OFFICIAL NOTICE OF INTENT TO SELL BONDS Upon not less than twenty four (24) hours' notice given by telephone or otherwise as provided below, the undersigned Auditor of Clark County, Indiana (County) will receive and consider bids for the purchase of the following described bonds. Any person interested in submitting a bid for the bonds must furnish in writing to the undersigned Auditor of the County, c/o H.J. Umbaugh & Associates, Certified Public Accountants, LLP, 8365 Keystone Crossing, Suite 300, P.O. Box 40458, Indianapolis, IN 46240-0458, (317) 465-1500, (317) 465-1550 (facsimile) or via e-mail to mouser@umbaugh.com, on or before 11:00 a.m. (Indianapolis time) on December 5, 2016, the person's name, address, and telephone number. The persons may also furnish a telecopy number or an e-mail address. The undersigned Auditor will notify (or cause to be notified) each person so registered of the date and time bids will be received 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 telecopy or e-mail if a telecopy number or e-mail address has been received. The sale is expected to take place on December 6, 2016. At the time designated for the sale, the Auditor will receive and consider bids for the purchase of the bonds of the County designated Judgment Funding Bonds of 2016 in the aggregate amount of $9,370,000. Bidders may bid a net discount not to exceed 0.5% of the par value of the bonds. The bonds will bear interest at a rate or rates not to exceed 3% per annum (the exact interest rate or rates will be determined by bidding). Interest will be payable semiannually on January 1 and July 1 of each year, beginning on July 1, 2017. Interest will be calculated on a 360 day year consisting of twelve 30 day months. Said bonds will be dated as of the date of delivery of the bonds, will be in minimum denominations of $100,000 and multiples of $1,000 in excess thereof and will mature semiannually on January 1 and July 1 on the dates and in the amounts as follows: Date Amount 07/01/17 $4,645,000 01/01/18 4,725,000 The bonds may be issued as one term bond, upon election of the successful bidder. Such term bond shall have a stated maturity of January 1, 2018. The term bond shall be subject to mandatory sinking fund redemption and final payment(s) at maturity at 100% of the principal amount thereof, plus accrued interest to the redemption date, on dates consistent with the above schedule. The bonds are not subject to optional redemption prior to maturity. Principal is payable at the office of a registrar and paying agent to be designated by the County. Interest shall be paid by check mailed to the registered owners or by wire transfer to depositories. The bonds will be issued in fully registered form. Each bid must be for all of the bonds and must state the rate or rates of interest in multiples of 1/8 or 1/100 of 1%. Any bids specifying two or more interest rates shall also specify the amount and maturities of the bonds bearing each rate, but all bonds maturing on the same date shall bear the same single interest rate. The rate on any maturity shall be equal to or greater than the rate on the immediately preceding maturity. The award will be made to the best bidder complying with the terms of sale and offering the lowest net interest cost to the County, to be determined by computing the total interest on all of the bonds to their maturities and adding thereto the discount bid, if any, and deducting therefrom the premium bid, if any. Although not a term of sale, it is requested that each bid show the net dollar interest cost to final maturity and the net effective average interest rate on the entire issue. No conditional bid or bids for less than 99.5% of the par value of the bonds will be considered. The right is reserved to reject any and all bids. In the event no satisfactory bids are received at the time of the sale, the sale will be continued from day to day thereafter, without further advertisement for a period of thirty (30) days during which time no bid which provides a higher net interest cost to the County than the best bid received at the time of the advertised sale will be considered. Each bid must be on a customary bid form which shall be enclosed in a sealed envelope addressed to the undersigned Auditor and marked Bid for Clark County Judgment Funding Bonds of 2016. The successful bidder, at the option of the County, may be required to submit a certified or cashier's check or a wire transfer in the amount of $93,700 (Deposit). If a check is submitted, it shall be drawn on a bank or trust company which is insured by the Federal Deposit Insurance Corporation. In either case, the Deposit shall be payable to the Clark County, Indiana, and shall be held as a guaranty of the performance of the bid. The successful bidder will be required to submit its Deposit to the County in the form of a certified or cashier's check (or wire transfer such amount as instructed by the County) not later than 3:30 p.m. (Eastern time) on the next business day following the award. No interest on the Deposit will accrue to the successful bidder. If the successful bidder fails to honor its accepted bid, the Deposit will be retained by the County. The successful bidder will be required to make payment for such bonds in Federal Reserve funds or other immediately available funds and accept delivery of the bonds within five days after being notified that the bonds are ready for delivery, at such bank in the City of Indianapolis, Indiana, or the City of Jeffersonville, Indiana, as the purchaser shall designate, or at such other location which may be mutually agreed to by the County and such bidder. It is anticipated that the bonds will be ready for delivery within thirty days after the date of the sale and if not ready for delivery within forty five days after the sale date, the purchaser shall be entitled to rescind the sale and obtain the return of the Deposit. The opinion of Ice Miller LLP, bond counsel of Indianapolis, Indiana, approving the legality of the bonds, together with a transcript of the bond proceedings, and closing certificates in the usual form showing no litigation, will be furnished to the successful bidder at the expense of the County. The bonds are being issued under the provisions of Indiana Code 5-1-8 and 36-2-6-18 for the purpose of providing funds to be applied on the costs of funding judgments entered against the County, together with all incidental expenses on account of the issuance of the bonds. The bonds constitute general obligations of the County. Principal of and interest on the bonds are payable from an ad valorem property tax levied and collected on all taxable property within the County. In the opinion of bond counsel, under the federal statutes, decisions, regulations and rulings existing on this date, the interest on the bonds is excludable from gross income for purposes of federal income taxation. The bonds are subject to the Internal Revenue Code of 1986 as in effect on the date of their issuance (Code) which imposes limitations on the issuance of obligations like the bonds under federal tax law. The County has covenanted to comply with those limitations to the extent required to preserve the exclusion of interest on the bonds from gross income for federal income tax purposes. The County has designated the bonds for purposes of Section 265(b) of the Code to qualify for the $10,000,000 annual exception from the 100% disallowance, in the case of banks and other financial institutions, of the deduction for interest expense allocable to tax-exempt obligations. The County has not prepared an Official Statement relating to the bonds but information concerning the bond issue and the County may be obtained from the County's Financial Advisor, H.J. Umbaugh & Associates, Certified Public Accountants, LLP, 8365 Keystone Crossing, Suite 300, Indianapolis, Indiana 46240, (317) 465-1500. The successful bidder will be required to execute and deliver a sophisticated investment letter in a form prepared by bond counsel to satisfy state and federal securities laws. Dated this 21st day of November, 2016. /s/ R. Monty Snelling Clark County, Auditor hspaxlp
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