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Section 3. That it is hereby determined that notes (herein- <br />after called the "Notes") in the principal amount of $62,000 shall be <br />issued in anticipation of the issuance of said bonds for the above- <br />described purpose. The Notes shall bear interest at a rate or rates not <br />exceeding the maximum interest rate of fifteen per centum (15%) per <br />annum, as may be fixed by the Director of Finance in his certificate <br />awarding the Notes at private sale, such interest to be payable at <br />maturity, with provision, if requested by the purchaser, that, in the <br />event of default, the same shall bear interest at a rate or rates not <br />exceeding fifteen per centum (15%) per annum until the principal sum is <br />paid; shall be dated August 26, 1988; shall mature August 25, 1989; <br />shall not be subject to redemption by the City at any time prior to <br />maturity; shall be designated "Motorized Equipment Bond Anticipation <br />Notes - 1988 Renewal"; shall be issued in such numbers and denominations <br />as may be requested by the original purchaser; and shall be payable as <br />to both principal and interest 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. That 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 /> 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 the par value thereof by the Director of Finance <br /> at private sale at an interest rate not exceeding that specified in <br /> Section 3 of this ordinance pursuant to and in accordance with the terms <br /> and conditions set forth in the form of Invitation of Proposals attached <br /> hereto as Exhibit 1, and after distribution of said Invitation for <br /> Proposals to prospective purchasers of the Notes; and the Director of <br /> Finance is hereby authorized and directed to deliver the Notes, when <br /> 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 /> proper fund and used for the purpose for which the Notes are being <br /> issued under the provisions of this ordinance and to pay those costs of <br /> issuance set forth in Section 133.361, Ohio Revised Code. Any premium <br /> and accrued interest shall be transferred to the Bond Retirement Fund to <br /> be applied to the payment of the principal of an interest on the Notes <br /> 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 /> "Code"). The Director of Finance, as the fiscal officer, or any other <br /> officer of the City having responsibility for the issuance of the Notes <br /> shall give an appropriate certificate of the City, for inclusion in the <br /> transcript of proceedings for the ~otes~, setting forth the reasonable <br /> expectations of tke City regarding the amount and use of all the pro- <br /> ceeds of the Notes, the facts, circumstances, and estimates on which <br /> they are based, and other facts and circumstances relevant to the tax <br /> treatmemt of interest on the Notes. <br /> <br />-2- <br /> <br /> <br />