|
-3-
<br />either or both of those officers, on behalf of the City and in their official capacities, are
<br />authorized to (i) prepare or cause to be prepared, and make or authorize modifications,
<br />completions or changes of or supplements to, such an official statement, (ii) determine, and to
<br />certify or otherwise represent, when the official statement is to be "deemed final" (except for
<br />permitted omissions) by the City as of its date or is a final official statement for purposes of
<br />SEC Rule 15c2-12(b)(1), (3) and (4), (iii) use and distribute, or authorize the use and
<br />distribution of those official statements and any supplements thereto in connection with the
<br />original issuance of the Notes, and (iv) complete and sign those official statements as so
<br />approved together with such certificates, statements or other documents in connection with the
<br />finality, accuracy and completeness of those official statements.
<br />Section 7. The proceeds from the sale of the Notes, except any premium and
<br />accrued interest, shall be paid into the proper fund or funds and those proceeds are appropriated
<br />and shall be used for the purpose for which the Notes are being issued. Any portion of those
<br />proceeds representing premium and accrued interest shall be paid into the Bond Retirement
<br />Fund.
<br />Section 8. The par value to be received from the sale of the Bonds or of any
<br />renewal notes and any excess funds resulting from the issuance of the Notes shall, to the extent
<br />necessary, be used to pay the debt charges on the Notes at maturity and are pledged for that
<br />purpose.
<br />Section 9. During the year or years in which the Notes are outstanding, there
<br />shall be levied on all the taxable property in the City, in addition to all other taxes, the same tax
<br />that would have been levied if the Bonds had been issued without the prior issuance of the
<br />Notes. The tax shall be within the 11.1-mill limitation provided by the Charter of the City, shall
<br />be and is ordered computed, certified, levied and extended upon the tax duplicate and collected
<br />by the same officers, in the same manner, and at the same time that taxes for general purposes
<br />for each of those years are certified, levied, extended and collected, and shall be placed before
<br />and in preference to all other items and for the full amount thereof. The proceeds of the tax
<br />levy shall be placed in the Bond Retirement Fund, which is irrevocably pledged for the payment
<br />of the debt charges on the Notes or the Bonds when and as the same fall due.
<br />Section 10. The City covenants that it will use, and will restrict the use and
<br />investment of, the proceeds of the Notes in such manner and to such extent as may be necessary
<br />so that (a) the Notes will not (i) constitute private activity bonds, arbitrage bonds or hedge bonds
<br />under Section 141, 148 or 149 of the Internal Revenue Code of 1986, as amended (the Code),
<br />or (ii) be treated other than as bonds to which Section 103(a) of the Code applies, and (b) the
<br />interest on the Notes will not be treated as an item of tax preference under Section 57 of the
<br />Code.
<br />The City further covenants that (a) it will take or cause to be taken such actions
<br />that may be required of it for the interest on the Notes to be and remain excluded from gross
<br />income for federal income tax purposes, (b) it will not take or authorize to be taken any actions
<br />that would adversely affect that exclusion, and (c) it, or persons acting for it, will, among other
<br />acts of compliance, (i) apply the proceeds of the Notes to the governmental purposes of the
<br />borrowing, (ii) restrict the yield on investment property, (iii) make timely and adequate
<br />payments to the federal government, (iv) maintain books and records and make calculations and
<br />reports, and (v) refrain from certain uses of those proceeds and, as applicable, of property
<br />
|