General Fund after the issuance of the Notes. The Board hereby determines that the aggregate principal amount of the Notes and all other tax anticipation notes issued by the County during the Current Fiscal Year does not exceed fifty percent (50%) of the Taxes estimated to be received by the County in the Current Fiscal Year as shown by the County's budget for the Current Fiscal Year. Section 2 . The Notes shall be issued in registered book-entry form, shall initially be registered in the name of Cede & Co. as nominee of The Depository Trust Company, as securities depository (the Securities Depository) , shall be in such denominations as may be determined by the Finance Director or his designee, shall be registered as to principal and interest without coupons, shall be dated the date of their delivery but in no event earlier than January 1, 1992, shall bear interest payable at maturity at such rate as may be determined by the Finance Director or his designee not to exceed seven and fifty hundredths percent (7.50%) per annum, shall not be subject to redemption in whole or in part at any time prior to their maturity date, shall mature on such date as may be determined by the Finance Director or his designee but not later than December 31, 1992 . Section 3 . The Notes shall be executed by the Chairman of the Board, shall bear the seal of the County, and shall be attested by the Clerk to the Board. The Chairman of the Board and the Clerk to the Board are hereby authorized and directed to date, execute and deliver the Notes, and the appropriate officers of the County are hereby authorized and directed to date, execute and deliver such other documents, including, without limitation, the Note Purchase Agreement, the Letter of Representations, closing documents and certificates, and to take such other action as may be necessary or appropriate in order to effectuate the issuance and sale of the Notes, all in accordance with this Resolution and the Act. Section 4 . The principal of and interest on the Notes shall be payable upon presentation and surrender thereof to the County Treasurer, as paying agent (the Paying Agent) , either by check or draft mailed to the registered owner of the Notes or by wire transfer to such bank or other depository as the registered owner shall designate. So long as the registered owner is the Securities Depository or a nominee thereof, the Securities BD21931.A(PF) 2 12/16/91 Page 3 RE: TAX ANTICIPATION NOTES, SERIES 1992A Depository shall disburse any payments received, through its participants or otherwise, to the beneficial owners of the Notes. Neither the County nor the Paying Agent has any responsibility or obligation for the payment to any participant, beneficial owner or other person (except the registered owner) of the principal of or interest on the Notes. Section 5. The Notes shall be registered with the Clerk to the Board, as registrar (the Registrar) , in the name of the registered owner, and the principal of and interest on the Notes shall be payable only to such registered owner. The County and the Registrar have no responsibility or obligation with respect to the accuracy of the records of the Securities Depository or a nominee thereof or any participant with respect to any ownership interest in the Notes or the delivery to any participant, beneficial owner or other person (except the registered owner) of any notice with respect to the Notes. Section 6. The Notes shall be transferable only upon the books of the County by the Clerk to the Board, as transfer agent. Section 7. The County may remove the Securities Depository and the Securities Depository may resign by giving sixty (60) days' written notice to the other of such removal or resignation. Additionally, the Securities Depository shall be removed sixty (60) days after receipt by the County of written notice from the Securities Depository to the effect that the Securities Depository has received written notice from participants having interests, as shown in the records of the Securities Depository, in an aggregate principal amount of not less than fifty percent (50%) of the aggregate principal amount of the then outstanding Notes to the effect that the Securities Depository is unable or unwilling to discharge its responsibilities or that a continuation of the requirement that all of the outstanding Notes be registered in the name of the Securities Depository or a nominee thereof is not in the best interests of the beneficial owners. Upon the removal or resignation of the Securities Depository, the Securities Depository shall take such action as may be necessary to assure the orderly transfer of the computerized book-entry system with respect to the Notes to a successor securities depository or, if no successor securities depository is appointed as herein provided, the transfer of the Notes in