DATE, TIME, PLACE OF MEETING
The Calcasieu Parish School Board met in the Conference Room of the Calcasieu Parish School Board located at 1732 Kirkman Street, Lake Charles, Louisiana, on Tuesday, October 15, 2002, at 5:00 p.m. John M. Falgout, President, called the meeting to order. Wilridge Doucet led the prayer; Mr. Andrepont led the Pledge of Allegiance.
ROLL CALL
The roll was called and the following members were present:
Joe A. Andrepont, Randall C. Armentor, Ricky Blackwell, Wilridge P. Doucet, Clara F. Duhon, Jay L. Duhon, John M. Falgout, L. J. "Berk" Fontenot, James W. Karr, Sr., Sheral A. LaVergne, James W. Pitre, Gregory P. Robert, and Philip Tarver.
Carla C. Duplechin and Elray T. Victorian were absent.
MINUTES APPROVED
On motion by Mrs. Duhon, seconded by Mr. Andrepont and unanimously carried, the minutes of the regular meeting of October 1, 2002, were approved as presented.
Supplemental Agenda
By general consent the Supplemental Agenda was included as part of the regular agenda.
Agenda/Amend
By general consent item VII A, B, and C were placed after approval of supplemental agenda.
TAKE APPROPRIATE ACTION
Resolution Providing for Issuance of School District Number 34 Bonds
Lake Charles, Louisiana
October 15, 2002
The Parish School Board of Calcasieu Parish, Louisiana, met in public session at 5:00 o’clock p.m. on Tuesday, October 15, 2002, at the regular meeting place of said Board in the Calcasieu Parish School Board Office, Lake Charles, Louisiana, pursuant to the provisions of written notice given to each and every member thereof and duly posted in the manner required by law.
John M. Falgout, President called the meeting to order and on roll call, the following members were present:
Joe A. Andrepont, Randy Armentor, Ricky Blackwell, Wilridge Doucet, Clara F. Duhon, J. L. “Jay” Duhon, John M. Falgout, L. J. “Berk” Fontenot, James W. Karr, Sr., Sheral LaVergne, James W. Pitre, Greg Robert, and Philip E. Tarver
ABSENT: Carla C. Duplechin and Elray T. Victorian
The President stated that one purpose of the meeting was the opening of sealed bids received for the purchase of $10,000,000 of General Obligation Public School Improvement Bonds of School District No. 34 of Calcasieu Parish, Louisiana, 2002 Series A (the “Series A Bonds”), and $1,750,000 of General Obligation Public School Improvement Bonds of School District No. 34 of Calcasieu Parish, Louisiana, 2002 Series B (the “Series B Bonds”).
The President presented affidavits evidencing proper publication of the Notices of Sale of the Bonds, said affidavits indicating that the Notices of Sale had been published in the Southwest Daily News, a newspaper published in Calcasieu Parish, Louisiana, and of general circulation in School District No. 34 of Calcasieu Parish, Louisiana, on October 3, 2002 (such publication having been made at least seven (7) clear calendar days before the date scheduled for the receipt of bids), and also published in the Daily Journal of Commerce, a financial newspaper or journal containing a section devoted to municipal bond news published in the City of New Orleans, Louisiana on October 3, 2002 (which publication was made at least forty-eight (48) hours in advance of the date scheduled for the receipt of bids). The affidavits were approved and were ordered filed with the minutes of said meeting.
