9937-09 Concerning the Construction of Improvements to the Municipal Waterworks of the City

Home Browse Search

aside such monies, which may be paid from investment income on funds and accounts notwithstanding anything else to the contrary herein, in trust for such purposes. (d) The City will file an information report on Form 8038-G with the Internal Revenue Service as required by Section 149 of the Code. (e) The City will not make any investment or do any other act or thing during the period that any 2009 Bond is outstanding hereunder which would cause any 2009 Bond to be an "arbitrage bond" within the meaning of Section 148 of the Code and the regulations thereunder as applicable to the 2009 Bonds. Notwithstanding any other provisions of this Ordinance, the foregoing covenants and authorizations (the "Tax Sections") which are designed to preserve the exclusion of interest on the 2009 Bonds from gross income under federal law (the "Tax Exemption") need not be complied with to the extent the City receives an opinion of nationally recognized bond counsel that compliance with such Tax Section is unnecessary to preserve the Tax Exemption. SECTION 25. Issuance of BANS; Other Actions. (a) The City, having satisfied all the statutory requirements for the issuance of the 2009 Bonds, has the authority to elect to issue a bond anticipation note or notes, repayable from the proceeds received from the sale of the 2009 Bonds (defined herein as the "BANs"). This Council hereby authorizes the issuance and sale of the BANs pursuant to I.C. §5-1-14-5 in one or more series, ranking on a parity with each other, in original aggregate principal amount not to exceed Six Million Two Hundred Thousand Dollars ($6,200,000) to provide interim financing until permanent financing becomes available and to pay for costs of issuing the BANS, and the BANS also may fund capitalized interest thereon. The designation of the BANs shall be "City of South Bend, Indiana Waterworks Bond Anticipation Note of 20_". The BANs shall be issued in fully registered form in denominations of One Thousand Dollars ($1,000) or in denominations of One Dollar ($1.00) if the BANs are sold to the Indiana Finance Authority, or integral multiples thereof, shall be originally dated the date of delivery, shall be numbered consecutively from 1 upward, shall mature not more than five (5) years from the date of issuance, may be renewed or extended from time to time, over a period not exceeding five (5) years from the date of the original issuance of the BANS, in accord with I.C. §5-1.1-5, shall be prepayable on seven (7) days' notice in whole or in part in any authorized denomination without premium or penalty, shall bear interest at a rate not exceeding seven percent (7%) per annum, and shall be sold at a discount not exceeding ninety-nine percent (99%) of the principal amount thereof. The BANs shall be issued pursuant to IC 4-4-11 and IC 13-18-21 if sold to the Indiana Finance Authority. Interest on the BANs shall be payable at maturity. The BANs shall be issued pursuant to IC 13-18-21 if sold to the Indiana Finance Authority, pursuant to IC 5-1.5-8-6.1 if sold to the Indiana Bond Bank or pursuant IC 5-1-14-5 if sold to a financial institution or any other purchaser. If the BANs are sold to the Indiana Finance Authority through the SRF Program, the Financial Assistance Agreement shall serve as the Bond Anticipation Note Agreement. The Executive and the Fiscal Officer are hereby authorized and directed to execute a Bond Anticipation Note Agreement or Financial Assistance Agreement (and any amendments made from time to time) in such form as they shall approve acting upon the advice of counsel. It shall not be necessary for the City to repeat the procedures for the issuance of the 2009 Bonds as -32-