Ordinance 2298-98 - Laserfiche WebLink

foreclosure actions pursuant to RCW Chapter 35.50, as amended, or its successor statute, if any, against the property owners whose Assessments are delinquent. Section 16. Tax Covenants; Arbitrage Rebate. The City will not make any use of the proceeds of the Bond or any other money or obligations held under this ordinance for any purpose, nor shall the City take any other action, that would cause the Bond to be (i) an "arbitrage bond" within the meaning of Section 148 of the Code and the applicable regulations thereunder, or (ii) a "private activity bond" under Section 141 of the Code and the applicable regulations thereunder. The City hereby designates the Bond as a "qualified tax-exempt obligation" under Section 265(b) of the Code. The City does not expect to issue more than $10,000,000 in qualified tax-exempt obligations during calendar year 1998. The City covenants and agrees to pay the Rebate Amount, if any, to the United States of America at the times and in the amounts necessary to meet the requirements of the Code to maintain the federal income tax exemption for interest payments on the Bond, in accordance with the Arbitrage and Tax Certification. Section 17. Adequacy of Revenues. The Council hereby declares that in fixing the amounts to be paid into the Revenue Bond Fund as hereinbefore provided it has exercised due regard for the Costs of Maintenance and Operation and has not obligated the City to set aside and pay into the Revenue Bond Fund a greater amount of money in the Revenue Fund than in its judgment will be available over and above such Costs of Maintenance and Operation. Section 18. Issuance of Future Parity Bonds. The City hereby further covenants and agrees with the owner and holder of the Bond for as long as the same remains outstanding that the City will not issue any bonds or other obligations having a greater or equal priority of lien upon the Revenue of the System to pay and secure the payment of the principal of and interest on such bonds or other obligations than the lien created upon the Revenue of the System to pay and secure the payment of the principal of and interest on the Bond, except as follows: -33- DOTOQ5 DOC 98/04/28