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EP-MRI-WS3C
60 Livingston Avenue
St. Paul, MN 55107-2292
September 7, 2007
City of Columbia Heights
Attn: William Elrite, Finance Director
590 - 40`h Ave. NE
Columbia Heights, MN 55421
Re: $1,000,000 General Obligation Street Rehabilitation Bonds, Series 2007A City of
Columbia Heights, Minnesota
Dear Mr. Elrite:
Thank you for appointing U.S. Bank National Association as Paying Agent and Bond
Registrar of the above-captioned bond issue.
Enclosed for your review and signature are two copies of an Agency Agreement executed
by us outlining our duties and responsibilities as they relate to the paying agent/registrar
capacities. U.S. Bank policy requires an executed Agreement as a condition of closing.
One fully-executed original of the Agreement should be returned at your earliest
convenience We encourage you to return the Agreement as close to the Wednesday,
September 19, 2007 closing date as possible.
Please contact me at (651) 495-3892 if you have any questions or comments.
Diane Johnson, your post-closing contact, can be reached at (651) 495-3921. We look
forward to working with you.
Enclosures
2029
Paying Agency Agreement.doc
AGREEMENT RELATING TO PAYING AGENCY,
REGISTRAR AND TRANSFER AGENCY
THIS AGREEMENT made Wednesday, September 19, 2007 by and between the City of
Columbia Heights, Anoka County, State of MN (the "Issuer") and U.S. Bank National
Association (the "Agent"), an association duly organized and existing under the laws of
the United States, WITNESSETH that the Issuer has by Official Statement, dated August
16, 2007, authorized the issuance of the $1,000,000 General Obligation Street
Rehabilitation Bonds, Series 2007A City of Columbia Heights, Minnesota (the "Bonds");
and that the Issuer has designated the Agent as the paying agent, registrar and transfer
agent for the Bonds.
NOW THEREFORE, the Issuer and the Agent, each in consideration of the
representations, covenants and agreements of the other as set forth herein, mutually
represent, covenant and agree as follows:
Section 1. Agent's Duties.
1.1. Registrar. The Agent shall keep at its principal corporate trust office a
Bond Register in which the Registrar shall provide for the registration of ownership of
the bonds and the registration of transfers and exchanges of the Bonds entitled to be
registered, transferred or exchanged.
1.2. Transfer of Bonds. Upon surrender to the Agent for transfer of any Bond
duly endorsed by the registered owner thereof or accompanied by a written instrument of
transfer, in form satisfactory to the Agent duly executed by the registered owner thereof
or by an attorney duly authorized by the registered owner in writing, together with a
guarantee of the signature satisfactory to the Agent, the Agent shall authenticate and
deliver, in the name of the designated transferee or transferees, one or more new Bonds
of a like aggregate principal amount and maturity, as requested by the transferer. The
Agent may, however, close the books for registration of any transfer after the 15th day of
the month preceding each interest payment date and until such interest payment date.
Paying Agency Agreement.doc
1.3. Exchange of Bonds. Whenever any Bonds are surrendered to the Agent
for exchange the Agent shall authenticate and deliver the Bonds which, under the
authorizing resolution, the owner making the exchange is entitled to receive.
1.4. Cancellation. A11 obligations or coupons surrendered upon any transfer or
exchange and unissued inventory at maturity shall be canceled by the Agent and
destroyed pursuant to Minnesota statutes 475.553, subd 2, unless otherwise directed by
the Issuer.
1.5. Improper or Unauthorized Transfer. When any Bond is presented to the
Agent for transfer, the Agent may refuse to transfer the same until it is satisfied that the
endorsement on such Bond or written instrument of transfer is valid and genuine and the
requested transfer is legally authorized. The Agent shall incur no liability for the refusal,
in good faith, to make transfers which it, in its judgment, deems improper or
unauthorized.
1.6. Persons Deemed Owners. The Agent shall treat the person in whose name
any Bond is at any time registered in the Bond Register as the absolute owner of such
Bond, whether such Bond shall be overdue or not, for the purpose of receiving payment
of, or on account of, the principal of and interest on such Bond and for all other purposes,
and all such payments so made to any such registered owner or upon his order shall be
valid and effectual to satisfy and discharge the liability upon such Bond to the extent of
the surn or sums so paid.
1.7. Taxes, Fees and Charges. For every transfer or exchange of Bonds the
Agent may impose upon the owner thereof a charge sufficient to pay or reimburse the
Agent for any tax, fee or other governmental charge required to be paid with respect to
such transfer or exchange.
1.8. Mutilated, Lost, Stolen or Destroyed Bonds. In case any Bond shall
become mutilated or be destroyed, stolen or lost, the Agent shall deliver a new Bond of
like amount, number, maturity date and tenor in exchange and substitution for and upon
cancellation of any such mutilated Bond or in lieu of and in substitution for any such
Bond destroyed, stolen or lost, upon the payment of the reasonable expenses and charges
of the Agent in connection therewith; and, in the case of a Bond destroyed, stolen or lost,
upon filing by the owner with the Agent of evidence satisfactory to it that such Bond was
destroyed, stolen or lost, and of the ownership thereof, and upon furnishing to the Agent
of an appropriate bond of indemnity in form, substance and amount as maybe required
by law and as is satisfactory to the Agent, in which bond the Issuer and the Agent shall be
named as obligees. All Bonds so surrendered to the Agent shall be canceled by it and
evidence of such cancellation shall be given to the Issuer. If the mutilated, destroyed,
stolen or lost Bond has already matured or been called for redemption in accordance with
its terms it shall not be necessary to issue a new Bond prior to payment, provided that the
owner shall first provide the Agent with a bond of indemnity as set forth above.
