Resolution No. 4624 - Laserfiche WebLink

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the Owners of Bonds which pay interest only at maturity, and mature more than one year after they are issued shall be treated as Owners of Bonds in an aggregate principal amount equal to the accreted value of such Bonds as of the date the Registrar sends out notice of requesting consent, waiver or other action as provided herein. Section 11. Defeasance The City may defease and deem all or any portion of the Outstanding Bonds to be paid by: 11.1 Irrevocably depositing cash or noncallable, nonprepayable Direct Obligations in escrow with an independent escrow agent which are calculated to be sufficient for the payment of Bonds which are to be defeased; and, 11.2 Filing with the escrow agent an opinion from a Qualified Consultant to the effect that the money and the principal and interest to be received from the Direct Obligations are calculated to be sufficient, without further reinvestment, to pay the defeased Bonds when due; and, 11.3 Filing with the escrow agent an opinion of nationally recognized bond counsel that the proposed defeasance will not cause interest on the defeased Bonds to be includable in gross income under the Code. If Bonds are defeased under this Section, all obligations of the City with respect to those defeased Bonds shall cease and terminate, except for the obligation of the City, the escrow agent and any registrar to pay the defeased Bonds from the amounts deposited in escrow. Section 12. Book Entry, Redemption and Registration Provisions. Unless otherwise provided in a Supplemental Resolution: 12.1 Book Entry Provisions. The Bonds shall be initially issued in BEO form and shall be governed by this Section 12. While Bonds are in BEO form no physical bonds shall be provided to Owners of Bonds. The City has executed and delivered a blanket Letter of Representations to DTC. While the Bonds are in BEO form, registration and transfer of beneficial interests in the Bonds shall be governed by that letter and the Operational Arrangements ofDTC, as they may be amended from time to time, as provided in the blanket issuer letter of representations. So long as Bonds are in BEO form: (A) DTC shall be treated as the Owner for all purposes, including payment and the giving of notices to Owners of Bonds. Bond payments shall be made, and notices shall be given, to DTC in accordance with the Letter of Representations. Any failure ofDTC to advise any of its participants, or of any participant to notify the beneficial Owner, of any such notice and its content or effect will not affect the validity of the redemption of Bonds called for redemption or of any other action premised on such notice. (B) The City may discontinue maintaining the Bonds in the BEO form at any time. The City shall discontinue maintaining the Bonds in BEO form if DTC determines not to continue to act as securities depository for the Bonds, or fails to perform satisfactorily as depository, and a satisfactory substitute depository cannot reasonably be found. Page 20 - Resolution March 23, 2000