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,. , ,. . 7a - 2 - cw Section 5, 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 pr3.vate sale at an interest rate not exceeding that set forth in Section 4 and for not less than par and accrued interest. The proceeds from such sale, except any premium and accrued interest, sh.all 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 Retirement Fund. The City covenants that the proceeds of said notes shall not be invested or used in such manner that apy of said notes would be "arbitrage bonds" for purposes of Section 103 (d)(1) of the Internal Revenue Code of 1954. Section 6. Said notes shall be the full general obligation of the City and the full faith, credit and revenue of such City are hereby pledged for the prompt payment of the sameo The par value to be received fram 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 interest thereon, and are hereby pledged for such purpose. Section 7. During the year or years such notes run there shall be levied on al1 the taxable property in the City of North Olmsted in addition to all other taxes, a direct tax a.nnually not less than that which would have been levied if bonds had been issued without the prior issue of such notes; provided., that the amount of such tax sha1.1 be redueed to the extent that surplus earnings of the sewerage system shall be available.and appropriated for the payment of interest and prineipal of such notes or of the bonds anticipated thereby. Said tax shall be and is hereby ordered computed, certified, levied and ex- tended 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 ea,ch of said yeaxs are certified, extended and collected. Said tax shall be placed before and in preference to all other items and for the full amount thereof. The funds derived from said tax levies hereby required sha11 be placed in a separate and distinct fund, which, together with the interest collected on the same, shall be irrevocably pledged for the payment of the principal and interest of said note or the bo¢zds in anticipation of which it is-issued, when and as the same fall due. Section 8. It is hereby determined and recited that all acts, conditions and things necessary to be done precedent to and in the issuing of said notes in order to make the same legal., valid and binding obligations of the City of North 0lmsted have happened, been done and performed in regular and due form as required by law and that no limitation of indebtedness or taxation, either statutory or con- stitutional wil.l have been exceeded in the iss.uance of said notes. Section 9. The Clerk of Cauncil is hereby authorized and directed to forwaxd a certified copy of this ordinance to the County Auditor of Cuyahoga County. Section 10. This ordinance is hereby declared to be an emergency measure necessary for the preservation of the public peace, welfare and safety of this City, and for the further reason that the immediate issuance and sale of the notes herein authorized is necessary to provide funds with which to retire a presently outstanding note and thereby protect the credit of this City; wherefore, this ordinance shall take effect and be in force immediately upon its pa,ssage and approval by the Mayor. I Passed: ??'??, ?;?.-?, % , 1970 Attest ; Nora T. Hi11, Clerk of Council Approved; I :7.. ? v J ? 41ph E. Christman, bSayor ?.