The President then presented the sealed bids for the purchase of the Series A Bonds of School District No. 34 of Calcasieu Parish, Louisiana, which had been received, which bids were opened and found to be as follows:
EFFECTIVE
NAME OF BIDDER INTEREST RATE PREMIUM
1. Morgan Keegan & Company 4.398724% -0-
New Orleans, Louisiana
2. Stephens Inc. 4.570446% $2,486.00
Little Rock, Arkansas
3. Salomon Smith Barney Inc. 4.554956% -0-
LittleRock, Arkansas
Upon verification, it was determined that the bid of Morgan Keegan & Company, Inc., of New Orleans, Louisiana, was the lowest and best bid submitted for the purchase of the Series A Bonds, whereupon the following resolution was introduced and, pursuant to motion made by Mr. Robert and seconded by Mr. Pitre, was adopted by the following vote:
YEAS: Mr. Andrepont, Mr. Armentor, Mr. Blackwell, Mr. Doucet, Mrs. Duhon, Mr. Duhon, Mr. Fontenot, Mr. Karr, Ms. LaVergne, Mr. Pitre, Mr. Robert, and Mr. Tarver
NAYS: None
ABSENT: Ms. Duplechin and Mr. Victorian
NOT VOTING: President Falgout
The President then presented the sealed bids for the purchase of the Series B Bonds of School District No. 34 of Calcasieu Parish, Louisiana, which had been received, which bids were opened and found to be as follows:
EFFECTIVE
NAME OF BIDDER INTEREST RATE PREMIUM
1. Morgan Keegan & Company 4.553116% -0-
New Orleans, Louisiana
2. Stephens Inc. 4.705723% $39.35
Little Rock, Arkansas
Upon verification, it was determined that the bid of Morgan Keegan & Company, Inc., of New Orleans, Louisiana, was the lowest and best bid submitted for the purchase of the Series B Bonds, whereupon the following resolution was introduced and, pursuant to motion made by Mr. Robert and seconded by Mr. Pitre, was adopted by the following vote:
YEAS: Mr. Andrepont, Mr. Armentor, Mr. Blackwell, Mr. Doucet, Mrs. Duhon, Mr. Duhon, Mr. Fontenot, Mr. Karr, Ms. LaVergne, Mr. Pitre, Mr. Robert, and Mr. Tarver
NAYS: None
ABSENT: Ms. Duplechin and Mr. Victorian
NOT VOTING: President Falgout
RESOLUTION
A RESOLUTION PROVIDING FOR ISSUANCE OF $10,000,000 GENERAL OBLIGATION PUBLIC SCHOOL IMPROVEMENT BONDS OF SCHOOL DISTRICT NO. 34 OF CALCASIEU PARISH, LOUISIANA, 2002 SERIES A; AND $1,750,000 GENERAL OBLIGATION PUBLIC SCHOOL IMPROVEMENT BONDS OF SCHOOL DISTRICT NO. 34 OF CALCASIEU PARISH, LOUISIANA, 2002 SERIES B; CONFIRMING THE SALE THEREOF; AND PROVIDING FOR THE LEVY OF TAXES FOR THE PAYMENT OF PRINCIPAL THEREOF AND INTEREST THEREON.
WHEREAS, pursuant to a resolution adopted by the Calcasieu Parish School Board, governing authority of School District No. 34 of Calcasieu Parish, Louisiana (the “Issuer”) on May 7, 2002, and in conformity with notice duly published in compliance with law, there was held in School District No. 34 of Calcasieu Parish, Louisiana, on July 20, 2002, a special election at which there was submitted to the qualified electors of said district the following propositions:
BOND PROPOSITION NO. 1
SUMMARY: AUTHORITY FOR SCHOOL DISTRICT NO. 34 OF CALCASIEU PARISH, LOUISIANA, TO ISSUE NOT EXCEEDING $34,000,000 OF 20-YEAR PUBLIC SCHOOL IMPROVEMENT BONDS FOR ACQUIRING AND/OR IMPROVING SCHOOL BUILDINGS AND OTHER SCHOOL RELATED FACILITIES WITHIN THE DISTRICT, SAID BONDS TO BE PAYABLE FROM AD VALOREM TAXES.
Shall School District No. 34 of Calcasieu Parish, Louisiana (the “District”) incur debt and issue bonds in an amount not exceeding $34,000,000 for a period not to exceed twenty (20) years from the date thereof, with interest at a rate not exceeding Nine (9%) percent per annum, for the purpose of acquiring and/or improving lands for building sites and playgrounds, purchasing, erecting, enlarging and/or improving school buildings and other school related facilities within and for the District, and acquiring the necessary equipment and furnishings therefor, title to which shall be in the public, which said bonds shall be retired with, paid from and secured by ad valorem taxes on all taxable property within the limits of the District sufficient in rate and amount to pay said bonds in principal and interest?
BOND PROPOSITION NO. 2
SUMMARY: AUTHORITY FOR SCHOOL DISTRICT NO. 34 OF CALCASIEU PARISH, LOUISIANA, TO ISSUE NOT EXCEEDING $1,750,000 OF 20-YEAR PUBLIC SCHOOL IMPROVEMENT BONDS FOR RENOVATING AND IMPROVING THE FOOTBALL STADIUM AND RELATED ATHLETIC FACILITIES AT ALFRED M. BARBE HIGH SCHOOL WITHIN THE DISTRICT, SAID BONDS TO BE PAYABLE FROM AD VALOREM TAXES.
