92-122 Ordinance - Laserfiche WebLink

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sufficient, together with any uninvested cash in the Escrow Fund but without further investment or reinvestment, for the payment of (i) principal of and interest when due on the Original Bonds on each June 1 and December 1 from the first such date following the date of issuance of the Bonds through December 1, 1997 and (ii) the principal of and redemption premium on ali of the then outstanding Original Bonds maturing on and after December 1, 1998 upon their redemption on December 1, 1997, as provided in the Escrow Agreement. The Escrow Agent is hereby authorized to file, on behalf of the City, subscriptions for the purchase and issuance of U.S. Treasury Securities - State and Local Government Series. Section 11. The proceeds from the sale of the Bonds (except any premium and accrued interest and any proceeds to be used to pay the costs of issuance of the Bonds) shall be paid into the Escrow Fund as provided in Section 10 and the proceeds to be used to pay the costs of issuance of the Bonds shall be paid into the proper fund or funds. The proceeds from the sale of the Bonds (except any premium and accrued interest) are appropriated and shall be used for the purpose for which the Bonds are being issued. Any portion of those proceeds representing premium and accrued interest shall be paid into the Bond Retirement Fund. Section 12. There shall be levied on all the taxable property in the City, in addition to all other taxes, a direct tax annually during the period the Bonds are outstanding in an amount sufficient to pay the debt charges on the Bonds when due, which tax shall not be less than the interest and sinking fund tax required by Section 11 of Article XII of the Ohio Constitution. The tax shall be within the 11.1-mill limitation provided by the Charter of the City, shall be and is ordered computed, certified, levied and extended upon the tax duplicate 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 other items and for the full amount thereof. The proceeds of the tax levy shall be placed in the Bond Retirement Fund, which is irrevo- cably pledged for the payment of the debt charges on the Bonds when and as the same fall due. In each year to the extent the income from the City's recreation facilities or from the levy of a tax for municipal recreational purposes pursuant to Article VIII, Section 8(d) of the Charter of the City is available for the payment of debt charges on the Bonds and is appropriated for that purpose, the amount of the tax shall be reduced by the amount of the income so available and appropriated. Section 13. The City covenants that it will use, and will restrict the use and investment of, the proceeds of the Bonds in such manner and to such extent as may be necessary so that (a) the Bonds will not (i) constitute private activity bonds, arbitrage bonds or hedge bonds under Sections 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 interest thereon will not be treated as an item of tax preference under Section 57 of the Code. The City further covenants that (a) it will take or cause to be taken such actions that may be required of it for the interest on the Bonds to be and to remain excluded from gross income for federal income tax purposes, (b) - 8 -