Chapter 13.100 ISSUANCE OF TRIBAL OBLIGATIONS

(1) “Bond” means any agreement which may or may not be represented by a physical instrument, including notes, warrants, or certificates of indebtedness, that evidences an indebtedness of the Tulalip Tribes or a fund thereof, where the Tulalip Tribes agrees to pay a specified amount of money with or without interest, at a designated time or times to either registered owners or bearers.

(2) “Local improvement bonds” means bonds issued to finance a Reservation Utility Improvement District.

(3) “Obligation” means an agreement that evidences an indebtedness of the Tulalip Tribes, other than a bond, and includes, but is not limited to, conditional sales contracts, lease obligations, and promissory notes. [Ord. 76 § 20.01, 12-6-2004 (Res. 2004-467)].

13.100.020 Authority to issue bonds.

The Tulalip Tribes may provide by resolution for the payment of the whole or any portion of the cost and expense for any local improvement by bonds of the Tulalip Tribes for such RUID, but no bonds shall be issued in excess of the cost and expense of the improvement, nor shall they be issued prior to 20 days after the 30 days allowed for the payment of assessments without penalty or interest. [Ord. 76 § 20.02, 12-6-2004 (Res. 2004-467)].

13.100.030 Bond issued – Due date – Interest.

Local improvement bonds shall be issued pursuant to this title and shall be made payable on or before a date not to exceed 30 years from and after the date of issue, which latter date may be fixed by resolution of the Board, and bear interest at such rate or rates as authorized by the Board. The Board may, in addition to issuing bonds callable pursuant to Tulalip Tribes law whenever sufficient monies are available, issue bonds with a fixed maturity schedule or with a fixed maximum annual retirement schedule. [Ord. 76 § 20.03, 12-6-2004 (Res. 2004-467)].

13.100.040 Bonds – Issuer to determine amount, terms, conditions, interest, etc.

The Board on behalf of the Tulalip Tribes shall determine for the bond issue its amount, date or dates, terms not in excess of the maximum term otherwise provided in law, conditions, bond denominations, interest rate or rates, which may be fixed or variable, interest payment dates, maturity or other maturities, redemption rights, registration privileges, manner of execution, price, manner of sale, covenants, and form, including registration as to principal and interest, registration as to principal only, or bearer. Registration may be as provided under TTC 13.100.090. [Ord. 76 § 20.04, 12-6-2004 (Res. 2004-467)].

13.100.050 Interest on bonds – How payable.

The Tribal Comptroller shall pay interest on the bonds issued against local improvement funds out of the local improvement fund from which the bonds are payable. [Ord. 76 § 20.05, 12-6-2004 (Res. 2004-467)].

13.100.060 Bonds – Form – Content.

Local improvement bonds shall be in such denominations as may be provided in the resolution authorizing their issue and shall be numbered from one upwards consecutively. Each bond shall:

(1) Be signed by the Chairman of the Board and attested by the Tribal Comptroller;

(2) Have the seal of the Tulalip Tribes affixed thereto;

(3) Refer to the improvement to pay for which it is issued and the ordinance ordering it;

(4) Provide that the principal sum therein named and the interest thereon shall be payable out of the local improvement fund created for the cost and expense of the improvement, or out of the local improvement guaranty fund, and not otherwise;

(5) Provide that the bond owners’ remedy in case of nonpayment shall be confined to the enforcement of the special assessments made for the improvement and to the guaranty funds; and

(6) Be in any form, including bearer bonds or registered bonds as provided by Tribal law.

Any interest coupons may be signed by the Chairman of the Board and attested by the Tribal Comptroller, or in lieu thereof may have printed thereon a facsimile of the signature. [Ord. 76 § 20.06, 12-6-2004 (Res. 2004-467)].

13.100.070 Bonds – Reproduction of physical instrument.

When bonds are issued by the Tulalip Tribes as physical instruments, the bonds shall be printed, lithographed, typed, or reproduced and the manual or facsimile signatures of bonder, the Chairman of the Board and the Tribal Comptroller shall be included on each bond. [Ord. 76 § 20.07, 12-6-2004 (Res. 2004-467)].

