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Home My WebLink AboutA010 - Final Approving Opinion from Dorsey & Whitney dated January 14, 1994DES MOINES JUSIOENT ArTORNETS ROBERT H. HELMICK DAVID L. CLAYPOOL ROBERT E. JOSTEN EDWIN N. XcINTOSH NORENE D.JACOBS J EFFREY M - H URLD CRT DoRsEy & WHITNEY A 111D P.—.10— C.—T- 801 GRAND, SUITE 3900 DES MOINES, IOWA 50309 (515) 283-1000 FAX (515) 283-1060 January 14, 1994 Ms. Evelyn Marcano Harris Trust and Savings Bank 111 West Monroe, 10E Chicago, IL 50503 MINNEAPOLIS, MINNESOTA NEW YORE, NEW YORK WASHINGTON, D. C. DES MOINES, IOWA ROCHESTER, MINNESOTA BILLINGS, MONTANA GREAT FALLS, MONTANA MISSOULA, MONTANA LONDON, ENGLAND BRUSSELS, BELGIUM PA-RIS, FRANCE 7K Re: Ames, Iowa $3,825,000 General Obligation Corporate Purpose Bonds, Series 1994 Our File No. 419370-12 Dear Ms. Marcano: We have prepared and enclose our final approving opinion covering the captioned Bonds, dated as of January 19th, the day of closing. Also enclosed is the City's Final Delivery and Non -arbitrage Certificate dated as of closing. We understand that you will wire transfer the net settlement funds to the City in the total amount of $3,763,916.50 on January 19th, as outlined in Charles Uperaft's letter of January 11th. f-,L1-td (e11) to r3"/T1,—_ to beWe IhavetodLay Gr,;arLdedL1LeexecueBondsnurnber"1-1 held in escrow, pending receipt by the City of the settlement funds and our release on January 19th. On the day of closing, please telephone our office to confirm with us that the closing is taking place as scheduled and so that we may authorize the release of our opinion and the Bonds. If for any reason the closing will not take place on January 19th, please notify our office as soon as possible. When you telephone, you may speak to Jeane Harrison or me. DORSEY & WHITNEY im In the meantime, if you should have any questions or if there is anything we can do to be of assistance, please do not hesitate to let us know. Sincerely- youis;) Robert H. Helmick RHH:cdrn Ames \419370-12\clos Itr Enclosures cc: Steven Schainker Alice Carroll John Klaus Sandra Ryan Chuck Uperaft Dave Dirks DES MOINES RESIDENTAYTORNLTS ROBERT H. HEL2410E DAVID L. CLAYPOOL ROBERT E. JOSTEN EDWIN N. McINTOSH NORENE D. JACOBS JEFFREY M-HURLBURT DoiRSEY & WHITNEY A P--.— I—M.— P.evrrsnlaxwL C.--.- 801 GRAND, SUITE 3900 DES MOINES, IOWA 50309 (515) 283-1000 FAX (51-5) 263-1060 January 19, 1994 MINNEAPOLIS, MIXNFSOTA NEW YORE, NEW YORE WASHINGTON, 17. C. DES MOINES, IOWA ROCHESTER, MINNESOTA BILLINGS, MONTANA GREAT FALLS, MONTANA MISSOULA, MONTANA LONDON, ENGLAND BRUSSELS, BELGIUM PARIS, FRANCE We hereby certify that we have examined a certified copy of the proceedings of the City Council of the City of Ames, in the County of Story, State of Iowa (the "Issuer"), passed preliminary to the issue by the Issuer of its General Obligation Corporate Purpose Bonds, Series 1994 (the "Bonds") in the amount of $3,825,000, dated January 1, 1994, in the denomination of $5,000 each, or any integral multiple thereof, maturing on June 1 in each of the respective years and in the principal amounts and bearing interest payable semiannually, commencing June 1, 1994, at the respective rates, as follows: Principal Interest Rate Year Amount Per Annum 1994 $300,000 3.90% 1995 $420,000 3.95% 1996 $420,000 4% 1997 $415,000 4% 1998 $410,000 4% 1999 $410,000 4% Principal Interest Rate Year Amount Per Annurn 2000 $290,000 4% 2001 $290,000 4 alc 2002 $290,000 4% 2003 $290,000 4.10% 2004 $290,000 4 . 1 0'7c but the Bonds maturing in each of the years 2003 and 2004 are subject to redemption prior to maturity at the times and on the terms specified in the Bonds. J Based upon our examination, we are of the opinion, as of the date hereof, that: 1. The aforementioned proceedings show lawful authority for such issue under the laws of the State of Iowa. 2. The Bonds are valid and binding general obligations of the Issuer. 3. All taxable property within the corporate boundaries of the Issuer is subject to the levy of taxes to pay the principal of and interest on the Bonds without constitutional or statutory limitation as to rate or amount. 5M 4. The interest on the Bonds (including any original issue discount properly allocable to an owner thereof) is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations; it should be noted, however, that for the purpose of computing the alternative minimum tax imposed on corporations (as defined for federal income tax purposes), such interest is taken into account in determining adjusted current earnings. The opinions set forth in the preceding sentence are subject to the condition that the Issuer comply with all requirements of the Internal Revenue Code of 1986 (the "Code") that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be, excluded from gross income for federal income tax purposes. The Issuer has covenanted to comply with each such requirement. Failure to comply with certain of such requirements may cause the inclusion of interest on the Bonds in gross income for federal income tax purposes to be retroactive to the date of issuance of the Bonds. 5. The Bonds are not "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Code, and, therefore, in the case of certain financial institutions (within the meaning of Section 265(b)(5) of the Code), a deduction is not allowed for any portion of such financial institutions' interest expense allocable to interest on the Bonds. We express no opinion regarding other federal tax consequences arising with respect to the Bonds. The rights of the owners of the Bonds and the enforceability thereof may be subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights heretofore or hereafter enacted to the extent constitutionally applicable, and their enforcement may also be subject to the exercise of judicial discretion in appropriate cases. DORSEY & WHITNEY DES MOINES RESIDENT A 7TORNET5 ROBERT B. HELMICK DAVID L. CX.AYPOOL U013ERT E. JOSTEN EDWIN N. McINTOSH NORENE D.JACOBS JEFFREY M. HURIJ3URT DoRsEy & WHITNEY A P--.— 1---. P .... —.— C. 801 GRAND, SUITE 3900 DES MOINES, IOWA 50309 (515) 283-1000 FAX (515) 283-1060 January 14, 1994 Mr. Willie Rodriguez The Depository Trust Company Interface Department 55 Water Street New York, New York 10041 MINNEAPOLIS, MINNESOTA NEW YORE, NEW YORE'. WASHINGTON, D. C. DES MOINES, IOWA ROCHESTER, MINNESOTA BILLINGS, MONTANA GREAT FALLS, MONTANA MISSOULA, MONTANA LONDON, ENGLAND BRUSSELS, BELGIUM PARIS. FRANCE Re: Ames, Iowa $3,825,000 General Obligation Corporate Purpose Bonds, Series 1994 Our File No. 419370-12 Dear Mr. Rodriguez: Enclosed are the executed Notes, numbered from I to 11, inclusive, along with a copy of our final approving opinion, which should be held in escrow pending our release on January 19th, the settlement date. In the meantime, if you should have any questions or if there is anything we can do to be of assistance, please telephone Jeane Harrison or rne. Sincerely yours, --jeane L. Harrison LeLlal Assistant JLH:cdm Ames\ 419370-12\ DTC1 tr Enclosures cc: Sandra Ryan Ada Dejesus Tony Arcuri