Chapter 3.16
BONDS
Sections:
3.16.010 Negotiable bonds – Authorized.
3.16.020 Negotiable bonds – Contents.
3.16.030 Negotiable bonds – Payment of principal and interest.
3.16.040 Negotiable bonds – Registration.
3.16.050 Revenue bonds – Authorized.
3.16.060 Revenue bonds – Purposes for issuing – Included costs.
3.16.070 Revenue bonds – Form – Terms – Interest – Execution and signature.
3.16.080 Revenue bonds – Payment – Authorization by resolution.
3.16.090 Revenue bonds – Deemed negotiable instruments.
3.16.100 Revenue bonds – Remedy of bondholder.
3.16.110 Revenue bonds – Optional covenants.
3.16.120 Revenue bonds – Covenants enforceable.
3.16.130 Funding and refunding revenue bonds.
3.16.140 Local advertisement required.
3.16.010 Negotiable bonds – Authorized.
Whatcom County may contract indebtedness for general county purposes subject to the limitations on indebtedness provided for in RCW 36.76.010, 36.67.020, and 39.36.020(2). (Ord. 79-30 § 1 (part)).
3.16.020 Negotiable bonds – Contents.
The bonds shall bear the date of issue, shall be made payable to bearer and bear interest at a rate determined by the county legislative authority, payable semiannually, with coupons attached for each interest payment. Except as otherwise provided in RCW 39.44.100, the bonds and each coupon shall be signed by the county executive and shall be attested by the clerk of the county council, and the seal of the county council shall be affixed to each bond, but not to the coupon. Each bond shall be printed, engraved, or lithographed on good bond paper. (Ord. 82-16 (part); Ord. 79-30 § 1 (1)).
3.16.030 Negotiable bonds – Payment of principal and interest.
Bonds issued pursuant to this chapter shall be serial in form and maturity, and interest shall be paid and the principal of the bond retired by an annual tax levy in accordance with the provisions of RCW Chapter 39.44 and by any other moneys lawfully available and pledged therefor. (Ord. 79-30 § 1(2)).
3.16.040 Negotiable bonds – Registration.
Before the bonds are delivered to the purchaser, they shall be presented to the county treasurer, who shall register them in a book kept for that purpose and known as the bond register, in which register he shall enter the number of each bond, its date of issue and maturity, amount, rate of interest, to whom and when payable. (Ord. 79-30 § 1(3)).
3.16.050 Revenue bonds – Authorized.
The Whatcom County council may authorize issuance of revenue bonds to carry out the lawful powers granted under the laws of the state of Washington and the Whatcom County Charter. (Ord. 79-30 § 2 (part)).
3.16.060 Revenue bonds – Purposes for issuing – Included costs.
A. The county council may authorize the issuance and sale of revenue bonds from time to time in such amounts as it deems necessary to provide sufficient funds for the carrying out of county powers, including acquisition; construction; reconstruction; maintenance; repair; additions; operations of parks and recreations; flood control facilities; pollution facilities; parking facilities, and any other county purpose from which revenues can be derived.
B. Included in the costs thereof shall be any necessary engineering, inspection, accounting, fiscal, and legal expenses, the cost of issuance of bonds, including printing, engraving and advertising and other similar expenses, and the proceeds of such bond issue are available for all such purposes. (Ord. 79-30 § 2(1)).
3.16.070 Revenue bonds – Form – Terms – Interest – Execution and signature.
Revenue bonds may be either registered as to principal only or shall be bearer bonds; shall be in such denominations, numbered, bear such date, be payable at such time or times up to a maximum period of not to exceed 30 years and payable at the office of the county treasurer, and such other places as determined by the county council; shall bear interest payable semiannually and evidence to maturity by coupons attached to the bonds; the coupons shall bear interest at rate or rates authorized by the county council; bonds shall be executed by the county executive and attested by the clerk of the county council, and the seal of the county council shall be affixed to each bond, but not to the coupon; and facsimile signatures of the executive and clerk may be imprinted on the coupons in lieu of original signatures. (Ord. 79-30 § 2(2)).