13.100.080 Bonds – Sale of.

Local improvement bonds may be issued to the contractor or sold by the officers authorized by the resolution directing their issue to do so, in the manner prescribed therein at the price established by the Board. Any portion of the bonds of any issue remaining unsold may be issued to the contractor constructing the improvement in payment thereof.

The proceeds of all sales of bonds shall be applied in payment of the cost and expense of the improvement and costs of the issuance of the bonds. [Ord. 76 § 20.08, 12-6-2004 (Res. 2004-467)].

13.100.090 Registration system authorized – Appointment of financial institutions.

(1) The Tulalip Tribes shall establish a system of registering the ownership of their bonds or other obligations as to principal and interest, or principal only. Registration may include, with limitation:

(a) A book entry system of recording the ownership of a bond or other obligation whether or not a physical instrument is issued; or

(b) Recording the ownership of a bond or other obligation together with the requirement that the transfer of ownership may only be effected by the surrender of the old bond or other obligation and with the reissuance of the old bond or other obligation to the new owner.

(2) The system of registration shall define the method or methods by which transfer of the registered bonds or other obligations shall be effective, and by which payment of principal and any interest shall be made. The system of registration may permit the issuance of bonds or other obligations in any denomination to represent several registered bonds or other obligations of smaller denominations. The system of registration may also provide for any writing relating to a bond or other obligation that is not issued as a physical instrument, for identifying numbers or other designations, for a sufficient supply of certificates for subsequent transfers, for record and payment dates, for varying denominations, for communications to the owners of bonds or other obligations, for accounting, canceled certificate destruction, registration and release of securing interests, and for such other incidental matters pertaining to the registration of bonds or other obligations as the issuer may deem to be necessary or appropriate.

(3) The Tulalip Tribes may appoint a national banking association or State-chartered bank, maintaining a minimum capital surplus of $25,000,000 (collectively the “Bank”), to act with respect to an issue of its bonds or other obligations as authenticating trustee, transfer agent, registrar, and paying or other agent and specify the rights and duties and means of compensation of any such bank so acting. The Tulalip Tribes may also enter into agreements with the bank in connection with the establishment and maintenance by such bank of a nationally recognized central depository system for the transfer or pledge of bonds or other obligations.

(4) Nothing in this section precludes the Tulalip Tribes, or a trustee appointed by the Tulalip Tribes pursuant to any other provision of law, from itself performing, either alone or jointly with other issuers, fiscal agencies, or trustees, any transfer, registration, authentication, payment or other function described in this section. [Ord. 76 § 20.09, 12-6-2004 (Res. 2004-467)].

13.100.100 Bonds – Payment of costs of issuance and sale.

The proceeds of any bonds issued may be used to pay incidental costs and costs related to the sale and issuance of the bonds. Such costs include payments for fiscal and legal expenses, obtaining bond ratings, printing, engraving, advertising, establishing and funding reserve accounts and other accounts, an amount for working capital, capitalized interests for up to six months, necessary and related engineering, architectural, planning, and inspection costs, and other similar activities or purposes. [Ord. 76 § 20.10, 12-6-2004 (Res. 2004-467)].

13.100.110 Bonds – Issuer authorized to establish lines of credit.

The Board, on behalf of the Tulalip Tribes, is authorized to establish lines of credit with any national saving association or State-chartered bank to be drawn upon in exchange for its bonds or other obligations, to delegate to its fiscal officer authority to determine the amount of credit extended, and to pay interest and other finance or service charges provided such lines or credit may be secured only by specified revenues or assets of the Tulalip Tribes. The interest rates on such bonds or other obligations may be a fixed rate or rates set periodically or a variable rate or rates determined by agreement of the parties. [Ord. 76 § 20.11, 12-6-2004 (Res. 2004-467)].

