ORDINANCE Of  No. 2015-05, Enacted May 6, 2015 CLARKS SUMMIT BOROUGH Lackawanna County, Pennsylvania  $162,572.52  GENERALOBLICATION NOTE, SERIES-2015  WHEREAS, the Governing Body of the above-named Local Government Unit (the "Local Government Unit") deems it advisable to borrow the amount shown above, pursuant to the Local Government Unit Debt Act (the "Act"), for the purpose of capital items listed on Exhibit P hereto (the  "Project"); ;and  WHEREAS, the Local Government Unit has obtained estimate(s) of the cost(s), and has determined the useful life, of the Project by any one or more of the following methods: taking bids, obtaining an option for a fixed price contract or obtaining estimates from registered architects, professional  engineers or other persons qualified by experience; and  WHEREAS, LANDMARK COMMUNITY BANK (the "Bank") has presented a written purchase contract (the "Purchase Contract"), attached hereto as Exhibit PC, to purchase a note, in the amount of $162,572.52 consisting of its General Obligation Note to be issued by the Local Government  Unit in order to achieve the financing oft the! Project;  NOW,THEREFORE, iti is hereby enacted that:  Section 1 - Authorization.  1.01. The Local Government Unit hereby authorizes the incurrence, and the increase of its nonelectoral indebtedness in the principal amount set forth above, to be evidenced by an installment note, (the "Note"), in the form attached hereto as Exhibit N, in order to pay the costs oft the Project. The Note will be dated the date of its delivery, will bear interest at the rate and will be payable (or will be subject to  redemption or will mature) on the dates shown on Exhibit PC.  1.02. The ChiefLegislative Offiçer and the Chief Administrative Officer or their duly elected and acting successors (the' "Designated Officers") are hereby authorized and directed to execute and deliver such documents, and to do and perform all acts necessary and proper for the issuance and further security of the  Note, including its execution and sealing and delivery to thel Bank.  1.03. The Designated Officers arel hereby further authorized and directed to provide to the Bank, a copy of the audited financial statements oft thel Local Government Unit no later than 180 days, and a copyo of the budget of the Local Government Unit no later than 60 days, after each fiscal year end of the Local  Government Unit while thel Note is outstanding.    Section 2--] Preparation ofl Debt Statement.  As required by $8110 of the Local Government Unit Debt Act, the Designated Officers of the Local Government Unit shall prepare, execute and acknowledge the Debt Statement, and its accompanying  Borrowing Base Certificate, forms ofwhich are attached! hereto as Exhibit DS.  Section 3 - Security and Payment ofl Note.  3.01. The Note shall be a general, full faith and credit, unlimited tax obligation of the Local Government Unit. The Local Government Unit hereby covenants with the Bank and with subsequent holders, from time to time, oft the Note that it will (a) include the amount of the debt service for each fiscal year in which any installment of principal or interest is payable ini its budget for that year, (b) appropriate such amounts to the payment of such debt service and (c) duly and punctually pay or cause to be paid the principal of and interest on the Note on the dates at the place and in the manner stated therein according to the true intent and meaning thereof; for such budgeting, appropriation and payment, the Local Government  Unit hereby pledges its full faith, credit and taxing power.  3.02. The Local Government Unit does hereby create, and orders to be established (in its name and identified by reference to the Note), a Sinking Fund for the payment of the Note with the Bank, and does further covenant to maintain such Sinking Fund with al bank, in accordance with the Local Government Unit Debt Act, until the Note is paid in full, The Designated Officer is hereby authorized and directed to contract with the Bank: fori its services in such capacity, except as the same may be included in the Purchase  Contract.  Section 4 -- Tax Covenants.  4.01. The Local Government Unit hereby covenants that no part of the proceeds of the Note will be used, at any time, directly or indirectly, in a manner which, ifsuch use had been reasonably expected on the date of issuance of the Note, would have caused the Note to be an "arbitrage bond" within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended (the "Code") and the Regulations thereunder applicable to the Note and that it will comply with the requirements of that Section and the  Regulations throughout the term ofthel Note.  4.02. If: (a) the principal amount of the Note plus the aggregate principal amount of all other tax-exempt obligations issued and to be issued by or on behalf of the Local Government Unit during the current çalendar year exceeds $5,000,000 ($10,000,000 in the case of certain debt