111-86 Lakewood Hts improvements - BAN

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higher than the yield on the Notes,' expend:Lng proceeds and portions thereof within the times provided, making reports to the United States, and the rebate of certain excess earnings from the investment of the proceeds to the United States. The Director of Finance and other appro- priate officers are hereby authorized to make any such rebate or rebates of such excess investment earnings and to take such .other actions and give such certifications on behalf of the City as may be appropriate for the purposes aforesaid. Section 6. This Council reasonably anticipates that the amount of "qualified tax-exempt obligations", as that term is used in Section 265(b)(3)(A) of the Internal Revenue Code, as amended by the Tax Reform Act of 1986 passed by the United Sta~es House of Representatives and the United States Senate on September 25 and 26, respectively (the "Act"), to be issued during calendar year 1986 will not exceed $10,000,000 and that the City has heretofore designated a total of $4,864,000 of "qualified tax-exempt obligations" (as that term is used in the Act). Therefore, this Council hereby designates the Notes as "qualified tax-exempt obligations" pursuant to the provisions of Sec- tion 265(b)(3)(B)(ii) of the Internal Revenue Code, as amended by the Act. Section 7. The Notes shall be the full general obligations of the City of Lakewood and the full faith, credit and revenue of said City are hereby pledged for the prompt payment of the same. The par value to be received from the sale of the bonds anticipated by the Notes and any excess funds resulting from the issuance of the Notes shall, to the extent necessary, be used only for the retirement of the Notes at matur- ity, together with the interest thereon, and is hereby pledged for such purpose. Section 8. During the year or years while the Notes run, there shall be levied on all the taxable property in the City of Lakewood, in addition to all other taxes, a direct.tax annually not less than that which would have been levied if bonds had been issued without the prior issue of the Notes. Said tax shall be and is hereby ordered computed, certified, levied and extended upon the tax duplicate and collected by the same officers, in the same manner and at the same time that taxes for general purposes of each of said years are certified, extended and collected. Said tax shall be placed before and in prefer- ence to all items and for the full amount thereof. The funds derived from said tax levies hereby required shall be placed in a separate and distinct fund which, together with the interest collected on the same shall be irrevocably pledged for the payment of the principal of and interest on the Notes or the bonds in anticipation of which they are issued, when and as the same falls due; provided, however, that in each year to the extent that revenues are available from other sources for the payment of the Notes and bonds and are appropriated for such pur- pose, the amount of such direct tax upon all of the taxable property in the City shall be reduced by the amount of such revenues so available and appropriated. Section 9. It is hereby determined and recited that all acts, conditions and things necessary to be done precedent to and in the issuing of the Notes in order to make them legal, valid and binding obligations of the City of Lakewood, will have been done and performed in regular and due form as required by law; and that no limitation of -3-