"BOND RESOLUTION DATED JULY 25,2007


     At a regular meeting of the Board of Fire Commissioners of the Medway-Grapeville Fire District held at the district firehouse located on County Route 51 in the Town of New Baltimore on the 16th day of July 2007.

PRESENT:  Loris Alix, Chairperson
                    Donald Berkhofer
                    Frank Schnare
                    Richard Mahnken
                    Marilyn Woodhull, Commissioners
ABESENT: None

     WHEREAS, the Board of Commissioners of the Medway-Grapeville Fire District have determined to purchase a new American LaFrance fire truck with attendant accessories to replace the existing fire truck that has outlived it usefulness.

     NOW, on motion of Frank Schnare, Commissioner, seconded by Donald Berkhofer, Commissioner, all members present voting therefore, it is RESOLVED as follows:
     Section 1. The purchase of an American LaFrance fire truck and accessories for a total purchase price of $229,995.22. is hereby authorized.

     Section 2. The maximum estimated cost of said equipment is $227,995.22 with costs of publication, legal fees etc. estimated at $2,000. for a total acquisition cost of $229,995.22. The plan for financing the purchase is as follows: $229,995.22 shall be raised by the issuance of serial bonds or statutory installment bond of the Medway-Grapeville Fire District which is hereby authorized to be issued pursuant to the Local Finance Law.

     Section 3. It is hereby determined that the period of probable usefulness of the aforesaid specific object of purpose is twenty (20) years, as the lowest period assigned to the class of objects herein, pursuant to Section 11.00 (a) (27) of the Local Finance Law. It is hereby further determined that the maximum maturity of the serial bonds or statutory installment bond herein authorized will exceed five years.

     Section 4. The final maturity of the serial bonds herein authorized to be issued shall be on or before the tenth year, measured from the date of issuance of the first serial bond of bond anticipation note issued for the capital project referred to Section 1 of this resolution.

     Section 5. The Fire District hereby covenants and agrees with the holders from time to time of the bonds of the Fire District issued pursuant to this resolution, and any bond anticipation notes of the Fire District issued in anticipation of the sale of said bonds, that the Fire District will duly and faithfully observe and comply with all provisions of the United States Internal Revenue Code of 1986 (the "Code"), and any proposed and final regulations of the Internal Revenue Service issued pursuant thereto (the "Regulations") unless, in the opinion of Bond Counsel to the Fire District, such compliance is not required by the Code and Regulations to maintain the federal tax exemption of interest on said obligations from federal income taxation.

     Section 6. Each of the bonds authorized by this resolution and any bond anticipation notes issued in anticipation of said bonds, shall contain the recital of validity prescribed by Section 52.00 of the Local Finance Law and said bonds and any notes issued in anticipation of said general bonds, shall be general obligations of the Fire District, payable as to both principal and interest by a general tax upon all the real property within the Fire District without legal or constitutional limitation as to rate or amount. The faith and credit of the Fire District are hereby irrevocably pledged to the punctual payment of the principal of and interest on said bonds and provision shall be made annually in the budget of the Fire District by appropriation for (a) the amortization and redemption of the bonds and notes to mature in such year and (b) the payment of interest to be due and payable in such year.

     Section 7. Subject to the provisions of this Bond Resolution and of the Local Finance Law, pursuant to the provisions of Section 30.00 relative tot eh authorization of the issuance of capital notes, serial bonds, statutory installment bond, and bond anticipation notes, or the renewals of said obligations and of Section 50.00 and Section 56.00 to 60.00 of the Local Finance Law, the powers and duties of the Board of Fire Commissi9ners of the Medway-Grapeville Fire District relative to authorizing bonds and bond anticipation notes and prescribing the terms, form and contents as to the sale and issuance of the bonds herein authorized and of any bond anticipation notes issued in anticipation of said bonds, and the renewals of said notes, are hereby delegated to the Fire District Treasurer, the Chief Fiscal Officer of the Fire District.

     Section 8. The validity of the bonds authorized by this Bond Resolution and the notes issued in anticipation of said bonds may be contested only if: such obligations are authorized for an object or purpose for which the Fire District is not authorized to expend money: or the provisions of law which should be complied with at the date of the publication of such resolution are not substantially complied with, and an action, suit or proceeding contesting such validity is commenced with twenty (20) days after the date of such publication; or (c) such obligations are authorized in violation of the provisions of the Constitution.

     Section 9. This resolution shall, before being effective, be approved at a special election of qualified electors of said Medway-Grapeville Fire District to be held at the firehouse located on County Route 51 in the Town of New Baltimore on the 21st day of August beginning at 6:00 pm Eastern Standard Time and shall close at 9:00 pm Eastern Standard Time and that vote upon such proposition shall be taken by ballot in the manner provided by law, and is it
     FURTHER RESOLVED, that the District Secretary is hereby ordered and directed to prepare the ballots, which shall be substantially the following form:

PROPOSITION #1
     Shall the resolution entitled, "A resolution authorizing the issuance of Fire District Serial Bonds of the Medway-Grapeville Fire District for the purchase of an American LaFrance fire truck and accessories" adopted on the 16th day of July 2007 be approved?

     All qualified voters of the Medway-Grapeville Fire District shall be qualified to vote at said special referendum.

     By order of the Board of Fire Commissioners of the Medway-Grapeville Fire District of the Town of New Baltimore, Greene County, New York."


                                                         Yours truly,



                                                          Lorie J. Dupuis, Secretary
                                                          214 Hillcrest Road
                                                          Hannacroix, NY 12087
                                                          (518) 966-4481