Ordinance 3405-14 - Laserfiche WebLink

further covenants that it will comply with any limitations on the use of the projects financed or refinanced with the proceeds of the Bonds (including the Refunded Bonds) by other than state and local governmental users that are necessary, in the opinion of Bond Counsel, to preserve the tax exemption of the interest on the Bonds. (c) Modification of Tax Covenants. The covenants of this section are specified solely to assure the continued exemption from regular income taxation of the interest on the Bonds. To that end, the provisions of this section may be modified or eliminated without any requirement for formal amendment thereof upon receipt of an Opinion of Counsel that such modification or elimination will not adversely affect the tax exemption of interest on any Bonds. (d) No Designation under Section 265(b) of the Code. The Bonds are not "qualified tax exempt obligations" for investment by financial institutions under Section 265(b) of the Code. Section 7.02. Bond Fund and Provision for Tax Levy Payments. The Chief Financial Officer currently maintains a fund to be used for the payment of debt service on all limited tax general obligation bonds, designated as the "Bond Redemption Fund" (the "Bond Fund"). The taxes hereafter levied for the purpose of paying principal of and interest on the Bonds and other funds to be used to pay the Bonds shall be deposited in the Bond Fund no later than the date such funds are required for the payment of principal of and interest on the Bonds. Money in the Bond 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. The City hereby irrevocably covenants and agrees for as long as any of the Bonds are Outstanding and unpaid that each year it will include in its budget and levy an ad valorem tax -98- P 120287 CMVA20287 AMT 10/14/14