12-08-08 Council Meeting Agenda & Packet

Home Browse Search

The Warrants authorized herein shall bear interest prior to maturity at a rate or rates per annum not to exceed a maximum of seven percent (7.0%). The exact rate or rates of interest are to be determined under the terms of a Warrant Purchase Agreement, as hereinafter defined. Warrants not timely paid will bear interest at a rate or rates after maturity as set forth in the Warrant Purchase Agreement. Interest shall be calculated on the basis of a 360-day year comprised of twelve 30-day months. It is understood that principal shall not be payable and interest shall not accrue on any Warrant or Warrants issued pursuant to this Ordinance until such principal amount has been advanced pursuant to requests made by the City to the Purchaser. In the event that the total principal amount of the Warrants is not advanced to the City, the principal amount of such Warrant shall be reduced to effect such reduction. The maximum principal amount of the Warrants as set forth herein shall be reduced as necessary to comply with the Internal Revenue Code of 1986, as amended (the "Code"). Section III. With respect to each Fund and each Warrant maturity date, the appropriate officers of the City are authorized to deliver a principal amount of Warrants up to or less than the maximum amount established for any such Fund or maturity date in Section II hereof in order to comply with all applicable laws. The Warrants shall be subject to redemption as provided in an Issuer's Certificate to be executed by the Mayor of the City (the "Mayor") and the City Controller. All Warrants will be delivered at the time of payment with respect to any Fund or otherwise as appropriate and in accordance with the terms of the new Warrant Purchase Agreement. Section IV. The principal of and interest on the Warrants, together with all necessary costs incurred in connection with the issuance and sale of the Warrants, shall be payable from tax revenues to be received in the respective Fund upon which such Warrant is issued. There is hereby appropriated and pledged to the payment of all Warrants issued with respect to each Fund, including interest and all necessary costs incurred in connection with the issuance and sale of the Warrants, a sufficient amount of the tax revenues, levied in 2007, and actually received in or for the year 2008, for such Fund and in anticipation of which the Warrants have been issued, for the punctual payment of the principal of and interest on the Warrants evidencing such temporary loans, together with such issuance costs, if any. Section V. The City Controller, on behalf of the City, is authorized to sell the Warrants via negotiated sale at a price not less than the par value thereof to a purchaser or purchasers (the "Purchaser") in the denomination of One Hundred Thousand Dollars ($100,000), and any integral multiple of One Dollar ($1.00) in excess of One Hundred Thousand dollars ($100,000) of single maturities. The Warrants shall be~ sold to the Purchaser pursuant to the purchase agreement (the "Warrant Purchase Agreement") between the City and the Purchaser, hereby authorized to be entered into and executed by the City Controller, on behalf of the City, subsequent to the date of the adoption of this Ordinance in accordance with the terms and conditions of this Ordinance, and with such Warrant Purchase Agreement to set forth the definitive terms and conditions of such sale, including BDDBOI 5475853v1 ~ - 3 -