Agenda 07/25/2000 - Laserfiche WebLink

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The Holders of not less than sixty-six and two-thirds percent (66-2/3%) in principal amount of the Outstanding Note shall have the power to authorize any modifications to this Ordinance proposed by the City other than as permitted above; provided that without the consent of the Holder of the Note affected thereby, no modifications shall be made which will (a) extend the time of payment of principal of, or interest on, the Note or reduce the principal amount thereof or the rate of interest thereon; (b) give to the Note any preference over any other note or bond secured equally and ratably therewith; (c) deprive the Noteholder of the security afforded by this Ordinance, or (d) reduce the percentage in principal amount of the Note required to authorize any modification to the Ordinance. Section 14 Application of Proceeds; Sale of Note Proceeds derived from the sale of the Note together with other monies available iherefor shall be used to pay the costs of issuance and other expenses of the City r~lating to the issuance of the Note and thereafter any remaining funds to be deposited in the Proceeds Fund shall be used for the purposes specified in Section 2 of this Ordinance and otherwise used in accordance with the provisions of this Ordinance or an opinion of Bond Counsel. Interest accruing on the principal of the Proceeds Fund and any profit realized from it may be transferred to the Note Fund to be applied to the payment of interest on the Note during the acquisition, construction, improvement and equipping of the Project. Section 15 No Arbitrage Covenant and Covenants and Designations as to the Code The City hereby covenants that it will not use or invest, or permit the use or investment of any proceeds of the Note, in a manner that would cause the Note to be subjected to treatment under Section 148 of the Code and the regulations adopted thereunder as an "arbitrage bond," and to that end the City shall comply with applicable regulations adopted under said Section 148 of the Code. The City covenants to comply with the Code provisiqns requiring that any issuance of "governmental bonds," as defined therein, be subject to certain requirements as to rebate and timing and type of payments to be paid for from the proceeds of such notes, as well as other additional requirements. In order to assure compliance with such Code provisions, the City has entered into a Compliance Certificate, to comply with such requirements and covenants therein that it will not breach the terms thereof. The Council, on behalf of the City, hereby designates the Note as a "qualified tax-exempt obligation" as defined in Section 265(b)(3)(B) of the Code and certifies by this Ordinance that is does not reasonably anticipate the issuance by it or its subordinate entities of more than $10,000,000 in "qualified tax-exempt obligations" during the calendar year 2000 and will not designate, or permit the designation by any of its subordinate entities of, any of its notes and bonds (or those of its subordinate entities) during the calendar year 2000 which would cause the $10,000,000 limitation of Section 265(b)(3)(D) of the Code to be violated. 13