98-34 PROVIDING FOR THE ISSUANCE OF GENERAL OBLIGATION BONDS

Home Browse Search

A. Accrued interest and premium, if any, on the Bonds shall be and is hereby appropriated for the purpose of paying the first interest due on the Bonds and to such end is hereby ordered to be deposited into the "General Obligation Bonds, Series 1998, Bond Fund" (the "Bond Fund"), hereby created, which shall be the fund for the payment of principal of and interest on the Bonds. The Pledged Taxes shall either be deposited into the Bond Fund and used solely and only for paying the principal of and interest on the Bonds or be used to reimburse a fund or account from which advances to the Bond Fund may have been made to pay principal of or interest on the Bonds prior to receipt of Pledged Taxes. Interest income or investment profit earned in the Bond Fund shall be retained in the Bond Fund for payment of the principal of or interest on the Bonds on the interest payment date next after such interest or profit is received or, to the extent lawful and as determined by the Council, transferred to such other fund as may be determined. The City hereby pledges, as equal and ratable security for the Bonds, all present and future proceeds of the Pledged Taxes for the sole benefit of the registered owners of the Bonds, subject to the reserved right of the Council to transfer certain interest income or investment profit earned in the Bond Fund to other funds of the City, as described in the preceding sentence. B. The balance of the proceeds of the Bonds shall be set aside in a separate fund, hereby created, and designated as the "1998 Project Fund" (the "Project Fund"). Money in the Project Fund shall be used to pay costs of the Project and costs and expenses incidental or allocable or related thereto, including all costs of issuance of the Bonds. The Council reserves the right, as it becomes necessary from time to time, to revise the Project, to change priorities, to revise cost allocations and to substitute projects, in order to meet current needs of the City; subject, however, to limitations of the Act and to the tax covenants set forth herein. Section 15. Tax Covenants. The City agrees to comply with all provisions of the Code which, if not complied with by the City, would cause the Bonds not to be Tax-exempt. In furtherance of the foregoing provisions, but without limiting their generality, the City agrees: (a) through its officers, to make such further specific covenants, representations as shall be truthful, and assurances as may be necessary or advisable; (b) to comply with all representations, covenants and assurances contained in certificates or agreements as may be prepared by counsel approving the Bonds; (c) to consult with such counsel and to comply -23-