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<br />Section 2. Said bonds shall be dated approximately November 1, <br />1986, shall bear interest at the estimated rate of ten, per centum (10%) <br />per annum, payable semi-annually, until the principal sum is paid, and <br />shall mature in thirty (30) substantially equal annual installments <br />after their issuance. <br /> <br />Section 3. It is hereby determined that notes (hereinafter <br />called the IINotes") in the principal amount of $3",340,000 shall be <br />issued in anticipation of the issuance of said bonds for the above- <br />described purpose and to pay and retire the outstanding notes. The <br />Notes shall bear. interest at such rate or rateS not exceeding the <br />maximum interest rate of fifteen per centum (15%) per annum, as may be <br />fixed by the Director of finance in his certificate awarding the Notes <br />at private sale, such interest to be payable at maturity~ with provi- <br />sion, if requested by the purchaser~ that, in the event of default, the <br />same shall bear interest at a rate or rates not exceeding fifteen per <br />centum (15%) per annum until the principal sum is paid; shall be dated <br />their date of issuance; shall mature one year from such date; shall not <br />be subject to redemption by the City at any time prior to maturity, <br />unless the original purchaser of the Notes reque~ts that the Notes <br />provide for such redemption, in which c~se provision shall be made for <br />calling the Notes for redemption upon ten (10) days written notice to <br />the original purchaser; shall be designated "Sewer System Improvements <br />Bond Anticipation Notes - 1985 Renewal";- shall be iSsued in such numbers <br />and denominations as may be requested by the original purchaser; and <br />shall be payable as to both principal and interest at the offices of the <br />Director of Finance of the City, or at banks or trust companies, as <br />determined by the Director of Finance, without deduction for exchange~ <br />collection or service charge. <br /> <br />Section 4. The 'Notes shall be executed by the Mayor and <br />Director of Finance, provídedthat one of such signatures may be a <br />facsimile signature. and bear the seal of the corporation or a facsimile <br />thereof. The Notes shall express upon their faces the purpose for which <br />they are issued and that they are issued pursuânt to this ordinance. <br /> <br />Section 5. Subject to the rejection of the Notes by the <br />Director of Finance for investment in the Bond Retirement Fund , . the <br />Notes shall be sold at private sale at hot less than the par value <br />thereof by the Director of Finance at an interest rate not exceeding <br />that specified in Section 3 of this ordinance and. in accordance with the <br />best interests and welfare of the City; and the Director of Finance is <br />hereby authorized and directed to deliver the Notes, when executed, to <br />the original purchaser thereof upon payment of the purchase price. The <br />proceeds of such sale shall be paid into the proper fund and~used for <br />the purpose for which the Notes are being issued under the provisions of <br />this ordinance. Any premium and accrued interest shall be transferred <br />to the Bond Retirement Fund to be applied to the payment of the princi- <br />pal of an interest oTi the Notes in the manner provided by law. <br /> <br />The City hereby covenants that it will restrict the use of the <br />proceeds of the Notes in such manner and to such extent, if any, as may <br />be necessary, after táking into account reasonable expectations at the <br />time of the delivery of any payment for the Notes, so that the Notes <br />will not constitute arbitrage bonds under Section 103(c) of the Internal <br />Revenue Code and the applicable income tax regulations under that Sec- <br />tion. The fiscal officer or any other officer, including the Clerk of <br /> <br />-2- <br />