13.100.120 Call of local improvement bonds.

Except when local improvement bonds have been issued with a fixed maturity schedule or with a fixed maximum annual retirement schedule as authorized under Tribal law, the Tribal Comptroller shall call in and pay the principal of one or more bonds of any issue in their numerical order whenever there is sufficient money in any local improvement fund, against which the bonds have been issued, over and above that which is sufficient for the payment of interest on all unpaid bonds of that issue. The call shall be made for publication in the official newspapers of the City of Marysville and the City of Everett in their first publication following the date of delinquency of any installment of the assessment or as soon thereafter as practicable. The call shall state that bonds No. ______ (giving the serial number or numbers of the local improvement bonds called) will be paid on the day the next interest payments are due and that interest on those bonds will cease upon that date. [Ord. 76 § 20.12, 12-6-2004 (Res. 2004-467)].

13.100.130 Nonliability of Authority.

Neither the holder nor owner of any local improvement fund shall have any claim therefor against the Tulalip Tribes, or the Authority by which it is issued, except for payment from the special assessments made for the improvement for which the bond or warrant was issued and except also for payment from the local improvement guaranty funds of the Tulalip Tribes as to bonds issued after the creation of a local improvement guaranty fund of the Tulalip Tribes, if any. The Tulalip Tribes or the Tulalip Utility Authority shall not be liable to the holder or owner of any bond, interest coupons or warrant for any losses to the local improvement guaranty fund occurring in the lawful operation thereof. A copy of the foregoing part of this section shall be plainly written, printed or engraved on each local improvement bond. [Ord. 76 § 20.13, 12-6-2004 (Res. 2004-467)].

13.100.140 Remedy of bondholders.

If the Tulalip Tribes or the Authority fails to pay any bonds or to promptly collect any local improvement assessments when due, the owner of the bonds may proceed in his own name to collect the assessment and foreclose the lien thereof in any court of competent jurisdiction and shall recover, in addition to the amount of the bond and interest thereon, five percent, together with the cost of suit. Any number of holders of bonds for any single improvement may join as plaintiffs and any number of owners of property upon which the assessments are liens may be joined as defendants in the same suit.

The owners of local improvement bonds issued by the Tulalip Tribes after the creation of a local improvement guaranty fund therein, shall also have recourse against the local improvement guaranty fund of the Tulalip Tribes. [Ord. 76 § 20.14, 12-6-2004 (Res. 2004-467)].

13.100.150 Warrants against local improvement fund authorized.

The Board may provide by resolution for the issuance of warrants in payment of the cost and expense of any local improvement, payable out of the local improvement district fund. The warrants shall bear interest at a rate or rates established by the issuing officer under the direction of the Board and shall be redeemed either in cash or by local improvement bonds for the same improvement authorized by resolution. [Ord. 76 § 20.15, 12-6-2004 (Res. 2004-467)].

13.100.160 Warrants acceptable in payment of assessments.

The Tribal Comptroller may accept warrants drawn against any local improvement fund upon such conditions as they may by ordinance or resolution prescribe, in satisfaction of:

(1) Assessments levied to supply such fund, in due order of priority of right;

(2) Judgments rendered against property owners who have become delinquent in the payment of assessments levied to supply such fund; and

(3) On payment of certificates of purchase in cases where property of delinquents has been sold under execution or at tax sale for failure to pay assessments levied to supply such fund. [Ord. 76 § 20.16, 12-6-2004 (Res. 2004-467)].

13.100.170 Installment notes – Interest certificates.

In addition to the issuance of bonds and warrants in payment of the cost and expense of any local improvement, the Tulalip Tribes may also issue and sell installment notes payable out of the local improvement district fund. Such installment notes may be issued anytime after the 30-day period allowed by law for the payment of assessments of any district without penalty or interest, and may bear any denomination or denominations, the aggregate of which shall represent the balance of the cost and expense of the local improvement district which is to be borne by the property owners therein.

Application of local improvement district funds for the reduction of the principal and interest amounts due on any notes herein provided to finance said improvement shall be made not less than once each year beginning with the issue date thereof. Appropriate notification of such application of funds shall be made by the Tribal Comptroller to the registered payees of said notes, except those notes owned by funds of the Tulalip Tribes. If more than one local improvement installment note is issued for a single district, said notes shall be numbered consecutively. All notes issued shall bear on the face thereof:

(1) The name of the payee;

(2) The number of the local improvement district from whose funds the notes are payable and the date of issue of each note;

(3) The date on which the note or the final installment thereon shall become due;

(4) The rate or rates of interest, as provided by the Board, to be paid on the unpaid balance thereof; and

(5) Such manual or facsimile signatures as are required by this title.

