36-07 Retire Outstanding Notes - Laserfiche WebLink

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Any interest accrued or premium received on the sale of the Bonds must be deposited in the Bond Retirement Fund of the City and used for the payment of interest on the Bonds on the first Interest Payment Date. Any proceeds of the Bonds representing Capitalized Interest must be deposited in the appmptiate fund and used to pay the interest on the Bonds at the earliest Interest Payment Dates as determined by the Director of Finence in the Certificate of Award~ An amount necessary to pay the Finan(mg Costs of the Bonds, to the extent not paid by the Underwriter in accordance with the Purchase Agreement and to the extent that the Director of Finance determines to pay those Financing Costs finm the proceeds of the Bonds, must be deposited in a separate fund and used for the payment of those Financing Costs (c) The remainder of the proceeds must be paid into the proper fund or funds and used to retire the Outstanding Notes at th(n: maturity. Section 10. Security and Source of Payment. The Bonds will be general obligations of the City (a) This Council pledges to the payment of Debt Charges on the bonds the full faith and credit of the City Including, without limitation: (1) (2) The general taxing power of the City, fuchiding the power to levy taxes within the ten-mill limitation, as defined in Section 5705.02, Revised Code. The proceeds to be received from the sale of any Bonds issued to refund the Bonds. (3) The proceeds from the sale of the Bonds to be used to pay Capitalized Interest. Any money remaluing from the sale of the Bonds aRer the payment of the Financing Cost.4 of the Bonds and not required to retire the Outstanding Notes. (b) During the years while the Bonds are outstanding, there will be levied on ali the taxable property in the City, in addition to all Other taxes, a direct tax annually, in an amount sufficient to pay Debt Charges on the Bonds when due. The tax will not be less than the interest and sinking fund tax required by Section 11 of Article XII of the Ohio Constitution. The tax will be and is ordered to be computed, certified, levied, and extended upon the tax list and collected by the same officers, in the same manner, and at the same time that taxes for general purposes for each of those years are computed, certified, levied, extended, and collected. The tax will be plac~l before and in preference to ail other items and for its full amount. The money derived from that tax levy must be placed in the Bond Retirement Fund of the City and is irrevocably pledged for the payment of the Debt Charges on the Bonds, and any Bonds issued to refimd the Bends, when and as those Debt Charges fall due, (e) The tax provided in (b) above will be reduced In each year the Bonds are outstanding by the sum of the following items, if available to pay Debt Charges on the Bonds and appropriated for that purpose: (1) Any mounts included In the Original Principal Amount of the Bonds as Capitalized Interest. (2) Any surplus in the Bond Retirement Fund. (3) Any other money lawfully available to the City. Section 11. Federal Tax Matters. The City covenants that it will take those actions required to maintain the Federal Tax Status of the Bonds and that it will not take or permit to be taken any actions that would adversely affect that Federal Tax Status Without limiting these covenants, the City specifically covenants as follows: