HomeMy WebLinkAboutA031 - Letter from Dorsey & Whitney dated October 15, 2008 - examination of certified proceedingsOctober 15, 2008
We hereby certify that we have examined a certified copy of the proceedings (the
"Proceedings") of the City Council of the City of Ames, in Story County (the "Issuer"), State of
Iowa, passed preliminary to the issue by the Issuer of its General Obligation Corporate Purpose
Bonds, Series 2008A (the "Bonds") in the amount of $8,355,000, dated October 15, 2008, in the
denomination of" $5,000 each, or any integral multiple thereof, maturing on June I in each of the
respective years and in the principal amounts and bearing interest payable semiannually,
commencing .June 1, 2009, at the respective rates, as follows:
Principal
Interest Rate
Principal
Interest Rate
Year
Amount
Per Annurn
Year
Arnount
Per AnnUM
2009
$375,000
3.75%
2015
$710,000
3. 8 5 '/o
2010
$610,000
3.75%
2016
$745,000
3.85%
2011
$625,000
3.75%
2017
$775,000
4.00%
2012
$645,000
3.751YO
2018
$800,00()
4.00%
2013
$665,000
3.75%
2019
$840,000
4.10%
2014
$690,000
3.75%
2020
$875,000
4.15%
but the Bonds maturing in each of the years 2017 to 2020, inclusive, are subject to redemption
prior to maturity on June 1, 2016 or any date thereafter, upon terms of par and accrued interest.
Rased ut)oo our exarniiiatioii, we are of the opinion, as of the date hereof, that:
I The 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.
DORIS EY & WH I TNEY LL P - A] TOR NEYS AL LAW - WWW.DORSFY.COM - T 515.')8,3.1000
F 515,283.1060 - 801 GRAND - SUIFE ')'<)00 - DES MOINES, IOWA 50309 1,790
L J F_3 A, CA, r1JA, F3 A E k J R 0 P E. AS 1A,
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Page 2
4. The interest on the Bonds (including any original issue discount properly
allocable to an owner thereof) is excluded from gross income for federal incorne tax purposes
and is riot 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 unposed 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 (late of issuance of the Bonds.
S. The Bonds are "*qualified tax-exempt obligations" within the meaning of
Section 265(b)(3) of the Code. The opinion set forth in the preceding sentence is subject to the
condition that the Issuer comply with all requirements of the Code that must be satisfied
subsequent to the issuance of the Bonds in order that the Bonds be, or continue to be, qualified
tax-exempt obligations, The Issuer has covenanted to comply with each such requirement.
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
A J�7 J;ti�
00R�CY & WHIHNFY LLP
Anthony Scheuring
pi & Co.
AOONicolbjMall, Jl3SU5
Minneapolis, MN 55402
8c: /\ozca,lonoz
$8,355,000(l}cneru! Obligation Corporate purpose Bonds, Series 2008A
Our File No. 4l9370-36
Dear Tony:
We have prepared and enclose our final approving
opinion covering the October 15' 2008
closing of the City ofAmes General Obligation Corporate Purpose Bonds, Series 2008A.
/\ copy o{the transcript will busent hoyou hvemail.
REJbo
Enclosures
cc: Diane Voss
Duane Pitcher
Susanne Gerlach
DORSEY &WHITNEY LLP~ATTDRNEYSATLAW ^WWW.DORSEyCOM`T 515.283]000
F 515,283.1000~801 GRAND ^SU|TE 3000^ DES m0NES, 0ww 50309-2790
uS° CA, wA,FDA, Eunopa A S/A