Ord 1988-017 - Laserfiche WebLink

Home Browse Search

Section 9.02. Other Representations and Covenants. (a) The City will faithfully perform at all times any and all covenants, undertakings, stipulations, and provisions contained in this Ordinance and in each Certificate; the City will promptly payor cause to be paid the principal of, maturity amount and interest on each Certificate on the dates and at the places and manner prescribed in such Certificate; and the City will, at the times and in the manner prescribed by this Ordinance, deposit or cause to be deposited the amounts of money specified by this Ordinance. (b) The City is duly authorized under the laws of the State of Texas to issue the Certificates; all action on its part for the creation and issuance of the Certificates has been duly and effectively taken; and the Certificates in the hands of the Owners thereof are and will be valid and enforceable direct and general obligations of the City in accordance with their terms. (c) The City hereby represents that the proceeds of the Certificates are needed at this time to provide funds in the amounts and for the respective purposes specified in Section 3.01 of this Ordinance; that based on current facts, estimates, and circumstances, it is reasonably expected that final disbursement of the proceeds of the Certificates will occur within three years after the Closing date, that it is not reasonably expected that the proceeds of the Certificates or money deposited in the Interest and Sinking Funâwill be used or invested in a manner that would cause the Certificates to be or become "arbitrage bonds," within the meaning of Section 148 of the Code; and that, except for the Interest and Sinking Fund and that portion of the Construction Fund representing capitalized interest with respect to a portion of the Certificates, no other funds or accounts have been established or pledged to the payment of the Certificates. (d) The City will not take any action or fail to take any action with respect to the investment of the proceeds of the Certificates or any other funds of the City, including amounts received from the investment of any of the foregoing, that, based upon the facts, estimates, and circumstances known on the Closing Date, would result in constituting the Certificates "arbitrage bonds," within the meaning of Section 148 of the Code, and the City will not take any deliberate action motivated by arbitrage that would have such result. (e) The Certificates are hereby designated "Qualified Tax Exempt Obligations" for purposes of Section 265(b)(3) of the Code. The Certificates are not "private activity bonds" as defined in the Code and neither the City nor any of its subordinate entities, if any, reasonably expect to issue in excess of $10,000,000 aggregate amount of Qualified Tax Exempt Obligations during the calendar year in which the Certificates are issued, and the City hereby covenants not to designate more than $10,000,000 aggregate amount of Qualified Tax Exempt Obligations during this calendar year in which the Certificates are issued. (f) As provided in Section 148(f)(4)(C) of the Code, the City will not be required to rebate arbitrage earnings, if any, on the proceeds of the Certificates, 2389f -23-