certificate form to the beneficial owners of the Notes or their designees. Upon the giving of notice by the County of the removal of the Securities Depository, the giving of notice by the Securities Depository of its resignation or the receipt by the County of notice with respect to the written notice of participants referred to herein, the County may, within sixty (60) days after the giving of such notice, appoint a successor securities depository upon such terms and conditions as the County shall impose. Any such successor 3 oil 1 lr,• r^A Page 4 RE: TAX ANTICIPATION NOTES, SERIES 1992A securities depository must at all times be a registered clearing agency under the Securities and Exchange Act of 1934, as amended, or other applicable statute or regulation and in good standing thereunder. If the County fails to appoint a successor securities depository within such time period, the Notes shall no longer be restricted to being registered in the name of the Securities Depository or a nominee thereof, but may be registered in whatever name or name owners transferring or exchanging Notes shall designate. Section 8 . The Notes shall be in substantially the following form: 4 Page 5 RE: TAX ANTICIPATION NOTES, SERIES 1992A [Form of Note] UNITED STATES OF AMERICA STATE OF COLORADO COUNTY OF WELD TAX ANTICIPATION NOTE SERIES 1992A No. R-1 CUSIP: $ Original Date 4aturity Date Interest Rate Interest Amount January _, 1992 December 31, 1992 $ $ REGISTERED OWNER: Cede & Co. PRINCIPAL SUM: Weld County, Colorado (the County) , for value received, hereby promises to pay to the Registered Owner (specified above) from ad valorem taxes on real and personal property, investment proceeds on such taxes, and proceeds of the notes of this issue to the extent not required for the payment of duly budgeted current expenses, received by the County in the fiscal year ending December 31, 1992, and credited to the general fund after the issuance hereof, on the Maturity Date (specified above) , the Principal Sum (specified above) together with interest thereon from the Original Date (specified above) to the Maturity Date hereof at the per annum Interest Rate (specified above) , based upon the actual number of days elapsed in a month of 30 days and a year of 360 days, the amount of said interest being the Interest Amount (specified above) . This Note is issued by the Board of County Commissioners of the County, on behalf of the County, in accordance with part 1 of article 15 of title 29, Colorado Revised Statutes, as amended (the Act) , and pursuant to a Resolution (the Resolution) of the Board of County Commissioners of the County duly adopted prior to the issuance hereof in order to pay duly budgeted current expenses of the general fund of the County. Reference is hereby made to the Act and the Resolution for a complete statement of the rights and limitations of rights of the registered owner of this Note, to all of which the registered owner hereof by acceptance of this Note assents. This Note is not subject to redemption in whole or in part at any time prior to the Maturity Date. 5 el117 Page 6 RE: TAX ANTICIPATION NOTES, SERIES 1992A The principal of and interest on this Note are payable upon presentation and surrender hereof at the office of the County Treasurer, as paying agent (the Paying Agent) , either by check or draft mailed to the Registered Owner or by wire transfer to such bank or other depository as the Registered Owner shall designate. So long as the Registered Owner is a securities depository or a nominee thereof, the Registered Owner is to disburse any payments received, through its participants or otherwise, to the beneficial owners of this Note. Neither the County nor the Paying Agent has any responsibility or obligation for the payment to any participant, beneficial owner or other person (except the Registered Owner) of the principal of or interest on this Note. This Note is registered with the Clerk to the Board, as registrar (the Registrar) , in the name of the Registered Owner, and the principal of and interest on this Note are payable only to the Registered Owner. The County and the Registrar have no responsibility or obligation with respect to the accuracy of the records of the Registered Owner or any participant with respect to any ownership interest in the Notes or the delivery to any participant, beneficial owner or other person (except the Registered Owner) of any notice with respect to the Notes. This Note is transferable only upon the books of the County by the Clerk to the Board, as transfer agent. Unless this Note is presented by an authorized representative of The Depository Trust Company to the County or its agent for registration of transfer, exchange or payment, and any Note is registered in the name of Cede & Co. or such other name as requested by an authorized representative