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City of Cleveland Codified Ordinances, Chapter #177
PART ONE — ADMINISTRATIVE CODETitle XIII — Fiscal ManagementChapter 177 — Bonds and NotesComplete to June 30, 2007
CROSS REFERENCES
Corporate seal to be affixed to bonds and notes, CO 105.01
Legal and accounting services for bond issues, CO 127.09
Bonds, policies of insurance and instruments of indemnity to be filed with Commissioner of Accounts, CO 171.18
Duties of Sinking Fund Commission, CO Ch 179
The issuance and sale of all bonds or notes of the City except those issued under Sections 3, 10, and 12 of Article XVIII of the Ohio Constitution and other bonds or notes payable solely from earnings or revenues of a project or activity and for the payment of which the full faith and credit of the City are not pledged, shall be in conformity with the provisions of this chapter except as otherwise provided in the particular ordinance for the issuance and sale thereof, or required by statute enacted pursuant to the authority of the Constitution of the State.
(Ord. No. 1748-80. Passed 10-8-80, eff. 10-8-80)
Bonds and notes shall be signed by the Mayor and by the Director of Finance, or in case of the vacancy in the office or disability or absence of either of them, by the person who may be acting in the capacity of the official named during such vacancy, disability or absence, and shall be sealed with the corporate seal of the City. One of such signatures may be a facsimile signature and the seal of the City may be a facsimile seal.
(Ord. No. 770-68. Passed 4-8-68, eff. 4-10-68)
The principal and interest of bonds, except as otherwise provided in the particular ordinance for the issuance and sale thereof shall be payable at the Morgan Guaranty Trust Company of New York, at the Chase Manhattan Bank, N.A. of New York, or at AmeriTrust Company, Cleveland, Ohio, at the option of the holder. Interest coupons having engraved or printed thereon a facsimile signature of the fiscal officer of the City shall be attached to all such bonds. Except as otherwise provided in the particular ordinance for the issuance and sale thereof, the interest on bonds issued after January 1, 1956, including bonds authorized and sold but not delivered, shall be payable semi-annually on June 1 and December 1 of each year until the principal sum is paid commencing in the fiscal year in which the first of such bonds mature, and the interest on notes shall be payable at maturity at the office of the Treasurer.
(Ord. No. 1748-80. Passed 10-8-80, eff. 10-8-80)
All bonds and notes shall be prepared by the Director of Law and shall express upon their face the purpose for which they are issued, the fact that they are issued pursuant to law, the Charter, this chapter, the ordinance under which issued and such other recitals as may be required by laws of Ohio. They shall bear such consecutive numbers as the Director of Finance shall determine. All such bonds and notes shall first be offered at par and accrued interest to the Trustees of the Sinking Fund. If the Trustees refuse to take any or all of them, the Director of Finance shall offer them to the Mayor and the Director of Law for purchase for the credit of the Treasury Investment Account.
(Ord. No. 2641-A-55. Passed 2-27-56, eff. 3-1-56)
Bonds and notes having a maturity of more than one year from date not sold at private sale pursuant to Section 177.04 or pursuant to the general laws of Ohio shall be advertised for sale and sold by the Director of Finance at public sale, as provided by law. The sale may be advertised in financial journals. Anyone desiring to do so may present a bid for such bonds based upon their bearing a different rate of interest from that fixed in the particular ordinance. However, where a fractional rate is bid, such fraction shall be one-eighth of one percent or multiples thereof. In case the Director accepts a bid based upon a rate of interest other than that fixed in the ordinance to issue bonds, such acceptance shall be subject to approval by resolution of Council, which resolution shall be certified to the County Auditor.
(Ord. No. 1748-80. Passed 10-8-80, eff. 10-8-80)
The office of the Director of Finance in the City Hall shall be the place of sale of all bonds; delivery shall be made at the office or at such bank as may be agreed upon by the Director and the purchaser. All proposals for bonds shall be sealed, received up to 12:00 noon, City time, of the day the sale is to take place and shall be opened immediately thereafter in the office. Every bidder shall file with his bid cash, a bank cashier's check or official's check, or a certified check, or any combination thereof, in an amount not less than one percent of the bonds bid for and payable to the order of the Treasurer of the City of Cleveland. Such bank cashier's or official's check shall not be issued by and such certified check shall not be one certified by the bidder. Such cash, bank cashier's or official's check, or certified check of the successful bidder shall be retained unused pending delivery of the bonds to such bidder and, in the event such bidder does not comply with the terms of the notice of sale and his bid, shall be forfeited to the City as full liquidated damages. Bids may be made separately for each issue or for "all or none." However, split rate bids will not be considered on any single issue but different interest rates may be bid for different issues. The right of the City to reject any or all bids shall be specifically reserved and shall be exercised by the Director.
(Ord. No. 1748-80. Passed 10-8-80, eff. 10-8-80)
Except as otherwise permitted by the laws of Ohio, notes having a maturity of not more than one year from date may be advertised for sale and sold in the manner provided in Section 177.05 or may be sold by the Director of Finance at private sale bearing interest at a rate or rates not in excess of the rate or rates fixed in the particular ordinance, at a price of not less than par and accrued interest to the date of delivery.
(Ord. No. 1748-80. Passed 10-8-80, eff. 10-8-80)
Upon the sale of such bonds and notes, the premium and the accrued interest and the amount for interest, if any, shall be paid into the Sinking Fund. The par value realized from the sale except the amount, if any, for interest shall be placed in the City Treasurer or, pursuant to the ordinance authorizing such bonds or notes, deposited with a trustee, fiscal agent or escrow agent, to the credit of the bond fund for the purpose for which issued, specified in the ordinance authorizing such bonds or notes. The amount shall be deemed appropriated for the purpose for which bonds or notes have been issued and sold, and shall be disbursed from the Fund upon proper vouchers in payment of the purpose.
(Ord. No. 1748-80. Passed 10-8-80, eff. 10-8-80)
The interest earned by reason of the investment of money to the credit of a special bond fund for the purpose for which such bonds have been issued shall be paid into the Sinking Fund or the Bond Retirement Fund of the City.
(Ord. No. 104-59. Passed 1-26-59, eff. 1-29-59)
(a) The cost of advertising the sale of the cost of printing and signing of bonds and notes of the City and of an official statement and related documents, and the cost of the approving opinion herein provided for and the cost of such professional reports as the Director of Finance may deem necessary for the sale of the bonds or notes shall be paid from the proceeds of such bonds or notes, unless the payment of such costs is otherwise provided for.
(b) The Director of Finance shall have authority to procure the printing of bonds and notes of the City and of an official statement and related documents. Without competitive bidding, when in the judgment of the Board of Control, it is in the best interests of the City that such requirement be waived.
(c) The Director of Finance shall have authority to procure the services of financial advisors and the preparation of professional reports, including but not limited to accounting, engineering, and other professional reports, as he may deem necessary or desirable for the sale of the bonds or other obligations.
(d) When bonds or other obligations of the City are to be sold, the Director of Law shall have the authority hereunder to procure an opinion as to the validity of such bonds or other obligations from an attorney accustomed to passing upon such questions, for the use and benefit of the City and of any bidder on or purchaser of such bonds or notes.
(e) The provisions of this section apply to all bonds and notes of the City, including those issued under Sections 3, 10, and 11 of Article XVIII of the Ohio Constitution and other bonds or notes payable solely from earnings or revenues of a project or activity and for the payment of which the full faith and credit of the City are not pledged.
(Ord. No. 2886-87. Passed 12-21-87, eff. 12-29-87)
The designation of specific officials wherever set forth in this chapter or in the particular ordinance issuing bonds shall include the person who may be acting in the capacity of any designated official during the vacancy in such office or the disability or absence of such designated official.
(Ord. No. 2641-A-55. Passed 2-27-56, eff. 3-1-56)
All bonds and notes issued by the City shall be recorded in the Office of the Sinking Fund Commission. The record shall show the date of issue, for what purpose issued, rate of interest, amount of issue, when the principal and interest are due and where payable.
(Ord. No. 1748-80. Passed 10-8-80, eff. 10-8-80)
Forthwith upon passage of an ordinance authorizing the issue of bonds or notes, the Director of Finance shall deliver a certified copy thereof to the County Auditor.
(Ord. No. 2641-A-55. Passed 2-27-56, eff. 3-1-56)
On demand of the owner or holder of any of its coupon bonds, the Sinking Fund Commission may issue instead thereof a registered bond of the City not exceeding in amount the coupon bonds offered in exchange. The registered bond shall be signed and sealed as other Municipal bonds are signed and sealed, and bear the same rate of interest, be payable both principal and interest at the same time and place as the coupon bonds for which the exchange is made and shall be of such denomination as the holder of the coupon bonds may elect.
(Ord. No. 2641-A-55. Passed 2-27-56, eff. 3-1-56)
When due, the interest and principal of such registered bonds shall be paid only to the person, corporation, or firm appearing by the records of the City to the owner thereof, or order. Such registered bonds may be transferred on such record by the owner in person or by a person authorized to do so by power of attorney duly executed. The exchange and registration here required shall be transacted by the Sinking Fund Commission at their business office where a registry shall be kept for that purpose which shall show the date, series, denomination and owner of such registered bonds, and the number and series of the coupon bonds for which they were exchanged.
(Ord. No. 2641-A-55. Passed 2-27-56, eff. 3-1-56)
No registered bonds shall be issued by the Sinking Fund Commission until the bonds and coupons offered in exchange shall have been cancelled or destroyed. The Commission shall make its own rules for the cancellation or destruction of coupon or registered bonds offered in exchange and shall charge the holder of the coupon or registered bond a fee of not less than one dollar ($1.00) as compensation for the expense of making the exchange of each registered bond.
(Ord. No. 2641-A-55. Passed 2-27-56, eff. 3-1-56)
Whenever bonds, notes, checks, or certificates of indebtedness, issued by the City, are lost or destroyed, the Director of Finance as Secretary of the Sinking Fund Commission, acting on behalf of the City, may reissue to the holder duplicates thereof in the same form and signed as the original obligations were signed, which obligation so issued shall plainly show upon its face that it is a duplicate of such lost bond, note, check, or certificate, upon proof of such loss or destruction, upon payment of the reasonable expense thereof, and upon being furnished with a bond of indemnity, satisfactory to the Director of Finance as Secretary of the Sinking Fund Commission, against all loss or liability for or on account of the obligations so lost or destroyed.
(Ord. No. 2377-85. Passed 10-21-85, eff. 10-23-85)
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