Ordinance 2562-01 - Laserfiche WebLink

The Bank shall tender the Notes to the Note Registrar for final payment and cancellation on the Maturity Date. The Notes shall not be transferable. Section 7. Prepayment. The City may prepay all or a portion of the Outstanding Principal Balance of either Note to the Bank on any date without penalty. All payments received by the Bank shall be credited to the account of the City on the date received. Section 8. Note Fund. There is hereby authorized and directed to be created in the office of the Finance Director a special fund to be drawn upon for the purpose of paying the principal of and interest on the Notes to be known as the "Limited Tax General Obligation Note Redemption Fund, 2002" (the "Note Fund"). The Note Fund shall be drawn upon for the sole purpose of paying the principal of and interest on the Notes. The taxes hereafter levied for the purpose of paying principal of and interest on the Notes and other funds to be used to pay the Notes shall be deposited in the Note Fund no later than the date such funds are required for the payment of principal of and interest on the Notes. Money in the Note Fund not needed to pay the interest or principal next coming due may temporarily be deposited in such institutions or invested in such obligations as may be lawful for the investment of City funds. Section 9. Pledge of Taxation and Credit. The City hereby irrevocably covenants for as long as the Notes is outstanding and unpaid that each year it will include in its budget and levy an ad valorem tax, within and as part of the tax levy permitted to cities without of vote of the people, upon all the property within the City subject to taxation in an amount that will be sufficient to pay the principal of and interest on the Notes as the same shall become due. All of such taxes so collected and any other money to be used for such purposes shall be paid into the Note Fund. -6- P\CMW\CMW54B 01/11/20