of The Depository Trust Company and any payment is made to Cede & Co. , ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the Registered Owner hereof, Cede & Co. , has an interest herein. It is hereby certified, recited and warranted that all acts, conditions and things required to be done, occur or be performed precedent to and in the issuance of this Note have been done, have occurred and have been performed in regular and due form and manner as required by law and that the obligations represented by this Note do not contravene any constitutional or statutory limitation of the State of Colorado. IN TESTIMONY WHEREOF the County has caused this Note to be executed in its name with the manual signature of the Chairman of the Board of County Commissioners, to be sealed with the seal 6 Page 7 RE: TAX ANTICIPATION NOTES, SERIES 1992A of the County, and to be attested with the manual signature of the Clerk to the Board, all as of the day of January, 1992 . WELD COUNTY, COLORADO (COUNTY) ( SEAL ) By: (Manual Signature) Chairman of the Board of County Commissioners ATTEST: (Manual Signature) Clerk to the Board Page 8 RE: TAX ANTICIPATION NOTES, SERIES 1992A ASSIGNMENT FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE (Name and Address of Assignee) this Note and does hereby irrevocably constitute and appoint to transfer this Note on the books kept for registration thereof. Dated: Signature guaranteed: (Bank, Trust Company or Firm NOTICE: The signature to this assignment must correspond with the name of the registered owner as it appears upon the face of this Note in every particular without alteration or enlargement or any change whatever. Page 9 RE: TAX ANTICIPATION NOTES, SERIES 1992A Section 9. The Notes may be sold at private sale to the Purchaser at, above, or below the aggregate principal amount thereof as may be determined by the Finance Director or his designee, and the Board hereby determines such action to be in the public interest. Section 10. The proceeds of the Notes shall be deposited in a restricted account within the General Fund and shall be used solely for the payment of duly budgeted current expenses of the General Fund when and to the extent that other moneys on deposit in the General Fund are insufficient therefor. Any portion of said proceeds may be temporarily invested pending such use in securities or investments which are lawful investments for the County. All Taxes levied for General Fund purposes (except Taxes collected for retirement of existing debt) , investment proceeds on such Taxes, and proceeds of the Notes to the extent not required for the payment of duly budgeted current expenses of the General Fund, received by the County in the Current Fiscal Year after the issuance of the Notes, shall be deposited in a separate restricted account within the General Fund to be known as the "Tax Anticipation Notes, Series 1992A, Principal and Interest Redemption Account" (the Note Account) until such time as the moneys therein are sufficient in the aggregate to pay when due the principal of and interest on the Notes. All moneys in the Note Account not in excess of the amount required to pay when due the principal of and interest on the Notes and all securities in which the same may be invested from time to time are hereby pledged to secure the payment of the principal of and interest on the Notes and shall be used for no other purpose. This pledge shall be valid and binding from and after the first delivery of the Notes, and the moneys so pledged shall immediately be subject to the lien of said pledge without any physical delivery thereof, any filing, or further act. Section 11. The County shall make no investment or other use of the proceeds of the Notes which, if such investment or other use had been reasonably expected on the date of issue of the Notes, would have caused the Notes to be "arbitrage bonds" within the meaning of the Internal Revenue Code of 1986, as amended (the Code) , and the regulations thereunder and shall comply with the requirements of the Code and said regulations throughout the term of the Notes. The County hereby designates the Notes as "qualified tax-exempt obligations" under Section 265 (b) of the Code. Section 12. All acts, orders, resolutions or parts thereof taken by the County and in conflict with this Resolution are hereby repealed, except that this repealer shall not be 9 +l ,e Av._a Page 10 RE: TAX ANTICIPATION NOTES, SERIES 1992A construed so as to revive any act, order, resolution or part thereof heretofore repealed. Section 13 . This Resolution is, and shall constitute, a legislative measure of the County, and after the Notes are issued, sold and outstanding, this Resolution shall constitute a contract between the County and the registered owners of the Notes and shall be and remain irrepealable until the Notes and the interest thereon shall have been fully paid, satisfied and discharged. Section 14. If any paragraph, clause or provision of this Resolution is judicially adjudged invalid or unenforceable, such judgment shall not affect, impair or invalidate the remaining paragraphs, clauses or provisions hereof, the intention being that the various paragraphs, clauses or provisions hereof are severable. Section 15. This Resolution shall take effect immediately upon its adoption. 