O-2005-2858 - Laserfiche WebLink

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sufficient to pay the interest on the Obligations and to create and provide a sinking fund of not less than 2% of the principal amount of the Obligations or not less than the principal payable out of such tax, whichever is greater, with full allowance being made for tax delinquencies and the costs of tax collection, and such taxes, when collected, shall be applied to the payment of principal of and interest on the Obligations by deposit to the Debt Service Fund and to no other purpose. (b) The City hereby declares its purpose and intent to provide and levy a tax legally sufficient to pay the principal of and interest on the Obligations, it having been determined that the existing and available taxing authority of the City for such purpose is adequate to permit a legally sufficient tax. As long as any Obligations remain outstanding, all moneys on deposit in, or credited to, the Debt Service Fund shall be secured by a pledge of security, as provided by law for cities in the State of Texas. Section 5.2: Debt Service Fund. (a) The Public Property Finance Contractual Obligations, Series 2006 Debt Service Fund (the "Debt Service Fund") is hereby created as a special fund solely for the benefit of the Obligations. The City shall establish and maintain such fund at an official City depository and shall keep such fund separate and apart from all other funds and accounts ofthe City. Any amount on deposit in the Debt Service Fund shall be maintained by the City in trust for the Registered Owners of the Obligations. Such amount, plus any other amounts deposited by the City into such fund and any and all investment earnings on amounts on deposit in such fund, shall be used only to pay the principal of, premium, if any, and interest on the Obligations. (b) The City agrees that, so long as the Purchaser is the Registered Owner of the Obligations, principal and interest payments due on the Obligations shall be deducted automatically on each Interest Payment Date from the Debt Service Fund held in a checking account of the City held by the Purchaser or another financial institution (the "Checking Account"). All payments pursuant to this paragraph shall be made without condition or deduction for any counterclaim, defense, recoupment or setoff. The Purchaser shall debit the Checking Account on each Interest Payment (or such later date in accordance with Section 9.3 hereof) in the amount of all interest and principal, if any, due on such date. The City shall maintain sufficient funds in the Checking Account on such dates. If there shall be insufficient funds in the Checking Account on any such date, the Purchaser may, without limiting any other remedies it may have under this Ordinance, reverse the debit. Section 5.3: Construction Fund. The Public Property Finance Contractual Obligations, Series 2006 Construction Fund (the "Construction Fund") is hereby created as a special fund of the City. Money on deposit in the Construction Fund shall be used only for the purposes set forth in Section 3.1 of this Ordinance. Money on deposit in the Construction Fund may, at the option of. the City, be invested as permitted by Texas law, provided that all such deposits and investments shall be made in such manner that the money required to be expended from the Construction Fund will be available at the proper time or times. Section 5.4: Further Proceedings. After the Obligations to be initially issued have been executed, it shall be the duty of the Mayor to deliver the Obligations to be initially issued and all 10 HOU:2516661.4