The reverse side of each installment note issued pursuant to this section shall bear a tabular payment record which shall indicate, at prescribed installment dates, the receipt of any local improvement district funds for the purpose of servicing the debt evidenced by said notes. Such receipts shall first be applied toward the interest due on the unpaid balance of the note, and any additional monies shall thereafter apply to reduction of the principal amount thereof. The tabular payment record shall, in addition to the above, show the unpaid principal balance due on each installment note, together with sufficient space opposite each transaction affecting said note for the manual signature of the Tribal Comptroller or other properly designated receiving officer of the Tulalip Tribes, or of any other registered payee presenting said note for such installment payments.

Whenever there are insufficient funds in a local improvement district fund to meet any payment of installment interest due on any note herein authorized, a noninterest-bearing defaulted installment interest certificate shall be issued by the Tribal Comptroller which shall consist of a written statement certifying the amount of such default interest installment, the name of the payee of the note to whom the interest is due and the number of the local improvement district from whose funds the note and interest thereof are payable. Such certificates may be registered as provided in TTC 13.100.090. The certificate herein provided shall bear the manual signature of the Tribal Comptroller or his authorized agent. The default installment interest certificate so issued shall be redeemed for the face amount thereof with any available funds in the local improvement guaranty fund.

Whenever at the date of maturity of any installment note issued pursuant to this section, there are insufficient funds in a local improvement district fund, due to delinquencies in the collection of assessments, to pay the final installment of the principal due thereon, the note shall be redeemed with any available funds in the local improvement guaranty fund for the amount of said final installment. [Ord. 76 § 20.17, 12-6-2004 (Res. 2004-467)].

13.100.180 Installment notes – Refunding.

The Tulalip Tribes may refund all of its installment or the principal thereof then outstanding payable from any one local improvement district fund by the issuance of local improvement district bonds pursuant to this title and by the payment into the Tulalip Tribes General Fund or funds holding such notes the then-outstanding principal amount of such notes plus the interest thereon accrued to the date of such refunding. The bonds shall be payable from the same local improvement district fund from which such notes were payable; shall be payable no later than the final payment date of the notes being refunded; shall be in the same total principal amount as the outstanding principal amount of the notes being refunded less any sums in the local improvement district fund the Tulalip Tribes applies to the redemption of such notes; and shall be sold at not less than par plus accrued interest to date of delivery. Any interest payable on the bonds in excess of the interest payable on assessment installments payable into the local improvement district fund shall be paid from the General Fund of the Tulalip Tribes. The principal proceeds and interest accrued to date of delivery of the bonds shall be paid into the local improvement district fund, and the notes shall be redeemed on that date. The Tulalip Tribes shall pay all costs and expenses of such refunding from monies available therefor. [Ord. 76 § 20.18, 12-6-2004 (Res. 2004-467)].

13.100.190 Consolidated RUID – Authorized purposes.

For the purpose of issuing local improvement bonds only, the Board may authorize the establishment of consolidated RUIDs. The local improvements within such consolidated districts need not be adjoining, vicinal or neighboring. If the Board orders the creation of such consolidated RUID, the monies received from the installment payment of the principal of and interest on assessments levied within original local assessment districts shall be deposited in a consolidated RUID bond redemption fund to be used to redeem outstanding consolidated RUID bonds. [Ord. 76 § 20.19, 12-6-2004 (Res. 2004-467)].

13.100.200 Refunding bonds – Limitations.

The Board may issue and sell bonds to refund outstanding RUID or consolidated RUID bonds on the earliest date such outstanding bonds may be redeemed following the date of issuance of such refunding bonds. Such refunding shall be subject to the following:

(1) The refunding shall result in a net interest cost savings after paying the costs and expenses of the refunding, and the principal amount of the refunding bonds may not exceed the principal balance of the assessment roll or rolls pledge to pay the bonds being refunded at the time of the refunding.