10 ^^ y ? ! .4 - Page 11 RE: TAX ANTICIPATION NOTES, SERIES 1992A The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 18th day of December, A.D. , 1991. ATTESTI � 41/%2 BOARD OF COUNTY COMMISSIONERS WELD C , COLORADO Go , Chairman 4 1-71,1 .L, Ge ge K nedy, Pro-Tem �-� Clerk to the Boar APPROVED AS T , FORM: on ante L, ar ert C. W. Ki by County Attorney W. H. We ster 11 4, sale of the Notes (including the fees of Bond Counsel) shall be paid by you out of the proceeds of the Notes. Section 9. Use of Offering Circular. You hereby acknowledge the Underwriter's use and distribution of the Preliminary Offering Circular, and you acknowledge the proposed use and distribution of the Offering Circular for the use by the Underwriter in connection with the sale of the Notes and you warrant the information contained therein relating to the County to be true and correct. Section 10. Notice. Any notice or other communication to be given to you under this Note Purchase Agreement may be given by mailing or delivering the same in writing at your address set forth above; and any notice or other communication to be given to the Underwriter under this Note Purchase Agreement may be given by delivering the same in writing to the Underwriter, Suite 1680, 1660 Lincoln Street, Denver, Colorado 80264. Section 11. Aoolicable Law: Nonassianability. This Note Purchase Agreement shall be governed by the laws of the State. This Note Purchase Agreement shall not be assigned by you. Section 12. Execution of Counterparts. This Note Purchase Agreement may be executed in several counterparts, each of which shall be regarded as an original and all of which shall constitute one and the same document. Very truly yours, PIPER, JAFFRAY & HOPWOOD, INCORPORATED By: Title: Accepted as of the date l/l/G/ ! first above written: ATTEST: WELD COUN LO DO WELD COUNTY CLERK O THE ARD By: BY: 4 Lz2 to 1 a Board of DEPUTY CLERK O TH BOARD County Co issioners z-q/ %/l/ BD21929.A(PF) 8 12/11/91 8021929.A(PF) 12/09/91 $4 ,650,000 WELD COUNTY, COLORADO TAX ANTICIPATION NOTES SERIES 1992A NOTE PURCHASE AGREEMENT _, 199_ Board of County Commissioners Weld County 915 10th Street Greeley, Colorado 80632 Ladies and Gentlemen: On the basis of the representations, warranties and covenants contained in this Note Purchase Agreement (this Note Purchase Agreement) and on the terms and conditions contained herein, the undersigned, Piper, Jaffray & Hopwood, Incorporated (the Underwriter) , hereby offers to purchase from Weld County, Colorado (the County) $4, 650, 000 aggregate principal amount of Tax Anticipation Notes, Series 1992A, dated January _, 1992 (the Notes) , to be issued under and pursuant to a resolution adopted by the County on December 18, 1991 (the Note Resolution) . Section 1. The County's Representations. Warranties and Agreements. By your acceptance hereof the County hereby represents, warrants, and agrees with the Underwriter that: (a) You are a political subdivision of the State of Colorado (the State) and a body politic and corporate duly organized and validly existing under the Constitution and laws of the State and your Home Rule Charter. To the best of your knowledge, you are authorized by the provisions of the Constitution and laws of the State, including the Tax Anticipation Note Act, part 1 of article 15 of title 29, Colorado Revised Statutes, as amended (the Act) , and your Home Rule Charter to adopt the Note Resolution and issue the Notes. (b) To the best of your knowledge, you have complied with all provisions of the Constitution and laws of the State, including the Act, and your Home Rule Charter in connection with the issuance of the Notes, and have full power and authority to consummate all transactions contemplated by this Note Purchase Agreement, the Notes, the Note Resolution, and any and all other agreements relating thereto. (c) In order to enable the Underwriter to comply with Rule 15c2-12 under the Securities Exchange Act of 1934 (the Rule) , (i) you have reviewed the Preliminary Offering Circular, dated as of , 199_ (the Preliminary Offering Circular) and have deemed it final as of its date except for the omission of no more than the following information: the offering price, interest rate, selling compensation, aggregate principal amount, delivery date, ratings, and other terms of the securities depending on such matters; (ii) you shall provide