BOND RESOLUTION DATED MAY ___, 2007.

A RESOLUTION AUTHORIZING THE ISSUANCE OF $2,600,000 BONDS OF PAWLING CENTRAL SCHOOL DISTRICT, DUTCHESS AND PUTNAM COUNTIES, NEW YORK, TO PAY THE COST OF THE RENOVATION OF THE ELEMENTARY SCHOOL IN AND FOR SAID SCHOOL DISTRICT.

WHEREAS, all conditions precedent to the financing of the capital project hereinafter described, including compliance with the provisions of the State Environmental Quality Review Act ("SEQRA") as a Type II Action, have been performed and materials relating to SEQRA are available at the office of the School District Clerk where they may be inspected during normal business hours; and

WHEREAS, at the Annual District Meeting of the qualified voters of Pawling Central School District, Dutchess and Putnam Counties, New York (the “School District”), held on May 8, 2006, a proposition was duly adopted authorizing the Board of Education of said School District to undertake renovation to the Elementary School, including incidental costs and expenses in connection therewith, at a maximum estimated cost of $2,600,000, such proposition providing for the levy of a tax therefor to be collected in installments, with up to $2,600,000 obligations of said School District to be issued in anticipation thereof; and

WHEREAS, it is now desired to provide for the authorization of such purpose and for the financing thereof; NOW, THEREFORE, BE IT

RESOLVED, by the affirmative vote of not less than two-thirds of the total voting strength of the Board of Education of Pawling Central School District, Dutchess and Putnam Counties, New York, as follows:

Section 1. The renovation of the elementary school, including roof replacement, repointing of façade, and exterior entrance repairs and incidental improvements and expenses in connection therewith, at a maximum estimated cost of $2,600,000, in and for the Pawling Central School District, Dutchess and Putnam Counties, New York, is hereby authorized.

Section 2. The plan for the financing of the aforesaid maximum estimated cost shall be by the issuance of $2,600,000 bonds of said School District hereby authorized to be issued therefor, pursuant to the provisions of the Local Finance Law

Section 3. It is hereby determined that the period of probable usefulness of the aforesaid specific object or purpose is thirty (30) years, pursuant to subdivision 97 of paragraph a of Section 11.00 of the Local Finance Law, as a “school reconstruction project eligible for the apportionment of aid” as described therein.

Section 4. Subject to the provisions of the Local Finance Law, the power to authorize the issuance of and to sell bond anticipation notes in anticipation of the issuance and sale of the bonds herein authorized, including renewals of such notes, is hereby delegated to the President of the Board of Education, the chief fiscal officer. Such notes shall be of such terms, form and contents, and shall be sold in such manner, as may be prescribed by said President of the Board of Education, consistent with the provisions of the Local Finance Law.

Section 5. The faith and credit of said Pawling Central School District, Dutchess and Putnam Counties, New York, are hereby irrevocably pledged for the payment of the principal of and interest on such bonds as the same respectively become due and payable. An annual appropriation shall be made in each year sufficient to pay the principal of and interest on such bonds becoming due and payable in such year. There shall annually be levied on all the taxable real property in said School District, a tax sufficient to pay the principal of and interest on such bonds as the same become due and payable.

Section 6. All other matters except as provided herein relating to the bonds herein authorized including the date, denominations, maturities and interest payment dates, within the limitations prescribed herein and the manner of execution of the same, including the consolidation with other issues, and also the ability to issue bonds with substantially level or declining annual debt service, shall be determined by the President of the Board of Education, the chief fiscal officer of such School District. Such bonds shall contain substantially the recital of validity clause provided for in Section 52.00 of the Local Finance Law, and shall otherwise be in such form and contain such recitals, in addition to those required by Section 51.00 of the Local Finance Law, as the President of the Board of Education shall determine consistent with the provisions of the Local Finance Law.

Section 7. The validity of such bonds and bond anticipation notes may be contested only if:

1) Such obligations are authorized for an object or purpose for which said School District is not authorized to expend money, or

2) The provisions of law which should be complied with as of the date of publication of this resolution are not substantially complied with,

and an action, suit or proceeding contesting such validity is commenced within twenty days after the date of such publication, or

3) Such obligations are authorized in violation of the provisions of the Constitution.

Section 8. This resolution shall constitute a statement of official intent for purposes of Treasury Regulations Section 1.150‑2. Other than as specified in this resolution, no monies are, or are reasonably expected to be, reserved, allocated on a long-term basis, or otherwise set aside with respect to the permanent funding of the object or purpose described herein.

Section 9. This resolution, which takes effect immediately, shall be published in summary form in ____________________________, which is hereby designated as the official newspaper of said School District for such purpose, together with a notice of the School District Clerk substantially in the form provided in Section 81.00 of the Local Finance Law.

The question of the adoption of the foregoing resolution was duly put to a vote on roll call, which resulted as follows:

_____________________________________ VOTING ___________

The resolution was thereupon declared duly adopted.