Shall School District No. 34 of Calcasieu Parish, Louisiana (the “District”) incur debt and issue bonds in an amount not exceeding $1,750,000 for a period not to exceed twenty (20) years from the date thereof, with interest at a rate not exceeding Nine (9%) percent per annum, said bonds authorized for the specific purpose of renovating and improving the football stadium and related athletic facilities at Alfred M. Barbe High School within the District, and acquiring the necessary equipment and furnishings therefor, title to which shall be in the public, which said bonds shall be retired with, paid from and secured by ad valorem taxes on all taxable property within the limits of the District sufficient in rate and amount to pay said bonds in principal and interest?
and
WHEREAS, pursuant to said resolution calling the special election, and the notice of election, the Calcasieu Parish School Board as governing authority (the “Governing Authority”) of School District No. 34 of Calcasieu Parish, Louisiana (the “Issuer”), did on July 23, 2002, meet in open session and canvass the returns of said election and did declare said election to have resulted in favor of said propositions; and
WHEREAS, the Governing Authority now deems it in the public interest to authorize issuance and delivery of $10,000,000 General Obligation Public School Improvement Bonds of School District No. 34 of Calcasieu Parish, Louisiana, 2002 Series A, and $1,750,000 General Obligation Public School Improvement Bonds of School District No. 34 of Calcasieu Parish, Louisiana, 2002 Series B;
WHEREAS, the Governing Authority deems it to be in the public interest that it accept the lowest and best bids received for the purchase of the Series A Bonds and the Series B Bonds reflected above, together with the good faith checks which accompany each bid;
WHEREAS, pursuant to Notice of Sale duly published, the Series A Bonds have been sold to Morgan Keegan & Company, Inc., of New Orleans, Louisiana, at the price of not less than par and accrued interest to date of delivery, the bid of said purchaser being in full as follows:
We offer to purchase TEN MILLION AND NO/100 ($10,000,000) DOLLARS General Obligation Public School Improvement Bonds of School District No. 34 of Calcasieu Parish, Louisiana, 2002 Series A, in the initial denominations of one Bond for each maturity, with transfers in multiples of $5,000.00, bearing interest payable semi-annually on May 1 and November 1 of each year, beginning May 1, 2003, maturing serially, WITH OPTION OF PRIOR PAYMENT, all in accordance with the Notice of Bond Sale and Official Statement, all the terms and conditions of which by reference are made a part hereof, and bearing interest at rates as follows, viz:
MATURITY PRINCIPAL INTEREST MATURITY PRINCIPAL INTEREST
DATE AMOUNT RATE PER DATE AMOUNT RATE PER
(Nov. 1) ANNUM (Nov. 1) ANNUM
2003 300,000 6.50% 2013 490,000 3.80%
2004 320,000 7.10% 2014 520,000 4.00%
2005 335,000 5.60% 2015 540,000 4.15%
2006 350,000 5.125% 2016 570,000 4.25%
2007 365,000 4.95% 2017 600,000 4.35%
2008 385,000 4.90% 2018 630,000 4.40%
2009 405,000 4.90% 2019 660,000 4.45%
2010 430,000 3.50% 2020 695,000 4.55%
2011 445,000 3.60% 2021 725,000 4.65%
2012 470,000 3.65% 2022 765,000 4.75%
We will pay the principal sum of TEN MILLION AND NO/100 ($10,000,000) DOLLARS, together with accrued interest from the date of the Bonds to the date of delivery, plus a premium in the amount of $ -0- .
For your information, we calculate the lowest effective interest rate to School District No. 34 to be 4.398724 %, said rate to be determined in accordance with the “True” or “Canadian” interest cost method of calculation by doubling the semiannual interest rate (compounded semiannually) necessary to discount the debt service payments from the payment dates to the date of the Bonds and to the price bid, excluding the accrued interest from the date of the Bonds to the date of their delivery.
Bonds bid for herein will be delivered and shall be paid for on or about November 26, 2002, at such place in Louisiana, and on such business day and at such hour, as the Issuer shall fix on five business days' notice to the successful bidder, or at such other place and time as may be agreed upon with the successful bidder, it being understood that School District No. 34 will furnish to us, free of charge, at the time of delivery of the Bonds, the qualified approving legal opinion of Joseph A. Delafield, Attorney at Law, of Lake Charles, Louisiana, and a certified transcript of this proceeding.
In accordance with the Notice of Bond Sale, we enclose herewith (certified) (cashier's) check(s) number(s) 10001666 drawn on Whitney National Bank of New Orleans, Louisiana , in the amount of TWO HUNDRED THOUSAND AND NO/100 ($200,000.00) DOLLARS, which is tendered as evidence of our good faith in accordance with and under the provisions of the Official Statement and of the Notice of Bond Sale. Said check shall be returned to the undersigned upon award of the Bonds, provided this proposal is not accepted; otherwise, to be retained uncashed by School District No. 34 of Calcasieu Parish, Louisiana, and returned upon delivery of the Bonds and payment therefor, or to be cashed and forfeited as and for full liquidated damages in case of the failure of the undersigned to make such payment.
We acknowledge and understand the Bonds are not designated as “qualified tax-exempt obligations” pursuant to Section 265(b)(3)(B) of the Internal Revenue Code of 1986.
This bid complies with the terms stipulated in the aforesaid Notice of Bond Sale, the receipt of which Notice of Bond Sale is hereby acknowledged.
