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-2- <br /> <br /> Section 6. Subject to the rejection of said notes by the Director <br />of Finance for investment in the Bond P~tirement Fund, said notes shall be <br />sold at the par value thereof by the Director of Finance at an interest <br />rate or rates not exceeding that specified in Section 4 of this ordinance <br />and in accordance with the best interests and welfare of the City; and the <br />Director of Finance is hereby authorized and directed to deliver said notes, <br />when executed, to the original purchaser or purchasers thereof upon payment <br />of the purchase price. The proceeds of such sale shall be paid into the <br />Breakwall Construction Fund, which is hereby created, and is hereby appropriated <br />and shall be used for the purpose for which said notes are being issued under <br />the provisions of this ordinance. <br /> <br /> The City hereby covenants that it will restrict the use of the <br />proceeds of said notes in such manner and to such extent, if any, as may be <br />necessary, after taking into account reasonable expectations at the time of <br />the delivery of and payment for such notes, so that said notes will not con- <br />stitute arbitrage bonds under Section 103(c) of the Internal Revenue Code <br />and the applicable income tax regulations under that Section.. The fiscal <br />officer or any other officer, including the Clerk, having responsibility <br />for issuing said notes is authorized and directed, alone or in conjunction <br />with any of the foregoing or with any other officer, employee, or consultant <br />of the City, to give an appropriate certificate of the City, for inclusion <br />in the transcript of proceedings, setting forth the reasonable expectations <br />of the City regarding the amount and use of all such proceeds and the facts <br />and estimates on which they are based, all as of the date of delivery and <br />payment for said notes. <br /> <br /> Section 7. Ail assessments collected for the improvement afore- <br />said, and any unexpended balance remaining in the improvement fund after <br />the costs and expenses of said improvement have been paid, shall be applied <br />to the payment of said notes and the interest thereon until both are fully <br />provided for. <br /> <br /> Section 8. Said notes shall be the full general obligations of the <br />City and the full faith, credit and revenue of said City are hereby pledged <br />for the prompt payment of the same. The par value to be received from the <br />sale of the bonds anticipated by said notes and any excess funds resulting <br />from the issuance of said notes shall to the extent necessary be used only <br />for the retirement of said notes at maturity, together with interest thereon, <br />and are hereby pledged for such purpose. <br /> <br /> Section 9. In the event that such assessments are not levied or <br />bonds are not issued to provide a fund for the payment of said notes at <br />maturity, a general tax shall be levied against all of the property in said <br />City for the.payment of such notes and the interest thereon; provided, how- <br />ever, that during the year or years while such notes run there shall be <br />levied on all the taxable property in said City, in addition to all other <br />taxes, a direct tax annually not less than that which would have been levied <br />for the City's portion of said notes if bonds had been issued therefor <br />without the prior issue of said notes. <br /> <br /> Said tax shall be and is hereby ordered computed, certified, levied <br />and extended upon the tax duplicate and collected by the same officers, in <br />the same manner and at the same time that taxes for general purposes for <br />each of said years are certified, extended and collected. Said tax shall <br />be placed before and in preference .to all other items and for the full <br />amount thereof. The funds derived from said tax ievies hereby required <br />shall be placed in a separate and distinct fund, which, together with the <br />interest collected on the same, Shall be irrevocably pledged for the payment <br />of the principal and interest of said notes or the notes in anticipation of <br />which they are issued when and as the same fall due. <br /> <br /> Section 10. It is hereby determined that all acts, conditions <br />and things necessary to be done precedent to and in the issuing of said <br />notes, in order to make them legal, valid and binding obligations of the <br /> <br /> <br />