O-1989-1652 - Laserfiche WebLink

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e e than the amount required to pay the principal payable out of said tax, whichever is greater, full allowance being made for delinquencies and costs of collection, and said taxes, when collected shall be applied to the principal of and interest on the Bonds and for no other purpose. section 9. INTEREST AND SINKING FUND. For the purpose of paying the principal of and interest on the Bonds, as the same come due, there is hereby created and established on the books of the City a separate fund entitled the "City of La Porte, Texas, General Obligation Bonds, Series 1989 Interest and sinking Fund" (the "Interest and sinking Fund"), and all taxes levied and collected pursuant to section 8 hereof shall be deposited as collected into the Interest and sinking Fund. section 10. INVESTMENTS AND SECURITY. The City Council 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 Bonds will be used as soon as practicable for the purposes for which the Bonds are issued. obligations purchased as an investment of money in a fund shall be deemed to be a part of such fund. Except as otherwise provided by law and Section 17 hereof, amounts received from the investment of any money in any fund created by this Ordinance may be placed into any fund of the City as determined by the city Council. All funds created by this Ordinance shall be secured in the manner and to the fullest extent required by law for the security of funds of the city. Section 11. DESIGNATION AS QUALIFIED TAX-EXEMPT BONDS. The City hereby designates the Bonds as "qualified tax-exempt bonds" as defined in section 265(b) (3) of the Internal Revenue Code of 1986, as amended (the "Code"). In furtherance of such designation, the city represents, covenants, and warrants the following: (a) during the calendar year in which the Bonds are issued, the City (including any subordinate entities)' has not designated nor will designate bonds, which when aggregated with the Bonds, will result in more than $10,000,000 of "qualified tax-exempt bonds" being issued:' (b) the city reasonably anticipates that the amount of tax-exempt obligations issued during the calendar year in which the Bonds are issued by the city (or any subordinate entities) will not exceed $10,000,000: and (c) the city will take such action or refrain from such action as necessary in order that the Bonds will not be con- sidered "private activity bonds" within the meaning of section 141 of the Code. section 12. AMENDMENT OF ORDINANCE. (a) The holders of the Bonds aggregating in principal amount 51% of the aggregate principal amount of then outstanding Bonds shall have the right from time to time to approve any amendment to this Ordinance which may be deemed necessary or desirable by ~he city; provided, however, that without the consent of the holders of all of the 15