Ordinance 1236-86 - Laserfiche WebLink

of the Bond Registrar ' s powers and duties under this ordinance and Ordinance No . 980-83 of the City. The Bond Registrar shall be responsible for its representa- tions contained in the Registrar ' s Certificate of Authentication on the Bonds . The Bond Registrar may become the owner of Bonds with the same rights it would have if it were not the Bond Registrar, and to the extent permitted by law, may act as depository for and permit any of its officers or directors to act as members of , or in any other capacity with respect to , any committee formed to protect the rights of Bond owners . Section 4 . The Bonds shall be negotiable instruments to the extent provided by RCW 62A. 8-102 and 62A. 8-105 . Section 5 . The City covenants that it will neither make nor permit the use of proceeds of the Bonds or other funds of the City at any time during the term of the Bonds which will cause the Bonds to be arbitrage bonds within the meaning of Section 103 (c) of the United States Internal Revenue Code of 1954 , as amended, and applicable regulations promulgated thereunder . In addition, if future federal laws or regulations require the payment of any federal tax or rebate or the observing of any other requirement to maintain the exemption from federal income taxation of the interest on the Bonds, the City shall make any such payment and observe any such requirement . If the interest on the Bonds shall become subject to federal taxation because the City does not spend Bond proceeds or the proceeds of invest- ments thereof in the amounts and within periods of time required by any future federal law or regulations or for any other reason due to the enactment of future federal law or the promulgation of regulations thereunder, or if the City' s bond counsel gives an opinion to the City at that time that the interest on the Bonds may or will be taxable either from the date of issuance or - 5 -