Ord 1991-021 - Laserfiche WebLink

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(c) It will duly and punctually keep, observe and perform each and every undertaking, covenant and condition on its part to be kept, observed and performed, contained in this Ordinance and in the ordinances authorizing the Outstanding Bonds and any Additional Bonds, and that it will prior to the maturity of each installment of interest and prior to the maturity of each Outstanding Bond, Bond, and Additional Bond issued thereunder, make available at the principal office of the Paying Agent/Registrar, but only from the Water and Sewer System Junior Lien Bond Fund, sufficient funds to promptly pay such principal and interest. (d) It will from time to time promptly pay and discharge all taxes, assessments, and other governmental charges, the lien of which would be prior to the lien hereof, lawfully imposed upon the System or any part thereof or upon the income and proceeds thereof, so that the lien of the Outstanding Bonds, Bonds or Additional Bonds, when issued, shall at all times be who lly preserved at the cost of the City and without expense to the holders thereof; provided, howeve r, that nothing in this Section contained shall require the City to pay or discharge any such tax, assessment or governmental charge so long as the validity thereof be by it in good faith contested. Section 10.08. Surety. The City covenants that each of its officials or employees having custody of funds of the System during acquisition, construction, development, and operation of the System, shall be bonded at all times in an amount at least equal to the total funds in his custody at anyone time. Section 10.09. Federal Tax Matters. (a) The City hereby represents that the proceeds of the Bonds 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 Bonds will occur within three years after the Closing date, 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 and that portion of the Construction Fund representing capitalized interest with respect to a portion of the Bonds, 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, that, based upon the facts, 4172f -30-