90-057 Ordinance - Laserfiche WebLink

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?. ...r - 3 - ? ? Section 7. The proceeds from the sale of the Notes, except any premium and accrued interest, shall be paid into the proper fund or funds and those proceeds are appropriated and shall be used for the purpose for which the Notes are being issued. Any portion of those proceeds representing premium and accrued interest shall be paid into the Bond Retirement Fund. Section 8. The par value to be received from the sale of the Bonds or of any renewal notes and any excess funds resulting from the issuance of the Not.es shall, to the extent necessary, be used to pay the debt charges on the Notes at maturity and are pledged for that purpose. Section 9. During the year or years in which the Notes are out- standing, there shall be levied on all the taxable property in the City, in addition to all other taxes, ttie same tax that would have been levied if the Bonds had been issued without the prior issuance of the Notes. The tax shall be within the 11.1-mill limitation provided by ttie Charter of the City, shall be and is or.dered computed, certified, levied and extended upon the tax dupli- cate and collected by the same officers, in the same manner, and at the same time that taxes for general purposes for each of those years are certified, levied, extended and collected, and shall be placed before and in preference to all otlier items and for the full amount thereof. The proceeds of the tax levy shall be placed in the Bond Retirement Fund, which is irrevocably pledged for ttie payment of the debt ctiarges on the Notes or the Bonds when and as the same fall due. Section 10. The City covenants that it will use, and will restrict tlie use and iixvestment of, ttie proceeds of the Notes in such manner and to such extent as may be necessary so that (a) the Notes will not (i) constitute private act.ivity bonds, arbitrage bonds or hedge bonds under Section 141, 148 or 149 of the Internal Revenue Code of 1986, as amended (the Code), or (ii) be treated other than as bonds to which Section 103(a) of the Code applies, and (b) the int.erest on the Notes will not be treated as a preference item under Section 57 of the Code. The City further covenants (a) that it will take or cause to be taken such actions that may be required of it for the interest on the Notes to be and remain excluded from gross income for federal income tax purposes, (b) that it will not take or authorize to be taken any actions that would adverse- ly affect that exclusion, and (c) that it, or persons acting for it, will, among other acts of compliance, (i) apply the proceeds of the Notes to the governmental purposes of the borrowing, (ii) restrict the yield on investment property, (iii) make timely and adequate payments to the federal government, (iv) maintain books and records and make calculations and reports, and (v) refrain from certain uses of those proceeds and, as applicable, of property financed with such proceeds, all in such manner and to the extent necessary to assure such exclusion of that interest under the Code. The Director of Finance, as ttie fiscal officer, o.r any other officer of ttie City liavi.ng responsibili.ty for issuaiice of the Notes is hereby autho- rized (a) to make or effect any election, selection, designation, choice, consent, approval, or waiver on behalf of the City with respect to ttie Notes as the City is permitted or required to make or give under the federal income tax laws, for the purpose of assuring, enhancing or protecting favorable tax