70-134 Ordinance - Laserfiche WebLink

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'1 C TTY ~ NORTH OLI~TED ORDINANCE NO. O - ~~~ ~, a AN ORDINANCE TO PROVIDE FOR THE ISSUANCE OF NOTES IN AI~TTICIAATION OF THE ISSUANCE QF BONDS FOR TIE PURPOSE OF PURCHASING SIX NEW BUSES FOR USE IN THE OPERATTfl~i OF THE NORTH OTI~TED 2~TN,I- CIPAL CQACH LINE, AND DECLARING AN E1~tOENCY. WHEREpiS, this Council by Ordinance No. 69-113 authorized the issuance of a note in the amount of $187,100 for the purpose of purchasing six new buses for use in the operation of the Ncr th Olmsted Municipal Coach Line, which note natures on September 15, 1970; and WHEREAS, Council has determined to issue new notes, the proceeds of which wi11 be used to retire the outstanding note at its maturity; and WHEREAS, the Director of Finance, as fiscal officer of the City, has here- tofore certified the estimated life of the property and the maximum maturity of the bonds and notes proposed to be issued; NOW, TORE, BE IT ORDAINED BY THE COUNCIL C~' THE CITY Ode' NORTH OLNBTED, CUYAHOGA COUNtY, OHIO: Section 1. That it is hereby declared necessary to issue bonds of the City of North O1.msted in the principal sum of $187,1 for the purpose of pureb~asing six new buses for use in the operation of the North Olmsted l~.inicipal Coach Line. Section 2. That said bonds shall be dated approximately September 1, 1971, shall bear interest at the estimated rate of six per centum (E~} per annum, payable semi-annually, until the principal sum is paid, and shall mature in five substantially equal installments after their issuance. Section 3. That for the purpose of raising money in anticipation of the issuance of the aforesaid bonds for the above described improvement, and to retire the aforesaid outstanding note, it is hereby declared necessary to issue and there shall be issued notes of said City in the principal amount of 1$7,100. Section ~+. That such anticipatory notes in the amount aforesaid shall. bear interest at such rate not exceeding seven per centum per annum as may be fixed by the Director of Finance in his award of said notes at private sale, such in- terest to 'be payable at maturity, and may bear a penalty rate of interest of eight per centum if default is made in payment of the notes at matuxhtty. Said notes shall be dated September 15, 1970 and shall mature on September 15, 1971. Said notes sha11 be signed by the Mayor and by the Director of Fiance, sha11 beax the corporate seal of the City, shall be payable at the office of Tlae Ka- tional City Bank of Cleveland, Cleveland, Ohio, and shall express on their faces the purpose for which they are issued and that they are issued purstaant to this ordinance. Said notes may be payable in Federal Reserve funds of the United States of America if requested by the purchaser. Section 5. Sub~eet to the refection of such notes by the Director of Finance for investment in the Bond Retirement Fund, such notes shalt be sold by the Di- rector of Finance at private sale at an interest rate not exceed that authorized by Section 4 of this ordinance and for not less than par and accrued istarest. The proceeds from such sale, except any premium and accrued. interest, shall be paid into the proper fund and used for the purpose aforesaid and for no other purpose, Any premium and accrued interest sha11 be deposited in the Bond Retire- ment Fund. The City covenants that the proceeds of said notes shall not be in- veated or used in such manner that the notes would be an "arbitrage band" for the purpose of Section 103 (d}(1} of the Internal Revemxe Code of 1954.