NEW ITEMS

Meeting of the Cook County Board of Commissioners

County Board Room, County Building

Thursday, February 7, 2002, 10:00 A.M.

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PROPOSED ORDINANCE

ITEM #1

Transmitting a Communication, dated February 5, 2002 from

THOMAS J. GLASER, Chief Financial Officer, Bureau of Finance

I am transmitting for your approval an Ordinance in support of the proposed sale of Cook County's General Obligation Bonds, Series 2002.

I respectfully request that this item be referred to the Finance Committee for consideration at a Public Hearing.

PROPOSED ORDINANCE

An Ordinance providing for the issuance of one or more series of General Obligation Bonds, Series 2002, of The County of Cook, Illinois.

WHEREAS, Section 6(a) of Article VII of the 1970 Constitution of the State of Illinois provides that “a County which has a Chief Executive Officer elected by the electors of the County ... (is) a Home Rule Unit” and The County of Cook, Illinois (the “County”), has a Chief Executive Officer elected by the electors of the County and is therefore a Home Rule Unit and may, under the power granted by said Section 6(a) of Article VII of the Constitution of 1970, as supplemented by the Local Government Debt Reform Act, as amended, and the other Omnibus Bond Acts, as amended (collectively, the “Act”), exercise any power and perform any function pertaining to its government and affairs, including, but not limited to, the power to tax and to incur debt; and

WHEREAS, pursuant to the provisions of the Act, the County has the power to incur debt payable from ad valorem property tax receipts or from any other lawful source and maturing within 40 years from the time it is incurred without prior referendum approval; and

WHEREAS, the Board of Commissioners of the County (the “Corporate Authorities”) has not adopted any ordinance, resolution, order or motion or provided any County Code provisions which restrict or limit the exercise of the home rule powers of the County in the issuance of general obligation bonds without referendum for corporate purposes or which provides any special rules or procedures for the exercise of such power; and

WHEREAS, the County, by its Corporate Authorities, has previously made and does now affirm the determination that it is desirable and in the public interest of the County to undertake certain County construction, acquisition and equipment projects, being the Public Safety Funds Project, the Health Fund Project, the Corporate Fund Project and the Capital Equipment Project, each as hereinafter further itemized, to create certain reserves for tort immunity and self-insurance purposes, being the Insurance Reserve Project, and to increase the working cash fund of the County, being the Cash Management Project; and

WHEREAS, the Public Safety Funds Project includes, but is not limited to the construction, equipping, renovation and replacement of court, jail and related facilities; and

WHEREAS, the Health Fund Project includes, but is not limited to the construction, equipping, renovation and reconstruction of various County health facilities, including but not limited to, the new Cook County Hospital and County health clinics; and

WHEREAS, the Corporate Fund Project includes the improvement and renovation of county facilities, including but not limited to the County Building, the Cook County Administration Building, elevator modification and telecommunication wiring; and

WHEREAS, the Capital Equipment Project includes the purchase of capital equipment for use by various County departments; and

WHEREAS, the Insurance Reserve Project includes, but is not limited to, the establishment of reserves for expected losses for liability or any liability for which the County is authorized to purchase insurance, including the payment of any tort judgment or settlement for compensatory damages for which the County or an employee while acting within the scope of his or her employment is liable; and

WHEREAS, the Cash Management Project includes the establishment of a fund for the purpose of enabling the County to have in its treasury at all times sufficient money to meet demands thereon for ordinary and necessary expenditures for general corporate purposes; and

WHEREAS, the aggregate costs of the Public Safety Fund Project, the Health Fund Project, the Corporate Fund Project, and the Capital Equipment Project, including landscaping and improvement of grounds, the acquisition of real property or rights therein and such personalty or rights therein as may be necessary for the efficient acquisition, construction or operation of the projects, operating costs, legal, financial, consulting, engineering, architectural and related professional services, and such appurtenances as shall be necessary, together with the aggregate costs of the Insurance Reserve Project and the Cash Management Project (collectively, the “Projects”), are in excess of funds lawfully available and on hand and anticipated to be on hand from time to time; and

WHEREAS, the Corporate Authorities do hereby determine that it is advisable and in the best interests of the County to borrow from time to time for the purpose of paying the costs of the Projects, and to pay costs of issuance, and, in evidence of such borrowing, to issue one or more series of full faith and credit bonds (collectively, the “Bonds”) of the County as hereinafter authorized, provided that at any given time the aggregate principal amount of the Bonds outstanding shall not exceed the amount of $600,000,000:

NOW THEREFORE Be It Ordained by the Board of Commissioners of The County of Cook, Illinois, as follows:

SECTION 1. DEFINITIONS.

The following words and terms used in this ordinance shall have the following meanings unless the context or use indicates another or different meaning:

“Act” means Section 6(a) of Article VII of the 1970 Constitution of the State of Illinois, as supplemented and amended by the Local Government Debt Reform Act of the State of Illinois, as amended, and the other Omnibus Bond Acts, as amended.

“Agency Obligation” means obligations issued or guaranteed by any of the following agencies, provided that such obligations are backed by the full faith and credit of the United States of America: Export-Import Bank of the United States direct obligations or fully guaranteed certificates of beneficial ownership; Federal Financing Bank; Farmers Home Administration certificates of beneficial ownership; Federal Housing Administration Debentures; Government National Mortgage Association guaranteed mortgage-backed bonds; General Services Administration participation certificates; United States Maritime Administration obligations guaranteed under Title XI; New Communities Debentures; United States Public Housing Notes and Bonds; and United States Department of Housing and Urban Development Project Notes and Local Authority Bonds.

“Authorized Denomination” means (i) for Current Interest Bonds, $5,000 or any integral multiple thereof, (ii) for Capital Appreciation Bonds, Original Principal Amounts of such Capital Appreciation Bonds or any integral multiple thereof, and (iii) for Variable Rate Bonds, the amounts as provided in an Indenture executed by the County in connection therewith.

“Bond Fund” means the account of that name established and further described in Section 12 of this Ordinance.

