HomeMy WebLinkAboutA037 - Certificate of the Underwriter dated May 17, 2011 {
Ames/41937045/Underwriter Cert
CERTIFICATE OF THE UNDERWRITER
The undersigned officer of Hutchinson, Shockey, Erley & Co., Chicago, Illinois (the
"Underwriter"), hereby certifies on this 171h day of May, 2011, as follows:
1. The Underwriter has agreed to purchase from the City of Ames, Iowa (the
"Issuer") its General Obligation Refunding Bonds, Series 2011A in the stated principal amount
of$5,980,000 (the "Bonds"), issued pursuant to a resolution adopted by the City Council of the
Issuer on April 26, 2011 (the "Resolution").
The Underwriter has purchased the Bonds pursuant to a certain agreement of sale (the
"Purchase Agreement") dated April 12, 2011 (the "Sale Date") between the Underwriter and the
Issuer. The Purchase Agreement has been duly authorized, executed and delivered by the
Underwriter and has not been repealed, rescinded or amended by the Underwriter.
2. The Underwriter hereby confirms that the initial offering price at which all of the
Bonds have been sold to the public (excluding bond houses, placement agents, brokers or similar
persons or organizations acting in the capacity of underwriters or wholesaler) is $6,084,539.55
Furthermore, based upon our records and other information available to us which we
have no reason to believe is not correct:
(a) All of the Bonds have been the subject of a bona fide initial offering to the public
(excluding bond houses, placement agents, brokers or similar persons or organizations acting in
the capacity of underwriters or wholesalers) at the respective prices or yields shown in the
Official Statement, dated April 20, 2011 (the "Official Statement"), plus accrued interest, if any.
(b) At the time the Underwriter agreed to purchase the Bonds, based upon the then
prevailing market conditions, the undersigned had no reason to believe that any of the Bonds
would be initially sold to the public(excluding bond houses,placement agents, brokers or similar
persons or organizations acting in the capacity as underwriters or wholesalers) at prices greater
than the respective prices, or at yields less than the respective yields, shown in the Official
Statement,plus accrued interest, if any.
(c) At least 10 percent of each maturity of the Bonds were sold to the public
(excluding bond houses, placement agents, brokers or similar persons or organizations acting in
the capacity as underwriters or wholesalers) at the respective prices or yields shown in the
Official Statement, plus accrued interest, if any.
3. The Underwriter has not and will not receive any compensation with respect to or
related to the issuance of the Bonds from proceeds of the Bonds in excess of the Underwriter's
discount in the amount of$14,859.16.
4. The Underwriter agrees the yield on the Bonds, in accordance with Section 148(h)
of the Internal Revenue Code of 1986, as amended, is 1.9253589%. The Underwriter agrees the
weighted average maturity of the Bonds based on the issue price is 3.5887 years. The initial
offering price of the Bonds as set forth in paragraph 2 was used as the basis for computing the
aforementioned yields on the Bonds.
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DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES, IOWA
Ames/419370-45/Underwriter Cert
5. The Underwriter has computed the remaining weighted average maturity on the
City's General Obligation Corporate Purpose Bonds, Series 2002A, dated May 1, 2002; the
General Obligation Corporate Purpose Bonds, Series 2002B, dated October 15, 2002; and the
General Obligation Corporate Purpose Bonds, Series 2003, dated September 1, 2003 being
refunded to be 3.6293 years.
6. Based upon the secondary market trades of the Bonds between the Sale Date and
May 17, 2011, and our knowledge of the conditions generally prevailing in the municipal bond
market between such dates, we have no reason to believe that our representations and
certifications in paragraph 2 hereof are incorrect and may not be relied upon by the Issuer and
Bond Counsel.
IN WITNESS WHEREOF, the Underwriter has caused this certificate to be executed by
its duly authorized officer as of May 17, 2011.
HUTCHINSON, SHOCKEY, ERLEY&
CO.
By
(Signature)
�y At�.-e- 'C VIP
(Print Name and Title)
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DORSEY& WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA