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2013/01/23 Council Agenda Packet
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2013/01/23 Council Agenda Packet
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Council Agenda Packet
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1/23/2013
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3 <br /> The words "historical net revenue" or "net revenue" as used in this subsection(d) shall <br /> mean the Revenue or any part or parts thereof less the normal expenses of maintenance and <br /> operation of the System or any part or parts thereof,but before depreciation. <br /> Such "historical net revenue" or "net revenue" shall be adjusted to reflect the rates and <br /> charges effective on the date of such certificate if there has been any change in such rates and <br /> charges during or after such 12-consecutive-month period. <br /> (e) Junior Liens. Nothing herein contained shall prevent the City from issuing <br /> revenue bonds or other obligations that are a charge upon the Revenue of the System junior or <br /> inferior to the payments required by this ordinance to be made out of such Revenue into the <br /> Revenue Bond Fund and accounts therein to pay and secure the payment of any Outstanding <br /> Parity Bonds. <br /> (f) Refunding to avoid default. Nothing herein contained shall prevent the City <br /> from issuing revenue bonds to refund maturing Parity Bonds for the payment of which money is <br /> not otherwise available. <br /> Section 10. Tax Covenants. The City covenants that it will not take or permit to be <br /> taken on its behalf any action that would adversely affect the exemption from federal income <br /> taxation of the interest on the Bonds and will take or require to be taken such acts as may <br /> reasonably be within its ability and as may from time to time be required under applicable law to <br /> continue the exemption from federal income taxation of the interest on the Bonds. <br /> (a) Arbitrage Covenant. Without limiting the generality of the foregoing, the City <br /> covenants that it will not take any action or fail to take any action with respect to the proceeds of <br /> sale of the Bonds or any other funds of the City which may be deemed to be proceeds of the <br /> Bonds pursuant to Section 148 of the Code and the regulations promulgated thereunder which, if <br /> such use had been reasonably expected on the dates of delivery of the Bonds to the initial <br /> -44- P120287_CNNN20287_9RC 01/02/13 <br /> 51 <br />
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