issued for educational purposes); and if(b) the gross proceeds oft the Note are invested at a yield greater than the yield on thel Note; and if(c) the gross proceeds of the Note are not expended or deemed to have been expended either within six months from the date ofi issuance, or, ift the Project is a construction project, within two years from the date ofi issuance (and according to certain periodic expenditure thresholds), all pursuant to $1.148.7 of the Regulations, thel Local Government Unit covenants that it will rebate to the U.S. Treasury, at the times and in the manner required by the Code, the difference (if a positive number) between the investment income received on the Note proceeds and the investment income that would have been earned had the Note  proceeds been invested at the yield oft the Note.  4.03. The Local Government Unit hereby designates the Note as a Qualified Tax-Exempt Obligation pursuant to Section 265(b)(3) of the Code and represents that the total amount of obligations designated and to be designated by or on behalf of the Local Government Unit during the current calendar  year does not and is not expected to exceed $10,000,000.    4.04. The Local Government Unit will file IRS Form 8038-G (or 8038-GCi if applicable) and any other forms or information required by the Code or the Regulations to be filed with the Internal Revenue Service in order to further ensure the exclusion oft the interest on thel Note from gross inçome tax for federal  income tax purposes. Section 5- Award.  Having determined that aj private sale by negotiation of thel Note isi int the best financial interest of the Local Government Unit, the Governing Body hereby awards and sells the Note to the Bank in accordance with the Purchase Contract which, as presented at this meeting, is hereby accepted and shall be  executed by thel Designated Officers. Section 6--1 Note Ordinance a Contract.  This Ordinance shall be deemed tol be a contract with the holders, from time to time, ofthel Note.  DULY ENACTED on May 6, 2015 CLARKS SUMMIT BOROUGH Gfa  Germaine Carey Council! President  (SEAL) Attest:  BoroughM  E    CLARKS SUMMIT! BOROUGH Lackawanna County, Pennsylvania  DESCRIPTION OF PROJECT Purchase of2016 Dump Truck  EXHIBITP    FORM OF NOTE  CLARKS SUMMITI BOROUGH Lackawanna County, Pennsylvania  GENERAL OBLIGATION NOTE, SERIES-2015  $162,572.52 Principal Amount  1.54% Interest Rate  May 15, 2020 Maturity Date  Dated Date  The above named Local Government Unit, intending to be legally bound, promises to pay to the registered owner shown on the attached registration form in such coin or currency as at the time and place of payment is legal tender for the payment of public and private debts, without any right of set-off, the Principal Amount set forth above in level payments ofprincipal together with interest on the dates and in the amounts indicated on the attached amortization schedule. Any outstanding principal and accrued interest shall be due and payable ini full on May 15, 2020. The Local Government Unit acknowledges that the level payment of principal and interest is calculated on the assumption that each periodic payment will be made on the date when due, and ift there is any variation in the actual payment dates, there may be an additional amount due upon maturity of this Note. The Principal Amount outstanding under this Note will bear  interest at ai rate per annum which is at all times equal to 1.54%.  Interest will be calculated on the basis of a year of 360 days for the actual number of days in each The Local Government Unit has the right to prepay all or part of the outstanding principal and The Local Government Unit hereby covenants with the registered owner hereof that it will include the amount oft the debt service payable hereunder in its budget for the applicable fiscal year, will appropriate such amounts to the payment of such debt service and will duly and punctually pay or cause to be paid the entire principal hereof and the interest hereon at the place, on the dates and in the manner stated above, according to the true meaning and intent hereof, and for such budgeting, appropriation and payment, the  interest period.  interest without penalty or premium.  Local Government Unit hereby pledges its full faith, credit and taxing power.  No reçourse shall be had for the payment of the principal of or the interest on this Note, or for any claim based hereon, against any officer, agent or employee, past, present or future, oft the Local Government Unit, as such, either directly or through the Local Government Unit, whether by virtue of any constitutional provision, statute or rule ofl law, or by the enforcement of any assessment or penalty, or otherwise; all such liability of such officers, agents or employees is hereby renounced, waived and released as a condition of  and as consideration for thei issuance, execution and acceptance ofthis Note.  