9603-05 Authorizing the Issuance of Revenue Bonds - Concerning the Construction of Improvements to the Municipal Waterworks - not to exceed $4,710,000

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Notwithstanding anything contained in the foregoing provisions of this Ordinance, the rights and obligations of the City and of the owners of the 2005 Bonds, and the terms and provisions of the 2005 Bonds and this Ordinance, or any supplemental ordinance, may be modified or amended in any respect with the consent of the City and the consent of the owners of all the 2005 Bonds then outstanding. SECTION 23. Amendments Without Consent of Bondholders. The Council may, from time to time and at any time, and without notice to or consent of the owners of the 2005 Bonds, adopt such ordinances supplemental hereto as shall not be inconsistent with the terms and provisions hereof (which supplemental ordinances shall thereafter form a part hereof): (a) To cure any ambiguity or formal defect or omission in this Ordinance or in any supplemental ordinance; (b) To grant to or confer upon the owners of the 2005 Bonds any additional rights, remedies, powers, authority or security that may lawfully be granted to or conferred upon the owners of the 2005 Bonds; (c) To procure a rating on the 2005 Bonds from a nationally recognized securities rating agency designated in such supplemental ordinance, if such supplemental ordinance will not adversely affect the owners of the 2005 Bonds; (d) To obtain or maintain bond insurance with respect to the 2005 Bonds; (e) To provide for the refunding or advance refunding of the 2005 Bonds; (f) To provide for the issuance of additional bonds as provided in Section 20 hereof; or (g) To make any other change which, in the determination of the Council in its sole discretion, is not to the prejudice of the owners of the 2005 Bonds. SECTION 24. Tax Matters. In order to preserve the exclusion of interest on the 2005 Bonds from gross income for federal income tax purposes and as an inducement to purchasers of the 2005 Bonds, the City represents, covenants and agrees that: (a) No person or entity, other than the City or another state or local governmental City, will use proceeds of the 2005 Bonds or property financed by the 2005 Bond proceeds other than as a member of the general public. No person or entity other than the City or another state or local governmental City will own property financed by 2005 Bond proceeds or will have actual or beneficial use of such property pursuant to a lease, a management or incentive payment contract, an arrangement such as take-or-pay or output contract, or any other type of arrangement that differentiates that person's or entity's use of such property from the use by the public at large. (b) No 2005 Bond proceeds will be loaned to any entity or person other than a state or local governmental City. No 2005 Bond proceeds will be transferred, directly or -26-