Ordinance 1504-88 - Laserfiche WebLink

SECTION 10. Tax Covenants. The City hereby covenants that it will not make any use of the proceeds of sale of the Bonds or any other funds of the City which may be deemed to be proceeds of such Bonds pursuant to Section 148 of the Internal Revenue Code of 1986 and the applicable regulations thereunder which would cause the Bonds to be "arbitrage bonds" within the meaning of said section and said regulations. The City will comply with the requirements of Section 148 of the Internal Revenue Code of 1986 and the applicable regulations thereunder throughout the term of the Bonds. The City hereby covenants that throughout the term of the Bonds it will not take any action or enter into any agreement that will cause the proceeds of the sale of the Bonds to be used in a manner that would cause any Bond to be classified as a "private activities bond" with the meaning of Section 141 of the Internal Revenue Code and the applicable regulations thereunder. Specifi- cally, unless the City has received an opinion of nationally recognized bond counsel approving a specific action or agreement, the City will not permit entities other thangovernmental units to lige in the aggregate more than 10 percent of the Projects on a basis other than as a member of the general public unless payments made by such users with respect to such uses do not exceed in the aggregate 10 percent of the principal and interest payments on the Bonds in each Bond Year and over the term of the Bonds. SECTION 11 . Mutilated, Lost or Destroyed Bonds. If any Bond shall become mutilated, the Bond Registrar shall authenticate and deliver a new Bond of like series, amount, date, interest rate and tenor in exchange and substitution for the Bond so mutilated, upon the owner' s paying the expenses and charges of the City and the Bond Registrar in connection therewith and upon surrender to the City or the Bond Registrar of the Bond so mutilated. Every -14- KR258 88/07/06