BOROUGH OF CLARKS SUMMIT ORDINANCE NO.60F2011  AN ORDINANCE OF THE BOROUGH OF CLARKS SUMMIT AUTHORIZING THE ISSUANCE OF A TAX AND REVENUE ANTICIPATION NOTE IN THE AGGREGATE PRINCIPAL AMOUNT OF THREE HUNDRED THOUSAND AND 00/100 ($300,000.00) DOLLARS, PROVIDING FOR THE DATE, DENOMINATION, INTEREST RATE, MATURITY DATE, PLACE OF PAYMENT AND PREPAYMENT PROVISIONS IN RESPECT OF THE NOTE; ACCEPTING THE. PROPOSAL OF PNC BANK, FOR THE. PURCHASE OFTHEI NOTE; PROVIDING FOR THE SECURITY OF THE NOTE; AUTHORIZING THE PROPER OFFICES TO EXECUTE AND DELIVER THE NOTE; AUTHORIZING AND DIRECTING THE PREPARATION, CERTIFICATION AND FILING OF THE PROCEEDINGS WITH THE DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT; PROVIDING FOR THE ESTABLISHMENT OF A TAX DEPOSITORY FUND FOR THE DEPOSIT OF TAX RECEIPTS AND AUTHORIZING THE APPROPRIATE OFFICIALS OF CLARKS SUMMIT BOROUGH TO EXECUTE ALL DOCUMENTS AND UNDERTAKE ALL SUCH ACTION AS NECESSARYTO COMPLETE THE TAX. ANTICIPATION NOTE PROCEBDINGS.  WHEREAS, Council of the Borough of Clarks Summit, County of Lackawanna, Commonwealth of Pennsylvania, hereinafter (the "Borough") anticipates receiving taxes and revenues during the fiscal year beginning January 1,2012,which are as yet uncollected; and  WHEREAS, the Borough has estimated its expected taxes, revenues and expenditures for the upcoming fiscal year and anticipates that it may experience a cash flow deficit during some  portions ofs such fiscal year; and  WHEREAS, the Borough has therefore determined to borrow for the purpose of meeting current expenses by issuing Notes to be repaid from such anticipated taxes and revenues, all in  accordance with the Local Government Unit Debt Act (the "Debt Act"); and  WHEREAS, the Borough has received an acceptable proposal for the purchase of its Tax WHEREAS, as required by Section 8126 of the Debt Act, the authorized officers of the Borough have heretofore made an estimate of the monies to be received during the period when the said Tax and Revenue Anticipation Note will be outstanding from taxes then levied and assessed and revenues and will execute of a certificate with respect thereto (the "Certificate as to Taxes and  and Revenue Anticipation Note hereinafterd described; and  Revenues") certifying the said estimate.  NOW THEREFORE, BEI IT ORDAINED by the Council of the Borough of Clarks Summit, Borough of Clarks Summit, County ofLackawanna, Commonwealth of Pennsylvania, that:    SECTION 1.  For the reasons and purposes cited above, the Borough hereby authorizes the issuance of a Tax and Revenue Anticipation Note ini the aggregate principal amount ofThree Hundred Thousand and 00/100 ($300,000.00) Dollars in anticipation of the receipt of current taxes and revenues during the fiscal year commencing January 1, 2012. Said Note to be sold and delivered as hereinafter  provided.  SECTION2.  The President of Clarks Summit Borough Council and other appropriate officials of the Borough of Clarks Summit are hereby authorized and directed to prepare and verify a certified copy of this Ordinance and a true and correct copy of the accepted proposal for the purchase oft the Note all as required by Section 8128 of the Debt Act, and to file all of the above, together with the executed copy of the Certificate as to Taxes and Revenues, the contents of which are hereby approved, with the Department of Community and Economic Development of the Commonwealth of] Pennsylvania. The President of Council and other appropriate officials of the Borough of Clarks Summit are also hereby authorized and directed to prepare and verify a certificate indicating the cumulative cash flow deficit calculated in accordance with Section 103 of the Internal Revenue  Code of1954, as amended, and the Regulations promulgated thereunder.  SECTION3.  The Note shall be designated 2012 Tax and Revenue Anticipation Note, shall be issued in the face amount of Three Hundred Thousand and 00/100 ($300,000.00) Dollars and shall bear interest at a "Bank Qualified Tax Exempt Rate" of 1.99% per annum and shall be substantially in the form as attached hereto as Exhibit' "A", which is incorporated herein by reference.  SECTION4.  The Note shall be executed by the President of the Council of Clarks Summit Borough and such other officials of the Borough of Clarks Summit as are necessary and shall have the corporate seal of the Borough of Clarks Summit affixed thereto, duly attested by the Secretary of Clarks Summit Borough. The Manager of Clarks Summit Borough is hereby authorized and directed to deliver the note to PNC Bank and to take such other action as may be necessary or appropriate in order to effectuate the issuance and sale of the Note, all in accordance with this Ordinance and the  Debt Act.  SECTION 5.  The Note shall be secured by pledge of, security interest in, and a lien and charge on, the taxes and/or all other revenues, as the case may be, to be received by the Borough during the period when the Note is outstanding; and the President of Clarks Summit Borough Council and/or other officials of the Borough of Clarks Summit are hereby authorized ad directed to execute such financing statements as may be necessary under the Uniform Commercial Code and Section 8125 of  the Debt Act to fully perfect said pledge, security interest, lien and charge.  SECTION6.    The Borough hereby covenants that it will make no use of the proceeds of the Note which would cause the Note to be an "arbitrage bond" within the meaning of Section 148 of the Internal Revenue Code of 1986 and the regulations thereunder and that it will comply with the requirements of said Section and the regulations throughout the term of the Note. The Borough will not make any investment inconsistent with the foregoing covenant. The Note is hereby designated as a  "Qualified Tax Exempt Obligation" pursuant to Section 265(b)(3) ofs said Code.  SECTION7.  The Borough hereby ratifies acceptance oft the proposal submitted by PNC Bank as accepted by Borough Council on this 7th day of December, 2011. A copy of the PNC Bank proposal and  commitment letter are attached. SECTION8.  Ifa any sentence, clause, section or part of this Ordinance is for any reason found to be unconstitutional, illegal or invalid, such unconstitutionality, illegality or invalidity shall not affect or impair any oft the remaining provisions, sentences, clauses, sections or parts oft this Ordinance. Itis hereby declared as the intent of the Council of the Borough of Clarks Summit that this Ordinance would have been adopted had such unconstitutional, illegal or invalid sentence, clause, section or  part thereofnot beeni included herein.  SECTION9.  This Ordinance shall become effective immediately upon passage.  SECTION10.  This Ordinance is enacted by Council of the Borough of Clarks Summit under the authority of the Act of Legislation, February 1, 1966, P.L. (1965) No. 581 $1005, as amended 1979, November 2, P.L. 458 No. 94, 53 P.S. $46005, et seq., known as the Borough Code and any other  applicable law arising under the laws of the Commonwealth of Pennsylvania.  Approved on the 7h day ofl December, 2011.  eat Cah Germaine Carey, President Clarks Summit Borough Council Clarks Summit Borough 2424  ATTEST: dH Virginia Kehoe, Borough Secretary/Manager  Passed by Clarks Summit Borough Council on this 7th day of December, 2011, receiving the  affirmative votes of  Lp  negative votes of  -