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Ord 2006-017
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Ord 2006-017
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Last modified
9/18/2007 4:17:39 PM
Creation date
8/27/2007 8:43:02 AM
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City Clerk
City Clerk - Document
Ordinances
City Clerk - Type
Certificates of Obligation
Number
2006-17
Date
5/2/2006
Volume Book
167
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<br />I <br /> <br />I <br /> <br />I <br /> <br />(2) the date the Bonds are retired. The City agrees to obtain the advice of nationally-recognized bond <br />counsel if such expenditure fails to comply with the foregoing to assure that such expenditure will <br />not adversely affect the tax-exempt status of the Bonds. For purposes of this subsection, the City <br />shall not be obligated to comply with this covenant if it obtains an opinion of nationally-recognized <br />bond counsel to the effect that such failure to comply will not adversely affect the excludability for <br />federal income tax purposes from gross income of the interest. <br /> <br />(e) The City covenants that the property constituting the Project will not be sold or <br />otherwise disposed in a transaction resulting in the receipt by the City of cash or other compensation, <br />unless the City obtains an opinion of nationally-recognized bond counsel that such sale or other <br />disposition will not adversely affect the tax-exempt status of the Bonds. For purposes of this <br />subsection, the portion of the property comprising personal property and disposed of in the ordinary <br />course shall not be treated as a transaction resulting in the receipt of cash or other compensation. <br />For purposes of this subsection, the City shall not be obligated to comply with this covenant if it <br />obtains an opinion of nationally-recognized bond counsel to the effect that such failure to comply <br />will not adversely affect the excludability for federal income tax purposes from gross income of the <br />interest. <br /> <br />ARTICLE XI <br /> <br />DEFAULT AND REMEDIES <br /> <br />Section 11.01. Events of Default. <br /> <br />Each of the following occurrences or events for the purpose of this Ordinance is hereby <br />declared to be an "Event of Default," to-wit: <br /> <br />(i) the failure to make payment ofthe principal of or interest on any ofthe Bonds <br />when the same becomes due and payable; or <br /> <br />(ii) default in the performance or observance of any other covenant, agreement <br />or obligation of the City, the failure to perform which materially, adversely affects the rights <br />of the Owners, including but not limited to, their prospect or ability to be repaid in <br />accordance with this Ordinance, and the continuation thereof for a period of 60 days after <br />notice of such default is given by any Owner to the City. <br /> <br />Section 11.02. Remedies for Default. <br /> <br />( a) Upon the happening of any Event of Default, then and in every case any Owner or <br />an authorized representative thereof, including but not limited to, a trustee or trustees therefor, may <br />proceed against the City for the purpose of protecting and enforcing the rights of the Owners under <br />this Ordinance, by mandamus or other suit, action or special proceeding in equity or at law, in any <br />court of competent jurisdiction, for any relief permitted by law, including the specific performance <br /> <br />SANMARCOS/WWWSRev2006-2: Ordinance <br /> <br />38 <br />
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