res_8745 - Laserfiche WebLink

Home

No portion of the proceeds of the Bonds shall be used directly or indirectly to acquire higher yielding investments or to replace funds which were used directly or indirectly to acquire higher yielding investments, except (1) for a reasonable temporary period until such proceeds are needed for the purpose for which the Bonds were issued, and (2) in addition to the above in an amount not greater than five percent (5%) of the proceeds of the Bonds. To this effect, any sums from time to time held in the Escrow Account or Debt Service Account (or any other City fund or account which will be used to pay principal or interest to become due on the bonds payable therefrom) in excess of amounts which under then-applicable federal arbitrage regulations may be invested without regard as to yield shall not be invested at a yield in excess of the applicable yield restrictions imposed by said arbitrage regulations on such investments after taking into account any applicable "temporary periods" or "minor portion" made available under the federal arbitrage regulations. In addition, the proceeds of the Bonds and money in the Construction Account or Debt Service Account shall not be invested in obligations or deposits issued by, guaranteed by or insured by the united States or any agency or instrumentality thereof if and to the extent that such investment would cause the Bonds to be "federally guaranteed" within the meaning of Section l49(b) of the federal Internal Revenue Code of 1986, as amended (the "Code"). 18. Prior Bonds: Security. until retirement of the Prior Bonds, all provisions theretofore made for the security thereof shall be observed by the City and all of its officers and agents. 19. Tax Increments. The City hereby pledges and appropriates the Tax Increments to the Debt Service Account, which pledge and appropriation shall continue until all of the Bonds, and any additional bonds payable from the Debt Service Account, are paid or discharged. The City hereby expressly reserves the right to use the Tax Increments to finance costs set forth in the Plan not financed hereby or to finance costs of other projects to be undertaken from time to time within the Development District in accordance with the Program and the Plan, as may be from time to time amended. In particular and as an application of the previous sentence, the City hereby expressly reserves the right to use Excess Developer's Tax Increments, as defined in a Development Agreement by and between the City and Centre Pointe Investment Company, a Limited Partnership, for the purposes set forth in Section 3.7(4) of said Development Agreement even if by so using such Excess Developer's Tax Increments the amount of Tax Increments is not in the aggregate sufficient to pay the principal and interest on the Bonds. 26957 38