“Bond Order” means each written Bond Order and Notification of Sale signed by the Designated Officers and setting forth certain details of the Bonds as hereinafter provided.

“Bond Register” means the books for the registration and transfer of the Bonds to be kept by the Trustee on behalf of the County.

“Bonds” means the bonds authorized under this Ordinance and to be issued in one or more series pursuant to this Ordinance and one or more Bond Orders. Any reference in this Ordinance to “Series 2002A Bonds,” “Series 2002B Bonds,” or “Series 2002C Bonds” shall mean one of such series of Bonds as so designated.

“Book Entry Form” means the form of the Bonds as fully registered and available in physical form only to the Depository.

“Capital Appreciation Bonds” means Bonds payable in one payment on only one fixed date.

“Chief Financial Officer” means the Chief Financial Officer of the County.

“Code” means the Internal Revenue Code of 1986, as amended.

“Commitment” means (i) a commitment to issue a financial guaranty or municipal bond insurance policy issued by an Insurer and relating to a series of Bonds and (ii) any separate insurance agreement between the County and an Insurer executed in connection with the issuance by such Insurer of its insurance policy with respect to the Bonds.

“Compound Accreted Value” means, for any Capital Appreciation Bond, on any date of determination, an amount equal to the Original Principal Amount of such Bond (or integral multiple thereof) plus an investment return accrued to the date of such determination at a semiannual compounding rate which is necessary to produce the approximate yield to maturity borne by such Bond.

“Convertible CABs” means Bonds issued initially as Capital Appreciation Bonds containing provisions for the conversion of the Compound Accreted Value of such Bonds into Current Interest Bonds at such time following the issuance thereof as shall be approved by the Chief Financial Officer.

“Corporate Authorities” means the Board of Commissioners of the County.

“County” means The County of Cook, Illinois, and its successors and assigns.

“County Clerk” means the County Clerk of the County.

“County Collector” means the County Treasurer, acting ex-officio as the Collector for the County.

“Credit Facility” means any letter of credit, bank bond purchase agreement, revolving credit agreement, surety bond, bond insurance policy or other agreement or instrument under which any person (other than the County) undertakes to make or provide funds to make payment of the principal or premium, if any (if at the election of the County the Credit Facility secures premium payable upon an optional redemption of Bonds supported by such Credit Facility), and interest on Bonds, delivered to and received by the Trustee.

“Current Interest Bonds” means Bonds bearing interest at fixed rates and paying interest semiannually (which may have a first odd period for interest not greater than one year).

“Defeasance Obligation” means any Federal Obligation or any Agency Obligation, in each case not subject to redemption at the option of the issuer.

“Depository” means The Depository Trust Company, a New York limited trust company, its successor or a successor depository qualified to clear securities under applicable state and federal law.

“Designated Officer” means the President, Chief Financial Officer or any other officer or employee of the County so designated by a written instrument signed by the President or the Chief Financial Officer and filed with the Trustee.

“Federal Obligation” means any direct obligation of, or any obligation the timely payment of principal of and interest on which is fully and unconditionally guaranteed by, the United States of America.

“Indenture” means a trust indenture by and between the County and the Trustee as authorized herein for the issuance of Variable Rate Bonds.

“Insurer” means any recognized issuer of a municipal bond insurance policy insuring one or more series of Bonds as selected by the Chief Financial Officer and so designated in a Bond Order.

“Maturity Amount” means, for Capital Appreciation Bonds, Compound Accreted Value at maturity.

“Ordinance” means this ordinance as originally introduced and adopted and as the same may from time to time be amended or supplemented in accordance with the terms hereof.

“Outstanding Bonds” means Bonds which are outstanding and unpaid; provided, however, such term shall not include Bonds (a) which have matured and for which monies are on deposit with proper paying agents or are otherwise properly available sufficient to pay all principal thereof and interest thereon; or (b) the provision for payment of which has been made by the County pursuant to Section 20 of this Ordinance.

“Pledged Taxes” means the unlimited ad valorem taxes levied herein and pledged hereunder by the County as security for the Bonds, any additional taxes as may be hereafter levied for any Variable Rate Bonds pursuant to the covenant contained in Section 9 of this Ordinance and any accrued interest received upon the sale of the Bonds and deposited into the Bond Fund.

“Project Fund” means each fund included in the Project Funds established and further described in Section 12 of this Ordinance.

“Projects” means, collectively, the Public Safety Fund Project, the Health Fund Project, the Corporate Fund Project, the Capital Equipment Project, the Insurance Reserve Project and the Cash Management Project described in the preambles hereto.

“Purchase Price” means the price for the Bonds as provided in a Bond Order.

“Qualified Investments” means:

(a) Federal Obligations;

(b) Deposits in interest-bearing accounts or certificates of deposit or similar arrangements issued by any bank, trust company, national banking association, savings bank or savings and loan association, including the Trustee, which deposits are (i) insured or secured as required by Section 12(E) or (ii) insured by an insurance policy or surety bond issued by an insurance company rated in the highest rating category by Fitch, Moody’s and S&P, or by any two of said rating agencies;

(c) Bonds or notes issued by any State of the United States of America, or any political subdivision thereof, that are rated in either of the two highest rating categories by Fitch, Moody’s and S&P, or by any two of said rating agencies;

(d) Bonds, debentures, notes or other evidences of indebtedness issued or guaranteed by any of the following: Federal Home Loan Bank System senior debt obligations; Federal Home Loan Mortgage Corporation participation certificates and senior debt obligations; Federal National Mortgage Association mortgage backed securities and senior debt obligations; and the interest component of Resolution Funding Corporation obligations in book-entry form, which have been stripped by request of the Federal Reserve Bank of New York;

(e) Agency Obligations;

(f) Repurchase agreements entered into with financial institutions that are either (i) banks, trust companies or national banking associations that are rated “A” or higher by Moody’s, Fitch and S&P, or by any two of said rating agencies, or (ii) a government bond dealer reporting to, trading with, and recognized as a primary dealer by the Federal Reserve Bank of New York, provided that each such repurchase agreement is secured as provided in Section 12(F);

