32-87 Notes - Improving Chesterland & other streets

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the City regarding the amount and use of all the proceeds of the Notes and the facts and estimates on which they are based, all as of the date. of delivery of and payment for the Notes. The City covenants that it will take all actions that may be required of the City for the interest on the Notes to be and remain excluded from gross income for federal income tax purposes, and will not take any actions which would adversely affect such exclusion, under the provisions of federal tax laws that allply to the Notes, including the provisions of the Code and applicable amendments thereto, and will, among other acts of compliance, apply the proceeds of the Notes, restrict the yield on investments of, or on obligations acquired with, such proceeds, make timely rebate payments to the federal government, maintain hooks and records, and refrain from certain uses of proceeds, all in such manner and if and to the extent necessary for the interest on the Notes to be and remain excluded :from gross income for federal income tax purposes; and the Director of Finance and other appropriate officers are hereby authorized and directed to take any and all such actions, make such rebate pa3~ents and make or give such reports and certifications as may be appropriate to assure such exclusion of the interest. Section 6. 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 7. It is further found and determined that 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 Code, to be issued during calendar year 1987, will not exceed $10,000,000 and this Council hereby determines that this issue is an issue not exceeding $420,000 and that the City has heretofore designated $1,470,000 principal amount of "qualified project bonds" (as that term is used in the Code). Therefore, this Council hereby designates the Notes as "qualified project bonds". Section 8. In the event the assessments are not levied, or bonds are not issued to provide a fund for the payment of the Notes at maturity, 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 preference 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 purpose, the amount of such direct tax -3-