Ordinance No. 19551 - Laserfiche WebLink

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Series 1988 Bonds shall be transferred to the Trustee and depos- ited in the Debt Service Account. The balance of the Series 1988 Bond proceeds shall be credited to the Airport Construction Fund. 3.4. Tax Covenants. The City covenants far the benefit of the owners of the Series 1988 Bonds to comply with all provisions of the Internal Revenue Code of 1986 the "Code"~ which are required for Series 1988 Bond interest to be excludable from gross income under the Code except for taxes an corporations, The covenants contained in this section and any covenants in the closing documents for the Series 1988 Bonds which relate to the tax exempt status of the Series 1988 Bonds shall constitute contracts with the Owners of the Series 1988 Bonds, and shall be enforceable by them, but solely to the extent required to preserve the tax-exempt status of the Series 1988 Bonds under federal law. The City makes the following specific covenants with respect to the Code: 3.4.1. The City will not take any action or omit any action if it would cause the Series 1988 Bonds to became "arbitrage bonds" under Section 148 of the Code, and shall pay, when due. all rebates.. with respect to the Series 1988 Bands which are required under Section 148 of the Cade, 3,4.2. The City shall operate the Airport so that the Series 1988 Bonds constitute "qualified bonds" under Section 141~d~ of the Cade, and "exempt facility bonds," 95a or more of the proceeds of which are used to provide airports in accordance with Section 14~~a~~1} of the Code. 3.5, Authentication, Re istration and Transfer. 3.5.1. No Series 1988 Bond shall be entitled to any right or benefit under this ordinance unless it shall have been authenticated by an authorized officer of the Trustee. The Trustee shall authenticate all Series 1988 Bonds to be delivered at closing, and shall additionally authenticate a11~Series 1988 Bonds properly surrendered for exchange or transfer pursuant to this ordinance. 3.5,2. Series 1988 Bonds shall be in registered form. 3,5,3. The ownership of all Series 1988 Bonds shall be entered in the Series 1988 Bond Register maintained by the Trustee and the City may treat the person listed as owner in the Series 1988 Bond Register as the owner of the Series 1985 Bond for all purposes. 3.5.4. The Trustee shall mail each interest payment on the interest payment date for the next business day, if the payment date is not a business days to the name and address of the Series 1988 Bondowner, as that name and address appear on the Page 19 -- Ordinance