REGULAR COUNCIL MEETING
The Regular Meeting of Council was held on June 8, 1987 at 7:30 p.m. with Mayor Carroll presiding. Members present were Councilmen Richter, Daisey, Legates, Lynn, Christiansen, Levitt, Weyandt and VanSant.
In the absence of Council Chaplain, Reverend J. H. Williams, in invocation was given by Councilman VanSant.
AGENDA ADDITIONS/DELETIONS
Mayor Carroll requested the following agenda additions under correspondence:
1. Holly Malone of Heatherfield Association.
2. Commission on the Bicentennial of the U.S. Constitution - The Roads to Liberty.
3. Residents of Crossgates - Skateboarding.
4. Downtown Merchants - Sidewalk Sale.
5. Town of Leipsic - Request to Borrow City Stage.
The agenda was unanimously approved as amended.
ADOPTION OF MINUTES - REGULAR COUNCIL MEETING OF MAY 25, 1987
Mr. Richter referred to page 3 of the Regular Council Meeting Minutes of May 25, 1987, under the heading “Water/Sewer Tapping Fees”, and moved that the Minutes be amended to show that the new water/sewer tapping fees will become effective July 1, 1987. The motion was seconded by Mr. VanSant and unanimously carried.
By motion of Mr. VanSant, seconded by Mr. Lynn the Regular Council Meeting Minutes of May 25, 1987 were unanimously approved as amended and bore the written approval of Mayor Carroll.
RESOLUTION - DR. LUNA I. MISHOE
By motion of Mr. Christiansen, seconded by Mr. VanSant, Council unanimously approved the following Resolution:
WHEREAS, Dr. Luna Isac Mishoe, scientist, educator and administrator ranking among America’s most distinguished mathematicians and physicists, will retire as president of Delaware State College on June 30, 1987, after 27 years of distinguished service; and
WHEREAS, Dr. Mishoe’s many academic achievements include a Bachelor of Science Degree in mathematics and chemistry from Allen University, Master of Science Degree in mathematics and physics, University of Michigan, Doctor of Philosophy in mathematics, New York University, a year of post doctoral research in mathematics, Oxford University, Bachelor of Science Degree in Accounting and Business Administration and a Master of Business Administration Degree from the Wharton School of the University of Pennsylvania; and
WHEREAS, under the leadership of Dr. Mishoe, Delaware State College has expanded enormously with a determined emphasis placed on the development and improvement of academic programs and academic excellence dedicated to the education of all people.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET:
1. The Mayor and Council express sincere appreciation to Dr. Mishoe for his many contributions to the community during his distinguished career as President of Delaware State College.
2. The Mayor and Council wish Dr. Mishoe and his family personal content and happiness through the years of retirement and continued success in their life’s pursuits.
3. The Mayor and Council directs the City Clerk to make this Resolution a part of the permanent records of the City of Dover as a testimonial to the educational excellence and community service made possible by the professional expertise of Dr. Luna Isac Mishoe.
ADOPTED: June 8, 1987
Mr. Daisey offered to present the framed Resolution to Dr. Mishoe at a dinner being held in his behalf at the Sheraton Inn on Wednesday, June 10, 1987 at 6:30 p.m.
RESOLUTION - EMANUEL BARROS
By motion of Mr. VanSant, seconded by Mr. Lynn, Council unanimously adopted the following Resolution:
WHEREAS, Emanuel Barros, a respected citizen and businessman of the City of Dover, passed away on March 16, 1987, greatly saddening Mayor and Council and his many friends, and
WHEREAS, Emanuel Barros will be respectfully remembered as a leader in the community, having served in numerous capacities with exemplary dedication, and
WHEREAS, his many accomplishments include serving and operating Emanuel’s Department Store in downtown Dover for 49 years and serving as Chairman of the Dover Parking Authority, and having contributing greatly to the overall development of the downtown area, and
WHEREAS, Emanuel Barros served as past chairman of the Red Cross and the American Cancer Association; was a member, former president, and Paul Harris Fellow of the Dover Rotary Club; was a 56 year member of Union Lodge 7 AF&AM; and was a member of Grand Lodge Nur Temple; 32nd Degree Shriner, and
WHEREAS, the religious activities of Emanuel Barros included serving as the first president of Congregation Beth Shalom, a member of the Senior Citizen Task Force of the Jewish Federation of Delaware, and former director of the National Conference of Christians and Jews.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET:
1. The Mayor and Council express their regret for the death of Emanuel Barros and extends to the members of his family this expression of sincere sympathy and the hope that they will be consoled by the memories of his fine life and achievements.
