74-013 Ordinance - Laserfiche WebLink

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?~ i„, - 2 - Section 2. That said bonds shall be dated approximately March 1, 1975, shall bear interest at the estimated rate of six and one-half per centum (6-1/2%) per annum, payable semi-annually, until the principal sum is paid, and shall mature in thirty substantially equal annual installments after their issuance. Section 3. That for the purpose of raising money in anticipation of the issuance of the aforesaid bonds and to provide funds for the retirement of the aforesaid notes maturing March 8, 1974, it is hereby declared necessary to issue and there shall be issued notes of said City in the principal amount of $1,867,000. Section 4. That such anticipatory notes in the amount aforesaid shall bear interest at such rate not exceeding six and one-half per centum (6-1/Z%) per annum, payable at maturity, and at such rate after ~. maturity not exceeding eight per centum (8%) per annum, as may be fixed by the Director of Finance in his award of said notes at private sale. Such notes shall be dated March 8, 1974, shall mature March 7, 1975, and shall be in such denominations as may be requested by the purchaser. Section 5. Such notes shall be signed by the Mayor and Director of Finance and bear the seal of the corporation. They shall be payable in Federal Reserve Funds of the United States of America at the main office of National City Bank, Cleveland, Ohio, and shall express upon their face the purpose for which they are issued and that they are issued pursuant to this ordinance. Section 6. 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 in excess of that specified in Section 4. 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 Retire- ment Fund. 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 the debt is incurred, so that they will not constitute arbitrage bonds under Section 103(d) of the Internal Revenue Code and the regula- tions prescribed under that section. The Director of Finance is authorized and directed to give an appropriate certificate on behalf of the City, for inclusion in the transcript of proceedings, setting forth the facts, estimates and circumstances and reasonable expectations pertaining to said Section 103(d) and regulations thereunder. Section 7. Said notes shall be the full general obligations of the City and the full faith, credit and revenue of said City are hereby pledged for the prompt payment of the same. The par value to be received from 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 the interest thereon, and is hereby pledged for such purpose. Section 8. During the year or years while such notes run there shall be levied on all the taxable property in said City, in addition to all other taxes, a direct tax annually not Iess than that which would have been levied if bonds had been issued therefor without the prior issue of said notes; provided, however, that the amount of such tax shall be reduced to the extent that surplus earnings of the sanitary sewerage system shall be available and appropriated for the payment of interest and principal of such notes or of the bonds anticipated thereby.