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<br />e <br /> <br />e <br /> <br />the option of the Issuer, <br />under this Ordinance, but <br />solely for the convenience <br />Bonds. <br /> <br />be printed on the Bonds issued and delivered <br />neither shall have any legal effect, and shall be <br />and information of the registered owners of the <br /> <br />SECTION 12. COVENANTS OF THE ISSUER. (a) General <br />Covenants. The Issuer covenants and represents that: <br /> <br />(i) The Issuer is a duly incorporated Home Rule City, <br />having more than 5000 inhabitants, operating and existing under <br />the Constitution and laws of the State of Texas, and is duly <br />authorized under the laws of the State of Texas to create and <br />issue the Bonds; all action on its part for the creation and <br />issuance of the Bonds has been duly and effectively taken; and <br />the Bonds in the hands of the Owners thereof are and will be <br />valid and enforceable obligations of the Issuer' in accordance with <br />their terms; and <br /> <br />(ii) The Bonds shall be ratably secured in such manner <br />that no one Bond shall have preference over other Bonds. <br /> <br />(b) Specific Covenants. The Issuer covenants and represents <br />that, while the Bonds are outstanding and unpaid, it will: <br /> <br />(i) Levy an ad valorem tax that will be sufficient to <br />provide funds to pay the current interest on, the Bonds and to <br />provide the necessary sinking fund, all as described in this <br />Ordinance; and ' <br /> <br />(ii) Keep proper books of record and account in which <br />full, true, and correct entries will be made of all dealings, <br />activities, and transactions relating to the Funds created <br />pursuant to this Ordinance, and all books, documents, and <br />vouchers relating thereto shall at all reasonable times be made <br />available for inspection upon request from any Owner. <br /> <br />(c) Covenants Regarding Tax Exemption of Interest on the <br />Bonds. The Issuer covenants to take any action to maintain, or refrain <br />from any action which would adversely affect, the treatment of the Bonds as <br />obligations described in section 103 of the Code, the interest on which is <br />not includable in the "gross income" of the holder for purposes of federal <br />income taxation. In furtherance thereof, the Issuer specifically covenants as <br />follows: <br /> <br />(i) To take any action to assure that no more than 10% of <br />the proceeds of the Bonds (less amounts deposited to a reserve <br />fund, if any) are used for any "private business use," as <br />defined in section 141 (b)( 6) of the Code or, if more than 10% of <br />the proceeds are so used, that amounts, whether or not received <br />by the Issuer with respect to such private business use, do not <br />under the terms of this Ordinance or any underlying <br />arrangement, directly or indirectly, secure or provide for the <br /> <br />17 <br />