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<br />Bonds to be deemed paid and discharged. The accrued interest received by the City from the
<br />sale of the Bonds shall be paid into the Bond Retirement Fund.
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<br />SECTION 10 For the purpose of providing the necessary funds to pay the
<br />interest on the Bonds promptly when and as the same falls due; and also to provide a fund
<br />sufficient to pay the priucipal of tbe Bonds when due, there shall be and is hereby levied on all
<br />taxable property in the City, in addition to all other taxes, a direct tax aunually during the period
<br />the Bonds are outstanding in an_ arnmmt sufficient to provide funds to pay the interest upon the
<br />Bonds as and when the same fall due, and also to provide a fund for the payment of the principal
<br />of the Bonds when due, which tax shall not be less than the interest and sinking fund tax required
<br />by Section 11 of Article Xli of the Constitution of Ohio. Said tax shallbe and is hereby ordered
<br />computed, certified,_ levied and extended upon the tax duplicate and collected by the same
<br />officers, in the same manner and at the same time that taxes for general purposes for each of said
<br />years are certified, extended and collected, Said tax shall be placed before and in preference to
<br />all other items and for the full amount thereof The funds derived trom the tax levy hereby
<br />required shall be placed in a separate and distinct fund, which, together vvith the interest
<br />collected on the same (other than such interest as may be required to be rebated to the federal
<br />government), shall be Ùrevocably pledged for the payment ofthe principal of and interest on the
<br />Bonds when and as the same fall due; provided, however, that in each year to _ the extent that
<br />other revenues are available from other sources for the payment of the Bonds and are
<br />appropriated for such purpose, the amòunt of such direct tax upon all of the taxable property in
<br />the City shall be reduced by the amount of such other revenues so available and appropriated.
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<br />SECTION 11. The City covenants that it will restrict the use and investment of
<br />the proceeds of the Bonds in such manner and to such extent as may be necessary, after taking
<br />into account reasonable expectations at the time of the delivery of and payment for the Bonds, so
<br />that (a) the Bonds will not (i) constitute private activity bonds, arbilrage bonds or hedge bonds
<br />under Sections 141, 148, or 149, respectively, of the Internal Revenue Code of 1986, as
<br />amended (the "Code") or (Ii) be lreated other than as bonds to which Section 103 of the Code
<br />applies, and (b) the interest on the Bonds vvill not be_ an item of tax preference under Section 57
<br />of the Code. The Director of Finance or any other officer having responsibility for issuing the
<br />Bonds, shall, alone or with any other officer or employee of or consultant to the City, give an
<br />appropriate certificate of the City for inclusion in the transcrìpt or proceedings for the Bonds,
<br />setting forth the reasonable expectations _ of the City regarding the amount and use of all the
<br />proceeds of the Bbnds-and the facts and estimates on which they are based, all as of the date of
<br />delivery of and payment for the Bonds.
<br />
<br />The City covenants that it (a) will take all actions that maybe required ofthe City
<br />for the interest _ on the, Bonds to be and remain excluded ftom gross income for federal income
<br />tax purposes,. (b) will not take any actions which would adversely affect such exclusion, under
<br />the provisions of federal tax laws that apply to the Bonds, including the provisions of the Code
<br />and applicable amendments thereto, and (c) vvill, among other acts of compliance, apply the
<br />proceeds of the Bonds, restrict the yield on investments of, or on obligations acquired vvith, such
<br />proceeds, make timely rebate- payments to the federal government, maintain books and records,
<br />and rerrain ftom certain uses of proceeds, all in such manner and if and to' the extent necessary
<br />for the interest on the Bonds to be and remain excluded rrom gross income for federal income
<br />tax purposes. The Director of Finance, as the fiscal officer, or any other appropriate officer of
<br />the City having responsibility for the issuance of the Bonds, is hereby authorized and directed to
<br />take any and aU such actions, make such rebate payments and make or give such r,eports or
<br />certifications as may be appropriate to assure such exclusion ofthe interest on the Bonds
<br />
<br />SECTION 12 If, in the judgment of the Fiscal Officer, the filing of an
<br />application for a policy of insurance from a company or companies to better assure the payment
<br />of prmcipaI and interest on the Bonds, is in the best interest of and fmancially advantageous to
<br />the City, the Council authorizes and directs the Fiscal Officer to prepar~ and submit that
<br />application and to provide to that company or companies the infonnation required for the
<br />purpose. This Council hereby authorizes and apprövesthe expenditure of the amounts necessary
<br />to secure such insurance and authorizes and directs the Fiscal Officer to provide for the payment
<br />of those, amolints ftom any fu:O.ds lawfully available that are appropriated for that purpose,
<br />
<br />{KLF2993;2}
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