Ordinance 2737-03 - Laserfiche WebLink

commence to accrue interest, until repaid, at a fully floating variable per annum rate equal to the Prime Rate. Both principal of and interest on this note are payable in lawful money of the United States of America. Interest on this note shall be paid by electronic funds transfer on the date such interest is due to the Bank. The final payment of all principal of and interest on this note shall be paid on the Maturity Date upon presentation and delivery of this note to the Finance Director of the City, as Note Registrar, for cancellation and surrender. This note is issued pursuant to Ordinance No. -03 of the City (the "Note Ordinance"), passed by the City Council on December 3, 2003, for the purpose of establishing a line of credit with the Bank to provide funds to finance capital expenditures of the City. Capitalized terms used in this note and not otherwise defined shall have the meanings given them in the Note Ordinance. The Outstanding Principal Amount of this note may not exceed $2,000,000, and the Bank shall not permit any Drawing hereunder which would result in the Outstanding Principal Balance exceeding $2,000,000. This note is a revolving obligation, and additional drawings shall be permitted hereunder following the delivery date of this note, so long as the Outstanding Principal Balance does not exceed $2,000,000. The City may prepay all or a portion of the Outstanding Principal Balance at any time without penalty. This note has been designated by the City as a qualified tax-exempt obligation under Section 265(b) of the Internal Revenue Code of 1986, as amended, for investment by financial institutions. The City has irrevocably covenanted with the owner of this note that it will annually include in its budget an amount sufficient to pay the principal of and interest on this note when due or at maturity and levy taxes, if necessary, within and as a part of the tax levy permitted to cities without a vote of the electorate, upon all property subject to taxation, in an amount sufficient, together with all other money legally available for such purpose, to pay the principal of and interest on this note as the same shall become due. The full faith, credit and resources of the City are hereby irrevocably pledged for the annual levy and collection of such taxes and the prompt payment of such principal and interest. This note shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Note Ordinance until the Certificate of Authentication has been manually signed by the Note Registrar. THIS NOTE IS NOT TRANSFERABLE, except to a successor to the business and assets of the Bank, conditioned on such successor assuming all obligations to provide the line of credit evidenced by this note. It is hereby certified that all acts, conditions and things required by the Constitution and statutes of the State of Washington and the Charter and ordinances of the City to exist, to have happened, been done and performed precedent to and in the issuance of this note have happened, -11- P:\CMW\CMW634 03/12/08