|
Section 5. The Notes shall be sold at not less than the par value thereof by the
<br />Fiscal Officer at private sale in a manner determined by the Fiscal Officer to be in the best
<br />interest and welfare of the City and at an interest rate not exceedin8 that specified in Section 3 of
<br />this ordinance. The Director of Law shall obtain the services of qualified Bond Counsel, and his
<br />selection of Calfee, Halter & Griswold LLP, Bond Attorneys, Cleveland, Ohio, as Bond Counsel
<br />for the Notes is hereby confirmed, approved and ratified. The Fiscal Officer shall cause the
<br />Notes to be prepared, and have the Notes signed and delivered, together with a Wac transcript of
<br />proceedings with reference to the issuance of the Notes, to the original purchaser thereof upon
<br />payment of the purchase price. The proceeds from the sale of said Notes, except the accrued
<br />interest thereon, shall be paid into the proper fund and used for the purpose for which the Notes
<br />are being issued under the provisions of this ordinance. The proceeds of the Notes also may be
<br />used to pay, and are hereby appropriated to pay, those certain costs of issuance set forth in
<br />Section 133.15(B), Ohio P, evised Code; any such costs also may be paid out of any other
<br />l~wfully available moneys of the City, which monies are hereby appropriated to such purpose;
<br />any such costs may be paid from the same sources from which the principal of and interest on the
<br />Notes are paid, which monies are hereby appropriated for such purpose. Any accrued interest
<br />shall be paid into the Bond Ketirement Fund to be applied to the payment of the principal and
<br />interest of the Notes in the manner provided by law.
<br />
<br /> The City covenants that it will restrict the use of the proceeds of the Notes in such
<br />manner and to such extent, if any, as may be necessary so that the Notes will not constitute
<br />arbitrage bonds under Section 148 of the Iutemal Revenue Code of 1986, as amended (the
<br />"Code"). The Fiscal Officer, as the fiscal officer, or any other officer of the City having
<br />responsibility for the issuance of the Notes shall give an appropriate certificate of the City, for
<br />'inclusion in the transcript of proceedings for the Notes, setting forth the reasonable expectations
<br />of the City regarding the amount and use of all the proceeds of the Notes, the facts,
<br />circumstances, and estimates on which they are based, and other facts and circumstances relevant
<br />to the tax treaunent of interest on the Notes.
<br />
<br /> The City covenants that it (a)will take or cause to be taken such actions which
<br />may be required of it for the interest on the Notes to be and remain excluded from gross income
<br />for federal income tax purposes, and Co) will not take or permit to be taken any actions which
<br />would adversely affect that exclusion, and that it, or persons acting for it, will, among other acts
<br />of compliance, (i) apply the proceeds of the Notes to the governmental purpose of the borrowing,
<br />(ii) restrict the yield on investment property acquired with those proceeds, (iii)make timely
<br />rebate payments to the federal govemment, (iv)maintain books and records and make
<br />calculations and reports, and (v) refrain from certain uses of proceeds, all in such manner and to
<br />the extent necessary to assure such exclusion .of that interest under the Code. The Fiscal Officer
<br />and other appropriate officers are hereby authorized and directed to take any and all actions,
<br />make calculations and rebate payments, and make or give reports and certifications as may be
<br />appropriate to assure such exclusion of that interest.
<br />
<br /> Section 7. The Notes shall be the full general obligations of the City of
<br /> Lakewood and the full faith and credit of said City are hereby pledged for the prompt payment of
<br /> the same. The par value to be received from the sale of the bonds anticipated by the Notes and
<br /> any excess funds resulting from the issuance of the Notes shall, to the extent necessary, be used
<br /> only for the retirement of the Notes at maturity, together with the interest thereon, and is hereby
<br /> pledged for such purpose.
<br />
<br /> Section 8. During the year or years while the Notes run, there shall be levied on
<br /> all the taxable' property in the City of Lakewood, in addition to all other taxes, a direct tax
<br /> annually not less than that which would have been levied if bonds had been issued without the
<br /> prior issue of the Notes. Said tax shall be and is hereby ordered computed, certified, levied and
<br /> extended upon the tax duplicate and collected by the same officers, in the same manner and at
<br /> the same time that taxes for general purposes of each of said years are certified, extended and
<br /> collected. Said tax shall be placed before and in preference to all items and for the full amount
<br /> thereof. The funds derived from said tax levies hereby required shall be placed in a separate and
<br /> distinct fund which, together with the interest collected on the same shall be irrevocably pledged
<br /> for the payment of the principal of and interest on the Notes or the bonds in anticipation of which
<br /> they are issued, when and as the same falls due; provided, however, that in each year to the
<br /> extent that revenues are available from other sources for the payment of the Notes and bonds and
<br />
<br />{KLF0875.DOC;I } 3
<br />
<br />
<br />
|