3.16.080 Revenue bonds – Payment – Authorization by resolution.
Revenue bonds issued pursuant to Sections 3.16.050 through 3.16.070 shall be solely payable out of the operating revenues of the county. Such bonds shall be authorized by ordinance of the county council, which ordinance shall create a special fund or funds into which the county may be bound and obligated to set aside and pay such part or parts, or all of, a fixed proportion of, or fixed amounts of gross revenue received by the county from moneys for services or activities as stated in the ordinance, for the purpose of paying the principal of and interest on such bonds as the same shall become due, and, if deemed necessary, to maintain adequate services therefor. Such fund or funds shall be drawn upon solely for the purpose of paying the principal and interest upon the bonds issued. Any balance remaining in such fund or funds, after all bonds have been redeemed and all interest paid, shall be paid into the operating revenue fund from which the bond redemption payments were made. (Ord. 82-16 (part); Ord. 79-30 § 2(3)).
3.16.090 Revenue bonds – Deemed negotiable instruments.
Revenue bonds issued pursuant to Sections 3.16.050 through 3.16.070 shall be deemed to be negotiable instruments as provided in RCW 36.67.540. (Ord. 79-30 § 2(3)).
3.16.100 Revenue bonds – Remedy of bondholder.
Should the county fail to set aside and pay into such fund or funds the payments provided for in the ordinance mentioned in Section 3.16.090, the holder of any such bonds may bring suit to compel compliance with the provisions of the ordinance. (Ord. 82-16 (part); Ord. 79-30 § 2(4)).
3.16.110 Revenue bonds – Optional covenants.
A. Covenants of the bonds may be provided as the county council deems necessary to secure the payment of the principal and interest on such bonds and may, but shall not be required to, including covenants to create a reserve fund or account and to authorize the payment or deposit of certain moneys therein for the purpose of securing the payment of such principal and to maintain an adequate coverage over annual debt service; and to make any and all other covenants not inconsistent with the provisions of state law which will increase the marketability of such bonds.
B. The council may also provide that revenue bonds payable out of the same source or sources may later be sold on a parity with any revenue bonds being issued and sold. (Ord. 2009-027; Ord. 79-30 § 2(5)).
3.16.120 Revenue bonds – Covenants enforceable.
The provisions of the bond and the ordinance authorizing issuance of the bonds shall constitute a contract with the holder of such bonds and be enforceable by the owner or holder in an appropriate action in the Superior Court of the state of Washington in and for Whatcom County. (Ord. 82-16 (part); Ord. 79-30 § 2(6)).
3.16.130 Funding and refunding revenue bonds.
A. The county council may by ordinance, from time to time, provide for the issuance of funding or refunding revenue bonds to fund or refund any outstanding revenue bonds and any premiums due thereon, and matured coupons evidencing interest upon any such bonds at or before maturity of such bonds, and parts of all of various series and issues of outstanding revenue bonds and matured coupons in the amount thereof to be refunded.
B. The council shall create a special fund for the sole purpose of paying the principal of and interest on such funding or refunding revenue bonds, into which fund the commission shall obligate and bind the county to set aside and pay any part or parts of, or all of, or a fixed proportion of, or a fixed amount of the revenue of the facility of the county sufficient to pay such principal and interest as the same shall become due, and, if deemed necessary, to maintain adequate reserves therefor.
C. The tax revenue of the county may not be used to pay, secure, or guarantee the payment of principal of and interest on such bonds.
D. The county may exchange such funding or refunding bonds for the bonds and coupons being funded or refunded, or it may sell such funding or refunding bonds in the manner, at such price and at such rate or rates of interest as the council shall deem to be for the best interest of the county, and its inhabitants, either at public or private sale. (Ord. 82-16 (part); Ord. 79-30 § 3).
3.16.140 Local advertisement required.
A. All county contracts for the sale of bonds shall include a provision whereby the bond underwriter shall:
1. Advertise notice of the sale of county bonds prior to each such sale in a newspaper of general circulation within Whatcom County; or
2. Advertise notice, upon an annual basis, that the underwriter from time to time may sell county bonds and that potential investors may contact the underwriter for further information. The notice shall be published in a newspaper of general circulation within Whatcom County.
B. The notices of sale provided for in subsection A of this section shall also contain, at a minimum, the name, address and the phone number of the underwriter or other party to whom inquiries concerning the bond sales may be directed. (Res. 84-3).