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

SECTION 8. A ~ri7atic~n fir Rork-Fn rv SvsTtPm. The 1997 Bonds may, in compliance with all applicable laws, initially be issued and held in book-entry form on the books of the central depository system, The Depository Trust Company, its successors, or any successor central depository system appointed by the City from time to time (the "Clearing Agency"), without physical distribution of bonds to the purchasers. The following provisions of this Section apply in such event. One definitive 1997 Bond of each maturity shall be delivered to the Clearing Agency (or its agent) and held in its custody. The City and Registrar may, in connection herewith, do or perform or cause to be done or performed any acts or things not adverse to the rights of the holders of the 1997 Bonds as are necessary or appropriate to accomplish or recognize such book-entry form 1997 Bonds. During any time that the 1997 Bonds are held in book-entry form on the books of a Clearing Agency, (1) any such 1997 Bond may be registered upon Registration Record in the name of such Clearing Agency, or any nominee thereof, including Cede & Co.; (2) the Clearing Agency in whose name such 1997 Bond is so registered shall be, and the City and the Registrar and Paying Agent may deem and treat such Clearing Agency as, the absolute owner and holder of such 1997 Bond for all purposes of this Ordinance, including, without limitation, the receiving of payment of the principal. of and interest and premium; if any, on such 1997 Bond, the receiving of notice and the giving of consent; (3) neither the' City nor the Registrar or Paying Agent shall have any responsibility or obligation hereunder to any direct or indirect participant, within the meaning of Section 17A of the Securities Exchange Act of 1934, as amended, of such Clearing Agency, or any person on behalf of which, or otherwise in respect of which, any such participant holds any interest in any 1997 Bond, including, without limitation, any responsibility or obligation hereunder to maintain accurate records of any interest in any 1997 Bond or any responsibility or obligation hereunder with respect to the receiving of payment of principal of or interest or premium, if any, on any 1997 Bond, the receiving of notice or the giving of consent; and (4) the Clearing Agency is not required to present any 1997 Bond called for partial redemption, if any, prior to receiving payment so long as the Registrar and Paying Agent and the Clearing Agency have agreed to the method for noting such partial redemption. If either the City receives notice from the Clearing Agency which is currently the registered owner of the 1997 Bonds to the effect that such Clearing Agency is unable or unwilling to discharge its responsibility as a Clearing Agency for the 1997 Bonds, or the City elects to discontinue its use of such Clearing Agency as a Clearing Agency for the 1997 Bonds, then the City and the Registrar and Paying Agent each shall do or perform or cause to be done or performed all acts or things, not adverse to the rights of the holders of the 1997 Bonds, as are necessary or appropriate to discontinue use of such Clearing Agency as a Clearing Agency for the 1997 Bonds and to transfer the ownership of each of the 1997 Bonds to such person or persons, including any other Clearing Agency, as the holder of the 1997 Bonds may direct in accordance with this Ordinance. Any expenses of such discontinuance and transfer, including expenses of printing new certificates to evidence the 1997 Bonds, shall be paid by the City. -7-