WHEREAS, pursuant to Notice of Sale duly published, the Series B Bonds have been sold to Morgan Keegan & Company, Inc., of New Orleans, Louisiana, at the price of not less than par and accrued interest to date of delivery, the bid of said purchaser being in full as follows:
We offer to purchase ONE MILLION SEVEN HUNDRED FIFTY THOUSAND AND NO/100 ($1,750,000) DOLLARS General Obligation Public School Improvement Bonds of School District No. 34 of Calcasieu Parish, Louisiana, 2002 Series B, in the initial denominations of one Bond for each maturity, with transfers in multiples of $5,000.00, bearing interest payable semi-annually on May 1 and November 1 of each year, beginning May 1, 2003, maturing serially, WITH OPTION OF PRIOR PAYMENT, all in accordance with the Notice of Bond Sale and Official Statement, all the terms and conditions of which by reference are made a part hereof, and bearing interest at rates as follows, viz:
MATURITY PRINCIPAL INTEREST MATURITY PRINCIPAL INTEREST
DATE AMOUNT RATE PER DATE AMOUNT RATE PER
(Nov. 1) ANNUM (Nov. 1) ANNUM
2003 55,000 7.00% 2013 85,000 3.90%
2004 55,000 7.20% 2014 95,000 4.125%
2005 55,000 5.70% 2015 95,000 4.25%
2006 65,000 5.25% 2016 100,000 4.35%
2007 65,000 5.10% 2017 105,000 4.45%
2008 65,000 5.00% 2018 110,000 4.50%
2009 70,000 5.00% 2019 115,000 4.60%
2010 75,000 5.00% 2020 120,000 4.65%
2011 80,000 3.70% 2021 125,000 4.75%
2012 80,000 3.80% 2022 135,000 4.85%
We will pay the principal sum of ONE MILLION SEVEN HUNDRED FIFTY THOUSAND AND NO/100 ($1,750,000) DOLLARS, together with accrued interest from the date of the Bonds to the date of delivery, plus a premium in the amount of $ -0- .
For your information, we calculate the lowest effective interest rate to School District No. 34 to be 4.553116 %, said rate to be determined in accordance with the “True” or “Canadian” interest cost method of calculation by doubling the semiannual interest rate (compounded semiannually) necessary to discount the debt service payments from the payment dates to the date of the Bonds and to the price bid, excluding the accrued interest from the date of the Bonds to the date of their delivery.
Bonds bid for herein will be delivered and shall be paid for on or about November 26, 2002, at such place in Louisiana, and on such business day and at such hour, as the Issuer shall fix on five business days’ notice to the successful bidder, or at such other place and time as may be agreed upon with the successful bidder, it being understood that School District No. 34 will furnish to us, free of charge, at the time of delivery of the Bonds, the qualified approving legal opinion of Joseph A. Delafield, Attorney at Law, of Lake Charles, Louisiana, and a certified transcript of this proceeding.
In accordance with the Notice of Bond Sale, we enclose herewith (certified) (cashier's) check(s) number(s) 10001667 drawn on Whitney National Bank of New Orleans, Louisiana , in the amount of THIRTY-FIVE THOUSAND AND NO/100 ($35,000.00) DOLLARS, which is tendered as evidence of our good faith in accordance with and under the provisions of the Official Statement and of the Notice of Bond Sale. Said check shall be returned to the undersigned upon award of the Bonds, provided this proposal is not accepted; otherwise, to be retained uncashed by School District No. 34 of Calcasieu Parish, Louisiana, and returned upon delivery of the Bonds and payment therefor, or to be cashed and forfeited as and for full liquidated damages in case of the failure of the undersigned to make such payment.
We acknowledge and understand the Bonds are not designated as “qualified tax-exempt obligations” pursuant to Section 265(b)(3)(B) of the Internal Revenue Code of 1986.
This bid complies with the terms stipulated in the aforesaid Notice of Bond Sale, the receipt of which Notice of Bond Sale is hereby acknowledged.
NOW THEREFORE, BE IT RESOLVED by the Calcasieu Parish School Board, governing authority of School District No. 34 of Calcasieu Parish, Louisiana, as follows:
SECTION 1. Definitions. As used herein the following terms shall have the following meanings, unless the context otherwise requires:
“Agreement” means the agreement to be entered into between the Issuer and the Paying Agent pursuant to this Resolution.
“Bond” means any 2002 Series Bonds of the Issuer authorized to be issued by this Resolution, whether initially delivered or issued in exchange for, upon transfer of, or in lieu of any bond previously issued.
“Bond Register” means the record kept by the Paying Agent at its principal corporate office in which registration of the Bonds and transfers of the Bonds shall be made as provided herein.
