Authorizing the Issuance of Revenue Bonds re: improvements to the Waterworks, not to exceed Twenty-Two Million Five hundred thousand dollars (22,500,000); including the issuance of notes in anticipation of Bonds.

Home Browse Search

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 a»y supplemental ordinance; (b) To grant to or confer upon the owners of the 1997 Bonds any additional rights, remedies, powers, authority or security that may lawfully be granted to or conferred upon the owners of the 1997 Bonds; (c) To procure a rating on the 1997 Bonds from a nationally recognized securities rating agency designated in such supplemental ordinance, if such supplemental ordinance wilt not adversely affect the owners of the 1997 Bonds; (d) To obtain or maintain bond insurance with respect to the 1997 Bonds; (e) To provide for the refunding or advance refunding of the 1997 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 1997 Bonds. SECTION 24. TaxMatters. In order to preserve the exclusion of interest on the 1997 Bonds from gross income for federal income tax purposes and as an inducement to purchasers of the 1997 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 1997 Bonds or property financed by the 1997 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 1997 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 1997 Bond proceeds will be loaned to any entity or person other than a state or local governmental City. No 1997 Bond proceeds will be transferred, directly or indirectly, or deemed transferred to anon-governmental -25-