Res 1988-009 - Laserfiche WebLink

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Section 7.02. Security for Funds. All funds created by this Ordinance shall be secured in the manner and to the fullest extent permitted by law for the securi ty of public funds, and such funds shaH be used solely for the purposes permitted by this Ordinance. Section 7.03. Investment of Funds. Funds on deposit to the credit of the accounts and funds hereinabove established and maintained in conformity with the provisions of this Ordinance shaH be invested by the Depository Bank, upon the request of the City, in direct obligations of, or obligations the principal of and the interest on which are guaranteed by, the United States Government. The investments shall be valued in terms of current market value as of June 30th and December 31st of each year. Any obligations in which money is so invested shaH be held subject to the same lien as the money which was used to purchase such obligations and shall be sold when so ordered by the City, and the City shaH in all events order such sale when necessary to prevent any default in connection with the Outstanding Bonds, Bonds or Additional Bonds. Section 7.0'+. Initial Deposits. On the Closing Date, the City shall cause the proceeds from the sale of the Bonds to be deposited as follows: (i) first, all accrued interest on the Bonds from the Original Issue Date until the Closing Date and premium, if any, shall be deposited to the credit of the Waterworks and Sewer System Junior Lien Bond Fund; (ii) second, the remaining balance shall be deposited to the credit of a construction fund or funds. Section 8.01. Additional Bonds. The City reserves the right to issue, in one or more instaHments, additional bonds or obligations ("Additional Bonds") payable from or secured by a first lien on and pledge of the revenues of the System, and such Additional Bonds, when issued in compliance with law and the terms and conditions hereinafter appearing, shall be equally and ratably secured by and payable from a lien on and pledge of the net revenues of the System, and shall be in all respects on a parity and of equal dignity with the Bonds. The right to issue Additional Bonds at any time is subject to the following limitations, restrictions, and conditions: (a) The Additional Bonds are authorized and issued in conformity with the Constitution and applicable Statutes of the State of Texas; (b) The City certifies that no default exists in connection with any of the covenants or requirements of the ordinance or ordinances authorizing the issuance of all then outstanding bonds payable from the net revenues of the System; (c) The City certifies that the Interest and Sinking Fund contains the amount then required to be on deposit therein; (d) The net revenues of the System for the fiscal year immediately preceding the issuance and sale of said Additional Bonds are equal to at least one and five-tenths (1..5) times the average annual debt service requirements of the then outstanding bonds, as certified by a Certified Public Accountant; and (e) The annual net revenues of the System will be equal to at least one and five-tenths (1..5) times the average annual amount required for payment of principal of and interest on ail outstanding revenue bonds, Bonds and Additional Bonds then proposed to be issued, as such principal and interest are scheduled to become due, as certified to by an Independent Consulting Engineer. Provided, however, that it shall not be necessary for the City to meet the above requirements as to the average annual debt service requirements if the City obtains the written consent of the owners or holders of at least seventy-five percent (7.596) of the Outstanding Bonds, Bonds and Additional Bonds then outstanding. Section 9.01. Investments. (a) Money in each fund created by this Ordinance, at the option of the City, may be invested in such securities or obligations as permitted under applicable law. (b) Any securities or obligations in which money is so invested shaH be kept and held in trust for the benefit of the Bondholders and shall be sold and the proceeds of sale shall be timely applied to the making of all payments required to be made from the fund from which the investment was made. - 1'+ -