1.9. Records, Statements, Payment of Interest and Principal. The Agent shall:
Paying Agency Agreement.doc
(a) keep true and accurate accounts of the outstanding principal
balance of the Bonds;
(b) not less than. thirty (30) days before the due date of any principal of
or interest on the Bonds, send a statement to the Issuer of the amount which will
be required to pay the principal of and interest on the Bonds on such date;
(c) pay such of the interest on the Bonds as is due on each stated
interest payment date, with the funds received from the Issuer, by check or draft
mailed, no later than the interest payment date, to the registered owners of the
Bonds as of the close of business on the 15th day (whether or not a business day)
of the preceding month, at their addresses as they appear on the Bond Register; if
the Issuer provides the Agent with sufficient funds to make such payment prior to
any interest payment date, the Agent shall mail such checks or drafts at the close
of business on the last business day preceding such interest payment date;
(d) pay such of the principal of the Bonds as is due on the stated
payment dates, with the funds received from the Issuer, upon presentation of the
Bonds for payment;
(e) forthwith upon presentation and payment of the bonds cancel the
same and retain and dispose of the same in the manner set forth in Section 1.4
hereof; and
The Agent shall not be required to pay interest on any funds of the Issuer for any period
during which such funds are held by the Agent awaiting the presentation of the Bonds for
payment. Any funds remaining in the possession of the Agent for payment of the Bonds
three (3) years after the date for the payment thereof has expired shall, subject to any
applicable escheat law, be returned to the Issuer upon demand.
1.10. Instructions from Issuer. The Agent in respect to any matter arising in
connection with said agency, may apply to, and act under the instructions of, the Mayor
or City Administrator of the Issuer, and, in respect to any legal question arising in
cormection with said agency, may apply to, and act under the instructions of the Mayor or
City Administrator.
1.11. Delivery of Records to Issuer; Retention. The Agent may, from time to
time at its discretion, deliver to the Issuer, for safekeeping or disposition by the Issuer in
accordance with law, such records accumulated in the performance of its duties as it may
deem expedient, and the Issuer assumes all responsibility for any failure thereafter to
produce any paper, record or document so returned, if and when required.
Section 2. Issuer's Duties.
Paying Agency Agreement.doc
2.1. Provision of the Executed Bonds. The Issuer shall provide the Agent with
such executed Bonds as are required to issue the Bonds in exchange for or upon transfer
of outstanding Bonds.
2.2. Provision of Funds to pa P~pa1 and Interest. The Issuer may pay the
Agent for the interest and principal due by check, however, the check must be received
by the Agent for deposit no later than three business days before the debt service payment
date in order for the bondholder payments to be released on the payment date. In order to
release checks a business day prior to payment date, the check must be received by the
Agent four business days prior to payment date. Check payments received from the
Issuer after the deadline will result in bondholder payments being released after a three
business day clearance.
If the Issuer pays by wire, the wire should be sent to the Agent one (1) business day prior
to the debt service payment date.
2.3. Payment of Fees and Charles of Agent. The Issuer shall pay to the Agent
reasonable fees and charges for services performed hereunder in accordance with the
Registrar's fee schedule in effect at the time of the service. The fees and charges of said
Agent shall in no event become a charge against the funds remitted by the Issuer for
payment of principal and interest on the Bonds.
2.4. Failure to Provide Funds. If available funds needed for payment do not
reach the Agent by any interest payment date, payment of items maybe refused and the
Issuer maybe charged for reasonable expenses incurred and extra service performed in
accordance with the Agent's schedule in effect at the time of the payment date.
2.5. Indemnification. The Issuer shall indemnify and save the Agent harmless
from and against any loss, cost, charge, expense, judgment or liability which it may incur
in the exercise of its powers and duties hereunder and which are not due to its negligence
or default.
Section 3. Termination.
Either party may terminate this agreement by written notice mailed to the other
party at least thirty (30) days prior to termination date, upon which event the Agent shall
return all cash and Bonds in its possession to the Issuer or its order and shall deliver the
Bond Register to the Issuer or its order, and the Issuer shall pay any accrued and unpaid
service charges to the Agent.
IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT:
To help the government fight the fw~ding of terrorism and money laundering activities, Federal law requires all financial institutions to
obtain, verify and record information that identifies each person who opens an account. For anon-individual person such as a business
entity, a charity, a Trust or other legal entity we will ask for documentation to verify its formation and existence as a legal entity. We
may also ask to see financial statements, licenses, and identification and authorization docwnents from individuals claiming authority to
represent the entity or other relevant documentation.
Paying Agency Agreement.doc
IN WITNESS WHEREOF, the Issuer and the Agent have caused this agreement
to be executed in their respective names by their duly authorized representatives, in two
counterparts, each of which shall be deemed an original.
City of Columbia Heights,
Anoka County,
State of MN, _ ._ _~..
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Its Mayor
(SEAL)
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By ~,,/' L,.
Its City Administrator
Paying Agency Agreement.doc