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The Holders of not less than sixty-six and two-thirds percent (66-2/3%) in principal
<br />amount of the Outstanding Bonds shall have the power to authorize any modifications to this
<br />Ordinance proposed by the City other than as permitted above; provided that without the consent
<br />of the Holders of the Bonds affected thereby, no modifications shall be made which will
<br />(a) extend the time of payment of principal of, or interest on, the Bonds or reduce the principal
<br />mount thereof or the rate of interest thereon; (b) give to the Bonds any preference over any other
<br />bond or bond secured equally and ratably therewith; (c) deprive the Bondholders of the security
<br />afforded by this Ordinance, or (d) reduce the percentage in principal amount of the Bonds
<br />required to authorize any modification to the Ordinance.
<br />
<br />Section 14- APplication of Proceeds; Sale of Bonds
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<br /> Proceeds derived from the sale of the Bonds together with other monies available therefor
<br />shall be used to pay the costs of issuance and other expenses of the City relating to the issuance
<br />of the Bonds and thereafter any remaining funds to be deposited in the Proceeds Fund shall be
<br />used for the purposes specified in Section 2 of this Ordinance and othenvise used in accordance
<br />with the provisions of this Ordinance or an opinion of Bond Counsel. Interest accroing on the
<br />principal of the Proceeds Fund and any profit realized fi'om it may be transferred to the Bond
<br />Fund to be applied to the payment of interest on the Bonds during the acquisition, construction,
<br />improvement and equipping of the School Project and the Redevelopmerit and Public Property
<br />Project.
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<br />Section 15 - N.,_o Arbitraee Covenant and Covenants and Desienations as to the Code
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<br /> The City hereby covenants that it will not use or invest, or permit the use or investment of
<br />any proceeds of the Bonds, in a manner that would cause the Bonds to be subjected to treamaent
<br />under Section 148 of the Code and the regulations adopted thereunder as "arbitrage bonds," and
<br />to that end the City shall comply with applicable regulations adopted under said Section 148 of
<br />the Code.
<br />
<br /> The City covenants to comply With the Code provisions requiting that any issuance of
<br />"governmental bonds," as defined thei'ein, be subject to certain requirements as to rebate and
<br />timing and type of payments to be paid for from the proceeds of such bonds, as well as other
<br />additional requirements. In order to assure compliance with such Code provisions, the City will
<br />enter into a Compliance Certificate to comply with such requirements and will covenant that it
<br />will not breach the terms thereof.
<br />
<br /> The Council, on behalf of the City, hereby designates the mount of $200;000 of the
<br />Bonds as "qualified tax-exempt obligations" as defined in Section 265(b)(3)(B) of the Code and
<br />certifies by this Ordinance that is does not reasonably anticipate the issuance by it or its
<br />subordinate entities of more than $10,000,000 in "qualified tax-exempt oblig~'tions" (excluding
<br />any bonds deemed designated pursuant to the provisions of §265Co)(3)(C)(ii) or §
<br />265Co)(3)(D)(ii) of the Code) during the calendar year 1999 and will not designate (excluding
<br />
<br /> any bonds deemed designated pursuant to the provisions of §265(b)(3)(C)(ii) or §
<br /> 265(b)(3)(D)(ii) of the Code), or permit the designation by any of its subordinate entities of, any
<br /> of its bonds and bonds (or those of its subordinate entities) during the calendar year 1999 which
<br /> would cause the $10,000,000 limitation &Section 265(b)(3)(D) of the Code to be violated.
<br />
<br /> The Council intends for the Bonds to be treated as complying with the provisions of
<br />Section 148(0(4)(D) of the Code, which provides an exception from the "rebate requirement," as
<br />the Bonds (I) are issued by the City, which is a governmental unit with general taxing powers,
<br />(2) no bond which is a part of this issue is a private activity bond, (3) 95% or more of the net
<br />proceeds of this issue are to be used for local governmental activities entirely within the
<br />jurisdiction of the City, and (4) the aggregate face mount of all tax-exempt bonds and bonds
<br />(other than private activity bonds and bonds deemed designated pursuant to the provisions of
<br />§ 148(f)(4)(D)(iii) and (v) of the Code) issued by the City during the calendar year 1999 (and
<br />bonds and bonds issued by any subordinate entity of the City) is not reasonably expected to
<br />exceed $5,000,000 except that, pursuant to the provisions of Section 148(f)(4)(D)(vii) of the
<br />Code, this amount of $5,000,000 is increased by the lesser of $5,000,000 or so much of the
<br />aggregate face mount of all tax-exempt bonds (other than private activity bonds) issued by the
<br />City during the calendar year 1999 (and bonds and bonds issued by any subordinate entity of the
<br />City) attributable to financing the construction (within the meaning of Section 148(0(4)(C)(iv) of
<br />the Code) of public school facilities, as are the proceeds of the Bonds.
<br />
<br />Section 16 - Aporgval ofOffic_ia.l State_ment and Other DgcumentsI Further Actions
<br /> Authorized
<br />
<br /> The Official Statement with respect to the issuance and sale of the Bonds is hereby
<br />approved in substantially the form of the Preliminary Official Statement made available at this
<br />meeting. The Mayor or Vice Mayor is authorized and directed to execute the Official Statement
<br />with respect to the issuance and sale of the Bonds in substantially the form of the draft Official
<br />Statement made available at this meeting with such changes or supplements as such officers and
<br />agents may consider necessary or desirable in connection therewith and such Official Statement
<br />is approved. The distribution of the Preliminary Official Statement and the Official Statement is
<br />hereby authorized. The forms of the Bond Purchase Agreement, Continuing Disclosure
<br />Agreement and Compliance Certificate presented to this meeting are hereby approved, and the
<br />Mayor, Vice Mayor and City Manager, or any of them, are authorized and directed to consent to
<br />the terms of the sale of the Bonds and to execute and deliver the Bond Purchase Agreement,
<br />Continuing Disclosure Agreement and Compliance Certificate. The Mayor, Vice Mayor, Clerk of
<br />the Council and the City Manager, City Treasurer, City Attorney, Bond Counsel and all other
<br />officers, employees and agents of the City are hereby authorized and directed to take any and all
<br />such further action as shall be deemed necessary or desirable in order to effectuate delivery of,
<br />and payment for, the Bonds all in accordance with the Ordinance. The signature of such officers
<br />or employees shall be conclusive evidence of the approval ofnny such action by the Council.
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