72-196 Ordinance - Laserfiche WebLink

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- 2 - ~~: as may be fixed by the Director of Finance in his award of said notes at private sale, such interest to be payable at maturity, and may bear a penalty rate of interest not exceeding eight per centum per annum, if default is made in payment of the notes at maturity. Said notes shall be dated December 2$, 1972, and shall mature on December 27, 1973. Said notes shall be signed by the Mayor and by the Director of Finance, shall bear the corporate seal of the City, shall be payable at the office of The National City Bank of Cleveland, Cleveland, Ohio, and sha~.l. express on their face the purpose for which they are issued and that they are issued pursuant to this ordinance. Said notes shall be in such number and dene~nination as may be requested by the purchaser and may be payable in Federal Reserve funds of the United States of America if requested by the purchaser. Section 5. Subject to the rejection of such notes by the Director of Finance for investment in the Bond Retirement Fund, such notes shall be sold by the Director of Finance at private sale at an interest rate not exceeding that set forth in Section ~+ and for not less than pas and acc~,ted interest. The proceeds from such sale, except any premium and accrued interest, shall be paid into the proper fund and used for the purpose aforesaid and for no other purpose. Any premium and accrued interest shall be deposited. in the Bond Retirement Fund. It is hereby certified that it is not expected that the proceeds of the issue of such notes will be used in a manner that would cause such notes to be arbitrage bonds under Section 103(d) of the Internal Revenue Code of 1951+, as amended, and valid regulations thereunder; that all of the proceeds of such notes are needed for the purpose for which they are hereby authorized to be issued, substantial expenditures were promptly committed to the original purpose through binding obligations, work on the project proceeded with due diligence to ecanpletion, all available proceeds from the original notes issued for the project were expended within the temporary period reasonably required through the exercise of due diligence to complete the project and make final pay- ments, and any such proceeds were invested or deposited only for a tem- porary period until needed for the purpose for which the notes were issued; and that this certification is based upon all of the relevant facts and circumstances in existence, including those more particularly set forth in the certificate of the fiscal officer entitled "IRC Section 103(4) Certificate" which shall be incorporated in the transcript of proceedings perta3.ning to such notes and which certificate is adopted and incorporated herein by reference. The City covenants to the purchasers of such notes that it will make no use of the proceeds of such notes which, if such use had been reasonably expected on the date of issue of such notes, would have caused them to be arbitrage bands under Section 103(d) of the In- ternal Revenue Code of 1951+, as amended, as in effect on the date of such issue, and any valid regulations thereunder and that it will comply with the requirements of said Section 103(d) and the requirements of any valid regulations thereunder, all to the extent as may be necessary, at the time of the use of such proceeds, so that such use will not cause such notes to be arbitrage bonds under Section 103(d) of the Internal Revenue Code of 1951+, as amended. Section 6. Said notes shall be the full general obligation of the City and the full faith, credit and revenue of such City are hereby pledged for the prompt payment of the same. The pax value to be received frc~n the sale of the bonds anticipated by said notes and any excess funds resulting from the issuance of said notes shall to the extent necessary be used only for the retirement of said notes at maturity, together with interest thereon, and are hereby pledged for such purpose. ,.gip ..