Ord 2004-074 - Laserfiche WebLink

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I I I operation of any water system or sewer system other than those owned by the City, and the operation of any such system by anyone other than this City IS hereby prohibited. SectIon 10.05. Payment of the Bonds While any of the Bonds are outstanding and unpaid, there shall be made available to the Paying Agent/Registrar, out of the Interest and SlI1king Fund, money sufficient to pay the interest on and the principal of the Bonds, as applicable, as will accrue or mature on each applicable Interest Payment Date. Section 10.06. Other Representations and Covenants. (a) The City wi II faithfu Ily perform at all times any and all covenants, undertakings, stipulations, and provisions contallled in this Ordinance and in each Bond; 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 Bonds; all action on its part for the creation and issuance of the Bonds has been du Iy and effectively taken; and the Bonds in the hands of the Owners thereof are and will be valid and enforceable obligations of the City in accordance with their terms. Section 10.07 Federal Tax Matters. (a) The City hereby represents that the proceeds of the Bonds are needed at this time for the purposes specified in Section 3.01 hereof; that it is not reasonably expected that the proceeds of the Bonds or money deposited in the Interest and Sinking Fund will be used or invested in a manner that would cause the Bonds to be or become "arbitrage bonds," within the meaning of Section 148 of the Code; and that, except for the Interest and Sinking Fund, no other funds or accounts have been established or pledged to the payment of the Bonds. (b) The City wi II not take any action or fai I to take any action with respect to the investment of the proceeds of the Bonds or any other funds of the City, including amounts received from the investment of any of the foregoing, ifsuch action or inaction, based upon the facts, estimates, and circumstances known on the Closing Date, would result in constitutll1g the Bonds "arbitrage bonds," within the meaning of Section 148 of the Code, and the City will not take any del iberate action motivated by arbitrage that would have such resu It. (c) The City will not take any action or fall to take any action which action or omission would (i) result 111 the interest on the Bonds being includable in gross Income for federal tax purposes; (ii) result in the Bonds being treated as "private activity bonds" within the meaning of Section 141 (a) of the Code; (iii) resu It III the Bonds being treated as "federally guaranteed" with in the mean ing of Section 149(b) of the Code; or (iv) result III the Bonds belllg treated as "hedge bonds" wlthlll the meaning of Section I 49(g) of the Code. (d) The City will comply with the proviSions of Section 148(f) of the Code (relating to paYll1g certain excess earnings of investment proceeds of the Bonds to the United States) and the regulations promulgated thereunder. This covenant Includes the maintenance of records regarding investments acquired with the proceeds by or on behalf of the City adequate to calculate the City's rebate liability. (e) I t IS the understand IIlg of the Ci ly that the covenants contained herein are intended to assure compliance with the regulations and rulings Issued by the Internal Revenue Service. In the event that regulatIons or rullllgs are hereafter issued which modIfy or expand provISions of the Code, as applicable to the Bonds, the City will not be required to comply with any covenant contained herein to the extent that such RSall MarcosWWSSIU 04A\[)ocSlOrdillallccIWW Old Fill'll \l'pC 30