Resolution No. 4539 - Laserfiche WebLink

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Refunding Bonds shall be issued in compliance with the Act. Accordingly, the Refunding Bonds shall replace the Refundable Bonds which are refunded by the Refunding Bonds, and the full faith and credit of the City are pledged to the successive owners of each of the Refunding Bonds for the punctual payment of such obligations, when due. The City shall levy annually, as provided by law, a direct ad valorem tax upon all of the taxable property within the City in sufficient amount, after taking into consideration discounts taken and delinquencies that may occur in the payment of such taxes and other moneys available for the payment of debt service on the Refunding Bonds, to pay the Refunding Bonds promptly as they mature. The City covenants with the owners of the Refunding Bonds to levy such a tax annually during each year that any of the Refunding Bonds, or bonds issued to refund them, are outstanding. Section 11. Refunding Bond Insurance. The City may apply for municipal bond insurance for the Refunding Bonds, and expend Refunding Bond proceeds to pay any bond insurance premium. Section 12. Form of Refunding Bonds. The Refunding Bonds shall be in substantially the form attached hereto as Exhibit A, with such changes as may be approved by the City Official. The Refunding Bonds may be printed or typewritten, and may be issued as one or more temporary Refunding Bonds which shall be exchangeable for definitive Refunding Bonds when definitive Refunding Bonds are available. Section 13. Execution. The Refunding Bonds shall be executed on behalf of the City with the facsimile signatures of the City Official. Section 14. Tax-Exempt Status. The City covenants to use the proceeds of the Refunding Bonds, and the facilities financed with the Refundable Bonds, and to otherwise comply with the provisions of the Internal Revenue Code of 1986, as amended, (the "Code") so that interest paid on the Refunding Bonds will not be includable in gross income of the bondowners. The City specifically covenants: 14.1. to comply with the "arbitrage" provisions of Section 148 of the Code, and pay any rebates due to the United States on the gross proceeds of the Refunding Bonds; 14.2. to yield restrict and pay any rebates due to the United States on any unexpended proceeds of the Refundable Bonds; and 14.3. to operate the facilities which were financed with the proceeds of the Refundable Bonds, and any facilities which are financed with the unexpended proceeds of the Refundable Page 6 - Resolution J:\RDR\EUGENE.Cfl\ADV-REF.97\RES.DOC