Autthorizing the acquistion, construction, and installation of certain improvements and extensions to sewage works, the issuance and sale of additional revenue bonds

Home Browse Search

including the right to have a receiver appointed to administer said Sewage Works in the event of default in the payment or the principal of or interest on any of the bonds herein authorized or in the event of default in respect to any of the provisions of this Ordinance or the Act. The Common Council reserves the right, however, to amend this Ordinance from time to time to preserve the Tax Exemption described in Section 19 hereof without the approval of any owner of the bonds so long as the Common Council certifies that such amendment does not violate subsection (i) of Section 17; provided, however, that if the 1998 Bonds are sold to the Bond Bank, the City shall obtain the prior written consent of the State. Section 1 Permitted Actions Relating to Preservation of Exclusion of Interest from Federal Gross Income. (a) The Controller is hereby authorized to invest moneys pursuant to the provisions of this Ordinance at a restricted yield (subject to applicable requirements of federal law to insure that any such investment is acquired for fair mazket value) to the extent necessary or advisable to preserve the exclusion from gross income of interest on the 1998 Bonds, or the tax exempt status of interest on the 1998 Bonds, under federal law. (b) The Controller shall keep full and accurate records of investment earnings and income from moneys held in the funds and accounts created or referenced herein. In order to comply with the provisions of this Ordinance, the Controller is hereby authorized and directed to employ consultants or attorneys from time to time to advise the City as to requirements of federal law to preserve the tax exclusion or exemption. Section 19. Tax Covenants. In order to preserve the exclusion of interest on the 1998 Bonds from gross income for federal income tax purposes and as an inducement to purchasers of the 1998 Bonds, the City represents, covenants and agrees that: (a) No person or entity, other than the City or another state or local governmental unit, will use proceeds of the 1998 Bonds or property financed by the 1998 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 unit will own property financed by the 1998 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 -25- ::ODMA\PCDOCS\SBDOCS 1 U 49473