Ord 1987-112 - Laserfiche WebLink

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Section 9.02. Other Representations and Covenants. (a) The City wi11 faithful1y 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 wi11 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 Fund will 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) 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, and in connection therewith the City hereby represents that: (i) the City is a governmental unit with general taxing powers; (ii) the Certificates are not private activity bonds within the meaning of 141(a) of the Code; (iii) 95 percent or more of the net proceeds will be used for local governmental activities of the City; and (iv) the aggregate face amount of all tax exempt obligations (other than private activity bonds) issued by the City (and all subordinate entities thereof) during the calendar year in which the Certificates are issued is not reasonably expected to exceed $5,000,000. 0405s -21-