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Ordinance 2009-323
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Ordinance 2009-323
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Last modified
7/20/2010 10:36:27 AM
Creation date
11/20/2009 10:08:53 AM
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CityClerk-Ordinances
Ordinance Number
2009-323
Date (mm/dd/yyyy)
06/05/2009
Description
Authorizing a Loan of $20,000,000 to Finance Cost of Capital Expenditures
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<br />months incur a binding obligation to a third-party in an amount at least equal to 5% of the net sale <br /> <br /> <br />proceeds of the Note ($1,000,000.00) relating to the Project. The City expects that work on the <br /> <br /> <br />Project will commence and will proceed with due diligence to completion and that the allocation of <br /> <br /> <br />net sale proceeds of the Note to the Project will proceed with due diligence. <br /> <br />Proceeds ofthe Note may be invested at an unrestricted yield for a period not to exceed three <br /> <br />(3) years from the date of this Certificate. Investment proceeds of the Note may also be invested <br /> <br />at an unrestricted yield for a period ending on the later of the date that is three years from the date <br /> <br />hereof or the date that is one year after original receipt of such earnings. <br /> <br />Any proceeds of the Note which cannot be invested at an unrestricted yield pursuant to this <br /> <br />Section 10 shall be invested, if at all, in obligations that bear a yield not higher than the yield on the <br /> <br />Note plus one-eighth of one percentage point. <br /> <br />11. The revenues that are expected to be used to pay debt service on the Note <br /> <br />are referred to herein as the "Sinking Fund Proceeds." <br /> <br />The Sinking Fund Proceeds constitute a fund that will be used primarily to achieve a proper <br /> <br />matching of revenues and debt service on the Note within each Bond Year. The Sinking Fund <br /> <br />Proceeds will be depleted at least once each Bond Year except for a reasonable carryover amount <br /> <br />which will not exceed the greater of (A) the earnings on the Sinking Fund Proceeds for the <br /> <br />immediately preceding Bond Year or (B) one-twelfth of the debt service on the Note for the <br /> <br />immediately preceding Bond Year. <br /> <br />The Sinking Fund Proceeds may be invested without regard to any yield restrictions for a <br /> <br />period ending not later than thirteen (13) months from the date of receipt of such amounts. <br /> <br />Any Sinking Fund Proceeds which cannot be invested at an unrestricted Yield pursuant to this <br /> <br />Section 11 shall be invested, if at all, in obligations that bear a yield not higher than the yield on the <br /> <br />3 <br />
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