2. The Mayor and Council direct the City Clerk of Council to place this Resolution in the permanent records of the City of Dover in recognition of the many contributions graciously given to his community by Emanuel Barros.
ADOPTED: June 8, 1987
YASMINE S. WASFI AND SCOTT R. EVANS - PRESIDENTIAL SCHOLARS FOR 1987
By motion of Mr. VanSant, seconded by Mrs. Legates, the following Resolution was unanimously approved:
WHEREAS, two high school seniors, Yasmine S. Wasfi of Dover High School, and Scott R. Evans of Caesar Rodney High School, were among 140 students named as Presidential Scholars for 1987; and
WHEREAS, presentation of this Resolution represents an effort to give recognition to these students for their exemplary academic achievements as well as their accomplishments in community and school activities; and
WHEREAS, Yasmine S. Wasfi and Scott R. Evans have demonstrated an extreme dedication to their studies, resulting in this worthwhile and honored award; and
WHEREAS, at a June 17, 1987 White House ceremony, President Ronald Reagan will address the 1987 Presidential Scholars, presenting each with a medallion in honor of their accomplishments.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET:
1. The Mayor and Council of the City of Dover are proud of the achievements of Yasmine S. Wasfi and Scott R. Evans.
2. In recognition of the selection of Yasmine S. Wasfi and Scott R. Evans for the Presidential Scholars for 1987, the Mayor and Council acknowledge the vital contributions made by both students, as well as the support and assistance provided by their schools, teachers, and family.
3. The Mayor and Council direct the City Clerk of Council to make this Resolution a part of the permanent records of the City of Dover in expression of their sincere pride and utmost congratulations to Yasmine S. Wasfi and Scott R. Evans.
ADOPTED: June 8, 1987
DOVER HIGH SCHOOL - MODEL SCHOOL AWARD
By motion of Mr. Weyandt, seconded by Mr. Christiansen, Council unanimously adopted the following Resolution:
WHEREAS, the National Secondary School Recognition Program seeks to identify and call attention to a national group of schools that are unusually successful in meeting the educational needs of all of their students; and
WHEREAS, Dover High School has been chosen as a recipient for the Model School Award, one of only 123 public schools selected throughout the nation and the only school in the State of Delaware; and
WHEREAS, the stringent qualifications for this award focus on certain, demographic characteristics and diversity in curriculum that determines a schools progress toward educational excellence; and
WHEREAS, Dover High School met these qualifications by maintaining a balance of freedom and discipline and offering a wide variety of academic courses promoting the humanities, the arts, the principles of democracy, and the methods of mathematical and scientific problem solving.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET:
1. The Mayor and Council commend the administrative staff, the teachers, the school board and parent organizations of Dover High School for their innovative foresight that bestowed this honor to the community.
2. The Mayor and Council, with special pride, congratulate the student body of Dover High School and wish them success in all future endeavors.
3. The Mayor and Council direct the City Clerk to make this Resolution a part of the permanent records of the City of Dover as an everlasting tribute to Dover High School.
ADOPTED: June 8, 1987
Mr. John Phillips was present to accept the Resolution on behalf of Dover High School.
GENERAL OBLIGATION BOND SERIES 1987 - $1,000,000 - BOND RESOLUTION AND OFFICIAL STATEMENT
Mayor Carroll introduced Mr. Charles S. McDowell, Bond Attorney for Potter Anderson & Corroon, who addressed Council on the $1,000,000 General Obligation Bond Series 1987. Mr. McDowell summarized details for Council on the prepared Official Statement and the proposed authorizing Resolution.
By motion of Mr. VanSant, seconded by Mr. Levitt, Council, by unanimous roll call vote, adopted the following Resolution:
THE CITY OF DOVER
$1,000,000
GENERAL OBLIGATION BONDS
SERIES 1987
RESOLUTION
THE CITY OF DOVER RESOLVES:
Section 1. The Mayor and Council have approved, by a Resolution passed by City Council on April 13, 1987, a project for the renovation of certain public facilities in connection with the Constitution Place project in downtown Dover.
Section 2. The Mayor and Council have authorized, by a Resolution passed by City Council on April 13, 1987, the repaving of certain city streets in connection with a comprehensive street repaving program.