(g) Money market funds registered under the Federal Investment Company Act of 1940, whose shares are registered under the Federal Securities Act of 1933 and having a rating by S&P of “AAAm-G,” “AAAm” or “Aam”;

(h) Commercial paper rated, at the time of purchase, “Prime-1” by Moody’s, “F-1” or better by Fitch, and “A-1” or better by S&P, or by any two of said rating agencies;

(i) The Public Treasurers’ Investment Pool of the State of Illinois;

(j) Federal Funds or bankers’ acceptances, with a maximum term of one year, of any bank that has an unsecured, uninsured and unguaranteed obligation rating of “Prime-1” or “A-3” or better from Moody’s, “F-2” or “A” or better by Fitch, and “A-1” or “A” or better by S&P, or by any two of said rating agencies; and

(k) Investment agreements, including without limitation repurchase agreements not described in clause (f) above, with a bank, investment bank, financial institution or insurance company provided that such bank, investment bank, financial institution or insurance company maintains an office in the United States and such bank, investment bank, financial institution or insurance company or whose guarantor is rated in one of the three highest rating categories by Moody’s, Fitch, and S&P, or by any two of said rating agencies, or if such institution is not so rated, that the agreement is collateralized by securities described in clauses (a), (d) or (e) above, having a market value at all times (exclusive of accrued interest, other than accrued interest paid in connection with the purchase securities) at least equal to the principal amount invested pursuant to the agreement.

“Regular Record Date” means, for any Current Interest Bonds or Capital Appreciation Bonds, the 1st day of the month in which any regularly scheduled interest payment date occurs on the 15th day of such month and, in the event of a payment occasioned by a redemption of Bonds on other than a regularly scheduled interest payment date on the 15th day of a month, means the 15th day next preceding such payment date and, for Variable Rate Bonds, has the meaning set forth in a relevant Indenture.

“Representations Letter” means such letter to or agreement, by and among the County, the Trustee and the Depository as shall be necessary to effectuate a book-entry system for the Bonds, and includes the Blanket Letter of Representations previously executed by the County and the Depository.

“Stated Maturity” means with respect to any Bond or any interest thereon the date specified in such Bond as the fixed date on which the principal of such Bond or such interest is due and payable, whether by maturity or otherwise.

“Tax Exempt” means, with respect to the Bonds, the status of interest paid and received thereon as not includible in the gross income of the owners thereof under the Code for federal income tax purposes, except to the extent that such interest is taken into account in computing an adjustment used in determining the alternative minimum tax for certain corporations and in computing the “branch profits tax” imposed on certain foreign corporations.

“Trustee” means Amalgamated Bank of Chicago, Chicago, Illinois, as bond registrar, paying agent and trustee, and successors and assigns.

“Underwriters” means (i) for the Series 2002A Bonds, collectively, Jackson Securities, Inc., George K. Baum & Co., Podesta & Co., and Lehman Brothers, (ii) for the Series 2002B Bonds, collectively, William Blair & Company and SBK Brooks Investment Corp., and (iii) for the Series 2002C Bonds, collectively, LaSalle Capital Markets, Inc., A Division of ABN AMRO Financial Services, Inc., Salomon Smith Barney, Loop Capital, Apex Securities, Banc One Capital Markets, Inc., and Siebert, Brandford & Shank.

“Variable Rate Bonds” means Bonds which are issued at rates subject to change from time to time, payable from time to time, and subject to various options for payment by the owners thereof, as more fully provided for herein.

“Yield to Maturity” means, for any Capital Appreciation Bond, the approximate yield to maturity borne by such Bond.

SECTION 2. FINDINGS.

The Corporate Authorities hereby find that it is necessary and in the best interests of the County that the County provide for the Projects; that each of the Projects is expressly authorized under the Act, and that the Bonds be issued to enable the County to pay the costs of Projects. The Corporate Authorities hereby find that all of the recitals contained in the preambles to this Ordinance are full, true and correct and do hereby incorporate them into this Ordinance by this reference. It is hereby found and determined that the Corporate Authorities have been authorized by law to borrow not less than the aggregate sum of $600,000,000 upon the credit of the County and as evidence of such indebtedness to issue at this time Bonds in the aggregate principal amount of $600,000,000, more or less, as herein provided, in order to pay the costs of the Projects. The Bonds shall be issued pursuant to the Act.

SECTION 3. BOND DETAILS.

There shall be borrowed on the credit of and for and on behalf of the County the sum of not to exceed $600,000,000 plus an amount equal to the amount of any original issue discount used in the marketing of the Bonds for the purposes aforesaid; the Bonds shall be issued from time to time in said aggregate amount, or such lesser amount, in one or more series, all as may be determined by the Chief Financial Officer, and shall be designated substantially as “General Obligation [Variable Rate Demand] Bonds, Series 2002__,” with such additions or modifications as shall be determined to be necessary by the Chief Financial Officer at the time of the sale of the Bonds to reflect the purpose of the issue, the order of sale of the Bonds, whether the Bonds are Current Interest Bonds, Variable Rate Bonds, Capital Appreciation Bonds or Convertible CABs, and any other authorized features of the Bonds determined by the Chief Financial Officer as desirable to be reflected in the title of the Bonds being issued and sold. Any Bonds issued as Current Interest Bonds shall be dated as of March 1, 2002, or such later date at or prior to the date of issuance thereof as may be provided in the relevant Bond Order. Any Bonds issued as Capital Appreciation Bonds shall be dated the date of issuance thereof. Any Bonds issued as Variable Rate Bonds shall be dated such date not earlier than March 1, 2002, and not later than the date of issuance thereof as shall be provided in the Indenture. All Bonds shall also bear the date of authentication, shall be in fully registered form, shall be in Authorized Denominations as provided in the relevant Bond Order (but no single Bond shall represent installments of principal or Compound Accreted Value maturing on more than one date), shall be numbered 1 and upward within each series, shall bear interest at the rates percent per annum and shall become due and payable (subject as hereinafter provided with respect to prior redemption) on November 15 (or such other date as may be provided in the relevant Bond Order) of the years as provided in the relevant Bond Order, subject to the limitations set forth below.

