810-54 Ordinance - Laserfiche WebLink

Home Browse Search

_2_ SECTION 3. That it is necessary to issue and this Council hereby determines that notes in the aggregate principal amount of $100,000 shall be issued in anticipation of such bonds and of the levy and collection of special assessments and to retire, together with other funds available to the City, the outstanding notes dated August 1, 1980. Such anticipatory notes shall bear interest at a rate or rates not to exceed the maximum interest rate per annum permitted by law in effect at the time of the award and sale of the notes, payable at maturity, with provision, if requested by the purchaser, that in the event of default in the payment of the principal of such notes at maturity, such notes shall bear interest at a different rate or rates, but not exceeding the maximum interest rate per annum permitted by law in effect at the time of the award and sale of the notes, fram the said maturity until the principal sum is paid. Such notes shall be dated June 5, 1981, and shall mature on October 5, 1981, but, if agreed to by the purchaser thereof, shall be issued subject to prepayment prior to maturity at par and accrued interest, and shall be issued in such numbers and denaminations as may be requested by the purchaser thereof. SECTION 4. That such notes shall be executed by the Mayor and Director of Finance, one of whose signatures may be a facsimile, and bear the seal of the corporation or a facsimile of such seal; shall bear such numbers as designated by the Director of Finance; shall be payable at the main office of National City Bank, Cleveland, Ohio, or at such other bank in the City of Cleveland, Ohio as may be designated by the purchaser and approved by the Director of Finance, without deduction for its services as the City's paying agent; shall be payable in lawful money or, if requested by the purchaser, in Federal Reserve funds of the United States of America; and shall express upon their faces the purpose for which they are issued and that they are issued pursuant to this ordinance. SECTION 5. That such notes shall be first offered to the Director of Finance as the officer in charge of the Bond Retirement Fund of the City and so many of the same as shall not be taken for said Bond Retirement Fund shall be sold by the Director of Finance at private sale for not less than the par value thereof together with any premium and accrued interest thereon and at an interest rate not exceeding that specified in Section 3 of this ordinance; and the Director of Finance is hereby authorized and directed to deliver such notes, when executed, to the purchaser thereof upon payarent of such purchase price. The proceeds from the sale of such notes, except any premium and accrued interest thereon, shall be paid into the proper fund and used for the purpose for which such notes are being issued under the provisions of this ordinance and for no other purpose. Any premium and accrued interest received from such sale shall be transferred to the Bond Retirement Eund to be applied to the payment of the principal of and interest on such notes in the manner provided by law. SECTION 6. That the City hereby covenants that it will restrict the use of the proceeds of the notes in such manner and to such extent, if any, as may be necessary, after taking into account reasonable expectations at the time of the delivery of and payment for such notes, so that the notes will not constitute arbitrage bonds under Section 103(c) of the Internal Revenue Code and the applicable income tax regulations under that Section. The fiscal officer or any other officer having responsibility for issuing the notes is authorized and directed, alone or in conjunction with any of the foregoing or with any other officer, employee or consultant of the City, to give an appropriate certificate of the City, for inclusion in the transcript of proceedings, setting forth the reasonable expectations of the City regarding the amount and use of all such proceeds and the facts and estimates on which they are based, all as of the date of delivery of and payment for such notes pursuant to Section 103(c) and regulations thereunder.