School Districts Revenue Bonds Financing Program
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NEW ISSUE (See “RATINGS” herein) $211,225,000 DORMITORY AUTHORITY OF THE STATE OF NEW YORK SCHOOL DISTRICTS REVENUE BOND FINANCING PROGRAM REVENUE BONDS $80,505,000 $41,870,000 $37,010,000 SERIES 2016E SERIES 2016F SERIES 2016G $22,725,000 $10,140,000 $18,975,000 SERIES 2016H SERIES 2016I SERIES 2016J Dated: Date of Delivery Due: As shown on the inside cover Payment and Security: The School Districts Revenue Bond Financing Program Revenue Bonds, Series 2016E (the “Series 2016E Bonds”), the School Districts Revenue Bond Financing Program Revenue Bonds, Series 2016F (the “Series 2016F Bonds”), the School Districts Revenue Bond Financing Program Revenue Bonds, Series 2016G (the “Series 2016G Bonds”), the School Districts Revenue Bond Financing Program Revenue Bonds, Series 2016H (the “Series 2016H Bonds”), the School Districts Revenue Bond Financing Program Revenue Bonds, Series 2016I (the “Series 2016I Bonds”) and the School Districts Revenue Bond Financing Program Revenue Bonds, Series 2016J (the “Series 2016J Bonds” and, together with the Series 2016E Bonds, the Series 2016F Bonds, the Series 2016G Bonds, the Series 2016H Bonds and the Series 2016I Bonds, the “Series 2016 Bonds”), will be special obligations of the Dormitory Authority of the State of New York (“DASNY”), payable solely from and secured by a pledge of payments to be made by the applicable School Districts described in Appendix B hereto (collectively, the “School Districts”) in the State of New York (the “State”) pursuant to the applicable Financing Agreements (each, an “Agreement” and collectively, the “Agreements”), dated as of April 13, 2016, between DASNY and such School Districts, and all funds and accounts (except the Arbitrage Rebate Fund) authorized under DASNY’s Master School Districts Revenue Bond Financing Program Revenue Bond Resolution adopted May 29, 2002, as amended and supplemented (the “Master Resolution”), and established by DASNY’s Series Resolutions, adopted April 13, 2016, authorizing such Series (individually, the “Series 2016E Resolution,” the “Series 2016F Resolution,” the “Series 2016G Resolution,” the “Series 2016H Resolution,” the “Series 2016I Resolution” and the “Series 2016J Resolution” and, together, the “Series 2016 Resolutions”). The Master Resolution and the Series 2016 Resolutions are herein collectively referred to as the “Resolutions.” None of the funds and accounts established under a Series Resolution to secure a Series of Bonds shall secure any other Series of Bonds. There is no debt service reserve fund securing the Series 2016 Bonds and no real property of any School District secures the Series 2016 Bonds. Each School District is required under its respective Agreement to deliver its general obligation bonds (the “School District Bonds”) to DASNY to evidence its obligation to repay the loan (the “Loan”) to be made by DASNY to the School District from proceeds of the Series 2016 Bonds relating to such Agreement. The principal and redemption price of and interest on the School District Bonds (“Loan Repayments”) are scheduled to be sufficient to repay, when due, the principal and redemption price of and interest on the Loan. Each School District is also required under its respective Agreement to pay such amounts as are required to be paid under such Agreement, including the fees and expenses of DASNY and U.S. Bank National Association, New York, New York, as trustee and paying agent (the “Trustee” and the “Paying Agent”). To secure its payment of all amounts due under its Agreement, each School District under its Agreement has assigned and pledged to DASNY a sufficient portion of public funds apportioned or otherwise made payable by the State to such School District (the “Pledged Revenues”). Each School District has directed and acknowledged that the Pledged Revenues are to be paid directly to the Trustee pursuant to an assignment by DASNY as provided in the Act (as defined herein) and the Memorandum of Understanding among DASNY, the Comptroller of the State and the Commissioner of Education of the State upon the occurrence of certain events of default under its respective Agreement. Each Series of the Series 2016 Bonds will be separately secured by the pledge and assignment to the Trustee of the payments to be made by each School District to DASNY under its respective Agreement and on the School District Bonds and DASNY’s interest in the Pledged Revenues pledged and assigned to DASNY under the Agreements. Each School District will pledge its full faith and credit to the payment of the principal of and interest on the School District Bonds it delivers to DASNY and has the power and is required under State statutes to levy and collect ad valorem taxes on all taxable real property within the School District for such payment. No