Ordinance 2002-155 - Laserfiche WebLink

Home Browse Search

ARTICLE III COVENANTS, FUNDS AND APPLICATION THEREOF SECTION 3.1 2002 BOND NOT TO BE INDEBTEDNESS OF THE CITY. The 2002 Bond shall not be or constitute an indebtedness of the City within the meaning of any constitutional, statutory or other limitation of indebtedness, but shall be secured solely by and payable from the Pledged Revenues. No Bondholder shall ever have the right to compel the exercise of the ad valorem taxing power of the City, or taxation in any form of any real property therein, to pay said 2002 Bond or the interest thereon. The pledge of the Pledged Revenues will not constitute a lien upon any property of the City. SECTION 3.2 2002 BOND SECURED BY PLEDGE OF PLEDGED REVENUES. From and after the issuance of the 2002 Bond, and continuing until the payment of the 2002 Bond as to principal and interest, the Pledged Revenues shall continue to be pledged for the prompt payment of principal of and interest on said 2002 Bond. SECTION 3.3 COVENANTS OF THE CITY. As long as any of the principal of or interest on the 2002 Bond shall be outstanding and unpaid, or until there shall have been set apart in the Debt Service Fund in accordance with Section 3.6 hereof a sum sufficient to pay, when due, the entire principal of the 2002 Bond remaining unpaid, together with interest accrued and to accrue thereon, the City covenants with the Bondholders as follows: G) Tax Covenants Relating to the Internal Revenue Code of 1986, as amended. (10) In order to maintain the exclusion from gross income for purposes of federal income taxation of interest on the 2002 Bond, the City covenants to comply with each requirement of the Code. In furtherance of the covenant contained in the preceding sentence, the City agrees to continually comply with the provisions of the Tax Certificate, as such certificate may be amended from time to time, as a source of guidance for achieving compliance with the Code. (11) The City covenants and agrees with the Bondholders that the City shall not take any action or omit to take any action, which action or omission, if reasonably expected on the date of initial issuance and delivery of the 2002 Bond, would cause the 2002 Bond to be a "private activity bond" or "arbitrage bond" within the meaning of Sections 141(a) and 148(a), respectively, of the Code. (12) The City shall make any and all payments required to be made to the United States Department of the Treasury in connection with the 2002 Bond pursuant to Section 148(f) of the Code. 14 02002- $3 Million Bond Golden Shores Stormwater Utility