Section 3. The Mayor and Council have determined that General Obligation Bonds in the amount of $1,000,000 should be issued to partially fund the above-mentioned Constitution Place and street repaving projects and for any other lawful street-related projects approved by the Council pursuant to Section 50 (c) of the Charter and have authorized the City officials to proceed with implementation of the Projects and the issuance of bonds and to use City funds to be reimbursed out of bond proceeds and to take all other proper action in furtherance of the purposes set forth in this Resolution.
Section 4. The City shall issue its negotiable bonds in the aggregate principal amount of $1,000,000 (the “Bonds”) pursuant to and in accordance with Section 50 of the City Charter, to finance in whole or in part the cost of the projects and facilities specified in Sections 1, 2 and 3 above to the extent specified therein. The full faith and credit of The City of Dover is pledged to the payment of the Bonds and the interest, and premium, if any, thereon. The Bonds shall be dated, shall mature in such installments, shall be subject to redemption prior to maturity, with or without premium, and shall otherwise contain such terms and provisions as are provided in the form of the Preliminary Official Statement (hereinafter described) and as may be modified by, with the advice of the Financial Advisor, the Mayor and the Treasurer as they shall determine shall be in the best interest of the City.
Section 5. The Bonds shall be issued as a single consolidated issue of bonds and each of the Bonds shall bear the designation “General Obligation Bond, Series 1987". The Bonds shall be in denominations of $5,000 and any integral multiples thereof and shall be numbered consecutively.
Section 6. The Bonds shall bear interest from their date at a rate or rates not exceeding a true interest cost of eight and on-forth percent (8-1/4%) per annum, when calculated for all the Bonds in the aggregate. Such interest shall be payable on January 1, 1988 and on each July 1 and January 1 thereafter. True interest (“Canadian”) cost shall be determined by doubling the semi-annual interest rate, compounded semiannually, necessary to discount the debt service payment from the payment dates to the date of the Bonds and to the price bid, excluding interest accrued to the date of delivery.
Section 7. The Bonds may be issued in bond entry form, registered in the name of a securities depository (the “Depository”) and immobilized in the custody of the Depository subject to such terms and conditions as may be determined by the Mayor in which case the Mayor may execute and deliver on behalf of the City a letter of representation in the form of Exhibit A hereto or in such other form and with such other content as the Mayor may determine to be in the best interest of the City. In the event that the Bonds are immobilized in the custody of a Depository, the City shall not be liable for the failure of the Depository or of any participant of the Depository to perform any obligation to any participant or beneficial owner of any such Bond.
Section 8. Principal and interest payments on the Bonds are to be made to the Depository as registered owners of the Bonds. Such payments are to be made to the owner of record as of the fifteenth day of the calendar month preceding the month in which the applicable interest or principal payment date occurs.
Section 9. Each of the Bonds shall contain a recital that it has been authorized and issued pursuant to the terms and conditions of Section 50 of the City Charter. Each of the Bonds shall be signed by the manual or facsimile signature of the Treasurer. The official corporate seal of the City or a facsimile thereof shall be imprinted or impressed upon each of the Bonds.
Section 10. In the event any of the Bonds are called for redemption prior to maturity notice thereof identifying said Bonds to be redeemed shall be given by mailing by first class mail, postage prepaid, to the registered owner or owners thereof at the address shown on the registration books not more than sixty (60) days nor less than thirty (30) days prior to the date fixed for redemption; provided, however, that failure to give such notice by mailing or any defect therein to the registered owner of any said Bond designated for redemption shall not affect the validity of the proceedings for the redemption of any other said Bond. All of said Bonds so called for redemption will cease to bear interest on the specified redemption date provided funds for their redemption are on deposit at the place of payment at that time.
