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Borough o f HonesdaleWayne County, PennsylvaniaO R D I N A N C E NO. 663A N O R D I N A N C E INCREASING T H E INDEBTEDNESS OFBorough o f Honesdale,Wayne C O U N T Y , P E N N S Y L V A N I A , B Y T H EISSUE OF A G E N E R A L O B L I G A T I O N N O T E I N T H E A M O U N T OF 46.959.65 FOR S U N D R Y PURPOSES; F I X I N G T H E F O R M , N U M B E R ,D A T E , INTEREST,ANDMATURITYTHEREOF;MAKINGAC O V E N A N T FOR T H E P A Y M E N T OF T H E D E B T SERVICE O N T H EN O T E ; P R O V I D I N G FOR T H E F I L I N G OF T H E REQUIRED D O C U M E N T ;PROVIDING FOR T H E APPOINTMENTOF A SINKINGFUNDDEPOSITORY FOR T H E N O T E ; A N D A U T H O R I Z I N G E X E C U T I O N ,SALE A N D D E L I V E R Y THEREOF.WHEREAS, i t is necessary that the indebtedness o f the Borough o f Honesdale, Wayne County,Pennsylvania be increased for the following purpose: the purchase o f 2014 John Deere 310SKBackhoe/Loader; andWHEREAS, Honesdale Borough has received preliminary realistic cost estimates ftomprofessional consultants indicating the sum o f 46,959.65 w i l l be needed to purchase the subjectpiece o f equipment; andWHEREAS, the proposed increase o f debt, together with its nonelectoral indebtedness and itslease rental indebtedness presently outstanding, w i l l not cause the limitations o f HonesdaleBoroughdebt incurring power, pursuant to constitutional and statutory authority to be exceeded;N O W THEREFORE, B E I T O R D A I N E D A N D E N A C T E D by the Borough o f HonesdaleCouncil, Wayne Cotmty, Pennsylvania, and i t is hereby ordained and enacted by the authority o fsame as follows:SECTION 1. That the aggregate principal amount o f the Note o f the Borough Council o f theBorough o f Honesdale, Wayne County, Pennsylvania, proposed to be issued is 46,959.65same to be issued for the foregoing purposes and same to be inciured as nonelectoral debt.SECTION 2. The period o f usefiil life o f the equipment for which this obligation is to be issuedis estimated to be in excess o f 5 years.SECTION 3. Said indebtedness shall be evidenced by one general obligation Note, i n fullyregistered form, i n the sum o f 46,959.65 dated and bearing interest from the eariiest date o fpossible issiK o f said Note under the statutory time requirements as set forth i n the Act o f theGeneral Assembly o f the Commonwealth o f Pennsylvania approved the 28th day o f A p r i l ,1978, being A c t 52 o f 1978 Session and known as Honesdale Borough Debt Act, at the rate o finterest o f 2 . 2 1 % per annum, payable on the unpaid balance o f said Note on aimual paymentsbeginning i n the month o f August 2014 during the term o f said Note, together w i t h interest onoverdue principal, and to the extent permitted by law, on overdue interest, at the rate o f 2.21 %per annum (computed o n the basis o f 365 days to the year) until p a i 4 which Note shall mature ,i n installments on the annual anniversary date o f said Note as follows:,. ; ,

iiAMORTIZATION SCHEDULE;- Prinelprt*46.959.6Sft«Ie«aac«aBofiowar:tosn 0«te01-28-2014MoturitvOS01-2019t o s n No" caw/coaAccount InHtote -m (ho b o u i s abovo ftfo lot t t n i c r ' s uao only a n d d o n o l BmH ffio oppliccbirnv of this ]ocun ont to a n y pattii ulor loan oi item.A n y i t e m 3! 9v c containing h a s tut e n oniHtender:BOAOUOH C F HONESDAIETHEOIMIBANXChutch SttMtHonMthto, PA 18431IS701 2 » . 1 9 7 0OisbwtMncntCMo: f/.av 1, .63101.22O.OO52.3262.32O.OOo. .S452.3250.61O.OO9.391.932014 TOTALS:02-O1-201S05 01 201505 01-201508-01-201511-O1-2015346«7 1708 01 201711-01-2017*» - IS16172017 01-2018fIS»212ai«TOTAt CE:U.S. R t .9350.075.333.116.6846,959.65Th?* i s a n e s t i m o t e d l o a n amtiftization s d i e t i u t e .amounts. 939.391.930.00A c t u a l a m o u n t s m a y vary If o a y m e n t s a r o m a d e o n different d a t e s or in differant Honesdale Boroughreserves the right to anticipate any or all installments o f principal or anypayment o f interest at any time prior to the respective payment dates thereof, without notice orpenalty.The principal and interest o f said Note shall be payable at the ofBce o f the sinking funddepository selected for the Note as hereinafter provided.SECTION 4. The said Note is hereby declared to be a general obligation o f the Borough o fHonesdale, Wayne County, Pennsylvania. Honesdale Borough hereby covenants that i t shallinclude the amoimt o f debt service on the Note for each fiscal year i n which such sums arepayable i n its budget for that year; shall appropriate such amounts to the payment o f such debtservice; and shall duly and punctually pay or cause to be paid the principal o f the Note and theinterest thereon at the dates and places and i n the manner slated i n the Note according to the trueintent and meaning thereof, and for such proper budgeting, appropriation, and payment, the fuUfaith, credit and taxing power o f the Borough o f Honesdale is hereby irrevocably pledged.The amounts which Honesdale Borough hereby covenants to pay i n each o f the followingfiscal years on the basis o f an interest rate o f 2.21% are as follows;Principal201420152016201720182019 9,391.93 9,391.93 9,391.93 9,391.93 9,442.54Interest 523.16 933.17 727.89 518.04 310.49 102.93

