HomeMy WebLinkAbout46-98 - Res. Adopting System of Registration of Bonds and Obligations of Mason County MASON COUNTY,WASHINGTON
RESOLUTION NO.
A RESOLUTION of the Board of Commissioners of Mason County,
Washington, adopting a system of registration of bonds and obligations of the
County.
WHEREAS, Section 149(a) of the Internal Revenue Code of 1986, as amended, requires
municipal bonds and obligations offered to the public having a maturity of more than one year to be
in registered form as a condition of the exclusion from gross income for federal income tax
purposes of the interest on those bonds and obligations; and
WHEREAS, RCW 39.46.030 authorizes Mason County (the "County") to establish a
system of registering the ownership of their bonds or obligations as to principal and interest, or
principal only; NOW, THEREFORE,
BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF MASON, COUNTY,
WASHINGTON, as follows:
Section 1. Definitions. The following words have the following meanings when used in
this resolution:
(a) "Bond" or "bonds" has the meaning defined in RCW 39.46.020(1), as the
same may be amended from time to time.
(b) "County" means Mason County, Washington.
(c) "Fiscal Agencies" means the duly appointed fiscal agencies of the State of
Washington serving as such at any given time.
(d) "Obligation" or "obligations" has the meaning defined in
RCW 39.46,020(3), as the same from time to time may be amended.
(e) "Registrar" means the person, persons or entity designated by the County
to register ownership of bonds or obligations under this resolution or under a resolution of the
County authorizing the issuance of such bonds or obligations.
Section 2. Findings. The Board of Commissioners of the County finds that it is in the
County's best interest to establish a system of registering the ownership of the County's bonds
and obligations in the manner permitted by law.
Section 3. Adoption of Registration System. The County adopts the following system of
registering the ownership of its bonds and obligations.
(a) Registration Requirement. All bonds and obligations offered to the public,
having a maturity of more than one year, on which the interest is intended to be excluded from
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gross income for federal income tax purposes, shall be registered as to both principal and interest
as provided in this resolution.
(b) Method of Registration. The registration of all County bonds and
obligations required to be registered shall be carried out either by
1. a book entry system of recording the ownership of the bond or
obligation on the books of the Registrar, whether or not a physical instrument is issued;
or
2. recording the ownership of the bond or obligation and requiring as a
condition of the transfer of ownership of any bond or obligation the surrender of the old
bond or obligation and either the reissuance of the old bond or obligation or the issuance
of a new bond or obligation to the new owner.
No transfer of any bond or obligation subject to registration requirements shall be effective until the
name of the new owner and the new owner's mailing address, together with such other information
deemed appropriate by the Registrar, are recorded on the books of the Registrar.
(c) Denominations. Except as may be provided otherwise by the resolution
authorizing their issuance, registered bonds or obligations may be issued and reissued in any
denomination up to the outstanding principal amount of the bonds or obligations of which they
are a part. Such denominations may represent all or a part of a maturity or several maturities and
on reissuance may be in smaller amounts than the individual denominations for which they are
reissued.
(d) Appointment of Registrar. Unless otherwise provided in the resolution
authorizing the issuance of registered bonds or obligations, the County Treasurer (the
"Treasurer"), shall be the Registrar for all registered interest-bearing warrants, installment
contracts, interest-bearing leases and other registered bonds or obligations not usually subject to
trading without a fixed maturity date or maturing one year or less after issuance and the Fiscal
Agencies shall be the Registrar for all other County bonds and obligations without a fixed
maturity date or maturing more than one year after issuance.
(e) Duties of Registr . The Registrar shall serve as the County's
authenticating trustee, transfer agent, registrar and paying agent for all registered bonds and
obligations for which he, she, or it serves as Registrar and shall comply fully with all applicable
federal and state laws and regulations respecting the carrying out of those duties.
The rights, duties, responsibilities and compensation of the Registrar shall be prescribed
in each resolution authorizing the issuance of the bonds or obligations, which rights, duties,
responsibilities and compensation shall be embodied in a contract executed by the County and
the Registrar, except that (i)when the Fiscal Agencies serve as Registrar, the County adopts by
reference the contract between the State Finance Committee of the State of Washington and the
Fiscal Agencies in lieu of executing a separate contract and prescribing by resolution the rights,
duties, obligations and compensation of the Registrar and (ii)when the Treasurer serves as
Registrar, a separate contract shall not be required.
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In all cases when the Registrar is not the Fiscal Agencies and the bonds or obligations are
assignable, the resolution authorizing the issuance of the registered bonds or obligations shall
specify the terms and conditions of:
1 making payments of principal and interest;
2. printing any physical instruments, including the use of identifying numbers
or other designation;
3. specifying record and payment dates;
4. determining denominations;
5. establishing the manner of communicating with the owners of the bonds or
obligations;
6. establishing the methods of receipting for the physical instruments for
payment of principal, the destruction of such instruments and the certification of such
destruction;
7. registering or releasing security interests, if any; and
8. such other matters pertaining to the registration of the bonds or obligations
authorized by such resolution as the County may deem to be necessary or appropriate.
Section 4. Statement of Transfer Restrictions. Any physical instrument issued or
executed by the County subject to registration under this resolution shall state on its face that the
principal of and interest on the bonds or obligations shall be paid only to the owner thereof
registered as such on the books of the Registrar as of the record date defined in the instrument
and to no other person, and that such instrument, either principal or interest, may not be assigned
except on the books of the Registrar.
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ADOPTED by the Board of Commissioners of Mason County, Washington, at a regular
open public meeting thereof this 5th day of May, 1998.
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Cha' and Commissioner
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Commissionq
Commissio er
ATTEST:
Clerk of the Board of County Co ssioners
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