Ordinance 2298-98 - Laserfiche WebLink

In order to carry out the advance refunding and defeasance of the Refunded Bonds, the Finance Director is hereby authorized to appoint as escrow agent a bank or trust company qualified by law to perform the duties described herein (the "Escrow Agent"). Any beginning cash balance and the Acquired Obligations shall be irrevocably deposited with the Escrow Agent in an amount sufficient to defease and redeem the Refunded Bonds in accordance with this Section 12 and Section 13 of this ordinance. Any amounts described in subparagraph(a) of this Section 12 that are not provided for in full by such beginning cash balance and the purchase and deposit of the Acquired Obligations described in this section shall be provided for by the irrevocable deposit of the necessary amount out of the proceeds of sale of the Bond or any other money of the City legally available therefor with the Escrow Agent. The proceeds of the Bond remaining in the Refunding Account after acquisition of the Acquired Obligations and provision for the necessary beginning cash balance shall be utilized to pay expenses of the acquisition and safekeeping of the Acquired Obligations and the costs of issuing the Bond. The City may, from time to time, transfer, or cause to be transferred, from the Refunding Account any money not thereafter required for the purposes set forth in subparagraph (a) above, subject to verification in writing by an independent certified public accountant that such transfer will not result in inadequate funds being available to make the required payments therefrom. The City reserves the right to substitute other securities for the Acquired Obligations in the event it may do so pursuant to Section 148 of the Code and applicable regulations thereunder, upon compliance with the conditions set forth in the Escrow Agreement. Section 13. Redemption of Refunded Bonds. The City hereby irrevocably sets aside sufficient funds through the purchase of Acquired Obligations and an initial cash deposit to make the payment specified in subparagraph(a) in Section 12 above. The City hereby irrevocably calls for redemption on July 1, 1998, the Refunded Bonds in accordance with the provisions of Section 7 of Ordinance No. 1433-88. -26- DOTOQ5 DOC 98/04/28