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4 <br /> set aside such monies, which may be paid from investment income on funds and accounts <br /> notwithstanding anything else to the contrary herein, in trust for such purposes. <br /> (d) The City will file an information report on Form 8038-G with the Internal <br /> Revenue Service as required by Section 149 of the Code. <br /> (e) The City will not make any investment or do any other act or thing during <br /> the period that any 2012 Bond is outstanding hereunder which would cause any 2012 Bond to be <br /> an "arbitrage bond" within the meaning of Section 148 of the Code and the regulations <br /> thereunder as applicable to the 2012B Bonds. <br /> Notwithstanding any other provisions of this Ordinance, the foregoing covenants and <br /> authorizations (the "Tax Sections") which are designed to preserve the exclusion of interest on <br /> the 2012B Bonds from gross income under federal law (the "Tax Exemption") need not be <br /> complied with to the extent the City receives an opinion of nationally recognized bond counsel <br /> that compliance with such Tax Section is unnecessary to preserve the Tax Exemption. <br /> SECTION 25. Issuance of BANs; Other Actions. <br /> (a) The City, having satisfied all the statutory requirements for the issuance of <br /> the 2012B Bonds, has the authority to elect to issue a bond anticipation note or notes, repayable <br /> from the proceeds received from the sale of the 2012B Bonds (defined herein as the "BANs"). <br /> This Council hereby authorizes the issuance and sale of the BANs pursuant to I.C. §5-1-14-5 in <br /> one or more series, ranking on a parity with each other, in original aggregate principal amount <br /> not to exceed Four Million Two Hundred Thousand Dollars ($4,200,000) to provide interim <br /> financing until permanent financing becomes available and to pay for costs of issuing the BANs, <br /> and the BANs also may fund capitalized interest thereon. The designation of the BANs shall be <br /> "City of South Bend, Indiana Waterworks Bond Anticipation Note of 20_". The BANs shall be <br /> issued in fully registered form in denominations of Five Thousand Dollars ($5,000), or integral <br /> multiples thereof, shall be originally dated the date of delivery, shall be numbered consecutively <br /> from 1 upward, shall mature not more than five (5) years from the date of issuance, may be <br /> renewed or extended from time to time, over a period not exceeding five (5) years from the date <br /> of the original issuance of the BANs, in accord with I.C. §5-1.1-5, shall be prepayable on seven <br /> (7) days' notice in whole or in part in any authorized denomination without premium or penalty, <br /> shall bear interest at a rate not exceeding eight percent (8%) per annum, and shall be sold at a <br /> discount not exceeding ninety-nine percent(99%) of the principal amount thereof. Interest on the <br /> BANs shall be payable at maturity. It shall not be necessary for the City to repeat the procedures <br /> for the issuance of the 2012B Bonds as the procedures followed before the issuance of the BANs <br /> are for all purposes sufficient to authorize the issuance of the 2012B Bonds and to use proceeds <br /> thereof to repay the BANs. <br /> The principal of the BANs herein authorized is payable solely from proceeds received <br /> from the sale of the 2012B Bonds, and the interest thereon may be paid from such proceeds or <br /> from the Net Revenues or a combination thereof, and the proceeds received by the City from the <br /> sale of the 2012B Bonds and such Net Revenues are hereby irrevocably pledged to the payment <br /> of the principal of and interest on the BANs. The Executive is hereby authorized to determine <br /> the form of the BANs and to execute the BANs, the Fiscal Officer is hereby authorized to have <br /> -28 - <br />