Section 11. Each of said Bonds and the provisions for the registration of the Bonds to be endorsed thereon, shall be in substantially the form hereinafter set forth, and the Mayor and the Treasurer of the City are hereby authorized and directed to cause said Bonds to be prepared when they shall have been sold and to execute said Bonds in accordance with their terms:
No. DOLLARS $
UNITED STATES OF AMERICA
STATE OF DELAWARE
THE CITY OF DOVER
GENERAL OBLIGATION BOND
Series 1987
Interest Rate Maturity Date Original Issue Date CUSIP
Registered Owner:
Principal Sum: DOLLARS
THE CITY OF DOVER, in the County of Kent (hereinafter referred to as the “City”), a political subdivision of The State of Delaware, for value received, hereby acknowledges itself indebted and promises to pay to the registered owner named above, or registered assigns or legal representative, the principal sum stated above, on the maturity date stated above, upon presentation and surrender hereof, and to pay interest o the registered owner hereof on the applicable record date at the interest rate per annum stated above, payable on January 1, 1988, and semiannually thereafter on July 1 and January 1, until payment of such principal sum shall have been made. Both the principal of and interest on the bonds are payable in lawful money of the United States of America. Interest on this Bond shall be paid by check or draft mailed to the registered owner as shown on the bond register maintained by the City. The principal amount shall be payable upon presentation and surrender of this Bond by the registered owner at the office of the City Treasurer, City Hall, Dover, Delaware.
In the event this Bond is held by or registered in the name of a securities depository or other agent or nominee of a beneficial owner, by purchase of a Bond the Bondholder agrees that the City shall have no responsibility or liability for any action or inaction by the depository or other agent or nominee in connection with the Bond.
Bonds maturing on or after July 1, 1995 are subject to redemption at the option of the City prior to maturity, as a whole at any time on or after July 1, 1994 or in part in any order of maturity selected by the City on any interest payment date on or after July 1, 1994, (if less than all of said bonds outstanding of a single serial maturity shall be called for redemption, such Bonds to be so redeemed shall be selected by the City by lot) at the redemption prices expressed as percentages of their principal amounts plus accrued interest to the redemption date as set forth in the table below:
Redemption Period (Dates Inclusive) Redemption Price
July 1, through June 30, %
July 1, through June 30, %
July 1, and thereafter %
In the event that this Bond is called for redemption prior to maturity as aforesaid, notice thereof shall be given by first class mail, postage prepaid to the registered owner shown on the registration books not more than sixty (60) days nor less than thirty (30) days prior to the date fixed for redemption. If this Bond is called for redemption as aforesaid, it will cease to bear interest on the specified redemption date provided funds for its redemption are on deposit at the place of payment at that time.
This Bond is one of an issue of bonds of like date and tenor, except as to maturity and rate of interest, and has been duly advertised, and is issued pursuant to Section 50, Chapter 158, Volume 36, Laws of Delaware, as amended (the “City Charter”), as amended, any by Resolutions adopted April 13, 1987 and June 8, 1987 (collectively, the “Resolutions”) by the Mayor and City Council of the City to finance, in whole or in part, certain projects of the City described therein.
It is hereby certified and recited that all conditions, acts and things required by the Constitution or statutes of The State of Delaware to exist, be performed or happen, precedent to or in the issuance of this Bond, exist, have been performed and have appended, and that the amount of this Bond, together with all other indebtedness of the City, is within every debt and other limit prescribed by said Constitution or statutes. The full faith and credit of the City are hereby pledged to the punctual payment of the principal of and interest on this Bond according to its terms.
The Series 1987 Bonds are issuable in the form of registered bonds without coupons in the denominations of $5,000 or any multiple thereof. The owner of any registered Bond or Bonds may surrender the same (together with a written instrument of transfer satisfactory to the City duly executed by the registered owner or his duly authorized attorney) at the office of the City Treasurer, in exchange for an equal aggregate principal amount of registered Bonds, of the same maturity and of any other authorized denominations.
Any transfer of this Bond must be registered, as provided in the Resolutions, upon the Bond Register kept for that purpose at the office of the City Treasurer by the registered owner hereof in person, or by his attorney duly authorized in writing, upon surrender of this Bond together with a written instrument of transfer satisfactory to the City duly executed by the registered owner or his attorney duly authorized in writing, and thereupon a new registered Bond or Bonds, of the same series and security and in the same aggregate principal amounts, shall be issued to the transferee in exchange here for as provided in the Resolution free of charge except for any applicable transfer tax or other governmental charge. The City may deem and treat the person in whose name this Bond is registered as the absolute owner hereof for the purpose of receiving payment of, or on account of, the principal or redemption price hereof and interest due hereon and for all other purposes, as provided in the Resolution.
IN WITNESS WHEREOF, the City has caused this Bond to be signed by the Mayor of The City of Dover by his manual signature or a facsimile thereof and by the Treasurer of The City of Dover by his manual signature or a facsimile thereof, and the official corporate seal of said City or a facsimile thereof to be imprinted or impressed hereon, and this Bond to be dated , .