All or any portion of the Bonds may be issued as Current Interest Bonds.

All or any portion of the Bonds may be issued as Capital Appreciation Bonds. Each Original Principal Amount of Capital Appreciation Bonds shall represent a Maturity Amount of $5,000 or any integral multiple thereof.

All or any portion of the Bonds may be initially issued as Convertible CABs. While in the form of Capital Appreciation Bonds, Bonds issued as Convertible CABs shall be subject to all of the provisions and limitations of this Ordinance relating to Capital Appreciation Bonds, and while in the form of Current Interest Bonds, Bonds issued as Convertible CABs shall be subject to all of the provisions and limitations of this Ordinance relating to Current Interest Bonds. In particular, when Convertible CABs are in the form of Capital Appreciation Bonds prior to their conversion to Current Interest Bonds, the transfer, exchange and replacement provisions of this Ordinance with respect to Capital Appreciation Bonds shall apply to such Convertible CABs; provided that the Convertible CABs delivered in the form of Capital Appreciation Bonds in connection with any such transfer, exchange or replacement shall have identical provisions for conversion to Current Interest Bonds as set forth in the Convertible CABs being transferred, exchange or replaced. In connection with the issuance and sale of any Convertible CABs, the terms and provisions relating to the conversion of the Compound Accreted Value of such Convertible CABs into Current Interest Bonds shall be as approved by the Chief Financial Officer at the time of sale of such Convertible CABs.

All or any portion of the Bonds may be issued as Variable Rate Bonds. Any Variable Rate Bonds shall be subject to the provisions of the Indenture for same, to be by and between the County and the Trustee. The President or the Chief Financial Officer is hereby authorized to enter into any Indenture on behalf of the County. Any Indenture shall be in substantially the form of trust indentures previously entered into by the County in connection with the sale of variable rate general obligation bonds or notes, but with such revisions in text as the President or the Chief Financial Officer shall determine are necessary or desirable, the execution thereof by the President or the Chief Financial Officer to evidence the approval by the Corporate Authorities of all such revisions.

All or any portion of the Bonds may be issued as Tax Exempt or not Tax Exempt as the Designated Officers shall determine upon consultation with counsel and as shall be provided in a relevant Bond Order.

All Bonds shall become due and payable as provided in the relevant Bond Order, provided, however, that no Bond shall have a Stated Maturity which is later than November 15, 2032.

The Current Interest Bonds and the Variable Rate Bonds shall bear interest at a rate or rates percent per annum and any Capital Appreciation Bonds shall have Yields to Maturity not to exceed ten percent (10.0%) per annum and no Capital Appreciation Bond shall have a Yield to Maturity in excess of ten percent (10.0%) per annum. The Current Interest Bonds and the Variable Rate Bonds shall bear interest at the rate or rates percent per annum and the Capital Appreciation Bonds shall have Yields to Maturity as provided in the relevant Bond Order or Indenture.

Each Current Interest Bond shall bear interest from the later of its dated date or the most recent interest payment date to which interest has been paid or duly provided for, until the principal amount of such Bond is paid, such interest (computed upon the basis of a 360-day year of twelve 30-day months) being payable, subject to the provisions of any Bond Order, on each May 15 and November 15, commencing on such May 15 or November 15 as determined by the Chief Financial Officer in the Bond Order therefor.

Each Capital Appreciation Bond shall bear interest from its dated date at the rate percent per annum compounded semiannually, subject to the provisions of any Bond Order, on each May 15 and November 15, commencing on such May 15 or November 15 as determined by the Chief Financial Officer in the Bond Order therefor, which will produce the Yield to Maturity until the Stated Maturity thereof or conversion date to Current Interest Bonds. Interest on the Capital Appreciation Bonds shall be payable only at Stated Maturity.

Each Variable Rate Bond shall bear interest (computed from time to time on such basis and payable in such manner as shall be set forth in the Indenture therefor) payable on such dates as shall be set forth in the Indenture therefor. Any Variable Rate Bonds may be made subject to optional or mandatory tender for purchase by the owners thereof at such times and at such prices (not to exceed 103 percent of the principal amount thereof) as shall be set forth in the Indenture therefor. In connection with the remarketing of any Variable Rate Bonds so tendered for purchase under the terms and conditions so specified by the Chief Financial Officer, the President and the Chief Financial Officer are each hereby authorized to execute on behalf of the County a remarketing agreement in customary form at customary fees used for variable rate financings of the County with appropriate revisions to reflect the terms and provisions of the Bonds sold as Variable Rate Bonds and such other revisions in text as the Chief Financial Officer shall determine are necessary or desirable in connection with the sale of the Bonds as Variable Rate Bonds.

So long as the Bonds are held in Book Entry Form, interest on each Bond shall be paid to the Depository by check or draft or electronic funds transfer, in lawful money of the United States of America, as may be agreed in the Representations Letter; in the event the Bonds should ever become available in physical form to registered owners other than the Depository, interest on each Bond shall be paid by check or draft of the Trustee, payable upon presentation thereof in lawful money of the United States of America, or by electronic funds transfer of lawful money of the United States of America, as may be provided, to the person in whose name such Bond is registered at the close of business on the applicable Regular Record Date, and mailed to the address or transferred to such account of such registered owner as it appears on the Bond Register or at such other address or account as may be furnished in writing to the Trustee.

Principal of and premium (if any) on each Current Interest Bond and Variable Rate Bond and the Compound Accreted Value of each Capital Appreciation Bond shall be paid upon surrender in lawful money of the United States of America, at the principal corporate trust office of the Trustee or its proper agent.

The Bonds shall have impressed or imprinted thereon the corporate seal or facsimile thereof of the County and shall be signed by the manual or duly authorized facsimile signatures of the President and County Clerk, as they shall determine, and in case any officer whose signature shall appear on any Bond shall cease to be such officer before the delivery of such Bond, such signature shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery.

