Resolution No. 4523 - Laserfiche WebLink

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be required in this Section 9.1.2. or by law. 9.4. Any moneys collected by or on behalf of Bondowners after an event of default has occurred shall be deposited in the General Account and applied as provided in this Resolution. Section 10. Defeasance. The lien of any Bonds upon the Assessments; the Available Sewer Revenues and any amounts in the Fund may be defeased, and those Bonds shall be deemed paid, if the City places in irrevocable escrow noncallable, direct obligations of, or obligations guaranteed by, the United States which are calculated to be sufficient, without reinvestment, to pay principal, interest and any premium on those Bonds as they become due, either at maturity or on prior redemption. Section 11. Amended Loan Agreement and Bonds Authorized. The City is hereby authorized to enter into an amended Loan Agreement with the DEQ and to issue and deliver the Bonds. The total principal amount of the Bonds shall not exceed Three Million Dollars ($3,000,000). The Bonds shall be in substantially the form of prior special assessment bonds which the City has previously sold to the DEQ, with such changes as the City Manager may approve. The City Manager or the designee of the City Manager (the "City Official") without further action by the City Council shall: 11.1. Establish the terms under which the Bonds will be sold to the DEQ, enter into an amended Loan Agreement with the DEQ and issue and deliver the Bonds; 11.2. Establish the final principal amount, maturity schedule, interest rates, redemption provisions and other terms of the Bonds, consistent with the limitations established by this Resolution; 11.3. Report the results of the sale of the Bonds to the Council; and, 11.4. Execute and deliver any certificates or other documents, and take any other action which is desirable in order to issue, sell and deliver the Bonds in accordance with this Resolution. Section 12. Tax Exemption. 12.1. The City covenants for the benefit of the Owners of the Bonds to comply with all provisions of the Code which are required for Interest on the Bonds to be excludable from gross income under the Code. The City makes the following specific covenants: 12.2. The City will not take any action or omit any action if it would cause the Bonds to become "arbitrage bonds" under Section 148 of the Code, and shall pay all penalties and rebates to the United States which are required by Section 148(f) of the Code. Page 7 Resolution J:\HWR\CITIES\EUGENE\GENERAL\SABURES.DOC