to the Underwriter 150 copies of a Final Offering Circular which the County deems complete as of its date (the Final Offering Circular) , in substantially the same form as the Preliminary Offering Circular subject to minor additions, deletions and revisions within seven business days after the date of this Note Purchase Agreement and in sufficient time to accompany any confirmation that requires payment from any customer; (iii) you shall deliver, at the Closing Time (hereinafter defined) , a certificate executed by appropriate officers of the County acting in their official capacities, to the effect that the facts contained in the Final Offering Circular are true and correct in all material respects, and that the Final Offering Circular does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; and (iv) you agree to notify the Underwriter of any material developments impacting the County or the Notes of which the County becomes aware within 60 days after delivery of the Notes. (d) To the best of your knowledge, you have duly authorized all necessary action to be taken by you for (i) the issuance and sale of the Notes upon the terms set forth herein and in the Preliminary Offering Circular prepared for use in connection with the Notes, the Final Offering Circular, and any amendment or supplement that may be authorized by you and approved by us for use with respect to the Notes (herein collectively referred to as the Offering Circular) ; (ii) the adoption of the Note Resolution providing for the issuance of and security for the Notes; (iii) the execution and delivery of, and the due performance of all obligations represented by, this Note Purchase Agreement, the Notes, and any and all such other agreements and documents as may be required to carry out, give effect to, and consummate the transactions contemplated hereby and by the Offering Circular; and (v) the carrying out, giving effect to, and consummation of the transactions contemplated hereby and by the Offering Circular. Executed counterparts of the Note Resolution will be delivered to the Underwriter by you at the Closing Time (hereinafter defined) . BD21929.A(PF) 2 12/11/91 (e) There is no action, suit, proceeding, inquiry or investigation at law or in equity or before or by any court, public board or body pending and for which you have been served or, to the best of your knowledge, threatened against or affecting you (or to the best of your knowledge any basis therefor) , wherein an unfavorable decision, ruling or finding would adversely affect the transactions contemplated hereby or by the Offering Circular or the validity of this Note Purchase Agreement, the Notes, the Note Resolution, or any agreement or instrument to which you are a party and which is used or contemplated for use in the consummation of the transactions contemplated hereby or by the Offering Circular. (f) To the best of your knowledge, the execution and delivery of this Note Purchase Agreement, the Notes, the Note Resolution, the Offering Circular, and the other agreements contemplated hereby and by the Offering Circular and compliance with the provisions thereof will not conflict with or constitute on your part a breach of or a default under any existing law, court or administrative regulation, decree or order or any agreement, indenture, mortgage, lease or other instrument to which you are subject or by which you are or may be bound. (g) You have not been notified of any listing or proposed listing by the Internal Revenue Service to the effect that you are an issuer whose arbitrage certifications may not be relied upon. (h) Any financial statements of the County supplied by you to the Underwriter have been prepared in conformity with generally accepted accounting principles consistently applied to the periods concerned and fairly present the financial condition of the County. (i) Any certificate signed by any of your authorized officers and delivered to the Underwriter is to the extent provided therein a representation and warranty by you to the Underwriter as to the statements made therein. Section 2 . The Underwriter's Representations . Warranties, and Aareements. The Underwriter hereby represents, warrants, and agrees with the County that: (a) The Underwriter shall supply to the County all information, referenced under Section 1(c) (i) of this Note Purchase Agreement, to complete the Final Offering Circular. (b) In order to comply with the Rule, (i) the Underwriter has obtained and reviewed the Preliminary Offering BD21929.A(PF) 3 12/11/91 Circular prior to the time the Underwriter bid for, purchased, offered or sold the Notes; (ii) the Underwriter has sent and shall send, by first-class mail or other equally prompt means, a copy of the most recent version of the Preliminary Offering Circular to any potential customer, on request, no later than