O-2000-2390 - Laserfiche WebLink

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e . operation and maintenance expenses of the System, and all debt service, reserve, and other requirements in connection with all of the Issuer's revenue bonds or other obligations (now or hereafter outstanding) which are payable from all or any part of the "Net Revenues" of the System. The City shall deposit such pledged surplus revenues to the credit of the Interest and Sinking Fund created pursuant to this section. The City reserves the right to issue, for any lawful purpose at any time, in one or more installments, bonds, certificates of obligation, and other obligations of any kind payable in whole or in part from, and secured by a pledge of the Net Revenues of the System that may be prior and superior in right to, on a parity with, or junior and subordinate to the limited pledge of the Net Revenues securing the Certificates. (b) Construction Fund. A special "City of La Porte Certificates of Obligation Series 2000 Construction Fund" (the "Construction Fund") is hereby created and shall be established and maintained by the City at an official depository bank of the City. The Construction Fund is the fund into which the net proceeds of the Certificates shall be deposited except that any premium received from the Initial Purchaser shall be deposited to the Interest and Sinking Fund. Money in the Construction Fund shall be used to pay the costs necessary or appropriate to accomplish the purposes for which the Certificates are issued. SECTION 6. INVESTMENTS AND SECURITY. (a) Investment of Funds. The City may place money in any fund created by this Ordinance in time or demand deposits or invest such money as authorized by law at the time of such deposit; provided, however, that the City hereby covenants that the proceeds of the sale of the Certificates will be used as soon as practicable for the purposes for which the Certificates are issued. Obligations purchased as an investment of money in a fund shall be deemed to be a part of such fund. (b) Amounts Received from Investments. Except as otherwise provided by law, amounts received from the investment of the Construction Fund may be retained in such fund or deposited to the Interest and Sinking Fund as determined by the City Council. Any amounts received from the investment of the Interest and Sinking Fund shall be deposited in the Interest and Sinking Fund. (c) Security for Funds. All funds created by this Ordinance shall be secured in the manner and to the fullest extent required by law for the security offunds of the City. (d) Remaining Funds. Any money remaining after the purposes for which the Certificates have been accomplished shall be deposited in the Interest and Sinking Fund and the Construction Fund shall be closed. SECTION 7. COVENANTS OF THE CITY. (a) General Covenants. The City covenants and represents that: (i) The City is a duly created city, operating and existing under the laws of the State of Texas, and is duly authorized under the laws of the State of Texas to create and issue the Certificates, all action on its part for the creation and issuance of the Certificates has been duly and effectively taken, and the Certificates in the hands of the Owners thereof are and will be valid and enforceable obligations ofthe City in accordance with their terms. (ii) The Certificates shall be ratably secured in such manner that no one Certificate shall have preference over other Certificates. (b) Covenants Regarding Tax Matters. The City covenants to take any action to maintain, or refrain from any action which would adversely affect, the treatment of the Certificates as obligations described in section 103 of the Code, the interest on which is not includable in "gross income" for federal income tax purposes. In furtherance thereof, the City specifically covenants as follows: (i) To refrain from taking any action which would result in the Certificates being treated as "private activity bonds" within the meaning of section 141(a) of the Code; 9