NOTICE OF SALE
general obligation BONDS of 2012
Middlebury community public library
Middlebury Community Public Library, at the hour of 11:00 A.M. (Indianapolis Time), on November 1, 2012, will receive at the offices of H.J. Umbaugh & Associates, Certified Public Accountants, LLP, 8365 Keystone Crossing, Suite 300, Indianapolis, Indiana 46240 and consider bids for the purchase of the following described bonds:
Approximately $580,000 of General Obligation Bonds of 2012 (the "Bonds") of Middlebury Community Public Library (the "Library"); Fully registered form; Denomination $5,000 and integral multiples thereof; Originally dated the date of delivery of the Bonds; Bearing interest at a rate or rates to be determined by bidding, payable on January 15 and July 15 of each year beginning on July 15, 2013; Interest payable by check mailed one business day prior to the interest payment date or by wire transfer to depositories on the interest payment date to the person or depository in whose name each Bond is registered with the trustee on the fifteenth day immediately preceding the interest payment date; Maturing or subject to mandatory sinking fund redemption on January 15 of each year beginning on January 15, 2014 through and including January 15, 2017, in the amounts as will be available at least 24 hours prior to the sale.
Any person interested in submitting a bid for the bonds must furnish in writing to the Middlebury Community Public Library c/o H.J. Umbaugh & Associates, Certified Public Accountants, LLP, 8365 Keystone Crossing, Suite 300, Indianapolis, Indiana 46240; (317) 465-1500, (317) 465-1550 (facsimile) or by e-mail to firstname.lastname@example.org or before 10:30 a.m. (Indianapolis Time) October 31, 2012, the person's name, address and telephone number. Interested persons may also furnish an e-mail address. The undersigned Secretary will notify (or cause to be notified) each person so registered of the final principal amount and maturity schedule for the Bonds. Such schedule shall be sent not less than twenty-four (24) hours before the date and time of sale.The notification shall be made by telephone at the number furnished by such person and also by electronic e-mail, if an e-mail address has been received.
The Bonds are not subject to redemption prior to maturity.
The Bonds have been designated as qualified tax-exempt obligations for purposes of Section 265(b)(3).
A bid may designate that a given maturity or maturities shall constitute a term bond, and the semi-annual amounts set forth in the schedule provided by the Library prior to the sale shall constitute the mandatory sinking fund redemption requirements for such term bond or bonds. For purposes of computing net interest cost, the mandatory redemption amounts shall be treated as maturing on the dates set forth in the schedule.
Each bid must be for all of the Bonds and must state the rate of interest which each maturity of the Bonds is to bear, stated in multiples of 1/8th, 1/20th or 1/100th of 1%. The maximum interest rate on the Bonds shall not exceed five percent (5%) per annum. All Bonds maturing on the same date shall bear the same rate, and the rate of interest bid for each maturity must be equal to or greater than the rate bid on the immediately preceding maturity. Bids shall set out the total amount of interest payable over the term of the Bonds and the net interest cost on the Bonds covered by the bid. No bid for less than 99% of the face value of the Bonds will be considered. The Bonds will be awarded to the highest qualified bidder who has submitted a bid in accordance herewith. The highest bidder will be the one who offers the lowest net interest cost to the Library, to be determined by computing the total interest on all of the Bonds to their maturities based upon the schedule provided by the Library prior to the sale and deducting therefrom the premium bid, if any, and adding thereto the discount bid, if any. No conditional bids will be considered. The right is reserved to reject any and all bids. If an acceptable bid is not received for the Bonds on the date of sale hereinbefore fixed, the sale may be continued from day to day thereafter, during which time no bids for less than the highest bid received at the time of the advertised sale will be considered.
Each bid must be enclosed in a sealed envelope addressed to the Library and marked on the outside “Bid for General Obligation Bonds of 2012”. A good faith deposit (“Deposit”) in the form of cash or certified or cashier’s check in the amount of $5,800 payable to the order of the Library is required to be submitted by the successful purchaser (the "Purchaser") not later than 3:30 p.m. (Indianapolis time) on the next business day following the award. If such Deposit is not received by that time, the Library may reject the bid. No interest on the Deposit will accrue to the Purchaser. The Deposit will be applied to the purchase price of the Bonds. In the event the Purchaser fails to honor its accepted bid, the Deposit will be retained by the Library as liquidated damages.