the next business day after the request, until the Final Offering Circular is available; and (iii) from the time the Final Offering Circular becomes available until the earlier of 90 days after the End of the Underwriting Period (hereinafter defined) or the time when the Final Offering Circular is available to any person from a nationally recognized municipal securities information repository, but in no case less than 25 days after the End of the Underwriting Period, the Underwriter shall send, by first-class mail or other equally prompt means, a copy of the Final Offering Circular to any potential customer, on request, no later than the next business day after the request. (c) Within 25 days after the End of the Underwriting Period, the Underwriter shall send, by first- class mail or equally prompt means, a copy of the Final Offering Circular to both the Municipal Securities Rulemaking Board and a nationally recognized municipal securities information repository. End of the Underwriting Period means the later of the time (i) the County delivers the Notes to the Underwriter, or (ii) the Underwriter does not retain any unsold balance of the Notes for sale to the public, either directly or as a member of a syndicate. Section 3 . Purchase, Sale and Delivery of the Notes. On the basis of the representations, warranties and covenants contained herein and subject to the terms and conditions herein set forth, at the Closing Time (hereinafter defined) the Underwriter agrees to purchase from you and you agree to sell to the Underwriter the Notes for a price equal to % of the principal amount thereof. The Notes shall be issued under and secured as provided in the Note Resolution. The Notes shall mature on December 31, 1992 , and shall bear interest at the rate of % per annum. Payment for the Notes shall be made by certified or official bank check or at the Underwriter's option by wire transfer in immediately available federal funds payable to your order or for your account, at the offices of Ballard Spahr Andrews & Ingersoll, in Denver, Colorado, at :00 a.m. , prevailing local time, on January _, 1992, or such other place, time or date as shall be mutually agreed upon by you and the Underwriter. The date of such delivery and payment is herein called the Closing Date, and the BD21929.A(PF) 4 12/11/91 hour and date of such delivery and payment is herein called the Closing Time. The Notes shall be delivered in printed or typewritten form payable to such registered owner or owners as the Underwriter may direct. Section 4 . Conditions to the Underwriter's Obligations. The Underwriter's obligations hereunder shall be subject to the due performance by you of your obligations and agreements to be performed hereunder at or prior to the Closing Time and to the accuracy of and compliance with your representations and warranties contained herein as of the date hereof and as of the Closing Time and shall also be subject to the following conditions: (a) The Notes, the Note Resolution and the Offering Circular shall have been duly authorized, executed and delivered by the parties thereto in the form heretofore approved by the Underwriter with only such changes therein as shall be mutually agreed upon by you and the Underwriter. (b) At the Closing Time the Underwriter shall receive: (i) The opinion in form and substance satisfactory to the Underwriter dated the Closing Date of Ballard Spahr Andrews & Ingersoll, Bond Counsel, relating to the valid issuance of the Notes and the tax treatment of interest on the Notes under federal and Colorado income tax laws; (ii) Such certificates, opinions and other documents as the Underwriter may reasonably request to evidence performance of or compliance with the provisions hereof and the transactions contemplated hereby and by the Offering Circular, all such certificates and other documents to be satisfactory in form and substance to the Underwriter. Section 5. The Underwriter's Right to Cancel. The Underwriter shall have the right to cancel its obligation hereunder to purchase the Notes by notifying you in writing or by telegram of its election so to do between the date hereof and the Closing Time if at any time hereafter and prior to the Closing Time: (a) Legislation shall be proposed by any member of the Congress of the United States of America, or a tentative decision with respect to legislation shall be reached by a committee of the House of Representatives or the Senate of the Congress of the United States of America, or legislation shall be favorably reported by such a committee or be introduced by amendment or otherwise in, or be passed by, the House of Representatives or the Senate or recommended to the Congress BD21929.A(PF) 5 12/11/91 of the United States of America for passage by the President of the United States of America or enacted by the Congress of the