41-07 Retiring Computer Notes - Laserfiche WebLink

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(2) The proceeds to be received from the sale of any notes issued to refund the Notes and of the Bonds in anticipation of which the Notes are issued (3) Any money remaining from the sale of the Notes and not required for the payment of costs of the Project. (b) The Debt Service on the Notes must be paid at their maturity from any of the amounts set forth above pledged to their payment, or any funds of the City otherwise available for their payment. (c) During the years while the Notes are outstanding, there wiI1 be levied on all the taxable property in the City, in addition to all other taxes, a direct tax annually, subject to tax limitations, not less than the tax that would have been levied had the Bonds been issued without the prior issue of the Notes. The tax must be and is ordered to be computed~ certified, levied, and extended upon the hax 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 must be placed before and in preference to all other items and for its full mount. The money derived from that tax levy must be placed in thb Bond Retirement Fund of the City and is irrevocably pledged for the payment of the Debt Service on the Notes, when and as that Debt Service falls due. If any of the following amounts are available for the payment of the Notes and are appropriated for that purpose, the mount of the tax levy in each year must be reduced by the amount available and appropriated: (1) Any surplus in the Bond Retirement Fund. (2) Proceeds received from the sale of the Bonds or any notes issued to refund or renew the Notes (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 on the Notes and that it will not take or permit to be taken any ections that would adversely affect that Federal Tax Status. Without 1/m/ting these covenants, the City specifically covenants as follows: ia) Private Activity Bonds. The City will apply the proceeds received from the sale of the Notes to pay costs of the Project, to retire the Outstanding Notes, and to pay the Financing Costs in connection with the Notes. The City will not permit the use of the Project by any person, will got secure or derive the money for payment of Debt Service on the Notes by any property or payments, and will not loan the proceeds of the Notes to any person, all in a manner as to cause the Notes to be "private activity bonds" within the meaning of Code Section 141 ia) Arbitrage. The City will restrict the use ofproeaeds of the Notes in the manner and to the extent as may be necessary, after taldng into account reasonable expectations at the time of the delivery of and payment for the Notes, so that the Notes will not constitute "arbitrage bonds" within the meaning of Code Section 148. The Director of Finance or any other official having responsibility for issuing the Notes, is authorized and directed, alone or in conjunction with any other officer, employee, or consultant of the City, to sign and deliver a certificate of the City, for inclusion in the transcript of proceedings for the Notes, setting forth the reasonable expectations of the City on the Closing Date, regarding the emount and use of the proceeds of the Notes in accordance with Code Section i48. If required, the City will limit the yield on any "investment property" (as defined in Code Section 148(b)(2)) acquired with the proceeds of the Notes Arbitrage Rebate. Unless the gross proceeds of the Notes ore expended in accordance with one of the spending period exceptions set forth in Treas. Reg § 1. ~48~7, ~e City will pay the mnounB required by Code Section 148(0(2) to the United States at the times required by Cede Section 148(0(3) The City will 5