School District is obligated to make payments on behalf of any other School District nor are the Pledged Revenues of any School District pledged to secure the obligation of any other School District. A default by any School District could cause a default on the applicable Series of the Series 2016 Bonds. See “PART 2 – SOURCES OF PAYMENT AND SECURITY FOR THE SERIES 2016 BONDS.” The Series 2016 Bonds will not be a debt of the State nor will the State be liable thereon. DASNY has no taxing power. Bond Insurance: The scheduled payment of principal of and interest on certain maturities of certain Series of the Series 2016 Bonds as set forth on the inside cover page of this Official Statement (collectively, the “Insured Bonds”) when due will be guaranteed by a municipal bond insurance policy to be issued concurrently with the delivery of the Insured Bonds by Build America Mutual Assurance Company (“BAM”) or Assured Guaranty Municipal Corp. (“AGM”), as applicable. Description: The Series 2016 Bonds will be issued as fully registered bonds in denominations of $5,000 or any integral multiple thereof. Interest on the Series 2016 Bonds (due each April 1 and October 1, commencing April 1, 2017 with respect to the Series 2016E Bonds, the Series 2016F Bonds, the Series 2016G Bonds and the Series 2016H Bonds and October 1, 2017 with respect to the Series 2016I Bonds and the Series 2016J Bonds) will be payable by check or draft mailed to the registered owners of the Series 2016 Bonds at their addresses as shown on the registration books held by the Trustee or, at the option of a registered owner of at least $1,000,000 in principal amount of the Series 2016 Bonds, by wire transfer to the wire transfer address within the continental United States to which the registered owner has instructed the Trustee to make such payment at least five (5) days prior to the fifteenth (15th) day of the month next preceding an interest payment date. The principal and Redemption Price of the Series 2016 Bonds will be payable at the principal corporate trust office of the Trustee and Paying Agent or, with respect to Redemption Price, at the option of a registered owner of at least $1,000,000 in principal amount of the Series 2016 Bonds, by wire transfer to the owner of such Series of Series 2016 Bonds as more fully described herein. The Series 2016 Bonds will be issued initially under a Book-Entry Only System, registered in the name of Cede & Co., as nominee for The Depository Trust Company (“DTC”). Individual purchases of beneficial interests in the Series 2016 Bonds will be made in Book-Entry form without certificates. So long as DTC or its nominee is the registered owner of the Series 2016 Bonds, payments of the principal of and interest on such Series of Series 2016 Bonds will be made directly to DTC or its nominee. Disbursement of such payments to DTC participants is the responsibility of DTC and disbursement of such payments to the beneficial owners is the responsibility of DTC participants. See “PART 3 – THE SERIES 2016 BONDS – Book-Entry Only System” herein. Redemption: The Series 2016 Bonds are subject to redemption prior to maturity as more fully described herein. Tax Exemption: In the opinion of Barclay Damon, LLP, Co-Bond Counsel to DASNY, under existing statutes, regulations, rulings and court decisions and assuming compliance with the covenants herein and the accuracy of certain representations by DASNY and the School Districts (and their successors), interest on the Series 2016 Bonds is excluded from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986, as amended (the “Code”). Barclay Damon, LLP is also of the opinion that interest on the Series 2016 Bonds is not an “item of tax preference” for purposes of the individual and corporate alternative minimum taxes imposed under the Code; provided, however, that interest on the Series 2016 Bonds owned by corporations will be included in the calculation of adjusted current earnings, a portion of which is an adjustment to corporate alternative minimum taxable income for purposes of calculating the alternative minimum tax imposed on corporations. Barclay Damon, LLP and Marous Law Group, P.C., as Co-Bond Counsel, are further of the opinion that interest on the Series 2016 Bonds is exempt under existing laws from personal income taxes imposed by the State of New York and its political subdivisions (including The City of New York). See “PART 10 – TAX MATTERS” herein regarding certain other tax considerations. The Series 2016 Bonds are offered when, as and if issued and received by the Underwriters. The offer of the Series 2016 Bonds may be subject to prior sale or may be withdrawn or modified at any time without notice. The offer is subject to the approval of legality by Barclay Damon, LLP, Albany, New York, and Marous Law Group, P.C., New York, New York, Co-Bond Counsel to DASNY, and to certain other conditions.