SECTION 5. The f o n n o f said Note shall be substantially as set forth i n the attached Exhibit N .SECTION 6. The said Note shall be executed i n the name and under the corporate seal o fHonesdale Borough by the Coimcil President and Finance Chairman and attested to by theSecretary. The Treasurer is hereby authorized and directed to deUver said Note to the purchaser,and receive payment therefor on behalf o f the local government unit. The Borough SoHcitorand Secretary o f Honesdale Borough are authorized and directed to prepare, verify and file thedebt statement required by Section 8110 o f the A c t and to take other necessary action, including,i f necessary or desirable, any statements required to qualify any portion o f the debt from theappropriate debt limit as self-liquidating or subsidized debt.SECTION 7.The Honesdale National Bank is hereby designated as the Sinking FundDepository for the obligation herein authorized, and there is hereby created and established aSinking Fund, to be known as "Sinking Fund 2014 Backhoe/Loader General ObUgationNote" forthe payment o f Ibe principal and interest thereon which shall be deposited into the Sinking Fundno later than the date upon w h i c h the same becomes due and payable. The Treasurer shalldeposit into the Sinking Fimd, which shall be maintained until such obligation is paid i n full,sufficient amounts for payment o f principal and interest on the obligation no later than the dateupon which such payments shall become due. The Sinking Fund Depository shall, as and whensaid payments are due, without fiirther action by the local government unit, withdraw availablemonies i n the Sinking Fxmd and apply said monies to payment o f principal and interest on theobligatiotLSECTION 8. The Council President and Borough Treasurer o f Honesdale Borough arehereby authorized to contract w i t h The Honesdale National Bank for its services as SinkingFimd Depository for the Note and paying agent for the same.SECTION 9. I n compliance w i t h Section 8161 o f the Act, the members o f the governing bodyhave determined that a private sale by negotiation rather than public sale is i n the best financialinterest o f the local government unit. Therefore, the general obligation Note i n the amount o f 46,959.65, herein authorized to be issued and sold is hereby awarded and sold to The DimeBank (Lender) i n accordance w i t h its proposal to purchase the said Note at par; provided the saidNote is dated the delivery thereof to the The Ehme Bank (Lender) and is i n the form set forth i nthis Ordinance as Exhibit N ; and further provided that the proceedings have been approved bythe Department o f Community and Economic Development i f such approval is required underthe provisions o f the Act.SECTION 10. The action o f the proper oflBcers and the advertising o f a stmunary o f thisOrdinance as required by law i n the Wayne Independent, a newspaper o f general circulation, isratified and confirmed. The advertisement i n said paper o f the enactment o f the ordinance ishereby directed w i t h i n fifteen (15) days following the day o f final enactment.SECTION 11. A l l ordinances or parts o f ordinances not i n accord w i t h this Ordinance are herebyrepealed insofar as they conflict herewith.O R D A I N E D A N D E N A C T E D THISiC JT day o f, 2014.Honesdale Borough CouncilAttest:'— ' f/ ' ( . ( —iith Poltanis, Borough SecretaryApproved, thisPennsylvania.Attest: .-—. , - /J a n S s L . Brennaa, Jr.,,Council President2014, by the Mayor of Honesdale Borough, Wayne County,i - y ' — -Poltams, Borough SecretaryC —Edward Langefitloerfer, o r

Exhibit N.U N I T E D STATES OF A M E R I C AC O M M O N W E A L T H AL OBLIGATION NOTE 46,959.65 D A T E D : '. ; , ; . . K N O W A L L M E N B Y THESE PRESENTS, that the Borough o f HonesdaleWayne County, Commonwealth o f Pennsylvania, a local goverament unit existing byand under the laws o f said Commonweal , for value received, hereby acknowledgesitself indebted and promises to pay to the purchaser, or registered assigns, the sum o fforty six thousand, nine hundred fifty-nine dollars and sixty-five cents { 46,959.65 )i n installments as follows:Principal201420152016201720182019 9,391.93 9,391.93 9,391.93 9,391.93 9,442.54' ' Interest 523.16 933.17 727.89 518.04 310.49 102.93w i t h interest on the unpaid principal balance at the rate o fpayable on, 20:percent (.%) per annum,, together w i t h interest on overdue principal, and tothe extent permitted by law, on overdue interest, at the rate o fpercent (%) perannum (computed on the basis of365 days to the year), w i t h the option i n the local*government unit to anticipate any installment o f principal or any payment o f interest at anytime prior to the respective payment dates thereof; without notice o f penalty.Both principal and interest are payable i n such coin or currency as at the respectivedates o f payment thereof shall be legal tender for the payment o f public and private debts, atthe office o f,(Lender),Honesdale, Pennsylvania.It is hereby recited that this Note is authorized to be issued i n accordance w i t h the Acto f the General Assembly o f the Commonwealth o f Pennsylvania approved the 28th day o fA p r i l , 1978, being Act 52 o f the 1978 Session.It is hereby certified that all acts, conditions, and things required to be or be done,happen, and be performed precedent to and i n the issuance o f this Note or in the creation o f thedebt o f which i t is evidence, have been done, happened and been performed i n regular and dueform and manner as required by law; and that this Note, together with all other indebtedness o fthe said local government unit is not i n excess o f any constitutional or statutory limitation andfor the proper budgeting, appropriation, and the prompt and full payment o f all the obligationso f this Note the entire full faith, credit and taxing power o f said local govenunent unit are