Ord 1994-059 - Laserfiche WebLink

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nAG-- (e) To the extent that it legally may, the City further covenants and agrees that. as long as any Parity Revenue Obligations, or any interest thereon, are outstanding, no franchise shall be granted for the installation or operation of any competing waterworks or sewer system; and that the City will prohibit the 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 to.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 Sinking 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 will faithfully perform at all times any and all covenants, undertakings, stipulations, and provisions contained 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 itsþart for the creation and issuance of the Bonds has been duly 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 (the "Project"); that based on current facts, estimates and circumstances, it is reasonably expected that tinal disbursement of the proceeds of the Bonds will occur within three years after the Closing Date, that substantial binding obligations to commence the Project will be incurred within six months of the Closing Date and that the accomplishment of the projects for which the Bonds are hereby issued will proceed with due diligence to completion; 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 t~ be or become "arbirrage 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 will not take any action or fail 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, if such action or inaction, based upon the facts, estimates, and circumstances known on the Closing Date, would result in constituting the Bonds "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. (c) The City will not take any action or fail to take any action which action, or inaction, would result in the Bonds being created as "private activity bonds" within the meaning of Section 141(a) of the Code. SAN ~f AR \ \\lWSS94 iDOCS\O RD NCE:027 . 43 :HB B F 30