United States of America, or a decision by a court established under Article III of the Constitution of the United States of America or the Tax Court of the United States of America shall be rendered, or a ruling, regulation or order of the Treasury Department of the United States of America or the Internal Revenue Service shall be made or proposed, or any other event shall have occurred, which results in the imposition of federal income taxation upon revenues or other income of the general character to be derived by you or by any similar body or upon interest received on obligations of the general character of the Notes, or the Notes, which in the Underwriter's opinion materially adversely affects the market price of the Notes; (b) Any legislation, ordinance, resolution, rule, or regulation shall be introduced in or be enacted by any governmental body, department or agency in the State, or a decision by any court of competent jurisdiction within the State shall be rendered, which in the Underwriter's opinion materially adversely affects the market price of the Notes; (c) A stop order, ruling, regulation or official statement by or on behalf of the Securities and Exchange Commission or any other governmental agency having jurisdiction of the subject matter shall be issued or made to the effect that the issuance, offering or sale of obligations of the general character of the Notes, or the issuance, offering or sale of the Notes, including all the underlying obligations, as contemplated hereby or by the Offering Circular is in violation or would be in violation of any provision of the federal securities laws, the Securities Act of 1933 , as amended and as then in effect, or the registration provisions of the Securities Exchange Act of 1934, as amended and as then in effect, or the qualification provisions of the Trust Indenture Act of 1939, as amended and as then in effect; (d) Legislation shall be enacted by the Congress of the United States of America, or a decision by a court of the United States of America shall be rendered, to the effect that obligations of the general character of the Notes, or the Notes, including all the underlying obligations, are not exempt from registration under or from other requirements of the Securities Act of 1933, as amended and as then in effect, or the Securities Exchange Act of 1934, as amended and as then in effect, or that the Note Resolution is not exempt from qualification under or from other requirements of the Trust Indenture Act of 1939, as amended and as then in effect; BD21929.A(PF) 6 12/11/91 (e) Any event shall have occurred or information shall have become known, which in the Underwriter's opinion makes untrue in any material respect any statement or information contained in the Offering Circular or has the effect that the Offering Circular as originally circulated contains any untrue statement of a material fact or omits to state a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading; (f) Additional material restrictions not in force as of the date hereof shall have been imposed upon trading in securities generally by any governmental authority or by any national securities exchange; (g) Any national securities exchange or any governmental authority shall impose as to the Notes or obligations of the general character of the Notes any material restrictions not now in force or increase materially those now in force with respect to the extension of credit by, or the charge to the net capital requirements of, the Underwriter; (h) A general banking moratorium shall have been established by federal, New York or State authorities; (i) Trading in any securities of yours shall have been suspended on any national securities exchange or otherwise or any proceeding shall be pending or threatened by the Securities and Exchange Commission against you; or (j) A war involving the United States of America shall have been declared, or any conflict involving the armed forces of the United States of America shall have escalated, or any other national emergency relating to the effective operation of government or the financial community shall have occurred, which in the Underwriter's opinion materially adversely affects the market price of the Notes. Section 6. Conditions of Your Obligations. Your obligations hereunder are subject to the Underwriter's performance of its obligations hereunder. Section 7. Representations. Warranties and Agreements to Survive Delivery. All of your representations, warranties and agreements shall remain operative and in full force and effect, regardless of any investigations made by the Underwriter on its behalf and shall survive delivery of the Notes to the Underwriter. Section 8. Payment of Expenses. The expenses and costs to effect the authorization, preparation, issuance, delivery and BD21929.A(PF) 7 12/11/91 Hello