92-093 Ordinance - Laserfiche WebLink

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- ? • ?,:: ?. ? - 3 - Section 7. The pr.oceeds from the sale of the Notes, except any premium and accrued interest, shail 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. Sect.ion 8. The par value to be received from the sal.e 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 oiii:- 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 Yiad been issued without the prior issuance of the Notes. The tax shall be witliin the 11.1-mi.ll limitation provided by the Charter of lhe City, shall be and is ordered computed, certified, levied and extended upon the tax dupli- cate and col.lected 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 i.n 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 Notes 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 Notes in such manner and to such extent as may be necessary so that (a) the Notes will not (i) constitute pr.ivate activity 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 interest on the Notes will not be treated as a preference item under Section 57 of the Code. Tlae City further covenants that (a) it will take or cause to be taken such actions that may be required of it for the int.erest on tlie Notes to be and remain excluded from gross income for federal income tax purposes, (b) it wii.l not take or authorize to be taken any actions that would adversely affect that exclusion, and (c) it, or persons acting for it, will, among other acts of compliance, (i) apply the proceeds of the Notes to the governmental purpose of ttie 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 ttiose proceeds and, as applicable, of property financed with such proceeds, a.11 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 Notes is hereby autho- rized (a) to make or effect any election, selection, designation, c}ioice, consent, approval, or waiver on behalf of the City with respect to the Notes as the City is permitted or required to make or give under the federal income