92-097 Ordinance - Laserfiche WebLink

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- 3 - those proceeds are appropriated and shall be used for the purpose for which the Note is 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 Note shall, to the extent necessary, be used to pay the debt charges on the Note at maturity and are pledged for that purpose. Section 9. During the year or years in which the Note is out- standing, there shall be levied on all the taxable property in the City, in addition to all other taxes, the same tax that would have been levied if the Bonds had been issued without the prior issuance of the Note. The tax shall be within the 11.1-mill li.mitation provided by the Charter of the Ci.ty, 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 certi- fied, levied, extended and collect.ed, 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 irrevocably pledged for the payment of the debt charges on the Note or the Bonds when and as the same fall due. Section 10. The City covenants that it will use, and will restrict the use and investment of, the proceeds of the Note in such manner and to such extent as may be necessary so that (a) the Note will not (i) constitute a private activity bond, arbitrage bond or hedge bond under Section 141, 148 or 149 of the Internal Revenue Code of 1986, as amended (the Code), or (ii) be treated other than as a bond to which Section 103(a) of the Code applies, and (b) the interest on the Note will not be treated as a preference item 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 Note to be and remain excluded from gross income for federal income tax purposes, (b) it will not take or authorize to be taken any actions that would adversely affect that exclusion, and (c) it, or persons acting f.or it, will, among other acts of complianc,e, (i) apply the proceeds of the Note to the governmental purpose of tlie 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 the fiscal officer, or any other officer of the City having responsibility for issuance of the Note 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 the Note as ttie City is permitted or required to make or give under the federal income tax laws, including, without limitation, any of the elections provided for in