“Business Day” means a day of the year other than a day on which banks in the city in which the Paying Agent is located are required or authorized to remain closed or the New York Stock Exchange is closed.
“Code” means the Internal Revenue Code of 1986, as amended.
“Debt Service Fund” shall have the meaning ascribed to such term in Section 10 hereof.
“Defeasance Obligations” shall mean (a) cash, or (b) non-callable Government Securities.
“Executive Officers” means, collectively, the President and Secretary of the Governing Authority.
“Governing Authority” means the Calcasieu Parish School Board.
“Government Securities” means direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by the United States of America, which are non-callable prior to their maturity, and may be United States Treasury obligations such as the State and Local Government Series and may be in book-entry form.
“Interest Payment Dates” means May 1 and November 1 of each year beginning May 1, 2003.
“Issuer” means School District No. 34 of Calcasieu Parish, Louisiana.
“Outstanding” when used with respect to the Bonds means, as of the date of determination, all Bonds theretofore issued and delivered under this Resolution, except:
1. Bonds theretofore cancelled by the Paying Agent or delivered to the Paying Agent for cancellation.
2. Bonds for which payment or redemption sufficient funds have been theretofore deposited in trust for the Owners of such Bonds, provided that, if such Bonds are to be redeemed, irrevocable notice of such redemption has been duly given or provided for pursuant to this Resolution or waived.
3. Bonds in exchange for or in lieu of which other bonds have been registered and delivered pursuant to this Resolution.
4. Bonds alleged to have been mutilated, destroyed, lost, or stolen, which have been paid as provided in this Resolution or by law.
5. Bonds for the payment of principal (or redemption price, if any) of and interest on which money or Government Securities or both are held in trust with the effect specified in this Resolution.
“Owner” or “Owners” or “Registered Owner” when used with respect to any Bond means the Person in whose name such Bond is registered in the Bond Register, as herein provided.
“Paying Agent” means Argent Trust, a Division of National Independent Trust Company, in Ruston, Louisiana, until a successor Paying Agent shall have been appointed pursuant to the applicable provisions of this Resolution, and thereafter “Paying Agent” shall mean such successor Paying Agent.
“Person” means any individual, corporation, partnership, joint venture, association, joint-stock company, trust, unincorporated organization, or government or any agency or political subdivision thereof.
“Purchaser” means the original purchaser or purchasers of the Bonds.
“Record Date” for the interest payable on any Interest Payment Date means the fifteenth calendar day of the month next preceding an Interest Payment Date, whether or not such day is a Business Day.
“Resolution” means this Resolution authorizing issuance of the Series A Bonds and the Series B Bonds.
“Series A Bonds” means the General Obligation Public School Improvement Bonds, 2002 Series A of the Issuer, authorized by this Resolution, in the total aggregate principal amount of Ten Million Dollars ($10,000,000).
“Series B Bonds” means the General Obligation Public School Improvement Bonds, 2002 Series B of the Issuer, authorized by this Resolution, in the total aggregate principal amount of One Million Seven Hundred Fifty Thousand Dollars ($1,750,000).
SECTION 2. Authorization of Bonds; Maturities. In compliance with and under the authority of the provisions of Article VI, Section 34 and Article VII, Section 26(E) of the Constitution of the State of Louisiana of 1974, as amended, and those portions of Part II of Article 7 of the Constitution of 1974 of the State of Louisiana not repealed by the 1977 Louisiana Legislature, and Sub-Part A, Part III, Chapter 4, Sub-Title II of Title 39 of the Louisiana Revised Statutes of 1950, as amended, and constitutional and statutory authority supplemental thereto, and pursuant to proceedings regularly and legally taken by the Issuer, and a special election held within the Issuer on July 20, 2002, there is hereby authorized (i) the incurring of an indebtedness of Ten Million Dollars ($10,000,000) for, and on behalf of and in the name of the Issuer, for the purpose of acquiring and/or improving school buildings and other school related facilities within and for the Issuer, and acquiring the necessary equipment and furnishings therefor, a work of public improvement, title to which school improvements shall be in the public, and to pay the cost of issuance of the Series A Bonds, and to represent said indebtedness this Governing Authority does hereby authorize issuance of Ten Million Dollars ($10,000,000) of General Obligation Public School Improvement Bonds, 2002 Series A, of the Issuer; and (ii) the incurring of an indebtedness of One Million Seven Hundred Fifty Thousand Dollars ($1,750,000) for, and on behalf of and in the name of the Issuer, for the purpose of renovating and improving the football stadium and related athletic facilities at Alfred M. Barbe High School within the District, and acquiring the necessary equipment and furnishings therefor, a work of public