Resolution No. 4616 - Laserfiche WebLink

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Section 2. - Provisions for Issuance and Sale of Notes. (a) In anticipation of the issuance and sale of the bonds approved by the electors of the City on May 18, 1993, EWEB is authorized to provide for the issuance and sale of notes or other obligations (collectively, the "notes") in an aggregate principal amount of Six Million Dollars ($6,000,000). The notes shall not be sold at a price less than ninety-six percent 96%) of the par amount thereof; Cll re in s fr -,ofGsu'nce ~ R I I t ~J!Qttta...!~ Such notes shall bear interest at such rate or rates per annum not exceeding a net effective rate of thirteen percent (13%) per annum. Such notes shall be sold at public or private sale, shall be in such form and in such denominations, and shall be subject to prior redemption at a premium not in excess of four percent (4%) of the principal amount of the notes to be redeemed, all as shall be determined by EWEB. The notes and the interest thereon shall be payable from the proceeds of the bonds approved by the electors of the City on May 18, 1993, and other funds of the Electric System available therefor. EWEB is hereby authorized to prescribe by resolution all such terms and conditions of said notes in addition to and not in conflict with those set forth herein. (b) Such notes shall include a statement on their face to the effect: 1. That they do not in any manner constitute any general obligation of EWEB or of the City, or create a charge upon the tax revenues of the City, or upon any other revenues or property of the City, or property of EWEB, but are payable from the proceeds of bonds and are charges upon and are payable solely from the revenues of the Electric System, or any portion thereof, or from any other monies lawfully available therefor, pledged to the payment thereof; 2. That the holders thereof may only look for repayment to the proceeds of bonds and the revenues of the Electric System which are pledged to the payment thereof, and may not directly, or indirectly, be paid or compensated through the. property of the City, or EWEB, or by and through the taxing power of the City. (c) Subject only to the provisions of the resolutions previously adopted by EWEB providing for the issuance of notes payable from bond proceeds and the net revenues of the Electric System, any pledge of the revenues or other monies or obligations of the Electric System made by the City acting by and through EWEB shall have such a lien and priority as EWEB shall determine and shall be valid and binding from the time such pledge is made, and the revenues or other monies or obligations so pledged and thereafter received by EWEB shall immediately be subject to the lien of such pledge without any physical delivery or further act. (d) Without limiting the powers extended to EWEB to determine terms and conditions of the notes and other evidences of indebtedness in addition to and not in conflict herewith, EWEB is authorized, in its discretion, and to the extent permitted by law, to provide in connection with the authorization of any issue of such notes, that such notes and Resolution - 4