All Bonds shall have thereon a certificate of authentication substantially in the form hereinafter set forth duly executed by the Trustee as authenticating agent of the County and showing the date of authentication. No Bond shall be valid or obligatory for any purpose or be entitled to any security or benefit under this Ordinance unless and until such certificate of authentication shall have been duly executed by the Trustee by manual signature, and such certificate of authentication upon any such Bond shall be conclusive evidence that such Bond has been authenticated and delivered under this Ordinance. The certificate of authentication on any Bond shall be deemed to have been executed by the Trustee if signed by an authorized officer of the Trustee, but it shall not be necessary that the same officer sign the certificate of authentication on all of the Bonds issued hereunder.

SECTION 4. BOOK-ENTRY PROVISIONS.

The Bonds shall be initially issued in the form of a separate single fully registered Bond for each of the maturities of the Bonds. Upon initial issuance, the ownership of each such Bond shall be registered in the Bond Register in such name as may be provided by the Depository (the “Book Entry Owner”) and, accordingly, in Book Entry Form as provided and defined herein. Any Designated Officer is authorized to execute a Representations Letter or to utilize the provisions of an existing Representations Letter. Without limiting the generality of the authority given with respect to entering into the Representations Letter for the Bonds, it may contain provisions relating to (a) payment procedures, (b) transfers of the Bonds or of beneficial interests therein, (c) redemption notices and procedures unique to the Depository, (d) additional notices or communications, and (e) amendment from time to time to conform with changing customs and practices with respect to securities industry transfer and payment practices. With respect to Bonds registered in the Bond Register in the name of the Book Entry Owner, neither the County nor the Trustee shall have any responsibility or obligation to any broker-dealer, bank, or other financial institution for which the Depository holds Bonds from time to time as securities depository (each such broker-dealer, bank, or other financial institution being referred to herein as a “Depository Participant”) or to any person on behalf of whom such a Depository Participant holds an interest in the Bonds. Without limiting the meaning of the immediately preceding sentence, neither the County nor the Trustee shall have any responsibility or obligation with respect to (a) the accuracy of the records of the Depository, the Book Entry Owner, or any Depository Participant with respect to any ownership interest in the Bonds; (b) the delivery to any Depository Participant or any other person, other than a registered owner of a Bond as shown in the Bond Register or as expressly provided in the Representations Letter, of any notice with respect to the Bonds, including any notice of redemption; or (c) the payment to any Depository Participant or any other person, other than a registered owner of a Bond as shown in the Bond Register, of any amount with respect to principal of or interest on the Bonds. No person other than a registered owner of a Bond as shown in the Bond Register shall receive a Bond certificate with respect to any Bond. In the event that (a) the County determines that the Depository is incapable of discharging its responsibilities described herein or in the Representations Letter, (b) the agreement among the County and the Depository evidenced by the Representations Letter shall be terminated for any reason, or (c) the County determines that it is in the best interests of the County or of the beneficial owners of the Bonds that they be able to obtain certificated Bonds; the County shall notify the Depository of the availability of Bond certificates, and the Bonds shall no longer be restricted to being registered in the Bond Register to the Book Entry Owner. The County may determine at such time that the Bonds shall be registered in the name of and deposited with a successor depository operating a book entry only system, as may be acceptable to the County, or such depository’s agent or designee, but if the County does not select such successor depository, then the Bonds shall be registered in whatever name or names registered owners of Bonds transferring or exchanging Bonds shall designate, in accordance with the provisions hereof.

SECTION 5. REDEMPTION.

If so provided in the relevant Bond Order or Indenture, any Bonds may be redeemable prior to maturity at the option of the County, in whole or in part on any date, at such times and at such redemption prices (to be expressed as a percentage of the principal amount of Current Interest Bonds or Variable Rate Bonds to be redeemed and as a percentage of the Compound Accreted Value of Capital Appreciation Bonds to be redeemed) not to exceed one hundred three percent (103.00%), plus, in the case of Current Interest Bonds or Variable Rate Bonds, accrued interest to the date of redemption, as determined by the Chief Financial Officer at the time of the sale thereof. If less than all of the outstanding Bonds of a series are to be optionally redeemed, the Bonds to be called shall be called from such series, in such principal amounts and from such maturities as may be determined by the County and within any maturity by lot within a maturity in the manner hereinafter provided. Any Current Interest Bonds or Variable Rate Bonds may be made subject to mandatory redemption, at par and accrued interest to the date fixed for redemption, as determined by the Chief Financial Officer at the time of the sale thereof and as set forth in the relevant Bond Order or Indenture. The terms and provisions for any redemption of Variable Rate Bonds shall be as determined by the Chief Financial Officer at the time of sale of the Bonds and as set forth in a relevant Indenture, provided that such terms shall be within the limitations set forth in this Section.

In connection with any mandatory redemption of Bonds as authorized above, the principal amounts of such Bonds to be mandatorily redeemed in each year may be reduced through the earlier optional redemption thereof, with any partial optional redemptions of such Bonds credited against future mandatory redemption requirements in such order of the mandatory redemption dates as the Chief Financial Officer may determine. In the absence of such determination, partial optional redemptions of such Bonds shall be credited against future mandatory redemption requirements in inverse chronological order of such payments beginning with the amount scheduled to become due at Stated Maturity, then the amount subject to mandatory redemption in the year preceding Stated Maturity, and so on. In addition, on or prior to the 60th day preceding any mandatory redemption date, the Trustee may, and if directed by the Chief Financial Officer shall, purchase Bonds of such maturities in an amount not exceeding the amount of such Bonds required to be retired on such mandatory redemption date and at a price not exceeding par plus accrued interest. Any such Bonds so purchased shall be cancelled and the principal amount thereof shall be credited against the payment required on such next mandatory redemption date.