improvement, title to which school improvements shall be in the public, and to pay the cost of issuance of the Series B Bonds, and to represent said indebtedness this Governing Authority does hereby authorize issuance of One Million Seven Hundred Fifty Thousand Dollars ($1,750,000) of General Obligation Public School Improvement Bonds, 2002 Series B, of the Issuer. The Series A Bonds and the Series B Bonds shall be in fully registered form, shall be dated November 1, 2002, shall be issued in the denomination of Five Thousand Dollars ($5,000) each, or any integral multiple thereof within a single maturity, and the Series A Bonds and the Series B Bonds shall respectively be numbered consecutively from R-1 upward and shall mature in the years and in the principal amounts set out in the following schedule. The unpaid principal of the Bonds shall bear interest from date thereof or from the most recent Interest Payment Date to which interest has been paid or duly provided for, payable on each Interest Payment Date, commencing May 1, 2003, at rates of interest of not to exceed 9% per annum, as determined by receipt of sealed bids pursuant to advertisement, and maturing in the principal amounts as set out in the following schedules:
Series A Bonds
MATURITY PRINCIPAL INTEREST MATURITY PRINCIPAL INTEREST
DATE AMOUNT RATE PER DATE AMOUNT RATE PER
(Nov. 1) ANNUM (Nov. 1) ANNUM
2003 300,000 6.50% 2013 490,000 3.80%
2004 320,000 7.10% 2014 520,000 4.00%
2005 335,000 5.60% 2015 540,000 4.15%
2006 350,000 5.125% 2016 570,000 4.25%
2007 365,000 4.95% 2017 600,000 4.35%
2008 385,000 4.90% 2018 630,000 4.40%
2009 405,000 4.90% 2019 660,000 4.45%
2010 430,000 3.50% 2020 695,000 4.55%
2011 445,000 3.60% 2021 725,000 4.65%
2012 470,000 3.65% 2022 765,000 4.75%
Series B Bonds
MATURITY PRINCIPAL INTEREST MATURITY PRINCIPAL INTEREST
DATE AMOUNT RATE PER DATE AMOUNT RATE PER
(Nov. 1) ANNUM (Nov. 1) ANNUM
2003 55,000 7.00% 2013 85,000 3.90%
2004 55,000 7.20% 2014 95,000 4.125%
2005 55,000 5.70% 2015 95,000 4.25%
2006 65,000 5.25% 2016 100,000 4.35%
2007 65,000 5.10% 2017 105,000 4.45%
2008 65,000 5.00% 2018 110,000 4.50%
2009 70,000 5.00% 2019 115,000 4.60%
2010 75,000 5.00% 2020 120,000 4.65%
2011 80,000 3.70% 2021 125,000 4.75%
2012 80,000 3.80% 2022 135,000 4.85%
The principal of the Series A Bonds and the Series B Bonds, upon maturity or redemption, shall be payable at the principal corporate trust office of the Paying Agent, upon presentation and surrender thereof, and interest on the Bonds shall be payable by check mailed by the Paying Agent to the Registered Owner at the address shown on the Bond Register. The person in whose name any Bond is registered at the close of business on the Record Date with respect to an Interest Payment Date (unless such Bond has been called for redemption on a redemption date which is prior to such Interest Payment Date) shall be entitled to receive the interest payable with respect to such Interest Payment Date notwithstanding the cancellation of such Bond upon any registration of transfer or exchange thereof subsequent to such Record Date and prior to such Interest Payment Date. Each Bond delivered under this Resolution upon transfer of or in exchange for or in lieu of any other Bond shall carry all the rights to interest accrued and unpaid, and to accrue, which were carried by such other Bond, and each such Bond will bear interest (as herein set forth) so that neither gain nor loss interest shall result from such transfer, exchange or substitution.
No Bond will be entitled to any right or benefit under this Resolution, or be valid or obligatory for any purpose, unless there appears on such Bond a certificate of registration, substantially in the form provided in this Resolution, executed by the Paying Agent by manual signature.
SECTION 3. Redemption Provisions. Those Bonds maturing in the years 2003 to 2007, inclusive, shall not be subject to redemption prior to maturity. Those Bonds maturing November 1, 2008 and thereafter shall be callable for redemption by the Issuer in full at any time on or after November 1, 2007, or in part in the inverse order of their maturities, and if less than a full maturity then by lot within such maturity, on any Interest Payment Date on or after November 1, 2007, at the principal amount thereof, plus accrued interest from the most recent Interest Payment Date to which interest has been paid or duly provided for to the date fixed for redemption.
In the event a Bond to be redeemed is of a principal amount denomination larger than $5,000, a portion of such Bond ($5,000 principal amount or any multiple thereof) may be redeemed. Any Bond which is to be redeemed only in part shall be surrendered at the principal corporate office of the Paying Agent and there shall be delivered to the Owner of such Bond a new Bond or Bonds of the same maturity and of any authorized denomination or denominations as requested by such Owner in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal amount of the Bond so surrendered. Official notice of such call of any of the Bonds for redemption will be given by means of first class mail, postage prepaid, by notice deposited in the United States mail not less than thirty (30) days prior to the redemption date, addressed to the Owner of each Bond to be redeemed as shown on the Bond Register.
