Ord 2007-036 - Laserfiche WebLink

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counsel, to preserve the exemption from federal mcome taxation of mterest on the Bonds under section 103 of the Code In furtherance of such intention, the Crty hereby authorizes and directs the Crty Manager or Director of Finance to execute any documents, certificates or reports required by the Code and to make such elections, on behalf of the Crty, which may be permitted by the Code as are consistent with the purpose for the issuance of the Bonds (d) The Crty covenants to account for the expenditure of sale proceeds and investment earnings to be used for the purposes described in Section 3 O 1 of this Ordinance (the "Project") on its books and records m accordance with the requirements of the Code The Crty recognizes that m order for the proceeds to be considered used for the reimbursement of costs, the proceeds must be allocated to expenditures within 18 months of the later of the date that (1) the expenditure is made, or (2) the Project is completed, but m no event later than three years after the date on which the original expenditure is paid. The foregoing notwithstanding, the Crty recognizes that m order for proceeds to be expended under the Code, the sale proceeds or investment earnings must be expended no more than 60 days after the earlier of (1) the fifth anniversary of the delivery ofthe Bonds, or (2) the date the Bonds are retired. The City agrees to obtamthe advice ofnationally-recognized bond counsel if such expenditure fails to comply with the foregoing to assure that such expenditure will not adversely affect the tax-exempt status of the Bonds, For purposes of this subsection, the City shall not be obligated to comply with this covenant if rt obtains an opinion of nationally-recognized bond counsel to the effect that such failure to comply will not adversely affect the excludability for federal income tax purposes from gross mcome of the mterest. (e) The Crty covenants that the property constituting the Project will not be sold or otherwise disposed m a transaction resulting m the receipt by the Crty of cash or other compensation, unless the Crty obtains an opinion ofnationally-recognized bond counsel that such sale or other disposition will not adversely affect the tax-exempt status of the Bonds For purposes of this subsection, the portion of the property comprising personal property and disposed of m the ordinary course shall not be treated as a transaction resulting m the receipt of cash or other compensation. For purposes of this subsection, the Crty shall not be obligated to comply with this covenant if rt obtains an opinion of nationally-recognized bond counsel to the effect that such failure to comply will not adversely affect the excludability for federal mcome tax purposes from gross mcome of the mterest. ARTICLE X DEFAULT AND REMEDIES Section 10 O1 Events of Default. Each of the following occurrences or events for the purpose of this Ordinance is hereby declared to be an "Event of Default," to-wit: (i) the failure to make payment of the principal of or mterest on any of the Bonds when the same becomes due and payable, or (ii) default m the performance or observance of any other covenant, agreement or obligation of the Crty, the failure to perform which materially, adversely affects the rights of the Owners, including but not limited to, their prospect or ability to be repaid m accordance with this Ordinance, and the continuation thereof for a period of 60 days after notice of such default is given by any Owner to the Crty San Mazcos GO 2007 Ordinance 26