In the event of a default hereunder, the entire principal balance hereof shall, at the option of the holder, accelerate and shall be and become immediately due and payable without notice or demand and the Local Government Unit will pay the registered owner's reasonable costs and expenses incurred in collection  of the amounts due hereunder.  N-1    This Note evidences a borrowing for a Project under the Local Government Unit Debt Act of the Commonwealth ofP Pennsylvania, as amended, pursuant to an Ordinançe of the Local Government Unit duly  and regularly enacted in accordance with the provisions oft the Debt Act.  Iti is hereby certified that all acts, conditions and things required to be done, to occur or be performed precedent to and in the issuance oft this Note, or in the creation oft the indebtedness of which this Note is evidence, have been done, have occurred and have been performed in regular and due form and manner as required by law, and that the debt evidenced by this Note is not in excess ofa any constitutional or  statutory limitation.  This Note is a Qualified Tax-Bxempt Obligation within the meaning of Section 265(b)(3) of the  Internal Revenue Code of 1986, as amended.  WITNESS the due execution hereof as of thel Dated Date set forth above.  ATTEST:  CLARKS SUMMIT: BOROUGH   By:  By:  Se, Officer  Officer  CLASS  N-2    REGISTRATIONIFORM  This Note can be validly negotiated only upon proper execution of the form set forth below. The Local Government Unit shall treat the registered owner of this Note, as noted on this Note and on its books, as the absolute owner hereof, and shall not be affected by any changed circumstances, nor by any notice to  the contrary.  Original Registered Owner LANDMARK COMMUNITY BANK  Date  Transferor  Subsequent Purchaser  For value received, the last-named Transferor, by its due execution above, hereby, on the above-stated date, sells, transfers and negotiates this Note to the last-named Subsequent Purchaser, warranting that this transfer is effective and rightful; that this Note is genuine and has not been materially altered; and that it has no knowledge ofa any fact which might impair the validity ofthisl Note.  N-3    FIRST. ADVEKIISEMENT  CLARKS SUMMIT BOROUGH  At a meeting to be held on May 6, 2015 at the address stated below, the Governing Body of the above Local Government Unit will act on an Ordinance (ofwhich this notice is a summary) authorizing the issuance of and awarding its $162,572.52, principal amount, Note, at a private sale. If enacted, the Ordinance will award the Note to the purchaser thereof, approve the form ofNote, and fix the rate ofi interest to be paid, pledge the full faith and credit of the Local Government Unit for the payment thereof, create a Sinking Fund and authorize the proper officers to take the necessary steps toi issue the Note. The Funds to be obtained from the borrowing will be used for capital acquisition, including the purchase ofa 2016 dump  truck.  A copy of the full text of the proposed Ordinance may be examined by any citizen in the office of the Local Government Unit at: 304 South State Street, Clarks Summit, Pennsylvania, between the hours of9  A.M. and 3. P.M., on regular business days.  CLARKS SUMMIT BOROUGH  By: Virginia Kehoe Title: Borough Manager Telephone: 570-586-9316    Virginia Kehoe From: Sent: To: Subject: Attachments: Virginia: know or Sharon Venturi Legal Clerk  legals legals egaselimeshamcccom Wednesday, April 22, 2015 12:40PM  Virginia Kehoe AD81736231.Jn4pdr  Fwd: Confirmation: Ad 81736231 for CLARKS SUMMIT BOROUGH  Here is a copy of the ad, along with the cost that my colleague sent to: me. Any problems, you can either let me  you can let Joann know. Her email isj lsi@umeslamoekcom  Forwarded message  From: THE SCRANTON TIMES jcolesQtimesshamrock.com> Subject: Confirmation: Ad 81736231 for CLARKS SUMMIT BOROUGH  Date: Wed, Apr 22, 2015 at 9:57 AM To: Ggl@tmesshamneiscon  Sharon Venturi Legal Clerk Times Shamrock ext. 5270  570-348-9100; 570-622-6632; 570-644-6397; 570-265-2151 or 800-228-4637 email: cal@timeshamrekcon or sventuri@timesshamrock.com Scranton Times-Tribune The Daily Review Pottsville Republican and Evening Herald Shamokin News Item Wyoming County Examiner Susquehanna Independent Citizen Standard  1    THE SCRANTON TIMES DBA THE TIMES TRIBUNE PO BOX 3478 SCRANTON PA 18505-0478 (570)348-9183 ORDER CONFIRMATION  Salesperson: COLES-SAFFEL JOANNE X535 Printed at 04/22/15 09:57 by jcole  Acct #: 6290 CLARKS SUMMIT BOROUGH 304 S STATE STREET CLARKS SUMMIT PA 18411  Ad #: 81736231 Start: 04/26/2015 Stop: 04/30/2015 Times Ord: 1 6COL 1.00 X 28.00 Words: 127 Total 6COL 28.00 Class: X1905 CARS Rate: CLCBL Given by: * Created:  Status: N Times Run: *** Cost: 179.25  Contact: UNISYS CREATED  Ad Descrpt: INVITATION TO BID 2004 C Last Changed: jcole 04/22/15 09:57  Phone: Fax#: Email: Agency: STTT CL STTT HOTP STIN INTR PSPS CL TSEC CL  (570)586-9316 (570)586-3024 VIRGINIAKEHOEQEPIX.NET  jcole 04/22/15 09:54  PUB ZONE ED TP START INS STOP SMTWTFS  3 S 04/26 3 S ( 04/26 6S 04/26 3s0 04/26 3S 04/30  AUTHORIZATION  Under this agreement rates are subject to change with 30 days notice. In the event of a cancellation before schedule completion, I understand that the rate charged will be based upon the rate for the number of insertions used.  