SECTION 4. Exchange of Bonds; Persons Treated as Owners. The Issuer shall cause books for registration and for transfer of the Bonds (the “Bond Register”), as provided in this Resolution to be kept at the principal office of the Paying Agent, and the Paying Agent is hereby constituted and appointed the Registrar for the Bonds. The Bonds may be transferred, registered and assigned, at the expense of the Issuer, only upon the Bond Register upon surrender thereof at the principal office of the Paying Agent and by execution of the assignment form on the Bonds or by other instrument of transfer and assignment in such form as shall be satisfactory to the Paying Agent. A new Bond or Bonds will be delivered by the Paying Agent to the last assignee (the new registered owner) in exchange for such transferred and assigned Bonds within three (3) business days after receipt of the Bonds to be transferred in proper form. Such new Bond or Bonds must be in the principal amount denomination of $5,000 or any integral multiple thereof within a single maturity. Neither the Issuer nor the Paying Agent will be required to issue, register the transfer of or exchange any Bond during a period beginning (i) at the opening of business on the Record Date, or (ii) with respect to any Bond called for redemption prior to maturity during a period beginning at the opening of business fifteen (15) days before the date of mailing of a notice of redemption of such Bond and ending on the date of such redemption. The execution by the Issuer of any fully registered Bond shall constitute full and due authorization of such Bond and the Paying Agent shall thereby be of line authorized to authenticate, date and deliver such Bond; provided, however, that the principal amount of outstanding Bonds of each maturity authenticated by the Paying Agent shall not exceed the authorized principal amount of Bonds for such maturity less previous retirements, subject to the provisions of Section 18 hereof. The Issuer is authorized to prepare, and the Paying Agent shall keep custody of, multiple Bond blanks executed by the Issuer for use in the transfer and exchange of Bonds.
SECTION 5. Registered Owner. As to any Bond, the Person in whose name the same shall be registered as shown on the Bond Register required by Section 4, shall be deemed and regarded as the absolute Owner thereof for all purposes, and payment of or on account of the principal of and premium, if any, and interest on any such Bond shall be made only to or upon the order of the Registered Owner thereof or his legal representative, and the Issuer and the Paying Agent shall not be affected by any notice to the contrary. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond, including the interest thereon, to the extent of the sum or sums so paid.
SECTION 6. Form of Bonds. The Bonds and the endorsements to appear thereon will be in substantially the following form, to-wit:
Series A Bonds
(FACE OF SERIES A BOND)
UNITED STATES OF AMERICA STATE OF LOUISIANA
PARISH OF CALCASIEU
REGISTERED REGISTERED
NO. R-____________ $____________
GENERAL OBLIGATION PUBLIC SCHOOL IMPROVEMENT BOND OF
SCHOOL DISTRICT NO. 34 OF
CALCASIEU PARISH, LOUISIANA
2002 SERIES A
DATED DATE INTEREST RATE: MATURITY DATE: CUSIP:
November 1, 2002
School District No. 34 of Calcasieu Parish, Louisiana (herein called the “Issuer”), for value received, hereby acknowledges itself indebted and promises to pay to
REGISTERED OWNER:
PRINCIPAL AMOUNT
(Lower Left)
OFFICE OF SECRETARY OF STATE
STATE OF LOUISIANA
BATON ROUGE, LOUISIANA
This Bond secured by a tax. Registered
on the ______ day of November 2002.
____________________________
SECRETARY OF STATE
PAYING AGENT/REGISTRAR’S
CERTIFICATE OF REGISTRATION
This Bond is one of the Bonds referred
to in the within mentioned Bond Resolution.
Argent Trust, a Division of
National Independent Trust Company
in the City of Ruston, Louisiana,
as Paying Agent/Registrar
By:___________________________
Date of Authentication:
(Lower Right)
or registered assigns, on the maturity date set forth above, the principal amount set forth above, together with interest thereon from the date hereof, said interest payable semi-annually on May 1 and November 1 in each year, beginning May 1, 2003, at the interest rate per annum set forth above until said principal sum is paid, unless this Bond has been previously called for redemption and payment shall have been duly made or provided for. The principal of this Bond upon maturity or redemption is payable in lawful money of the United States of America at the principal corporate trust office of Argent Trust, a Division of National Independent Trust Company located in the City of Ruston, Louisiana (the Paying Agent/Registrar), or successor thereto, upon presentation and surrender hereof. Interest on this Bond is payable by check mailed on each interest payment date by the Paying Agent/Registrar to the registered owner (determined as of the first calendar day of the month in which an interest payment is due) at the address, as shown on the books of the Paying Agent/Registrar.