(2) The refunding bonds shall be paid from the same local improvement fund or bond redemption fund as the bonds being refunded.

(3) The costs and expenses of the refunding shall be paid from the proceeds of the refunding bonds, or the same local improvement district fund or bond redemption fund for the bonds being refunded, except the Tulalip Tribes or the Authority may advance such costs and expenses to such fund pending the receipt of assessment payments available to reimburse such advances.

(4) The last maturity of the refunding bonds shall be no later than one year after the last maturity of bonds being refunded.

(5) The refunding bonds may be exchanged for the bonds being refunded or may be sold in the same manner permitted at the time of sale for local improvement bonds.

(6) All other provisions of law applicable to the refunded bonds shall apply to the refunding bonds. [Ord. 76 § 20.20, 12-6-2004 (Res. 2004-467)].

13.100.210 Distribution of monies in local improvement funds to holders of bonds and warrants – Notice – Time limitation – Abandonment and transfer to General Fund.

If the Tulalip Tribes has any outstanding and unpaid local improvement bonds or warrants issued, in connection with a local improvement therein to which the local guaranty fund law is not applicable and that have been delinquent for more than 15 years, it may, by resolution, direct that the money, if any, remaining in a given local improvement fund for which no real property held in trust shall be distributed by the Tribal Comptroller on a pro rata basis, without any reference to numerical order, to the holders of outstanding bonds to warrants for each such fund, excluding the accrued interests thereon. If the outstanding bonds or warrants are not presented for payment within one year after the last date of publication of notice provided for herein, the money being held in the local improvement fund of the Tulalip Tribes shall be deemed abandoned, and shall be transferred to the General Fund of the Tulalip Tribes; provided, that the Tulalip Tribes shall publish a notice once each week for two successive weeks in the local papers of the City of Marysville and the City of Everett that RUID bonds for ________ RUID Improvement Nos. ________ to ________ inclusive must be presented to the Tulalip Tribes for payment not later than one year from this date, or the money being held in the local improvement fund of the Tulalip Tribes shall be transferred to the Tulalip Tribes General Fund. [Ord. 76 § 20.21, 12-6-2004 (Res. 2004-467)].

13.100.220 Declaration of obsolescence and cancellation upon distribution of monies, untimely presentment, or lack of money in local improvement fund.

After the Tulalip Tribes has distributed the money in a local improvement district fund in accordance with TTC 13.100.210 or such bonds or warrants are not presented for payment within one year after the last date of publication of notice provided for in TTC 13.100.210, the Tulalip Tribes may, by resolution, declare such bonds and warrants, without any reference to numerical order, to be obsolete, cancel the same, and terminate all accounting thereon, and clear such bonds and warrants off their records including any unguaranteed bonds or warrants outstanding against districts in which there remains no money in the given local improvement fund. [Ord. 76 § 20.22, 12-6-2004 (Res. 2004-467)].

13.100.230 Cancellation procedure where no money in local improvement fund.

If the bonds or warrants outstanding against the RUID are unguaranteed and if there remains no money in the appropriate local improvement fund to pay them, and if no real property is held in trust for the fund to pay them, and if no real property is held in trust for the fund, the Tulalip Tribes shall give notice in the same manner as provided in TTC 13.100.210, stating the RUIDs ________ (bonds or warrants) for ________ RUID improvements Nos. ________ to ________ inclusive will be canceled as provided in TTC 13.100.220, unless such bonds or warrants are presented to the Tribal Comptroller within one year from the date of last publication of the notice, together with good cause shown as to why such cancellation should not take place. If such bonds or warrants are not presented, with good cause shown, within one year after the last date of publication of such notice, they may be canceled as provided in this chapter. [Ord. 76 § 20.23, 12-6-2004 (Res. 2004-467)].

The issuance of bonds and obligations under this chapter is made pursuant to the Constitution of the Tulalip Tribes, approved by the United States Secretary of the Interior (“Secretary”).