Name (print or type)  Name (signature)  INVITATION TOE BID 2004 Cheviolet 2500 4X4 pickup, with 81,000 miles. Trucki includes 8fL West- ern controls Salt Spreader and 8t Western with motor 1993 and GMC cab Top, Kick 4-wheel drive. with 36,220 GWW. Gspeed, standard transmission withh 10ft hilo Glenhill transfer Jet, box. Sueam Trucki and, includes 10ft dump body, braken! hoist. Central hy- draulics and airrides seat. AII equipment has been well main- tained and can be viewed att the Bor- ough Garage at 308 Davis Street, Clarks Summit bya appointment. Sealed bids to purchase the above equipment willbe aocepted atthe 8or- ough Office, 304 South State Street, Clarks Summit, until 3:00 pm on May 6,2015. Please contact the Clarks Summit Borough Office at586-9316f for more delails. Virginial Kehoe Clarks Summit Borough! Managet#    SECOND. ADVERTISEMENT  CLARKS SUMMIT! BOROUGH  At a meeting held May 6, 2015, the Governing Body of the above-captioned Local Government Unit enacted an ordinance authorizing issuance of $162,572.52, principal amount of its Capital Note, and the private sale thereoftol LANDMARK COMMUNITY BANK, at par bearing interest at the rate of1.54%,  per annum,  The Note is a general obligation of the Local Government Unit and the officers of the Local Government Unit are directed to do all acts necessary and proper for thei issuance and securing of said Note.  No amendments were made during final passage ofthe Ordinance.  The final text ofthe Ordinance as enacted is available for examination by any citizen int the office of the Local Government Unit at 304 South State Street, Clarks Summit, Pennsylvania, between the hours of9  A.M. and 3 P.M. on regular business days.  By: Virginia Kehoe Title: Borough Manager Telephone: 570-586-9316    CLARKS SUMMIT: BOROUGH Lackawanna County, Pennsylvania TERMS OF PROPOSAL  I,ad duly authorized officer of Landmark Community Bank, certify that this Proposal was duly made and delivered to the Local Government Unit not later than the date oft the enactment oft the Ordinance and, on behalf of the Bank, do hereby covenant and agree, upon award and acceptance of this Purchase Contract, to purchase the General Obligation Note of the Local Government Unit described in the attached Ordinance, upon satisfaction of the conditions and/or receipt of the materials listed in Section BI hereof, and  having the terms described in Section A hereof, as follows:  SECTIONA:  1. Principal Amount: $162,572.52 2. Maturity Date: May15,2020  3. Interest Rate: 1.54% per annum, per. 360 days year. 4. Interest Payment Dates: See attached amortization schedule. 5. Principal Payment Dates and amounts: See attached amortization schedule.  6. Prepayment penalty: None  7. The Project is described as: Purchase ofa 2016 dump truck.  8. Project Cost: $162,572.52  10. Estimated (weighted average) useful life ofl Project: 7Years.  EXHIBIT PC    SECTION. B:  1. Ad duplicate original oft the transcript ofp procedingsautiorizing the issuance oft the Note; 2. If the Note is in a principal amount more than the lessor of $125,000 or 30% of the nonelectoral debt limit of the Local Government Unit, satisfactory evidence of the approval, or deemed approval, byt the Department ofCommunity yand Economic Development ofs such transcript. 3. AF Federal Tax Certificate, ini form and substance satisfactory to the Bank;  4. An Opinion oft the Solicitor for thel Local Government Unit dated the date of delivery of and payment for the Note to the effect that the proceedings for the authorization and issuance oft the Note have been duly and properly taken; that the Note will be a valid and binding obligation of the Local Government Unit, enforceable in accordançe with its terms; that the Federal Tax Certificate of the Local Government Unit is not unreasonable; that interest on the Note is exempt from Federal, Commonwealth of Pennsylvania and local taxation; and that the Note is a Qualified Tax-Bxempt Obligation under Section 265(b)(3) oft the  Internal Revenue Code of 1986, as amended;  5. Executed Note;  6. Designation oft the Note as a Qualified' Tax-Exempt Obligation under Section 265(b)(3)ofthe 7. Annually, no later than 180 days after the fiscal year end of the Local Government Unit, a 8. Annually, no later than 60 days after thei fiscal year end oft the Local Government Unit, a copy  Internal Revenue Code of 1986, as amended;  copyoft the audited financial statements oft thel Local Government Unit; and  oft the budget oft thel Local Government Unit.  This proposal is subject to acceptance no later than 10:001 P.M., March 6, 2015.  LANDMARK COMMUNITY BANK  By:  Title: Assistant Vice President