2002-07-22 Regular Meeting and Workshop Meeting

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e e Section 8. INVESTMENTS AND SECURITY. (a) Investment of Funds. The City may place money in any fund created by this Ordinance in time or demand deposits or invest such money as authorized by law and the City's investment policies 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. (b) Amounts Received from Investments. Except as otherwise provided by law, amounts received from the investment of the Construction Fund may be retained in such fund or deposited to the Interest and Sinking Fund as determined by the City Council. Any amounts received from the investment of the Interest and Sinking Fund shall be deposited in the Interest and Sinking Fund. (c) Security for Funds. All funds created by this Ordinance shall be secured in the manner and to the fullest extent required by law for the security offunds of the City. (d) RemainingFunds. Any money remaining after the purposes for which the Bonds have been accomplished shall be deposited in the Interest and Sinking Fund and the Construction Fund shall be closed. Section 9. REMEDIES OF OWNERS. In addition to all rights and remedies of any Owner of the Bonds provided by the laws of the State of Texas, the City and the Council covenant and agree that in the event the City det~lUlts in the payment of the principal of or interest on any of the Bonds when due, fails to make the payments required by this Ordinance to be made into the Interest and Sinking Fund, or defuults in the observance or pertornlance of any of the covenants, conditions, or obligations set forth in this Ordinance, the owner of any of the Bonds shall be entitled to a writ of mandamus issued by a court of proper jurisdiction compelling and requiring the Council and other ofii.cers of the City to observe and pertonn any covenant, obli~ation, or condition prescribed in this Ordinance. No delay or omission by any owner to exercise any right or power accruing to such owner upon default shall inlpair any such right or power, or shall be construed to be a waiver of any such default or acquiescence therein, and every such right or power may be exercised from time to time and as often as may be deemed expedient. The specific remedies mentioned in this Ordinance shall be available to any owner of any of the Bonds and shall be cmnulative of all other existing remedies. Section 10. DEFEASANCE OF BONDS. (a) Any Bond and the interest thereon shall be deemed to be paid, retired, and no longer outstanding (a "Defeased Bond") within the meaning of this Ordinance, except to the extent l'rovided in subsection (c) of this Section, when payment of the principal of such Bond, plus interest thereon to the due date (whether such due date be by reason ofmahrrity, upon redemption, or otherwise) either (i) shall have been made or caused to be made in accordance with the terms thereof (including the giving of any required notice of redemption) or (ii) shall have been provided for on or before such due date by irrevocably depositing with or making available to the Parin~ Agent/Re~istrar tor such payment (A) lawful money of the United States of America sufficient to make such payment or (B) Government Obligations (hereinafter defined) which mature as to principal and interest in such amounts and at such times as will insure the availability, without reinvestment, of sufficient money to provide tor such payment, and when proper arrangements have been made by the City with the Paying A~entJRegistrar for the payment of its services until all Defeased Bonds shall have become due and payable. At such time as a Bond shall be deemed to be a Deteased Bond hereunder, as atoresaid, such Bond and the interest thereon shall no longer be secured by, payable from, or entitled to the benefits 04 the ad valorem taxes herein levied and pledged as provided in this Ordinance, and such principal and interest shall be payable solely from such money or Government Obligations. (b) Any lllQney ~o depo~ited with th~ Paying AgentJRegistrar lllay at the written direction of the City also be invested in Government Obligations, maturing in the amounts and times as hereinbefore set forth, and all income frQm ~uch Goyequnent Obligations received by the Paying AgentJRegistrar which is not required for the payment of the Bonds and interest thereon, with respect to which such money has been so deposited, shall be turned over to the City, or deposited as direcied in writing by the City. (c) The ternl "Government Obligations" as used in this Section, shall mean direct obligations of the United States of America, including obligations the principal of and interest on which are unconditionally guaranteed by the 06~9~9.0001 AUSTIN 280348 10