REFERENCE IS MADE TO THE FURTHER PROVISIONS OF THIS BOND SET FORTH ON THE REVERSE HEREOF WHICH SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS THOUGH FULLY SET FORTH HEREIN.
This Bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Bond Resolution defined hereinafter until the Certificate of Registration hereon shall have been signed by the Paying Agent/Registrar.
IN WITNESS WHEREOF, the Calcasieu Parish School Board, acting as the governing authority of School District No. 34 of Calcasieu Parish, Louisiana, has caused this Bond to be executed in its name by the facsimile signatures of its President and Secretary and the impress or imprint hereon of the seal of said School Board, and this Bond to be dated November 1, 2002.
CALCASIEU PARISH SCHOOL BOARD
/s/ [facsimile] /s/ [facsimile]
SECRETARY PRESIDENT
(REVERSE OF SERIES A BOND)
ADDITIONAL PROVISIONS
This Bond is one of an issue, the Bonds of which are all of like date, tenor and effect, except as to the number, maturity and rate of interest, aggregating in principal the sum of TEN MILLION AND NO/100 ($10,000,000) DOLLARS; said Bonds to mature annually, issued pursuant to a resolution adopted on October 15, 2002, by the Issuer (the “Bond Resolution”), under and by virtue of Article 6, Section 34 and Article 7, Section 26(E) of the Constitution of 1974 of the State of Louisiana, and those portions of Part II of Article 7 of the Constitution of 1974 of the State of Louisiana not repealed by the 1977 Louisiana Legislature, and Subpart A of Part III of Chapter 4 of Sub-Title II of Title 39 of the Louisiana Revised Statutes of 1950, as amended, and all other laws on the same subject matter, and pursuant to proceedings regularly and legally taken by the Issuer, for the purpose of acquiring and/or improving lands for building sites and playgrounds, purchasing, erecting, enlarging and/or improving school buildings and other school related facilities within and for the Issuer, and acquiring the necessary equipment and furnishings therefor.
This Bond and the issue of which it forms a part are payable out of the receipt of unlimited ad valorem taxes levied on all properties subject to taxation within School District No. 34 of Calcasieu Parish, Louisiana, and are issued on complete parity with the Issuer’s $1,750,000 General Obligation Public School Improvement Bonds, 2002 Series B, dated November 1, 2002.
The Paying Agent/Registrar for this issue is Argent Trust, a Division of National Independent Trust Company, Louisiana, Ruston, Louisiana. This Bond shall pass by delivery on the books of the Issuer to be kept for that purpose at the principal corporate trust office of the Registrar and such registration is noted hereon. After such registration no transfer shall be valid unless made on said books at said office by the registered owner in person or by his duly authorized attorney and similarly noted hereon. This Bond may not be discharged from registration by like transfer to bearer. The Issuer and the Registrar may treat the registered owner as the absolute owner hereof for all purposes, whether or not this Bond shall be overdue and shall not be bound by any notice to the contrary.
Those Bonds maturing in the years 2003 to 2007, inclusive, shall not be subject to redemption prior to maturity. Those Bonds, or portions thereof in multiples of $5,000, maturing in the years 2008 to 2022, inclusive, shall be subject to redemption prior to their stated maturities, at the option of the Issuer, in such order as the Issuer may determine and by lot within any maturity, on any interest payment date on or after November 1, 2007, at par and accrued interest to the date fixed for redemption.
Official notice of such call for redemption of any of the Bonds shall be given not less than thirty (30) days prior to the redemption date by means of registered or certified mail by notice deposited in the United States mail addressed to the Paying Agent/Registrar and to the registered owner of each Bond to be redeemed at his address as shown on the registration books of the Paying Agent/Registrar. In the event a Bond is of a denomination larger than $5,000, a portion of such Bond ($5,000 or any multiple thereof) may be redeemed.
It is certified that this Bond is authorized by and is issued in conformity with the requirements of the Constitution and statutes of the State of Louisiana. It is further certified, recited and declared that all acts, conditions and things required to exist, to happen and to be performed precedent to and in the issuance of this Bond necessary to constitute the same as a legal, binding and valid obligation of the Issuer, have existed, have happened and have been performed in due time, form and manner as required by law, and that the indebtedness of the Issuer, including this Bond, does not exceed any limitation prescribed by the Constitution and statutes of the State of Louisiana.
ASSIGNMENT
FOR VALUE RECEIVED, , the undersigned, hereby sells, assigns and transfers unto the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints attorney or agent to transfer the within Bond on the books kept for registration thereof, with full power of substitution in the premises.
Dated:___________________
NOTICE: The signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or enlarg