(SEAL)
Mayor, The City of Dover
Treasurer, The City of Dover
Section 12. The Bonds shall be sold by the City for not less than ninety-eight percent (98%) of par plus accrued interest at a public sale to be held on July 15, 1987 or at such other time as the Mayor and the Treasurer, with the advice of the Financial Advisor, shall determine shall be in the best interest of the City. In connection with such public sale, the City Treasurer is hereby authorized and directed to cause a Notice of Sale, in substantially the following form, to be published in a newspaper of general circulation published in the City of Wilmington, and The City of Dover, Delaware, and in financial newspaper published in The City of New York, State of New York:
NOTICE OF SALE
$1,000,000
THE CITY OF DOVER
General Obligation Bonds, Series 1987
SEALED PROPOSALS will be received by M. C. Karia, Treasurer of the City of Dover, at the offices of Potter Anderson & Corroon, 350 Delaware Trust Building, P.O. Box 951, Wilmington, Delaware 19801, until 12:00 o'clock a.m., Eastern Daylight Savings Time, on July 15, 1987 (at which time and place they will be publicly opened, read and considered) for the purchase of all, but not less than all, of the $1,000,000 General Obligation Bonds, Series 1987 (the “Bonds”) of the City of Dover, Delaware (the “City”) which mature on July 1, in each year as follows:
1988 $ 1996 $
1989 1997
1990 1998
1991 1999
1992 2000
1993 2001
1994 2002
1995
The Bonds are dated July 1, 1987. Interest on the Bonds will be payable initially on January 1, 1988 and semi-annually thereafter on July 1, and January 1.
Both principal and interest on the Bonds will be forwarded to the Depository Trust Company as the record owner of the Bonds. The Bonds will be registered as to both principal and interest, in the denomination of $5,000 and integral multiples thereof.
Book Entry Form of Issue: The Bonds will be issued in book-entry form with no physical distribution of Bond certificates made to the public. One Bond certificate for each maturity will be issued in the name of The Depository Trust Company and immobilized in its custody. A book-entry system will be employed showing ownership of the bonds in principal amounts of $5,000 or integral multiples thereof, with transfers of beneficial ownership effected on the records of The Depository Trust Company (and its participants) pursuant to rules and procedures established by The Depository Trust Company. The winning bidder, as a condition to delivery of the Bonds, shall be required to deposit the Bond Certificates with The Depository Trust Company.
Security: The bonds will be valid and legally binding general obligations of the City secured by the full faith and credit of the City and, unless paid from other sources, will be payable from taxes levied upon all taxable real property within the City without limitation as to rate or amount.
Interest Rates and Award of Bonds: Bidders are invited to name the rate or rates of interest which the Bonds are to bear. The Bonds shall bear interest at a rate or rates not exceeding a true interest cost of eight and one-quarter percent (8-1/4%) per annum, when calculated for all of the Bonds in the aggregate, and must be in a multiple of one-eighth or one-twentieth of one per centum. All Bonds maturing on the same date shall bear interest at the same interest rate. No interest rate named for any maturity may be less than the interest rate named for any prior maturity. The difference between the lowest and the highest interest rate named shall not exceed five percent (5%). Each proposal submitted must offer to purchase all of the Bonds at not less than ninety-eight percent (98%) of par plus accrued interest and must remain firm for four (4) hours after the time specified for the opening of the bids. Unless all bids are rejected, the Bonds will be awarded no later than twelve hours after the opening of the bids to the responsible bidder whose proposal results in the lowest “true” or “Canadian” interest cost to the City assuming none of the bonds are called for redemption prior to final maturity date. True interest cost shall be determined for each bid by doubling the semi-annual interest rate, compounded semi-annually, necessary to discount the debt service payments from the payment dates to July 1, 1987 and to the price bid, excluding interest accrued to the date of delivery. If more than one bid offers the same lowest true interest cost, the successful bid will be selected by lot from among all such bids. Each bidder shall include in its bid a statement of true interest cost offered in its bid, but this statement shall not be deemed to be part of the bid. The successful bidder will be required to certify as to the initial offering price of the Bonds within forty-eight (48) hours after the award of the Bonds.
