R-1986-14 - Laserfiche WebLink

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. e Bonds. The Bonds will be issued and sold in an aggregate principal amount (excluding bonds issued to refund any of the Bonds) now estimated to be not more than $17,500,000. The obligation of the Corporation to issue the Bonds is specifically subject to the ability of the Corpora- tion to issue sucli Bonds in compliance with the "Volume Capn provisions of Section 103(n) of the Internal Revenue Code of 1954, as amended (the "Coden), "Limitation on Aggregate Amount of Private Activity Bonds Issued During Any Calendar Years, II and to any applicable rules or regulations of the Texas Economic Development Commission relating thereto. Any officer or other member of the Board of Directors of the Corporation is hereby authorized to take any action and file any notifi- cation required to reserve for the Bonds a portion of the state alloca- tion for "private activity bonds,n as defined in the Deficit Reduction Act of 1984. The obligation of the Corporation to issue the Bonds in an amount sufficient to finance the facilities numbered A-43 and W-167 on Exhibit nAn is specifically subject to the approval of such issuance by the City of La Porte, Texas. Section 2: The Company may commence with the acquisition, con- struction and improvement of the Pollution Control Facilities, which Pollution Control Facilities will be in furtherance of the public purposes of the Corporation and the Unit as aforesaid, and the Company will provide, or cause to be provided, at its expense, the necessary interim financing to expedite the commencement and continuation of the acquisition, construction and improvement of the Pollution Control Facilities. On or prior to the issuance of the Bonds, the Company will enter into a purchase, lease or loan agreement on an installment payment basis (herein called the nAgreement") with the Corporation under which . the Corporation will sell or lease the Pollution Control Facilities to the Company or make a loan to the Company for the purpose of providing temporary or permanent financing of all or part of the costs of the Pollution Control Facilities and the Company will make installment payments sufficient to pay the principal of and any premium and interest on such series of Bonds. The Bonds shall never constitute an indebted- ness or pledge of the faith and credit of the State of Texas (the nState"), of the Unit or of any other political corporation, subdivision or agency of the State within the meaning of any State constitutional or statutory provision, and the Bonds shall never be paid in whole or in part out of any funds raised or to be raised by taxation or any other funds of the Unit, and shall be payable from the funds of the Corpo- ration derived from or in connection with the sale or lease of the Pollution Control Facilities or the loan of the proceeds of the Bonds. Section 3: On receipt of a ruling from the Internal Revenue Service (or the opinion of nationally recognized bond counsel) that interest paid on the Bonds is exempt from federal income taxation, the Corporation hereby agrees to issue, pursuant to the terms of the Act, B-2