O-1979-768-B - Laserfiche WebLink

Browse Search

e e I District's tax may be wholly abated, until further experience may demonstrate the necessity again to invoke the District's taxing power in order to avoid default in the payment of the District's obligations, both principal and interest, as the same may mature. (c) The Net Revenues are hereby irrevocably pledged to the payment of the Bonds, subject to the terms and provisions hereof. The revenues hereby pledged shall immediately be subject to the lien of this pledge without any physical delivery thereof or further act, and the lien of this pledge shall be valid and binding as against all parties of any kind having a claim of any kind in tort, contract, .or otherwise against the District, irrespective of whether such parties have notice thereof. (d) In the event that any city or town annexes all of the territory embraced by the District, takes over the properties and assets of the District and assumes all debts, liabilities and obligations of the District, the foregoing pledge of Net Revenues to the payment of the Bonds shall terminate at such time as such city or town assumes the debts, liabilities and obligations of the District. (e) The obligation of the District to levy a tax without limit as to rate and amount on taxable property within the District shall terminate when and if any city or town annexes the District, takes over the properties of the District and assumes the debts, liabilities and other obligations of the District, and the annexing city or town shall only be required to provide for the payment of principal and interest on the Bonds in the manner now or hereafter required by law. Nothing contained herein shall impair the rights of the holders of the Bonds to full payment of principal I I . -9-