Redemption Prior to Maturity: The Bonds maturing on or after July 1, 1995 are subject to redemption at the option of the City prior to maturity, as a whole at any time on or after July 1, 1994, or in part in any order of maturity selected by the City on any interest payment date on or after July 1, 1994 (if less than all of said Bonds outstanding of a single serial maturity shall be called for redemption, such Bonds to be so redeemed shall be selected by the City by lot) at the redemption prices expressed as percentages of their principal amounts plus accrued interest to the redemption date as set forth in the table below:
Redemption Period (Dates Inclusive) Redemption Price
July 1, 1994 through June 30, 1995 102%
July 1, 1995 through June 30, 1996 101%
July 1, 1996 and thereafter 100%
Bid Form: All proposals shall be unconditional and bidders in submitting bids should use the Bid Form prepared by the City. The right to waive any requirement and to reject any or all bids for any reason is reserved by the City.
Good Faith Check: Each Bid must be accompanied by a certified or bank treasurer's or cashier's check for $20,000, payable to the order of The City of Dover, Delaware, to secure the City against any loss resulting from a failure of the bidder to comply with the terms of its bid. The check of the bidder whose proposal is accepted will be deposited by the City and credited to the purchase price and the purchaser will be allowed no interest with respect thereto. Checks of unsuccessful bidders will be returned upon the award of the Bonds.
Bond Delivery and Closing Certificates: Closing on the Bonds will occur on or about July 29, 1987 at which time the Bonds will be delivered to the original purchaser upon payment therefor in Federal Reserve funds. At such time, the City will also deliver to the original purchaser of the Bonds (I) a certificate signed by the Mayor and City Treasurer stating (a) that the Preliminary Official Statement and the Official Statement prepared in connection with the offer of sale of the Bonds, as of the dates thereof, did not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statement therein, in light of the circumstances under which they were made, not misleading; and (b) that as of the date of delivery of the Bonds there had been no material adverse change in the condition, financial or otherwise, of the City from the date of the sale of the Bonds to the date of delivery of the Bonds and from that set forth in the Official Statement; (ii) a certificate in form satisfactory to Messrs.. Potter Anderson & Corroon evidencing the proper execution and delivery of the Bonds and receipt of payment therefor; (iii) a certificate dated as of the date of delivery of the Bonds and signed by the officers who signed the Bonds, stating that no litigation is then pending or to the knowledge of such officers, threatened to restrain or enjoin the issuance or delivery of the Bonds or the levy or collection of taxes to pay the Bonds or the interest thereon, or questioning the validity of the statutes or the proceedings under which the Bonds are issued, and that neither the corporate existence or boundaries of the City, nor the title of any of the said officers to their respective offices is being contested, and (iv) a certificate of non-arbitrage signed by the officers who signed the Bonds. The Bonds may be delivered in typewritten or printed form.
Legal Opinion: The City will furnish without cost to the purchaser, at the time the Bonds are delivered, the approving opinion of Messrs.. Potter Anderson & Corroon, Wilmington, Delaware, that the Bonds are valid and legally binding general obligations of the City and, unless paid from other sources, that all taxable real property within the City is subject to the levy of taxes without limitation as to rate or amount. Such opinion will also contain a statement to the effect that said law firm has not verified the accuracy, completeness or fairness of the Official Statement or other documents of the City delivered to the purchasers of the Bonds and takes no responsibility therefor.
Bank Eligibility: In the opinion of Bond Counsel, for the purposes of Sections 265(b) (2) and 291 (e) (1) (B) of the Internal Revenue Code of 1986 (the “Code”), the Bonds, in the hands of a financial institution described therein, will be treated as having been acquired on August 7, 1986. Consequently, the Bonds in the hands of such a financial institution will be subject to the 20% interest disallowance rule of Code Section 291 (1) (3) and not the 100% interest disallowance rule of Code Section 265 (b) (1).
Copies of the Preliminary Official Statement and additional information relative to the City, the Notice of Sale and the Bid Form may be obtained from Mike C. Karia, City Treasurer, First Floor, City Hall, Dover, Delaware 19901 (Tel. No. 302-736-7018) or from Public Financial Management, Inc., 2000 Walnut Street, Philadelphia, Pennsylvania 19103 (Tel. No. 215-567-6100). At the request of the successful bidder, the City will furnish without cost, at the time the Bonds are delivered, up to 50 copies of the Official Statement.
M. C. Karia
City Treasurer
Dated:
Section 13. The Preliminary Offici