The County shall, at least 45 days prior to the redemption date (unless a shorter time shall be satisfactory to the Trustee), notify the Trustee of such redemption date, the years of maturity and principal amounts of Bonds to be redeemed and, if applicable, the mandatory redemption payment so affected. Current Interest Bonds shall be redeemed only in the principal amount of $5,000 each and integral multiples thereof, and Capital Appreciation Bonds shall be redeemed only in amounts representing $5,000 Maturity Amount and integral multiples thereof. In the event of the redemption of less than all the Bonds of a series of like maturity, the aggregate principal amount or Maturity Amount (as appropriate) thereof to be redeemed shall be $5,000 or an integral multiple thereof, and the Trustee shall assign to each such Bond of such maturity a distinctive number for each $5,000 principal amount or Maturity Amount (as appropriate) of such Bond and shall select by lot from the numbers so assigned as many numbers as, at $5,000 for each number, shall equal the principal amount or Maturity Amount (as appropriate) of such Bonds to be redeemed. The Bonds to be redeemed shall be those to which were assigned numbers so selected; provided that only so much of the principal amount or Maturity Amount (as appropriate) of each Bond shall be redeemed as shall equal $5,000 for each number assigned to it and so selected.

The Trustee shall promptly notify the County in writing of the Bonds or portions of Bonds selected for redemption and, in the case of any Bond selected for partial redemption, the principal amount thereof to be redeemed.

Unless waived by the owner of Bonds to be redeemed or as otherwise provided in an Indenture for Variable Rate Bonds, notice of any such redemption shall be given by the Trustee on behalf of the County by mailing the redemption notice by first class mail not less than 30 days and not more than 60 days prior to the date fixed for redemption to each registered owner of the Bond or Bonds to be redeemed at the address shown on the Bond Register or at such other address as is furnished in writing by such registered owners to the Trustee.

All notices of redemption shall include at least the information as follows:

(1) the redemption date;

(2) the redemption price;

(3) if less than all of the Bonds of a particular series are to be redeemed, the identification (and, in the case of partial redemption, the respective principal amounts) of the Bonds to be redeemed;

(4) a statement that on the redemption date the redemption price will become due and payable upon each such Bond or portion thereof called for redemption and that interest thereon shall cease to accrue from and after said date; and

(5) the place where such Bonds are to be surrendered for payment of the redemption price, which place of payment shall be the principal corporate trust office of the Trustee.

Such additional notice as may be agreed upon with the Depository shall also be given so long as the Bonds are held by the Depository.

On or prior to any redemption date, the County shall deposit with the Trustee an amount of money sufficient to pay the redemption price of all the Bonds or portions of Bonds which are to be redeemed on that date.

Notice of redemption having been given as provided therefor, the Bonds or portions of Bonds so to be redeemed shall, on the redemption date, become due and payable at the redemption price therein specified, and from and after such date (unless the County shall default in the payment of the redemption price) such Bonds or portions of Bonds shall cease to bear interest. Neither the failure to mail such redemption notice nor any defect in any notice so mailed to any particular registered owner of a Bond shall affect the sufficiency of such notice with respect to other registered owners. Notice having been properly given, failure of a registered owner of a Bond to receive such notice shall not be deemed to invalidate, limit or delay the effect of the notice or the redemption action described in the notice. Such notice may be waived in writing by a registered owner of a Bond, either before or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice shall be filed with the Trustee, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver. Upon surrender of such Bonds for redemption in accordance with said notice, such Bonds shall be paid by the Trustee at the redemption price. Interest due on or prior to the redemption date shall be payable as herein provided for payment of interest. Upon surrender for any partial redemption of any Bond, there shall be prepared for the registered owner a new Bond or Bonds of the same Stated Maturity in the amount of the unpaid principal or Maturity Amount.

With respect to any redemption of Bonds, unless moneys sufficient to pay the redemption price of the Bonds to be redeemed shall have been received by the Trustee prior to the giving of the notice of redemption, such notice may, at the option of the County, state that such redemption shall be conditional upon the receipt of such moneys by the Trustee on or prior to the date fixed for redemption. If such moneys are not received, such notice shall be of no force and effect, the Trustee shall not redeem such Bonds, and the Trustee shall give notice, in the same manner in which the notice of redemption shall have been given, that such moneys were not so received and that such Bonds will not be redeemed.

If any Bond or portion of Bond called for redemption shall not be so paid upon surrender thereof for redemption, in the case of Current Interest Bonds, the principal shall, until paid, bear interest from the redemption date at the rate borne by the Bond or portion of Bond so called for redemption; in the case of Variable Rate Bonds, the principal shall, until paid, bear interest as provided in a relevant Indenture; and, in the case of Capital Appreciation Bonds, the Compound Accreted Value at such redemption date shall continue to accrue interest from such redemption date at the Yield to Maturity borne by such Capital Appreciation Bond, or portion thereof, so called for redemption. All Bonds which have been redeemed shall be cancelled and destroyed by the Trustee and shall not be reissued.

Upon the payment of the redemption price of Bonds being redeemed, each check or other transfer of funds issued for such purpose shall bear the CUSIP number identifying, by issue and maturity, the Bonds being redeemed with the proceeds of such check or other transfer.

SECTION 6. REGISTRATION OF BONDS; PERSONS TREATED AS OWNERS; BONDS LOST, DESTROYED, ETC.

The County shall cause the Bond Register to be kept at the principal corporate trust office of the Trustee, which is hereby constituted and appointed the Registrar of the County. The County is authorized to prepare, and the Trustee shall keep custody of, multiple Bond blanks executed by the County for use in the transfer and exchange of Bonds.

