Invest in Lawrence and earn tax-exempt interest! Bond proceeds will support the purchase of a fire truck for the Lawrence-Douglas County Fire Medical Department, which serves the City. See the summary below and read the posted Preliminary Official Statement for details.
About this bond issuance
Bond proceeds will finance the acquisition of a fire truck for the Lawrence-Douglas County Fire Medical Department, which serves the City of Lawrence.
ObligorThe obligor is the organization that holds ultimate responsibility for the bond issuance, and will ensure that investors get repaid.
City of Lawrence, Kansas
IssuerOften the obligor. However, sometimes issuers partner with an authorized conduit financing non-profit within their state or city to issue the bonds.
City of Lawrence, Kansas
AuthorityBefore an issuer can raise money for a project, they must first have the legal authority to do so. This authority is sometimes preceded by a general election, and awarded after the successful passing of a bond measure.
The Neighborly Bonds are being issued pursuant to K.S.A. 10-101 et seq. and K.S.A. 12-110c, all as amended and supplemented, and the Bond Resolution.
SecurityThe security section is a breakdown of the funds an issuer is planning to use to repay its investors. This repayment can come from a variety of sources, including local taxes.
The Neighborly Bonds will be general obligations of the City, payable as to both principal and interest from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. The full faith, credit and resources of the City are irrevocably pledged for the prompt payment of the principal and interest on the Neighborly Bonds as the same become due.
Paying Agent: Treasurer of the State of Kansas, Topeka, Kansas
Risk Factors and Investment Considerations
Bond Ratings: There is no assurance that a particular financial rating will remain in effect for any given period of time or that it will not be revised, either downward or upward, or withdrawn entirely, if in the judgment of the agency originally establishing such rating, circumstances so warrant. Any downward revision or withdrawal of any rating may have an adverse effect on the market price of the Neighborly Bonds.
Suitability of Investments: The tax exempt feature of the Neighborly Bonds is more valuable to high tax bracket investors than to investors who are in low tax brackets, and so the value of the interest compensation to any particular investor will vary with individual tax rates. Each prospective investor should carefully examine the Official Statement, including the Appendices, and its own financial condition to make a judgment as to its ability to bear the economic risk of such an investment, and whether or not the Neighborly Bonds are an appropriate investment.
Small Denominations: The Neighborly Bonds will be sold in $1,000 denominations. Bondholders purchasing the Neighborly Bonds can be adversely affected by limited future liquidity for the Neighborly Bonds, and may encounter additional and higher expenses, if the Neighborly Bonds are sold in the secondary market or not held to maturity. The City has no obligation to provide for a market for purchases or resale of the Neighborly Bonds.
Secondary Market: There is no assurance that a secondary market will develop for the purchase and sale of the Neighborly Bonds. It is the present practice of the underwriter, however, to make a secondary market as dealers in issues of municipal bonds which the underwriter distributes. The underwriter intends to continue this practice with respect to the Neighborly Bonds, but is not obligated to do so. Prices of bonds traded in the secondary market, though, are subject to adjustment upward and downward in response to changes in the credit markets. From time to time it may be necessary for the underwriter to suspend indefinitely secondary market trading in the Neighborly Bonds as a result of the financial condition or market position of the underwriter, prevailing market conditions, lack of adequate current financial information about the City, or a material adverse change in the financial condition of the City, whether or not the Neighborly Bonds are in default as to principal and interest payments, and other factors which in the opinion of the underwriter may give rise to uncertainty concerning prudent secondary market practices.
Minimum Order Size: $1,000
Maximum Order Size: No restrictions. Aggregated orders over $50,000 subject to pro-rata allocation.
Allocation: First-come-first-served, priority will be given to Lawrence residents during the allocation process, subject to City final approval if oversubscribed.
Neighborly Securities reserves the right to accelerate the order period based on demand.
Dated Date: 05/24/2017