It is anticipated that CUSIP identification numbers will be printed on the bonds, but neither the failure to print such numbers on any bond nor any error with respect thereto shall constitute cause for failure or refusal by the successful bidder therefor to accept delivery of and pay for the bonds in accordance with the terms of its proposal. No CUSIP identification number shall be deemed to be a part of any bond or a part of the contract evidenced thereby and no liability shall hereafter attach to the Library or any of its officers or agents because of or on account of such numbers. All expenses in relation to the printing of CUSIP identification numbers on the bonds shall be paid for by the Library; provided, however, that the CUSIP Service Bureau charge for the assignment of said numbers shall be the responsibility of and shall be paid for by the Purchaser. The Purchaser will also be responsible for any other fees or expenses it incurs in connection with the resale of the bonds.
The successful bidder shall make payment to the person or entity chosen by the Library to serve as registrar (the "Registrar") for the Bonds and accept delivery thereof from the Registrar within five days after being notified that the Bonds are ready for delivery, at such place in the City of Indianapolis, Indiana, as the successful bidder may designate. The Bonds will be ready for delivery within 45 days after the date of sale. If the Library fails to have the Bonds ready for delivery prior to the close of banking hours on the forty-fifth day after the date of sale, the bidder may secure the release of his bid upon request in writing, filed with the Library. The successful bidder is expected to apply to a securities depository registered with the SEC to make such bonds depository-eligible. At the time of delivery of the Bonds to the successful bidder, the bidder will be required to certify to the Library the initial reoffering price to the public of a substantial amount of each maturity of the Bonds.
The approving opinion of Ice Miller LLP, bond counsel of Indianapolis, Indiana, together with a transcript of the proceedings relating to the issuance of the Bonds and closing papers in the usual form showing no litigation questioning the validity of the Bonds will be furnished to the successful bidder at the expense of the Library.
The Bonds are being issued for the purpose to pay the cost of renovating and improving Middlebury Community Public Library, and will be direct obligations of the Library payable out of ad valorem taxes to be collected on the taxable property within the Library; however, the Library's collection of the levy may be limited by operation of I.C. § 6-1.1-20.6, which provides taxpayers with tax credits for property taxes attributable to different classes of property in an amount that exceeds certain percentages of the gross assessed value of that property. The Library is required by law to fully fund the payment of debt service on the Bonds in an amount sufficient to pay the debt service, regardless of any reduction in property tax collections due to the application of such tax credits. The Library may not be able to levy or collect additional property taxes to make up this short fall. Middlebury Community Public Library is a library organized pursuant to the provisions of I.C. § 36-12-3, and the Bonds will not be “private activity bonds” as defined in Section 141 of the Internal Revenue Code of 1986.
The Bonds constitute an indebtedness only of the Library. Interest on the Bonds is exempt from all income taxation in Indiana. In the opinion of bond counsel, under the existing federal statutes, decisions, regulations and rulings, the interest on the Bonds is excludable from gross income for purposes of federal income taxation.
Further information relative to said issue and a copy of the offering circular may be obtained upon application to H.J. Umbaugh & Associates, Certified Public Accountants, LLP, 8365 Keystone Crossing, Suite 3000, Indianapolis, Indiana 46240, financial advisor to the Library; Mr. R. Gordon Lord, Yoder Ainlay Ulmer & Buckingham, 130 N. Main Street, Goshen, Indiana 46540, attorney for the Library; or Ms. Terry Rheinheimer, Director, Middlebury Community Public Library, 101 East Winslow Street, Middlebury, Indiana 46540. If bids are submitted by mail, they should be addressed to the Library, attention of Ms. Terry Rheinheimer, Director, Middlebury Community Public Library, 101 East Winslow Street, Middlebury, Indiana 46540.
Dated this 11th day of October, 2012.
/s/ Artha Juntunen
Secretary, Board of Trustees
Middlebury Community Public Library
LC 170 MI 24,31