Subject to the provisions hereof relating to the Bonds in Book Entry Form, upon surrender for transfer of any Bond at the principal corporate trust office of the Trustee, duly endorsed by, or accompanied by a written instrument or instruments of transfer in form satisfactory to the Trustee and duly executed by, the registered owner or his or her attorney duly authorized in writing, the County shall execute and the Trustee shall authenticate, date and deliver in the name of the transferee or transferees (a) in the case of any Capital Appreciation Bond, a new fully registered Capital Appreciation Bond or Bonds of the same series and of the same Stated Maturity of Authorized Denominations, for a like aggregate Original Principal Amount or (b) in the case of any Current Interest Bond or Variable Rate Bond, a new fully registered Bond or Bonds of the same tenor, of the same interest rate and Stated Maturity, of Authorized Denominations, for a like aggregate principal amount. Subject to the provisions of this Ordinance relating to Book Entry Form any Capital Appreciation Bond or Bonds may be exchanged at said office of the Trustee or its proper agent for a like aggregate Original Principal Amount of Capital Appreciation Bond or Bonds of the same maturity of other Authorized Denominations; and any fully registered Current Interest Bond or Bonds or Variable Rate Bond or Bonds may be exchanged at said office of the Trustee or its proper agent for a like aggregate principal amount of such Bonds of the same tenor, of the same interest rate and Stated Maturity, of other Authorized Denominations.

The execution by the County of any fully registered Bond shall constitute full and due authorization of such Bond, and the Trustee or its proper agent shall thereby be authorized to authenticate, date and deliver such Bond in accordance with the terms of this Ordinance and of any Indenture.

The person in whose name any Bond shall be registered shall be deemed and regarded as the absolute owner thereof for all purposes, and payment of the principal of, premium (if any) or interest on or any Maturity Amount of any Bond shall be made only to or upon the order of the registered owner thereof or his or her legal representative. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid.

No service charge shall be made for any transfer or exchange of Bonds, but the County or the Trustee may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any transfer or exchange of Bonds exchanged in the case of the issuance of a Bond or Bonds for the outstanding portion of a Bond surrendered for redemption.

If any Bond, whether in temporary or definitive form, is lost (whether by reason of theft or otherwise), destroyed (whether by mutilation, damage, in whole or in part, or otherwise) or improperly cancelled, the Trustee or its proper agent may authenticate a new Bond of like date, maturity date, interest rate (or, in the case of Capital Appreciation Bonds, Yield to Maturity), denomination and Original Principal Amount (in the case of Capital Appreciation Bonds) or principal amount (in the case of other Bonds) and bearing a number not contemporaneously outstanding; provided that (a) in the case of any mutilated Bond, such mutilated Bond shall first be surrendered to the Trustee, and (b) in the case of any lost Bond or Bond destroyed in whole, there shall be first furnished to the Trustee evidence of such loss or destruction, together with indemnification of the County and the Trustee, satisfactory to the Trustee. In the event any lost, destroyed or improperly cancelled Bond shall have matured or is about to mature, or has been called for redemption, instead of issuing a duplicate Bond, the Trustee shall pay the same without surrender thereof if there shall be first furnished to the Trustee evidence of such loss, destruction or cancellation, together with indemnity, satisfactory to it. Upon the issuance of any substitute Bond, the Trustee may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto.

SECTION 7. SECURITY.

The full faith and credit of the County are hereby irrevocably pledged to the punctual payment of the principal of, interest on and Maturity Amount of the Bonds. The Bonds shall be direct and general obligations of the County and the County shall be obligated and hereby covenants and agrees to levy ad valorem taxes upon all the taxable property in the County for the payment of the Bonds and the interest thereon, without limitation as to rate or amount. The County hereby pledges, as equal and ratable security for the Bonds, all present and future proceeds of the Pledged Taxes on deposit in the Bond Fund for the sole benefit of the registered owners of the Bonds, subject to the reserved right of the Corporate Authorities to transfer certain interest income or investment profit earned in the Bond Fund to other funds of the County.

SECTION 8. FORMS OF BONDS.

The Current Interest Bonds and the Capital Appreciation Bonds shall be in substantially the forms hereinafter set forth; provided, however, that if the text of the Bonds is to be printed in its entirety on the front side of the Bonds, then the second paragraph on the front side and the legend “See Reverse Side for Additional Provisions” shall be omitted and the text of paragraphs set forth for the reverse side shall be inserted immediately after the first paragraph. The Convertible CABs shall be prepared incorporating the provisions of the forms of Current Interest Bonds and Capital Appreciation Bonds set forth below as necessary to reflect the terms and provisions of the sale of the Convertible CABs pursuant to Section 11 hereof. Variable Rate Bonds shall be prepared in substantially the form provided in the relevant Indenture.

(Form of Current Interest Bond - Front Side)

REGISTERED REGISTERED

NO. _______ $_________

UNITED STATES OF AMERICA

STATE OF ILLINOIS

THE COUNTY OF COOK

GENERAL OBLIGATION BOND, SERIES 2002__

See Reverse Side

for Additional

Provisions

Interest Rate:

Maturity Date:

Dated Date: ________ 2002

CUSIP:

Registered Owner: CEDE & Co.

Principal Amount:

[1] KNOW ALL PERSONS BY THESE PRESENTS, that the County of Cook, Illinois (the “County”), a home rule unit duly organized and incorporated under the laws of the State of Illinois, hereby acknowledges itself to owe and for value received promises to pay from the sources and as hereinafter provided to the Registered Owner identified above, or registered assigns as hereinafter provided, the Principal Amount identified above and to pay interest (computed on the basis of a 360-day year of twelve 30-day months) on such Principal Amount at the Interest Rate identified above, from the Dated Date or from the most recent interest payment date to which interest has been paid, on each May 15 and November 15, commencing _______, 20__, until said principal sum is paid, except as the provisions hereinafter set forth with respect to redemption prior to maturity are and become applicable hereto. Both principal hereof and premium, if any, hereon are payable in lawful money of the United States of America at the principal corporate trust office of Amalgamated Bank of Chicago, Chicago, Illinois, as bond registrar, paying agent and trustee (the “Trustee”), or at any successor trustee and locality as in the hereinafter defined Bond Ordinance provided. Payment of interest shall be made to the Registered Owner hereof on the registration books of the County maintained by the Trustee at the close of business on the Regular Record Date and shall be paid by check or draft of the Trustee mailed to the address of such Registered Owner as it appears on such registration books or as otherwise agreed by the County and CEDE & Co., as nominee, or successor for so long as this Bond is held by the Depository or nominee in book-entry only form as provided for same.

[2] Reference is hereby made to the further provisions of this Bond set forth on the reverse hereof and such further provisions shall for all purposes have the same effect as if set forth at this place.

[3] This bond and each bond of the series of which it forms a part (together, the “Bonds”), are issued pursuant to Section 6 of Article VII of the 1970 Constitution of the State of Illinois, as supplemented and amended by the Local Government Debt Reform Act of the State of Illinois as amended (the “Act”). The Bonds are being issued for the purpose of paying the costs of the Projects (as defined in the hereinafter defined Bond Ordinance), all as more fully described in proceedings adopted by the Board of Commissioners of the County (the “Corporate Authorities”) and in an ordinance authorizing the issuance of the Bonds adopted by the Corporate Authorities on the 21st day of February, 2002 (the “Bond Ordinance”), to all the provisions of which the holder by the acceptance of this Bond assents. For the prompt payment of this Bond, both principal and interest, as aforesaid, at maturity, the Pledged Taxes are hereby irrevocably pledged.

[4] It is hereby certified and recited that all conditions, acts and things required by the Constitution and Laws of the State of Illinois to exist or to be done precedent to and in the issuance of this Bond, including the Act, have existed and have been properly done, happened and been performed in regular and due form and time as required by law; that the indebtedness of the County, represented by the Bonds, and including all other indebtedness of the County, howsoever evidenced or incurred, does not exceed any constitutional or statutory or other lawful limitation; and that provision has been made for the collection of a direct annual tax, in addition to all other taxes, on all of the taxable property in the County sufficient to pay the interest hereon as the same falls due and also to pay and discharge the principal hereof at maturity.

[5] This Bond shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been signed by the manual signature of the Trustee.

[6] IN WITNESS WHEREOF, The County of Cook, Illinois, by its Board of Commissioners, has caused this Bond to be signed by the manual or duly authorized facsimile signatures of the President and County Clerk, and its corporate seal or a facsimile thereof to be impressed or reproduced hereon, all as appearing hereon and as of the Dated Date identified above.

[SEAL]

_________________________

President

_________________________

County Clerk

Date of Authentication: ______________, _____

CERTIFICATION OF AUTHENTICATION	Bond Registrar, Paying Agent and Trustee: Amalgamated Bank of Chicago Chicago, Illinois
This Bond is one of the Bonds described in the within mentioned Bond Ordinance and is one of the General Obligation Bonds, Series 2002__, of The County of Cook, Illinois.
AMALGAMATED BANK OF CHICAGO, as Trustee
By_______________________________
Authorized Officer

[Form of Current Interest Bond - Reverse Side]

The County of Cook, Illinois

General Obligation Bond, Series 2002___

[7] This Bond is transferable by the registered holder hereof in person or by his or her attorney duly authorized in writing at the principal corporate trust office of the Trustee in Chicago, Illinois, or at any successor Trustee and successor location, but only in the manner, subject to the limitations and upon payment of the charges provided in the Bond Ordinance, and upon surrender and cancellation of this Bond. Upon such transfer a new Bond or Bonds of the same series and Authorized Denominations of the same maturity and for the same aggregate principal amount will be issued to the transferee in exchange therefor. The Trustee shall not be required to transfer or exchange this Bond during the period beginning at the close of business on the fifteenth day next preceding any interest payment date for this Bond, after notice calling this Bond for redemption has been mailed, or during a period of 15 days next preceding mailing of a notice of redemption of this Bond.

[8] The Bonds are issued in fully registered form in the Authorized Denomination of $5,000 each and integral multiples thereof. This Bond may be exchanged at the principal corporate trust office of the Trustee for a like aggregate principal amount of Bonds of the same maturity of other Authorized Denominations, upon the terms set forth in the Bond Ordinance.

[9] The County and the Trustee may deem and treat the registered holder hereof as the absolute owner hereof for the purpose of receiving payment of or on account of principal hereof, premium, if any, and interest due hereon and for all other purposes, and neither the County nor the Trustee shall be affected by any notice to the contrary.

[10] The Bonds coming due on and after November 15, 20__, are subject to redemption prior to maturity at the option of the County, from any available moneys, on November 15, 20__, and any date thereafter, in whole or in part, and if in part, in such principal amounts and from such maturities as determined by the County and within any maturity by lot, the Bonds to be redeemed at the redemption prices (being expressed as a percentage of the principal amount of the Bonds to be redeemed) set forth below:

DATES OF REDEMPTION

REDEMPTION PRICE

[11] [Provisions relating to mandatory redemption will be inserted here.]

[12] Written notice of the redemption of any or all of said Bonds shall be given by the County to the registered holder thereof by first class mail to the address shown on the registration books of the County maintained by the Trustee or at such other address as is furnished in writing by such registered owner to the Trustee. The date of the mailing and filing of such notice shall be not more than sixty (60) and not less than thirty (30) days prior to such redemption date, and when any or all of said Bonds or any portion thereof shall have been called for redemption and payment made or provided for, interest thereon shall cease from and after the date so specified. With respect to any redemption of Bonds, unless moneys sufficient to pay the redemption price of the Bonds to be redeemed shall have been received by the Trustee prior to the giving of the notice of redemption, such notice may, at the option of the County, state that such redemption shall be conditional upon the receipt of such moneys by the Trustee on or prior to the date fixed for redemption. If such moneys are not received, such notice shall be of no force and effect, the Trustee shall not redeem such Bonds, and the Trustee shall give notice, in the same manner in which the notice of redemption shall have been given, that such moneys were not so received and that such Bonds will not be redeemed.

[13] The rights and obligations of the County and of the registered owners of Bonds of the series of which this Bond is one may be modified or amended at any time as more fully set forth in the Bond Ordinance.

[ASSIGNMENT]

FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto _______________________

_____________________________________________________________________________________

(Name and Address of Assignee)

the within Bond and does hereby irrevocably constitute and appoint ____________________ or its successor as attorney to transfer the said Bond on the books kept for registration thereof with full power of substitution in the premises.

Dated: _______________________ ______________________________