HomeMy WebLinkAboutA017 - Letter from Dorsey & Whitney dated October 14, 2004 - final approving opinionOctober 14, 2004
Donna Hoagland
RBC Dain Rauscher, Inc.
500 West Madison
Suite 3000
Chicago, Illinois 60661-2511
Re: Ames, Iowa
$6,030,000 General Obligation Corporate Purpose Bonds, Series 2004
Our File No. 419370-32
Dear Ms. Hoagland:
We have prepared and enclose our final approving opinion covering the City of Ames,
Iowa, General Obligation Corporate Purpose Bonds, Series 2004, dated October 19, 2004.
We are also enclosing a copy of the transcript for your file.
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 October 19, please notify our office as
soon as possible. When you telephone, you may �7 e speak jo- : Harrison or me.
Ve trulv vours.-
REJ
Ames/419370-32/Closing Ur
Enclosures
cc: Duane Pitcher
Diane R. Voss
Heather Casperson
bert EAJosten
DORSEY & WHITNEY LLP
ATTORNEYS AT LAW - WWW.DORSEY.COM - T 515.283.1000 IF 515.2831060
801 GRAND SUITE 3900 DES MOINES, IOWA 50309-2790
USA CA-DA ELJROF�E ASIA
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October 19, 2004
[DORSEY
DORSLY & WHIFNEY LLP
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
2004 (the "Bonds"), in the amount of $6,030,000, dated October 15, 2004, 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, 2005, at the respective rates, as follows:
Principal
Interest Rate
Principal
Interest Rate
Year
Amount
Per Annum.
Year
Amount
Per Annum
2005
$600,000
2.750%
2010
$595,000
3.250%
2006
$535,000
2.750%
2011
$620,000
3.250%
2007
$545,000
2.750%
2012
$640,000
3.250%
2008
$560,000
2.750%
2013
$665,000
3.250%
2009
$580,000
2.750%
2014
$690,000
3.250%
but the Bonds maturing in each of the years 2013 and 2014 are subject to redemption prior to
maturity at the times and on the terms specified in the Bonds.
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.
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
DORSEY & WHITNEY LLP - ATTORNEYS AT LAW - WWW.DORSEY.COM - T 515,283.1000
F 515.283.1060 - 801 GRAND - SUITE 3900 - DES MOINES, IOWA 50309-2790
US^ CANAC7A EuRmpe ^SIAI
00RSEY
Page 2
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 "qualified tax-exempt obligations" within the meaning of
Section 265(b)(3) of the Code, and, in the case of certain financial institutions (within the
meaning of Section 265(b)(5) of the Code), a deduction is allowed for 80 per cent of that 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 LLP
DORSEY & WHITNEY LLP