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Section 1. It is hereby declared necessary to issue bonds of <br />the City of Lakewood in the principal amount of $100,000 for the purpose <br />of replacing water mains, fire hydrants and curb connections in Cohassett <br />Avenue. <br /> <br /> Section 2. Said bonds shall be dated approximately August 1, <br />1988, 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 twenty (20) substantially equal annual installments <br />after their issuance. <br /> <br /> Section 3. It is hereby determined that notes (hereinafter <br />called the "Notes") in the principal amount of $100,000 shall be issued <br />in anticipation of the issuance of said bonds for the above-described <br />purpose and to pay and retire the outstanding notes. The Notes shall <br />bear interest at such rate or rates not exceeding the maximum interest <br />rate of fifteen per centum (15%) per annum, as may be fixed by the <br />Director of Finance in his certificate awarding the Notes at private <br />sale, such interest to be payable at maturity; shall be dated August 26, <br />1987; shall mature on August 26, 1988; shall not be subject to redemp- <br />tion by the City at any time prior to maturity, unless the original <br />purchaser of the Notes requests that the Notes provide for such redemp- <br />tion, in which case provision shall be made for calling the Notes for <br />redemption upon ten (10) days written notice to the original purchaser; <br />shall be designated "Cohassett Water Main Bond Anticipation Notes - 1987 <br />Renewal"; shall be issued in such numbers and denominations as may be <br />requested by the original purchaser; and shall be payable as to both <br />principal and interest at the offices of the Director of Finance of the <br />City, or at banks or trust companies, as determined by the Director of <br />Finance, without deduction for exchange, collection or service charge. <br /> <br /> Section 4. The Notes shall be executed by the Mayor and <br />Director of Finance, provided that 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 pursuant 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 not less than the par value <br />thereof by the Director of Finance and 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 on the Notes in the manner provided by law. <br /> <br /> The City 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 so that the Notes will not constitute arbitrage bonds under <br />Section 148 of the Internal Revenue Code of 1986, as amended (the <br /> <br />-2- <br /> <br /> <br />