74-10 Issuance & sale of bonds $4,550,000

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(a) dnterest Rates and Payment Dates. The Bonds shall bear interest at the rate or rates of interest per year (computed on a 360-day per year basis consisting of twelve 30-day months), as shall be determined by the Director of Finance in the Certificate of Award (subject to section (c) of this Section). Interest on the Bonds shall be payable at such rate or rates on the Interest Payment Dates until the principal amount has been paid or provided for. The Bonds shall bear interest from the most recent date to which interest has been paid or provided for or, if no interest has been paid or provided for, from their date. (b) Principal Payment Schedule. The Bonds shall mature or be payable pursuant to Mandatory Sinking Fund Redemption on the Principal Payment Dates in principal amounts as shall be determined by the Director of Finance, subject to subsection (c) of this Section, in the Certificate of Award, which determination shall be consistent with the best interests of and financial advantages to the City. Consistent with the foregoing and in accordance with the determination of the best interest of and financial advantages to the City, the Director of Finance shall specify in the Certificate of Award (i) the aggregate principal amount of the Bonds to be issued as Serial Bonds, if any, the Principal Payment Date or Dates on which those Serial Bonds shall be stated to mature and the principal amount thereof that shall be stated to mature on each such Principal Payment Date, and (ii) the aggregate principal amount of the Bonds, if any, to be issued as Term Bonds, the principal amount thereof that shall be stated to mature on each such Principal Payment Date, and the Mandatory Sinking Fund Redemption Date and the Mandatory Sinking Fund Redemption applicable to those Term Bonds. (c) Conditions for Establishment of Interest Rates and Principal Payment Dates and Amounts. The rate or rates of interest per year to be borne by the Bonds, and the principal amount of Bonds maturing, shall be such that the total principal and interest payments on the Bonds in any fiscal year in which principal is payable is not more than three times the amount of those payments in any other fiscal year. The net interest rate per year for the Bonds determined by taking into account the respective principal amounts of the Bonds and terms to maturity or Mandatory Sinking Fund Redemption of those principal amounts of Bonds shall not exceed 6% per year. (d) Payment of Bonds. The principal of and interest and any premium on the Bonds shall be payable in lawful money of the United States of America without deducfion for the services of the Bond Registrar as paying agent. Principal of and any premium on the Bonds, shall be payable when due upon presentafion and surrender of the Bonds at the designated corporate trast office of the Bond Registrar. Interest on a Bond shall be paid on each Interest Payment Date by check or draft mailed to the person in whose name the Bond was registered, and to that person's address appearing, on the Bond Register at the close of business on the 15th day of the calendar month next preceding that Interest Payment Date. Notwithstanding the foregoing, if and so long as the Bonds are issued in a book entry system, principal of and interest and any premium on the Bonds shall be payable in the manner provided in any agreement entered into by the Director of Finance, in the name and on behalf of the City, in connection with the book entry system. 6